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Attachment 1CALIFORNIA T ĔĜē Ĕċ L ĔĘ G ĆęĔĘ Operating & Capital Summary Budget Fiscal Year 2017/18 ATTACHMENT 1 Cover Photos: Ravon TOWN OF LOS GATOS CALIFORNIA Proposed Operating and Capital Summary Budget for Fiscal Year July 1, 2017 to June 30, 2018 Town Council Marico Sayoc ............................................................... Mayor Rob Rennie ........................................................... Vice Mayor Marcia Jensen .............................................. Council Member Steve Leonardis............................................ Council Member Barbara Spector ........................................... Council Member Prepared under the direction of: Laurel Prevetti ........................................................................................................... Town Manager Stephen D. Conway ................................................................................................. Finance Director 110 E. Main Street, Los Gatos, CA 95030 www.losgatosca.gov TOWN VISION STATEMENT The Town of Los Gatos’ Vision Statement describes the community at its full potential, and is the basis for the Five-Year Strategic Plan and accompanying priorities and goals. This Vision Statement articulates the future for Los Gatos and reflects the high ideals identified by the community: Residents are united in their desire to maintain a high quality of life and preserve the character of the Town. The overall community consensus is that Los Gatos be a full-service community that is also environmentally sensitive; that Los Gatos maintains a balanced, well-designed mix of residential, commercial, service and open space uses, fostering a pedestrian-oriented community with a small town, village-like character; that Los Gatos supports an active business community that provides a wide variety of goods and services and a broad range of employment opportunities, eliminating the need to travel to other communities; and that Los Gatos provides a well-run, efficient municipal government that is fiscally healthy, with high levels of public safety, recreational, art and cultural amenities and is committed to high quality education. i TOWN OF LOS GATOS OPERATING AND CAPITAL SUMMARY BUDGET FISCAL YEAR 2017/18 Table of Contents \ INTRODUCTION Town Manager’s Budget Message .................................................................................................................. A - 1 Budget Award ................................................................................................................................................. A - 13 Core Goals and Strategic Priorities ............................................................................................................... A - 14 Fund Descriptions ........................................................................................................................................... A - 15 Financial Policies ............................................................................................................................................. A - 17 Long-Term Debt Policies ................................................................................................................................. A - 20 Investment Policy ........................................................................................................................................... A - 21 Budget Process Overview ............................................................................................................................... A - 28 Budget Calendar ............................................................................................................................................. A - 30 Gann Appropriation Limit ............................................................................................................................... A - 32 Resolution Adopting the Gann Appropriation Limit ....................................................................................... A - 34 Resolution Adopting the Town’s Annual Budget ........................................................................................... A - 35 TOWN PROFILE History and Culture of Los Gatos ..................................................................................................................... B - 1 Town Statistics ................................................................................................................................................. B - 6 Town Management ......................................................................................................................................... B - 12 Town Organizational Chart .............................................................................................................................. B - 13 Town Commissions, Committees, and Advisory Boards ................................................................................. B - 14 FINANCIAL SUMMARIES Total Revenues and Expenditures Total Budgeted Fund Activity Summary .......................................................................................................... C - 3 Total Revenue, Expenditure, and Fund Balance Trend Information ............................................................... C - 4 Total Revenue, Expenditure, and Fund Balance – 5-Year Summary ............................................................... C - 6 Total Town Revenue Summary – by Fund ....................................................................................................... C - 10 Total Town Expenditure Summary – by Fund ................................................................................................. C - 12 Total Town Revenue Summary – by Category ................................................................................................. C - 14 Total Town Expenditure Summary – by Category ........................................................................................... C - 15 General Fund Revenues and Expenditures 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 – Santa Clara County Cities Per Capita .............................................................. C – 21 General Fund Tax Revenues – 10 Year History ................................................................................................ C - 22 General Fund – Fund Balance Activity ............................................................................................................. C - 23 ii TOWN OF LOS GATOS OPERATING AND CAPITAL SUMMARY BUDGET FISCAL YEAR 2017/18 Table of Contents page 2 Operating Transfers Schedule of Interfund Transfers ...................................................................................................................... C - 24 Fund Balance Fund Balance Activity Summary - by Fund ...................................................................................................... C - 25 Fund Balance - 5 Year Comparative Balances ................................................................................................. C - 27 Departmental Budgets Department Revenues – by Program ............................................................................................................. C – 29 Department Expenditures – by Program ........................................................................................................ C - 31 In Kind Donations In Kind Donations ........................................................................................................................................... C – 33 Fee Related Project List .................................................................................................................................. C - 34 Staffing 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 DEPARTMENTAL BUDGETS Departmental Budget Listing ........................................................................................................................... D - 1 TOWN OFFICES Town Offices Overview .................................................................................................................................... D - 3 Town Council Administration .......................................................................................................................... D - 7 Town Attorney Administration ....................................................................................................................... D - 11 Internal Service Fund Liability Self Insurance Fund ........................................................................................................................... D - 17 iii TOWN OF LOS GATOS OPERATING AND CAPITAL SUMMARY BUDGET FISCAL YEAR 2017/18 Table of Contents page 3 ADMINISTRATIVE SERVICES Administrative Services Overview ................................................................................................................. D - 21 Town Manager’s Office Administration ........................................................................................................ D - 27 Human Resources .......................................................................................................................................... D - 39 Finance .......................................................................................................................................................... D - 45 Clerk Administration ...................................................................................................................................... D - 53 Non-Departmental ........................................................................................................................................ D - 59 Internal Service Funds Information Technology ................................................................................................................................ D - 65 Workers’ Compensation Fund ....................................................................................................................... D - 71 Office Stores Fund ......................................................................................................................................... D - 75 COMMUNITY DEVELOPMENT DEPARTMENT Community Development Department Overview .........................................................................................D - 77 Community Development Administration ....................................................................................................D - 83 Development Review ....................................................................................................................................D - 87 Advanced Planning ........................................................................................................................................D - 93 Building & Inspection Services ......................................................................................................................D - 97 Code Compliance Program ............................................................................................................................ D 103 BMP Housing Program ................................................................................................................................. D - 107 Pass-Through Accounts ............................................................................................................................... D - 111 POLICE DEPARTMENT Police Department Overview ....................................................................................................................... D - 113 Police Administration ................................................................................................................................... D - 125 Records and Communications ...................................................................................................................... D - 131 Personnel and Community Services ............................................................................................................. D - 137 Patrol ............................................................................................................................................................ D - 143 Traffic ............................................................................................................................................................ D - 151 Investigations .............................................................................................................................................. D - 157 Parking Management .................................................................................................................................. D - 163 Pass-Through Accounts ............................................................................................................................... D - 169 Special Revenue Funds Operating Grants .......................................................................................................................................... D - 171 iv TOWN OF LOS GATOS OPERATING AND CAPITAL SUMMARY BUDGET FISCAL YEAR 2017/18 Table of Contents page 4 PARKS & PUBLIC WORKS DEPARTMENT Parks & Public Works Department Overview ............................................................................................... D – 175 Parks & Public Works Administration ........................................................................................................... D – 183 Engineering Program Services ...................................................................................................................... D – 187 Engineering Development Services .............................................................................................................. D – 193 Park Services ................................................................................................................................................ D – 197 Environmental Services ................................................................................................................................ D – 203 Streets and Signals........................................................................................................................................ D – 209 Property Damage .......................................................................................................................................... D – 217 Pass-Through Accounts ................................................................................................................................. D – 219 Internal Service Funds Equipment Replacement Fund ..................................................................................................................... D – 221 Vehicle Maintenance Program ..................................................................................................................... D – 225 Facilities Maintenance Program ................................................................................................................... D – 231 Special Revenue Funds Non-Point Source Program ........................................................................................................................... D – 237 Assessment Districts ..................................................................................................................................... D – 243 LIBRARY DEPARTMENT Library Department Overview ...................................................................................................................... D - 257 Library Administration .................................................................................................................................. D - 263 Adult Services ............................................................................................................................................... D - 269 Youth Services .............................................................................................................................................. D - 275 Acquisitions & Cataloging ............................................................................................................................. D - 283 Circulation / System Administration ............................................................................................................ D - 287 Trust and Agency Funds Library Trust Fund......................................................................................................................................... D - 291 Clelles Ness Trust Fund ................................................................................................................................. D - 293 Susan McClendon Trust Fund ....................................................................................................................... D - 295 Barbara Jones Cassin Trust Fund .................................................................................................................. D - 297 v TOWN OF LOS GATOS OPERATING AND CAPITAL SUMMARY BUDGET FISCAL YEAR 2017/18 Table of Contents page 5 CAPITAL IMPROVEMENT PROGRAM Capital Improvement Program Overview ........................................................................................................ E - 1 General Fund Appropriated Reserve ............................................................................................................... E - 9 Traffic Mitigation Fund .................................................................................................................................... E - 15 Grants and Awards Project Fund ..................................................................................................................... E - 19 Storm Drain Funds .......................................................................................................................................... E - 23 Utility Underground......................................................................................................................................... E - 29 Gas Tax Fund ................................................................................................................................................... E - 33 SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY Successor Agency to the Los Gatos RDA Overview ......................................................................................... F - 1 SA - Administration Fund ................................................................................................................................. F - 5 SA - Debt Service Program ............................................................................................................................... F - 7 2002 COP Debt Schedule ............................................................................................................................. F - 8 2010 COP Debt Schedule ............................................................................................................................. F - 10 Computation of Legal Debt Margin ............................................................................................................. F - 11 REFERENCE MATERIALS List of Funds .................................................................................................................................................... G - 1 List of Programs .............................................................................................................................................. G - 2 Glossary .......................................................................................................................................................... G - 7 List of Acronyms ............................................................................................................................................. G - 17 Index ............................................................................................................................................................... G - 19 Fund Descriptions ............................................................................................................................................ G – 1 List of Funds ...................................................................................................................................................... G – 4 List of Programs vi A - 1 TOWN OF LOS GATOS CIVIC CENTER 110 E. MAIN STREET LOS GATOS, CA 95030 May 5, 2017 Honorable Mayor and Town Council: I am pleased to present to you a balanced Fiscal Year (FY) 2017/18 Proposed Operating Budget for the Town of Los Gatos. The budget for FY 2017/18 reflects a total Town budget of $57.7 million, a decrease of $15.0 million or 21% when compared to the FY 2016/17 Adopted Budget. The Town’s proposed total General Fund expenditures are $42.2 million, a decrease of $4.7 million or 10% when compared to the FY 2016/17 Adopted Budget. This decrease is the result of a significantly smaller apportionment of General Fund capital transfers to other funds for capital projects. The General Fund revenues are budgeted at $36.8 million (excluding debt payments and fund transfers in), a 3.6% increase over FY 2016/17 budgeted revenues. FY 2017/18 FISCAL OUTLOOK Overview The workload and budgetary prioritization process took into account the Town’s current and long term fiscal picture, as well as high priority service delivery needs. Key principles include:  Develop and recommend a balanced budget that maintains service levels;  Continue to make progress on Strategic Priorities identified by the Town Council; and  Identify opportunities to enhance service delivery through technology and open government. As shown in the chart below, the Proposed Budget is largely funded by the General Fund (73.2%). A - 2 STRATEGIC GOALS AND PRIORITIES In January 2017, the Town Council determined the Strategic Priorities for 2017-2019, providing guidance to Town staff on workload prioritization. The Town Council reaffirmed its Core Goals, including: Community Character, Good Governance, Fiscal Stability, Quality Public Infrastructure, Civic Enrichment, and Public Safety (see page A-14). As part of this process, the Council identified the use of $2.6 million of FY 2015/16 savings (General Fund Strategy Reserve) for capital project priorities, operating needs, and to address unfunded liabilities. In terms of capital projects, the Town Council affirmed its interest in completing the Phase II of the Almond Grove streets, investing in bicycle and pedestrian improvements, addressing cut-through traffic, and improving the condition of the Town’s streets. In addition, the Council identified new projects for public art, Forbes Mill Footbridge lighting, and trash capture devices to comply with pollution prevention requirements. In terms of operating needs, the Council identified legal mandates, increased tree services, and a new Traffic and Transportation Mobility Manager. For unfunded liabilities, the Council expressed interest in setting aside up to $2 million for future action based on the recommendations of the Council Finance Committee. Some of these priorities were acted upon during FY 2016/17 and the remaining items are included in the Proposed Operating and Capital Budget and Proposed Capital Improvement Program. A significant amount of the funding for the Almond Grove Street Rehabilitation project was created from reserves, other capital projects, and year end savings in FY 2015/16. Due to the favorable construction bid for the remaining eight streets, the project has $2.9 million excess funds. Staff recommends combining the excess balance ($2.9 million) with the Strategy Reserve ($2.6 million) to replenish or add to some of the reserves ($3 million), and meet Town’s other capital ($1.9 million) and operating needs ($0.66 million) as shown in the table below. General Fund Use - One Time 446,595$ Traffic & Mobility Manager 217,808 Capital Projects 1,864,419 Budget Stabilization & Catastrophic Reserve 663,882 CalPERS/OPEB Reserve 1,000,000 General Fund Capital Reserve 703,496 Facilities Fund 300,000 Equipment Replacement Fund 300,000 Total Use 5,496,200$ Proposed Use of Funds Specifically, the General Fund one-time use includes the legal mandates and increased tree services. A capital projects amount of $1,864,419 would be transferred to the General Fund Appropriated Reserves (GFAR) to provide funding for the aforementioned capital projects identified by the Town Council as well as additional capital needs. For Council’s consideration, staff is recommending the following allocations: • Transferring $663,419 to the Budget Stabilization and Catastrophic Reserves to maintain the required 25% funding level of the proposed operating budget. • Putting an additional $1,000,000 to the CalPERS/OPEB Reserve given that addressing unfunded liabilities is a high priority of the Town Council. • Replenishing the Equipment Replacement and the Facilities Maintenance Funds by transferring $300,000 to each. A - 3 • Placing the remaining balance of $703,409 to the General Fund Capital Reserve to provide funding for future capital needs, such as satisfying any required fund matching requirements for the Town’s VTA Measure B projects. General Fund The General Fund pays for core services such as public safety, community development, parks and public works, library, and other services. The revenue used to pay for these services comes primarily from local taxes such as property tax, sales tax, transient occupancy tax, franchise fees, licenses and permits, Town services, fines and forfeitures, and a variety of other sources. As illustrated in the chart below, the majority of General Fund revenue supports the services provided by Police, Parks and Public Works, Community Development, and Library. General Fund revenue is estimated at $36.8 million in the FY 2017/18 Proposed Budget, excluding debt service and fund transfers in). This is an increase of $1.3 million (3.6%) when compared to the FY 2016/17 Adopted Budget. While increased Property Tax accounts for the majority of the increase in revenue, Vehicle License Fee (VLF) backfill property tax, Transient Occupancy Tax, and Business License Tax have also increased. Sales Tax revenue is projected to decrease over the prior year. The Town’s General Fund operating budget expenditures for FY 2017/18 have increased by $2.7 million or 7.6% compared to the prior year’s Adopted Budget (excluding fund transfers and debt service). These expenditures are comprised of six major categories of costs, including salaries and benefits, grants and awards, internal service charges, operating expenses for supplies and services, and debt service. The delivery of Town services is highly dependent on labor, which makes up 60.3% of budgeted General Fund expenditures for FY 2017/18. The FY2016/17 adopted budget did not include any increases in salaries since none of the negotiations were completed at the time of budget adoption. Internal Service Funds Internal Service Funds are used for areas where goods or services are provided to other Town Departments. Internal Service Funds include funds and programs for Information Technology, Liability A - 4 Insurance, Workers Compensation, Facilities Maintenance, Equipment Replacement and Vehicle Maintenance. Staff recommends transferring $300,000 to the Equipment Replacement fund to gradually replenish the funding previously transferred to the General Fund Almond Grove Reserve. In addition staff recommends a transfer of $300,000 to the Facilities Maintenance Fund to build back the fund balance that was previously used to improve the portion of Town Hall that housed the former Library. The total Town-wide proposed expenditures for Internal Service charges are $6.3 million, which is $434,128 or 7.4% higher than budgeted FY 2016/17 amounts due primarily to the purchase of several pieces of replacement equipment and the negotiated salary increases. Capital Projects Fund The Capital Improvement Projects Fund is typically used to account for financial resources that are used for the acquisition or construction of major capital infrastructure or to provide or improve facilities for Town Departments as identified in the five-year Capital Improvement Program (CIP). The proposed FY 2017/18 Town-wide expenditures from the Capital Projects Funds is $4.0 million (excluding transfers out) which is inclusive of $2.5 million in General Fund Appropriated Reserves for the Town’s CIP program. Special Revenue Funds Special Revenue Funds are a fund type used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Special Revenue Funds account for 1.2% of the Town-wide expenditure budget. The Town’s largest Special Revenue Fund is the Urban Run-Off Source Fund at approximately $564,910. The Total proposed Budget for Special Revenue Funds for FY 2017/18 is $674,956. Trust and Agency Funds Trust and Agency funds are used to account for assets held by the Town as a trustee agent for individuals, private organizations, and other governments. The Town’s Trust and Agency Funds are a comprised of four trusts established to provide for the servicing of donations and bequests to the Town’s Library program. The FY 2017/18 budgeted expenditures in this trust fund total $72,500. Successor Agency to the Los Gatos RDA Funds The Successor Agency to the Los Gatos Redevelopment Agency (RDA) is a private purpose trust fund that accounts for the assets, liabilities, and operations transferred from the dissolution of the Town’s RDA. These funds include Certificates of Participation issued to finance several capital improvement projects throughout the Town and repayment of obligations incurred by the Town’s RDA prior to its dissolution. The FY 2017/18 budgeted expenditures in this trust fund total $3.9 million. GENERAL FUND RESERVES The total General Fund Reserves are forecasted at a balance of approximately $21.5 million as of June 30, 2018. As indicated in the next chart, the General Fund reserves are decreasing as is to be expected due to the Town’s California Public Employees Retirement System (CalPERS) side-fund payoff in June 2014 of $4.5 million dollars and the transfers to the CIP program in FY 2016/17 ($7.0 million) and FY 2017/18 ($2.4 million). A - 5 6/30/2013 Actual 6/30/2014 Actual 6/30/2015 Actual 6/30/2016 Actual 6/30/2017 Estimated 6/30/2018 Proposed Commited to: Budget Stabilization Reserve 5,450,000$ 5,450,000$ 5,450,000$ 6,621,808$ 4,637,406$ 4,969,847$ Catastrophic Reserves 5,450,000 5,450,000 5,450,000 4,637,406 4,637,406 4,969,847 CalPERS/OPEB Reserve - - - 300,000 1,284,402 2,284,402 Almond Grove Reserve - - - 8,459,973 2,896,200 - Assigned to: Open Space Reserve 562,000 562,000 562,000 562,000 562,000 562,000 Sustainability 140,553 140,553 140,553 Strategy Reserve 2,600,000 2,600,000 600,000 Capital / Special Projects 12,427,161 10,218,579 9,511,527 4,222,405 2,822,405 3,125,901 Special Studies 490,000 490,000 490,000 - - - Post Retirement Medical 400,000 - 400,000 - - - Vasona Land Sale 410,599 411,245 - - - - Other 787,294 297,294 339,837 99,284 4,847,721 4,876,845 Total General Fund Reserve 25,977,054$ 22,879,118$ 22,203,364$ 27,643,429$ 24,428,093$ 21,529,395$ General Fund Reserve Catastrophic and Budget Stabilization Reserves As per the Town’s Reserve Policy, the Catastrophic and Budget Stabilization Reserves are to be maintained at combined minimum funding level of 25% of General Fund ongoing operating expenditures. The funding requirement is equally divided between the Catastrophic Reserve (12.5%) and the Budget Stabilization Reserve (12.5%). Fund balance in these reserves is used to fund future fluctuations in the economy, mitigating the cyclical changes in locally generated revenues from temporary downturns in the local economy. Staff recommends transferring $664,882 from available prior year-end saving to meet the required 25% funding level, or $9.9 million total for FY 2017/18. CalPERS/OPEB Reserve Committed fund balance in this reserve will be used to aid in funding pension and Other Post- Employment Benefits (OPEB) unfunded liabilities. With Council direction, upon the close of the fiscal year, the CalPERS/OPEB Reserve receives $300,000 of the available year-end savings. Staff recommends an additional $1,000,000 for this Reserve. The Council Finance Committee would make recommendation(s) for the use of these funds for future Town Council consideration. A - 6 Almond Grove Reserve A reserve for Almond Grove Street Rehabilitation project was established in October 2015 to provide funding for the ten streets identified in the project. The Town Council affirmed its interest in completing the Phase II of the Almond Grove streets. Due to a favorable construction bid to complete the project, there are $2.9 million in excess funds. As discussed earlier, staff has provided recommendations for the Council’s consideration for the use of the excess combined with the Strategy Reserve, based on identified Town Council strategic priorities and other funding needs. Strategy Reserve In early 2017, the Town Council established a General Fund Strategy Reserve in the amount of $2.6 million from available FY 2015/16 operational savings. Capital / Special Projects With Council direction, upon the close of the fiscal year, the Capital Projects Reserve receives the Town's annual revenues above operating expenditures after funding all legally restricted reserves at their required levels. Fund balance is assigned for the acquisition and construction of capital facilities. Other The Town has several other smaller reserves that have been classified as other. These reserves include an open space reserve which may be used to make selective open space acquisitions and a sustainability reserve which will be used to fund projects that enhance the community environment. KEY BUDGET ASSUMPTIONS Revenues The FY 2017/18 Budget assumes healthy economic growth, with the General Fund revenues (excluding debt payments and fund transfers in) expecting to increase by 3.6% to $36.8 million. Revenue projections for each category were based upon estimates provided to the Town by Santa Clara County, the Town’s sales tax consultant, and careful examination of revenue trends and patterns. The economy remains positive which has resulted in staff proposing an increase in operating revenues of $0.5 million. This is mostly due to forecasted increases in revenues such as Property Tax, Transient Occupancy Tax and Business License Tax. Sales Tax revenue is projected to decrease slightly from the prior year. Staffing The FY 2017/18 Operating Budget has 160.42 budgeted FTEs, including temporary staff. This reflects an increase of 2.32 FTE compared to the prior year. The recommended FY 2017/18 staffing levels reflect the following changes from the FY 2016/17 Adopted Budget:  Administrative Services and Town Offices –The FY 2017/18 budget reflects a deletion of the Assistant to the Town Manager position and a 1.0 FTE addition of an Administrative Analyst position. In addition, a 0.63 FTE Administrative Analyst has been changed and funded to Economic Vitality Manager and increased to 0.75 FTE. The Economic Vitality Manager position is also funded partially through the Community Development Department. In addition, the budget shows one-time funding of a 0.5 FTE Human Resources Analyst position dedicated to complete special projects within the program. The FY 2017/18 budget also reflects the reclassification of the Account Technician position to an Administrative Analyst position in the Finance Department. This change reflects increased duties, such as additional support for budget services, cross training in confidential finance functions, and daily departmental duties. The budget also reflects Council action in April 2017 to add the new job classification of Events and Marketing Specialist. This 0.5 FTE benefited position is responsible for organizing, promoting, A - 7 and implementing all Town events (e.g., Spring Into Green and Fourth of July), as well as processing the applications for Special Event Permits in coordination with Town Departments.  Police –While historically the 1.0 FTE Community Outreach Coordinator has been funded in the Town’s Non-Departmental program, the work occurs in the Police Department; therefore with this budget, the funds are being transferred to the Personnel and Community Service program. To best meet the needs of the Department, the FY 2017/18 budget includes one operational reclassification. The 1.0 FTE Community Service Officer assigned to Personnel and Community Services is now reclassified to a 1.0 FTE Human Resources Specialist. The Human Resources Specialist position supports the Police Department with the recruitment of new personnel, continued education and training of personnel, and succession planning. Temporary staff funding is proposed for: technology support, evidence, records management, and Parking Control Officers. The temporary hours increase is funded from one-time funding. An additional $32,416 in temporary staffing hours is proposed as one-time support for an IT Technician to assist with critical operational technology needs and the regional radio project including interoperability upgrades. An additional $47,905 in temporary staffing hours is proposed for a Community Services Officer (CSO) as a one-time support to assist the Evidence and Property Division. This Division has seen an increase in the intake and discovery records requests over the past year and intensive staff research and documentation accompany these requests. An additional $41,670 in temporary staffing hours is proposed for a Records Specialist as a one-time support to assist with the increased number of reported and processed cases. This increase is partially due to recent changes in legislation; additionally, the Records Division has seen an increase in public counter activity. An additional $12,775 in temporary staffing hours is proposed as a one-time support to assist in the use of Parking Control Officer (PCO) during peak times. The part-time Community Services Officer (CSO) position will continue for one more year in FY 2017/18 with one-time additional funding. The position is allocated between Code Compliance and the Police Department due to evening concerns in the downtown area (e.g., hours of operation and noise complaints) and after hours code compliance issues.  Community Development Department (CDD) – Staffing reallocations occurred between the different programs in this Department; however, the total Department staffing did not change. Budgeted salary and benefit expenditures reflect the aforementioned part-time Community Services Officer (CSO) position being continued with one-time funding.  Parks and Public Works (PPW) – In FY 2017/18, the Department will include funding ($217,000) for a Transportation and Mobility Manager to establish project feasibility and to best position the Town to compete for Measure B opportunities. In addition, a 1.0 FTE Facilities and Environmental Services Manager has been changed to and funded as a Parks and Public Works Operations Manager. Additionally, the Parks and Public Works Department has deleted a vacant Parks and Maintenance Worker, 1,000 temporary staff hours for a Park Services Officer, and 930 temporary staff hours for a Maintenance Assistant. These decreases will fund the addition of a second Parks and Public Works Operations Manager. An addition of $43,000 in one-time monies is for temporary staff hours. Furthermore, a 1.0 FTE Executive Assistant was changed to an Environmental Programs Specialist.  Library - The FY 2017/18 Library budget reflects and status quo budget and a one-time funding of 250 temporary librarian hours.  Salary Increases and Elimination of Furloughs – Salary adjustments included for FY 2017/18 reflect the negotiated agreements with the Town’s three employee unions [Association of A - 8 Federal, State, County and Municipal Employees (AFSCME), Town Employees’ Association (TEA) and Los Gatos Police Officers’ Association (LGPOA)]. Non-Personnel Operating Expenditures Non-Personnel expenditure budgets were developed based on actual expenditures in prior years, adjusted for FY 2017/18 funding needs. In light of limited available resources, the FY 2017/18 proposed budgeted non-personnel expenditures are conservative, with additions primarily limited to non- discretionary, contractually obligated, or mandated increases. Unfunded Mandates and Special Projects The FY 2017/18 Proposed Budget includes funding to address two unfunded mandates, one for storm water pollution prevention and the second for traffic signage maintenance. Storm water requirements include defined improvements towards monitoring and preventing pollution of the storm drains, inspecting and cleaning of storm drains, and installing and maintaining filters to prevent pollution. In addition, the federal government has mandated reflectivity levels for signs with prioritization of speed limit and stop signs. It is expected that within a two to three year period, all traffic signs will be replaced. Both of these mandates require the Town to increase spending in these areas to meet existing regulations. Non-compliance could result in fines and liabilities. Funding for these mandates is proposed as a one-time, $40,000 addition to the FY 2017/18 budget. It is expected that these mandates will increase over time requiring additional allocation of funds to maintain compliance. In addition, a new law took effect January 1, 2015 that allows eligible employees who did not previously qualify for sick leave benefits (seasonal, temporary/hourly employees) to start accruing sick leave starting July 1, 2015. This is an on-going expenditure for the Town that is included in the FY 2017/18 budget. FIVE-YEAR FINANCIAL PLAN Serving as a foundation of the budget planning process, the Town updates the Five-Year Financial Plan beginning in the fall of each year. The plan includes updates to Town revenues and expenditures with the first year of the forecast’s revenue estimates being the most critical in the process, as that will ultimately define the expenditure limitations for the forthcoming budget year. The multi-year conservative revenue projections further refine the Town’s planning for current and future expenditures based on future projections. The preliminary assumptions are used to forecast the Town’s fiscal capacity and provide the financial framework within which the proposed Department service levels must be developed. They also serve as the basis to test the potential impacts of proposed policy and operational modifications based upon the Town Council’s most recently adopted Strategic Priorities. Indicative of the continued improvement in the local economy, the Five-Year forecast provides some limited opportunities to fund non-discretionary increases related to various costs such as contractually obligated increases and unavoidable increases in certain employee benefit costs such as pension and health care. The forecast includes General Fund one time uses for both salaries and benefits for temporary employees to provide help with special projects, temporary workload relief, and mandated costs. The next page summarizes most recent Five-Year Financial Plan prepared in early May 2017. The updated Five-Year Financial Plan spans FY 2017/18 – 2022/2023. A - 9 Account Revenue Category 2016/17 Estimated 2017/18 Proposed 2018/19 Forecast 2019/20 Forecast 2020/21 Forecast 2021/22 Forecast 2022/23 Forecast 4100 Property Tax 11.1$ 11.4$ 11.7$ 12.1$ 12.4$ 12.8$ 13.2$ 4110 VLF Backfill Property Tax 3.2 3.3 3.3 3.3 3.4 3.4 3.4 4200 Sales & Use Tax 8.8 8.0 8.0 8.2 8.4 8.6 8.6 4250 Franchise Fees 2.2 2.3 2.4 2.4 2.5 2.6 2.6 4251 Transient Occupancy Tax 2.0 2.1 2.1 2.2 2.3 2.3 2.4 4400 Business License Tax 1.5 1.6 1.5 1.5 1.5 1.5 1.5 4400 Licenses & Permits 3.1 2.9 3.0 3.1 3.2 3.3 3.4 4500 Intergovernmental 0.7 0.7 0.7 0.7 0.7 0.7 0.7 4600 Charge for Services 2.3 2.5 2.5 2.6 2.7 2.7 2.8 4700 Fines & Forfeitures 0.7 0.7 0.7 0.7 0.7 0.7 0.7 4800 Interest 0.3 0.3 0.3 0.3 0.3 0.3 0.3 4850 Other Sources 3.2 2.9 3.1 3.1 3.2 3.2 3.2 4900 Fund Transfers In 0.4 0.6 0.6 0.6 0.6 0.6 0.6 TOTAL REVENUES 39.5$ 39.3$ 39.9$ 40.8$ 41.9$ 42.7$ 43.4$ Use of Reserves Capital Reserve 7.0 0.4 0.4 0.4 0.4 0.4 0.4 Use of CalPERS/OPEB Reserve 1.0 Use of Budget Strategy/Almond Grove Reserve 2.5 47.5$ 42.2$ 40.3$ 41.2$ 42.3$ 43.1$ 43.8$ Account Expenditure Category 2016/17 Estimated 2017/18 Proposed 2018/19 Forecast 2019/20 Forecast 2020/21 Forecast 2021/22 Forecast 2022/23 Forecast 5110 Salary - Regular Employees 14.8$ 15.7$ 15.7$ 15.7$ 15.8$ 15.8$ 15.8$ 5130 Salary -Temporary Employees 0.6 0.7 0.6 0.6 0.6 0.6 0.6 5140 Salary - Overtime 0.4 0.4 0.4 0.4 0.4 0.4 0.4 5170 Salary - Other Salary 0.1 0.1 0.1 0.1 0.1 0.1 0.1 5200 Benefits 7.9 8.6 9.0 9.9 10.7 11.4 12.0 6000 Operating Expenditures 5.7 6.0 6.0 6.1 6.2 6.4 6.5 7200 Grants & Awards 0.2 0.2 0.2 0.2 0.2 0.2 0.2 7400 Utilities 0.6 0.5 0.6 0.6 0.6 0.6 0.7 8060 Internal Service Charges 3.6 4.0 4.1 4.1 4.3 4.3 4.4 8900 Debt Service 1.9 1.9 1.9 1.9 1.9 1.9 1.9 TOTAL EXPENDITURES 35.8$ 38.1$ 38.6$ 39.6$ 40.8$ 41.7$ 42.6$ 9900 Capital Transfers Out to GFAR 7.0 2.5 0.4 0.4 0.4 0.4 0.4 9900 GASB 45 Retiree Medical Actuarial 2.6 1.6 1.6 1.6 1.6 1.6 1.6 TOTAL BUDGETED EXPENDITURES 45.4$ 42.2$ 40.6$ 41.6$ 42.8$ 43.7$ 44.6$ 9900 FY 2017/18 Salary Allocations - 45.4$ 42.2$ 40.6$ 41.6$ 42.8$ 43.7$ 44.6$ NET REVENUES LESS EXPENDITURES 2.1$ -$ (0.3)$ (0.4)$ (0.5)$ (0.6)$ (0.8)$ TOTAL REVENUES & TRANSFERS TOTAL EXPENDITURES & ALLOCATIONS Town of Los Gatos General Fund ($ millions) *FY 2017/18 $7.0 million in use of Reserves/Deposit is for capital projects funding, inclusive of $6.0 million for Phase 2 of the Almond Grove Street Rehabilitation Project. The updated forecast for fiscal year 2016/17 year-end estimates indicate excess revenues over expenditures in the amount of approximately $2.1 million. The forecasted excess is reflective of moderate growth in the Town’s Property Tax collections, Transient Occupancy Taxes, and business licenses. According to Town General Fund Reserve Policy if the Catastrophic and Budget Stabilization Reserves 25% of funding level reached, $300,000 will be transferred into the CalPERS/OPEB Reserve. The rest of the FY 2016/17 operating budget year-end savings typically transfers to the General Fund Reserve for Capital Projects to be available to fund future capital projects. The Council may wish to discuss other priorities for the excess. A - 10 STATE BUDGET IMPACTS Details on the State of California FY 2017/18 Proposed Budget will be available as part of the Governor’s May Revised Budget and it is not expected to be materially different from the Governor’s FY 2017/18 Proposed Budget released in January 2017. The Governor’s Proposed Budget explains that while State revenues surged during the years of recovery from the Great Recession, this pattern is beginning to change as State revenues struggle to meet expectations and the budget now faces a deficit of almost $2 billion if there are no actions taken. The Governor’s January budget proposal includes $3.2 billion in budget solutions to bring the State’s finances back into balance including: eliminating the authority to spend one-time dollars that were contained in the FY 2016/17 budget, limiting spending proposals to keep spending flat in FY 2017/18, and adjusting Proposition 98 to avoid over appropriating the minimum guarantee. Regarding transportation revenues, the Governor proposes to allocate about $206 million for local road maintenance and repairs, $485 million for transit, $358 million to improve trade corridors, and $120 million for state highway maintenance. The estimated Gas Tax revenue totals approximately $780,000 for FY 2017/18 and are expected to increase annually to $1,100,000 beginning FY 2018/19 due to the recently enacted Road Recovery and Repair Act of 2017 (SB1). These funds can only be used for new construction and reconstruction of Town streets. ONGOING BUDGET ISSUES: Fire Protection Services Fire Protection Services for the Town of Los Gatos are provided by the Santa Clara County Central Fire Protection District. These services have been provided under an annexation agreement effective March 18, 1970 in which the tax rate then in effect for Town’s fire protection services was essentially transferred to the County’s Central Fire Protection District. Based upon the latest assessed valuation reports provided by the County of Santa Clara, the property tax collected from Los Gatos residents for FY 2016/17 and remitted to the Santa Clara County Central Fire Protection District for fire protection services is estimated to be approximately $14.3 million. Unfunded Other Post-Employment Benefits (OPEB) and Pension Liabilities The Town’s unfunded pension liability (UL) as of June 30, 2015 (the “date of value” for our most up to date actuarial valuation from the California Public Employees Retirement System or “PERS”) is approximately $40.8 million. The Town’s unfunded OPEB liabilities are projected to total approximately $12.7 million. In December 2016, the CalPERS Board approved a gradual reduction in the assumed earnings of its pension fund referred to the “discount rate” which is expected to add stability to the pension trust fund, and will also impact the Town’s employer contribution rates and increase the unfunded liability calculation. In addition to prior efforts by the Town to annually appropriate and pre-fund OPEB liabilities and to pay off the pension plan side fund ($4.5 million in 2014), the Town Council recently approved an additional $1 million dollar lump sum payment to be made in FY 2016/17 to further reduce the unfunded OPEB liabilities (see the discussion regarding OPEB on the next page). In March 2017, the Town appointed three residents with financial expertise as non-voting members to the Town Council Finance Committee. The Committee is providing valuable guidance to the Town Council and staff in the development of long term strategies to pay down and manage OPEB and pension liabilities. As a result of the Committee’s early work on this issue, Council approved the release of a Request for Proposal for financial vendors who offer an Internal Revenue Service Code Section 115 pension trust that can be set up to be dedicated A - 11 to fund future pension costs. It is anticipated that the trust will provide opportunities to set aside dollars specifically to address the unfunded liabilities and more flexibility in terms of investment allocations and a prudent investment strategy. Review of the proposals received is expected in the summer of 2017. The FY 2017/18 Proposed Budget also includes an additional $1 million dollar appropriation from the FY 2016/17 Budget Strategy Reserve to be considered for use to address pension or OPEB liabilities. Staff is also following pending State legislation that may possibly allow other less costly options for cities and to level the playing field so that comparable pension offerings are consistent between local governments. Other Post-Employment Benefits (OPEB) The FY 2017/18 Proposed Budget includes an allocation of approximately $1,014,000 in “pay-as-you-go” payments for retiree medical employer contributions. In addition, the proposed budget also includes a $1,600,000 payment to the Town’s California Employee Retirement Benefit Trust (CERBT). The Trust was established on June 30, 2007 to address the unfunded liability that resulted from the implementation of a new accounting standard for post-employment benefits. The Town makes annual contributions to the CERBT, a multiple-employer defined benefit health care plan administered by CalPERS. The purpose of the CERBT Fund is to provide local governments with a trust through which they may pre-fund retiree medical costs and other post-employment benefits. In addition, in FY 2016/17 the Town Council dedicated an additional $1,000,000 payment to the fund based on the Council Finance Committee recommendation. To date the retiree health benefits have been paid entirely out of current operating budgets and no withdrawals have been made from the Town’s CERBT “pre-funding” account. The current balance in this account is approximately $10.5 million as of April 2017. The additional one-time payment of $1,000,000 is not reflected in this balance. To help reduce costs related to post-employment benefits, the Town proactively bargained an agreement wherein effective for employees retiring after February 1, 2016 the annuitant of Medicare eligible age is reimbursed to a maximum amount of benefit matching “Kasier North” Employee or Employee plus One. It is estimated this cap on reimbursement will achieve approximately $200,000 per year in actuarially required contributions to the OPEB plan. CONCLUSION While the global, national, state, and local economy appears to remain positive, it is likely that the economy will weaken within the next couple of years. For this reason, the FY 2017/18 budget proposes to maintain the status quo of the Town’s high service levels with minimal staffing additions, while also addressing the Town Council’s priorities. In light of future projections, opportunities to enhance service delivery, while lowering operating costs through resource and workload redeployments and organizational restructuring continue to be explored. Developments at the local and State level, including unanticipated changes in major revenue sources or unforeseen State revenue “takes,” will be brought to Town Council’s attention in a timely manner so that an appropriate action can be taken. I wish to thank all of the departments, in particular, Department Directors and the members of their management, analytical, and support staff, who worked diligently on the preparation of this budget document. Specifically, I would like to recognize the efforts of: Stephen Conway, Finance Director Gitta Ungvari, Finance and Budget Manager Mark Gaeta, Accountant Melissa Ynegas, Administrative Analyst A - 12 Diane Howard, Payroll Specialist Will Wilson, Accountant Respectfully submitted, Laurel Prevetti Town Manager A - 13 The Government Finance Officers Association of the United States and Canada (GFOA) has presented a Distinguished Budget Presentation Award to the Town of Los Gatos, California for its annual budget since the fiscal year beginning July 1, 2003. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. A - 14 C - 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 2017/18 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*24,446,093$ 39,324,303$ 42,241,001$ 21,529,395$ -11.9% Housing Conservation Program 74,586 - - 74,586 0.0% Community Dev Block Grant (4,576) - - (4,576) 0.0% Urban Run-Off Source Fund (16,317) 584,394 564,910 3,167 -119.4% Blackwell Assessment District 11,491 3,210 9,852 4,849 -57.8% Kennedy Assessment District 41,621 10,322 38,634 13,309 -68.0% Gemini Assessment District 22,878 4,647 11,701 15,824 -30.8% Santa Rosa Assessment District 61,673 4,800 13,255 53,218 -13.7% Vasona Assessment District 44,654 9,885 18,644 35,895 -19.6% Hillbrook Assessment District 14,924 5,997 17,960 2,961 -80.2% Proprietary Funds - Internal Service Funds ABAG Self Insurance 812,653 553,953 816,952 549,654 -32.4% Worker's Comp Self Insurance 1,040,633 696,547 1,258,466 478,714 -54.0% Information Technology 2,853,080 1,180,879 1,424,950 2,609,009 -8.6% Office Stores Fund 166,627 118,000 134,500 150,127 -9.9% Equipment Replacement 1,751,729 624,279 658,688 1,717,320 -2.0% Facilities Maintenance 484,535 586,654 583,491 487,698 0.7% Vehicle Maintenance 455,559 1,436,089 1,402,052 489,596 7.5% Total Operating Funds 32,261,843$ 45,143,959$ 49,195,056$ 28,210,746$ -12.6% Trust & Agency Funds Library Trust 36,695$ 74,050$ 72,500$ 38,245$ 4.2% Ness Trust Bequest 41,593 850 - 42,443 2.0% Betty McClendon Trust 89,367 705 - 90,072 0.8% Barbara J Cassin Trust 350,282 2,760 - 353,042 0.8% Total Trust & Agency Funds 517,937$ 78,365$ 72,500$ 523,802$ 1.1% Capital Funds GFAR*19,289,522$ 3,824,319$ 3,211,124$ 19,902,717$ 3.2% Grant Funded CIP Projects (379,586) 250,000 250,000 (379,586) 0.0% Storm Drain #1 769,808 48,850 - 818,658 6.3% Storm Drain #2 999,394 50,000 - 1,049,394 5.0% Storm Drain #3 (21,798) 2,390 150,000 (169,408) 677.2% Traffic Mitigation 207,226 30,000 10,000 227,226 9.7% Construction Tax-Undergrounding 2,925,911 44,280 42,000 2,928,191 0.1% Gas Tax 711,042 882,457 886,000 707,499 -0.5% Total Capital Projects Funds 24,501,519$ 5,132,296$ 4,549,124$ 25,084,691$ 2.4% Successor Agency of the Los Gatos RDA Fund SA- Trust Fund 3,601,794$ 3,857,721$ 3,856,383$ 3,603,132$ 0.0% Total Successor Agency of the Los Gatos RDA Fund 3,601,794$ 3,857,721$ 3,856,383$ 3,603,132$ 0.0% TOTAL ALL FUNDS 60,883,093$ 54,212,341$ 57,673,063$ 57,422,371$ -5.7% * Major Funds 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. Year End Reference Revenues & Transfers In Expenditures & Transfers Out Designated Fund Balance 2008/09 Actuals 57,785,657$ 54,751,838$ 52,447,970$ 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 63,470,972$ 56,593,416$ 58,247,885$ 2015/16 Actuals 54,234,948$ 50,881,063$ 61,601,752$ 2016/17 Estimated 57,640,686$ 58,359,363$ 60,883,093$ 2017/18 Proposed 54,212,341$ 57,673,063$ 57,422,371$ 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 2017/18 operating budget is a balanced budget, with use of General Fund reserves dedicated for one-time uses. However, the five-year financial forecast projects revenue shortfalls resulting primarily from the increased pension contributions as a result of recent actions taken by CalPERS to lower its discount rate. The shortfalls are projected over future years and need to be addressed proactively either through revenue enhancements or service delivery adjustments, barring unforeseen increases in existing local revenue sources. The FY 2017/18 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 46.8% of the Town’s total expenditures and 60.3% of General Fund expenditures in FY 2017/18. When fiscal conditions worsened during the recession, 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% all across the board salary increase was approved for all three bargaining units retroactive for FY 2016/17 and another 2.5% increase goes into effect for FY 2017/18. The Town’s three bargaining units are: Association of Federal, State, County and Municipal Employees (AFSCME), Town Employees’ Association (TEA) and Los Gatos Police Officers’ Association (LGPOA). Pension contributions are also a significant 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). Despite the $4.5 million CalPERS side fund payoff in June 2014, the Town’s employer pension contributions continue to rise 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 lower discount rate takes effect for the Town in FY 2018/19 employer rates. For FY 2017/18, the rate for sworn employees will increase from 36.18% in FY 2016/17 to 39.60% in FY 2017/18. For all other employees, the rate will increase from 26.96% in FY 2016/17 to 27.40% in FY 2017/18. 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 2017/18, while the prior year experienced an decrease. The rates may continue to be unstable, creating unpredictability for budget projections. To assist with cost- containment, employees are contributing a share of dependent premiums. 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 experiencing increases in many economically sensitive revenues such as Property Tax, Transient Occupancy Tax (TOT), Business License Tax, and Franchise Fees for FY 2017/18. General Fund revenues for FY 2017/18, (excluding debt payments and fund transfers in) are 3.6 % 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 3 / 1 4 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 3 / 1 4 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 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 9, 0 5 4 , 9 0 8 $ 10 , 1 1 3 , 2 8 7 $ 10 , 7 7 9 , 4 3 4 $ 11 , 0 5 1 , 9 3 6 $ 11 , 3 8 3 , 0 7 3 $ 36 $ 17 $ 13 $ - $ - $ VL F B a c k f i l l 2, 6 5 7 , 4 0 4 2, 8 1 8 , 3 1 6 2, 9 8 4 , 0 2 3 3, 2 3 7 , 0 0 0 3, 2 6 9 , 3 7 0 - - - - - Sa l e s & U s e T a x 8, 0 2 9 , 5 7 1 8, 2 0 2 , 6 7 8 7, 5 0 1 , 1 7 5 8, 8 1 4 , 9 5 6 7, 9 7 2 , 1 9 5 - - - - - Fr a n c h i s e F e e s 2, 0 6 3 , 7 5 6 2, 2 1 5 , 4 3 0 2, 2 5 8 , 8 9 2 2, 2 2 1 , 1 2 0 2, 2 8 7 , 3 9 0 - - - - - Tr a n s i e n t O c c u p a n c y T a x 1, 5 1 2 , 8 4 6 1, 8 9 6 , 7 2 1 1, 9 4 3 , 1 6 6 2, 0 0 0 , 0 0 0 2, 0 6 0 , 0 0 0 - - - - - Ot h e r T a x e s 1, 1 5 5 , 8 0 2 1, 8 0 9 , 6 2 0 1, 4 7 5 , 4 2 5 1, 4 5 7 , 0 0 0 1, 5 8 2 , 0 0 0 38 , 1 4 2 37 , 7 2 3 28 , 0 9 6 37 , 7 7 5 38 , 2 2 0 Li c e n s e s & P e r m i t s 3, 2 3 5 , 1 2 2 3, 6 8 7 , 3 9 3 3, 5 5 2 , 9 3 5 3, 0 9 7 , 4 0 7 2, 9 4 1 , 3 5 9 - - 30 , 0 0 0 30 , 7 8 0 23 1 , 3 2 3 In t e r g o v e r n m e n t a l 81 7 , 6 9 9 1, 0 0 4 , 6 6 1 98 4 , 5 0 7 72 0 , 2 7 0 66 6 , 3 7 5 19 , 3 6 0 17 6 , 7 0 5 6, 0 1 1 - - To w n S e r v i c e s 2, 6 8 4 , 1 2 6 2, 6 4 3 , 2 7 6 2, 6 7 7 , 9 4 4 2, 3 2 1 , 0 8 6 2, 4 6 4 , 1 7 7 32 8 , 6 4 8 32 8 , 8 6 8 33 8 , 8 1 3 33 6 , 6 8 4 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 77 2 , 6 4 7 84 2 , 4 7 0 85 8 , 9 2 9 73 2 , 6 6 2 69 5 , 4 0 0 - - - - - In t e r e s t 62 5 , 2 9 8 43 0 , 4 7 6 62 0 , 8 9 5 27 0 , 7 2 3 27 0 , 7 2 3 10 , 8 7 0 2, 6 3 5 1, 4 8 0 64 1 64 1 Ot h e r S o u r c e s 3, 8 1 2 , 7 9 8 3, 0 3 0 , 8 0 0 1, 6 7 3 , 3 9 5 1, 2 3 7 , 2 9 5 1, 2 3 7 , 6 6 6 12 , 3 5 8 3, 3 5 0 - - - 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 3 5 , 5 7 8 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 - - - - - Tr a n s f e r s I n 32 8 , 9 3 8 31 1 , 8 1 0 2, 4 3 6 , 4 0 5 36 3 , 4 2 8 57 9 , 8 3 6 - 10 0 , 0 0 0 50 , 0 0 0 - - TO T A L R E V E N U E S 38 , 6 8 6 , 4 9 3 $ 40 , 9 3 4 , 9 9 4 $ 41 , 6 6 9 , 5 2 3 $ 39 , 4 4 8 , 1 8 6 $ 39 , 3 2 4 , 3 0 3 $ 40 9 , 4 1 4 $ 64 9 , 2 9 8 $ 45 4 , 4 1 3 $ 40 5 , 8 8 0 $ 62 3 , 2 5 5 $ 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 25 , 0 3 6 , 7 0 2 $ 20 , 6 5 8 , 1 7 3 $ 21 , 3 4 2 , 2 7 8 $ 21 , 3 8 0 , 6 7 3 $ 25 , 4 2 6 , 2 1 3 $ 65 , 1 6 3 $ 10 8 , 5 5 6 $ 11 1 , 6 6 4 $ 12 2 , 2 7 0 $ 16 5 , 6 6 8 $ Op e r a t i n g E x p e n d i t u r e s 8, 0 2 9 , 9 6 9 8, 4 4 0 , 1 3 6 8, 1 3 7 , 8 5 8 8, 6 0 5 , 9 5 3 8, 2 2 8 , 7 0 9 27 1 , 5 8 1 31 9 , 4 6 8 35 5 , 0 2 1 38 3 , 9 1 9 41 2 , 9 6 3 Gr a n t s & A w a r d s 15 1 , 0 1 0 19 7 , 0 7 4 19 4 , 1 5 5 20 4 , 8 0 0 20 9 , 8 0 0 - - - - - Fi x e d A s s e t s 62 , 7 5 6 75 , 4 4 2 41 1 , 8 2 0 - - - - - - 82 , 5 0 0 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 7 7 , 0 3 1 3, 3 2 5 , 3 7 3 3, 5 3 9 , 9 3 6 3, 5 6 7 , 0 2 2 3, 9 7 9 , 3 1 4 3, 1 3 9 4, 8 6 7 5, 5 1 9 8, 2 0 8 8, 9 0 5 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 3 5 , 5 7 8 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 - - - - - Tr a n s f e r s O u t 2, 8 9 1 , 3 8 4 7, 3 8 6 , 4 9 1 58 1 , 0 1 4 6, 9 6 3 , 7 7 3 2, 4 8 2 , 2 2 7 24 , 2 8 0 18 1 , 6 2 5 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 41 , 4 8 4 , 4 3 0 $ 42 , 0 1 0 , 7 4 5 $ 36 , 1 2 9 , 4 5 9 $ 42 , 6 4 5 , 5 2 4 $ 42 , 2 4 1 , 0 0 2 $ 36 4 , 1 6 3 $ 61 4 , 5 1 6 $ 47 7 , 1 2 4 $ 51 9 , 3 1 7 $ 67 4 , 9 5 6 $ Ne t I n c r e a s e ( D e c r e a s e ) (2 , 7 9 7 , 9 3 7 ) (1 , 0 7 5 , 7 5 1 ) 5, 5 4 0 , 0 6 4 (3 , 1 9 7 , 3 3 8 ) (2 , 9 1 6 , 6 9 9 ) 45 , 2 5 1 34 , 7 8 2 (2 2 , 7 1 1 ) (1 1 3 , 4 3 7 ) (5 1 , 7 0 1 ) Be g i n n i n g F u n d B a l a n c e 25 , 9 7 7 , 0 5 4 23 , 1 7 9 , 1 1 7 22 , 1 0 3 , 3 6 6 27 , 6 4 3 , 4 3 0 24 , 4 4 6 , 0 9 2 30 7 , 0 5 2 35 2 , 3 0 3 38 7 , 0 8 5 36 4 , 3 7 4 25 0 , 9 3 7 En d 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 6 $ 27 , 6 4 3 , 4 3 0 $ 24 , 4 4 6 , 0 9 2 $ 21 , 5 2 9 , 3 9 3 $ 35 2 , 3 0 3 $ 38 7 , 0 8 5 $ 36 4 , 3 7 4 $ 25 0 , 9 3 7 $ 19 9 , 2 3 6 $ 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 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 3 / 1 4 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 3 / 1 4 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 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 - $ - $ - $ - $ - $ 61 $ - $ - $ - $ - $ 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 11 6 , 0 2 0 13 5 , 9 5 9 44 , 4 5 3 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 , 8 8 4 16 2 , 9 9 9 14 7 , 8 5 0 95 , 0 0 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 , 2 1 9 4, 1 0 6 , 9 5 5 4, 5 2 1 , 6 1 0 4, 1 0 0 , 5 9 1 4, 7 9 7 , 8 2 5 - - - - - Fi n e s & F o r f e i t u r e s - - - - - - - - - - In t e r e s t 10 5 6 - - 14 , 3 2 8 (1 , 8 6 9 ) 4, 8 6 3 4, 8 6 5 4, 8 6 5 Ot h e r S o u r c e s 43 9 , 7 9 8 73 3 , 8 7 8 32 7 , 9 2 0 26 0 , 8 8 0 26 3 , 5 7 6 38 , 2 0 0 37 , 3 0 4 16 3 , 5 1 7 67 , 0 0 0 73 , 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 - 10 , 0 0 0 - - - 1, 3 8 0 - - TO T A L R E V E N U E S 4, 8 2 4 , 9 3 1 $ 5, 6 7 0 , 8 6 2 $ 5, 0 4 1 , 8 3 9 $ 4, 5 0 6 , 4 7 1 $ 5, 1 9 6 , 4 0 1 $ 52 , 5 8 9 $ 35 , 4 3 5 $ 16 9 , 7 6 0 $ 71 , 8 6 5 $ 78 , 3 6 5 $ 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, 0 5 0 , 0 9 2 $ 1, 1 9 2 , 2 1 4 $ 1, 2 9 8 , 3 9 7 $ 1, 3 3 4 , 7 1 0 $ 1, 4 1 2 , 5 6 5 $ 12 3 $ - $ - $ - $ - $ Op e r a t i n g E x p e n d i t u r e s 3, 7 0 5 , 7 5 7 3, 1 0 6 , 7 0 2 3, 6 1 9 , 7 2 8 3, 4 8 8 , 4 4 6 4, 0 7 1 , 8 7 2 11 2 , 1 0 5 87 , 7 4 4 16 0 , 2 0 9 32 , 0 0 0 37 , 5 0 0 Gr a n t s & A w a r d s - - - - - - - - - - Fi x e d A s s e t s 33 6 , 7 0 9 28 0 , 3 5 7 54 7 , 1 7 1 48 3 , 4 1 4 79 4 , 6 6 1 - - - - - In t e r e s t - - - - - 14 0 , 3 6 6 - - - - In t e r n a l S e r v i c e C h a r g e s 1, 1 2 9 - 17 0 - - - - - - - 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 16 8 , 9 5 6 1, 4 4 0 , 7 1 4 1, 5 0 0 , 8 3 3 29 5 , 6 8 0 - - - 21 5 , 5 8 4 45 , 0 0 0 35 , 0 0 0 TO T A L E X P E N D I T U R E S 5, 2 6 2 , 6 4 3 $ 6, 0 1 9 , 9 8 7 $ 6, 9 6 6 , 2 9 9 $ 5, 6 0 2 , 2 5 0 $ 6, 2 7 9 , 0 9 8 $ 25 2 , 5 9 4 $ 87 , 7 4 4 $ 37 5 , 7 9 3 $ 77 , 0 0 0 $ 72 , 5 0 0 $ Ne t I n c r e a s e ( D e c r e a s e ) (4 3 7 , 7 1 2 ) (3 4 9 , 1 2 5 ) (1 , 9 2 4 , 4 6 0 ) (1 , 0 9 5 , 7 7 9 ) (1 , 0 8 2 , 6 9 7 ) (2 0 0 , 0 0 5 ) (5 2 , 3 0 9 ) (2 0 6 , 0 3 3 ) (5 , 1 3 5 ) 5, 8 6 5 Be g i n n i n g F u n d B a l a n c e 11 , 3 7 1 , 8 9 4 10 , 9 3 4 , 1 8 2 10 , 5 8 5 , 0 5 7 8, 6 6 0 , 5 9 7 7, 5 6 4 , 8 1 8 98 1 , 4 2 1 78 1 , 4 1 6 72 9 , 1 0 7 52 3 , 0 7 4 51 7 , 9 3 9 En d 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 $ 7, 5 6 4 , 8 1 8 $ 6, 4 8 2 , 1 2 1 $ 78 1 , 4 1 6 $ 72 9 , 1 0 7 $ 52 3 , 0 7 4 $ 51 7 , 9 3 9 $ 52 3 , 8 0 4 $ I N 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 3 / 1 4 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 20 1 3 / 1 4 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 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 11 6 , 0 2 0 13 5 , 9 5 9 44 , 4 5 3 30 , 0 0 0 30 , 0 0 0 - - - - - Li c e n s e s & P e r m i t s 95 6 , 7 8 0 1, 2 3 0 , 0 6 8 66 2 , 9 9 8 56 5 , 9 2 9 57 5 , 9 2 9 - - - - - In t e r g o v e r n m e n t a l 1, 6 0 3 , 0 6 8 1, 7 3 9 , 6 3 6 1, 0 2 7 , 7 9 2 79 4 , 5 9 1 1, 8 9 2 , 0 2 0 11 0 , 6 3 5 10 3 , 0 0 9 40 , 8 4 0 21 , 1 6 3 19 , 8 6 2 To w n S e r v i c e s 13 , 8 0 0 - - 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 13 5 , 9 9 6 (4 , 3 7 6 ) 75 , 9 3 2 31 , 0 2 0 44 , 1 2 0 22 4 3, 5 4 4 2, 3 9 3 50 3, 1 5 0 Ot h e r S o u r c e s 64 7 , 0 0 0 66 8 , 9 5 6 59 1 , 1 2 3 64 8 , 4 5 2 10 8 , 0 0 0 - - - - - CI P P r o j R e i m b u r s e m e n t - - - - - 3, 8 9 2 , 0 0 6 3, 8 9 2 , 5 3 0 3, 8 7 1 , 0 8 2 3, 8 5 0 , 1 2 6 3, 8 3 4 , 7 0 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 3, 0 5 8 , 0 1 3 8, 4 1 1 , 0 5 7 58 2 , 8 0 0 7, 2 5 9 , 4 5 3 2, 4 8 2 , 2 2 7 21 , 6 8 7 - - - - TO T A L R E V E N U E S 6, 5 3 0 , 6 7 7 $ 12 , 1 8 1 , 3 0 0 $ 2, 9 8 5 , 0 9 8 $ 9, 3 3 6 , 9 4 5 $ 5, 1 3 2 , 2 9 6 $ 4, 0 2 4 , 5 5 2 $ 3, 9 9 9 , 0 8 3 $ 3, 9 1 4 , 3 1 5 $ 3, 8 7 1 , 3 3 9 $ 3, 8 5 7 , 7 2 1 $ 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 - $ - $ - $ - $ - $ 12 , 0 3 2 $ 13 , 4 5 5 $ 14 , 1 0 2 $ 1, 4 3 5 $ 1, 4 7 5 $ Op e r a t i n g E x p e n d i t u r e s - - 6, 0 9 1 4, 5 7 1 - 26 4 , 6 4 8 5, 5 6 5 5, 3 5 7 7, 3 2 0 19 , 0 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 - - - - - 95 5 , 0 0 0 99 0 , 0 0 0 1, 0 2 5 , 0 0 0 1, 0 6 5 , 0 0 0 1, 1 0 5 , 0 0 0 In t e r n a l S e r v i c e C h a r g e s - - - - - 2, 9 1 5 55 2 56 1 56 59 Ca p i t a l P r o j e c t s 3, 5 8 0 , 5 0 4 3, 6 1 8 , 6 0 7 2, 2 9 3 , 2 4 7 5, 3 3 1 , 7 7 6 4, 0 1 5 , 5 0 8 - - - - - Ca p i t a l A c q u i s i t i o n s 12 5 , 9 0 0 21 , 0 3 2 - - - - - - - - De b t S e r v i c e - - - - - 2, 9 1 6 , 1 5 6 2, 8 6 6 , 1 1 1 2, 8 1 9 , 7 9 6 2, 7 8 1 , 6 0 6 2, 7 2 4 , 4 7 9 Tr a n s f e r s O u t 21 3 , 3 8 3 21 9 , 9 3 3 69 8 , 5 8 0 31 5 , 8 0 8 53 3 , 6 1 6 11 0 , 6 3 5 12 5 , 1 6 9 69 , 6 5 4 7, 7 0 0 6, 3 0 0 TO T A L E X P E N D I T U R E S 3, 9 1 9 , 7 8 7 $ 3, 8 5 9 , 5 7 2 $ 2, 9 9 7 , 9 1 8 $ 5, 6 5 2 , 1 5 5 $ 4, 5 4 9 , 1 2 4 $ 4, 2 6 1 , 3 8 6 $ 4, 0 0 0 , 8 5 2 $ 3, 9 3 4 , 4 7 0 $ 3, 8 6 3 , 1 1 7 $ 3, 8 5 6 , 3 8 3 $ Ne t I n c r e a s e ( D e c r e a s e ) 2, 6 1 0 , 8 9 0 8, 3 2 1 , 7 2 8 (1 2 , 8 2 0 ) 3, 6 8 4 , 7 9 0 58 3 , 1 7 2 (2 3 6 , 8 3 4 ) (1 , 7 6 9 ) (2 0 , 1 5 5 ) 8, 2 2 2 1, 3 3 8 Be g i n n i n g F u n d B a l a n c e 9, 8 9 6 , 9 2 5 12 , 5 0 7 , 8 1 5 20 , 8 2 9 , 5 4 3 20 , 8 1 6 , 7 2 3 24 , 5 0 1 , 5 1 3 3, 8 5 2 , 3 2 9 3, 6 1 5 , 4 9 5 3, 6 1 3 , 7 2 6 3, 5 9 3 , 5 7 1 3, 6 0 1 , 7 9 3 En d 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 $ 24 , 5 0 1 , 5 1 3 $ 25 , 0 8 4 , 6 8 5 $ 3, 6 1 5 , 4 9 5 $ 3, 6 1 3 , 7 2 6 $ 3, 5 9 3 , 5 7 1 $ 3, 6 0 1 , 7 9 3 $ 3, 6 0 3 , 1 3 1 $ 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 C A 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 3 / 1 4 20 1 4 / 1 5 20 1 5 / 1 6 20 1 6 / 1 7 20 1 7 / 1 8 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 9, 0 5 5 , 0 0 5 $ 10 , 1 1 3 , 3 0 4 $ 10 , 7 7 9 , 4 4 7 $ 11 , 0 5 1 , 9 3 6 $ 11 , 3 8 3 , 0 7 3 $ VL F B a c k f i l l 2, 6 5 7 , 4 0 4 2, 8 1 8 , 3 1 6 2, 9 8 4 , 0 2 3 3, 2 3 7 , 0 0 0 3, 2 6 9 , 3 7 0 Sa l e s & U s e T a x 8, 0 2 9 , 5 7 1 8, 2 0 2 , 6 7 8 7, 5 0 1 , 1 7 5 8, 8 1 4 , 9 5 6 7, 9 7 2 , 1 9 5 Fr a n c h i s e F e e s 2, 0 6 3 , 7 5 6 2, 2 1 5 , 4 3 0 2, 2 5 8 , 8 9 2 2, 2 2 1 , 1 2 0 2, 2 8 7 , 3 9 0 Tr a n s i e n t O c c u p a n c y T a x 1, 5 1 2 , 8 4 6 1, 8 9 6 , 7 2 1 1, 9 4 3 , 1 6 6 2, 0 0 0 , 0 0 0 2, 0 6 0 , 0 0 0 Ot h e r T a x e s 1, 4 2 5 , 9 8 4 2, 1 1 9 , 2 6 1 1, 5 9 2 , 4 2 7 1, 5 6 4 , 7 7 5 1, 6 9 0 , 2 2 0 Li c e n s e s & P e r m i t s 4, 1 9 1 , 9 0 2 4, 9 1 7 , 4 6 1 4, 2 4 5 , 9 3 3 3, 6 9 4 , 1 1 6 3, 7 4 8 , 6 1 1 In t e r g o v e r n m e n t a l 2, 5 5 0 , 7 6 2 3, 0 2 4 , 0 1 1 2, 0 5 9 , 1 5 0 1, 5 3 6 , 0 2 4 2, 5 7 8 , 2 5 7 To w n S e r v i c e s 3, 1 8 9 , 4 5 8 3, 1 3 5 , 1 4 3 3, 1 6 4 , 6 0 7 2, 7 6 0 , 2 7 0 2, 9 1 2 , 2 4 8 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 , 2 1 9 4, 1 0 6 , 9 5 5 4, 5 2 1 , 6 1 0 4, 1 0 0 , 5 9 1 4, 7 9 7 , 8 2 5 Fi n e s & F o r f e i t u r e s 77 2 , 6 4 7 84 2 , 4 7 0 85 8 , 9 2 9 73 2 , 6 6 2 69 5 , 4 0 0 In t e r e s t 78 6 , 7 2 6 43 0 , 4 1 5 70 5 , 5 6 9 30 7 , 2 9 9 32 3 , 4 9 9 Ot h e r S o u r c e s 4, 9 5 0 , 1 5 4 4, 4 7 4 , 2 8 8 2, 7 5 5 , 9 5 5 2, 2 1 3 , 6 2 7 1, 6 8 2 , 7 4 2 CI P P r o j R e i m b u r s e m e n t 5, 8 2 7 , 5 8 4 5, 8 2 0 , 5 8 6 5, 7 9 3 , 4 8 0 5, 7 7 3 , 4 2 9 5, 7 4 9 , 4 4 8 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 3, 4 0 8 , 6 3 8 9, 3 5 3 , 9 3 3 3, 0 7 0 , 5 8 5 7, 6 3 2 , 8 8 1 3, 0 6 2 , 0 6 3 TO T A L R E V E N U E S 54 , 5 2 8 , 6 5 6 $ 63 , 4 7 0 , 9 7 2 $ 54 , 2 3 4 , 9 4 8 $ 57 , 6 4 0 , 6 8 6 $ 54 , 2 1 2 , 3 4 1 $ 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 26 , 1 6 4 , 1 1 2 $ 21 , 9 7 2 , 3 9 8 $ 22 , 7 6 6 , 4 4 1 $ 22 , 8 3 9 , 0 8 8 $ 27 , 0 0 5 , 9 2 1 $ Op e r a t i n g E x p e n d i t u r e s 12 , 3 8 4 , 0 6 0 11 , 9 5 9 , 6 1 5 12 , 2 8 4 , 2 6 4 12 , 5 2 2 , 2 0 9 12 , 7 7 0 , 1 1 4 Gr a n t s & A w a r d s 15 1 , 0 1 0 19 7 , 0 7 4 19 4 , 1 5 5 20 4 , 8 0 0 20 9 , 8 0 0 Fi x e d A s s e t s 39 9 , 4 6 5 35 5 , 7 9 9 95 8 , 9 9 1 48 3 , 4 1 4 87 7 , 1 6 1 In t e r e s t 1, 0 9 5 , 3 6 6 99 0 , 0 0 0 1, 0 2 5 , 0 0 0 1, 0 6 5 , 0 0 0 1, 1 0 5 , 0 0 0 In t e r n a l S e r v i c e C h a r g e s 3, 3 8 4 , 2 1 4 3, 3 3 0 , 7 9 2 3, 5 4 6 , 1 8 6 3, 5 7 5 , 2 8 6 3, 9 8 8 , 2 7 8 Ca p i t a l P r o j e c t s 3, 5 8 0 , 5 0 4 3, 6 1 8 , 6 0 7 2, 2 9 3 , 2 4 7 5, 3 3 1 , 7 7 6 4, 0 1 5 , 5 0 8 Ca p i t a l A c q u i s i t i o n s 12 5 , 9 0 0 21 , 0 3 2 - - - De b t S e r v i c e 4, 8 5 1 , 7 3 4 4, 7 9 4 , 1 6 7 4, 7 4 2 , 1 9 4 4, 7 0 4 , 9 0 9 4, 6 3 9 , 2 1 8 Tr a n s f e r s O u t 3, 4 0 8 , 6 3 8 9, 3 5 3 , 9 3 2 3, 0 7 0 , 5 8 5 7, 6 3 2 , 8 8 1 3, 0 6 2 , 0 6 3 TO T A L E X P E N D I T U R E S 55 , 5 4 5 , 0 0 3 $ 56 , 5 9 3 , 4 1 6 $ 50 , 8 8 1 , 0 6 3 $ 58 , 3 5 9 , 3 6 3 $ 57 , 6 7 3 , 0 6 3 $ Ne t I n c r e a s e ( D e c r e a s e ) (1 , 0 1 6 , 3 4 7 ) 6, 8 7 7 , 5 5 6 3, 3 5 3 , 8 8 5 (7 1 8 , 6 7 7 ) (3 , 4 6 0 , 7 2 2 ) Be g i n n i n g F u n d B a l a n c e 52 , 3 8 6 , 6 7 6 51 , 3 7 0 , 3 2 9 58 , 2 4 7 , 8 8 5 61 , 6 0 1 , 7 7 0 60 , 8 8 3 , 0 9 3 En d 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 5 $ 61 , 6 0 1 , 7 7 0 $ 60 , 8 8 3 , 0 9 3 $ 57 , 4 2 2 , 3 7 1 $ 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 . TO T A L A L L F U N D S C - 10 TOTAL TOWN REVENUES BY FUND (Includes Transfers In) 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Change Fund Fund Name Actuals Actuals Actuals Adopted Estimated Proposed from PY General Fund 111 General Fund 38,686,493$ 40,934,994$ 41,669,525$ 37,829,433$ 39,448,186$ 39,324,303$ 4.0% Special Revenue Funds 221 Solid Waste Fund - - - - - - 0.0% 211 Housing Conservation Program 20,006 6,823 67 - - - 0.0% 212 Community Dev Block Grant 19,360 176,705 6,011 70,000 - - -100.0% 222 Urban Run-Off Source Fund 328,648 428,868 418,813 367,464 367,464 584,394 59.0% 231 Blackwell Assessment District 3,310 3,113 3,233 3,210 3,210 3,210 0.0% 232 Kennedy Assessment District 11,132 10,089 346 10,337 10,337 10,322 -0.1% 233 Gemini Assessment District 4,595 3,936 4,850 4,187 4,187 4,647 11.0% 234 Santa Rosa Assessment District 5,485 4,305 5,000 4,800 4,800 4,800 0.0% 235 Vasona Assessment District 10,656 9,570 10,054 9,885 9,885 9,885 0.0% 236 Hillbrook Assessment District 6,223 5,887 6,041 5,997 5,997 5,997 0.0% Internal Service Funds 611 ABAG Self Insurance 497,185 985,397 492,341 535,838 - 553,953 3.4% 612 Worker's Comp Self Insurance 835,409 1,004,574 963,155 934,118 868,874 696,547 -25.4% 621 Management Information Systems 1,038,393 1,089,254 1,114,384 1,129,006 1,138,993 1,180,879 4.6% 622 Office Stores Fund 98,057 147,983 117,734 95,000 118,000 118,000 24.2% 631 Equipment Replacement 506,979 536,018 501,093 381,322 392,322 624,279 63.7% 632 Facilities Maintenance 528,887 570,003 571,670 573,865 577,676 586,654 2.2% 633 Vehicle Maintenance 1,320,023 1,337,633 1,281,462 1,381,875 1,410,606 1,436,089 3.9% Trust & Agency Funds 710 Friends of the Library - - - - - - 0.0% 711 Library Trust 36,797 37,357 71,720 67,400 67,550 74,050 9.9% 712 Library History Project 97 (2) 1,380 - - - 0.0% 713 Ness Trust Bequest 3,741 (851) 845 500 850 850 70.0% 714 Betty McClendon Trust 1,867 (309) 705 750 705 705 -6.0% 716 Barbara J Cassin Trust 7,382 (1,125) 2,764 500 2,760 2,760 452.0% Capital Projects Funds 411 GFAR 4,182,948 9,946,793 1,282,823 11,347,982 8,423,498 3,824,319 -66.3% 421 Grant Funded CIP Projects 507,181 870,911 171,485 645,000 360 250,000 -61.2% 461 Storm Drain #1 144,872 218,895 51,538 49,000 48,610 48,850 -0.3% 462 Storm Drain #2 74,709 37,833 72,598 53,380 49,750 50,000 -6.3% 463 Storm Drain #3 473 5,172 46,944 1,500 2,490 2,390 59.3% 471 Traffic Mitigation 506,005 90,612 609,962 422,869 155,283 30,000 -92.9% 472 Construction Tax-Undergrounding 168,242 126,561 67,150 50,000 44,410 44,280 -11.4% 481 Gas Tax 946,246 884,525 682,594 631,843 612,544 882,457 39.7% Successor Agency to the Los Gatos RDA Funds 942 SA - Recognized Obligation Retiremen 4,024,552 3,999,083 3,914,315 3,872,939 3,871,339 3,857,721 -0.4% 943 SA- Trust Fund - - - - - - 0.0% TOTAL Fund Rev & Transfers In 54,528,656$ 63,470,972$ 54,234,948$ 60,480,000$ 57,640,686$ 54,212,341$ -10.4% C - 11 TOTAL TOWN REVENUES BY FUND 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Actuals Actuals Actuals Adopted Estimated Proposed Total General Fund 38,686,493$ 40,934,994$ 41,669,525$ 37,829,433$ 39,448,186$ 39,324,303$ 72.5% Special Revenue Funds 409,415 649,296 454,415 475,880 405,880 623,255 1.1% Internal Service Funds 4,824,933 5,670,862 5,041,839 5,031,024 4,506,471 5,196,401 9.6% Trust & Agency Funds 52,587 35,435 169,760 69,150 71,865 78,365 0.1% Capital Project Funds 6,530,676 12,181,302 2,985,094 13,201,574 9,336,945 5,132,296 9.5% Successor Agency Funds 4,024,552 3,999,083 3,914,315 3,872,939 3,871,339 3,857,721 7.1% Total Rev & Transfers In 54,528,656$ 63,470,972$ 54,234,948$ 60,480,000$ 57,640,686$ 54,212,341$ 100.0% FY 2017/18 Revenues By Fund C - 12 TOTAL TOWN EXPENDITURES BY FUND (Includes Transfers Out) 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Change Fund Fund Name Actuals Actuals Actuals Adopted Estimated Proposed from PY General Fund 111 General Fund 41,484,431$ 42,010,746$ 36,129,459$ 46,959,225$ 42,645,523$ 42,241,001$ -10.0% Special Revenue Funds 211 Housing Conservation Program - - - - - - 0.0% 212 Community Dev Block Grant 19,360 176,705 - 70,000 - - -100.0% 222 Urban Run-Off Source Fund 322,814 411,861 452,726 533,935 492,811 564,910 5.8% 231 Blackwell Assessment District 2,411 1,987 1,650 9,852 1,950 9,852 0.0% 232 Kennedy Assessment District 4,557 3,348 8,400 8,634 8,813 38,634 347.5% 233 Gemini Assessment District 1,851 6,767 1,406 11,701 1,701 11,701 0.0% 234 Santa Rosa Assessment District 3,837 3,107 2,955 13,255 3,255 13,255 0.0% 235 Vasona Assessment District 5,306 4,504 7,018 18,644 7,827 18,644 0.0% 236 Hillbrook Assessment District 4,026 6,238 2,969 17,384 2,960 17,960 3.3% Internal Service Funds 611 ABAG Self Insurance 792,660 474,795 656,053 808,361 590,796 816,952 1.1% 612 Worker's Comp Self Insurance 1,505,626 1,066,415 1,264,688 1,258,810 1,041,564 1,258,466 0.0% 621 Management Information Systems 872,826 901,293 1,059,092 1,351,188 1,174,365 1,424,950 5.5% 622 Office Stores Fund 107,977 109,320 122,562 134,500 134,500 134,500 0.0% 631 Equipment Replacement 337,867 306,698 2,028,117 336,369 788,598 658,688 95.8% 632 Facilities Maintenance 389,820 987,999 484,662 573,866 503,013 583,491 1.7% 633 Vehicle Maintenance 1,255,868 2,173,467 1,351,125 1,381,875 1,369,414 1,402,052 1.5% Trust & Agency Funds 711 Library Trust 18,812 30,018 64,896 67,000 77,000 72,500 8.2% 712 Library History Project 2,233 - - - - - 0.0% 713 Ness Trust Bequest 5,638 15,978 131,694 - - - 0.0% 714 Betty McClendon Trust 4,716 7,829 - - - - 0.0% 716 Barbara J Cassin Trust 80,829 33,918 - - - - 0.0% 721 Parking District #88 140,366 - 179,204 - - - 0.0% Capital Projects Funds 411 GFAR 2,493,750 2,717,504 2,025,650 13,567,691 3,922,778 3,211,124 -76.3% 421 Grant Funded CIP Projects 153,935 952,169 181,443 645,000 - 250,000 -61.2% 461 Storm Drain #1 - - - - - - 0.0% 462 Storm Drain #2 - - 95,820 - - - 0.0% 463 Storm Drain #3 - - - - 21,500 150,000 0.0% 471 Traffic Mitigation 453,811 83,897 587,695 402,869 155,263 10,000 -97.5% 472 Construction Tax-Undergrounding - - - 42,000 - 42,000 0.0% 481 Gas Tax 818,290 106,000 107,309 656,000 1,552,615 886,000 35.1% Successor Agency to the Los Gatos RDA Funds 942 SA- Trust Fund 4,261,386 4,000,853 3,934,470 3,871,255 3,863,117 3,856,383 TOTAL Fund Exp & Transfers Out 55,545,003$ 56,593,416$ 50,881,063$ 72,739,414$ 58,359,363$ 57,673,063$ -20.7% C - 13 TOTAL TOWN EXPENDITURES BY FUND General Fund 73.2% Special Revenue Funds 1.2% Internal Service Funds 10.9% Trust & Agency Funds 0.1% Capital Project Funds 7.9% Successor Agency Funds 6.7% 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % Actuals Actuals Actuals Adopted Estimated Proposed of Total General Fund 41,484,431$ 42,010,746$ 36,129,459$ 46,959,225$ 42,645,523$ 42,241,001$ 73.2% Special Revenue Funds 364,162 614,517 477,124 683,405 519,317 674,956 1.2% Internal Service Funds 5,262,644 6,019,987 6,966,299 5,844,969 5,602,250 6,279,099 10.9% Trust & Agency Funds 252,594 87,743 375,794 67,000 77,000 72,500 0.1% Capital Project Funds 3,919,786 3,859,570 2,997,917 15,313,560 5,652,156 4,549,124 7.9% Successor Agency Funds 4,261,386 4,000,853 3,934,470 3,871,255 3,863,117 3,856,383 6.7% Total Exp & Transfers Out 55,545,003$ 56,593,416$ 50,881,063$ 72,739,414$ 58,359,363$ 57,673,063$ 100.0% FY 2017/18 Expenditures by Fund C - 14 TOTAL TOWN REVENUES BY CATEGORY FY 2017/18 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% 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 2017/18 budget reflects $8.0 million in sales tax revenue, or a 2.4% 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 2017/18 Licenses and Permits reflect a 6% increase as a result of increased permitting activity. Intergovernmental Revenues – Decreases in intergovernmental revenues are due to changes in available grant funding. Transient Occupancy Tax– Transient Occupancy Tax (TOT) is expected to increase by 8.4% from FY 2016/17 budgeted amount of $1.9 million due to the continued rising trend in travel and tourism and the increased TOT (from 10% to 12%) rate that was approved by voter at the November 8, 2016 election. Other Sources – This revenue reflects lease reimbursement revenue received from the Successor Agency to the Los Gatos Redevelopment Agency for 2002 and 2010 Certificates of Participation (COPs) debt service payments for the bond issues. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Revenues Actuals Actuals Actuals Adopted Estimated Proposed Total Property Tax 9,055,004$ 10,113,303$ 10,779,448$ 10,458,633$ 11,051,936$ 11,383,073$ 21.0% VLF Backfill Property Tax 2,657,404 2,818,316 2,984,023 3,013,840 3,237,000 3,269,370 6.0% Sales & Use Tax 8,029,571 8,202,678 7,501,175 8,164,403 8,814,956 7,972,195 14.7% Franchise Fees 2,063,756 2,215,430 2,258,892 2,191,120 2,221,120 2,287,390 4.2% Transient Occupancy Tax 1,512,846 1,896,721 1,943,166 1,900,000 2,000,000 2,060,000 3.8% Miscellaneous Other Taxes 1,425,984 2,119,260 1,592,427 1,414,775 1,564,775 1,690,220 3.1% Licenses & Permits 4,191,902 4,917,461 4,245,933 3,522,863 3,694,116 3,748,611 6.9% Intergovernmental Revenues 2,550,762 3,024,011 2,059,150 2,174,690 1,536,024 2,578,257 4.8% Town Services 3,189,458 3,135,143 3,164,608 2,801,754 2,760,270 2,912,248 5.4% Internal Service Reimbursements 4,106,219 4,106,955 4,521,610 4,678,685 4,100,591 4,797,825 8.9% Fines & Forfeitures 772,647 842,470 858,929 650,900 732,662 695,400 1.3% Interest 786,726 430,414 705,570 388,014 307,299 323,499 0.6% Miscellaneous Other Sources 10,777,739 10,294,878 8,549,432 8,826,912 7,987,047 7,432,190 13.7% 51,120,018$ 54,117,040$ 51,164,363$ 50,186,589$ 50,007,796$ 51,150,278$ Plus Transfers In:3,408,638 9,353,932 3,070,585 10,293,401 7,632,881 3,062,063 5.6% Total Revenues & Other Sources 54,528,656$ 63,470,972$ 54,234,948$ 60,479,990$ 57,640,677$ 54,212,341$ 100% Total Revenues C - 15 TOTAL TOWN EXPENDITURES BY CATEGORY FY 2017/18 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, total expenditures reflect a 12.6 % decrease for FY 2017/18 compared to the prior year adopted budget. Expenditures of note include: Salaries and Benefits – Salary and benefit expenditures reflect a 7.7% increase largely due to negotiated salary increases and increased benefit costs. Staffing modifications include eliminating certain vacant positions and reclassifying them to better align with service delivery within the existing budget, including the 0.5 FTE Events and Marketing Specialist position in the Town Manager Program. The 1.0 FTE Transportation & Mobility Manager position within the Parks and Public Works Department and the 0.125 FTE increase for the Economic Vitality Manager are permanent additions to the budget. Staff also proposes one-time temporary hours within Police, Parks and Public Works, and Library Departments. In addition, a one-time 0.5 FTE Administrative Analyst position is proposed for FY 2017/18 within the Human Resources Department. The FY 2017/18 operating expenditures also include post-retirement health benefit expenditures. 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 – Internal service charges have increased by 9.1% largely due to changes in salaries, operating costs, cost allocation, and equipment replacement schedules. 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. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Actuals Actuals Actuals Adopted Estimated Proposed Total Salaries and Benefits 26,164,113$ 21,972,399$ 22,766,441$ 25,064,162$ 22,839,088$ 27,005,920$ 46.8% Operating Expenditures 14,868,013 14,618,759 15,342,699 15,381,680 15,694,314 15,928,898 27.6% Grants 151,010 197,074 194,155 204,800 204,800 209,800 0.4% Fixed Assets 399,465 355,799 958,991 528,065 483,414 877,161 1.5% Interest 1,095,366 990,000 1,025,000 1,065,000 1,065,000 1,105,000 1.9% Internal Service Charges 3,384,215 3,330,792 3,546,185 3,654,558 3,575,286 3,988,278 6.9% Capital Projects 3,706,400 3,639,640 2,293,247 14,997,752 5,331,777 4,015,509 7.0% Successor Agency Pass Thru 1,387,205 1,196,966 786,362 691,694 674,500 670,694 1.2% Debt Services 980,578 938,055 897,398 858,303 858,303 809,740 1.4% 52,136,365$ 47,239,484$ 47,810,478$ 62,446,014$ 50,726,482$ 54,611,000$ Transfers Out 3,408,638 9,353,932 3,070,585 10,293,401 7,632,881 3,062,063 5.3% Total Uses of Funds 55,545,003$ 56,593,416$ 50,881,063$ 72,739,415$ 58,359,363$ 57,673,063$ 100% Total Expenditures Expenditures C - 16 GENERAL FUND REVENUES BY DEPARTMENT FY 2017/18 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. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Departments Actuals Actuals Actuals Adopted Estimated Proposed Total Town Council 4,251$ 19,736$ 119$ -$ -$ -$ 0.0% Non-Departmental 24,571,629 26,064,222 25,815,403 26,483,091 27,790,314 27,220,552 73.9% Administrative Services*1,763,942 2,211,587 2,107,339 1,639,387 1,722,193 1,854,444 5.0% Community Development 5,166,693 5,038,975 4,359,149 3,280,665 3,477,268 3,366,471 9.1% Police Department 3,230,589 3,529,909 3,356,188 2,421,015 2,527,827 2,532,972 6.9% Parks & Public Works 1,618,436 1,773,515 1,579,102 1,631,584 1,560,893 1,782,789 4.8% Library Services 66,437 57,184 93,420 86,960 82,960 72,500 0.2% Total General Fund Revenues 36,421,977$ 38,695,128$ 37,310,720$ 35,542,702$ 37,161,455$ 36,829,728$ 100% Town Debt Payments:1,935,578$ 1,928,056$ 1,922,398$ 1,923,303$ 1,923,303$ 1,914,739$ Transfers In:328,938 311,810 2,436,405 363,428 363,428 579,836 Net Operating Revenues 38,686,493$ 40,934,994$ 41,669,523$ 37,829,433$ 39,448,186$ 39,324,303$ C - 17 GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2016/17 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. In FY 2009/10 the Town Treasurer was incorporated into Administrative Services Department. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Departments Actuals Actuals Actuals Adopted Estimated Proposed Total Police Department 13,673,270$ 13,862,029$ 13,844,684$ 13,920,048$ 13,098,948$ 15,455,231$ 40.8% Parks & Public Works 5,580,769 5,690,355 6,226,195 6,452,425 6,607,741 7,117,325 18.8% Non-Departmental 7,817,184 3,287,385 3,839,490 4,108,723 4,611,261 3,992,490 10.5% Community Development 4,320,634 4,233,465 4,032,333 4,143,098 3,573,161 4,376,673 11.6% Administrative Services*2,707,809 2,884,889 2,883,289 3,310,379 2,782,558 3,562,823 9.4% Library Services 2,131,438 2,268,844 2,332,268 2,691,849 2,431,474 2,781,018 7.3% Town Council 188,111 208,491 171,530 202,421 190,720 205,092 0.5% Town Attorney 238,253 260,740 296,258 347,006 462,585 353,383 0.9% Total General Fund Exp 36,657,468$ 32,696,198$ 33,626,047$ 35,175,949$ 33,758,448$ 37,844,035$ 100% Town Debt Payments:1,935,578$ 1,928,056$ 1,922,398$ 1,923,303$ 1,923,303$ 1,914,739$ Transfers Out:2,891,384 7,386,491 581,014 9,859,973 6,963,773 2,482,227 Net Operating Expenditures 41,484,430$ 42,010,745$ 36,129,459$ 46,959,225$ 42,645,524$ 42,241,001$ C - 18 GENERAL FUND REVENUES BY CATEGORY FY 2017/18 General Fund revenues and fund transfers are estimated to increase by 4% from the FY 2016/17 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 2017/18 budget reflects $7.9 million in sales tax revenue, or a 2.4% 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 2016/17 amount by 9% totaling $11.4 million, as homes sales continue to rise with the positive economy and low interest rates. Property Tax budget projections are based on valuations projected by the Santa Clara County Assessor’s Office, given increased home sales, coupled with anticipated adjustments in property tax distribution due to the dissolution of California redevelopment agencies. The Town receives 9.3 cents of each property tax dollar paid by property owners. The remaining 90.7 cents of each dollar is distributed to several other taxing jurisdictions, including local schools, community college districts, the County of Santa Clara, Santa Clara County Central Fire Protection District, and other special districts that serve the community. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Revenue Category Actuals Actuals Actuals Adopted Estimated Proposed Total Sales & Use Tax 8,029,571$ 8,202,678$ 7,501,175$ 8,164,403$ 8,814,956$ 7,972,195$ 20.3% Property Tax 9,054,908 10,113,287 10,779,434 10,458,633 11,051,936 11,383,073 28.9% VLF Backfill Property Tax 2,657,404 2,818,316 2,984,023 3,013,840 3,237,000 3,269,370 8.3% Franchise Fees 2,063,756 2,215,430 2,258,892 2,191,120 2,221,120 2,287,390 5.8% Transient Occupancy Tax 1,512,846 1,896,721 1,943,166 1,900,000 2,000,000 2,060,000 5.2% Other Taxes 1,155,802 1,809,620 1,475,425 1,307,000 1,457,000 1,582,000 4.0% Licenses & Permits 3,235,122 3,687,393 3,552,935 2,946,583 3,097,407 2,941,359 7.5% Intergovernmental 817,699 1,004,661 984,507 717,684 720,270 666,375 1.7% Town Services 2,684,126 2,643,276 2,677,944 2,370,070 2,321,086 2,464,177 6.3% Fines & Forfeitures 772,647 842,470 858,929 650,900 732,662 695,400 1.8% Interest 625,298 430,476 *620,895 331,193 270,723 270,723 0.7% Other Sources 5,748,376 4,958,856 3,595,793 3,414,579 3,160,598 3,152,405 8.0% Total Revenues 38,357,555$ 40,623,184$ 39,233,118$ 37,466,005$ 39,084,758$ 38,744,467$ Transfers In:328,938$ 311,810$ 2,436,405$ 363,428$ 363,428$ 579,836$ 1.5% Total Revenues & Transfers In 38,686,493$ 40,934,994$ 41,669,523$ 37,829,433$ 39,448,186$ 39,324,303$ 100% C - 19 GENERAL FUND REVENUES BY CATEGORY Town Services – Charges for Town Services remained flat as recent large scale development projects are winding down. Licenses & Permits – Licenses and Permits remained flat based on current building activities. Intergovernmental Revenues – Intergovernmental revenues reflect a 7.1% 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 8.4% from FY 2016/17 budgeted amount of $1.9 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 increase by 7.0%. Transfers In – Compared to the prior fiscal year, transfers in have increased by $215,628 from prior year. Other Sources – Other sources reflects a 7.7% 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 2017/18 General Fund Operating Budget of $39,785,775 (net of transfers out) represents a 7.2% increase compared to the net FY 2016/17 adopted operating expenditures budget of $37,099,294. Salaries & Benefits – The delivery of Town services is highly dependent on labor which comprises 60.3% of budgeted General Fund expenditures for FY 2017/18. Salaries and benefits continue to be the largest portion of the Town costs and continue to rise. The FY 2017/18 budget reflects an 8.0% increase in salaries and benefits attributed to negotiated salary increases, and increased CalPERS and benefit rates. Operating Expenditures – The FY 2016/17 operating expenditures represents an 5.8% increase when compared to the FY 2016/17 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, and educational services. FY 2017/18 grants and awards reflect a 2.4% 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 2017/18 budget reflects a 7.2% increase in the Internal Service Charges reflecting general increased cost for providing these services and negative claim experiences. 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 transfer to the Capital Projects Fund is $2,482,227 for FY 2017/18. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Expenditure Category Actuals Actuals Actuals Adopted Estimated Proposed Total Salaries & Benefits 25,036,702$ 20,658,173$ 21,342,278$ 23,549,693$ 21,380,673$ 25,426,213$ 60.3% Operating Expenditures 8,029,970 8,440,137 8,137,857 7,775,162 8,605,953 8,228,709 19.5% Fixed Assets 62,756 75,442 411,820 - - - 0.0% Grants & Awards 151,010 197,074 194,155 204,800 204,800 209,800 0.5% Debt Service 1,935,578 1,928,056 1,922,398 1,923,303 1,923,303 1,914,739 4.5% Internal Service Charges 3,377,031 3,325,373 3,539,936 3,646,294 3,567,022 3,979,314 9.3% Total Expenditures 38,593,047$ 34,624,255$ 35,548,444$ 37,099,252$ 35,681,751$ 39,758,775$ Transfers Out 2,891,384$ 7,386,491$ 581,014$ 9,859,973$ 6,963,773$ 2,482,227$ 5.9% Total Exp & Transfers Out 41,484,431$ 42,010,746$ 36,129,458$ 46,959,225$ 42,645,524$ 42,241,002$ 100.0% C - 21 GENERAL FUND TAX REVENUES CITIES OF SANTA CLARA COUNTY – TAX REVENUES PER CAPITA (LATEST DATA AVAILABLE AT THE TIME OF PUBLICATION) FY 2015/16 Budgeted 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 41,871 12,006,000$ 287$ 14,850,000$ 355$ 4,300,000$ 103$ 663,000$ 16$ Cupertino 59,777 16,055,000 269 20,360,000 341 5,072,000 85 847,070 14 Gilroy 52,264 6,926,034 133 17,339,818 332 1,361,844 26 615,865 12 Los Altos 29,884 17,718,514 593 2,993,834 100 2,345,600 78 475,000 16 Los Altos Hills 8,330 4,672,500 561 75,200 9 - - 211,000 25 LOS GATOS 30,443 11,961,287 393 8,337,029 274 1,500,000 49 1,250,000 41 Milpitas 69,903 24,680,000 353 21,490,000 307 8,018,000 115 349,000 5 Monte Sereno 3,439 1,268,967 369 10,000 3 - - 38,000 11 Morgan Hill 41,079 8,770,418 214 8,753,849 213 1,991,850 48 186,783 5 Mountain View 76,582 35,932,400 469 19,379,690 253 6,486,000 85 274,000 4 Palo Alto 66,682 35,067,000 526 27,630,000 414 18,791,000 282 - - San Jose 1,002,274 253,210,000 253 190,260,000 190 14,700,000 15 44,425,000 44 Santa Clara 120,942 37,550,000 310 52,690,000 436 17,300,000 143 953,700 8 Saratoga 30,798 10,475,350 340 1,060,000 34 310,000 10 575,000 19 Sunnyvale 146,724 56,487,757 385 31,947,169 218 11,397,216 78 1,734,000 12 Average 118,733 35,518,748$ 299$ 27,811,773$ 234$ 6,238,234$ 53$ 3,506,495$ 30$ Property Tax Sales Tax Occupancy Tax Business License Tax C - 22 GENERAL FUND TAX REVENUES BUDGET WITH 10 YEAR HISTORY Sum of Key Change from Revenues Prior Year 2007/08 Actuals 7,417,030$ 9,345,432$ 1,245,078$ 1,138,057$ 19,145,597$ 3.1% 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 Estimated 11,051,936$ 8,814,956$ 2,000,000$ 1,450,000$ 23,316,892$ 7.5% 2017/18 Proposed 11,383,073$ 7,972,195$ 2,060,000$ 1,575,000$ 22,990,268$ (1.4%) Business License Tax Occupancy Tax Sales Tax Property TaxFiscal Year C - 23 GENERAL FUND ESTIMATED FUND BALANCE ACTIVITY Fund Balance Activity includes: • FY 2017/18 Budgeted revenue and expenditure appropriations, and transfers to and from the General Fund. • FY 2016/17 authorized carryovers reflect operating appropriations that were brought forward as a funding source. The actual carryover amount will be determined at FY 2016/17 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 California Public Employees Retirement System (CalPERS)/Other Post Employment Benefits (OPEB) Reserve Account. In the same time Council revised the General Fund Reserve Policy to provide for a maximum of $300,000 in General Fund Year End Savings upon year close to be deposited in the CalPERS Reserve Account or used for lump sum pay down as authorized by Town Council. • Undesignated Fund Balance is year-end fund balance not previously identified for a specific purpose; therefore, it can be reprogrammed as appropriations or designated reserves by Council. Town policy designates all year-end fund balance to the Budget Stabilization, Capital/Special Project, and CalPERS/OPEB Reserves eliminating undesignated fund balance. However, year-end fund balance will be distributed to the Capital Improvement/Special Projects and to the CalPERS/OPEB Reserves as the Catastrophic and Budget Stabilization Reserves are fully funded. Estimated Revenues Expenditures Fund Balance Estimated July 1, 2017 Sources June 30, 2018 Balance (Uses)Balance Unreserved Fund Balances Undesignated Reserves -$ -$ -$ -$ -$ Available to be Appropriated 4,766,437 39,324,303 42,241,001 2,927,822 4,777,561 Reserved Fund Balances Reserve for Encumbrances - - - - - Reserve for Long Term Notes - - - - - Actuarial - - - - - Committed to: Budget Stabilization Reserve 4,637,406 - - 332,441 4,969,847 Catastrophic Reserves 4,637,406 - - 332,441 4,969,847 CalPERS/OPEB Reserve 1,284,402 - - 1,000,000 2,284,402 Almond Grove Reserve 2,896,200 - - (2,896,200) - Assigned to:- Open Space Reserve 562,000 - - - 562,000 Sustainability 140,553 - - - 140,553 Strategy Reserve 2,600,000 - - (2,000,000) 600,000 Capital / Special Projects 2,822,405 - - 303,496 3,125,901 Authorized Carryforwards 99,284 - - - 99,284 24,446,093$ 39,324,303$ 42,241,001$ -$ 21,529,395$ Use of / Addition to GF Reserves: Total Use of and Addition To Reserves C - 24 SCHEDULE OF INTERFUND TRANSFERS FISCAL YEAR 2016/17 & 2017/18 Estimated Proposed Budget 2015/16 2015/16 2016/17 2016/17 Fund Description Transfers In Transfers Out Transfers In Transfers Out General Funds General Fund 363,428$ 6,963,773$ 579,836$ 2,482,227$ 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 10,000 - - - Office Stores Fund - - - - Equipment Fund - 295,680 - - Vehicle Maintenance Fund - - - - Facilities Maintenance Fund - - - - Trust & Agency Funds Barbara J. Cassin Trust - - - - History Project Trust Fund - - - - Library Trust Fund - 45,000 - 35,000 Capital Project Funds GFAR 7,259,453 199,808 2,482,227 417,616 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 - 7,700 - 6,300 Total Transfers 7,632,881$ 7,632,881$ 3,062,063$ 3,062,063$ C - 25 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2017/18 7/1/17 Plus Less 6/30/18 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 4,766,437$ 38,744,467$ 579,836$ 39,758,774$ 2,482,227$ 2,927,822$ 4,777,561$ Reserved Fund Balances Reserve for Encumbrances - - - - - - - Reserve for Long Term Notes - - - - - - - Advance to RDA - - - - - - - Actuarial - - - - - - - Committed to: Budget Stabilization Reserve 4,637,406 - - - - 332,441 4,969,847 Catastrophic Reserves 4,637,406 - - - - 332,441 4,969,847 CalPERS/OPEB Reserve 1,284,402 - - - - 1,000,000 2,284,402 Almond Grove Reserve 2,896,200 - - - - (2,896,200) - Assigned to:- - - - - - Open Space Reserve 562,000 - - - - - 562,000 Sustainability 140,553 - - - - - 140,553 Strategy Reserve 2,600,000 - - - - (2,000,000) 600,000 Capital / Special Projects 2,822,405 - - - - 303,496 3,125,901 Authorized Carryforwards 99,284 - - - - - 99,284 Post Retirement Medical - - - - - - - Vasona Land Sale - - - - - - - Productivity Contingency - Total General Fund Reserves 24,446,093$ 38,744,467$ 579,836$ 39,758,774$ 2,482,227$ -$ 21,529,395$ SPECIAL REVENUE FUNDS Solid Waste Fund -$ -$ -$ -$ -$ -$ -$ Housing Conservation Program 74,586 - - - - - 74,586 Community Dev Block Grant (4,576) - - - - - (4,576) Urban Run-Off Source Fund (16,317) 584,394 - 564,910 - - 3,167 Blackwell Assessment District 11,491 3,210 - 9,392 460 - 4,849 Kennedy Assessment District 41,621 10,322 - 37,124 1,510 - 13,309 Gemini Assessment District 22,878 4,647 - 11,091 610 - 15,824 Santa Rosa Assessment District 61,673 4,800 - 12,595 660 - 53,218 Vasona Assessment District 44,654 9,885 - 17,214 1,430 - 35,895 Hillbrook Assessment District 14,924 5,997 - 17,710 250 - 2,961 Total Special Revenue Funds Reserves 250,934$ 623,255$ -$ 670,036$ 4,920$ -$ 199,233$ Fiscal Year 2017/118 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 2017/18 Budgeted revenue and expenditure appropriations, and transfers to and from the General Fund. • FY 2016/17 authorized carryovers reflect operating appropriations that were brought forward as a funding source. The actual carryover amount will be determined at FY 2016/17 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 California Public Employees Retirement System (CalPERS)/Other Post Employment Benefits (OPEB) Reserve Account. In the same time Council revised the General Fund Reserve Policy to provide for a maximum of $300,000 in General Fund Year End Savings upon year close to be deposited in the CalPERS Reserve Account or used for lump sum pay down as authorized by Town Council. • Undesignated Fund Balance is year-end fund balance not previously identified for a specific purpose; therefore, it can be reprogrammed as appropriations or designated reserves by Council. Town policy designates all year-end fund balance to the Budget Stabilization, Capital/Special Project, and CalPERS/OPEB Reserves eliminating undesignated fund balance. However, year-end fund balance will be distributed to the Capital Improvement/Special Projects and to the CalPERS/OPEB Reserves as the Catastrophic and Budget Stabilization Reserves are fully funded. C - 26 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2017/18 7/1/17 Plus Less 6/30/18 Estimated Revenues &Transfers Expenditures &Transfers Use of Estimated Fund Balance Carryforwards In Carryforwards Out Reserves Fund Balance INTERNAL SERVICE FUNDS ABAG Self Insurance 812,653$ 553,953$ -$ 816,952$ -$ -$ 549,654$ Worker's Comp Self Insurance 1,040,633 696,547 - 1,258,466 - - 478,714 Management Information Systems 2,853,080 1,180,879 - 1,424,950 - - 2,609,009 Office Stores Fund 166,627 118,000 - 134,500 - - 150,127 Equipment Replacement 1,751,729 624,279 - 658,688 - - 1,717,320 Vehicle Maintenance 484,535 586,654 - 583,491 - - 487,698 Facilities Maintenance 455,559 1,436,089 - 1,402,052 - - 489,596 Total Internal Service Funds Reserves 7,564,816$ 5,196,401$ -$ 6,279,099$ -$ -$ 6,482,118$ TRUST & AGENCY Friends of the Library -$ -$ -$ -$ -$ -$ -$ Library Trust 36,695 74,050 - 37,500 35,000 - 38,245 Library History Project - - - - - - - Ness Trust Bequest 41,593 850 - - - - 42,443 Betty McClendon Trust 89,367 705 - - - - 90,072 Barbara J Cassin Trust 350,282 2,760 - - - - 353,042 Total Trust & Agency Funds Reserves 517,937$ 78,365$ -$ 37,500$ 35,000$ -$ 523,802$ CAPITAL PROJECTS FUNDS GFAR 17,829,312$ 1,342,092$ 2,482,227$ 2,793,508$ 417,616$ -$ 18,442,507$ GFAR - Designated for Parking 1,460,210 - - - - - 1,460,210 Grant Funded CIP Projects (379,586) 250,000 - 250,000 - - (379,586) Storm Drain #1 769,808 48,850 - - - - 818,658 Storm Drain #2 999,394 50,000 - - - - 1,049,394 Storm Drain #3 (21,798) 2,390 - 150,000 - - (169,408) Traffic Mitigation 207,226 30,000 - - 10,000 - 227,226 Construction Tax-Undergrounding 2,925,911 44,280 - 42,000 - - 2,928,191 Gas Tax 711,042 882,457 - 780,000 106,000 - 707,499 Total Capital Projects Funds Reserves 24,501,519$ 2,650,069$ 2,482,227$ 4,015,508$ 533,616$ -$ 25,084,691$ Successor Agency of the Los Gatos RDA Funds SA- Trust Fund 3,601,794$ 3,857,721$ -$ 3,850,083$ 6,300$ -$ 3,603,132$ Total SA of the Los Gatos RDA Funds Reserves 3,601,794$ 3,857,721$ -$ 3,850,083$ 6,300$ -$ 3,603,132$ TOTAL RESERVES 60,883,093$ 51,150,278$ 3,062,063$ 54,611,000$ 3,062,063$ -$ 57,422,371$ 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 2017/118 Proposed Budget GFAR. Grant Fund, Storm Drain Funds, and Gas Tax Fund Balances reflect the spending down of available funds in FY 2017/18 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 $10,000 for estimated annual administration fees. Grant Funded Projects Fund Balance reflects appropriations for incoming revenues and prior year carryforwards, which will result in either positive or negative fund balance depending on timing of receipts and budget. All grant projects net to zero at completion. C - 27 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Actual Actual Actual Estimated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance GENERAL FUND Restricted Fund Balances Unreserved Fund Balances Undesignated Reserves Available to be Appropriated - - - 4,766,437 4,777,561 Committed to: Budget Stabilization Reserve 6,621,808 6,621,808 6,621,808 4,637,406 4,969,847 Catastrophic Reserves 4,178,192 4,178,192 4,637,406 4,637,406 4,969,847 CalPERS/OPEB Reserve - - 300,000 1,284,402 2,284,402 Almond Grove Reserve 8,459,973 2,896,200 - Assigned to:- - Open Space Reserve 562,000 562,000 562,000 562,000 562,000 Sustainability 140,553 140,553 140,553 140,553 140,553 Strategic Planning Reserve - - 2,600,000 2,600,000 600,000 Capital / Special Projects 10,218,579 9,511,527 4,222,405 2,822,405 3,125,901 Authorized Carryforwards 56,741 99,284 99,284 99,284 99,284 Post Retirement Medical 400,000 400,000 - - - Vasona Land Sale 411,245 - - - - Productivity Contingency 100,000 100,000 - - - Special Studies 490,000 490,000 - - - Total General Fund Reserves 23,179,118$ 22,103,364$ 27,643,429$ 24,446,093$ 21,529,395$ SPECIAL REVENUE FUNDS Housing Conservation Program 67,697$ 74,520$ 74,586$ 74,586$ 74,586$ Community Dev Block Grant (10,587) (10,587) (4,576) (4,576) (4,576) Urban Run-Off Source Fund 125,936 142,943 109,030 (16,317) 3,167 Blackwell Assessment District 7,521 8,648 10,231 11,491 4,849 Kennedy Assessment District 41,410 48,151 40,097 41,621 13,309 Gemini Assessment District 19,779 16,948 20,392 22,878 15,824 Santa Rosa Assessment District 56,885 58,083 60,128 61,673 53,218 Vasona Assessment District 34,495 39,561 42,596 44,654 35,895 Hillbrook Assessment District 9,167 8,816 11,887 14,924 2,961 Total Special Revenue Funds Reserves 352,303$ 387,083$ 364,371$ 250,934$ 199,233$ INTERNAL SERVICE FUNDS ABAG Self Insurance 1,056,559$ 1,567,162$ 1,403,449$ 812,653$ 549,654 Worker's Comp Self Insurance 1,576,698 1,514,857 1,213,323 1,040,633 478,714 Management Information Systems 2,661,264 2,833,159 2,888,452 2,853,080 2,609,009 Office Stores Fund 149,293 187,956 183,127 166,627 150,127 Equipment Replacement 3,429,643 3,675,029 2,148,005 1,751,729 1,717,320 Vehicle Maintenance 740,861 322,865 409,872 484,535 487,698 Facilities Maintenance 1,319,864 484,030 414,367 455,559 489,596 Total Internal Service Funds Reserves 10,934,182$ 10,585,058$ 8,660,595$ 7,564,816$ 6,482,118$ C - 28 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Actual Actual Actual Estimated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance TRUST & AGENCY Library Trust 31,981$ 39,320$ 46,145$ 36,695$ 38,245$ Library History Project (1,378) (1,380) - - - Ness Trust Bequest 188,420 171,591 40,743 41,593 42,443 Betty McClendon Trust 96,095 87,957 88,662 89,367 90,072 Barbara J Cassin Trust 379,802 344,758 347,522 350,282 353,042 Parking District #88 86,492 86,858 - - - Total Trust & Agency Funds Reserves 781,412$ 729,104$ 523,072$ 517,937$ 523,802$ CAPITAL PROJECTS FUNDS GFAR 6,842,124$ 14,071,412$ 13,328,575$ 17,829,312$ 18,442,507 GFAR - Designated for Parking 1,460,210 1,460,210 1,460,210 1,460,210 1,460,210 Grant Funded CIP Projects (288,730) (369,988) (379,946) (379,586) (379,586) Storm Drain #1 450,765 669,660 721,198 769,808 818,658 Storm Drain #2 935,034 972,866 949,644 999,394 1,049,394 Storm Drain #3 (54,904) (49,732) (2,788) (21,798) (169,408) Traffic Mitigation 178,226 184,941 207,206 207,226 227,226 Construction Tax-Undergrounding 2,687,790 2,814,352 2,881,501 2,925,911 2,928,191 Gas Tax 297,303 1,075,828 1,651,113 711,042 707,499 Total Capital Projects Funds Reserves 12,507,818$ 20,829,549$ 20,816,713$ 24,501,519$ 25,084,691$ SUCCESSOR AGENCY TO THE LOS GATOS RDA SA - Trust Fund 3,615,496$ 3,613,727$ 3,593,572$ 3,601,794$ 3,603,132$ Total Successor Agency Funds Reserves 3,615,496$ 3,613,727$ 3,593,572$ 3,601,794$ 3,603,132$ TOTAL RESERVES 51,370,329$ 58,247,885$ 61,601,752$ 60,883,093$ 57,422,371$ C - 29 DEPARTMENT REVENUES BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed Town Offices 1101 Town Council -$ -$ -$ -$ -$ -$ 1301 Town Attorney 4,251 19,736 119 - - - 1302 ABAG - Self Insurance Fund 497,185 485,397 492,341 535,838 - 553,953 Total Town Offices 501,436$ 505,133$ 492,460$ 535,838$ -$ 553,953$ Administrative Services Department 1201 Non-Departmental 26,507,206$ 27,992,277$ 27,772,802$ 28,539,202$ 29,846,425$ 29,485,907$ 2101 Town Manager Administration 6,452 1,179 13,547 1,000 1,470 1,527 2102 Community Grants 1,869 - - - - - 2103 Housing Program 20,006 6,823 67 - - - 2104 HCD Housing Rehab 19,360 176,705 6,011 70,000 - - 2201 Human Resources - - - - - - 2202 Workers' Compensation Fund 835,410 1,004,574 963,155 934,118 868,874 696,547 2301 Finance & Administrative Services 1,755,621 2,210,409 2,086,597 1,631,193 1,720,723 1,845,723 2302 Office Stores Fund 98,057 147,983 117,734 95,000 118,000 118,000 2303 Parking Assessment District 2,704 365 92,346 - - - 2401 Clerk Administation - - - - - - 2501 Management Information Systems 1,038,393 1,089,254 1,114,383 1,129,006 1,128,993 1,180,879 2999 Pass Thru Accounts - - 7,194 7,194 - 7,194 Total Administrative Services 30,285,078$ 32,629,569$ 32,173,836$ 32,406,713$ 33,684,485$ 33,335,777$ Community Development 3101 Administration -$ -$ -$ -$ -$ -$ 3201 Developmental Review 880,388 1,062,532 821,153 610,000 768,806 610,000 3202 Advanced Planning 251,974 262,328 211,700 121,000 136,534 116,000 3301 Inspection Services 2,794,383 2,477,969 2,244,922 1,878,000 2,055,028 1,978,000 3401 Code Compliance 3,700 2,800 10,300 3,100 5,400 3,100 3501 BMP Housing Program 35,990 170,455 360,877 158,065 1,000 148,871 3999 Pass Thru Accounts 1,200,257 1,062,891 710,196 510,500 510,500 510,500 Total Community Development 5,166,692$ 5,038,975$ 4,359,148$ 3,280,665$ 3,477,268$ 3,366,471$ Police Department 4101 Administration 11,383$ 46,415$ 33,528$ 20,500$ 20,500$ 22,000$ 4201 Records & Communication 13,185 46,526 9,993 11,800 7,000 9,800 4202 Personnel & Community Services 492,608 546,314 336,798 295,640 295,640 295,640 4301 Patrol 661,589 481,967 828,320 855,740 868,740 898,092 4302 Traffic 453,803 451,065 500,142 434,301 449,402 447,902 4303 Investigations 6,889 3,066 184,932 164,084 164,084 120,691 4304 Parking Program 738,112 825,449 824,936 624,566 683,066 676,066 4800 Grants Program - Police 80,398 10,307 77,239 5,384 15,170 53,781 4999 Pass Thru Accounts 772,624 1,118,802 560,300 9,000 24,225 9,000 Total Police Department 3,230,591$ 3,529,911$ 3,356,188$ 2,421,015$ 2,527,827$ 2,532,972$ C - 30 DEPARTMENT REVENUES BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed Parks & Public Works 5101 Administration 1,322$ 1,931$ 594$ 1,200$ -$ 1,200$ 5201 Engineering Program Services - - - - - - 5202 Engineering Development Srvcs 734,890 952,138 776,907 727,860 645,722 691,260 5203 Non-Point Source Fund 328,648 328,868 368,813 367,464 367,464 584,394 5301 Park Services 298,314 323,259 298,408 285,703 275,699 279,014 5302 Environmental Services 162,487 159,309 165,753 158,470 150,770 160,156 5401 Street & Signals 191,087 187,654 198,969 195,543 223,667 195,543 5402 Equipment Replacement 506,979 504,952 501,093 381,322 392,322 624,279 5403 Vehicle Maintenance 528,887 570,003 571,670 573,865 577,676 586,654 5404 Facilities Maintenance 1,320,023 1,337,633 1,281,462 1,381,875 1,410,606 1,436,089 5405 Property Damage 52,244 24,029 67,785 - 12,227 - 5501 Lighting & Landscape Districts 41,401 36,901 29,524 38,416 38,416 38,861 5999 Pass Thru Accounts 178,092 125,195 70,686 165,000 155,000 140,000 8011 GFAR 1,144,294 1,712,434 700,029 1,488,000 1,164,036 1,342,092 8021 Grant Funded CIP Projects 487,821 694,207 171,485 575,000 360 250,000 8031 Storm Drain #1 144,872 218,896 51,538 49,000 48,610 48,850 8032 Storm Drain #2 74,709 37,833 72,598 53,380 49,750 50,000 8033 Storm Drain #3 473 5,172 46,944 1,500 2,490 2,390 8041 Traffic Mitigation 506,005 90,612 609,961 422,869 155,283 30,000 8042 Utility Undergrounding 168,242 126,562 67,150 50,000 44,410 44,280 8051 Gas Tax - Street & Signals 946,246 884,525 682,594 631,843 612,544 882,457 Total Parks & Public Works 7,817,036$ 8,322,113$ 6,733,963$ 7,548,310$ 6,327,052$ 7,387,519$ Library 7101 Administration 6,451$ 6,507$ 6,950$ 6,960$ 6,960$ -$ 7201 Adult Services 2,000 - 4,520 - - - 7202 Children's Services - - - - - - 7203 Acquisitons & Cataloging 3,404 5,271 5,596 5,000 5,000 5,500 7204 Circulation Services 54,582 45,407 41,354 40,000 36,000 32,000 7301 Library Trust 36,797 37,357 71,720 67,400 67,550 74,050 7302 Clelles Ness Bequest Trust 3,741 (851) 845 500 850 850 7303 Library History Project 97 (2) - - - - 7304 Betty McClendon Trust 1,867 (309) 705 750 714 705 7305 Barbara J Cassin Trust 7,382 (1,125) 2,764 500 2,760 2,760 Total Library 116,321$ 92,255$ 134,454$ 121,110$ 119,834$ 115,865$ Successor Agency to the Los Gatos RDA 9403 SA- Admin Services 110,635$ 106,517$ 42,854$ 22,763$ 21,163$ 21,462$ 9404 SA- Debt to 2002 COP 1,362,306 1,363,717 1,363,015 1,352,566 1,352,566 1,354,598 9405 SA-Debt to 2010 COP 2,529,802 2,507,849 2,508,446 2,497,610 2,497,610 2,481,661 9406 SA- Debt to 1992 COP 122 21,000 - - - - Total SA to the Los Gatos RDA 4,002,865$ 3,999,083$ 3,914,315$ 3,872,939$ 3,871,339$ 3,857,721$ Transfers In 3,408,637 9,353,933 3,070,584 10,293,401 7,632,881 3,062,063 Carryforward of CIP Grant Revenue Total Revenues by Department:54,528,656$ 63,470,972$ 54,234,948$ 60,479,991$ 57,640,686$ 54,212,341$ C - 31 DEPARTMENTAL EXPENDITURES BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed Town Offices 1101 Town Council 188,110$ 208,491$ 171,530$ 202,420$ 190,720$ 205,092$ 1301 Town Attorney 238,253 260,740 296,258 347,006 - 462,585 353,383 1302 ABAG - Self Insurance Fund 792,660 474,795 656,053 808,361 590,796 816,952 Total Town Offices 1,219,023$ 944,026$ 1,123,841$ 1,357,787$ 1,244,101$ 1,375,427$ Administrative Services Department 1201 Non-Departmental 9,752,762$ 5,230,442$ 5,761,887$ 6,032,025$ -$ 6,534,564$ 5,907,229$ 2101 Town Manager Administration 999,601 1,059,703 950,977 1,006,469 - 758,137 1,132,302 2102 Community Grants 99,850 114,522 103,519 119,800 - 119,800 124,800 2103 HCD Housing Rehab - - - - - - - 2104 Comm. Development Block Grant - - - - - - - 2201 Human Resources 423,843 484,291 559,612 601,545 - 572,092 683,958 2301 Finance & Administrative Services 1,021,792 1,057,993 992,764 1,263,974 - 1,033,078 1,279,607 2401 Clerk Administration 162,723 168,379 276,418 311,397 - 299,451 334,961 2802 Obesity Grant - - - - - - - 2999 Pass Through - - - 7,194 - - 7,194 2202 Workers' Compensation Fund 1,505,626 1,066,415 1,264,689 1,258,810 - 1,041,564 1,258,466 2302 Office Stores Fund 107,977 109,320 122,562 134,500 - 134,500 134,500 2501 Management Information Systems 872,826 901,293 1,059,091 1,351,188 - 1,174,365 1,424,950 2303 Parking Assessment District 140,366 - - - - - - Total Administrative Services 15,087,366$ 10,192,358$ 11,091,519$ 12,086,902$ 11,667,551$ 12,287,967$ Community Development 3101 Administration 159,401$ 125,087$ 144,484$ 237,742$ 220,411$ 445,953$ 3201 Developmental Review 1,072,640 1,146,692 1,107,301 1,429,728 1,089,493 1,424,150 3202 Advanced Planning 303,893 243,737 225,602 335,439 306,170 365,369 3301 Inspection Services 1,183,058 1,178,836 1,167,902 1,274,612 1,086,869 1,262,399 3401 Code Compliance 144,241 160,414 187,513 197,013 204,833 219,431 3501 BMP Housing Program 257,147 315,807 489,335 158,065 154,885 148,871 3999 Pass Thru Accounts 1,200,257 1,062,891 710,196 510,500 510,500 510,500 Total Community Development 4,320,637$ 4,233,464$ 4,032,333$ 4,143,099$ 3,573,161$ 4,376,673$ Police Department 4101 Administration 561,900$ 774,187$ 889,742$ 992,203$ 976,338$ 1,023,502$ 4201 Records & Communication 1,607,418 1,756,928 1,914,577 2,196,149 1,958,590 2,306,596 4202 Personnel & Community Services 576,204 362,987 701,737 584,629 579,178 771,826 4301 Patrol 6,518,339 6,256,175 6,115,836 6,391,211 5,686,385 6,913,430 4302 Traffic 942,247 816,227 719,561 869,904 904,879 977,570 4303 Investigations 1,884,190 2,107,270 2,208,996 2,210,203 2,345,258 2,672,945 4304 Parking Program 732,415 649,866 665,850 661,364 624,753 726,581 4800 Grants Program - Police 78,235 30 71,920 5,384 14,567 53,781 4999 Pass Thru Accounts 772,325 1,123,359 556,467 9,000 9,000 9,000 Total Police Department 13,673,273$ 13,847,029$ 13,844,686$ 13,920,047$ 13,098,948$ 15,455,231$ C - 32 DEPARTMENTAL EXPENDITURES BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed Parks & Public Works 5101 Administration 264,694$ 307,031$ 348,234$ 313,250$ 353,588$ 551,395$ 5201 Engineering Program Services 739,658 902,915 1,002,319 1,031,612 1,141,480 1,058,501 5202 Engineering Development Srvcs 638,721 640,975 670,247 753,496 673,234 808,134 5203 Non-Point Source Fund 322,813 411,860 452,727 533,935 492,811 564,910 5301 Park Services 1,561,076 1,496,032 1,677,669 1,739,562 1,796,825 1,832,817 5302 Environmental Services 171,123 280,035 378,396 428,581 351,286 391,421 5401 Street & Signals 2,016,963 1,920,447 2,015,412 1,995,924 2,086,732 2,310,057 5402 Equipment Replacement 337,867 290,633 531,130 336,369 492,918 658,688 5403 Vehicle Maintenance 389,821 487,999 484,662 573,866 503,013 583,491 5404 Facilities Maintenance 1,086,911 1,248,819 1,338,979 1,381,875 1,369,414 1,402,052 5405 Property Damage 10,442 17,726 63,203 25,000 49,595 25,000 5501 Lighting & Landscape Districts 17,068 21,031 19,478 74,550 21,586 105,126 5999 Pass Thru Accounts 178,092 125,195 70,715 165,000 155,000 140,000 8011 GFAR 2,388,043 2,609,078 1,484,857 13,367,883 3,722,970 2,793,509 8021 Grant Funded CIP Projects 153,935 952,169 141,803 645,000 - 250,000 8031 Storm Drain #1 - - - - - - 8032 Storm Drain #2 - - 95,820 - - - 8033 Storm Drain #3 - - - - 21,500 150,000 8041 Traffic Mitigation 452,132 78,393 575,548 392,869 145,263 - 8042 Utility Undergrounding - - - 42,000 - 42,000 8051 Gas Tax - Street & Signals 712,290 - 1,309 550,000 1,446,615 780,000 Total Parks & Public Works 11,441,649$ 11,790,338$ 11,352,508$ 24,350,772$ 14,823,830$ 14,447,101$ Library 7101 Administration 318,819$ 328,008$ 396,063$ 482,926$ 410,823$ 499,211$ 7201 Adult Services 503,080 608,632 597,085 654,119 620,913 676,974 7202 Children's Services 424,874 458,744 468,379 527,602 501,490 576,672 7203 Acquisitons & Cataloging 170,905 155,622 117,444 120,796 119,584 124,410 7204 Circulation Services 713,761 717,837 753,296 906,405 778,664 903,751 7301 Library Trust 18,812 30,018 28,515 32,000 32,000 37,500 7302 Clelles Ness Bequest Trust 5,638 15,978 131,694 - - - 7303 Library History Project 2,233 - - - - - 7304 Betty McClendon Trust 4,716 7,829 - - - - 7305 Barbara J Cassin Trust 80,829 33,918 - - - - Total Library 2,243,667$ 2,356,586$ 2,492,476$ 2,723,848$ 2,463,474$ 2,818,518$ Successor Agency to the Los Gatos RDA 9402 SA- Housing Trust Others 254,674$ -$ -$ -$ -$ -$ 9403 SA- Admin Services 21,721 16,052 16,500 13,429 5,291 15,334 9404 SA- Debt to 2002 COP 1,357,905 1,354,570 1,359,456 1,352,516 1,352,516 1,354,563 9405 SA-Debt to 2010 COP 2,516,451 2,505,061 2,488,860 2,497,610 2,497,610 2,480,186 9406 SA- Debt to 1992 COP - - - - - - Total SA to the Los Gatos RDA 4,150,751$ 3,875,683$ 3,864,816$ 3,863,555$ 3,855,417$ 3,850,083$ Total Operating Expenditures 52,136,366$ 47,239,484$ 47,802,179$ 62,446,010$ 50,726,482$ 54,611,000$ Transfers Out 3,408,637 9,353,932 3,078,884 10,293,401 7,632,881 3,062,063 Total Expenditures by Department:55,545,003$ 56,593,416$ 50,881,063$ 72,739,411$ 58,359,363$ 57,673,063$ C - 33 IN-KIND DONATIONS FY 2017/18 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 $25,000. 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 $810,738. 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 $2.9 Square Footage 11,604 6,479 12,000 Value of Rent/Year $348,120 $231,658 $413,683 Rent Paid/Year $0 $23,166 $186,157 Net Estimated Value of Donation/Year $348,120 $208,492 $227,526 C - 34 FEE RELATED PROJECT LISTS Under California law, cities and other local agencies may exact 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 (2017 $) 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 Below Market Price (BMP) Housing Program Potential Project List Note: BMP - Below Market Housing Program Total Source Description Estimated Project Cost (2017 $) Construction Impact Fee Eligible Cost CIP Street Repair and Resurfacing Projects (5 year-plan) $ 12,113,285 $ 12,113,285 $ 12,113,285 $ 12,113,285 CIP - Town of Los Gatos, Capital Improvement Program Construction Impact Activity Project List Note: 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 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Proposed General Fund Town Council 0.85 0.85 0.50 0.50 0.50 Town Attorney 0.85 0.85 0.85 1.04 0.91 Administrative Services 15.48 15.98 16.33 16.28 16.19 Community Development 17.65 19.78 19.28 19.99 20.08 Police Department 56.50 59.00 58.00 58.00 59.00 Parks & Public Works 26.60 27.10 28.40 28.40 29.40 Library 10.30 10.80 11.00 12.25 12.25 Total General Fund Staff 128.23 134.35 134.35 136.45 138.33 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 0.65 0.71 0.71 Administrative Services 3.65 3.90 3.90 3.70 3.95 Parks & Public Works 3.90 3.90 4.10 4.10 4.10 Total Internal Services Funds Staff 8.20 8.45 8.65 8.51 8.76 Successor Agency to the Los Gatos RDA Administrative Services - - - - 0.01 Community Development 0.10 0.10 0.10 0.01 - Total Redevelopment Agency Staff 0.10 0.10 0.10 0.01 0.01 Total Town FTEs 137.53 143.90 144.10 145.98 148.10 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. C - 37 SUMMARY OF POSITIONS BUDGETED FTES BY DEPARTMENT Blue Bar Shading – Town Staff Purple Bar Shading – Hourly Employees FY 2017/18 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 1.63 - 1.63 Administrative Services 20.59 1.06 21.65 Community Development 19.63 0.63 20.26 Police Department 59.00 2.65 61.65 Parks & Public Works 34.50 3.19 37.69 Library 12.25 4.71 16.96 Total Positions 148.10 12.32 160.42 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. - 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 Town Council Town Attorney Administrative Services Community Development Police Department Parks & Public Works Library 2013/14 2014/15 2015/16 2016/17 2017/18 Departments Funded Funded Funded Funded Proposed Town Council 0.85 0.85 0.50 0.63 0.50 Town Attorney 1.50 1.50 1.50 1.63 1.63 Administrative Services 18.38 19.25 19.60 19.35 20.59 Community Development 17.50 19.50 19.00 19.63 19.63 Police Department 57.50 60.00 59.00 59.00 59.00 Parks & Public Works 31.50 32.00 33.50 33.50 34.50 Library 10.30 10.80 11.00 12.25 12.25 Total Budgeted FTEs 137.53 143.90 144.10 145.98 148.10 C - 39 SUMMARY OF PERSONNEL CHANGES FY 2017/18 he Town’s total budgeted personnel costs for FY 2017/18 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 2017/18 budget reflect Town-wide negotiated salary changes. 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 Police Officers’ Association (POA) MOU agreement expires on September 30, 2018. • The TEA and AFSCME labor agreements expire on June 30, 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 2017 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 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 2017/18, the Town’s miscellaneous employee rate is projected to increase to 27.40%; the safety rate is projected to increase to 39.6%; and the PEPRA safety rate is projected to be 12.8%. T C - 40 SUMMARY OF PERSONNEL CHANGES FY 2017/18 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 39.6% to 65.7% in FY 2022/23 of pay rate for safety employees and from the FY 2017/18 rate of 27.40% to approximately 43.30% in FY 2022/23. Using official information issued by CalPERS, the following schedule reflects the Town’s actual CalPERS pension rate for FY 2017/18 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 2017 that provided a calculation method to estimate rate impacts of the discount rate change approved in December 2016. 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 Safety 3% @ 50 40.85%29.56%32.36%36.18%39.36%45.50%51.70%58.30%62.50%65.70% Misc 2.5% @ 55 21.90%22.38%25.43%26.96%28.90%30.80%34.50%38.40%41.10%43.30% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 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 Safety 3% @ 50 Misc 2.5% @ 55 C - 41 SUMMARY OF PERSONNEL CHANGES FY 2017/18 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 augmentations have been included in the FY 2017/18 budget. During FY 2015/16 mid-year budget adjustments, Council approved one time Town-wide hire ahead funding utilizing a pilot program. Hire ahead opportunities are available for any Department within the existing budget authority of the Town Manager. Hire ahead allows the Town to hire in advance of known separations using salary savings from specific Department budgets. 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 2017/18 Operating Budget has 160.42 budgeted FTEs, including temporary staff. This reflects an increase of 2.32 FTE compared to the prior year. The recommended FY 2017/18 staffing levels reflect the following changes from the prior year’s adopted budget:  Administrative Services and Town Offices –The FY 2017/18 budget reflects a deletion of the Assistant to the Town Manager position and a 1.0 FTE addition of an Administrative Analyst position. In addition, a 0.63 FTE Administrative Analyst has been changed and funded to Economic Vitality Manager and increased to 0.75 FTE. The Economic Vitality Manager position is also funded partially through the Community Development Department. In addition, the budget shows a one-time funding of a 0.5 FTE Human Resources Analyst position dedicated to complete special projects within the program. The FY 2017/18 budget also reflects the reclassification of the Account Technician position to Administrative Analyst position in the Finance Department. This change reflects increased duties such as additional support for budget services, cross training in confidential finance functions, and daily departmental duties. The budget also reflects Council action in April 2017 to add the new job classification of Events and Marketing Specialist. This 0.5 FTE benefited position is responsible for organizing, promoting, and implementing all Town events (e.g., Spring Into Green and Fourth of July), as well as processing the applications for Special Event Permits in coordination with Town Departments.  Police –While historically the 1.0 FTE Community Outreach Coordinator has been funded in the Town’s Non- Departmental program, the work occurs in the Police Department; therefore, with this budget the funds are being transferred to the Personnel and Community Service program. To best meet the needs of the Department, the FY 2017/18 budget includes one operational reclassification. The 1.0 FTE Community Service Officer assigned to Personnel and Community Services is now reclassified to a 1.0 FTE Human Resources Specialist. The Human Resources Specialist position supports the Police Department with the recruitment of new personnel, continued education and training of personnel, and succession planning. Temporary staff funding is proposed for: technology support, evidence, records management, and Parking Control Officers. The temporary hours increase is funded from one-time funding. An additional $32,416 in temporary staffing hours is proposed as one-time support for an IT Technician to assist with critical operational technology needs and the regional radio project including interoperability upgrades. An additional $47,905 in temporary staffing hours is proposed for a Community Services Officer (CSO) as a one-time support to assist the Evidence and Property Division. This Division has seen an increase in the intake and discovery records requests over the past year; intensive staff research and documentation accompany these requests. An additional $41,670 in temporary staffing hours is proposed for a Records Specialist as a one-time support to assist with the increased number of reported and processed cases. This increase is partially due to recent changes in legislation; additionally, the Records Division has seen an increase in public counter activity. An additional $12,775 in temporary staffing hours is proposed as a one-time support to assist in the use of Parking Control Officer (PCO) during peak times. The part-time Community Services Officer (CSO) position will continue for another year in FY 2017/18 with one-time additional funding. The position is allocated between Code Compliance C - 42 SUMMARY OF PERSONNEL CHANGES FY 2017/18 and the Police Department due to noise concerns in the downtown area with emphasis on evening monitoring (e.g., hours of operation and noise complaints) and after hours code compliance issues.  Community Development Department (CDD) – Staffing reallocations occurred between the different programs in this Department; however, the total Department staffing did not change. Budgeted salary and benefit expenditures include the aforementioned part-time Community Services Officer (CSO) position being continued for another year in FY 2017/18 with one-time funding.  Parks and Public Works (PPW) – In FY 2017/18, the Department will annualize funding ($217,000) for a Transportation and Mobility Manager to establish project feasibility and to best position the Town to compete for Measure B opportunities. In addition, a 1.0 FTE Facilities and Environmental Services Manager has been changed and funded to Parks and Public Works Operations Manager. Additionally, the Parks and Public Works Department has deleted a vacant Parks and Maintenance Worker, 1,000 temporary staff hours for a Park Services Officer, and 930 temporary staff hours for a Maintenance Assistant. These decreases will fund the addition of a second Parks and Public Works Operations Manager. An addition of $43,000 in one-time monies is for temporary staff hours. Furthermore, a 1.0 FTE Executive Assistant was changed to an Environmental Programs Specialist.  Library - The FY 2017/18 Library budget reflects and status quo budget and a one-time funding of 250 temporary librarian hours. 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 2016/17 remain at the 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 be recommending a transfer into this fund to restore this fund to an appropriate funding level. 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 2016/17 Workers’ Compensation rates remain the prior year level. Long-term job related injuries have resulted in a rapid decline in fund balance in the Workers’ Compensation fund and therefore 1.5% increases in rates for FY 2015/16 were programmed to offset the declining fund balance. Information Technology The Information technology (IT) program is funded through two different charge-backs to the Departments. One charge is based on a percentage of salary to fund the salaries and operating expenditures of the IT program. The second allocation 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 2013/14 2014/15 2015/16 2016/17 2017/18 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 0.50 0.63 0.63 TOTAL DEPARTMENT FTEs 1.50 1.50 1.50 1.63 1.63 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 1.00 - CY delete 1.0 FTE Administrative Anaylst - - - - 1.00 CY add 1.0 FTE Executive Asst. to Town Mgr.1.00 1.00 1.00 1.00 1.00 Economic Vitality Manager - - - - 0.75 CY add 0.75 FTE Economic Vitality Coordinator 0.50 0.63 0.63 0.63 - CY delete 0.63 FTE Communications Coordinator - 1.00 1.00 - - Office Assistant 1.63 1.63 0.63 - - Administrative Technician 0.50 - - - - Events & Marketing Specialist - - - - 0.50 CY add 0.50 FTE TOTAL DEPARTMENT FTEs 6.63 6.76 5.76 4.63 5.25 Human Resources Director 1.00 1.00 1.00 1.00 1.00 Administrative Analyst 1.00 1.00 1.00 1.00 1.50 CY add 0.50 FTE Human Resources Specialist 0.50 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 2.50 3.00 3.00 3.00 3.50 Finance & Admin. 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 CY add 1.0 FTE Administrative Technician 1.00 1.00 1.00 - - Account Technician 1.35 1.35 1.35 1.35 0.35 CY delete 1.0 FTE TOTAL DEPARTMENT FTEs 6.35 6.35 6.35 6.35 6.35 Clerk Administrator 0.50 1.00 1.00 1.00 1.00 Deputy Clerk 0.50 - - - - Office Assistant - - 1.00 2.00 2.00 TOTAL DEPARTMENT FTEs 1.00 1.00 2.00 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 Technician 0.75 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 2.75 3.00 3.00 3.00 3.00 CLERK ADMINISTRATION TOWN MANAGER'S OFFICE HUMAN RESOURCES FINANCE & ADMINISTRATIVE SERVICES TOWN ATTORNEY'S OFFICE INFORMATION TECHNOLOGY SERVICES C - 44 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Proposed Comments Asst. Town Manager/CDD Director - 0.50 0.50 - - Community Development Dir.1.00 - - 1.00 1.00 Asst. Community Dev. Dir.1.00 - - - - Planning Manager 1.00 1.00 1.00 1.00 1.00 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 2.00 2.50 2.63 2.63 Assistant Planner - 1.00 1.00 1.00 1.00 Planning Technician 0.50 2.00 1.00 1.00 1.00 Building Inspector 4.00 4.00 4.00 4.00 4.00 Counter Technician 2.00 2.00 2.00 2.00 2.00 Code Compliance Officer - 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 17.50 19.50 19.00 19.63 19.63 Chief of Police 1.00 1.00 1.00 1.00 1.00 Police Captain 2.00 2.00 1.00 1.00 1.00 Police Lieutenant - - 2.00 2.00 2.00 Police Sergeant 6.00 6.00 6.00 6.00 6.00 Police Corporal 5.00 5.00 4.00 4.00 4.00 Police Officer 24.00 26.00 25.00 25.00 25.00 Community Outreach Coordinator 1.00 1.00 1.00 1.00 1.00 Community Services Officer 4.00 2.00 2.00 2.00 1.00 CY delete 1.0 FTE Police Admin Services Mgr.1.00 - - - - Records & Evidence Manager - 1.00 1.00 - - Police Records Manager - - - 1.00 1.00 Administrative Analyst - 1.00 1.00 1.00 1.00 Executive Assistant to Chief 1.00 1.00 1.00 1.00 1.00 Communications Dispatcher Lead - - 1.00 1.00 1.00 Communications Dispatcher 7.50 7.00 6.00 7.00 7.00 Parking Control Officer 2.00 2.00 2.00 2.00 2.00 Police Records Specialist 3.00 5.00 5.00 4.00 4.00 Human Resources Specialist - - - - 1.00 CY add 1.0 FTE TOTAL DEPARTMENT FTEs 57.50 60.00 59.00 59.00 59.00 POLICE COMMUNITY DEVELOPMENT C - 45 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2013/14 2014/15 2015/16 2016/17 2017/18 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 - - - - Town Engineer - 1.00 1.00 1.00 1.00 Superintendent 1.00 1.00 1.00 1.00 1.00 Facilities & Environmental Services Mgr 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE Transportation & Mobility Mgr - - - - 1.00 CY add 1.0 FTE Park & Public Works Operations Mgr - - - - 2.00 CY add 2.0 FTE Senior Civil Engineer - - 1.00 1.00 1.00 Administrative Analyst 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 2.00 2.00 1.00 CY delete 1.0 FTE Administrative Assistant 2.00 2.00 2.00 2.00 2.00 Office Assistant - - 0.50 0.50 0.50 Environmental Service Coordinator 0.50 1.00 - - - Environmental Programs Specialist - - - - 1.00 CY add 1.0 FTE Associate Engineer 3.00 3.00 2.00 2.00 2.00 Assistant Engineer 1.00 1.00 1.00 1.00 1.00 Construction Project Mgr - - 1.00 1.00 1.00 Engineering Technician 1.00 1.00 1.00 1.00 1.00 Sr Engineering Inspector 1.00 1.00 1.00 1.00 1.00 Engineering Inspector 1.00 1.00 1.00 1.00 1.00 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 1.00 - - - Parks & Maintenance Worker 8.00 8.00 9.00 9.00 8.00 CY delete 1.0 FTE Equipment Mechanic 1.00 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 31.50 32.00 33.50 33.50 34.50 Library Director - - - 1.00 1.00 Town Librarian 2.00 2.00 2.00 - - Division Manager - - - 2.00 2.00 Librarian 2.55 3.55 3.75 3.00 3.00 Library Technology Specialist 1.00 1.00 1.00 1.00 1.00 Library Assistant 1.50 1.00 1.00 1.00 1.00 Library Technician 0.75 0.75 0.75 0.75 0.75 Customer Service Supervisor 1.00 1.00 1.00 1.00 1.00 Customer Service Specialist 1.50 1.50 1.50 1.50 1.50 Sr Library Page - - - 1.00 1.00 TOTAL DEPARTMENT FTEs 10.30 10.80 11.00 12.25 12.25 TOTAL TOWN FTEs 137.53 143.90 144.10 145.98 148.10 PARKS and PUBLIC WORKS DEPARTMENT LIBRARY C - 46 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2013/14 2014/15 2015/16 2016/17 2017/18 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 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Hours by Department Funded Funded Funded Funded Proposed Town Council 175 175 175 175 175 Administrative Services 1,370 1,370 1,476 2,196 2,196 Community Development 3,328 2,130 1,165 1,305 1,305 Police Department 2,920 3,977 4,504 3,422 5,502 Parks & Public Works 8,791 10,754 9,566 8,567 6,637 Library Department 10,237 10,237 10,237 9,546 9,796 Total Temporary Hours by Department 26,821 28,643 27,123 25,211 25,611 CONVERTED HOURLY EMPLOYEES 12.89 13.77 13.04 12.12 12.31 (1.00 FTE = 2080 hours) ELECTED OFFICIALS HOURLY EMPLOYEES D – 3 Town Offices PROGRAM PURPOSE The Town Offices Program comprises the Town Council Administration Program and the Town Attorney Administration Program, which includes the Self-Insurance Liability Program. The purpose of each program is outlined in the sections that follow this page. BUDGET OVERVIEW The FY 2017/18 budget for Town Offices includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. D – 4  TOWN OFFICES  2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Service Charge 168$ 801$ 26$ -$ -$ -$ Interest - - - - - - Fines & Forfeutires 4,083 955 93 - - - Other Revenues - 17,980 - - - - TOTAL REVENUES 4,251$ 19,736$ 119$ -$ -$ -$ EXPENDITURES Salaries and Benefits 369,711$ 382,582$ 383,836$ 414,932$ 408,386$ 422,797$ Operating Expenditures 32,400 58,124 54,990 101,812 212,291 101,812 Fixed Assets - - - - - - Internal Service Charges 24,252 28,525 28,962 32,682 32,628 33,866 TOTAL EXPENDITURES 426,363$ 469,231$ 467,788$ 549,426$ 653,305$ 558,475$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Adopted PROGRAM Town Council 188,110$ 208,491$ 171,530$ 202,420$ 190,720$ 205,092$ Town Attorney 238,253 260,740 296,258 347,006 462,585 353,383 TOTAL EXPENDITURES 426,363$ 469,231$ 467,788$ 549,426$ 653,305$ 558,475$ DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES D – 5  TOWN OFFICES  Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 General Fund Funded Funded Funded Funded Proposed Town Attorney 0.60 0.60 0.60 0.60 0.60 Deputy Town Attorney 0.25 0.25 0.25 0.31 0.31 Executive Asst. to the Town Mgr.0.50 0.50 0.50 0.50 0.50 Office Assistant 0.35 0.35 - 0.13 0.13 Total General Fund FTEs 1.70 1.70 1.35 1.54 1.54 Non-General Fund FTEs Liability Self-Insurance Town Attorney 0.35 0.35 0.35 0.35 0.35 Deputy Town Attorney 0.25 0.25 0.25 0.31 0.31 Total Liability Fund FTEs 0.60 0.60 0.60 0.66 0.66 Workers Compensation Town Attorney 0.05 0.05 0.05 0.05 0.05 Total Workers Comp FTEs 0.05 0.05 0.05 0.05 0.05 Total Town Offices FTEs 2.35 2.35 2.00 2.25 2.25 Elected Officials Councilmembers 5.00 5.00 5.00 5.00 5.00 Total Elected Officials 5.00 5.00 5.00 5.00 5.00 Temporary Staff Hours Intern 175 175 175 175 175 Total Annual Hours 175 175 175 175 175 DEPARTMENT STAFFING D – 6 D – 7 Town Council TOWN COUNCIL ADMINISTRATION PROGRAM 1101 PROGRAM PURPOSE The Town Council is the elected legislative body that represents the residents and provides policy direction for the delivery of services and capital improvements for the Town of Los Gatos. The Town Council comprises five Council members, with the Mayor and Vice Mayor appointed annually by the Council each November. The Town operates under a Council/Manager (corporate) form of government that combines the policy leadership of elected officials with the managerial responsibility of an appointed Town Manager and appointed Town Attorney reporting to the Council. With the professional support of Town staff, the Mayor and Town Council identify and adopt appropriate policy, program, and budget priorities for the Town. As an elected legislature, the Council’s priorities reflect, through its regulatory and budgetary enactments, the aspirations of the residents of Los Gatos. These priorities are implicit in the programs adopted and set forth in the annual operating budget for the Town of Los Gatos. BUDGET OVERVIEW The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The FY 2017/18 Council budget includes general administrative services, constituent services, elected official support, official meetings and events, and Council policy/program analysis. D – 8  TOWN COUNCIL  KEY PROGRAM SERVICES • Represents the residents of Los Gatos. • Formulates and enacts public policy in response to current and anticipated needs within political, administrative, and fiscal constraints. • Provides community leadership as the legislative and policy-making body of the municipal government. • Oversees Town Boards and Commissions. • Represents the Town of Los Gatos through coordination and collaboration with other government agencies. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Service Charge -$ -$ -$ -$ -$ -$ Interest - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits 171,924$ 179,470$ 155,940$ 175,906$ 166,260$ 178,226$ Operating Expenditures 11,945 24,662 12,530 23,456 21,456 23,456 Fixed Assets - - - - - - Internal Service Charges 4,241 4,359 3,060 3,058 3,004 3,410 TOTAL EXPENDITURES 188,110$ 208,491$ 171,530$ 202,420$ 190,720$ 205,092$ SUMMARY OF REVENUES AND EXPENDITURES D – 9  TOWN COUNCIL  Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Executive Asst. to the Town Mgr.0.50 0.50 0.50 0.50 0.50 Office Assistant 0.35 0.35 - - - TOTAL PROGRAM FTEs 0.85 0.85 0.50 0.50 0.50 Elected Officials Councilmembers 5.00 5.00 5.00 5.00 5.00 TOTAL ELECTED OFFICIALS 5.00 5.00 5.00 5.00 5.00 Temporary Staff Hours Intern 175 175 175 175 175 TOTAL ANNUAL HOURS 175 175 175 175 175 TOWN COUNCIL STAFFING D – 10 D – 11 Town Attorney TOWN ATTORNEY ADMINISTRATION PROGRAM 1301 PROGRAM PURPOSE The Town Attorney is the legal advisor to the Town Council, Successor Agency to the former Redevelopment Agency, and Town staff. In this capacity, the Office of the Town Attorney provides a wide range of legal services to ensure that Town actions and activities are legally sound. The core services of the Town Attorney’s Office include, but are not limited to: providing timely legal advice to the Town Council, Town advisory bodies, and staff; drafting contracts, opinions, resolutions, and ordinances; reviewing, processing, and settling claims against the Town; and prosecuting and defending civil lawsuits against the Town. BUDGET OVERVIEW The FY 2017/18 budget for the Town Attorney’s Office includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. Funding for outside legal services has increased over prior years to continue to provide services regarding Town property, land use, and Highway 85 matters. D – 12  TOWN ATTORNEY  ACCOMPLISHMENTS Core Goals Accomplishments Community Character Preserve and enhance the appearance character and environment quality of the community • Advised on a significant number of resolutions, ordinances, policies, and development projects in furtherance of implementation of the 2020 General Plan. Good Governance Ensure responsive, accountable and collaborate government • Prepared for and supported Council Meetings and Planning Commission meetings. • Prepared for and supported various Committee, Commission, and Board meetings as requested by staff and/or Council. Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of the community • Advised on the legal and financial matters associated with the dissolution of the former Town of Los Gatos Redevelopment Agency. • Provided administrative and analytical support in the area of staff report development and review. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Service Charge 168$ 801$ 26$ -$ -$ -$ Interest - - - - - - Fines & Forfeitures 4,083 955 93 - - - Other Revenues - 17,980 - - - - TOTAL REVENUES 4,251$ 19,736$ 119$ -$ -$ -$ EXPENDITURES Salaries and Benefits 197,787$ 203,112$ 227,896$ 239,026$ 242,126$ 244,571$ Operating Expenditures 20,455 33,462 42,460 78,356 190,835 78,356 Fixed Assets - - - - - - Internal Service Charges 20,011 24,166 25,902 29,624 29,624 30,456 TOTAL EXPENDITURES 238,253$ 260,740$ 296,258$ 347,006$ 462,585$ 353,383$ SUMMARY OF REVENUES AND EXPENDITURES D – 13  TOWN ATTORNEY  FY 2017/18 KEY PROJECTS Core Goals Key Projects Community Character Preserve and enhance the appearance character and environment quality of the community Policy Development Assist and advise on the review and revision of numerous policies including but not limited to Entertainment, Alcohol, Planned Development Ordinance, North 40 Specific Plan, implementation of the General Plan, and environmental issues related to development proposals. Good Governance Ensure responsive, accountable and collaborate government Process Improvements Respond to the needs of the Town Council and Town staff. Without compromising this key focus, the Town Attorney will continue to assist in streamlining administrative functions, including contract management, Council action, and code enforcement. Continue to explore and implement measures to reduce the cost of legal services and overall Town liability. Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of the community Improved Efficiencies Continue to seek improved efficiencies in providing legal services as necessary to meet budget constraints. D – 14  TOWN ATTORNEY  KEY PROGRAM SERVICES • Represents the Town regarding litigation matters, including criminal prosecutions of code violations. • Serves as the legal advisor for the Town Council, Town staff, and Successor Agency to the Redevelopment Agency. • Processes and evaluates all personal injury, property damage, and other monetary claims against the Town and manages all litigation involving the Town. • Drafts and/or reviews all proposed ordinances and resolutions. • Supervises personal injury and property damage claims and related claims litigation. • Drafts and/or reviews Town staff reports and contracts. • Assists in the administration of the Town’s liability insurance and risk management program. • Negotiates key transactions such as property matters. • Provides legal advice and support to Town Boards, Committees, and Commissions. Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Town Attorney 0.60 0.60 0.60 0.60 0.60 Deputy Town Attorney 0.25 0.25 0.25 0.31 0.31 Office Assistant - - - 0.13 0.13 TOTAL PROGRAM FTEs 0.85 0.85 0.85 1.04 1.04 TOWN ATTORNEY STAFFING D – 15  TOWN ATTORNEY  Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Claims for denial or approval processed within 45 days of filing: 98%90%90%90%90% 2. a.Staff reports reviewed within 24 hours of receipt:90%90%90%90%90% b.Contracts reviewed and signed within 48 hours of receipt:* Data Not Available Data Not Available Data Not Available 90%90% c.Staff questions and referrals responded to within 3 working days: 90%90%90%90%90% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.8 8 20 22 25 2.15 14 16 20 25 3.10 7 12 11 25 4.92 See Clerk Department See Clerk Department See Clerk Department See Clerk Department 5.See Clerk Department See Clerk Department See Clerk Department See Clerk Department See Clerk Department 6.200 219 283 261 275 7.5 5 4 8 10 8.16 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 9.Data Not Available Data Not Available 52 54 65 10. 9 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued * New measure effective FY 2016/17. ** This meaure moved to Clerk Department during FY 2014/15. *** Similar measure already being tracked in Clerk department. **** New measure effective FY 2015/16. Number of Administrative cases (weapons, pitchess motions, code enfocement): Number of claims: Number of cases handled: Number of property loss reports processed: Number of subpoenas handled: Number of incident reports processed: To reduce the legal and financial consequences of claims and lawsuits against the Town. To protect the Town from legal exposure through the timely review of contracts, staff reports, and Town policies and practices. Number of Public Records Act requests processed:** Number of resolutions and ordinances developed:*** Number of contracts reviewed: Number of City Council and Advisory Body meetings attended:**** D – 16 D – 17 Town Attorney LIABILITY SELF-INSURANCE FUND PROGRAM 1302 FUND PURPOSE The Town is a member of the Association of Bay Area Governments (ABAG) insurance pool, a self-insurance program established in 1986 to provide general liability, property insurance, and risk management services to 30 cities within the Bay Area. This coverage minimizes the Town’s exposure to losses. The annual premium paid by the Town allows for $10 million total coverage with a $50,000 deductible per occurrence. Self-Insurance rates have been established to allocate the cost of this internal service fund accurately to all programs based on staffing levels, thus more accurately distributing and reflecting actual costs of services. BUDGET OVERVIEW The Self-Insurance Program is funded through departmental charges based on established assessment rates per labor dollar expended. Service rates are established to maintain fund balance capacity at a minimum of three times the annual operating expense. This rule of thumb provides a funding source for potential claims against the Town. Excess funding is reduced through lower service rates and transfers back to the General Fund. The Town continues to receive grant funding and to make strides in the area of Risk Management. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The operating expenditures for this program are also anticipated to increase due to adjustments in insurance premiums and claim history. The program’s fund balance is declining due to adverse claims against the Town from prior years. Staff is currently exploring alternative insurance and liability fund structures and providers to reduce costs while maintaining appropriate risk coverage. D – 18  TOWN ATTORNEY  Liability Self-Insurance Program 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 1,352,034 1,056,559 1,567,161 1,403,449 1,403,449 812,653 Total Beginning Fund Balance 1,352,034 1,056,559 1,567,161 1,403,449 1,403,449 812,653 Revenues Service Charge 497,185$ 485,397$ 492,341$ 535,838$ -$ 553,953$ Interest - - - - - - Other Revenues - - - - - - Total Revenues 497,185$ 485,397$ 492,341$ 535,838$ -$ 553,953$ TRANSFERS IN Transfer from Eqiupment Replacement -$ 500,000$ -$ -$ -$ -$ TOTALTRANSFERS IN -$ 500,000$ -$ -$ -$ -$ TOTAL REVENUES & TRANSFERS 497,185 985,397 492,341 535,838 - 553,953 TOTAL SOURCE OF FUNDS 1,849,219$ 2,041,956$ 2,059,502$ 1,939,287$ 1,403,449$ 1,366,606$ USES OF FUNDS Expenditures Salaries and Benefits 143,723$ 146,881$ 164,485$ 167,691$ 162,650$ 175,991$ Operating Expenditures 648,483 327,914 491,568 640,670 428,146 640,961 Fixed Assets - - - - - - Internal Service Charges 454 - - - - - Total Expenditures 792,660$ 474,795$ 656,053$ 808,361$ 590,796$ 816,952$ Ending Fund Balance Designated - - - - - - Undesignated 1,056,559 1,567,161 1,403,449 1,130,926 812,653 549,654 Total Ending Fund Balance 1,056,559 1,567,161 1,403,449 1,130,926 812,653 549,654 TOTAL USE OF FUNDS 1,849,219$ 2,041,956$ 2,059,502$ 1,939,287$ 1,403,449$ 1,366,606$ STATEMENT OF SOURCE AND USE OF FUNDS D – 19  TOWN ATTORNEY  Liability Self-Insurance Program FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable and collaborate government Premium Management Emphasize the improvement of safety concerns by actively pursuing ABAG training programs. In an effort to minimize insurance claims, the insurance pool offers safety training in areas which produce a high liability risk. Resolve claims favorable to the Town. KEY PROGRAM SERVICES • Acts as liaison with the Town’s Liability Insurance administration. • Informs Town Council and Town management of potential claims and results. Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Town Attorney 0.35 0.35 0.35 0.35 0.35 Deputy Town Attorney 0.25 0.25 0.25 0.31 0.31 Administrative Analyst - - - 0.10 0.10 Administrative Technician 0.10 0.10 0.10 - - Total Liability FTEs 0.70 0.70 0.70 0.76 0.76 LIABILITY SELF-INSURANCE PROGRAM STAFFING D – 20 D – 21 Administrative Services DEPARTMENT PURPOSE The Town Manager provides overall management, administration, and direction for the entire Town organization, reporting to the full Town Council. For budget purposes, Administrative Services incorporates six key programs: Town Manager’s Office Administration, Clerk Administration, Finance, Human Resources, Non-Departmental, and Information Technology (IT). In addition, the Town’s Workers Compensation Fund and Office Stores Fund are in the Administrative Services. Below is a summary of Administrative Services’ core services and service objectives. The Town Manager identifies community issues and needs requiring legislative policy decisions and provides alternative solutions for Council consideration; assures that the Council's policies, programs, and priorities are effectively and efficiently implemented; prepares the Town budget with recommendations on the appropriate resources for Council action; provides research and information necessary for responsible decision making; fosters public awareness of municipal programs, services, and goals; responds to resident and other constituent inquiries by explaining Town services and functions; and investigates problems and provides information and specialized assistance on more complex Town issues. Administrative Services are also directly responsible for human resources, finance, budgeting, purchasing, labor relations, information technology systems, economic vitality, equipment replacement, workers’ compensation, records management, customer service management, and other administrative support. BUDGET OVERVIEW The FY 2017/18 Administrative Services revenue reflects increases in Property Tax, Transient Occupancy Tax, Franchise Fees Licenses and Permits, and Charges for Services, all indicative of the strong economy. However, despite these revenue increases, the FY 2017/18 Sales Tax projection is declining due to the increase in online sales instead of purchases from local establishments. As a result, the FY 2017/18 Administrative Services expenditure budget continues to be conservative and reflects only obligated and minor D – 22  ADMINISTRATIVE SERVICES  expenditure enhancements, including increases in benefit rates, including workers’ compensation and pensions (CalPERS). The FY 2017/18 budget reflects a deletion of the Assistant to the Town Manager position and a 1.0 FTE addition of an Administrative Analyst position. In addition, a 0.63 FTE Administrative Analyst has been changed and funded to Economic Vitality Manager and increased to 0.75 FTE. The Economic Vitality Manager position is also funded partially through the Community Development Department. In addition, the budget shows a one-time funding of a 0.5 FTE Human Resources Analyst position dedicated to complete special projects within the program. The FY 2017/18 budget also reflects the reclassification of the Account Technician position to Administrative Analyst position. This change in title is accompanied by a change in duties to include additional support for budget, cross training in confidential finance functions, and daily departmental duties. The budget also reflects Council action in April 2017 to add the new job classification of Events and Marketing Specialist. This 0.5 FTE benefited position is responsible for organizing, promoting, and implementing all Town events (e.g., Spring Into Green and Fourth of July), as well as processing the applications for Special Event Permits in coordination with Town Departments. D – 23  ADMINISTRATIVE SERVICES  2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes 1,130,020$ 1,779,407$ 1,465,547$ 1,300,000$ 1,450,000$ 1,575,000$ Intergovernmental Revenues - - - - - - Service Charges 633 651 555 - - - Interest 625,298 430,476 620,895 331,193 270,723 270,723 Other Revenues 7,991 1,054 20,341 8,194 1,470 8,721 TOTAL REVENUES 1,763,942$ 2,211,588$ 2,107,338$ 1,639,387$ 1,722,193$ 1,854,444$ EXPENDITURES Salaries and Benefits 2,140,618$ 2,269,816$ 2,233,083$ 2,596,564$ 2,041,195$ 2,794,970$ Operating Expenditures 300,554 329,596 373,777 366,581 401,323 409,463 Grants 89,614 110,200 99,000 119,800 119,800 124,800 Pass Through Accounts 81 - - 7,194 - 7,194 Fixed Assets - - - - - - Internal Service Charges 176,942 175,276 177,430 220,240 220,240 226,395 TOTAL EXPENDITURES 2,707,809$ 2,884,888$ 2,883,290$ 3,310,379$ 2,782,558$ 3,562,822$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed PROGRAM Town Manager's Office 999,601$ 1,059,703$ 950,977$ 1,006,469$ 758,137$ 1,132,302$ Community Grants 99,850 114,522 103,519 119,800 119,800 124,800 Human Resources 423,843 484,291 559,612 601,545 572,092 683,958 Finance & Admin Services 1,021,792 1,057,993 992,764 1,263,974 1,033,078 1,279,607 Clerk Administration 162,723 168,379 276,418 311,397 299,451 334,961 Pass Through - - - 7,194 - 7,194 TOTAL EXPENDITURES 2,707,809$ 2,884,888$ 2,883,290$ 3,310,379$ 2,782,558$ 3,562,822$ SUMMARY OF REVENUES AND EXPENDITURES D – 24  ADMINISTRATIVE SERVICES  Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 General Fund Funded Funded Funded Funded Proposed 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 1.00 - Executive Asst. to Town Mgr.0.50 0.50 0.50 0.50 0.50 Economic Vitality Manager - - - - 0.30 Economic Vitality Coordinator 0.25 0.25 0.25 0.25 - Office Assistant 1.28 1.28 1.63 1.88 1.75 Communications Coordinator - 0.80 0.80 - - Community Outreach Coordinator 1.00 1.00 1.00 1.00 - Human Resources Director 0.75 0.75 0.75 0.75 0.75 Administrative Analyst 0.80 0.80 0.80 1.70 4.10 Human Resources Specialist 0.50 1.00 1.00 1.00 1.00 Finance & Admin. Director 1.00 1.00 1.00 1.00 1.00 Finance & Budget Manager 0.80 1.00 1.00 1.00 1.00 Accountant/Finance Analyst 1.00 1.00 1.00 1.00 0.99 Payroll Specialist 0.95 0.95 0.95 0.95 0.95 Administrative Technician 1.90 0.90 0.90 - - Account Technician 1.25 1.25 1.25 1.25 0.35 Clerk Administrator 0.50 1.00 1.00 1.00 1.00 Events & Marketing Specialist - - - - 0.50 Total General Fund FTEs 15.48 15.98 16.33 16.28 16.19 Non-General Fund FTEs (located in Administrative Services programs unless otherwise noted) Equipment Replacement Account Technician 0.10 0.10 0.10 0.10 - Administrative Analyst - - - - 0.10 Total Equip Replace FTEs 0.10 0.10 0.10 0.10 0.10 Liability Self-Insurance Administrative Technician 0.10 0.10 0.10 - - Administrative Analyst - - - 0.10 0.10 Total Liability Self-Insurance 0.10 0.10 0.10 0.10 0.10 ADMINISTRATIVE SERVICES STAFFING D – 25  ADMINISTRATIVE SERVICES  Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Proposed Workers Compensation Human Resources Director 0.25 0.25 0.25 0.25 0.25 Payroll Specialist 0.05 0.05 0.05 0.05 0.05 Administrative Analyst 0.20 0.20 0.20 0.20 0.20 Total Workers Comp FTEs 0.50 0.50 0.50 0.50 0.50 Information Technology Services 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 Technician 0.75 1.00 1.00 1.00 1.00 Communications Coordinator - 0.20 0.20 - - Finance Manager 0.20 - - - - Office Assistant - - - 0.13 0.13 Total IT FTEs 2.95 3.20 3.20 3.00 3.13 Total Admin Services FTEs 19.13 19.88 20.23 19.98 20.02 Temporary Staff Hours Intern 450 450 450 450 450 Facility Attendant 50 50 50 50 50 Administrative Analyst 620 620 726 726 726 IT Technician - - - 720 720 Mail Room Clerk (Library Dept. temps)250 250 250 250 250 Total Annual Hours 1,370 1,370 1,476 2,196 2,196 ADMINISTRATIVE SERVICES STAFFING D – 26 D – 27 Administrative Services TOWN MANAGER’S OFFICE ADMINISTRATION PROGRAM 2101 PROGRAM PURPOSE The Town Manager’s Office ensures that all Town programs and services are provided effectively and efficiently. The core services of the Town Manager’s Office are to: provide administrative direction and leadership for all Town Departments, programs, and services to ensure the community receives high quality services; oversee the Town Council agenda process to provide comprehensive information and analysis to the Town Council in a timely manner; support business attraction and retention through economic vitality efforts; provide staff support to all Council standing and Ad Hoc Committees and the Arts and Culture Commission; and facilitate associated projects and services of these Committees and Commissions; foster public awareness of, equitable access to, and engagement in municipal programs, services, and goals; and provide timely and accurate responses to constituent inquiries, concerns, and requests. Other key duties include providing direct staff assistance to the Mayor and Town Council on special projects and day-to-day activities, and initiating new or special projects under the direction of the Council that enhance the Town government and community. BUDGET OVERVIEW The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The FY 2017/18 Town Manager’s Office budget reflects a deletion of the Assistant to the Town Manager position and a 1.0 FTE addition of an Administrative Analyst position. In addition, a 0.63 FTE Administrative Analyst has been changed and funded to Economic Vitality Manager and increased to 0.75 FTE. The Economic Vitality Manager position is also funded partially through the Community Development Department. The budget also reflects Council action in April 2017 to add the new D – 28 ADMINISTRATIVE SERVICES  Town Manager’s Office job classification of Events and Marketing Specialist. This 0.5 FTE benefitted position is responsible for organizing, promoting, and implementing all Town events (e.g., Spring Into Green and Fourth of July), as well as processing the applications for Special Event Permits in coordination with Town Departments. As in prior years, the Town Manager’s Office will continue to direct its attention in managing key special projects and policies as reflected in the 2017-2019 Town Council Strategic Priorities. D – 29  ADMINISTRATIVE SERVICES  Town Manager’s Office ACCOMPLISHMENTS Core Goals Accomplishments Community Character Preserve and enhance the appearance, character, and environmental quality of the community • Provided oversight for Council Ad Hoc Committees regarding Planned Development, Parking and Infrastructure, and other topics. • Provided oversight to the Council Policy Committee as it evaluated a variety of land use policies and good government practices. • Assisted businesses to locate, expand, or stay in Los Gatos. • Hosted Spring into Green, which included the State of the Town and a variety of Town Departments and partners. Good Governance Ensure responsive, accountable, and collaborative government • Provided strategic direction to work collaboratively with the Oversight Board to the Successor Agency of the Los Gatos Redevelopment Agency, other cities in the County, Santa Clara County, and State offices to meet state-mandated requirements related to the dissolution of redevelopment agencies, while protecting Los Gatos’ enforceable obligations. • Continue to improve the Town’s website to provide timely, easy access to important information and services for the public through programs like What’s New, the Calendar, and Notify Me. • Represented the Town in County-wide and regional forums. • Enhanced community communications with the Town-wide Twitter and Facebook accounts consistent with the Town’s Social Media Policy. Initiated a Town Instagram page to continue to improve access to information and promote opportunities for involvement in public Town activities. Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of the community • Led the development of a comprehensive Town-wide budget. • Provided oversight to the Council Finance Committee, particularly as it added residents to the Committee and increased its meeting frequency to evaluate options to reduce the Town’s unfunded pension and other post-employment benefit liabilities. • Provided oversight to the Citizens Ad Hoc Committee as it evaluated and recommended potential revenue generation measures. D – 30  ADMINISTRATIVE SERVICES  Town Manager’s Office ACCOMPLISHMENTS Core Goals Accomplishments Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure • Supported the Council Policy Committee as it amended the Facilities Use Policy, Traffic Impact Fees, and Commission Appointment Policy. Additionally the Flag, Remote Participation, and Legislative Policies were recommended by the Committee and approved by Town Council. • Provided oversight to the Parking and Infrastructure Ad Hoc Committee as the Town works through the steps to plan and develop the downtown parking garage in partnership with a private builder. • Provided support and assistance to the Mayor and other Council members regarding Silicon Valley Clean Energy Authority. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment • Supported the Arts and Culture Commission in their development of its Strategic Plan. • Supported the Arts and Culture Commission in the implementation of the fourth phase of the Footbridge Restoration project and the Utility Art Box Program. • Provided oversight for the Leadership Los Gatos activities that promote community enrichment and involvement. • Worked with Music in the Park, Jazz on the Plazz, Fiesta de Artes, Farmers’ Market, and other community organizations regarding special events to ensure consistency across organizations. • Transitioned the Town events from the Parks and Public Works Department to the Town Manager’s Office and executed the Town’s annual Spring into Green event. • The Town Manager’s Office, along with the Library supported the Council’s priority to obtain an Age-Friendly Community Designation. D – 31  ADMINISTRATIVE SERVICES  Town Manager’s Office ACCOMPLISHMENTS Core Goals Accomplishments Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness • Continued to participate in County-led training programs and exercises. • Participated and helped to develop the Los Gatos portion of the Santa Clara County Operation Area Hazard Mitigation Plan. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Intergovernmental Revenues - - - - - - Service Charges 330 125 400 - - - Interest - - - - - - Other Revenues 6,122 1,054 13,147 1,000 1,470 1,527 TOTAL REVENUES 6,452$ 1,179$ 13,547$ 1,000$ 1,470$ 1,527$ EXPENDITURES Salaries and Benefits 899,830$ 915,803$ 851,984$ 880,039$ 632,859$ 959,924$ Operating Expenditures 37,267 73,897 23,773 34,875 33,723 76,202 Grants - - - - - - Pass Through Accounts 81 - - - - - Fixed Assets - - - - - - Internal Service Charges 62,423 70,003 75,220 91,555 91,555 96,176 TOTAL EXPENDITURES 999,601$ 1,059,703$ 950,977$ 1,006,469$ 758,137$ 1,132,302$ SUMMARY OF REVENUES AND EXPENDITURES D – 32  ADMINISTRATIVE SERVICES  Town Manager’s Office FY 2017/18 KEY PROJECTS Core Goals Key Projects Community Character Preserve and enhance the appearance, character, and environmental quality of the community Land Use Policies Review The Town Manager’s Office will continue to support the Council Policy Committee in its evaluation of land use policies. Business Attraction and Retention Economic Vitality staff will continue to assist businesses find available locations in Los Gatos and encourage diversity in the downtown. Staff will also continue to complete an Economic Vitality Strategic Plan. Events The Town Manager’s Office will oversee the Town’s Fourth of July events and the processing of other organizations’ events requiring a Town Special Event Permit. Good Governance Ensure responsive, accountable, and collaborative government Communication with the Public The Town Manager’s Office will optimize the use of the Town’s website and other communication tools, including social media, to enhance the availability and transparency of information and services for the public. Technology Priority Plan In collaboration with all departments, the Town Manager’s Office will complete an updated Technology Priority Plan and implement high priority projects to enhance productivity and customer service. Town Council Policies The Town Manager’s Office will continue to provide support, research, and analysis to the Policy Committee for the review and revision of Town policies regarding a wide range of topics. Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of the community Cost Containment The Town Manager’s Office will provide oversight on efforts to identify and implement employee benefit pension and other post-employment benefit costs containment measures to address long-term fiscal structural issues. Fiscal Planning Continue to support the Finance Committee and its evaluation of options to reduce unfunded liabilities. Property Asset Management The Town Manager’s Office will oversee research, analysis, and negotiations regarding the potential sale and/or lease of Town-owned properties. D – 33  ADMINISTRATIVE SERVICES  Town Manager’s Office FY 2017/18 KEY PROJECTS Core Goals Key Projects Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Cut Through Traffic The Town Manager’s Office, in collaboration with Parks and Public Works staff, will implement temporary measures during the summer months of 2017 and determine the viability of a permanent traffic circle at Wood Road and South Santa Cruz Avenue. Downtown Parking and Infrastructure The Town Manager’s Office, in collaboration with Parks and Public Works, will continue to support the Council Ad Hoc Committee on Parking and Infrastructure as it considers the steps to implement a new downtown parking garage. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Arts and Culture The Town Manager’s Office will support the Arts and Culture Commission in the fourth phase of the Footbridge Mural project and its proposed Gateway project. The Town Manager’s Office will also support the Parks and Public Works in implementing the Outside the Box Program. Cultural Partnerships The Town Manager’s Office will continue to oversee the ongoing partnerships with the Museums of Los Gatos, the Friends of the Los Gatos Library, and other organizations. Veterans Memorial The Town Manager’s Office will continue to work with the Veterans Foundation of Los Gatos and community stakeholders to establish a Veterans memorial at the Civic Center. Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Silicon Valley Regional Interoperability In collaboration with the Santa Clara County City Managers Association, the Town Manager’s Office will provide recommendations as needed to the Council regarding actions to migrate to regional communications and interoperability with other public safety agencies throughout the region. Emergency Preparedness The Town Manager’s Office will continue to support emergency preparedness activities in collaboration with the City of Monte Sereno and volunteer organizations. D – 34  ADMINISTRATIVE SERVICES  Town Manager’s Office KEY PROGRAM SERVICES • Provides staff support to the Mayor and Town Council. • Provides administrative direction and leadership over Town departments, programs, and services. • Oversees the Town’s organizational and fiscal management efforts and program development and evaluation processes. • Leads the preparation of the annual Operating and Capital Budgets. • Oversees and administers the Economic Vitality program. • Oversees the Town Council agenda process. • Provides centralized customer service through telephone, counter, and website assistance. • Provides staff support to the Finance Committee, Policy Committee, Parking and Infrastructure Ad Hoc Committee, and the Arts and Culture Commission. • Manages the provision of senior services and the long term lease of the Los Gatos Adult Recreation Center through an agreement with LGS Recreation. • Manages the contracts with NUMU, Friends of the Library, LGS Recreation, and other community organizations. • Manages the Community Grant process. • Oversees and executes Town events including Spring into Green, 4th of July, and Screen on the Green. • Processes all Special Event Permits. • Addresses resident complaints, inquiries, and requests. • Oversees continuous improvements in Town administrative processes, measurements, and other activities. • Provides public information and website management. • Oversees special projects and new initiatives, particularly during policy development stages. • Monitors and participates in regional activities to represent the Town interests. • Monitors state and federal legislation. D – 35  ADMINISTRATIVE SERVICES  Town Manager’s Office Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed 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 - - Administrative Analyst - - - - 1.00 Assistant to Town Manager 1.00 1.00 1.00 1.00 - Executive Asst. to Town Mgr.0.50 0.50 0.50 0.50 0.50 Office Assistant 1.28 1.28 0.63 0.38 0.38 Communications Coordinator - 0.80 0.80 - - Administrative Technician 0.50 - - - - Economic Vitality Manager - - - - 0.30 Economic Vitality Coordinator 0.25 0.25 0.25 0.25 - Events & Marketing Specialist - - - - 0.50 Total Manager's Program FTEs 5.53 5.33 4.68 4.13 4.68 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Facility Attendant 50 50 50 50 50 Administrative Analyst 100 100 100 100 100 Intern I 450 450 450 450 450 Total Annual Hours 600 600 600 600 600 TOWN MANAGER'S OFFICE STAFFING D – 36  ADMINISTRATIVE SERVICES  Town Manager’s Office 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Estimated Proposed Human Services Grants Live Oak Adult Day Services 13,094$ 13,000$ 13,000$ 13,000$ 13,000$ Live Oak Sr. Nutrition and Service 26,360 26,500 26,500 28,500 29,000 Next Door Solutions Dom. Violence 15,000 15,000 15,000 15,000 6,000 Parents Helping Parents 2,000 2,000 2,000 - 1,000 Support Network 6,000 6,000 6,000 6,000 - United Way - 211 Funding 2,400 2,500 2,500 2,500 - Counseling and Support Services for Youth 15,000 16,800 15,000 15,000 10,000 West Valley Community Services 2,360 10,000 10,000 20,000 20,000 LGS - Case Management - 7,000 - - - LGS Recreation - 55+ Program - - - - 10,000 LGS Recreation - Clubhouse Scholarship - - - - 11,000 Total Human Services Grants 82,214$ 98,800$ 90,000$ 100,000$ 100,000$ Arts, Cultural & Educational Grants Art Docents of Los Gatos 4,000$ 4,000$ 3,000$ 4,000$ 4,000$ Festival Theatre Ensemble 1,400 1,400 - - - Los Gatos Community Concert 1,000 1,000 1,000 3,800 5,000 Cat Walk 8,000 4,200 3,000 - - Youth Science Institute - - 5,000 - New Museum Los Gatos - Explorer Program - 4,000 5,000 7,000 6,500 New MuseumLos Gatos - Cataloguing 2,800 Morning Rotary - - - - 1,500 St. Luke’s/Sunset Concert Series 1,000 1,000 - - - Total Arts, Cultural & Educational Grants 15,400$ 15,600$ 12,000$ 19,800$ 19,800$ Total Grant Funding 97,614$ 114,400$ 102,000$ 119,800$ 119,800$ Arts Funding Forbes Mill 2,236 4,200 5,800 - - Arts & Culture Commission 2,000 5,000 Total Arts Funding 2,236$ 4,200$ 7,800$ -$ 5,000$ Grand Total 99,850$ 118,600$ 109,800$ 119,800$ 124,800$ GRANTS AND ARTS FUNDING SUMMARY D – 37  ADMINISTRATIVE SERVICES  Town Manager’s Office Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of Town Council reports available 120 hours prior to Town Council meetings:* (Prior to FY 2015/16, reports were available 96 hours prior to Town Council meetings) 100%100%See Clerk See Clerk See Clerk 2. a.9%12%10%12%10% 3. a.Percentage of public art pieces in good to excellent condition: 86%86%86%86%86% b.Resident satisfaction with Arts and Cultural opportunities in Los Gatos: 99%99%99%99%99% 4. a.Percentage of businesses satisfied or very satisfied with business assistance received: 98%98%98%98%98% Oversee the Town Council Agenda process to ensure comprehensive information and analysis is provided to the Town Council in a timely manner. Supplement resources for nonprofit agencies providing human services and art, cultural, and educational programming so that residents may maintain or improve their quality of life. The average percentage of a grantee's budget that comes from the Town's grant contributions: Foster a comprehensive arts environment in Los Gatos through the support, development, and appreciation of the arts. Foster business growth and success to provide jobs and enhance economic vitality. Ensure efforts are being made for business attraction, retention, and promotion. D – 38  ADMINISTRATIVE SERVICES  Town Manager’s Office Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.181 212 See Clerk See Clerk See Clerk 2.175 196 238 325 400 3. a.Number of Human Service grants:8 8 8 7 8 b.Number of Arts/Cultural/Educational grants:6 5 6 4 5 4.$99,850 $111,600 $109,800 $119,800 $119,800 5.7,550 10,032 6,920 6,176 6,903 6.4 4 4 3 3 7.Data Not Available Data Not Available 30 25 25 8.Data Not Available Data Not Available 315 300 300 9.60 65 Data Not Available Data Not Available Data Not Available 10.175 125 Data Not Available Data Not Available Data Not Available 11.135 60 Data Not Available Data Not Available Data Not Available 12.190 250 Data Not Available Data Not Available Data Not Available * This measure was moved to Clerk Department during FY 2015/16. ** New measure effective FY 2015/16. Number of attendees at events and meeting designed to attract, retain and educate businesses, and foster commerce: Number of businesses receiving general business liaison assistance: Number of businesses receiving direct business support including in person and phone meetings, and interface through OpenCounter: Commercial Brokers/Property Owner Outreach Communications: Number of community/customer referrals: Number of Town Council agenda reports processed:* Number of events, presentations or meetings designed to attract, retain or educate businesses.** Number of business, commercial property owners, and industry professionals receiving business liaison services through the Economic Vitality Office. ** Number of Art in the Council Chambers exhibitions installed and curated: Grant agreements administered: Number of Los Gatos residents directly served by Town grant-funded organizations: Total dollar amount of General Fund grant agreements administered: D – 39 Administrative Services HUMAN RESOURCES PROGRAM 2201 PROGRAM PURPOSE The purpose of the Human Resources Program is to attract, develop, and retain a quality workforce to provide high quality Town services. It accomplishes this by providing effective and efficient employee recruitment and retention, professional development, training, organizational development, compensation and classification administration, employee relations support, safety and workers’ compensation administration, benefit administration, and policy and procedure development and administration. Employee relations activities emphasize proactive and preventive informal resolution of employee and management concerns. Program staff is responsible for the development of Memoranda of Understanding (MOU’s) with the Town’s three bargaining units and informal discussions with the Town’s management and confidential employees, all subject to Council direction and approval. BUDGET OVERVIEW The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The FY 2017/18 Human Resources Budget also reflects the deletion of a 0.13 FTE Office Assistant position that will be fully funded through the Clerk and the Town Manager’s Office. In addition, the budget shows a one-time funding of a 0.5 FTE Human Resources Analyst position dedicated to complete special projects within the program. Human Resource staff will continue to assist the organization with filling critical Town-wide positions through effective recruitment and selection methods and will continue to assist Departments in restructuring and redesigning jobs for efficiencies as vacancies become available. D – 40  ADMINISTRATIVE SERVICES  Human Resources ACCOMPLISHMENTS Core Goals Accomplishments Good Governance Ensure responsive, accountable and collaborate government • Supported the new Assistant Town Manager recruitment and onboarding. • Implemented electronic filing of all personnel records via Laserfiche to improve workflow and transferred all existing hardcopy personnel records to Laserfiche. • Successfully recruited and onboarded 24 positions. • Audited a significant number of job descriptions and created, deleted or refreshed classifications to capture current job duties, physical requirements, knowledge/skills/abilities, and minimum educational and experience requirements. • Completed labor negotiations with the Town’s three bargaining units. • Achieved full staffing within the Human Resources Department to better meet the service needs of other Town Departments. D – 41  ADMINISTRATIVE SERVICES  Human Resources 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Intergovernmental Revenues - - - - - - Service Charges - - - - - - Interest - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits 285,330$ 357,130$ 330,228$ 427,170$ 355,173$ 504,240$ Operating Expenditures 115,213 97,826 204,794 142,156 184,700 142,156 Grants - - - - - - Pass Through Accounts - - - - - - Fixed Assets - - - - - - Internal Service Charges 23,300 29,335 24,590 32,219 32,219 37,562 TOTAL EXPENDITURES 423,843$ 484,291$ 559,612$ 601,545$ 572,092$ 683,958$ SUMMARY OF REVENUES AND EXPENDITURES D – 42  ADMINISTRATIVE SERVICES  Human Resources FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable and collaborate government Personnel Rules and Regulations Complete the process to review and update the Town’s Personnel Rules and Regulations, which includes: meeting and conferring with employee groups regarding the proposed changes and bringing a recommendation to the Town Council to formally adopt a resolution accepting the revisions. Labor Relations Initiate and complete negotiations before contracts expire on June 30, 2018 for TEA and AFSCME and begin preparations to negotiate with LGPOA whose contract expires on September 30, 2018. Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of the community Recruitment Improve efficiencies within the recruitment process, such as: • Initiating advertising and outreach through social media and career fairs. • Creating job announcement templates by bargaining unit or employee group. • Transferring all job descriptions and salary schedules to NeoGov to streamline new job posting timelines. Succession Planning Partner with Departments to identify future retirements and create a plan to ensure the transfer of institutional knowledge while simultaneously providing training opportunities to prepare employees for upcoming promotional opportunities. Wellness Program Reinvigorate the Town’s employee wellness program to promote a healthy work environment. D – 43  ADMINISTRATIVE SERVICES  Human Resources KEY PROGRAM SERVICES • Provides effective administration of employee relations program. • Conducts employee training and organizational development assessments. • Administers employee benefits. • Administers the Town’s recruitment and selection programs. • Administers classification and compensation plans. • Provides information and interpretation regarding Town personnel rules, regulations and procedures, MOUs, and ordinances. • Resolves personnel issues. • Maintains employee personnel files, records, and documentation. • Administers the workers’ compensation and safety programs, including supporting the Town’s employee Health and Safety Committee. • Develops, implements, and maintains administrative policies and procedures. • Serves as advisor to employee recognition program. • Provides support for Personnel Board activities. Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Human Resources Director 0.75 0.75 0.75 0.75 0.75 Administrative Analyst 0.80 0.80 0.80 0.80 1.30 Human Resources Specialist 0.50 1.00 1.00 1.00 1.00 Office Assistant - - - 0.13 - Total Human Resources FTEs 2.05 2.55 2.55 2.68 3.05 HUMAN RESOURCES PROGRAM STAFFING D – 44  ADMINISTRATIVE SERVICES  Human Resources Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of employees rating benefit program material, products, and services as good to excellent: 90%89%89%94%94% 2. a.Percentage of employees rating the effectiveness of training classes as good to excellent: 90%71%71%81%81% b.Percentage of employee evaluations completed by due date:60%90%90%90%95% 3. a.Percentage of employees rating safety programs as good or excellent based on quality, content, and response: 86%78%78%76%80% 4. a.Percentage of labor agreements ratified prior to expiration of existing contracts:0%Not Applicable 0%0%50% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.196 210 186 181 190 2.22 25 30 24 30 3.2451 3,687 2,914 1,936 2,200 4.15 10 14 5 10 5.48%50%49%45%50% 6.53 50 51 52 50 To provide effective and efficient safety programs. To provide effective and efficient employee recruitment and retention. To provide effective and efficient professional development, training, and organizational development. To provide effective and efficient employee relations support. Percentage of eligible employees participating in deferred compensation: Number of sick leave hours used per benefitted employee: Number of Workers' Compensation claims filed: Number of (full-time, part-time, and temporary) Number of recruitments conducted: Number of employment applications processed: D – 45 Administrative Services FINANCE PROGRAM 2301 PROGRAM PURPOSE The Finance Program assures fiscal accountability to the Council and to the public. The Finance Program’s core services are to: provide financial oversight and administer accounting functions for all of the Town’s funds and accounts; prepare the Town’s Annual Operating and Capital Budgets for fiscal and service accountability; coordinate the annual financial audit and preparation of the Comprehensive Annual Financial Report (CAFR) to verify that proper fiscal practices are maintained; administer the Town’s Business License, Accounts Payable, Accounts Receivable, and Payroll functions; and oversee the Town’s Purchasing and Claims Administration functions, ensuring proper practices are in place, and that fiscal and operational responsibility is upheld. BUDGET OVERVIEW The Finance Program’s FY 2017/18 budget reflects an increase in business license tax revenue due to the increased economic activity in Los Gatos. Business License revenue is based on the anticipated number of licensed businesses and gross receipts activity. The Finance Program continues to monitor receipts and improve collections. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The FY 2017/18 budget also reflects the reclassification of the Account Technician position to Administrative Analyst position. This change in title is accompanied by a change in duties to include additional support for budget, cross training in confidential finance functions, and daily departmental duties. D – 46  ADMINISTRATIVE SERVICES  Finance ACCOMPLISHMENTS Core Goals Accomplishments Good Governance Ensure responsive, accountable and collaborate government • Coordinated a successful FY 2015/16 financial and compliance audit of the Town of Los Gatos. • Achieved the Government Finance Officers Association’s Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report (CAFR) for FY 2015/16. • Achieved the GFOA’s Distinguished Budget Presentation Award for the FY 2016/17 Operating Budget. • Achieved the California Society of Municipal Finance Officers’ Operating Budgeting Excellence Award for FY 2016/17. • Achieved the CSMFO’s Capital Budgeting Excellence Award for FY 2016/17. • Completed State Controller’s “Cities Annual Report” and “Streets Report”. Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of the community • Managed the coordination and on-time preparation of the FY 2017/18 Operating Budget and FY 2017/18-2021/22 Capital Improvement Program for Council consideration. • Managed the preparation, coordination, production, and adoption of FY 2017/18 Comprehensive Fee and Fine Schedules. • Managed the Town’s investments and prepared quarterly investment reports. • Supported the Successor Agency and its required filings. • Conducted analyses for the Council Finance Committee and Town Council regarding options to pay down unfunded liabilities. • Supported the Citizens Ad Hoc Committee as it considered and recommended new dedicated revenue sources for the Town’s Capital Improvements Program. • Provided ongoing fiscal controls for contracts and other Town expenditures. D – 47  ADMINISTRATIVE SERVICES  Finance 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes 1,130,020$ 1,779,407$ 1,465,547$ 1,300,000$ 1,450,000$ 1,575,000$ Intergovernmental Revenues - - - - - - Service Charges 303 526 155 - - - Interest 625,298 430,476 620,895 331,193 270,723 270,723 Other Revenues - - - - - - TOTAL REVENUES 1,755,621$ 2,210,409$ 2,086,597$ 1,631,193$ 1,720,723$ 1,845,723$ EXPENDITURES Salaries and Benefits 839,313$ 858,171$ 807,744$ 1,019,097$ 787,051$ 1,036,064$ Operating Expenditures 120,522 136,449 123,678 166,650 167,800 169,800 Grants - - - - - - Pass Through Accounts - - - - - - Fixed Assets - - - - - - Internal Service Charges 61,957 63,373 61,342 78,227 78,227 73,743 TOTAL EXPENDITURES 1,021,792$ 1,057,993$ 992,764$ 1,263,974$ 1,033,078$ 1,279,607$ SUMMARY OF REVENUES AND EXPENDITURES D – 48  ADMINISTRATIVE SERVICES  Finance FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Financial System Upgrade Identify system parameters and evaluate potential replacement options of the Town’s financial/personnel information system to support Town- wide budget-related operations and community needs. Electronic General Ledger Journal Entry Files Continue to scan General Ledger Journal Entry Files to store electronically in Laserfiche. Department Cross Training in Key Functional Areas Continue to cross train in key functional areas of the Finance Department with an emphasis on Payroll. Online Timesheets Research viability of online submittal and approval of payroll timesheets, through the existing financial information system. Implementation would be done through a phased approach. Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of the community Comprehensive Fee Study Complete a comprehensive fee study for the Town to evaluate cost recovery and recommend potential fee schedule modifications for FY 2018/19. Long-Term Budget Development Provide support, analysis, and recommendations to restructure and reduce long-term projected increases in employee salary and benefit costs. Explore ways to generate one-time or ongoing funds through any idle assets. Business License Amnesty Program Identify terms and conditions, timeframe, and notify businesses of a potential amnesty program. Provide compliance period in which businesses can pay business license with no penalty. Town Council Finance Committee Support the Town newly enlarged Finance Committee as they pursue finding strategies to address the Town’s unfunded pension and OPEB liabilities. D – 49  ADMINISTRATIVE SERVICES  Finance KEY PROGRAM SERVICES • Develops and monitors the Town’s Annual Operating and Capital Budgets in accordance with Governmental Finance Officer Association (GFOA) guidelines. • Coordinates the annual audit of the Town’s financial statements and preparation of the Comprehensive Annual Financial Report (CAFR). • Maintains the Town’s financial information system for record-keeping and reporting of all financial transactions. • Oversees Town’s Investment portfolio. • Manages Other Post-Employment Benefits (OPEB) Trust. • Track existing enforceable obligations that must be paid over the remaining life of the debt service. • Provides Accounts Payable and Payroll disbursement and reporting services; Accounts Receivable invoicing, revenue collection, and cash reconcilement; and Business License Tax processing and auditing services. • Provides accounting, arbitrage reporting, and claim reimbursement services for bond issues. • Provides oversight of procurement functions including Purchase Order processing, financial tracking of contracts, vendor resolution issues, and proper accounting allocation. D – 50  ADMINISTRATIVE SERVICES  Finance Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Finance & Admin. Director 1.00 1.00 1.00 1.00 1.00 Finance & Budget Manager 0.80 1.00 1.00 1.00 1.00 Accountant/Fin Analyst 1.00 1.00 1.00 1.00 0.99 Payroll Specialist 0.95 0.95 0.95 0.95 0.95 Administrative Analyst - - - 0.90 1.80 Administrative Technician 0.90 0.90 0.90 - - Account Technician 1.25 1.25 1.25 1.25 0.35 Total Finance Services FTEs 5.90 6.10 6.10 6.10 6.09 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Funded Funded Funded Funded Proposed Project Manager - - - - - Intern - - - - - Administrative Analyst 520 520 626 626 626 HR Specialist Mail Room Clerk(Library Dept Temps)250 250 250 250 250 Total Annual Hours 770 770 876 876 876 FINANCE PROGRAM STAFFING D – 51  ADMINISTRATIVE SERVICES  Finance Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Average rate of return on investments:0.67%0.85%0.86%0.88%8.80% 2. a.Town Financial Statements receive an 'Unqualified Opinion' from the Town's independent auditor:Yes Yes Yes Yes Yes b. Governmental Finance Officer Association (GFOA) 'Certificate of Achievement of Excellence in Financial Reporting' awarded to the Town:Yes Yes Yes Yes Yes 3. a.Governmental Finance Officer Association (GFOA) 'Certificate of Achievement of Excellence in Budgeting' awarded to the Town: Yes Yes Yes Yes Yes 4. a.Percent of State Controller's annual financial reports completed and filed by deadlines:100%100%100%100%100% b. Percent of County annual financial reports completed and filed by deadlines:100%100%100%100%100% c.Percent of time revenue analyses completed within 30 days of month-end:*100%100%Data Not Available Data Not Available Data Not Available d.Percent of time bank statements reconciled to general ledger within 30 days of month-end:*100%100%Data Not Available Data Not Available Data Not Available e.Percent of quarterly reports completed and submitted to Council by deadlines:** Data Not Available Data Not Available 100%100%100% 5. a.Percentage of Accounts Payable invoices paid accurately:99%99%99%99%99% b.Percentage of Payroll checks paid accurately and on-time:99%99%99%99%99% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.4 4 4 4 4 2. 0 0 0 0 0 3.8,641 9,156 8,443 8,500 8,500 4.71 68 75 72 75 5.186 183 186 182 186 6.4,386 4,013 4,389 4,400 4,400 * During FY 2015/16, the method for calculating this performance measure was changed. See measure #4e. ** New measure effective FY 2015/16. Number of Business Licenses issued annually: Provide financial oversight and administer accounting functions for all Town funds and accounts. Annual number of invoices entered into the Accounts Payable system: Number of general ledger corrections needed during audit due to processing error: Average number of Accounts Payable checks issued weekly: Quarterly investment reports to Town Council: Average number of regular and temporary employee payroll checks issued bi-weekly: Assure legal and fiscal accountability to the public, in compliance with established accounting standards. Prepare accurate budget forecasts and workplans in compliance with standard budgeting practices. Provide timely and accurate financial reports within specified deadlines. Provide oversight of Town investment activities to obtain highest available portfolio earnings in accordance with State and Town Codes. D – 52 D – 53 Administrative Services CLERK A D MIN ISTRATION PROGRAM 2401 PROGRAM PURPOSE The Clerk Administration Program serves the public by providing information and assistance related to Town records; Council actions; Boards, Commissions, and Committees; public meetings; and elections. Currently, core services include maintaining key Town records through the timely indexing of resolutions, ordinances, minutes, rosters, recordings, and agreements. The program is focused on making Town records accessible by adding to the electronic repository of documents. The program’s ultimate goal is to have all Town public records accessible to the public through the Town’s website. The Clerk Administration Program also recruits individuals to serve on the Town’s advisory bodies and assists them with the document filing requirements of the Fair Political Practices Commission. The Clerk Administration Program handles Town-related election activities and coordinates its efforts with the Santa Clara County Registrar of Voters to ensure an efficient election process. The Clerk Administration Program also manages the Council agenda packet preparation, posting, and distribution. BUDGET OVERVIEW The FY 2017/18 budget for the Clerk Administration Program reflects a restructuring of the administrative staff in conjunction with the Town Manager and Town Offices programs which reallocates 1.0 FTE Office Assistant to the Clerk Administration program. The Clerk Administration program’s budget reflects increased salaries and benefits resulting from this reallocation as well as a slight increase in salaries and benefits attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. D – 54  ADMINISTRATIVE SERVICES  Clerk Administration ACCOMPLISHMENTS Core Goals Accomplishments Good Governance Ensure responsive, accountable and collaborative government • The Clerk Department completed a comprehensive review and update of the Commission Appointment Policy. • The Clerk Department, the Town Manager’s Office, and the Information Technology Department completed the process of implementing public facing access to folders in LaserFiche to enable staff and the public to search for ordinances and resolutions via the Town’s website. • The Clerk Department successfully implemented Peak Agenda, an add-on program to the Town’s agenda management software, to improve efficiency, reduce preparation and publication time, and reduce the amount of paper used. • The Clerk Department and IT Department successfully implemented SeamlessDocs, a software program that enables the electronic filing of all Board, Commission, and Committee applications. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Public Engagement The Clerk Department celebrated Municipal Clerks Week in May by inviting the public into the Clerk’s office for tours and to increase the public’s awareness of Municipal Clerks and the vital services they provide for local government and the community. D – 55  ADMINISTRATIVE SERVICES  Clerk Administration FY 2017/18 KEY PROJECTS 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Intergovernmental Revenues - - - - - - Service Charges - - - - - - Interest - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits 116,145$ 138,712$ 243,127$ 270,258$ 266,112$ 294,742$ Operating Expenditures 17,316 17,102 17,013 22,900 15,100 21,305 Grants - - - - - - Pass Through Accounts - - - - - - Fixed Assets - - - - - - Internal Service Charges 29,262 12,565 16,278 18,239 18,239 18,914 TOTAL EXPENDITURES 162,723$ 168,379$ 276,418$ 311,397$ 299,451$ 334,961$ SUMMARY OF REVENUES AND EXPENDITURES Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Records Retention Policy Update The Clerk Department and Town Attorney will be conducting a comprehensive review and update of the Town’s retention practices and schedule. Purchasing Policy Update The Clerk Department will work with the Town Attorney and Finance Department to review and update the Purchasing Policy. Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Public LaserFiche Accessibility The Clerk Department makes various public documents available to the public through the Town’s website. The Clerk Department continues to add documents to the repository so that the public can access documents directly through the Town’s website. D – 56  ADMINISTRATIVE SERVICES  Clerk Administration KEY PROGRAM SERVICES • Prepares and distributes all Town Council and Council Committee agenda packets. • Provides public notice of Town Council, Commission, Committee, and Board meetings. • Coordinates recruitment and appointment process for Town Boards, Commissions, and Committees. • Accepts and files appropriate documents associated with municipal elections. • Acts as Filing Official for the Town’s Conflict of Interest Code (Form 700) in conformance with the requirements of the Fair Political Practices Commission. • Preserves and maintains the Town records and legislative history. • Responds to Public Records Act requests. • Provides risk management services, and processes and monitors all Town contracts. Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Clerk Administrator 0.50 1.00 1.00 1.00 1.00 Office Assistant - - 1.00 1.25 1.38 Administrative Technician 0.50 - - - - Total Clerk Admin FTEs 1.00 1.00 2.00 2.25 2.38 CLERK ADMINISTRATION STAFFING D – 57  ADMINISTRATIVE SERVICES  Clerk Administration Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of resolutions, agreements, and ordinances indexed within five business days:99%99%99%99%99% b.Percentage of Town Council Minutes prepared within five business days:95%99%99%99%99% 2. a.Percentage of Town Council reports available 120 hours prior to Town Council meetings:* (Prior to FY 2015/16, reports were available 96 hours prior to Town Council meetings) 100%100%100%100%100% 3. a.Percentage of Public Records requests received by the Town Clerk's Office that are completed within 10 days.**Data Not Available 95%95%95%95% 4.95%99%99%99%99% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.Number of Legislative Records indexed: a.Number of resolutions indexed:77 72 50 70 65 b.196 222 302 275 275 c.59 79 80 75 75 d.Number of ordinances indexed:9 13 12 5 8 2. 46 76 97 95 95 3.Number of commission and board seats available:****71 75 90 90 90 4.153 117 156 160 165 5.140 107 173 185 185 6.15 15 12 15 15 7.1,500 1,500 1,500 1,500 1,500 8.425 325 352 365 375 9.181 212 320 295 300 10.Number of Public Records Act requests processed:***92 152 162 170 175 * This measure moved from Town Manager Office during FY 2015/16. ** New measure effective FY 2014/15. *** This measure moved from Town Attorney Office during FY 2015/16. ***This measure used to read "Number of advisory board seats available". Changed to "commission and board" to align better with the related measure #2. Provide efficient and effective indexing of key documents to ensure adequate tracking of and accessibility to the Town's legislative history. Number of agreements indexed: Number of documents recorded: Percentage of vacancies filled on an annual basis to maximize community participation within the Town's advisory bodies. Oversee the Town Council Agenda process to ensure comprehensive information and analysis is provided to the Town Council in a timely manner. Number of Town Council agenda reports processed:* Oversee the Public Records Act requests in a timely and effective manner. Number of commission and board applications and appointments processed: Number of required insurance certificates verified: Number of bids processed and project files monitored for final action: Number of Town records processed for retention: Number of Legal Notices published within established timelines: Number of Fair Political Practices Commission (FPPC) Form 700: D – 58 D – 59 Administrative Services NON-DEPARTMENTAL PROGRAM PROGRAM 1201 PROGRAM PURPOSE Appropriated funds are provided in the Non-Departmental Program to account for a variety of Town services and activities not specifically attributable to individual Departments. Tax revenues, license and permit fees, and intergovernmental revenues are generated as a result of overall government operations. Non-Departmental employee and retiree expenditures, Town- wide organizational costs, Town memberships, and joint-agency service agreements benefiting the entire Town are also contained in the Non-Departmental Program. BUDGET OVERVIEW The majority of the Town’s general revenues are accounted for in the Non-Departmental Program. Current trends in some tax revenues indicate that the local economy is continuing to be strong. The FY 2017/18 proposed General Fund budget assumes growth trends in economically sensitive revenue sources such as Property Tax, Transient Occupancy Tax, and Franchise Fees. The FY 2017/18 Sales Tax projection is declining overall as online sales continue to detract from brick and mortar shops and due to the Netflix business model change. As a result, these estimates are conservative and the Town will continue its proactive efforts to retain and protect vital revenue sources, align Town services with projected revenue streams to improve and enhance efficiencies, and manage staff deployment consistent with service delivery. Los Gatos, like all California cities, has experienced increases in the employer’s share of its public retirement system contributions, a cost factor that is in large measure immune to employer control. California Public Employees’ Retirement System (CalPERS) offers a defined benefit plan where retirement benefits are based on a formula, rather than contributions and earnings to a savings plan. Retirement benefits are calculated based on a member’s years of service credit, age at retirement, and final compensation (average salary for a defined period of D – 60  ADMINISTRATIVE SERVICES  Non-Departmental employment). Effective during FY 2012/13 a 3-tier employee retirement formula system was adopted. Under this system, the retirement formula for existing public safety employees remained at 3% at age 50; however, for “new” safety employees first hired into any public pension system after 1/1/13, the calculation is 2.7% at age 57. Likewise, the retirement calculation for all other employees (known as miscellaneous) has changed. Employees hired prior to 9/15/12 maintain the 2.5% at age 55 calculation; however, for employees hired after 9/15/12 and before 1/1/13 the formula is 2% at age 60 and for “new” employees hired after 1/1/13 the formula is 2% at age 62. The tiered benefit package helps to offset some of the Town’s future increasing costs of retirement contributions due to negative investment returns in the State of CalPERS pension system and changes to the CalPERS calculation basis. Further, employer rates have increased annually for both miscellaneous and sworn public safety employees. The CalPERS rates for FY 2017/18 are either 39.56% or 12.73% for public safety employees, depending on date of entrance into CalPERS, and 27.36% for miscellaneous employees. While historically the Community Outreach Coordinator position has been funded in the Town’s Non-Departmental Program, the work occurs in the Police Department. Therefore, with this budget, the funds are being transferred to the Personnel and Community Service program. Most Non-Departmental expenditures for FY 2017/18 have stayed relatively flat. There are increases associated with Post-Employee Medical cost increases and election costs. The Non- Departmental Program will continue to fund the following: • $1,600,000 for the actuarially-required contribution for post-retirement benefit and pension obligations. The Governmental Accounting Standards Board Statement No. 45 (GASB 45) requires that the Town accrue an annual expenditure on its financial statements for the cost of providing post-retirement health care costs. • $1,238,775 for the lease payment on the Town’s Library building as pledged under the 2010 Certificates of Participation. This payment is offset by a reimbursement from the Successor Agency to the Los Gatos Redevelopment Agency, with a result of no net impact on the Town’s General Fund budget. • $1,014,000 for the cost of covering the Town’s portion of retiree medical insurance premiums. The Town has paid for this expenditure since the Town became a member of the CalPERS medical plan as it is part of the CalPERS agreement. D – 61  ADMINISTRATIVE SERVICES  Non-Departmental • $675,974 for the lease payment on the Town’s Corporation Yard property as pledged under the 2002 Certificates of Participation. This payment is offset by a reimbursement from the Successor Agency to the Los Gatos Redevelopment Agency, with a result of no net impact on the Town’s General Fund budget. • $215,000 for animal control services provided by the City of San Jose. The Town entered into a 20-year agreement with the City of San Jose effective July 1, 2004. • $139,900 for Santa Clara County’s Tax Administration fee for collecting and processing of the Town’s assorted tax receipts. • $75,000 for the Town Manager’s Contingency and Productivity Funds to address unforeseen situations or opportunities that may arise during the fiscal year. • $50,000 for the Los Gatos Chamber of Commerce contract to provide support for the Chamber’s information center and implementation of the Town’s Leadership Los Gatos program. • $50,000 for comprehensive Town-wide fee study. • $44,500 for additional special studies when needed. • $10,000 for organizational development and training to address needs of the Town organization when opportunities arise. • $17,000 for a pilot project to provide senior transportation services within the West Valley. The program will provide predominantly volunteer door to door transport services to seniors at a discounted or subsidized rate. The Non-Departmental program budget also reflects a transfer of $2.5 million from the Reserve for Capital Projects and prior year-end saving to the General Fund Appropriated Reserves (GFAR) to support the Capital Improvement Program (CIP). The transfer will assist with general capital projects including park, street and facilities upgrades and improvements. D – 62  ADMINISTRATIVE SERVICES  Non-Departmental 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Property Tax 9,054,908$ 10,113,287$ 10,779,434$ 10,458,633$ 11,051,936$ 11,383,073$ VLF Backfill Property Tax 2,657,404 2,818,316 2,984,023 3,013,840 3,237,000 3,269,370 Sales & Use Tax 8,029,571 8,202,678 7,501,175 8,164,403 8,814,956 7,972,195 Franchise Fees 2,063,756 2,215,430 2,258,892 2,191,120 2,221,120 2,287,390 Other Taxes - - - - - - Transient Occupancy Tax 1,512,846 1,896,721 1,943,166 1,900,000 2,000,000 2,060,000 Licenses & Permits 20,175 90,161 33,781 24,790 24,880 25,530 Intergovernmental Revenues 23,262 199,674 74,003 10,460 10,460 10,460 Lease Payments 1,935,578 1,928,056 1,922,398 1,923,303 1,923,303 1,914,739 Charges for Services 124,940 126,694 127,425 125,350 125,350 125,730 Fines & Forfeitures - - - - - - Interest - - - - - - Other Sources 1,084,766 401,260 148,505 727,303 437,420 437,420 TOTAL REVENUES 26,507,206$ 27,992,277$ 27,772,802$ 28,539,202$ 29,846,425$ 29,485,907$ TRANSFERS IN Transfer from Parking District -$ -$ 179,204$ -$ -$ -$ Transfer from Blackwell Dst 460 460 460 460 460 460 Transfer from Kennedy Meadow Dst 1,510 1,510 1,510 1,510 1,510 1,510 Transfer from Gemini Court Dst 610 610 610 610 610 610 Transfer from Santa Rosa Dst 660 660 660 660 660 660 Transfer from Vasona Heights Dst 1,430 1,430 1,430 1,430 1,430 1,430 Transfer from Hillbrook Dst 250 250 250 250 250 250 Transfer from Capital Project Funds 105,703 108,429 540,792 102,000 102,000 102,000 Transfer from Traffic Mitigations 1,679 5,504 12,147 10,000 10,000 10,000 Transfer from Gas Tax 106,000 106,000 106,000 106,000 106,000 106,000 Transfer from 942 SA Housing Trust 110,635 86,957 69,654 7,700 7,700 6,300 TOTAL TRANSFERS IN 328,937$ 311,810$ 2,401,404$ 230,620$ 230,620$ 229,220$ TOTAL REVENUES & TRANSFERS 26,836,143$ 28,304,087$ 30,174,206$ 28,769,822$ 30,077,045$ 29,715,127$ EXPENDITURES Salaries and Benefits 5,009,137$ 407,216$ 371,680$ 386,462$ 452,921$ 250,000$ Operating Expenditures 2,742,120 2,827,913 3,399,896 3,651,586 4,091,921 3,677,490 Charges for Services 5,169 5,254 5,359 5,674 1,419 - Debt Service 1,935,578 1,928,056 1,922,398 1,923,303 1,923,303 1,914,739 TOTAL EXPENDITURES 9,752,762$ 5,230,442$ 5,761,887$ 6,032,025$ 6,534,564$ 5,907,229$ TRANSFERS OUT Transfers to GFAR 2,869,697$ 7,271,491$ 531,014$ 9,859,973$ 6,963,773$ 2,482,227$ Transfers to Solid Waste - 100,000 50,000 - - - Transfer to SA Housing 21,687 - - - - - TOTAL TRANSFERS OUT 2,891,384$ 7,371,491$ 581,014$ 9,859,973$ 6,963,773$ 2,482,227$ TOTAL EXPEND'S & TRANSFERS 12,644,146$ 12,601,933$ 6,342,901$ 15,891,998$ 13,498,337$ 8,389,456$ SUMMARY OF REVENUES AND EXPENDITURES D – 63  ADMINISTRATIVE SERVICES  Non-Departmental Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Community Outreach Coordinator 1.00 1.00 1.00 1.00 - Total Clerk Admin FTEs 1.00 1.00 1.00 1.00 - NON-DEPARTMENTAL STAFFING D – 64 D – 65 Administrative Services INFORMATION TECHNOLOGY FUND 621 FUND PURPOSE Information Technology Services (IT) supports the delivery of services to all the Town’s employees and customers through the use of SMART technology (Sensible, Multi-modal, Accessible, Responsive, and Time-phased Technology). Key services include the maintenance, replacement, and upgrade of existing technology and the support for new information technology initiatives. In meeting the Town organization’s information technology needs, the IT Program strives to achieve the following goals: • Enhance and improve customer service • Maintain and enhance a sound, secure, and reliable IT infrastructure • Use information technology to provide seamless services • Operate as a team to achieve information technology goals BUDGET OVERVIEW The FY 2017/18 budget for IT recognizes the continued need to identify and invest in information technology opportunities. Continued investment is a cost-effective approach to maintain or potentially improve service delivery levels in a fiscally prudent manner. To this end, in FY 2017/18 the Town’s IT Master Plan will be updated. The IT Program receives revenues through charges to General Fund and Special Revenue departmental programs based on employee category and equipment replacement costs. Service rates are adjusted to build fund balance capacity for future technology projects. The FY D – 66  ADMINISTRATIVE SERVICES  Information Technology 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. IT program expenses are budgeted to increase for FY 2017/18 due to the scheduled replacement of wireless network systems. ACCOMPLISHMENTS Core Goals Accomplishments Good Governance Ensure responsive, accountable, and collaborative government Completed new, improved, and upgraded systems, including the following: • Online mapping upgrades • Power backup upgrades • Office 365 email upgrade • Office 2016 Suite upgrade • Electronic forms, signatures, and workflow • PC, laptop, and server replacements • Accela development application system upgrade • Mobile computers for field staff • Police computer aided dispatch and reports upgrades D – 67  ADMINISTRATIVE SERVICES  Information Technology 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 2,495,698 2,661,265 2,833,160 2,888,452 2,888,452 2,853,080 Total Beginning Fund Balance 2,495,698 2,661,265 2,833,160 2,888,452 2,888,452 2,853,080 Revenues Service Charge 877,487 931,738 972,184 1,039,006 1,038,993 1,090,879 Other Revenues 160,906 157,516 142,199 90,000 90,000 90,000 Total Revenues 1,038,393 1,089,254 1,114,383 1,129,006 1,128,993 1,180,879 TRANSFERS IN From Library Trust - - - - 10,000 - TOTAL TRANSFERS IN - - - - 10,000 - TOTAL REVENUES & TRANSFERS 1,038,393 1,089,254 1,114,383 1,129,006 1,138,993 1,180,879 TOTAL SOURCE OF FUNDS 3,534,091$ 3,750,519$ 3,947,543$ 4,017,458$ 4,027,445$ 4,033,959$ USES OF FUNDS Expenditures Salaries and Benefits 426,765$ 409,180$ 440,482$ 518,724$ 466,590$ 543,175$ Operating Expenditures 446,061 492,113 601,937 682,464 707,775 731,775 Fixed Assets - - 16,672 150,000 - 150,000 Internal Service Charges - - - - - - Total Expenditures 872,826 901,293 1,059,091 1,351,188 1,174,365 1,424,950 Transfers Out Transfer to General - - - - - - Transfer to Equipment Replacement - 16,066 - - - - Total Transfers Out - 16,066 - - - - Total Expenditures & Transfers Out 872,826 917,359 1,059,091 1,351,188 1,174,365 1,424,950$ Ending Fund Balance Designated - - - - - - Undesignated 2,661,265 2,833,160 2,888,452 2,666,270 2,853,080 2,609,009 Total Ending Fund Balance 2,661,265 2,833,160 2,888,452 2,666,270 2,853,080 2,609,009 TOTAL USE OF FUNDS 3,534,091$ 3,734,453$ 3,947,543$ 4,017,458$ 4,027,445$ 4,033,959$ STATEMENT OF SOURCE AND USE OF FUNDS D – 68  ADMINISTRATIVE SERVICES  Information Technology FY 2017/18 KEY PROJECTS Core Goals Key Projects Community Character Preserve and enhance the appearance, character, and environment quality of the community Development of IT Master Plan Projects Continue to implement selected projects in the current IT master plan to enhance productivity, including e-government improvements. Good Governance Ensure responsive, accountable, and collaborative government Equipment Replacement Replace certain servers, computers, notebooks, monitors, and printers as part of the replacement program. Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of the community Electronic Document Management System Expand electronic document management in Finance, Human Resources, Parks and Public Works, and other Departments to increase efficiency of record retrieval. Update IT Master Plan Complete an updated Master Plan to guide the Town’s strategic investments in technology to improve Town service delivery, transparency, efficiency, and government access. Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Disaster Recovery Expand virtualization of servers to aid in disaster recovery and added efficiency to improve disaster recovery. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Online Services Improvements Complete improvements for the online tree permits and development applications, online business license applications, and other online improvements, consistent with the Town Council’s Strategic Priorities to improve efficiency and 24/7 service to the public. D – 69  ADMINISTRATIVE SERVICES  Information Technology FY 2017/18 KEY PROJECTS KEY PROGRAM SERVICES • Performs maintenance and upgrades of administrative network system (servers, PCs, notebooks, printers, hardware, and software). • Makes Town-wide IT replacement program purchases. • Provides customer technical support. • Completes research and planning for new technology solutions. Core Goals Key Projects Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Police Support Technology Maintain the Police computer aided dispatch and records management systems. D – 70  ADMINISTRATIVE SERVICES  Information Technology Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed 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 Technician 0.75 1.00 1.00 1.00 1.00 Communications Coordinator - 0.20 0.20 - - Finance Manager 0.20 - - - - Office Assistant - - - 0.13 0.13 Total IT FTEs 2.95 3.20 3.20 3.13 3.13 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed IT Technician temp/hourly - - - 720 720 Total Annual Hours - - - 720 720 INFORMATION TECHNOLOGY PROGRAM STAFFING Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of time service requests are resolved within established guidelines:90%88%85%85%85% b.Percentage of network availability during normal business hours:99%99%99%99%99% c.Percentage of customers rating support as "good" or "excellent" based on timeliness:96%96%98%98%98% d.Percentage of customers rating support as "good" or "excellent" based on quality of service:98%92%98%98%98% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.221 223 230 232 232 2.68 70 72 74 74 3.32 33 34 34 34 4.1,610 1820 2980 3000 3000 *Actuals for previous years have been updated to reflect 16 iPads that were purchased in FY 2013/14. Support the delivery of services to all the Town’s customers through the use of SMART technology (Sensible, Multi-modal, Accessible, Responsive, and Time phased technology). Number of service requests received: Number of network servers maintained: Number of network printers maintained: Number of PCs/Notebooks maintained:* D – 71 Administrative Services WORKERS’ COMPENSATION FUND FUND 612 FUND PURPOSE The Town’s Workers’ Compensation Program provides for anticipated liabilities for worker compensation benefits. The Town self-insures for benefits provided to Town employees and volunteers for work-related injuries up to $250,000, and has excess insurance coverage for claims up to $25 million. The Town belongs to the Local Agency Workers’ Compensation Excess (LAWCX) Joint Powers Authority for the purpose of pooling for this excess insurance. A third party administrator, Innovative Claims Solutions, Inc. (ICS), handles the Town’s day-to-day workers’ compensation claims administration. BUDGET OVERVIEW Revenues to fund this program are derived as a percentage of salary each payroll period. Each Department pays a portion of the program’s cost based on gross wages and level of risk for the various job classifications within the Department. The annual appropriation to this fund represents the self-insurance premiums paid by the operating Departments. Service rates are established which maintain fund balance capacity at approximately two and one-half times the annual operating expenditures. Any excess funds are returned through reduced rates and fund balance transfers as needed. Program costs covered in the internal rates include administration fees, claim settlement costs, attorney fees (outside counsel), medical expenses, payment for temporary and permanent disability, safety program administration and training, and excess insurance premiums. The budget for workers’ compensation is based on actual payroll in the same manner as prior years. In Fiscal Year 2015/16 staff increased rates by 1.5% to begin restoring fund balance which has significantly declined in the last few years due to several on the job-related injuries. Staff is not anticipating to further increase the rate this Fiscal Year. D – 72  ADMINISTRATIVE SERVICES  Workers’ Compensation Fund 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 2,246,915 1,576,699 1,514,858 1,213,324 1,213,324 1,040,634 Total Beginning Fund Balance 2,246,915 1,576,699 1,514,858 1,213,324 1,213,324 1,040,634 Revenues Service Charge 628,637 634,144 863,342 934,118 868,874 696,547 Interest 10 5 6 - - - Other Revenues 206,763 370,425 99,807 - - - Total Revenues 835,410 1,004,574 963,155 934,118 868,874 696,547 TOTAL SOURCE OF FUNDS 3,082,325$ 2,581,273$ 2,478,013$ 2,147,442$ 2,082,198$ 1,737,181$ USES OF FUNDS Expenditures Salaries and Benefits 108,835$ 107,496$ 90,014$ 113,167$ 115,124$ 112,842$ Operating Expenditures 1,396,632 958,919 1,174,505 1,145,643 926,440 1,145,624 Fixed Assets - - - - - - Internal Service Charges 159 - 170 - - - Total Expenditures 1,505,626 1,066,415 1,264,689 1,258,810 1,041,564 1,258,466 Transfers Out Transfer to Grant Funds - - - - - - Transfer to General Fund - - - - - - Total Transfers Out - - - - - - Total Expenditures & Transfers Out 1,505,626 1,066,415 1,264,689 1,258,810 1,041,564 1,258,466 Ending Fund Balance Designated - - - - - - Undesignated 1,576,699 1,514,858 1,213,324 888,632 1,040,634 478,715 Total Ending Fund Balance 1,576,699 1,514,858 1,213,324 888,632 1,040,634 478,715 TOTAL USE OF FUNDS 3,082,325$ 2,581,273$ 2,478,013$ 2,147,442$ 2,082,198$ 1,737,181$ STATEMENT OF SOURCE AND USE OF FUNDS D – 73  ADMINISTRATIVE SERVICES  Workers’ Compensation Fund FY 2017/18 KEY PROJECTS KEY PROGRAM SERVICES • Coordinates the Town’s Workers’ Compensation Program with a contract administration firm. • Administers and/or coordinates work safety programs. • Promotes safe work practices and employee wellness. • Provides timely reporting of employee injury reports. • Provides information to employees regarding workers’ compensation reporting. • Minimizes the Town’s exposure to losses as a result of employee accidents or illnesses. Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Human Resources Director 0.25 0.25 0.25 0.25 0.25 Town Attorney 0.05 0.05 0.05 0.05 0.05 Payroll Specialist 0.05 0.05 0.05 0.05 0.05 Administrative Analyst 0.20 0.20 0.20 0.20 0.20 Total Workers Compensation FTEs 0.55 0.55 0.55 0.55 0.55 WORKERS' COMPENSATION PROGRAM STAFFING Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Accident Reviews Coordinate with the Safety Committee to assist in accident review and help develop action plans to prevent future injuries on an on-going basis and reduce or eliminate exposure. Cal-OSHA Safety Compliance Programs Monitor work activities to identify and ensure compliance with safety programs that are mandated by Cal OSHA and oversee the setting of priorities and training as required. D – 74 D – 75 Administrative Services OFFICE STORES FUND FUND 622 FUND PURPOSE Photocopy and printer equipment, postage, and bulk mail expenditures are centrally funded through the Town’s Office Stores Program, and subsequently charged back to the appropriate Department for services and materials utilized on a monthly basis. Due to limited personnel activity in the operations of this program, there are no staffing, key projects, or performance measures accounted for in this fund. BUDGET OVERVIEW The Office Stores Program maintains approximately 36 printers and copiers. The lease and maintenance program includes toner and repairs for all copiers and printers and the Office Stores Fund pays for copy paper for use on the printers and copiers on the program. D – 76  ADMINISTRATIVE SERVICES  Office Stores Fund KEY PROGRAM SERVICES • Provides postage and photocopy equipment and supplies for all Town Departments. • Monitors service levels and performance of copiers, printers, and postage machines, maintaining and replacing equipment as needed. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 159,212 149,292 187,955 183,127 183,127 166,627 Total Beginning Fund Balance 159,212 149,292 187,955 183,127 183,127 166,627 Revenues Service Charge 93,368 142,020 112,083 90,000 113,000 113,000 Interest - - - - - - Other Revenues 4,689 5,963 5,651 5,000 5,000 5,000 Total Revenues 98,057 147,983 117,734 95,000 118,000 118,000 Transfers In Equipment Replacement Fund - - - - - - Total Transfers In - - - - - - Total Revenues & Transfers In 98,057 147,983 117,734 95,000 118,000 118,000 TOTAL SOURCE OF FUNDS 257,269$ 297,275$ 305,689$ 278,127$ 301,127$ 284,627$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 107,977 109,320 122,562 134,500 134,500 134,500 Fixed Assets - - - - - - Internal Service Charges - - - - - - Total Expenditures 107,977 109,320 122,562 134,500 134,500 134,500 Transfers Out Transfer to Grant Funds - - - - - - Total Transfers Out - - - - - - Total Expenditures & Transfers Out 107,977 109,320 122,562 134,500 134,500 134,500 Ending Fund Balance Designated - - - - - - Undesignated 149,292 187,955 183,127 143,627 166,627 150,127 Total Ending Fund Balance 149,292 187,955 183,127 143,627 166,627 150,127 TOTAL USE OF FUNDS 257,269$ 297,275$ 305,689$ 278,127$ 301,127$ 284,627$ STATEMENT OF SOURCE AND USE OF FUNDS D – 77 Community Development Department DEPARTMENT PURPOSE The Community Development Department (CDD) works with elected and appointed officials, other Departments, and the community to guide the physical growth, development, and preservation of the Town. It accomplishes this by providing current and advanced planning, affordable housing, code compliance, building plan check, building inspection, and other land use services. The community assists the Department’s efforts through participation on the Planning Commission, Historic Preservation Committee, Conceptual Development Advisory Committee, Building Board of Appeals, General Plan Committee, and related subcommittees, all of which are supported by Department staff. The Department also manages the Town’s Affordable Housing Program and supports the Town’s Economic Vitality Program. BUDGET OVERVIEW The Community Development Department will continue to work on a large number of advanced planning efforts and development review applications in FY 2017/18. The complexity and scope of these projects are significant and require that the Town Council set priorities annually through review of the Council’s Strategic Priorities as new issues arise. The Department also supports the Council Policy Committee as it reviews and considers updates to the Town’s land use policies in 2017 and 2018. In keeping with the Town’s financial policies, the Department’s development related services are supported by fees based on the actual costs of providing the services. On a regular basis, the Town analyzes the actual costs associated with development services to ensure that development fees achieve the goal of recovering the costs to provide the services. Anticipated revenues resulting from the adopted fee schedule are reflected in the budget. The anticipated revenues are expected to decrease and will provide full cost recovery for building inspection, plan check services, and planning services. Limited funding is provided through the General Fund and General Plan Fund to cover the costs associated with special advanced planning projects that are unrelated to the development services provided by the Department. Established fee rates include Department-wide development support services. Consequently, actual cost recovery is to be viewed from a Department perspective, not on a program-by- program basis. D – 78  COMMUNITY DEVELOPMENT DEPARTMENT  For FY 2017/18, total Department budgeted revenues are projected to be lower than previous years due to significant projects winding down and an anticipated reduction in large projects. As part of the adopted FY 2017/18 Comprehensive Fee Schedule, Community Development fees will be adjusted based on the Consumer Price Index (CPI). It is anticipated that these increases will better reflect the cost of service delivery in FY 2017/18. Budgeted salary and benefit expenditures include the part-time Community Services Officer (CSO) position being continued for another year in FY 2017/18 with one-time funding. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The Community Development Department budget consists of the following programs: CDD Administration, Development Review, Advanced Planning, Building and Inspection Services, Code Compliance, Below Market Price (BMP) Housing Program, and Pass-Through accounts. D – 79  COMMUNITY DEVELOPMENT DEPARTMENT  ACCOMPLISHMENTS Core Goals Accomplishments Community Character Preserve and enhance the appearance, character, and environmental quality of the community • Evaluated all Building and Planning applications to ensure compliance with adopted policy documents, Town Code, and Building Code. • Completed Environmental Review for applicable projects. • Participated in the West Valley Clean Water Program. • By the end of FY 2016/17, the Town Council is expected to consider an adoption of: o Hillside Fence Ordinance; o New accessory dwelling unit ordinance; and o Revised Hillside Development Standards and Guidelines view analysis requirements. Good Governance Ensure responsive, accountable, and collaborative government • Continued to review land use policies with the Council Policy Committee. • Completed Building and Planning application reviews within published timelines. • Scheduled building inspections within one calendar day to meet construction timelines. • Completed inspections and finaled the Albright Office Complex. • Contacted reporting party of Code Compliance cases within published timelines. • Updated Building and Planning information forms and handouts. • Held a Town Council/Planning Commission Study Session. • Held a Planning Commission Workshop. D – 80  COMMUNITY DEVELOPMENT DEPARTMENT  2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses and Permits 2,343,833$ 2,708,527$ 2,446,459$ 2,082,000$ 2,237,384$ 2,082,000$ Service Charge 1,190,729 1,085,735 1,192,190 685,065 723,984 770,871 Fines & Forfeitures 3,700 2,800 10,300 3,100 5,400 3,100 Other Revenues 1,628,430 1,241,913 710,199 510,500 510,500 510,500 TOTAL REVENUES 5,166,692$ 5,038,975$ 4,359,148$ 3,280,665$ 3,477,268$ 3,366,471$ EXPENDITURES Salaries and Benefits 2,453,630$ 2,405,892$ 2,450,448$ 3,067,043$ 2,483,652$ 3,270,420$ Operating Expenditures 1,640,139 1,599,775 979,685 789,637 803,090 803,087 Grants - - - - - - Fixed Assets - - 360,830 - - - Internal Service Charges 226,868 227,797 241,370 286,419 286,419 303,166 TOTAL EXPENDITURES 4,320,637$ 4,233,464$ 4,032,333$ 4,143,099$ 3,573,161$ 4,376,673$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Adopted PROGRAM Administration 159,401$ 125,087$ 144,484$ 237,742$ 220,411$ 445,953$ Development Review 1,072,640 1,146,692 1,107,301 1,429,728 1,089,493 1,424,150 Advanced Planning 303,893 243,737 225,602 335,439 306,170 365,369 Inspection Services 1,183,058 1,178,836 1,167,902 1,274,612 1,086,869 1,262,399 Code Compliance 144,241 160,414 187,513 197,013 204,833 219,431 BMP Housing Program 257,147 315,807 489,335 158,065 154,885 148,871 Pass Thru Accounts 1,200,257 1,062,891 710,196 510,500 510,500 510,500 TOTAL EXPENDITURES 4,320,637$ 4,233,464$ 4,032,333$ 4,143,099$ 3,573,161$ 4,376,673$ DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES D – 81  COMMUNITY DEVELOPMENT DEPARTMENT  Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 General Fund Funded Funded Funded Funded Proposed Asst Town Manager/CDD Director - 0.50 0.50 - - Community Development Dir.1.00 - - 1.00 1.00 Asst. Community Dev. Dir.1.00 - - - - Planning Manager 1.00 1.00 1.00 1.00 1.00 Building Official 1.00 1.00 1.00 1.00 1.00 Economic Vitality Manager - - - - 0.45 Economic Vitality Coordinator 0.25 0.38 0.38 0.38 - Administrative Analyst 0.90 0.90 0.90 0.99 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 2.00 2.50 2.63 2.63 Assistant Planner - 1.00 1.00 1.00 1.00 Planning Technician 0.50 2.00 1.00 1.00 1.00 Building Inspector 4.00 4.00 4.00 4.00 4.00 Counter Technician 2.00 2.00 2.00 2.00 2.00 Code Compliance Officer - 1.00 1.00 1.00 1.00 Total General Fund FTEs 17.65 19.78 19.28 19.99 20.08 Successor Agency to the Los Gatos RDA Administrative Analyst 0.10 0.10 0.10 0.01 - Total SA FTEs 0.10 0.10 0.10 0.01 - Total Community Dev. FTEs 17.75 19.88 19.38 20.00 20.08 Temporary Staff Hours Associate Planner 1,040 2,130 915 915 915 Community Service Officer - - 250 390 390 Code Compliance Officer 832 - - - - Intern I 1,456 - - - - Total Annual Hours 3,328 2,130 1,165 1,305 1,305 DEPARTMENT STAFFING D – 82 D – 83 Community Development Department ADMINISTRATION PROGRAM 3101 PROGRAM PURPOSE The Administration Program supports the delivery of all Community Development Department services. Staff assigned to this program work with other agencies, Boards, Commissions, and Committees to represent the Town’s interests. Staff serves on the Valley Transportation Authority (VTA) Land Use and Transportation Integration Working Group, and the Santa Clara County Planning Officials organization. Administrative support is provided to the Planning Commission, including the preparation of agenda packets for 22 scheduled Planning Commission meetings per year. Management of Department operations is a component of this program, including personnel and budget administration. BUDGET OVERVIEW The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The Administration Program continues to keep the Community Development Department focused on management of the Department, including budget preparation and monitoring. D – 84  COMMUNITY DEVELOPMENT DEPARTMENT  Administration 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits 128,974$ 94,664$ 114,283$ 198,745$ 181,414$ 399,056$ Operating Expenditures 1,200 3,125 1,572 6,650 6,650 6,650 Grants - - - - - - Fixed Assets - - - - - - Internal Service Charges 29,227 27,298 28,629 32,347 32,347 40,247 TOTAL EXPENDITURES 159,401$ 125,087$ 144,484$ 237,742$ 220,411$ 445,953$ SUMMARY OF REVENUES AND EXPENDITURES D – 85  COMMUNITY DEVELOPMENT DEPARTMENT  Administration FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Staff Training The Department will continue to build the capacity of Community Development staff to carry out broad job responsibilities by conducting in- house training, participating in select outside training, and supporting continuing education. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Planning Commission Training Training will continue to be provided for the Planning Commission, emphasizing the role of the Commission, communication with applicants, how a quasi-judicial body performs its duties, Brown Act, California Environmental Quality Act, and various aspects of Town regulations and procedures. Community Character Preserve and enhance the appearance, character, and environmental quality of the community Planned Development Study The Department will bring forward the Planned Development Study Committee recommendations to Planning Commission and Town Council. Update Grading Ordinance The Department will work with the Department of Parks and Public Works to complete an update to the Town’s Grading Ordinance. D – 86  COMMUNITY DEVELOPMENT DEPARTMENT  Administration KEY PROGRAM SERVICES • Set and monitor goals for the Department and staff. • Manage departmental operations, including preparing and managing the departmental budget. • Provide support for Town Council and Planning Commission meetings. • Provide support on Town projects and initiatives including planning and building issues. • Oversee General Plan implementation. • Oversee Housing Element implementation. • Oversee Sustainability Plan implementation. • Provide oversight for North 40 Specific Plan and Environmental Impact Report (EIR) implementation process. • Develop and mentor Department staff. • Manage the annual Department work plan. Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Asst. Town Manager/CDD Dir.- 0.15 0.15 - - Community Development Dir.0.25 - - 0.30 0.30 Asst. Community Dev. Dir.0.30 - - - - Planning Manager 0.10 0.10 0.10 0.10 0.10 Administrative Analyst 0.20 0.20 0.20 0.29 0.30 Executive Assistant 0.10 0.10 0.10 0.10 0.25 Administrative Assistant 0.05 0.05 0.05 0.05 0.05 Total Administration FTEs 1.00 0.60 0.60 0.84 1.00 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Associate Planner Temp/Hrly - 1,090 915 915 915 Total Annual Hours - 1,090 915 915 915 ADMINISTRATION PROGRAM STAFFING D – 87 Community Development Department DEVELOPMENT REVIEW PROGRAM 3201 PROGRAM PURPOSE The Development Review Program evaluates planning applications for the proposed development of land and structures consistent with Town Codes, plans, and policies. This is accomplished through meeting with and advising project applicants and other stakeholders, and analyzing and processing all development applications including environmental review, plan check, and inspection. The process involves an assessment of a planning application’s consistency and compliance with the General Plan, Hillside Specific Plan, Town Code, and other applicable Town regulations. BUDGET OVERVIEW As noted in the departmental budget overview, Development Review-related fees reflect the FY 2017/18 approved fee schedule. These fees continue to help support the operating expenditures, thereby ensuring on-going direct cost recovery. For FY 2017/18, budgeted revenues are projected to be lower than previous years due to larger projects winding down. Budgeted expenditures for FY 2017/18 have increased over prior years partially due to the reallocation of positions between programs and negotiated salary raises, higher benefits and CalPERS pension rates, and internal service charges with a slight increase in operating expenditures. D – 88  COMMUNITY DEVELOPMENT DEPARTMENT  Development Review 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits 614,662$ 789,242$ 635,045$ 455,000$ 583,356$ 455,000$ Service Charges 265,726 273,290 186,108 155,000 185,450 155,000 Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES 880,388$ 1,062,532$ 821,153$ 610,000$ 768,806$ 610,000$ EXPENDITURES Salaries and Benefits 958,374$ 985,993$ 947,725$ 1,271,260$ 930,575$ 1,268,105$ Operating Expenditures 62,942 104,669 104,980 87,200 87,650 82,650 Grants - - - - - - Fixed Assets - - - - - - Internal Service Charges 51,324 56,030 54,596 71,268 71,268 73,395 TOTAL EXPENDITURES 1,072,640$ 1,146,692$ 1,107,301$ 1,429,728$ 1,089,493$ 1,424,150$ SUMMARY OF REVENUES AND EXPENDITURES D – 89  COMMUNITY DEVELOPMENT DEPARTMENT  Development Review FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Development Team Continuous Improvement The Development Team (Community Development, Parks and Public Works, and Police Departments, and County Fire) will continue to focus on evaluating processes, procedures, and systems; defining roles and responsibilities; building capacity; and obtaining input and feedback from customers to continue to improve the development review process. Process Improvements The following key activities will be continued to enhance the development review process: • Coordinate Arborist/Architect/Landscape Water and Conservation consultants’ peer review processes • Revise/update development application forms and website information • Implement Town Code amendments to improve the development process • Continue to provide timely planning application review and customer service to all participants in the planning process Community Character Preserve and enhance the appearance, character, and environmental quality of the community Major Development Applications Pending Includes the following known properties: • Twin Oaks Drive Planned Development • 401 to 409 Alberto Way Architecture and Site • Two-story office building at 475 Alberto Way • Winchester and Shelburne Planned Development • 105 Newell Planned Development (Elks Lodge) • 201-225 Los Gatos Saratoga Rd. • 100 Prospect (Sisters of Holy Names) Architecture and Site applications • Chevrolet Site (CVS proposed) Fiscal Stability Maintain ongoing fiscal stability to provide cost effective core services that meet the needs of th it Cost Recovery • Ensure ongoing cost recovery D – 90  COMMUNITY DEVELOPMENT DEPARTMENT  Development Review KEY PROGRAM SERVICES Overall Services • Set and monitor goals for the Department and staff. • Develop and mentor Department staff. • Manage the annual Department work plan. Commission/Committee Support • Provide support for the following Commissions and Committees: Planning Commission, Development Review Committee, Historic Preservation Committee, Conceptual Development Advisory Committee, General Plan Committee, and various subcommittees. Application Review • Analyze and process applications, including: General Plan amendments, Town Code amendments, Rezoning and Planned Developments, Architecture and Site, Variances, Conditional Use Permits, Minor Residential Development, Subdivisions, Agricultural Preserve Contracts, Home Occupation Permits, Certificates of Use and Occupancy, Sign and Banner Permits, Secondary Dwelling Units, Mobile Home Park Conversions, and Environmental Review. Major Projects • Accela permitting system upgrade to streamline customer application submittal in coordination with Open Counter. D – 91  COMMUNITY DEVELOPMENT DEPARTMENT  Development Review Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Asst Town Manager/CDD Director - 0.15 0.15 - - Community Development Dir.0.25 - - 0.30 0.30 Asst. Community Dev. Dir.0.30 - - - - Planning Manager 0.60 0.60 0.60 0.60 0.60 Building Official 0.10 0.10 0.10 0.10 0.10 Economic Vitality Coordinator 0.25 0.38 0.38 0.38 - Administrative Analyst 0.35 0.35 0.35 0.35 0.35 Executive Assistant 0.65 0.65 0.65 0.65 0.65 Administrative Assistant 0.75 0.70 0.70 0.70 0.70 Senior Planner 1.20 1.20 1.20 1.70 1.40 Associate Planner 1.60 1.60 2.10 2.03 1.93 Assistant Planner - 1.00 0.80 0.80 0.80 Planning Technician 0.50 2.00 1.00 1.00 0.90 Counter Technician 0.10 0.10 0.10 0.10 0.10 Economic Vitality Manager - - - - 0.45 Total Development Review FTEs 6.65 8.83 8.13 8.70 8.28 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Associate Planner Temp/Hrly 1,040 1,040 - - - Intern I 1,040 - - - - Total Annual Hours 2,080 1,040 - - - DEVELOPMENT REVIEW PROGRAM STAFFING D – 92  COMMUNITY DEVELOPMENT DEPARTMENT  Development Review Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.100%100%100%100%100% 2. a.Percentage of applications continued by Planning Commission:5%4%45%39%25% b.Percentage of Planning Commission decisions upheld by Town Council:95%60%33%86%95% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.476 521 526 407 450 2.22 21 24 27 23 3.17,479 10,026 12,135 13,904 12,000 4.19 23 29 50 30 Facilitate the development of land and structures consistent with Town codes, plans and policies. Number of referrals to consulting architect: Number of Planning Commission Meetings: Number of Public Notices: Number of applications processed: Analyze and process development applications efficiently and effectively. D – 93 Community Development Department ADVANCED PLANNING PROGRAM 3202 PROGRAM PURPOSE The Advanced Planning Program guides the physical development of the community consistent with the General Plan, Hillside Specific Plan, Town Codes, and other policy documents, which are kept relevant and current through approved amendments. Staff updates official Town maps to ensure they are clear and accurate. Staff undertakes special projects and studies to meet the evolving needs of the community and provides staff support for the General Plan Committee and any Council-appointed subcommittees. BUDGET OVERVIEW The FY 2017/18 budgeted revenues have decreased due to the reduction in the amount of the North 40 and General Plan reimbursements. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. D – 94  COMMUNITY DEVELOPMENT DEPARTMENT  Advanced Planning 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Service Charges 251,974 262,328 211,700 121,000 136,534 116,000 Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES 251,974$ 262,328$ 211,700$ 121,000$ 136,534$ 116,000$ EXPENDITURES Salaries and Benefits 235,184$ 156,183$ 172,405$ 271,565$ 247,014$ 299,646$ Operating Expenditures 55,832 77,500 39,291 47,452 42,734 47,452 Grants - - - - - - Fixed Assets - - - - - - Internal Service Charges 12,877 10,054 13,906 16,422 16,422 18,271 TOTAL EXPENDITURES 303,893$ 243,737$ 225,602$ 335,439$ 306,170$ 365,369$ SUMMARY OF REVENUES AND EXPENDITURES FY 2017/18 KEY PROJECTS Core Goals Key Projects Community Character Preserve and enhance the appearance, character, and environmental quality of the community General Plan and Housing Element Action Items • Review and revise the Town policy related to the service of alcohol in restaurants and other establishments (referred to Council Policy Committee). • Develop a Business Diversity Policy addressing the balance of formula and non-formula retail in the Downtown area, including restaurants. • Prepare Town Code amendments and other action items to implement the adopted General Plan, Housing Element, and Sustainability Plan. • Prepare potential North 40 Specific Plan Amendments. • Update Density Bonus Ordinance. D – 95  COMMUNITY DEVELOPMENT DEPARTMENT  Advanced Planning KEY PROGRAM SERVICES • Prepare plans, amendments, administrative policies, ordinances, and maps. • Implement the General Plan and Housing Element. • Review land use policies and recommend modifications to the Planning Commission and Town Council. • Set and monitor goals for the Department and staff. • Develop and mentor Department staff. • Manage the annual Department work plan. Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Asst. Town Manager/CDD Director - 0.18 0.18 - - Community Development Dir.0.40 - - 0.35 0.35 Asst. Community Dev. Dir.0.35 - - - - Planning Manager 0.30 0.30 0.30 0.30 0.20 Executive Assistant 0.05 0.05 0.05 0.05 0.05 Administrative Assistant 0.15 0.20 0.20 0.20 0.10 Senior Planner 0.40 0.40 0.60 0.20 0.40 Associate Planner 0.10 0.10 0.25 0.25 0.40 Assistant Planner - - 0.20 0.20 0.10 Total Advanced Planning FTEs 1.75 1.23 1.78 1.55 1.60 ADVANCED PLANNING PROGRAM STAFFING D – 96  COMMUNITY DEVELOPMENT DEPARTMENT  Advanced Planning Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of General Plan implementation measures completed within cycle time:100%100%100%100%100% 2. a.Percentage of special studies adopted:100%100%100%100%100% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.5 8 3 3 4 2.0 0 0 0 0 3.5 1 1 2 4 4.2 1 0 2 1 Guide the physical development of the community consistent with the General Plan, Hillside Specific Plan, and Town Codes. Number of General Plan amendments requested: Number of Planning Commission directives received: Number of General Plan implementation measures completed: Number of special studies completed: Meet the evolving needs of the community and provide staff support to advisory committees. D – 97 Community Development Department BUILDING & INSPECTION SERVICES PROGRAM 3301 PROGRAM PURPOSE The Building and Inspection Services Program helps to ensure safe, healthy, and attractive property improvements by facilitating the issuance of permits and compliance with codes, policies, guidelines, and standards. Staff assigned to this program provide information concerning building regulations; maintain the computerized permit tracking and plan check systems; inspect commercial and residential buildings under construction; provide plan check review for compliance with the International Building Codes, disabled access regulations, and other state and local ordinances; and coordinate the duties of the plan check consultant, which provides complex structural and engineering plan check services. BUDGET OVERVIEW For FY 2017/18, total Department budgeted revenues are projected to be lower than previous years due to significant projects winding down and an anticipated reduction in large projects. Overall program budgeted expenditures for FY 2017/18 remain steady with only a slight increase in salaries and benefits. The Building Inspectors continue to handle the storm water management inspections during construction for all building permits with the potential to generate non-point source storm water runoff as part of the National Pollutant Discharge Elimination System (NPDES) Program (PPW conducts post-construction monitoring). The San Francisco Regional Water Quality Control Board issued an updated NPDES permit for the municipalities in Santa Clara County in 2015. The NPDES permit implements significant new requirements on development projects that could impact Town staffing resources. Staff will monitor the new permit requirements and evaluate the potential to recover additional costs imposed by the NPDES permit during FY 2017/18. D – 98  COMMUNITY DEVELOPMENT DEPARTMENT  Building & Inspection Services The Building Division also assists with code compliance violations that are related to construction and sub-standard housing. A contract Plan Check Engineer continues to provide plan check services on a cost-recovery basis. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits 2,098,354$ 2,086,830$ 1,811,414$ 1,625,000$ 1,653,028$ 1,625,000$ Service Charges 696,029 391,117 433,505 253,000 402,000 353,000 Fines & Forfeitures - - - - - - Other Revenues - 22 3 - - - TOTAL REVENUES 2,794,383$ 2,477,969$ 2,244,922$ 1,878,000$ 2,055,028$ 1,978,000$ EXPENDITURES Salaries and Benefits 985,325$ 975,844$ 962,735$ 1,059,656$ 864,463$ 1,027,788$ Operating Expenditures 73,116 79,611 74,677 64,350 71,800 79,850 Grants - - - - - - Fixed Assets - - - - - - Internal Service Charges 124,617 123,381 130,490 150,606 150,606 154,761 TOTAL EXPENDITURES 1,183,058$ 1,178,836$ 1,167,902$ 1,274,612$ 1,086,869$ 1,262,399$ SUMMARY OF REVENUES AND EXPENDITURES D – 99  COMMUNITY DEVELOPMENT DEPARTMENT  Building & Inspection Services FY 2017/18 KEY PROJECTS Core Goals Key Projects Community Character Preserve and enhance the appearance, character, and environmental quality of the community Public Information on Building Codes Staff will continue to provide updated forms and information through the Town’s website as well as assisting customers with online permitting, processing, and information. Staff will continue to correct and clarify the Town’s official street address file. Inspection Services on Larger Projects Several significant projects will continue into FY 2017/18 including: several new large custom homes; tenant improvements for medical offices; and 33 new detached single-family homes at 375 Knowles Drive. Staff will continue to provide next day inspection services even with the increased inspection workload as the Town has done in years past. Major Building Projects Pending Pending projects include the following: • Three two-story homes at 15565 Camino Del Cerro • Three two-story homes at 15975 Union Avenue • Sisters of the Holy Names 17 new custom homes • Three new custom homes at Highlands of Los Gatos Good Governance Ensure responsive, accountable, and collaborative government Improvements to Plan Checking Services To improve the efficiency of the plan checking process, the Building Division will coordinate with the Santa Clara County Fire Department and the Planning Division to expedite commercial tenant improvements and continue to increase the number of internal plan checks by Building Inspection staff. The goal is to decrease the plan check consultant workload and reduce the time required to conduct a plan check to provide a higher level of service. D – 100  COMMUNITY DEVELOPMENT DEPARTMENT  Building & Inspection Services KEY PROGRAM SERVICES Overall Services • Set and monitor goals for the Department and staff. • Develop and mentor Department staff. • Manage the annual Department work plan. Inspection Services • Perform on-site field inspections for all buildings and structures under construction. • Investigate Housing Code violations. • Assist contractors, architects, engineers, and the general public with construction questions. Building Counter Services • Coordinate building permit applications with other departments and agencies. • Review workers’ compensation requirements and contractors’ licenses. • Maintain the computerized permit tracking and plan check systems including data entry for permit activity. • Produce and distribute statistical reports regarding building and related permit activity. • Distribute and track plans to reviewing Town Departments and outside agencies. • Calculate and collect fees. Plan Check Services • Perform complex building, structural, and life safety plan review of commercial, industrial, and residential buildings per the International Building Codes, state regulations, and local ordinances. • Coordinate building information and activity with other departments and agencies. • Provide building code information to customers. D – 101  COMMUNITY DEVELOPMENT DEPARTMENT  Building & Inspection Services Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Community Development Dir.0.05 - - - - Building Official 0.75 0.75 0.75 0.75 0.75 Administrative Analyst 0.15 0.15 0.15 0.15 0.15 Administrative Assistant 0.05 0.05 0.05 0.05 0.05 Senior Planner - - - 0.10 0.20 Associate Planner 0.30 0.30 0.15 0.15 0.30 Assistant Planner - - - - 0.10 Building Inspector 4.00 4.00 4.00 4.00 4.00 Counter Technician 1.90 1.90 1.90 1.90 1.90 Planning Technician - - - - 0.10 Total Building and Inspection FTEs 7.20 7.15 7.00 7.10 7.55 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Intern I 416 - - - - Total Annual Hours 416 - - - - BUILDING & INSPECTION SERVICES PROGRAM STAFFING D – 102  COMMUNITY DEVELOPMENT DEPARTMENT  Building & Inspection Services Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of inspections delivered within cycle times: 100%100%100%100%100% b.Percentage of plan checks completed within cycle times: 95%97%98%98%98% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.12,764 11,652 12,112 13,920 12,775 2.777 736 863 840 775 3.1,439 1,380 1,557 1,560 1,475 4.1,392 1,397 1,503 1,452 1,425Number of Building Division permits issued: Number of building plan checks completed: Number of Building Division permit applications received: Number of inspections conducted: Ensure safe, healthy, and attractive property improvements. D – 103 Community Development Department CODE COMPLIANCE PROGRAM PROGRAM 3401 PROGRAM PURPOSE The Code Compliance Program ensures property is used in a manner that is safe, healthy, and consistent with the community’s character as conveyed by the Town’s zoning regulations and approvals. Program staff identifies, investigates, and abates zoning violations, non-conforming uses, and other Town Code violations. Enforcement services are primarily in response to community concerns and are designed to achieve timely compliance through proactive efforts and the on-going education of the public to increase awareness of the Town’s zoning and sign regulations. Violations that affect life, health, and safety are given the highest priority. BUDGET OVERVIEW The Code Compliance Program budget includes revenue from the Administrative Citation Program established in FY 2003/04. With the added incentive to avoid fines, this program reduces the number of times Code Compliance staff must revisit an outstanding violation, thereby abating violations more effectively. The fines also reduce the financial burden on the General Fund by placing a portion of the cost of abating violations on the violator. Staff has found that most violators choose to comply within the established time frame rather than pay a fine. Budgeted revenue for this program is expected to increase as the reinstated Code Compliance program is now fully functioning. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The part-time Community Services Officer (CSO) position will be continued for one more year in FY 2017/18 with one-time funding. The position is allocated between Code Compliance and the D – 104  COMMUNITY DEVELOPMENT DEPARTMENT  Code Compliance Program Police Department due to noise concerns in the downtown area with emphasis on Conditional Use Permit evening monitoring (e.g., hours of operation, and noise complaints). 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Service Charges - - - - - - Fines & Forfeitures 3,700 2,800 10,300 3,100 5,400 3,100 Other Revenues - - - - - - TOTAL REVENUES 3,700$ 2,800$ 10,300$ 3,100$ 5,400$ 3,100$ EXPENDITURES Salaries and Benefits 34,217$ 110,205$ 174,648$ 181,854$ 186,124$ 200,655$ Operating Expenditures 106,018 42,813 2,336 2,835 6,385 5,335 Grants - - - - - - Fixed Assets - - - - - - Internal Service Charges 4,006 7,396 10,529 12,324 12,324 13,441 TOTAL EXPENDITURES 144,241$ 160,414$ 187,513$ 197,013$ 204,833$ 219,431$ SUMMARY OF REVENUES AND EXPENDITURES FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Process Improvements • Continue to work with the Police and Parks and Public Works Departments, and the Town Attorney on code compliance issues and the Administrative Citation Program. • Evaluate the Town’s sign regulations and recommend potential changes to address compliance issues that have arisen with off- premise signs. • Identify process improvements to the Conditional Use Permit (CUP) database to enhance monitoring of compliance with approved CUPs. D – 105  COMMUNITY DEVELOPMENT DEPARTMENT  Code Compliance Program KEY PROGRAM SERVICES • Resolves complex Town Code and zoning violations. • Enforces various Town Codes, while focusing on obtaining voluntary compliance from the public. • Educates residents, businesses, and property owners about Town regulations. • Conducts inspections/investigations of structures/residences concerning public health- related issues. • Coordinates with the Finance Department’s Business License Tax Division to ensure all operating businesses have a business license. Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Community Development Dir.0.05 - - - - Building Official 0.15 0.15 0.15 0.15 0.15 Executive Assistant 0.05 0.05 0.05 0.05 0.05 Code Compliance Officer - 1.00 1.00 1.00 1.00 Total Code Compliance FTEs 0.25 1.20 1.20 1.20 1.20 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Community Service Officer Temp/Hrly - - 250 390 390 Code Compliance Officer Temp/Hrly 832 - - - - Total Annual Hours 832 - 250 390 390 CODE COMPLIANCE PROGRAM STAFFING D – 106  COMMUNITY DEVELOPMENT DEPARTMENT  Code Compliance Program Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.Respond to complaining party within 48 hours.*Data Not Available 99%98%98%98% 2. a.Percentage of complaints abated within cycle times:56%91%90%90%90% 3. a.Percentage of complaints resulting in court hearings:0%1%0%1%1% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.434 812 522 384 450 2.246 700 445 312 350 3.9 29 100 70 60 *New measure effective FY 2014/15. Number of complaints abated: Total number of Administrative Citations: Number of complaints reported: Ensure properties in Los Gatos are used safely and are consistent with the Town's zoning regulations. Achieve timely compliance. D – 107 Community Development Department BMP HOUSING PROGRAM PROGRAM 3501 PROGRAM PURPOSE The purpose of the Below Market Price (BMP) Housing Program is to provide for adequate housing for Los Gatos residents, regardless of age, income, race, or ethnic background. As required by the State, the Town plans and facilitates the construction of housing adequate for future populations consistent with environmental limitations and in a proper relationship to community facilities, open space, transportation, and small town character. BUDGET OVERVIEW All expenditures in this program are funded by non-General Fund revenues. BMP activities are funded through BMP In-Lieu Fees, paid by developers for new housing. The majority of expenditures in this program are related to a service contract with Hello Housing, which administers several components of the BMP Housing Program. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, higher benefit and CalPERS pension rates, and an increase in the cost of the Housing Services portion of the program pursuant to the Town’s agreement with the BMP administrator. D – 108  COMMUNITY DEVELOPMENT DEPARTMENT  BMP Housing Program 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits (369,183)$ (167,545)$ -$ 2,000$ 1,000$ 2,000$ Service Charges (23,000) 159,000 360,877 156,065 - 146,871 Fines & Forfeitures - - - - - - Other Revenues 428,173 179,000 - - - - TOTAL REVENUES 35,990$ 170,455$ 360,877$ 158,065$ 1,000$ 148,871$ EXPENDITURES Salaries and Benefits 111,556$ 83,003$ 78,652$ 83,963$ 74,062$ 75,170$ Operating Expenditures 140,774 229,166 46,633 70,650 77,371 70,650 Grants - - - - - - Fixed Assets - - 360,830 - - - Internal Service Charges 4,817 3,638 3,220 3,452 3,452 3,051 TOTAL EXPENDITURES 257,147$ 315,807$ 489,335$ 158,065$ 154,885$ 148,871$ SUMMARY OF REVENUES AND EXPENDITURES FY 2017/18 KEY PROJECTS KEY PROGRAM SERVICES • Administer the Below Market Price Housing Program. • Monitor the BMP ordinance and guidelines to determine and recommend potential improvements to enhance the effectiveness of the program. Core Goals Key Projects Community Character Preserve and enhance the appearance, character, and environmental quality of the community Below Market Price Housing (BMP) Program The BMP Program makes homes available for purchase or rent at below market prices to low and median income families. Eligibility for the BMP program is based on federal household income guidelines. D – 109  COMMUNITY DEVELOPMENT DEPARTMENT  BMP Housing Program Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Asst. Town Manager/CDD Dir - 0.03 0.03 - - Community Development Dir.- - - 0.05 0.05 Asst. Community Dev. Dir.0.05 - - - - Planning Manager - - - - 0.10 Administrative Analyst 0.20 0.20 0.20 0.20 0.20 Executive Assistant 0.15 0.15 0.15 0.15 - Administrative Assistant - - - - 0.10 Senior Planner 0.40 0.40 0.20 - - Associate Planner - - - 0.20 - Total BMP Housing FTEs 0.80 0.78 0.58 0.60 0.45 BMP HOUSING PROGRAM STAFFING Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. 47 49 50 50 54 2. 95 119 119 119 119 Number of rental housing units registered in the Below Market Price Housing Program: Number of owner-occupied housing units registered in the Below Market Price Housing Program: D – 110 D – 111 Community Development Department PASS-THROUGH ACCOUNTS PROGRAM 39 99 PROGRAM PURPOSE This pass-through accounting structure separates Community Development program activities from the funding mechanism set up for external consultant services utilized to assist applicants in the planning, development, and building processes. Most pass-through activity is generated by development projects. Depending on the development project, an applicant may be required to deposit funds for architectural services, arborist services, environmental review services, and/or plan checking services with the Town. The Town provides these various services for an applicant’s project and the consultants are subsequently paid out of the applicant’s account. Any remaining balances are returned to the applicants. Pass-through funding is also utilized for the Town’s General Plan funding. General Plan Fees are collected for development projects and held in a deposit account until recognized as General Plan expenses as they are incurred during the year. BUDGET OVERVIEW There is no net budgetary impact for this program, as revenues will equal expenditures. The revenues and expenditures reflect estimates based on prior year trends. At fiscal year end, actuals may differ substantially from original budgeted numbers as the quantity and size of development projects within the community in any given year is not known or determinable in advance. This budget reflects a reasonable estimate only. D – 112  COMMUNITY DEVELOPMENT DEPARTMENT  Pass-Through Accounts 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues 1,200,257 1,062,891 710,196 510,500 510,500 510,500 TOTAL REVENUES 1,200,257$ 1,062,891$ 710,196$ 510,500$ 510,500$ 510,500$ EXPENDITURES Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 1,200,257 1,062,891 710,196 510,500 510,500 510,500 Grants - - - - - - Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 1,200,257$ 1,062,891$ 710,196$ 510,500$ 510,500$ 510,500$ SUMMARY OF REVENUES AND EXPENDITURES D – 113 Police Department DEPARTMENT PURPOSE The Los Gatos/Monte Sereno Police Department provides police services to the Town of Los Gatos and contractually to the City of Monte Sereno. The Department’s vision is to accomplish three things: build a highly competent and professional Police Department, develop community relationships, and engage the community in problem solving. The Department’s ultimate goal is to know everyone in the community to facilitate high quality community policing. The core services provided by the Police Department include responding to emergency and non-emergency calls for service, identification of criminal activity, dispatch services, investigation and prosecution of crimes, recruiting, hiring, training of personnel, crime prevention and community outreach, traffic safety, maintenance of records, property and evidence, and community problem solving. The Police Department continues to build upon a strong police/community partnership through innovative Department and community programs, including the School Resource Officer funding partnership, Juvenile Diversion programs, Digital Media Safety/Cyberbullying education, Safe Routes to School, Drug Free Community Committee, homeless outreach, Youth Commission, Domestic Violence Advocate program, and traffic management. Volunteer programs such as Reserve Police Officers, Volunteers in Policing (VIP), Disaster Aid Response Team (DART), the Police Chaplain program, Parking Citation Hearing Officers, Victim Services Unit (VSU), and the Police Explorer Scout program extend these partnerships to the community. For the past ten years, volunteers have personally welcomed all new homeowners to the Town through the Department’s New Resident Outreach Program. Additionally, community volunteers have been instrumental in the training and growth of the Community Emergency Response Team (CERT). The Police Department is focused on community problem solving. Individual Officers and patrol teams are responsible for identifying problems and creating and implementing solutions to those problems. In furtherance of this effort, the Department continues to develop relationships with specific segments of our community such as the Chamber of Commerce, D – 114  POLICE DEPARTMENT  Communities against Substance Abuse (CASA), Mothers against Drunk Driving (MADD), homeowner and neighborhood associations, schools, non-profit organizations, the faith community, service clubs, and others. All field staff are trained in effective community based policing tactics and strategies to de-escalate and respond appropriately to field situations (e.g. interpersonal communications training). Continuous training from national experts on science-based Fair and Impartial Policing curricula as well as de-escalation techniques remain a focus for the Department. All Police Department personnel are committed to a philosophy which promotes an organizational strategy of partnership and problem-solving techniques with the ultimate goal of high quality public safety and personalized policing, including a collaborative approach of getting to know everyone in the Los Gatos and Monte Sereno communities. BUDGET OVERVIEW This budget overview discusses the Police Department’s focus for FY 2017/18 as well as its revenue and expenditure outlook. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises and higher benefit and CalPERS pension rates. The Police Department and the Town of Los Gatos have enjoyed a very good relationship with the City of Monte Sereno. Both communities have similar residential demographics and the Police Department has provided quality and responsive services with a long history of reaching out to its citizens, which has resulted in a strong bond between both communities. Revenues generated as a result of the police services contract with the City of Monte Sereno are the largest revenue source in the Police Department budget and has provided a stable base when other Town revenues were subject to economic fluctuations. Since FY 2009/10, funding for the School Resource Officer (SRO) position has been offset by an agreement with the high school and elementary school districts with each sharing costs for nearly one-half the Officer’s salary and benefits. Given the positive and collaborative working relationship between the Town and the elementary and high school districts both have mutually agreed to continue participation in this shared partnership, with contract renewal anticipated for FY 2017/18. While historically the Community Outreach Coordinator has been funded in the Town’s Non- Departmental program, the work occurs in the Police Department; therefore, with this budget the funds are being transferred to the Personnel and Community Service program. D – 115  POLICE DEPARTMENT  Reorganization will be continuously evaluated to assess effectiveness, innovation, collaboration and sustainability of the overall Police organization as well as needs of the community. Department Reclassification To best meet the needs of the Department the FY 2017/18 budget includes one operational reclassification. The 1.0 FTE Community Service Officer assigned to Personnel and Community Services is now reclassified to a 1.0 FTE Human Resources Specialist. This position remains in the Personnel and Community Services program. The Human Resources Specialist position will support the Police Department with the recruitment of new personnel, continued education and training of personnel, and succession planning. Staff Resource Modifications Temporary staff funding is proposed to the FY 2017/18 budget for: technology support, evidence, records management, and Parking Control Officers. The temporary hours increase is funded from one-time funding. • An additional $32,416 in temporary staffing hours is proposed as one-time support for an IT Technician to assist with critical operational technology needs and the regional radio project including interoperability upgrades. • An additional $47,905 in temporary staffing hours is proposed for a Community Services Officer (CSO) as a one-time support to assist the Evidence and Property Division. This Division has seen an increase in the intake and discovery records requests over the past year; intensive staff research and documentation accompany these requests. • An additional $41,670 in temporary staffing hours is proposed for a Records Specialist as a one-time support to assist with the increased number of reported and processed cases. This increase is partially due to recent changes in legislation; additionally, the Records Division has seen an increase in public counter traffic. • An additional $12,775 in temporary staffing hours is proposed as a one-time support to assist in the use of Parking Control Officer (PCO) during peak times. • The part-time Community Services Officer (CSO) position will continue for another year in FY 2017/18 with one-time additional funding approved by Town Council. The position is allocated between Code Compliance and the Police Department due to noise concerns in the downtown area with emphasis on Conditional Use Permit evening D – 116  POLICE DEPARTMENT  monitoring (e.g., hours of operation and noise complaints) and after hours code compliance issues. In consideration of staff reductions from prior years and for cost savings, patrol officers continue to work 12-hour shifts to maintain adequate staffing levels on each shift. While this shift schedule has proven to be inflexible yet necessary given the current staffing levels, the Department is committed to continually reviewing staffing models based on available resources and the fiscal stability. During FY 2016/17 several emergency hybrid schedules were implemented for individual officers to allow for coverage across all patrol shifts. The Police Department budget consists of the following programs: Police Administration, Records and Communications, Personnel and Community Services, Patrol, Traffic, Investigations and Parking Management. Pass-Through accounts and Police operating grants are also reflected in the Police Department. ACCOMPLISHMENTS Core Values Accomplishments Community Character Preserve and enhance the appearance character and environment quality of the community • In FY 2016/17, the Department facilitated management of the Youth Commission’s special project, specific to the newly implemented “No Smoking” municipal ordinance, adopted by Town Council. Collaborative efforts with the Youth Commission in conjunction with the Town Attorney on the project consisted of research and partnerships with other jurisdictions and private interest groups. • During FY 2016/17, the Police Department collaborated with Parks and Public Works and the Heritage Grove Homeowners Association in clean-up and preventative maintenance efforts to deter criminal activity and address quality of life issues in Heintz Open Space. Graffiti removal, re-posting of signage, and increased patrol check enforcement have reduced complaints and issues within Heintz Open Space after hours. D – 117 POLICE DEPARTMENT  ACCOMPLISHMENTS Core Values Accomplishments Good Governance Ensure responsive, accountable and collaborate government • The Records Division in collaboration with the Town Attorney’s Office revised current Department procedures and policies for records release, retention, and procedural guidelines in managing public records requests. The revision of the policies and practices ensures compliance with the California Public Records Act, efficiency, and transparency as required by state law. With an increase in PRA requests over the last year, the revision of the policy and practices ensures responsive and consistent government practices. • The Police Department worked with other Town Departments on proposed changes and modifications to the current municipal massage ordinance and permitting approval process. During FY 2016/17, the revision of Town Municipal Ordinance 14.110.020 was adopted by the Town Council, providing oversight and accountability of local permitting for massage establishments, adherence with current state massage laws, and clear regulations for massage establishments to follow. • The School Resource Officer position continued to integrate “Life Skills” classes at Fisher Middle School, working with students and staff in producing short videos of the day and presentations surrounding life lessons. This program promoted a positive influence on the adolescents and allowed them an opportunity to be a role model amongst their peers. • Officers and Detectives of the Department were selected to participate on County-wide law enforcement committees which developed working protocols for law enforcement agencies throughout the Santa Clara County for Domestic Violence, Active Shooter, and Sexual Assault investigations. The established SCC District Attorney Protocols identify procedural investigation updates, case law mandates, and maintain consistency of interoperability and joint investigations. D – 118 POLICE DEPARTMENT  ACCOMPLISHMENTS Core Values Accomplishments Good Governance Ensure responsive, accountable and collaborate government • During FY 2016/17, the Police Department Investigations Division utilized the assistance of the Santa Clara County Specialized Enforcement Team (SCCSET) and the Regional Auto Theft Task Force (RATTF) in conducting further investigation of several major investigations which resulted in the apprehension of the suspects and closure of crimes related to robbery, burglary, and auto theft. The Department continues to value the partnership and collaboration of the County-wide task force programs and the ability to participate in the SCCSET Task Force. • In FY 2016/17, the Victim Services Unit (VSU) focused its realignment and resources to working with victims of domestic violence and families dealing with mental health issues. In conjunction with the limited County-wide domestic violence advocacy programs and mental health resources, the VSU found success in outreach and guidance of victims and families from immediately after the incident through the criminal justice procedure system. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational and individual enrichment • During FY 2016/17, the Department integrated the use of social media platforms to provide community outreach and transparency about special events, community alerts and advisories, and engage the community on crime prevention efforts. The Department used the mobile communication tools to share its weekly crime blotters, provide traffic and hazard advisories during inclement weather, and inform the community about the work and service by the Police Department. • Ten Neighborhood Watch meetings were held and eight new Neighborhood Watch Groups were established. Community residents of Neighborhood Watch Groups are provided with a foundation of crime preventative measures, crime trends, and the various programs the Police Department offers for assistance. Follow up meetings and community policing projects are solicited and the program continues to allow the Department to foster and engage in community problem solving. D – 119 POLICE DEPARTMENT  ACCOMPLISHMENTS Core Values Accomplishments Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational and individual enrichment • The Department partnered with Boy Scouts and Girl Scouts of America in making the Los Gatos-Monte Sereno Police Department a frequently toured facility by the many different scout troops. Over FY 2016/17, the Department facilitated 24 tours and presentations at the Police Department, promoting the role of the Officer, explaining the Police Department purpose, and building future leaders in the community. • Four “Coffee with a Cop” events were hosted to allow the community to connect with Police Officers from the Department in casual communication over a cup of coffee. The Department utilized locations in different areas of Town and also invited the City of Monte Sereno to cast a wider representation of community engagement and outreach. Many of the relationships and discussions at these events have facilitated additional community outreach opportunities, civic engagement, and understanding of community concerns. • The Department implemented additional “Implicit Biased Fair and Impartial Policing” training for sworn supervisory staff as a part of a County-wide law enforcement commitment to enhance supervisory training and implicit biased police management. All of the Department’s mid-level and management supervisory sworn staff attended the California Peace Officer Standards and Training (POST) recommended training courses. • In addition to the current community outreach programs in FY 2016/17, the Department focused on age-friendly outreach programs for the senior citizen community, specific to fraud and internet crime prevention education. Officers and Detectives hosted four senior citizen crime prevention forum presentations a various senior living residence locations in Town. D – 120 POLICE DEPARTMENT  ACCOMPLISHMENTS Core Values Accomplishments Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational and individual enrichment • The School Resource Officer provided recurring Digital Media Safety and Cyberbullying training to the local Los Gatos Union School District Schools and Los Gatos High School. In addition, in partnership with other law enforcement professionals and St. Mary’s School to promote Digital Media Safety, the Police Department provided an educational training course for students at St. Mary’s School, followed by a panel discussion with parents of the students. • The Youth Commission implemented phase two of the Town’s “No Smoking” ordinance, requiring the licensing of tobacco retailers and adding Section 18.60.020 to the Town Code. • The Youth Commission developed community programs to assist youth with managing mental health and stress, hosting SAT/ACT workshops, and developing safe activities with the Under 21 Club. D – 121 POLICE DEPARTMENT  ACCOMPLISHMENTS Core Values Accomplishments Public Safety Ensure public safety through proactive community policing, affective emergency response, and community-wide emergency preparedness • During FY 2016/17, the Department continued the collaborative efforts with Safe Routes to School, Traffic Safe Communities, local schools, and the Parks and Public Works Department to promote pedestrian and bicycle safety programs. These programs consisted of increasing enforcement around the schools, participating in Bicycle Rodeos, working with coalitions and Safe Routes Committee liaisons, identifying alternate safe bicycle and pedestrian routes, and suggesting improvements and recommendations for safe routes infrastructure. • The Police Department developed a Town of Los Gatos Employee Safety Plans as a procedural reference guide for response to emergencies and disasters at the different town facilities. The Emergency Safety Plans were implemented through an all staff “Hazard Response” training for each Department in the Town, in which staff members were provided emergency response training by the Police Department. • In FY 2016/17, the Police Department partnered with Crisis Text Line in an effort to promote alternative mental crisis communications with mental health professionals from a mobile device. As a part of the program, the Police Department integrated the Crisis Text Line services into community group resources such as Court Appointed Special Advocates (CASA), Drug Free, Counseling and Support Services for Youth (CASSY), the Youth Commission, and other social club organizations as an alternative to obtain crisis services and solicit emergency response services. • In collaboration with private organizations, religious organizations, and other public facilities in Town, the Department conducted threat assessments and risk analysis in partnership with assisting the organizations in establishing site emergency response protocols. In addition, the SWAT Team provided hands on training with the different public and private organizations in preparation and planning for an active intruder and critical infrastructure protection. D – 122 POLICE DEPARTMENT  ACCOMPLISHMENTS Core Values Accomplishments Public Safety Ensure public safety through proactive community policing, affective emergency response, and community-wide emergency preparedness • The Department participated in the writing and submission of an Emergency Management Performance Grant (EMPG), for the funding of 12 new laptops for the Town of Los Gatos Emergency Operations Center. In January 2017, the Department was awarded $11,000 for the allocation of replacing the Emergency Operations Center laptops, increasing the technology capabilities in emergency management and the EOC. D – 123 POLICE DEPARTMENT  2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses and Permits 95,448$ 85,684$ 94,363$ 77,680$ 79,630$ 80,630$ Intergovernmental Revenues 720,689 751,219 853,715 669,024 679,810 617,715 Service Charge 883,641 707,270 972,570 1,011,945 1,020,796 1,070,555 Fines & Forfeitures 718,415 792,100 809,014 602,800 672,800 654,800 Other Revenues 812,398 1,193,638 626,526 59,566 74,791 109,272 TOTAL REVENUES 3,230,591$ 3,529,911$ 3,356,188$ 2,421,015$ 2,527,827$ 2,532,972$ EXPENDITURES Salaries and Benefits 10,350,064$ 10,100,411$ 10,470,070$ 11,141,394$ 10,264,102$ 12,247,734$ Operating Expenditures 1,700,955 2,030,309 1,535,609 999,908 1,056,272 1,189,880 Grants 638 24,870 32,601 20,000 20,000 20,000 Fixed Assets 56,606 75,442 35,633 - - - Internal Service Charges 1,565,010 1,615,997 1,770,773 1,758,745 1,758,574 1,997,618 TOTAL EXPENDITURES 13,673,273$ 13,847,029$ 13,844,686$ 13,920,047$ 13,098,948$ 15,455,232$ Transfers Out Transfers Out to Equipment Replacement -$ 15,000$ -$ -$ -$ -$ Total Transfers Out -$ 15,000$ -$ -$ -$ -$ TOTALEXPENDITUES & TRANSFERS OUT 13,673,273$ 13,862,029$ 13,844,686$ 13,920,047$ 13,098,948$ 15,455,232$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Adopted PROGRAM Administration 561,900$ 774,187$ 889,742$ 992,203$ 976,338$ 1,023,502$ Records & Communications 1,607,418 1,756,928 1,914,577 2,196,149 1,958,590 2,306,596 Patrol 6,518,339 6,256,175 6,115,836 6,391,211 5,686,385 6,913,430 Traffic 942,247 816,227 719,561 869,904 904,879 977,570 Investigations 1,884,190 2,107,270 2,208,996 2,210,203 2,345,258 2,672,945 Personnel & Community Services 576,204 362,987 701,737 584,629 579,178 771,826 Parking 732,415 649,866 665,850 661,364 624,753 726,581 Operating Grants 78,235 30 71,920 5,384 14,567 53,781 Pass -Through Accounts 772,325 1,123,359 556,467 9,000 9,000 9,000 TOTAL EXPENDITURES 13,673,273$ 13,847,029$ 13,844,686$ 13,920,047$ 13,098,948$ 15,455,231$ DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES D – 124  POLICE DEPARTMENT  Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 General Fund Funded Funded Funded Funded Proposed Chief of Police 1.00 1.00 1.00 1.00 1.00 Police Captain 2.00 2.00 1.00 1.00 1.00 Police Lieutenant - - 2.00 2.00 2.00 Police Sergeant 6.00 6.00 6.00 6.00 6.00 Police Corporal 5.00 5.00 4.00 4.00 4.00 Police Officer 24.00 26.00 25.00 25.00 25.00 Community Services Officer 4.00 2.00 2.00 2.00 1.00 Police Admin. Services Mgr. 1.00 - - - - Records & Evidence Manager - 1.00 1.00 - - Police Records Manager - - - 1.00 1.00 Administrative Analyst - 1.00 1.00 1.00 1.00 Executive Assistant to Chief 1.00 1.00 1.00 1.00 1.00 Communication Dispatcher Lead - - 1.00 1.00 1.00 Communications Dispatcher 7.50 7.00 6.00 7.00 7.00 Parking Control Officer 2.00 2.00 2.00 2.00 2.00 Police Records Specialist 3.00 5.00 5.00 4.00 4.00 Community Outreach Coordinator - - - - 1.00 Human Resources Specialist - - - - 1.00 Total General Fund FTEs 56.50 59.00 58.00 58.00 59.00 Temporary Staff Hours Community Service Officer Intern 2,080 1,040 1,938 1,725 1,040 Community Service Officer - 1,000 250 390 390 Police Officer - 675 1,119 300 300 IT Technician - - - - 685 Parking Control Officer - - 357 357 357 Police Records Specialist 320 320 320 320 1,360 Communications Dispatcher 520 942 520 330 330 CSO-Investigation Evidence - - - - 1,040 Total Annual Hours 2,920 3,977 4,504 3,422 5,502 DEPARTMENT STAFFING D – 125 Police Department POLICE ADMINISTRATION PROGRAM 4101 PROGRAM PURPOSE The Police Administration Program is responsible for ensuring public safety through proactive community policing, effective emergency response, and collaborative community-wide emergency preparedness by effectively managing departmental programs, developing policy, planning and implementing organizational tasks, overseeing the departmental budget and expenditures, and coordinating with other Town Departments. The Administration Program supports responsive, effective, and efficient police services and a strong police community partnership. Departmental operations are consistent with Town policies, core values, and community safety needs, with particular focus on: open communication with the public, responsive crime suppression and prevention programs, directed traffic enforcement to promote safe and orderly traffic flow on Town streets, and comprehensive emergency preparedness. The Police Administration Program is dedicated to furthering the mission and goals of the Department and to supporting the personnel in their duties. The Police Administration Program continually collaborates with other Town Departments to increase effectiveness and enhance quality of life for the citizens of Los Gatos. This program also provides the primary support for the Town’s Youth Commission activities. BUDGET OVERVIEW The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. D – 126  POLICE DEPARTMENT  Police Administration 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits 2,420$ 1,545$ 927$ 500$ 500$ 2,000$ Intergovernmental Revenue - - - - - - Service Charges - - - - - - Grants - - - - - - Fines & Forfeitures - - - - - - Other Revenues 8,963 44,870 32,601 20,000 20,000 20,000 TOTAL REVENUES 11,383$ 46,415$ 33,528$ 20,500$ 20,500$ 22,000$ EXPENDITURES Salaries and Benefits 428,987$ 604,852$ 691,914$ 800,401$ 784,689$ 837,240$ Operating Expenditures 28,268 19,227 17,675 21,200 21,200 21,500 Grants 638 24,870 32,601 20,000 20,000 20,000 Fixed Assets - - - - - - Internal Service Charges 104,007 125,238 147,552 150,602 150,449 144,762 TOTAL EXPENDITURES 561,900$ 774,187$ 889,742$ 992,203$ 976,338$ 1,023,502$ TRANSFERS OUT Transfer to Equipment Replacement -$ 15,000$ -$ -$ -$ -$ TOTAL TRANSFERS OUT - 15,000 - - - - TOTAL EXPENDITURES & TRANSFERS OUT 561,900 789,187 889,742 992,203 976,338 1,023,502$ SUMMARY OF REVENUES AND EXPENDITURES D – 127  POLICE DEPARTMENT  Police Administration FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative governance Organizational Development & Accountability The Police Administration will continue to evaluate the primary job responsibilities under various job classifications and identify opportunities to improve efficiency and effectiveness of the Police Department. Activities will include strengthening the core management team through skill development, cross-training within programs, and conducting team-based work activities. Other activities will include recruitment for vacant positions, promotional processes, and succession planning. Budget Oversight During FY 2017/18, the Administration will continue to track and monitor program budgets including overtime, salaries and benefits, and operational components on a monthly basis to ensure the Department remains fiscally responsible. The Department will continue to seek grant opportunities in an effort to maximize potential revenue sources. Fair and Impartial Policing and Training The Police Administration will continue to seek training opportunities to enhance and promote a responsive and accountable government. During FY 2017/18, continuous training will be completed from national experts on science-based Fair and Impartial Policing curricula, ongoing Crisis Intervention and Mental Health training, Procedural Justice Training, Automated External Defibrillator (AED) and CPR mandates, Tactical Communications, and Legislative Update. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Youth Commission The Youth Commission works under the oversight of the Police Administration to solicit input for various issues that are important to local youth in Town, and it participates in local activities and projects which continue to positively impact the community. In addition, the Commission will develop strategies to conduct community outreach and signage in promotion of the “No Smoking” ordinance. During FY 2017/18 six additional members will be added to the Youth Commission for a total of 26 Youth Commissioners. Within the Youth Commission, designated members will be appointed as liaisons and alternates to six Town Boards, Commissions, and Committees. D – 128  POLICE DEPARTMENT  Police Administration FY 2017/18 KEY PROJECTS Core Goals Key Projects Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Community Outreach Goal The Police Administration will oversee and monitor all personnel efforts toward achievement of the Department’s vision and its ultimate goal of “knowing everyone in our community.” During FY 2017/18 the Department will continue to foster relationships and host community events such as “Coffee With a Cop,” LGHS Job Shadowing Program, Boy Scouts and Girl Scouts of America tours and presentations, and participate in crime prevention educational community forums. Public Communications and Outreach The Police Administration will evaluate the use of social media communication platforms to provide community outreach and transparency about special events, community alerts and advisories, and engage the community in crime prevention efforts. The use of social media communications provide timely information to the public, through the Department’s use of Nixle, Alert SCC, Nextdoor, and distribution of weekly crime blotters. The Department will continue to explore the use of additional social media communications platforms to promote transparency and effective public communication. Emergency Preparedness and Training The Police Department continues to collaborate with Town representatives for emergency management and emergency volunteer coordination, additional partnership with the Santa Clara County Fire Department ensures critical planning and training for wildland fire evacuation, earthquake preparedness, flood evacuation, and other critical disaster preparation. During FY 2017/18, the Police Department will evaluate key roles of Emergency Operation Center (EOC) staffing and will host training and exercises related to preparedness training for new staff members as it relates to assigned roles and positions in the Emergency Operations Center. D – 129  POLICE DEPARTMENT  Police Administration KEY PROGRAM SERVICES • Administers Department operations. • Provides policy and operational guidance for staff. • Develops and monitors the Department’s annual operating budget. • Provides departmental financial/budget statistical analysis. • Serves as Department liaison for Silicon Valley Regional Interoperability Authority (SVRIA) Committee. • Develops succession planning goals and opportunities for staff. • Oversees Police Department’s media and mass notification communications. • Provides project management on special projects. • Manages division programs and personnel. Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Chief of Police 1.00 1.00 1.00 1.00 1.00 Police Captain - - 1.00 1.00 1.00 Administrative Analyst - 1.00 1.00 1.00 1.00 Executive Assistant to Chief 1.00 1.00 1.00 1.00 1.00 Total Administration FTEs 2.00 3.00 4.00 4.00 4.00 POLICE ADMINISTRATION PROGRAM STAFFING D – 130 D – 131 Police Department RECORDS AND COMMUNICATIONS PROGRAM 4201 PROGRAM PURPOSE The Police Department Communications Center (Dispatch) is a 24/7 division which handles the majority of all incoming phone calls to the Police Department on a daily basis, including the answering of all 9-1-1 emergency calls for service. In addition, dispatchers are responsible for triaging calls for service, assigning the appropriate Police personnel to respond to incidents, or transferring the calls to other designated agencies. The Communications Center functions as the central point of contact for all Department personnel as well as emergency and routine needs for the community. The Communications Center is supervised by a Lead Dispatcher and a Police Lieutenant. The Police Department Records Division serves as a repository for all police records. This unit is responsible for accurate data entry and maintenance of reported police activity in all systems including: In-house records management systems, and county, state, and federal database systems. These systems include reporting crime statistics to the state, processing criminal and traffic warrants, processing criminal and traffic citations, and processing all case reports sent to the District Attorney’s Office for prosecution. As the primary point of contact for the public, Records personnel are required to maintain a high degree of professionalism and customer service. Records personnel provide general information to the public on police-related matters and participate in responding to public records requests. The Records Division is supervised by a Records Manager who is responsible for monitoring all departmental criminal and statistical data, reporting required information to Department of Justice, and serves as the Department liaison for the Custodian of Records for police reports, public records requests, and mandated statistical data reporting. D – 132  POLICE DEPARTMENT  Records and Communications BUDGET OVERVIEW In FY 2016/17, the Records and Communication Program added a 1.0 FTE Dispatch position increasing the Communication Center to 8.0 FTE Communications Dispatchers. Communication Dispatcher temporary staffing hours remain for FY 2017/18. The Lead Dispatcher position adopted in FY 2015/16 continues and supervises 7.0 FTE Dispatchers utilizing a modified work schedule that incorporates both 10-hour and 12-hour shifts to maximize personnel coverage and efficiency. The Lead Dispatch position is under the supervision of the Support Services Lieutenant. Temporary staffing hours have been outlined for an IT Technician to work with management on the regional radio project as well as address police radio and other IT related matters. In addition, temporary staffing hours for a Records Specialist have been added as a one-time request to assist with the increased number of reported and processed cases, partially due to recent changes in legislation and increased workload. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Service Charges 13,134 13,331 8,919 11,800 7,000 9,800 TOTAL REVENUES 13,185$ 46,526$ 9,993$ 11,800$ 7,000$ 9,800$ EXPENDITURES Salaries and Benefits 1,290,948$ 1,400,488$ 1,478,310$ 1,754,967$ 1,504,426$ 1,898,790$ Operating Expenditures 213,799 179,624 247,780 248,400 261,400 261,600 Fixed Assets 10,663 75,442 - - - - Internal Service Charges 92,008 101,374 188,487 192,782 192,764 146,206 TOTAL EXPENDITURES 1,607,418$ 1,756,928$ 1,914,577$ 2,196,149$ 1,958,590$ 2,306,596$ SUMMARY OF REVENUES AND EXPENDITURES D – 133  POLICE DEPARTMENT  Records and Communications FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Records Data Collection During FY 2017/18, the Records Unit will explore upcoming mandatory data collection and reporting requirements specific to AB 953 and the state-wide transition from Uniform Crime Reporting to National Incident Based Reporting Systems. Staff will continue to identify software programs, CAD/RMS system capabilities, and third-party vendors which may assist in the collection of required data (beginning in 2021) to alleviate extensive staff workload. Traffic Collision Software Program During FY 2017/18, the Records Program will continue to evaluate the fiscal and operational impacts of integrating traffic collision collection software programs with our current Records Management Systems. Traffic collision reporting software programs provide expeditious electronic uploading and transfer of data in releasing, analyzing, and publishing collision information with both internal and external entities. As a part of this data collection software program, traffic data can be utilized in assisting traffic engineers, incorporated into Traffic Safety Programs, and considered in traffic deployment plans. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Records Unit and Community Volunteers The Records unit will collaborate with local higher educational institutions in the college internship program, providing students with an introduction to local law enforcement. Staff will also continue to incorporate Volunteers in Policing into the daily functions of customer service based duties at the Police Department. Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Interoperability Communication System In collaboration with the Silicon Valley Regional Interoperability Authority Project, the Police Department will continue to incorporate a fully interoperable mobile radio system which extends to other Bay Area Counties. Staff is scheduled to procure and implement mobile radios for all Police and Public Works vehicles during FY 2017/18. The interoperability of this communications project (SVRIA) will assist during emergency disasters, mutual aid, and crisis communications. D – 134  POLICE DEPARTMENT  Records and Communications FY 2017/18 KEY PROJECTS KEY PROGRAM SERVICES Records • Responds to customer inquiries. • Processes police reports and citations. • Processes criminal and traffic warrants. • Provides fingerprint services to citizens. • Completes required statistical reporting to state and federal government. • Processes subpoena and Public Records Requests for citizens. • Distributes statistical information to Patrol and Investigations as needed. Communications • Responds to 911 calls and other emergency/non-emergency calls. • Provides dispatch service to patrol. • Dispatches emergency personnel. • Handles customer inquiries. • Maintains audio recordings of radio and phone traffic; provides copies for court and Department use. Core Goals Key Projects Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Enhanced Technology During FY 2017/18, the Department will continue to explore enhanced anticipated technology related to communications and records management. With an increase in mobile technology, local law enforcement agencies are conducting research in understanding the workflow impacts and service benefits to implementing systems such as Text-to-911. In addition, Records will be exploring the implementation of an upgraded online crime reporting system and Records Management Systems which can integrate with other technology software and allow for efficient workflow. D – 135  POLICE DEPARTMENT  Records and Communications Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Police Lieutenant - - 0.30 0.30 0.30 Police Records Manager - - - 1.00 1.00 Police Admin. Services Mgr.1.00 - - - - Records & Evidence Manager - 1.00 1.00 - - Communications Dispatcher Lead - - 1.00 1.00 1.00 Communications Dispatcher 7.50 7.00 6.00 7.00 7.00 Police Records Specialist 3.00 3.00 3.00 3.00 3.00 Total Records & Comm. FTEs 11.50 11.00 11.30 12.30 12.30 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed IT Technician - - 898 685 685 Police Records Specialist 320 320 320 320 1,360 Communications Dispatcher 520 942 520 330 330 Total Annual Hours 840 1,262 1,738 1,335 2,375 RECORDS & COMMUNICATION PROGRAM STAFFING D – 136  POLICE DEPARTMENT  Records and Communications Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Statistics completed on or before the 15th day of the month or nearest working date.Data Not Available 100%100%100%100% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.Total number of CAD events created:**42,774 47,753 55,994 52,640 49,790 2.Total landline and wireless calls received by dispatch (does not include 911 calls): 49,718 48,638 48,404 46,706 47,916 3.Number of 911 calls received:10,336 10,251 10,181 10,136 10,266 4.Number of stored and/or impounded vehicles processed:189 179 148 196 178 5.Number of police reports processed:2,101 2,966 4,177 4,220 3,336 6.Number of public contacts at Records:***Data Not Available 4,022 4,042 4,000 4,021 7.Number of citations processed:***Data Not Available 4,952 6,338 5,463 5,584 * New measure effective FY 2014/15. ** A computer-aided dispatch (CAD) event documents all Police-related activity by sworn and civilian personnel. *** New measure effective FY 2015/16, historical data provided when available. Provide efficient delivery of department statistics by the 15th of every month.* D – 137 Police Department PERSONNEL AND COMMUNITY SERVICES PROGRAM 4202 PROGRAM PURPOSE The Personnel and Community Services (PCS) Program provides an essential level of support to the Police Department by overseeing the Department’s adherence to state and federal mandates and values the community’s desire for a transparent governmental police agency. The PCS Program supports the Police Department with recruitment of new personnel, continued education, in-service training, and professional growth of personnel as required through California Peace Officer Standards. Additionally, the PCS Program supports the Police Department with: training, succession planning, organizational development, administration of crime prevention activities and programs, coordination of the Town’s emergency management and response activities. The PCS Program and Community Outreach Coordinator supports the Police Department with oversight and management of numerous volunteer programs. The PCS program engages interested residents to volunteer in various capacities throughout the Police Department. The Personnel and Community Services Program is also responsible for monitoring and controlling access to all Police Department secured information technology systems and programs. The Division partners with Town Information Technology (IT) Program staff to ensure the contemporary management of Police information networks, equipment, and software. The Police Department collaborates with the Town Manager’s Office to administer emergency management and preparedness, by working with the Santa Clara County Fire Department and engaging in a collective effort with regional emergency management entities in preparation and planning for earthquakes, floods, and potential loss of a viable drinking water source. D – 138  POLICE DEPARTMENT  Personnel and Community Services BUDGET OVERVIEW A 0.70 FTE Lieutenant oversees the management of Personnel and Community Services. Responsibilities include management of community outreach efforts, volunteer programs, crime prevention, Department personnel hiring, training, emergency management, and Department technology support. As previously discussed, the FY 2017/18 Police Department budget includes one operational reclassification. The reclassification will provide an annual ongoing savings to the Town of $7,496. The 1.0 FTE Community Service Officer assigned to Personnel and Community Services is now reclassified to a 1.0 FTE Human Resources Specialist, this position will remaining in the PCS program. The Human Resources Specialist position will support the PCS with the recruitment of new personnel, continued education and training of personnel, and succession planning. While historically the Community Outreach Coordinator position has been funded in the Town’s Non-Departmental Program, the work occurs in the Police Department. Therefore, with this budget the funds are being transferred to the Personnel and Community Service program. Additional temporary staffing hours will continue for the FY 2017/18 budget to augment required background investigations. The Department is actively recruiting due to current and anticipated vacancies going into FY 2017/18. Given these variables, it is expected the Personnel Division will continue to remain in a hiring and recruitment stage throughout FY 2017/18. With the lengthy recruitment cycle involved in hiring police sworn and civilian personnel, workloads are anticipated to increase for staff. D – 139  POLICE DEPARTMENT  Personnel and Community Services FY 2017/18 KEY PROJECTS 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Intergovernmental Revenue 374,660 384,618 334,483 294,640 294,640 294,640 Service Charges 117,668 160,476 - - - - Fines & Forfeitures - - - - - - Other Revenues 280 1,220 2,315 1,000 1,000 1,000 TOTAL REVENUES 492,608$ 546,314$ 336,798$ 295,640$ 295,640$ 295,640$ EXPENDITURES Salaries and Benefits 352,795$ 134,059$ 422,193$ 320,765$ 314,714$ 492,563$ Operating Expenditures 21,181 21,806 11,580 19,950 20,550 21,550 Fixed Assets - - - - - - Internal Service Charges 202,228 207,122 267,964 243,914 243,914 257,713 TOTAL EXPENDITURES 576,204$ 362,987$ 701,737$ 584,629$ 579,178$ 771,826$ SUMMARY OF REVENUES AND EXPENDITURES Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Department Training Plan Personnel and Community Services staff will continue to monitor and manage training for all Department employees. During FY 2017/18, this unit will refine and develop a revised staff training plan which will adhere to mandates, incorporate amendments to POST guidelines, manage training requests for cost efficiency, and promote succession planning and career development in the organization. Revitalization of Recruitment Team The Department is committed to continuous recruitment of sworn and non-sworn candidates due to anticipated vacancies as a result of succession planning and retirements. During FY 17/18, the newly developed recruitment team will deploy new recruitment techniques and opportunities to identify qualified prospective candidates. D – 140  POLICE DEPARTMENT  Personnel and Community Services FY 2017/18 KEY PROJECTS Core Goals Key Projects Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Coordination and Growth of Volunteer Programs Personnel and Community Services will focus on expanding the role of volunteers to support appropriate public safety programs, including the Volunteers in Policing Program (VIP), Community Emergency Response Team (CERT), Youth Police Explorers Program, and the Disaster Aid and Response Team (DART). In addition, the Department will focus on evaluating the ability of cross-training the volunteer teams to increase the effectiveness and job function contributions of volunteers. “Coffee With a Cop” Events Personnel and Community Services will continue to provide outreach and opportunities for citizen engagement with the department through the Coffee With a Cop Program. Neighborhood and Business Watch Programs During FY 2017/18, the Personnel and Community Services Unit will continually work to expand the Neighborhood and Business Watch Programs, targeting crime prevention, awareness, and education. Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Emergency Operations Plan During FY 2017/18, Personnel and Community Service staff will continue to collaborate with Santa Clara County Fire and Santa Clara County Office of Emergency Safety in the identification and updating of critical forms, maps, and EOC equipment to enhance the ability to effectively respond to disasters and critical events or incidents. In addition, the Department will coordinate efforts with local and county jurisdictions to focus on the development and revisions to current Santa Clara County OES annex documents and the Town of Los Gatos Emergency Operations Plan. D – 141  POLICE DEPARTMENT  Personnel and Community Services KEY PROGRAM SERVICES • Manages personnel hiring. • Manages community outreach through social media and community databases. • Manages the Department training program. • Coordinates the Department’s community outreach, crime prevention, and neighborhood organization efforts. • Manages the Department’s volunteer program. • Coordinates emergency management response, training of personnel, and maintenance of the Emergency Operations Center (EOC). • Develops, coordinates, and manages the Community Emergency Response Team (CERT) and the Disaster Aide Response Team (DART). Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Police Lieutenant - - 0.70 0.70 0.70 Police Officer 1.00 - - - - Community Services Officer 1.30 1.00 2.00 1.00 - Police Records Specialist - 0.30 - - - Community Outreach Coordinator*- - - - 1.00 Human Resources Specialist - - - - 1.00 Total Personnel & CS FTEs 2.30 1.30 2.70 1.70 2.70 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Police Officer - 96 296 300 300 Total Annual Hours - 96 296 300 300 * PERSONNEL & COMMUNITY SERVICE PROGRAM STAFFING While historically the Community Outreach Coordinator position has been funded in the Town’s Non- Departmental Program, the work occurs in the Police Department. Therefore, with this budget the funds are being transferred to the Personnel and Community Service program. D – 142  POLICE DEPARTMENT  Personnel and Community Services Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of Volunteers in Policing (VIP) reporting satisfaction with their assignments:100%100%100%100%100% 2.Prepare resident volunteers to assist in an emergency. a.Percentage of CERT participants better prepared to assist in an emergency:100%100%100%100%100% 3. a.Percentage of Town volunteers who find their participation in Town volunteer activities to be a positive experience: 100%100%100%100%100% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.67 65 115 122 92 2.40 12 52 62 41 3.30 25 30 33 30 4.38,746 35,526 37,840 24,359 34,118 5.$781,785 $799,335 $851,400 $548,077 $745,149 6.2,715 2,062 1,894 2,050 2,180 7.$57,042 $43,302 $39,774 $43,050 $45,792 8.39 21 36 36 33 9.406 413 441 441 441 Number of hours of volunteer (VIP) service: Enhance the breadth of public safety services provided through the effective use of volunteers. Hours of essential training provided to each person in a specialized assignment (Detective Bureau, Traffic, etc.): Total number of hours volunteered Town-wide (not including VIP): Total value of volunteer hours (not including VIP): Create a spirit of cooperation between the Town organization and the community. Total number of active trained CERT personnel: Dollar value of total annual volunteer (VIP) hours of service: Number of CERT personnel trained this year: Average hours of training for per sworn officer: Average hours of training for non-sworn personnel: D – 143 Police Department PATROL PROGRAM 4301 PROGRAM PURPOSE The Patrol Program provides both proactive and reactive service to the community through responding to emergency and non-emergency calls for service, conducting traffic enforcement, engaging in assigned and self-initiated enforcement actions, and utilizing community problem solving techniques designed to increase community safety. The Patrol Program utilizes innovative law enforcement techniques and crime suppression deployment plans to reduce crime, provide community service and outreach to the citizens, and maintain a safe and secure community. The Patrol Officer initiates citizen contacts, responds to calls for service, makes arrests, conducts criminal investigations, participates in community and neighborhood watch meetings, utilizes predictive policing problem solving strategies, provides directed patrol in crime areas, and issues traffic citations and warnings. Within this program, specially trained officers participate as Field Training Officers (FTO), Crisis Intervention Officers (CIT), K-9 Officers, and Bicycle Officers. Officers in this program also assume other assignments on specialized Department teams. The specialized teams provide support to the Patrol Program, including the Crisis Response Unit (CRU), Crisis Negotiation Team (CNT), Traffic Collision Investigation/Crime Scene Team, Peer Support Team, and the Bicycle Team. The Reserve Police Officer program in this Division consists of voluntary part-time, sworn employees who are trained to assist regular patrol activities as a second Officer in a vehicle or during special events. These volunteer sworn officers are certified and maintain standards as required by California Peace Officers Standards and Training. During FY16/17, Reserve Officers were utilized to supplement patrol staffing, perform directed patrol in crime targeted areas, assist with traffic control, work special events, and assist with administrative and criminal booking procedures. D – 144  POLICE DEPARTMENT  Patrol Program The Community Service Officer (CSO) Intern is a part-time, non-sworn position and will continue to be funded through temporary hours. The primary duties of the CSO Intern consist of responding to non-emergency calls for service where suspects are no longer present, investigating non-injury traffic collisions and criminal incidents when no suspect information is identified, assisting patrol officers in non-enforcement administrative situations, and assisting in the processing and collection of evidence at crime scenes. BUDGET OVERVIEW The Police Department and the Town of Los Gatos have enjoyed a very good relationship with the City of Monte Sereno. In FY 2015/16, the Town entered into a restructured, ten year agreement effective July 1, 2015, to provide Law Enforcement Services to the City of Monte Sereno. This agreement allows for consideration of ongoing updates in law enforcement practices and more closely reflects the workload and modernized service delivery models for both the Town and the City of Monte Sereno. The annual contract rate based on the Average Annual Consumer Price Index for benefits for the 12-month period ending December of the previous calendar year, plus 2% will increase the FY 2017/18 contract to $790,342. In FY 2016/17, the Department hired three new Officers to replace Officers who retired or separated. Additionally, the Department carried five vacancies within the Patrol Program for extended periods of time due to on the job related injuries and unexpected leaves. As a result, Officers assigned to other Divisions were temporarily re-assigned to patrol to maintain current staffing levels and service. It is anticipated some of these vacancies will carry over into FY 2017/18. Additionally, it is expected there will be several upcoming vacancies due to retirements from FY 2016/17. This means the Department will continue to remain in a hiring and recruitment stage throughout FY 2017/18 with an increased workload while staff backfills vacant positions. In consideration of staff reductions from prior years and for cost savings, patrol Officers continue to work 12-hour shifts to maintain adequate staffing levels on each shift. While this shift schedule has proven to be inflexible yet necessary given the current staffing levels, the Department is committed to continually reviewing staffing models based on available resources and the fiscal stability. During FY 2016/17 several emergency hybrid schedules were implemented for individual officers to allow for coverage across all patrol shifts. D – 145  POLICE DEPARTMENT  Patrol Program FY 2017/18 KEY PROJECTS 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits 19,922$ 21,704$ 29,676$ 25,130$ 25,130$ 25,130$ Intergovernmental Revenue 12,033 4,327 5,727 14,000 15,000 14,000 Service Charges 608,789 440,168 760,043 796,510 793,510 833,862 Fines & Forfeitures 20,845 15,768 32,874 20,100 35,100 25,100 Other Revenues - - - - - - TOTAL REVENUES 661,589$ 481,967$ 828,320$ 855,740$ 868,740$ 898,092$ EXPENDITURES Salaries and Benefits 5,683,098$ 5,447,010$ 5,345,598$ 5,549,533$ 4,838,244$ 5,832,078$ Operating Expenditures 132,349 110,285 119,956 150,026 156,489 194,576 Fixed Assets - - - - - - Internal Service Charges 702,892 698,880 650,282 691,652 691,652 886,776 TOTAL EXPENDITURES 6,518,339$ 6,256,175$ 6,115,836$ 6,391,211$ 5,686,385$ 6,913,430$ SUMMARY OF REVENUES AND EXPENDITURES Core Goals Key Projects Community Character Preserve and enhance the appearance, character and environmental quality of the community. Homeless Outreach Project The Patrol Program designates specific Officers to act as liaison Officers to the transient population in Town and to social services organizations. During FY 2017/18, the Patrol Program will incorporate grant funding in the continued efforts to establish and promote outreach and services, conduct encampment clean-up in designated areas, and identify critical physical and mental health resources for the transient population. The Homeless Outreach Project will improve quality of life, reduce criminal activity, and maintain community safety in Town. D – 146  POLICE DEPARTMENT  Patrol Program FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative governance Crisis Intervention Training The Department recognizes the importance of continuing to provide in- service training applicable to crisis intervention and supporting individuals who suffer with mental illness. Officers identify signs and symptoms of mental health conditions, learn effective communication tools, and develop mechanisms of de-escalating behavioral crisis in the field. In FY 2017/18, the Department will continue to train officers using advanced mental health training and the 40-hour Crisis Intervention Team (CIT) Academy as means for de-escalation of potential critical incidents. Body Worn Camera Replacement The Patrol Program will continue to explore the current technology and functionality of body worn cameras being utilized in comparison to upgraded systems currently being used by other agencies. In anticipation of replacing existing body worn cameras in the future, the Patrol Program will continue testing various cameras and enhanced capabilities of other digital evidence systems. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Community Outreach and Participation The Department will continue to have Officers and civilian staff participate in the Leadership Los Gatos program throughout the next fiscal year. The program has proven beneficial in building community relationships, enhancing working relationships between Town Departments, and providing Police staff with enhanced knowledge of civic enrichment in Los Gatos. During FY 2017/18, the Patrol Program will participate in community outreach programs such as Coffee with a Cop, local social club presentations, neighborhood watch programs, Special Olympics, and local school activities. In addition, the Patrol Program will continue to encourage citizen participation in the ride along program, station tours, community debriefings, and Volunteers in Policing. D – 147  POLICE DEPARTMENT  Patrol Program FY 2017/18 KEY PROJECTS Core Goals Key Projects Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Directed Patrol Plans The Department will continue to identify current crime trends and implement various patrol plans and community outreach strategies every six months, in an effort to reduce specific crime types. Patrol plans consist of increased directed enforcement patrol, undercover operations, crime analysis, and increased proactivity by patrol officers in crime suppression areas. The Patrol Program will continue to conduct monthly analysis of directed patrol plans to measure effective and non-effective strategies, and work in coordination with Neighborhood Watch Groups in community policing efforts. Emergency Safety Planning & Site Assessments The Department works collaboratively with the community in solving and preventing crime through innovative programs. During FY 2017/18 the Patrol Program will continue working with private business corporations and private schools in developing ongoing security assessment and building a foundation for developing individual Emergency Action Plans (EAP). The participation and collaboration in developing these emergency action plans promotes a unified response, consistent training, and an opportunity for patrol to better understand threats and vulnerabilities throughout the Town. D – 148  POLICE DEPARTMENT  Patrol Program KEY PROGRAM SERVICES • Responds to emergency and non-emergency calls for service. • Performs directed patrol and self-initiated activity during non-committed time. • Investigates crimes and traffic accidents. • Utilizes innovative crime suppression techniques and directed patrol plans to reduce crime. • Supports the Department’s traffic enforcement control program, including issuance of traffic and parking citations. • Solves community problems using proactive Problem Oriented Policing techniques. • Builds relationships within the community to enhance public safety and increase community policing. • Oversees the deployment of volunteer police teams such as, the Disaster Aid Response Team (DART), Reserve Police Officers, and the Police Explorer Post. Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Police Captain 1.00 1.00 - - - Police Lieutenant - - 0.50 0.50 0.50 Police Sergeant 4.00 4.00 4.00 4.00 4.00 Police Corporal 4.00 4.00 4.00 4.00 4.00 Police Officer 17.00 19.00 17.00 17.00 17.00 Total Patrol Program FTEs 26.00 28.00 25.50 25.50 25.50 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Community Service Officer Intern 2,080 1,040 1,040 1,040 1,040 Community Service Officer - 1,000 250 390 390 Police Officer - 530 - - - Total Annual Hours 2,080 2,570 1,290 1,430 1,430 PATROL PROGRAM STAFFING D – 149  POLICE DEPARTMENT  Patrol Program Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Average response time - Priority I calls:4:13 4:36 4:27 4:25 5:00 Previously Reported b.Average response time - Priority II calls:6:50 6:33 6:49 6:44 10:00 Previously Reported c.Average response time - Priority III calls:8:10 8:12 9:19 8:47 15:00 Previously Reported Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. 96 536 314 337 320 2. 3,666 13,990 13,859 14,155 11,418 3.5,111 13,226 14,782 15,006 12,031 4.Number of Priority IV incidents (other):*Data Not Available 12,370 15,485 16,973 14,943 5.Total number of Incidents:*Data Not Available 40,122 44,440 46,471 43,678 6.837 776 784 756 788 7.$43,281 $40,073 $40,485 $39,039 $40,719 8.1,081 1,079 947 870 900 9.$37,835 $37,765 $29,085 $26,720 $27,641 10.5,921 4,572 4,576 4,576 4,576 11. 639 822 953 1149 891 12.Total number of reports written by Community Service Officer intern:**Data Not Available Data Not Available 131 140 136 *FY 2014/15 incident types were recategorized and consolidated to most accurately reflect previously established priority definitions (I, II, III). Prior year calculations were based upon 9 Priority Types. FY 2014/15 and proceeding will be reflective of 4 Priority Types as defined above. ** New measure effective FY 2015/16. Number of Priority I incidents (immediate emergency with threat of life and public safety hazard):* Provide safe environment through timely response and police assistance. Hours of Volunteer Reserve Officer hours used: Number of Priority II incidents(urgent emergency that requires immediate response):* Number of Priority III incidents (non-emergency):* Total number of arrests by Los Gatos/ Monte Sereno Police Department: Number of hours patrolling Monte Sereno: (Per agreement - 4160 hrs. patrol + 416 traffic/annually) Dollar value of total Disaster Aid Response Team service used: Dollar value of total Reserve Officer hours used: Hours of Disaster Aid Response Team service used: D – 150 D – 151 Police Department TRAFFIC PROGRAM 4302 PROGRAM PURPOSE The Traffic Program is responsible for ensuring the safe and efficient flow of vehicular, bicycle, and pedestrian traffic on Town roadways and highways. The Program is supervised by a Sergeant and staffed by two Officers. Officers assigned to the Traffic Program are responsible for ensuring drivers, bicyclists and pedestrians adhere to the California Vehicle Code and Officers issue traffic citations when practical and/or reasonable. The Officers spend numerous hours utilizing national and regional traffic safety programs and campaigns to manage and coordinate community education activities designed to address traffic complaints, increase bicyclist and pedestrian safety, and reduce personal injuries suffered as a result of traffic collisions. Some of these proactive education activities are designed to educate the youth in bicycle safety, including rules of the road and proper use of safety helmets and equipment. During FY 2016/17, the Traffic Program worked collaboratively with Parks and Public Works in promoting the success of programs such as Safe Routes to School, the “Green Bike Lanes” project, and continuous collaborative efforts with the Traffic Safety and Parking Commission. The Traffic Program also manages and coordinates special event planning and permitting processes which may impact the flow of traffic on roadways or create a potential hazard. BUDGET OVERVIEW The Traffic Program is staffed with a 0.70 FTE Sergeant, who in conjunction with 2.0 FTE Officers, are responsible for developing and implementing bicycle, pedestrian, and vehicular traffic education and enforcement efforts to reduce collisions and related injuries and property damage within the community. D – 152  POLICE DEPARTMENT  Traffic The Sergeant assigned to the Traffic Program is responsible for managing and coordinating special events which impact traffic flow and works collaboratively with the Parks and Public Works Department to ensure road closures and traffic cones are properly placed for these events. The Traffic Program requires outreach to local residents potentially affected by any events in Town. Officers in this program are responsible for managing Safe Routes to Schools campaign (SRTS) and attend monthly meetings regarding traffic safety. The SRTS campaign works to ensure local students have safe passage to and from schools, promoting bicycle safety through annual bicycle rodeos, and providing juveniles with helmets when they are seen riding without a helmet in Town. The Department continues to participate in specialized enforcement activities such as: Driving under the Influence (DUI) enforcement, Distracted Driving enforcement, and Walk-n-Roll to School. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits 32,738$ 21,427$ 21,926$ 13,050$ 14,500$ 13,000$ Intergovernmental Revenue 316,097 324,018 366,266 305,000 305,000 305,000 Service Charges 80,206 85,843 91,051 91,051 107,702 107,702 Fines & Forfeitures 24,762 19,777 20,899 25,200 22,200 22,200 Other Revenues - - - - - - TOTAL REVENUES 453,803$ 451,065$ 500,142$ 434,301$ 449,402$ 447,902$ EXPENDITURES Salaries and Benefits 723,373$ 574,997$ 464,942$ 618,474$ 632,503$ 684,354$ Operating Expenditures 106,583 121,930 122,400 122,657 143,603 143,603 Fixed Assets - - - - - - Internal Service Charges 112,291 119,300 132,219 128,773 128,773 149,613 TOTAL EXPENDITURES 942,247$ 816,227$ 719,561$ 869,904$ 904,879$ 977,570$ SUMMARY OF REVENUES AND EXPENDITURES D – 153  POLICE DEPARTMENT  Traffic FY 2017/18 KEY PROJECTS Core Goals Key Projects Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Juvenile Traffic Diversion Program The Department will continue to work in collaboration with the Santa Clara County Traffic Safe Communities Network (TSCN) in the juvenile traffic diversion program. During FY 2017/18, Officers from both the Traffic and Patrol Programs will host and instruct juvenile traffic diversion courses, educating juveniles on vehicle and pedestrian traffic safety. The program is designed to focus on bicycle and pedestrian safety for juveniles and parents, and provide them with educational approach. Directed Traffic Enforcement Plans The Department will facilitate and manage traffic safety and hazardous area deployment plans derived from citizen concerns, staff requests, traffic safety committees and coalitions, and through collision data. During FY 2017/18, traffic enforcement plans and deterrence models include: deployment of radar trailers, providing education and awareness, enforcement, participation in inter-agency joint traffic campaigns, providing community meetings, and identifying hazardous traffic areas through collaboration with traffic engineers. Traffic and Pedestrian Safety The Traffic Program works in conjunction with the Patrol Program to coordinate efforts of traffic enforcement, traffic calming, and pedestrian safety in Town. The Traffic Program will actively participate and coordinate efforts with local schools and traffic safety committees. The Patrol and Traffic Programs as well as Town staff coordinate traffic calming efforts using the following programs: Operation Safe Passage, Distracted Driver campaigns, Safe Routes to School, Bike and Walk to School Days, and Bicycle Rodeos. Cut-Through Traffic During FY 2017/18, the Department will work collaboratively with the Parks and Public Works Department in the identification of measures and efforts to reduce the increased traffic impacts as a result of Cut-Through vehicle traffic to maintain the public safety and ability for emergency response as necessary. D – 154  POLICE DEPARTMENT  Traffic KEY PROGRAM SERVICES • Responds to and investigates traffic accidents. • Educates the public on traffic safety. • Provides traffic enforcement. • Participates in community traffic safety committees and programs. • Collaborates with Traffic and Parking Commissions. • Ensures traffic safety plans for special events. • Participates in regional efforts to maintain traffic safety. Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Police Sergeant 0.70 0.70 0.70 0.70 0.70 Police Officer 2.00 2.00 2.00 2.00 2.00 Community Services Officer 0.30 - - - - Police Records Specialist - 0.30 - - - Total Traffic Program FTEs 3.00 3.00 2.70 2.70 2.70 TRAFFIC PROGRAM STAFFING D – 155  POLICE DEPARTMENT  Traffic Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of reported traffic collisions involving drugs or alcohol:10.00%4.47%5.70%4.62%4.93% (23)(21)(21)(8)(18) 2. a.Traffic Index:34.43 21.4 23 26 25 Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.3,017 2,709 2,585 2,430 2,685 2.Number of hazardous citations:2,341 1,991 1,945 1,878 2,039 3.Number of courtesy citations issued 1,546 1,937 2,808 2,519 2,203 4.62 47 50 43 51 5.230 469*366 290 295 6.68 93 83 73 79 *Traffic collision report increase due to reports being written for non-injury collisions in lieu of information exchange between parties. Number of injury collisions: Number of DUI arrests: Total number of traffic citations issued (excludes courtesy citations): Number of traffic collision reports: Through directed enforcement, the program seeks to minimize the loss of life and reduce personal injuries due to traffic collisions. Reduction of DUI-involved collisions through specialized enforcement and educational programs. The Traffic Index is a national standard developed by the Federal Office of Traffic Safety (OTS). The index number is determined by dividing the number of hazardous citations issued by the total number of fatal and injury collisions. An index of 25 - 35 is generally viewed as desirable. A substantially higher number would indicate that officers are writing an excessive number of citations that are not related to the causes of traffic collisions. A substantially lower number indicates that inadequate staffing or attention is directed at the traffic collision problem in a jurisdiction. D – 156 D – 157 Police Department INVESTIGATIONS PROGRAM 4303 PROGRAM PURPOSE The Investigations Program conducts both self-initiated and follow-up investigations related to crime, coordinates the prosecution of crimes through the criminal justice system, and performs special operations and enforcement. Officers in this Program spend the majority of their time conducting in-depth investigations, which includes identification of crime trends and patterns, suspect identifications and apprehensions, evidence collection, inter-agency collaboration, and victim outreach. In addition, the Investigations Program maintains the required registration, monitoring, and enforcement of sex offenders. Officers in this program have expertise in the development and execution of search warrants, recovery of stolen property, interview and interrogation techniques, sexual assault investigative techniques, property and person crimes follow up investigation, and juvenile crime and diversion. An Officer in this Program is assigned as the School Resource Officer who works collaboratively with school staff, administration, and students in both the Los Gatos-Saratoga Union High School District and Los Gatos Union School District, to promote campus and community safety amongst youth. Since FY 2009/10, funding for the School Resource Officer (SRO) position has been offset by an agreement with the high school and elementary school districts with each sharing costs for nearly one-half the Officer’s salary and benefits. Contract renewal is anticipated for FY 2017/18. In addition, an Officer from this Program is assigned to the Santa Clara County Specialized Enforcement Team (SCCSET Task Force), specializing in the investigation of major narcotics trafficking, fugitive apprehension, and providing support to local law enforcement agencies in major criminal investigations. D – 158  POLICE DEPARTMENT  Investigations The Property and Evidence Division is comprised of 1.0 FTE Community Service Officer overseen by the Investigations Program and managed by the Detective Sergeant. The Property and Evidence Unit maintains storage of evidence and property, facilitates property dispositions, conducts chain of custody evidence releases, coordinates digital media discovery requests, and manages evidence destruction and disposal. This Division has seen an increase in the intake of property, evidence, and discovery records requests over the past year; intensive staff research and documentation accompany these requests. Additional temporary staffing for a Community Services Officer (CSO) as a one-time support to assist the evidence and property division has been requested for FY 2017/18. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits 525$ 680$ 705$ 500$ 500$ 500$ Intergovernmental Revenue - - 70,000 50,000 50,000 - Service Charges 1,345 2,206 112,557 112,584 112,584 119,191 Fines & Forfeitures - - - - - - Other Revenues 5,019 180 1,670 1,000 1,000 1,000 TOTAL REVENUES 6,889$ 3,066$ 184,932$ 164,084$ 164,084$ 120,691$ EXPENDITURES Salaries and Benefits 1,499,405$ 1,703,673$ 1,808,796$ 1,797,590$ 1,930,687$ 2,211,130$ Operating Expenditures 118,783 121,443 116,180 143,156 145,114 148,100 Fixed Assets - - - - - - Internal Service Charges 266,002 282,154 284,020 269,457 269,457 313,715 TOTAL EXPENDITURES 1,884,190$ 2,107,270$ 2,208,996$ 2,210,203$ 2,345,258$ 2,672,945$ SUMMARY OF REVENUES AND EXPENDITURES D – 159  POLICE DEPARTMENT  Investigations FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Specialized Investigations Training The Investigations Program will continue to explore new investigative trends, equipment, techniques, and training opportunities which may enhance the knowledge and investigative experience for personnel, and contribute to the successful solving and prosecution of crimes. During FY 2017/18, specialized training will focus on digital technology based investigations techniques and legal updates, in addition to personnel attending Institute of Criminal Investigations courses, as mandated by Peace Officer Standards and Training (POST). Task Force Collaboration The Investigations Program will continue to collaborate in major joint- investigations with other agencies and the Santa Clara County Specialized Enforcement Team and Regional Auto Theft Task Force. During FY 2017/18, the Investigations Program will utilize the resources available at the task forces to provide assistance and gain exposure to major crime investigations and specialized enforcement. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Pharmaceutical DEA Take Bake Event In Partnership with the Drug Enforcement Administration (DEA) and Community Against Substance Abuse (CASA) the Police Department participated in two National Prescription Drug Take-Back events which allowed the community to turn in unused or old prescription medications for safe environmental disposal. During FY 2016/17, a total of 323 members of the community took advantage of the safe disposal event, and over 1,200 pounds of prescription drugs were turned over to the DEA for disposal. D – 160  POLICE DEPARTMENT  Investigations FY 2017/18 KEY PROJECTS KEY PROGRAM SERVICES • Investigates and solves crimes. • Directs and coordinates the prosecution of offenders. • Provides services to victims. • Provides diversion opportunities and counseling to local youth. • Assists in management of property and evidence. • Monitors and registers narcotics, sex, and arson offenders. • Provides administrative, strategic, and tactical crime analysis. • Oversees School Resource Officer program and involvement in the schools. Core Goals Key Projects Public Safety Ensure public safety through proactive community policing, effective emergency response, and community-wide emergency preparedness Digital Media Safety Education The School Resource Officer and Detectives in the Investigations Program continue to provide structured educational classes and forums at the local schools on digital media safety and anti-cyberbullying. The educational outreach program continues to expand to private schools, businesses, and religious organizations in the community who are working collaboratively with the Police Department to ensure the safety of their students, faculty, and customers. Directed Investigative Operational Plans During FY 2017/18, the Investigations Program will be continuing to utilize crime analytic databases and crime patterns to focus on the integration of crime prevention and investigative enforcement actions on patterned crime trends. Specialized enforcement techniques will be utilized in targeted crime areas in coordination with the Patrol Program as a measure to suppress crime and increase community awareness and safety. D – 161  POLICE DEPARTMENT  Investigations Full Time Equivalents (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Police Captain 1.00 1.00 - - - Police Lieutenant - - 0.50 0.50 0.50 Poice Sergeant 1.00 1.00 1.00 1.00 1.00 Police Corporal (Frozen)1.00 1.00 - - - Police Officer * 4.00 5.00 6.00 6.00 6.00 Community Services Officer 2.00 1.00 - 1.00 1.00 Police Records Specialist - 1.00 2.00 1.00 1.00 Total Investigation FTEs 9.00 10.00 9.50 9.50 9.50 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Police Officer - 49 823 - - CSO-Investigation Evidence - - - - 1,040 Total Annual Hours - 49 823 - 1,040 * INVESTIGATIONS PROGRAM STAFFING Includes one officer in the Santa Clara County Enforcement Team (SCCET) and the reassignment of the School Resource Officer to this unit. D – 162  POLICE DEPARTMENT  Investigations Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Number of Part I and Part II crimes cleared:558 559 674 615 601 2. a.Percentage of youthful offenders diverted from the criminal justice system:31%43%28%20%31% 3. a.Percentage of criminal complaints issued by District Attorney with charges filed:66%69%76%76%72% b. Percentage of criminal complaints denied by District Attorney:29%29%23%24%26% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.1630 1430 1888 1906 1713 2. 490 352 683 729 706 3. 286 314 292 365 314 Annual number of public school visits by the School Resource Officer: To divert local youth from the criminal justice system. To provide thorough and objective analysis of crime to achieve resolution of criminal matters. Number of criminal complaints requested for review at District Attorney's Office: Number of cases investigated: To obtain criminal complaints against violators. D – 163 Police Department PARKING MANAGEMENT PROGRAM 4304 PROGRAM PURPOSE The Parking Management Program coordinates, manages and enforces vehicular parking upon the roadways, highways and municipal parking lots of the Town. The Division is supervised by a Sergeant and staffed by two Parking Control Officers who utilize the California Vehicle Code and Town Municipal Code to enforce unlawful, time restricted and permit-only vehicular parking throughout the Town. This enforcement increases pedestrian, bicyclist and vehicular safety, creates efficient traffic flow, and renews parking space availability on highways, residential streets and municipal parking lots. The Parking Management Program responds to community requests related to violations involving: residential/employee zone permit-only parking, private property parking, time-restricted parking, disabled parking, and loading zones. The Division complements police services by assisting with vehicle tows, traffic control, and deployment of speed awareness trailers (radar trailers). Abandoned vehicles in Town are also managed by the Parking Management Program utilizing the Santa Clara County Abandoned Vehicle Abatement Service Authority (AVASA) program. This program maintains management and oversight of the issuance of residential and business preferential parking permits. The Parking Management Program progressively collaborates with the community, Parks and Public Works Department, Transportation and Parking Commission, and Safe Routes to School organization to address community needs as they relate to permit parking, special event parking management, and traffic around schools. BUDGET OVERVIEW The automated parking enforcement technology program continues to improve the efficiency, accuracy, and safety of the parking violation citation process by allowing the Parking D – 164  POLICE DEPARTMENT  Parking Management Enforcement Officer to utilize computerized citation equipment to accurately document parking violations and issue parking violation citations. Parking Management Program staffing consists of 0.30 FTE Police Sergeant and 2.0 FTE Parking Control Officers. Temporary staffing hours have been allocated for increased parking enforcement, funded from one-time funding. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits 39,843$ 40,328$ 41,129$ 38,500$ 39,000$ 40,000$ Intergovernmental Revenue - - - - - - Service Charges - - - - - - Fines & Forfeitures 672,808 756,555 755,241 557,500 615,500 607,500 Other Revenues 25,461 28,566 28,566 28,566 28,566 28,566 TOTAL REVENUES 738,112$ 825,449$ 824,936$ 624,566$ 683,066$ 676,066$ EXPENDITURES Salaries and Benefits 308,959$ 235,332$ 227,280$ 295,130$ 258,839$ 291,579$ Operating Expenditures 291,931 332,605 338,321 284,669 284,349 336,169 Fixed Assets 45,943 - - - - - Internal Service Charges 85,582 81,929 100,249 81,565 81,565 98,833 TOTAL EXPENDITURES 732,415$ 649,866$ 665,850$ 661,364$ 624,753$ 726,581$ SUMMARY OF REVENUES AND EXPENDITURES D – 165  POLICE DEPARTMENT  Parking Management FY 2017/18 KEY PROJECTS KEY PROGRAM SERVICES • Proactively manages the Town’s available parking inventory. • Monitors and enforces parking and abandoned vehicle laws. • Communicates with and educates residents, businesses, and visitors on parking issues and regulations. • Coordinates the Holiday Parking program and special event parking control. • Manages and oversees the parking citation appeal process. • Coordinates efforts with the Parking Commission and Parks and Public Works. Core Goals Key Projects Community Character Preserve and enhance the appearance, character and environmental quality of the community. Electronic Vehicle Parking Ordinance During FY 2017/18, the Records Unit will explore upcoming mandatory data collection and reporting requirements specific to AB 953 and the state-wide transition from Uniform Crime Reporting to National Incident Based Reporting Systems. Staff will continue to identify software programs, CAD/RMS system capabilities, and third-party vendors which may assist in the collection of required data (beginning in 2021) to alleviate the associated extensive workload. Also, additional policies and procedures will be explored to ensure compliance with retention policies and procedures. Good Governance Ensure responsive, accountable, and collaborative government Parking Control Technology System Upgrade During FY 2017/18, the Parking Management Program will explore additional technology equipment options and upgrades which will enhance the ability to accurately monitor and enforce timed parking zones. In anticipation of equipment replacement costs, this project will be evaluated and coordinated with current software systems and parking management practices to improve efficiency and accountability. D – 166  POLICE DEPARTMENT  Parking Management Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Police Sergeant 0.30 0.30 0.30 0.30 0.30 Community Services Officer 0.40 - - - - Police Record Specialist - 0.40 - - - Parking Control Officer 2.00 2.00 2.00 2.00 2.00 Total Parking Mgmt. FTEs 2.70 2.70 2.30 2.30 2.30 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Parking Control Officer - - 357 357 357 Total Annual Hours - - 357 357 357 PARKING MANAGEMENT FUND STAFFING D – 167  POLICE DEPARTMENT  Parking Management Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of parking citations paid with initial notices: 90%90%88%89%90% 2.Enforce timed limit, residential and employee zoned permit parking. a.During enforcement hours respond to community reported parking problems within 20 minutes:Data Not Available Data Not Available Yes Yes Yes Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.14,411 14,657 15,667 15,880 14,534 Previously Reported 2.1,298 1,386 1,371 1,351 1,351 3.393 372 449 409 406 4.28 24 23 25 25 5.$39,843 $40,328 $41,129 $39,000 $40,000 6.$672,808 $629,468 $755,240 $700,000 $607,500 Revenue received on parking permits issued: Revenue received on parking citations issued: Number of residential and employee parking permits issued: Number of parking citations issued: Number of vehicles marked for 72-hour parking: Number of abandoned vehicles removed from public streets: Promote pedestrian and vehicular safety while providing improved traffic flow and increased parking availability on residential streets. D – 168 D – 169 Police Department PASS-THROUGH ACCOUNTS PROGRAM 4999 PROGRAM PURPOSE Revenues and expenditures which are collected for and remitted to external agencies are considered “pass-through” appropriations in the Town’s budget. Accounting for these activities in a separate accounting structure allows the true cost of operations to remain intact within a program, eliminating unrelated funding fluctuations from year to year. BUDGET OVERVIEW There is no budgetary impact to this program as revenues equal expenditures. The revenues and expenditures reflect a reasonable estimate based on prior year trends or Department information; however, actuals may differ substantially from original budgeted numbers at fiscal year-end. For three fiscal years the Town of Los Gatos acted as the fiduciary agent for the California Police Chiefs Association regarding funding from the State of California. This funding helped offset costs to local law enforcement as a result of parole realignment (AB109). As fiduciary agent, the Town received Countywide AB109 monies from the State. Upon receipt of the State funds, the Town wires the full amount to Santa Clara County for distribution to local jurisdictions. As of FY 2016/17, the State of California no longer provided AB109 funding and, as such, the Los Gatos- Monte Sereno Police Department no longer serves as the fiduciary agent for AB109 realignment funds. FY 2017/18 revenues and expenditures only reflect a pass-through of Department of Justice Fingerprinting realignment funds. As this program includes no staff activity, it does not have Key Projects or Performance Measures. D – 170  POLICE DEPARTMENT  Pass-Through Accounts 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Intergovernmental Revenue - - - - - - Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues 772,624 1,118,802 560,300 9,000 24,225 9,000 TOTAL REVENUES 772,624$ 1,118,802$ 560,300$ 9,000$ 24,225$ 9,000$ EXPENDITURES Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 772,325 1,123,359 556,467 9,000 9,000 9,000 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 772,325$ 1,123,359$ 556,467$ 9,000$ 9,000$ 9,000$ SUMMARY OF REVENUES AND EXPENDITURES D – 171 Police Department OPERATING GRANTS 4803-4812 PROGRAM PURPOSE This fund accounts for revenues and expenditures attributed to grants for operating budget projects that fall outside of the Capital Improvement Program (CIP) Grant Projects. The Town’s CIP project guidelines state a project must have a value of $25,000 or more with a minimum useful life of five years at a fixed location. Grant revenues and expenditures are structured to net out to zero. If overages or non- reimbursable expenses occur for grant activities, the additional charges are absorbed within the Department’s operating budget. Some grants require a Town matching or other contribution as part of the award, which is reflected either as funding transferred into the grant, or expenditures reallocated to the appropriate program budget. BUDGET OVERVIEW The Police Department was awarded a grant through California Office of Emergency Services (Cal OES) from July 1, 2016 through June 30, 2017. Cal OES grant funds were distributed to the Santa Clara County and designed for the 2016 Emergency Management Performance Grant. EMPG funding allowed the purchase of 11 laptop computers for the Los Gatos-Monte Sereno Police Emergency Police Operations Center (EOC). The Police Department was awarded a grant through Bulletproof Vest Partnership (BVP) from August 11, 2015 through August 31, 2017. BVP grant funds are used by local law enforcement agencies through the U.S. Department of Justice initiative designed to provide critical resources to state and local law enforcement. The Grant Program reimburses local jurisdictions up to 50% of the cost of specific body armor vests purchased for law enforcement officers. D – 172  POLICE DEPARTMENT  Operating Grants The Police Department was awarded a grant through the Board of State and Community Corrections (BSCC) to increase positive outcomes between municipal law enforcement and high risk populations. The State Controller’s Office is authorized to disburse these funds according to a schedule provided by the Department of Finance. Provision 1 of Item 5227-102-0001 of the Budget Act of 2016 requires a minimum of 60 percent of the total funding must go to Police Departments employing 100 or fewer Officers. BVP GRANT HOMELAND SECURITY GRANT 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Intergovernmental Revenue - - - - 4,076 4,076 Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ -$ -$ -$ 4,076$ 4,076$ EXPENDITURES Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures - - - - 4,076 4,076 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES -$ -$ -$ -$ 4,076$ 4,076$ SUMMARY OF REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Intergovernmental Revenue 17,899 - 71,919 - 10,491 - Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES 17,899$ -$ 71,919$ -$ 10,491$ -$ EXPENDITURES Salaries and Benefits -$ -$ 31,037$ -$ -$ -$ Operating Expenditures 15,736 - 5,250 - 10,491 - Fixed Assets - - 35,633 - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 15,736$ -$ 71,920$ -$ 10,491$ -$ SUMMARY OF REVENUES AND EXPENDITURES D – 173  POLICE DEPARTMENT  Operating Grants BSCC COMMUNITY GRANT OTS GRANT 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Intergovernmental Revenue - - - - - - Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - 49,706 TOTAL REVENUES -$ -$ -$ -$ -$ 49,706$ EXPENDITURES Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures - - - - - 49,706 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES -$ -$ -$ -$ -$ 49,706$ SUMMARY OF REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Intergovernmental Revenue - - 2,075 5,384 603 - Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ -$ 2,075$ 5,384$ 603$ -$ EXPENDITURES Salaries and Benefits -$ -$ -$ 4,534$ -$ -$ Operating Expenditures - - - 850 - - Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES -$ -$ -$ 5,384$ -$ -$ SUMMARY OF REVENUES AND EXPENDITURES D – 174  POLICE DEPARTMENT  Operating Grants ABC GRANT DOMESTIC VIOLENCE RSP GRANT 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Intergovernmental Revenue - 5,061 3,245 - - - Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ 5,061$ 3,245$ -$ -$ -$ EXPENDITURES Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures - 30 - - - - Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES -$ 30$ -$ -$ -$ -$ SUMMARY OF REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Licenses & Permits -$ -$ -$ -$ -$ -$ Intergovernmental Revenue - - - - - - Service Charges 62,499 5,246 - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES 62,499$ 5,246$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits 62,499$ -$ -$ -$ -$ -$ Operating Expenditures - - - - - - Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 62,499$ -$ -$ -$ -$ -$ SUMMARY OF REVENUES AND EXPENDITURES D –175 Parks & Public Works Department DEPARTMENT PURPOSE The Parks and Public Works Department (PPW) constructs and maintains the Town’s public parks, facilities, roadways, rights-of-way, and other infrastructure. Six organizational units (the Administration, Park Services, Engineering Development Services, Engineering Program Services, Streets and Signals, and Environmental Services Program) work in coordination to achieve the Department’s overarching goal of ensuring the Town’s facilities are safe, functional, and attractive. Additional departmental services that support these objectives include the Facilities Maintenance, Vehicle Maintenance, and Non-Point Source Program. PPW is also responsible for several Landscape and Lighting Districts. In addition to providing ongoing maintenance activities, the Parks and Public Works Department staff provides information and outreach to Town residents, businesses, and the public concerning the Department’s programs, activities, and projects. BUDGET OVERVIEW In a year where the Parks and Public Works Department faces an increasing workload in the area of traffic and capital improvement projects, the Department will work within a personnel budget that is approximately $350,000 higher than the FY 2016/17 personnel budget, which accounts for a new position discussed below and increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. The operating expenditures have been augmented by an increase of approximately $100,000 in non- discretionary base additions, and a one-time allocation of $125,000 for the eucalyptus trees on Hilow Road ($25,000) and additional tree maintenance Town-wide ($100,000) In FY 2017/18, the Department will annualize funding ($217,000) for a Transportation & Mobility Manager to establish project feasibility and to best position the Town to compete for Measure B opportunities. Santa Clara County voters approved Measure B, a 30-year, half-cent countywide sales tax to enhance transit, highways, expressways and active transportation (bicycles, pedestrians and complete streets). Staff recommends funding for three years through the General Fund at which point the position could potentially transition to funding through awarded projects. The position will also advance existing Town priorities such as developing a D –176  PARKS & PUBLIC WORKS DEPARTMENT  project to utilize existing grant funding to upgrade the Town’s signal controller and communication system. Additionally, the Parks and Public Works Department has deleted a vacant Parks & Maintenance Worker, 1,000 temporary staff hours for a Park Services Officer, and 930 temporary staff hours for a Maintenance Assistant. These decreases will fund the restoration of a Streets and Parks Operations Manager. This position is necessary to provide guidance and supervision of the Streets and Parks divisions on a day to day basis. Through the addition of the Supervisor, the Department will be able to program work more efficiently, bridging any impacts from the position and temporary hour reductions. An additional $43,000 in one-time monies, for temporary staff hours, has been allocated to fulfill storm water debris and cleaning requirements associated with the National Pollution Discharge Elimination System (NPDES) permit. Staff from the Parks and Public Works Department will continue to work with outside agency staff, including those from the West Valley Clean Water Program and the Santa Clara Valley Urban Runoff Pollution Prevention Program, to assess the permit impacts and pending increased regulations. The Municipal Regional Stormwater Permit (MRP) 2.0 permit mandates more requirements in several key areas, including development projects. Greater inspection mandates will require additional staff time both for the inspection and the associated reporting. Additionally, the permit will require staff to implement new trash load reduction measures to meet increasingly higher standards, reaching 100% reduction by 2022. The Regional Water Quality Control Board has emphasized the need to begin early implementation of the requirements of the permit and many jurisdictions have already done so, the Town included. The Town achieved trash reduction above 60% in 2016 and will meet the requirement of 70% in 2017. The additional storm water funding added to this year’s budget will help address unfunded mandates for Los Gatos, allowing for incremental steps towards compliance with the increased permit requirements. Even with these short term successes, compliance with 2022 targets will be difficult. The Department will continue to monitor and minimize personnel overtime costs by limiting the period of the “Stand-by Program” hours to the heavy winter months (November to March). This program makes staff available on-call to address unforeseen emergencies. This approach has been successful because it has both reduced the Department’s personnel costs and had minimal impact on service delivery. Calls for service outside of the service timeframe go to management staff for resolution or wait until the next business day. D –177  PARKS & PUBLIC WORKS DEPARTMENT  During this fiscal year, the Department will advance or complete many major Capital Improvement Projects. Some projects include: Almond Grove Street Rehabilitation project Phase II, the Annual Street Rehabilitation project, and the Stonybrook and Kennedy Road Sidewalk improvement project. Additionally, staff will continue to replace Town streetlights with LED fixtures, which will result in energy savings, decreasing utility costs to the General Fund immediately. The Department will continue work on several other areas, including the implementation of various measures to mitigate summer cut-through traffic and projects from the recently approved Bicycle and Pedestrian and Traffic Around Schools plans. In addition to these, staff will continue to support the Community Choice Energy (CCE) program. D –178  PARKS & PUBLIC WORKS DEPARTMENT  ACCOMPLISHMENTS Core Goals Accomplishments Community Character Preserve and enhance the appearance character and environment quality of the community • Enhanced the downtown trash service delivery model to resolve ongoing issues of overflowing trash cans by increasing our 15 recycling cans to 31 in the downtown area. • Completed Phase 2 of the Outside the Box Utility Box Program • Partnered to establish Safe Routes to School (SR2S) 501c(3). • Participated in School District Forum for SR2S. • Highway 17 Circle Ramp Cleanups. Civic Enrichment Foster opportunities for citizen involvement, and cultural recreational and individual enrichment • Supported Town events including 4th of July, Screen on the Green, Holiday Tree Lighting, Children’s Holiday Parade, and Spring into Green • Processed approximately 600 park reservations over the last fiscal year. • Completed the Study of Traffic Around Schools and the Bicycle and Pedestrian Master Plan, both with significant public outreach and involvement. Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure • Completed reconstruction of the first two streets in the Almond Grove. • Continued measures to deter cut-through traffic during the summer months • Completed Bicycle and Pedestrian Master Plan • Provided for Town projects within Measure B Good Governance Ensure responsive, accountable and collaborate government • Informed the public of drought conservation efforts, and monitored, and managed Town water usage. • Joined the region-wide Community Choice Energy effort to provide affordable green energy options to the community. D –179  PARKS & PUBLIC WORKS DEPARTMENT  The above totals reflect General Fund programs. Additional Parks and Public Works programs are reflected in separate Special Revenue and Internal Service Funds following the General Fund portion of this section. Staffing assignments to the Capital Program and Redevelopment Agency are reflected outside of the department’s budget. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes 25,782$ 30,213$ 9,878$ 7,000$ 7,000$ 7,000$ Licenses and Permits 775,666 803,022 978,332 762,113 755,513 753,199 Intergovernmental 59,087 49,706 44,561 38,200 30,000 38,200 Service Charges 484,014 722,126 385,178 547,710 450,956 497,021 Fines & Forfeitures 1,095 - 290 - - - Other Revenues 272,792 168,448 160,863 178,753 206,154 171,753 TOTAL REVENUES 1,618,436$ 1,773,515$ 1,579,102$ 1,533,776$ 1,449,623$ 1,467,173$ Transfers In Transfer from GFAR - - - 97,808 97,808 315,616 Total Transfers In - - - 97,808 97,808 315,616 TOTAL REVENUES & TRANSFERS IN 1,618,436$ 1,773,515$ 1,579,102$ 1,631,584$ 1,547,431$ 1,782,789$ EXPENDITURES Salaries and Benefits 3,398,550$ 3,655,552$ 3,942,418$ 4,191,548$ 4,171,982$ 4,616,149$ Operating Expenditures 1,186,805 1,180,161 1,431,484 1,343,270 1,547,682 1,548,288 Fixed Assets 184,242 125,195 86,073 165,000 155,000 140,000 Internal Service Charges 811,172 729,448 766,220 752,607 733,076 812,888 TOTAL EXPENDITURES 5,580,769$ 5,690,356$ 6,226,195$ 6,452,425$ 6,607,740$ 7,117,325$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Adopted PROGRAM Administration 264,694$ 307,031$ 348,234$ 313,250$ 353,588$ 551,395$ Engineering Prog Srvcs 739,658 902,915 1,002,319 1,031,612 1,141,480 1,058,501 Engineering Dev Srvcs 638,721 640,975 670,247 753,496 673,234 808,134 Park Services 1,561,076 1,496,032 1,677,669 1,739,562 1,796,825 1,832,817 Environmental Services 171,123 280,035 378,396 428,581 351,286 391,421 Streets Signals & Sidewalks 2,016,963 1,920,447 2,015,412 1,995,924 2,086,732 2,310,057 Property Damage 10,442 17,726 63,203 25,000 49,595 25,000 Pass Through 178,092 125,195 70,715 165,000 155,000 140,000 TOTAL EXPENDITURES 5,580,769$ 5,690,356$ 6,226,195$ 6,452,425$ 6,607,740$ 7,117,325$ DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES D –180  PARKS & PUBLIC WORKS DEPARTMENT  2013/14 2014/15 2015/16 2016/17 2017/18 General Fund Funded Funded Funded Funded Proposed Parks & Public Works Director 1.00 1.00 1.00 1.00 1.00 Asst PPW Dir/Town Engineer 1.00 - - - - Town Engineer - 1.00 1.00 1.00 1.00 Superintendent 0.80 0.80 0.80 0.80 0.80 Facilities & Environmental Services Mgr 0.50 0.50 0.50 0.50 - Park & Public Works Operation Mgr - - - - 1.50 Transporation & Mobility Mgr - - - - 1.00 Senior Civil Enginneer - - 1.00 1.00 1.00 Administrative Analyst 0.75 0.75 0.75 0.75 0.75 Executive Assistant 1.00 1.00 2.00 2.00 1.00 Administrative Specialist - - - - - Administrative Assistant 1.80 1.80 1.80 1.80 1.80 Office Assistant - - 0.30 0.30 0.30 Environmental Service Coordinator 0.50 1.00 - - - Environmental Programs Specialist - - - - 1.00 Associate Engineer 3.00 2.40 2.00 2.00 2.00 Assistant Engineer 1.00 1.60 1.00 1.00 1.00 Construction Project Mgr - - 1.00 1.00 1.00 Engineering Technician 1.00 1.00 1.00 1.00 1.00 Sr Engineering Inspector 1.00 1.00 1.00 1.00 1.00 Engineering Inspector 0.50 0.50 0.50 0.50 0.50 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 2.00 2.00 2.00 2.00 2.00 Sweeper Operator 0.75 0.75 - - - Parks & Maintenance Worker 7.00 7.00 7.75 7.75 6.75 Total General Fund FTEs 26.60 27.10 28.40 28.40 29.40 Non-General Fund FTEs (in Parks & Public Works Department programs unless otherwise noted) Non-Point Source Sweeper Operator 0.25 0.25 - - - Parks & Maint Worker - - 0.25 0.25 0.25 Engineering Inspector 0.50 0.50 0.50 0.50 0.50 Administrative Analyst 0.25 0.25 0.25 0.25 0.25 Total Non-Point Source FTEs 1.00 1.00 1.00 1.00 1.00 Vehicle Maintenance Superintendent 0.20 0.20 0.20 0.20 0.20 Administrative Assistant 0.20 0.20 0.20 0.20 0.20 Office Assistant - - 0.20 0.20 0.20 Equipment Mechanic 1.00 1.00 1.00 1.00 1.00 Total Vehicle Maint. FTEs 1.40 1.40 1.60 1.60 1.60 DEPARTMENT STAFFING Full Time Equivalent (FTE) D –181  PARKS & PUBLIC WORKS DEPARTMENT  2013/14 2014/15 2015/16 2016/17 2017/18 Facilities Maintenance Funded Funded Funded Funded Proposed Facilities & Environmental Services Mgr 0.50 0.50 0.50 0.50 - Park & Public Works Operation Mgr - - - - 0.50 Lead Parks & Maint. Worker 1.00 1.00 1.00 1.00 1.00 Parks & Maintenance Worker 1.00 1.00 1.00 1.00 1.00 Total Facilities Maint. FTEs 2.50 2.50 2.50 2.50 2.50 Total PPW Department FTE's 31.50 32.00 33.50 33.50 34.50 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Office Assistant Temp/Hrly 1,000 1,455 - - - Park Service Officer 1,000 1,000 1,000 1,000 - Maintenance Worker - - 1,975 976 976 Maintenance Assistant 6,791 8,299 6,591 6,591 5,661 Total Annual Hours 8,791 10,754 9,566 8,567 6,637 Full Time Equivalent (FTE) DEPARTMENT STAFFING D –182 D –183 Parks & Public Works Department PARKS & PUBLIC WORKS ADMINISTRATION P ROGRAM 5101 PROGRAM PURPOSE The Administration Program supports the delivery of services throughout the Department. Its primary responsibilities include managing and coordinating the efforts of the Department’s programs; organizing meetings with citizens, contractors, and other agencies; preparing and developing budget documents; administering the traffic calming program; processing and managing grants; and preparing reports to the Town Council, Commissions, and Town Manager. BUDGET OVERVIEW The FY 2017/18 budget includes no major adjustments. Staff will continue to manage the complex federal and state grant fund documentation and reimbursement processes with an emphasis on pursuing new grant opportunities. Staff from this program also supports the administrative management and oversight of the Municipal Regional Storm Water Permit (MRP) along with assistance from Community Development Department staff. A portion of the Administrative Analyst’s position is funded through the Non-Point Source fund to offset personnel costs to this program’s budget. Program staff will continue to manage the online parks reservation system. The system allows for more advanced program applications, such as report and data analysis tools, and gives the customers an enhanced user interface when making online reservations. Demand for reserved space at Los Gatos parks remains high. D –184  PARKS & PUBLIC WORKS DEPARTMENT  Administration FY 2017/18 KEY PROJECTS Core Goals Key Projects Community Character Preserve and enhance the appearance character and environment quality of the community Park Reservation System Management Staff continues to manage the online parks reservation system for resident and non-resident use of Town park facilities. Staff forecasts that 90% of the 600 expected reservations in the coming year will be made online via the parks reservation system. Customer Service Efficiency The Administration Program staff will focus on evaluating processes, procedures and systems to obtain input and feedback from customers to continuously improve the delivery of service to both internal and external customers. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Licenses and Permits - - - - - - Intergovernmental - - - - - - Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues 1,322 1,931 594 1,200 - 1,200 TOTAL REVENUES 1,322$ 1,931$ 594$ 1,200$ -$ 1,200$ Transfers In Transfer from GFAR -$ -$ -$ -$ -$ 217,808$ Total Transfers In -$ -$ -$ -$ -$ 217,808$ TOTAL REVENUES & TRANSFERS IN 1,322$ 1,931$ 594$ 1,200$ -$ 219,008$ EXPENDITURES Salaries and Benefits 206,365$ 244,939$ 264,683$ 238,407$ 263,470$ 468,717$ Operating Expenditures 15,985 21,624 42,292 32,044 47,319 30,194 Fixed Assets - - - - - - Internal Service Charges 42,344 40,468 41,259 42,799 42,799 52,484 TOTAL EXPENDITURES 264,694$ 307,031$ 348,234$ 313,250$ 353,588$ 551,395$ SUMMARY OF REVENUES AND EXPENDITURES D –185  PARKS & PUBLIC WORKS DEPARTMENT  Administration KEY PROGRAM SERVICES • Provides walk-in and telephone customer service for departmental programs and services. • Provides internal clerical and program support for departmental services. • Oversees regulatory and project operations. • Manages the Department’s budget. • Pursues grant funding to enable the Town to implement key projects. • Prepares and tracks construction and maintenance contracts. • Facilitates neighborhood meetings to discuss concerns related to traffic calming, street improvements, and other parks and public works-related issues. • Provides staff support to the Parks Commission, Transportation and Parking Commission, Bicycle and Pedestrian Advisory Commission, and Parks Commission; and assists in coordination of Commission-sponsored projects. • Provides support for Town-wide Committees, such as Town-wide Health and Safety Committee, Beautification Committee, Town Outreach Team, Safe Routes to School, and Los Gatos Town Employees Foundation. • Administers the processing of permits and Town park reservations. • Oversees Department employee training and safety programs. D –186  PARKS & PUBLIC WORKS DEPARTMENT  Administration 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Parks & Public Works Director 0.40 0.40 0.40 0.40 0.40 Transporation & Mobility Manager - - - - 1.00 Administrative Analyst 0.30 0.30 0.30 0.30 0.30 Executive Assistant 0.25 0.25 0.25 0.25 0.25 Administrative Assistant 0.50 0.50 0.50 0.50 0.50 Office Assistant - - 0.30 0.30 0.30 TOTAL PROGRAM FTE's 1.45 1.45 1.75 1.75 2.75 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Office Assistant 650 1,105 - - - TOTAL ANNUAL HOURS 650 1,105 - - - Full Time Equivalent (FTE) PPW ADMINISTRATION PROGRAM STAFFING D –187 Parks & Public Works Department ENGINEERING PROGRAM SERVICES PROGRAM 5201 PROGRAM PURPOSE Engineering Program Services provides Town engineering services not related to private development. This includes the design, construction management, and administration of the Capital Improvement Program (CIP) to improve the Town’s public infrastructure (such as streets, sidewalks, storm drains, parks, retaining walls, and traffic signals) with an emphasis on delivering capital projects within their planned schedules and approved budgets. Engineering operations effectively manage planning, design and construction of engineering related Capital Improvement Projects, Townwide and neighborhood traffic issues such as the Town’s traffic calming policy and cut-through traffic management, engineering inspection services to ensure the Town’s project contractors are meeting contract standards and requirements, development of GIS data to manage Town infrastructure, right-of-way and property boundary issues, and the administration of the asset management and workload tracking software. BUDGET OVERVIEW Engineering Program Services provides non-fee-related engineering services and activities. Budgeted staffing supports engineering design, review, consultant management and construction oversight of the Town’s CIP projects and inspection activities to ensure the completion of construction projects as designed. The Engineering Program Services staff oversees grant fund applications and reimbursements, public information meetings and notifications, and traffic calming requests. Additionally, this program houses traffic engineering management for traffic control, signalization, daily operations, and inter-agency coordination of shared intersections and roadways. D –188  PARKS & PUBLIC WORKS DEPARTMENT  Engineering Program Services For FY 2017/18, staff will manage the design and construction of several key projects including: the Almond Grove Street Reconstruction project Phase II, the Stonybrook and Kennedy Road Sidewalk improvement project, the Annual Street Rehabilitation project, and the Annual Curb, Gutter, Sidewalk and ADA ramp project. Staff will work to recommend and deliver projects from the Town’s recently approved Bicycle and Pedestrian Master Plan and Traffic Around Schools Plan. Traffic Engineering will continue to work on both short and long-term solutions regarding Town Cut-Through traffic and work on the upgrading of Town streetlights to energy saving LED lighting. In the FY 2016/17 budget, funding was pro-rated for the addition of a Transportation and Mobility Manager position in this program to establish project feasibility and to best position the Town to compete for Measure B opportunities. Santa Clara County voters approved Measure B, a 30-year, half-cent Countywide sales tax to enhance transit, highways, expressways and active transportation (bicycles, pedestrians, and complete streets). Staff recommends funding for three years through the General Fund at which point the position could potentially transition to funding through awarded projects. The position will also advance existing Town priorities such as developing a project to utilize existing grant funding to upgrade the Town’s signal controller and communication system. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. D –189  PARKS & PUBLIC WORKS DEPARTMENT  Engineering Program Services 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Licenses and Permits - - - - - - Intergovernmental - - - - - - Service Charges - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ Transfers In Transfer from GFAR - - - 97,808 97,808 97,808 Total Transfers In - - - 97,808 97,808 97,808 TOTAL REVENUES & TRANSFERS IN -$ -$ -$ 97,808$ 97,808$ 97,808$ EXPENDITURES Salaries and Benefits 651,780$ 829,927$ 908,143$ 933,245$ 1,044,988$ 964,639$ Operating Expenditures 29,821 17,927 36,456 30,740 28,865 31,144 Fixed Assets - - - - - - Internal Service Charges 58,057 55,061 57,720 67,627 67,627 62,718 TOTAL EXPENDITURES 739,658$ 902,915$ 1,002,319$ 1,031,612$ 1,141,480$ 1,058,501$ SUMMARY OF REVENUES AND EXPENDITURES D –190  PARKS & PUBLIC WORKS DEPARTMENT  Engineering Program Services FY 2017/18 KEY PROJECTS Core Values Key Projects Community Character Preserve and enhance the appearance character and environment quality of the community Almond Grove Street Rehabilitation Project Phase II The program staff will begin to oversee the construction of the first one to three streets (out of eight) to be reconstructed for the Phase II project this summer with completion anticipated by the end of the year. The remaining streets will be constructed in the summer of 2018 and 2019. Staff will continue a high level of outreach to residents in this neighborhood as this project moves forward from design to construction. Crosswalk Lighting Upgrades The program staff will provide technical assistance with the design and construction of the crosswalk lighting project. Staff identified roadways that have moderate to high levels of pedestrian traffic that lack safe crosswalk areas. A total of five crosswalk lighting upgrades will be constructed as part of this project. The areas include: Blossom Hill and Santa Cruz, and Los Gatos Almaden and Cherry Blossom. Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Additional Capital Improvement Program Projects The program staff will continue to work on the design and construction of currently programmed capital projects and the preparation of construction documents for future capital projects. Due to capacity issues and project funding, staff prioritizes projects in the five-year Capital Improvement Program (CIP) for Council consideration. Program staff will pursue grant opportunities where applicable for capital projects. In addition to the aforementioned projects, planned CIP construction projects include: traffic calming; Stonybrook/Kennedy Sidewalk project; the Town’s annual street resurfacing; curb, gutter, and sidewalk; and projects with funding allocated by the Council highlighted in the the Traffic Around Schools study and the Bicycle and Pedestrian Master Plan. D –191  PARKS & PUBLIC WORKS DEPARTMENT  Engineering Program Services KEY PROGRAM SERVICES Capital Improvement Projects • Provides plans, specifications, estimates, right-of-way plans, and property descriptions for Town projects; develops requests for proposals (RFP), manages consultants, and contractors and other various contracts. • Designs and administers projects for the annual Capital Improvement Program, including street resurfacing and curb, gutter, and sidewalk improvement analysis and specific Council-directed projects. Traffic Engineering • Performs traffic engineering analysis. • Manages neighborhood traffic concerns and requests, including the traffic calming program and cut-through traffic. Community Information • Provides assistance to the public regarding engineering services. • Manages websites for public notification and other public noticing methods including mailings, door hangers, and NextDoor postings. D –192  PARKS & PUBLIC WORKS DEPARTMENT  Engineering Program Services 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Asst PPW Dir/Town Engineer 0.80 - - - - Town Engineer - 0.80 0.80 0.80 0.80 Construction Project Mgr - - 0.60 0.60 0.60 Senior Civil Engineer - - 0.20 0.20 0.20 Administrative Analyst 0.15 0.15 0.15 0.15 0.15 Executive Assistant 0.20 0.20 0.20 0.20 0.20 Administrative Assistant 0.50 0.50 0.50 0.50 0.50 Associate Engineer 1.60 1.00 0.80 0.80 0.80 Assistant Engineer 0.20 0.80 0.80 0.80 0.80 Engineering Technician 1.00 1.00 1.00 1.00 1.00 Sr. Engineering Inspector 0.70 0.70 0.70 0.70 0.70 Engineering Inspector 0.15 0.15 0.15 0.15 0.15 TOTAL PROGRAM FTEs 5.30 5.30 5.90 5.90 5.90 Full Time Equivalent (FTE) ENGINEERING PROGRAM SERVICES STAFFING Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of CIP projects completed within budget:*100%100%100%100%100% b.Percentage of CIP projects completed within schedule:* 100%100%100%100%100% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.1 0 1 1 1 2.1 1 1 1 1 3.0 1 0 1 1 4.Data Not Available 91%Data Not Available 80%80% 5.7 8 4 8 6 * This measure has been moved to Performance Objectives and Measures from Activity and Workload Highlights. The Department is changing the methodology related to item b and will report actuals in next budget cycle. ** This measure has been moved to Activity and Workload Highlights from Performance Objectives and Measures. Percentage of residential households approving the final traffic calming proposal developed by Town staff (67% approval required):** Number of CIP projects completed: To effectively manage Capital Projects Number of traffic calming projects closed: Number of traffic calming projects: Number of traffic calming requests received: D –193 Parks & Public Works Department ENGINEERING DEVELOPMENT SERVICES PROGRAM 5202 PROGRAM PURPOSE The Engineering Development Services Program, in coordination with the Community Development Department, provides services to ensure private development project construction is in accordance with Town standards. Engineering functions include reviewing plans and specifications, and providing inspection services for grading, drainage, and issues of encroachment in the public right-of-way. The program is cost recovery such that staff costs and expenditures related to private development oversight are paid by the applicant. BUDGET OVERVIEW There are a couple of major development projects (e.g., pending office developments) that may occur in FY 2017/18, which would augment revenues if completed, and thereby reduce personnel expenditures to the program’s budget. To achieve this, staff tracks labor hours for reimbursement by the developers. In addition, the FY 2017/18 budget reflects an estimated decrease of $55,300 in development related revenues as the Town has received less grading work in the past two years. The Engineering Development Services Program’s public counter hours will continue to operate from 8:00 a.m. to 1:00 p.m. Monday through Friday. Services continue to be provided in the afternoon by phone and appointment. These hours mirror the public counter hours offered by the Finance and Community Development Departments which allow for back office work to be completed. Additionally, Engineering staff members each have assigned counter days and these schedules are made available to the public to facilitate connecting the public with the Engineer assigned to their project. The D –194  PARKS & PUBLIC WORKS DEPARTMENT  Engineering Development Services program has utilized flex-hour work schedules to reduce overtime pay and to manage effectively the community's service demands. FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable and collaborate government Development Projects The Development Team (Community Development, Parks & Public Works, County Fire, and the Police Departments) will continue to work on several key private development projects in Los Gatos. These projects include: the Alberto Way office development, Winchester Boulevard office development, the McCarthy proposal and the potential development of the CVS site on Los Gatos Boulevard. Staff will continue to provide technical support and work collaboratively with residents and private developers through the development process so that these projects are in compliance with Town regulations. There will also be an increased staff role in the monitoring of development projects for their compliance with the new storm water permit. Staff is also working to develop specialized “Project Information Sheets” on engineering aspects of key development proposals to provide additional information on the project to the Council, Commissions, and the public at the early stages of those projects. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Licenses and Permits 252,084 285,862 428,599 219,000 223,700 219,700 Intergovernmental 15,434 - - - - - Service Charges 465,666 662,978 347,059 508,700 408,400 453,400 Fines & Forfeitures - - - - 13,462 - Other Revenues 1,706 3,298 1,249 160 160 18,160 TOTAL REVENUES 734,890$ 952,138$ 776,907$ 727,860$ 645,722$ 691,260$ EXPENDITURES Salaries and Benefits 521,787$ 531,657$ 548,753$ 621,447$ 536,842$ 649,616$ Operating Expenditures 23,647 16,082 11,907 18,550 22,893 42,893 Fixed Assets 6,150 - - - - - Internal Service Charges 87,137 93,236 109,587 113,499 113,499 115,625 TOTAL EXPENDITURES 638,721$ 640,975$ 670,247$ 753,496$ 673,234$ 808,134$ SUMMARY OF REVENUES AND EXPENDITURES D –195  PARKS & PUBLIC WORKS DEPARTMENT  Engineering Development Services KEY PROGRAM SERVICES Development Projects • Reviews development applications for compliance with Town grading and engineering standards, and develops project conditions of approval. • Reviews plans and approves final tract maps and parcel maps as required by state law. • Conducts inspections of work within public right-of-way through the encroachment permit process and on-site for compliance with the Town’s MRP permit as cross program support of the NPDES program. Traffic Engineering • Performs and reviews traffic engineering analysis for proposed development projects and develops project conditions of approval. • Responds to citizen traffic concerns regarding development projects. • Maintains the traffic signal network to ensure efficient operation. Community Information • Provides assistance to the public regarding right-of-way issues. • Develops “Project Information Sheets” to provide summary information on development projects to the public. D –196  PARKS & PUBLIC WORKS DEPARTMENT  Engineering Development Services 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Parks & Public Works Director 0.20 0.20 0.20 0.20 0.20 Asst PPW Dir/Town Engineer 0.20 - - - - Town Engineer - 0.20 0.20 0.20 0.20 Construction Project Mgr - - 0.14 0.14 0.14 Senior Civil Engineer - - 0.80 0.80 0.80 Executive Assistant 0.05 0.05 0.05 0.05 0.05 Administrative Assistant 0.10 0.10 0.10 0.10 0.10 Associate Engineer 1.40 1.40 1.20 1.20 1.20 Assistant Engineer 0.80 0.80 0.20 0.20 0.20 Sr. Engineering Inspector 0.30 0.30 0.30 0.30 0.30 Engineering Inspector 0.35 0.35 0.35 0.35 0.35 TOTAL PROGRAM FTEs 3.40 3.40 3.54 3.54 3.54 Full Time Equivalent (FTE) ENGINEERING DEVELOPMENT SERVICES STAFFING Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of conventional encroachment permits that are processed by Engineering staff within 5 business days: 90%90%90%90%90% b.Percentage of conventional grading/improvement permits that are reviewed by Engineering staff within 10 business days:*90%90%90%90%90% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.218 310 340 325 300 2.24 25 11 5 8 3.231,759$ 261,569$ 399,971$ 200,000$ 200,000$ 4.71,750$ 133,535$ 32,376$ 50,000$ 65,000$ ** New measure in FY 2016/17, historical data provided when available. * Due to multiple variables, the review process can vary. To provide an effective and efficient encroachment and grading/improvement permit approval process: Number of encroachment permits processed: Total grading permit revenue:** Number of grading permits processed: Total encroachment permit revenue:** D –197 Parks & Public Works Department PARK SERVICES PROGRAM 5301 PROGRAM PURPOSE The Park Services Program provides maintenance of the Town’s parks, trails, open spaces, facility grounds, median islands, parking lot landscaping, downtown planters, and the urban forest. In addition, Park Services staff maintains recreational areas for residents and visitors, beautifies the Town’s landscape, and takes care of functional public areas throughout the community. Additional services include administering park use fees and reservations, implementing Town regulations in the Town’s parks and open space areas, managing vegetation and pest control, and ensuring the safety of parks’ playground equipment. BUDGET OVERVIEW The FY 2017/18 budget reflects the restoration of a Streets and Parks Operations Manager. This position is necessary to provide guidance and supervision of the Streets and Parks Divisions on a day to day basis. This position will be funded by the deletion of a vacant Parks and Maintenance Worker, 1,000 temporary staff hours for a Park Services Officer, and 930 temporary staff hours for a Maintenance Assistant. Efficiencies in programming work assignments will overcome the loss of staff hours. While the Town continues to conserve water relative to the original 2013 baseline, recent rate increases necessitate an additional $100,000 for Town water usage. In FY 2017/18, the use of outside vendors for certain parks maintenance services will continue, including turf mowing, tree trimming, median island maintenance, and weed abatement. The use of external vendors allows the Town’s internal resources to focus on higher priority projects and allows for the most effective management of maintenance operations. The Program also includes a revenue D –198  PARKS & PUBLIC WORKS DEPARTMENT  Park Services decrease of $11,300 to reflect a multi-year trend of lower than anticipated parking fee revenue at Oak Meadow Park. Although conservation targets may be relaxed or eliminated, the impacts from the drought continue to drive activities in this program. Vegetation management and the potential for targeted locations of turf reduction are two areas of focus operationally. The Department will continue to enhance irrigations systems in parks and medians islands to reduce the use of potable water. The Park Services Program is continuing the cost-saving strategy of limiting the use of program staff overtime. This decrease in overtime involves the reduction of the after-hours “Stand-by Program.” Stand-by will only be available during the months of November through March, instead of year-round. Park Services Program staff continues to combine resources with Streets and Signals Program staff to complete several large in-house maintenance projects. Because the Maintenance Superintendent continues to oversee the Park Services Program staff, combined projects are more efficient to manage. Some examples of combined large-scale maintenance projects include brush removal, median maintenance, paving, and graffiti abatement that were previously unachievable by either program independently. Additionally, staff continues to be involved with the implementation of the Long Term Trash Plan, which is a requirement of the storm water permit. D –199  PARKS & PUBLIC WORKS DEPARTMENT  Park Services FY 2017/18 KEY PROJECTS Core Goals Key Projects Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Park Upgrades and Improvements Park Services staff will complete several park improvement projects as proposed in the Capital Improvement Program budget. These proposed projects include improvements at Blossom Hill and Worcester Parks, park restroom upgrades at Blossom Hill Park, and tennis court resurfacing at Blossom Hill and La Rinconada Parks. These projects will improve the park facilities for local residents. Open Space Trail Upgrades Park Services staff will begin to rehabilitate Heinz and Santa Rosa Open Space areas to improve the trail infrastructure. These two preserves are under the Town’s jurisdiction. These projects will rebuild retaining walls along the trails and improve the drainage along the trail to prevent future erosion. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes 25,782$ 30,213$ 9,878$ 7,000$ 7,000$ 7,000$ Licenses and Permits 245,325 229,498 236,444 231,300 220,000 220,000 Intergovernmental - - - - - - Service Charges 16,256 50,553 32,573 35,010 38,556 39,621 Fines & Forfeitures 1,095 - 290 - - - Other Revenues 9,856 12,995 19,223 12,393 10,143 12,393 TOTAL REVENUES 298,314$ 323,259$ 298,408$ 285,703$ 275,699$ 279,014$ EXPENDITURES Salaries and Benefits 970,618$ 906,955$ 1,040,746$ 1,125,156$ 1,091,068$ 1,094,173$ Operating Expenditures 427,666 404,129 414,939 409,955 501,306 520,380 Fixed Assets - - 15,358 - - - Internal Service Charges 162,792 184,948 206,626 204,451 204,451 218,264 TOTAL EXPENDITURES 1,561,076$ 1,496,032$ 1,677,669$ 1,739,562$ 1,796,825$ 1,832,817$ SUMMARY OF REVENUES AND EXPENDITURES D –200  PARKS & PUBLIC WORKS DEPARTMENT  Park Services KEY PROGRAM SERVICES Maintenance Services • Maintains 62 public sites, including 75.3 acres of landscaped space located in 15 Town parks; 12.09 miles of trails and pathways; 246 acres of open space located in three open space areas; 19.15 acres of landscaping for medians, roadside banks, triangles, and nine community parking lots; 33 Downtown streetscape planters; and grounds maintenance for five Town-owned public buildings with 6.81 acres of landscaped area. • Maintains trees and plants in all parks, on all median islands, along all streets, and on public property, including State Route 9, per agreement with Caltrans. • Conducts ongoing maintenance and improvement projects, as needed, to ensure parks and trails equipment and facilities are functional and in safe operating condition. • Maintains the downtown tree lights on Santa Cruz Avenue and Main Street. • Coordinates the tree removal permit process to protect trees and manage tree inspection services. • Oversees contract services for six Landscaping and Lighting Assessment Districts. • Supervises the state Department of Corrections Work Furlough Program for clean-up projects. Park Use Fees and Reservation System • Manages the online park reservation system and user fee process. • Implements Town regulations in the Town’s parks and trails system. Volunteer Projects • Manages the Downtown Adopt-a-Planter program. • Coordinates volunteers (individuals and groups) who maintain or construct park-related projects, including parks and trails system improvements and debris removal. • Oversees the Adopt A Highway – Highway 9/Highway 17 Circle Ramp Cleanups. Special Events • Provides support services for Town events, including but not limited to, 4th of July, Screen on the Green, and the holiday tree lighting ceremony in Town Plaza Park. • Provides services for other special events on a cost-recovery basis, such as Fiesta de Artes. D –201  PARKS & PUBLIC WORKS DEPARTMENT  Park Services 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Parks & Public Works Director 0.20 0.20 0.20 0.20 0.20 Superintendent 0.40 0.40 0.40 0.40 0.40 Construction Project Mgr - - 0.13 0.13 0.13 Facilities & Environmental Services Mgr 0.10 0.10 0.10 0.10 - Park & Public Works Operation Mgr - - - - 0.60 Administrative Analyst 0.15 0.15 0.15 0.15 0.15 Executive Assistant 0.25 0.25 0.25 0.25 0.25 Administrative Assistant 0.40 0.40 0.40 0.40 0.40 Parks Service Officer 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 1.00 1.00 1.00 1.00 1.00 Parks & Maint Worker 3.00 3.00 3.00 3.00 2.00 TOTAL PROGRAM FTE's 7.50 7.50 7.63 7.63 7.13 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Parks Service Officer 1,000 1,000 1,000 1,000 - Maintenance Assistant 5,963 5,963 5,963 5,963 5,033 TOTAL ANNUAL HOURS 6,963 6,963 6,963 6,963 5,033 Full Time Equivalent (FTE) PARK SERVICES PROGRAM STAFFING D –202  PARKS & PUBLIC WORKS DEPARTMENT  Park Services Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of parks with playground equipment receiving weekly safety inspections:90%90%90%90%90% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.350.9 350.9 350.9 350.9 350.9 2.14.9 14.9 14.9 14.9 14.9 3.500 613 596 500 550 4.56 47 42 40 50 5.35 40 60 60 60Total number of parks service requests within Town parks received and completed: Total number of special use permits for parks issued annually: To ensure the park's playground equipment is functional and in safe operating condition. Total number of acres of Town parks, open space, and median islands maintained: Total number of park reservations issued annually: Total miles of parks and open space trails maintained: D –203 Parks & Public Works Department ENVIRONMENTAL SERVICES PROGRAM 5302 PROGRAM PURPOSE The purpose of the Environmental Services Program is to implement initiatives that protect public health and safety and the environment, and promote programs to encourage a sustainable future. Staff works to encourage: 1) Sustainability initiatives 2) Water conservation 3) Energy reduction 4) Recycling and composting of materials The Environmental Services Program staff ensures the Town is in compliance with environmental regulations, including air quality permits and statewide policies on solid waste disposal and recycling. Staff also provides management oversight with compliance reports, such as the annual report for the NPDES storm water permit. Additionally, program staff educates and raises awareness about environmental issues through various community education activities and events. Staff continues to work with its partners, such as the West Valley Clean Water Program, Pacific Gas & Electric and West Valley Collection & Recycling to raise community awareness about environmental sustainability, waste prevention, and resource conservation. As required by the California Integrated Waste Management Act of 1989 (AB 939), the Town must divert a minimum of 50% of its waste from the landfill. In 2011, the California Integrated Waste Management Act (AB 341) was approved that establishes a statewide diversion goal of 75%, and also requires several solid waste disposal policies. Staff manages compliance with AB 939 and AB 341 requirements, monitors and evaluates existing waste collection and recycling programs, and recommends new programs to meet diversion objectives. Staff also actively D –204  PARKS AND PUBLIC WORKS DEPARTMENT  Environmental Services participates in the West Valley Solid Waste Management Authority, the local joint powers authority for managing the solid waste vendor contracts. BUDGET OVERVIEW The FY 2017/18 budget reflects an ongoing increase of approximately $44,000 to cover the annual cost of trash and recycling pickup in the downtown area on Wednesdays, Saturdays, and Sundays. The Department piloted this service in FY 2015/16 and proposes to continue this level of service. Additional changes to the Environmental Services Program are as follows: a transfer of $38,000 to the Town Manager’s Office for Town events as the responsibility has shifted, a decrease of $35,330 for the annual Household Hazardous Waste augmentation to reflect the actual cost to the Town, an increase of $9,000 for Phase III of the Outside the Box Program, and an increase of $5,000 for electric vehicle charging station maintenance. Program staff will prioritize energy efficiency projects, such as energy management systems and energy efficiency upgrades in Town-owned facilities. These projects will focus on energy reduction and reduce operational costs over the long term. The program also includes the implementation of water conservation measures. Town staff will continue to assist with the West Valley Solid Waste Management Authority (WVSWMA) and Household Hazardous Waste Program with a goal of increasing waste diversion and minimization. The Joint Powers Authority approved new solid waste administrative related fees in FY 2017/18. The revenues collected from the Authority are also being used to offset Department expenditures related to the management of the Household Hazardous Waste Program, street sweeping, and contract administration. The Town provides for two community events each year. Spring into Green is an annual sustainability event that provides the opportunity for the Town to conduct education and outreach on environmental topics. This aligns with and supports the Town’s Sustainability Plan and obligations under the Regional Stormwater Permit, especially around trash reduction in the storm system. The Spring into Green event requires annual staff and non-staff resources equivalent to approximately $12,000. A portion of the staff time is funded through the Parks and Public Works Operating Budget, and the remaining budget and responsibility will be transferred to the Town Manager’s Office. The second event is the 4th of July event. This longstanding event has been held at Oak Meadow Park for the last two years. The event has been very well received by the community D –205  PARKS AND PUBLIC WORKS DEPARTMENT  Environmental Services as a family friendly event. In addition, the 2017 event will include a Block Party on a portion of Santa Cruz Avenue on July 1, 2017. The 4th of July events require staff and non-staff resources equivalent to $50,000. A portion of the staff time is funded through the Parks and Public Works Operating Budget, and the remaining budget and responsibility will be transferred to the Town Manager’s Office. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Licenses and Permits 117,022 107,687 121,192 120,270 120,270 121,956 Intergovernmental 43,653 49,706 44,561 38,200 30,000 38,200 Service Charges 812 916 - - - - Other Revenues 1,000 1,000 - - 500 - TOTAL REVENUES 162,487$ 159,309$ 165,753$ 158,470$ 150,770$ 160,156$ Transfers In Transfer from General Fund - - - - - - Total Transfers In - - - - - - TOTAL REVENUES & TRANFERS IN 162,487$ 159,309$ 165,753$ 158,470$ 150,770$ 160,156$ EXPENDITURES Salaries and Benefits 68,812$ 154,554$ 189,572$ 180,034$ 142,319$ 195,813$ Operating Expenditures 99,073 118,944 180,970 241,272 201,692 187,968 Fixed Assets - - - - - - Internal Service Charges 3,238 6,537 7,854 7,275 7,275 7,640 TOTAL EXPENDITURES 171,123$ 280,035$ 378,396$ 428,581$ 351,286$ 391,421$ Transfers Out Transfer to General Fund - - - - - - Total Transfers Out - - - - - - TOTAL EXPENDITURES & TRANSFERS OUT 171,123$ 280,035$ 378,396$ 428,581$ 351,286$ 391,421$ SUMMARY OF REVENUES AND EXPENDITURES D –206  PARKS AND PUBLIC WORKS DEPARTMENT  Environmental Services FY 2017/18 KEY PROJECTS Core Goals Key Projects Community Character Preserve and enhance the appearance, character, and environmental quality of the community Collection Services The Town is an active member of the West Valley Solid Waste Management Authority, a joint powers authority (JPA) that contracts for solid waste collection, recycling, and disposal services for residential and commercial customers in Los Gatos, Campbell, Monte Sereno, and Saratoga. During FY 2017/18, staff will continue to work actively with the JPA and West Valley Collection and Recycling as it enters its eleventh year of providing service to West Valley cities. Keep Los Gatos Beautiful April is “Keep Los Gatos Beautiful” month, and multiple major events are planned during this month. The campaign celebrates National Earth Day, National Arbor Day, and National Volunteer Recognition Week, all of which occur during April. Keep Los Gatos Beautiful events are funded in part by state Beverage Container Grant funds. “Spring into Green” is a sustainability focused event that combines National Earth Day, National Arbor Day, and “Keep Los Gatos Beautiful” month into one community celebration. Community Outreach and Awareness Program staff will coordinate a variety of waste prevention and resource conservation community outreach activities, to promote recycling, environmental sustainability, and environmental protection. Staff continues to work with partners, such as the West Valley Clean Water Program, Pacific Gas & Electric, and West Valley Collection & Recycling, to raise community awareness of these issues. Staff will also focus on helping Los Gatos businesses achieve a Green Business certification. Additionally, staff will complete another phase of the Utility Box Art Program this fiscal year, which aims to raise awareness of environmental sustainability issues in Los Gatos. Green Business Certification Staff will continue to work on and maintain its Green Business Certification through the Santa Clara County Green Business Program. This fiscal year, staff will complete the certification of the Police Operation Building. As part of this certification process, staff will coordinate green business education programs including the award-winning “Los Gatos: Growing Greener Together” campaign. Household Hazardous Waste The Town contracts with the County of Santa Clara Household Hazardous Waste Program to provide free and safe disposal of household hazardous wastes. Throughout the year, the program will continue to monitor the work performed under this contract, which allows residents to dispose of potentially hazardous wastes such as used motor oil and filters, pesticides, herbicides, corrosives, flammables, and household medical waste. D –207  PARKS AND PUBLIC WORKS DEPARTMENT  Environmental Services KEY PROGRAM SERVICES • Maintains Town’s compliance with California Integrated Waste Management Act of 1989 (AB 939) solid waste diversion requirements, including initiating and implementing programs to increase diversion. • Participates in West Valley Solid Waste Management Authority JPA activities, including rate and service reviews. • Provides safe household hazardous waste disposal options. • Implements the Town’s Climate Action Plan, contained within the Los Gatos Sustainability Plan, including strategies to reduce the Town’s carbon footprint. • Promote sustainability initiatives and educational awareness through partnerships and activities, such as the “Spring into Green” event and the Green Business Certification Program. Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Facilities & Environmental Services Mgr 0.40 0.40 0.40 0.40 - Park & Public Works Operation Mgr - - - - 0.40 Executive Assistant - - 1.00 1.00 - Environmental Service Coordinator 0.50 1.00 - - - Environmental Programs Specialist - - - - 1.00 Total General Fund FTE 0.90 1.40 1.40 1.40 1.40 ENVIRONMENTAL SERVICES PROGRAM STAFFING D –208  PARKS AND PUBLIC WORKS DEPARTMENT  Environmental Services Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Disposal per capita by calendar year (target is < 5.2 lbs./person/day): *1.6 2.3 3.7 3.7 3.7 2013 2014 2015 2016 2017 2. a.Percentage of solid waste collection calls received and resolved within 2 days:100%100%100%100%100% b.Diversion Rate: **Data Not Available 42%44%44%44% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.87 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 2. 687 670 947 947 947 3.Data Not Available 182 172 172 182 4.4 4 8 8 8 5.32,727 61,196 70,471 70,000 70,000 * Target is provided by the California Department of resources Recycling and Recovery (CalRecycle). ** New measure effective FY 2015/16, historical data provided when available. Maximize diversion from landfills in order to protect public health and safety, and the environment. Monitor and evaluate existing waste collection and recycling programs. Number of Electric Vehicle Charging Stations: ** Total kWh used by Electric Vehicle Chargers: ** Number of households participating in the Community Garage Sale event: Town solar usage (Megawatts generated): ** Number of Los Gatos households participating in the Household Hazardous Waste Disposal Program: D –209 Parks & Public Works Department STREETS and SIGNALS PROGRAM PROGRAM 5401 PROGRAM PURPOSE The Streets and Signals Program provides safe and functional roadways, retaining walls, bridges, and curb and sidewalk systems through the ongoing maintenance of the Town’s roadway network. Objectives include small pavement reconstruction, minor street repairs, the filling of potholes, maintenance of roadway signs, traffic pavement markings, signals, streetlights, storm drain maintenance, and debris removal. Program staff collaborates with other Department programs, such as the Park Services Program, and neighboring agencies to perform roadside cleanup projects. Additional project coordination is conducted with the Engineering Program Services for traffic calming device installation and roadway improvements in the Capital Improvement Program. BUDGET OVERVIEW In FY 2017/18, the Streets and Signals Program will continue to provide tree maintenance as a contractual service. This has been done for the last four years as a cost savings measure. It allows staff to focus on other day-to-day operational responsibilities. This contract will be increased one-time by $125,000 for the eucalyptus trees on Hilow Road ($25,000) and additional maintenance town-wide ($100,000). In addition, the FY 2017/18 budget reflects the restoration of a Streets and Parks Operations Manager. This position is necessary to provide guidance and supervision of the Streets and Parks divisions on a day-to-day basis. The position will be funded through several reductions mentioned in the Parks Program. The FY 2017/18 budget also includes a one-time allocation of $22,000 for temporary hours, an increase from the FY 2016/17 allocation of $16,000, to fulfill storm water debris and cleaning requirements associated with the NPDES permit. D –210  PARKS & PUBLIC WORKS DEPARTMENT  Streets & Signals Program Additionally, the program will implement an Integrated Pest Management Plan (IPM) that provides technical guidance to determine appropriate pesticide use to control the growth of weeds around facilities, parks, and roadsides. The IPM plan will highlight on measures other than use of chemicals to control weeds in the open space through means of mechanical vegetation removal and the application of nontoxic chemicals whenever possible. The Town Arborist will continue to manage the Town’s urban forest and will retain an active role in managing the contractual services component of this work. Additionally, the Arborist will perform landscape review for small to medium private development projects. The Arborist also reviews private property tree removal applications and ensures compliance with Town codes and appropriate mitigation. Downtown trash can removal service will be performed through contractual services. Additionally, overtime costs will be contained by only operating the “Stand-by Program” during November through March, instead of year-round. Street sweeping services will continue in the Town and be carried out by the Parks and Maintenance Workers. Streets and Signals staff will continue to be responsible for the maintenance and operations of the trash capture devices, which were installed in FY 2012/13 to meet a requirement of the San Francisco Bay Area Storm Water Municipal Regional Permit. This is an ongoing maintenance responsibility for the Town. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. D –211  PARKS & PUBLIC WORKS DEPARTMENT  Streets & Signals Program 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Licenses and Permits 161,235 179,975 192,097 191,543 191,543 191,543 Intergovernmental - - - - - - Service Charges 1,280 7,679 5,546 4,000 4,000 4,000 Other Revenues 28,572 - 1,326 - 28,124 - TOTAL REVENUES 191,087$ 187,654$ 198,969$ 195,543$ 223,667$ 195,543$ EXPENDITURES Salaries and Benefits 979,188$ 987,520$ 990,521$ 1,093,259$ 1,093,295$ 1,243,191$ Operating Expenditures 580,171 583,729 681,717 585,709 696,012 710,709 Fixed Assets - - - - - - Internal Service Charges 457,604 349,198 343,174 316,956 297,425 356,157 TOTAL EXPENDITURES 2,016,963$ 1,920,447$ 2,015,412$ 1,995,924$ 2,086,732$ 2,310,057$ SUMMARY OF REVENUES AND EXPENDITURES D –212  PARKS & PUBLIC WORKS DEPARTMENT  Streets & Signals Program FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable and collaborate government Ongoing Maintenance Ongoing maintenance of the Town’s infrastructure ensures year round functionality for the Town. This work includes roadway repair, storm drain cleaning, street sign replacements, and other routine maintenance activities. Inter-Program Work Projects Program staff will continue to plan and coordinate work projects, such as roadside clean-ups, that use Department-wide resources to increase efficiency and address large scale maintenance issues. Partnership with Other Municipalities Staff will continue to pursue opportunities with local agencies that have similar service needs in an effort to reduce program expenditures. Successful ongoing coordinated efforts include graffiti removal, paving operations, and brush removal activities. Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Capital Improvement Program Projects Streets program staff will perform minor pavement repairs in advance of contractor work to enhance efficiency and management of Capital Improvement Program projects. D –213  PARKS & PUBLIC WORKS DEPARTMENT  Streets & Signals Program KEY PROGRAM SERVICES Street Maintenance/Traffic Signal Program • Maintains traffic signs and street signs along public streets. • Maintains visibility of pavement markings, including crosswalks, red curbs, and roadway striping. • Maintains 30 signalized intersections and 1,580 streetlights in the public right-of-way. • Maintains downtown tree lights along North Santa Cruz Avenue and Main Street. • Installs LED Streetlights. Tree Maintenance • Oversees the tree trimming contract. • Manages private tree removal application process and implementation of mitigation measures. Street Maintenance/Pavement • Maintains and repairs over 106 miles of public streets and 22 parking lots. • Maintains storm drain basins, ditches, and culverts. Sidewalk Maintenance Program • Coordinates concrete sidewalk, curb, and gutter replacement program with CIP. Sidewalk Maintenance Program • Coordinates concrete sidewalk, curb, and gutter replacement program with CIP. • Maintains the cleanliness of sidewalks, benches, and waste receptacles in the business districts using pressure washing equipment. Special Events • Provides support services to Town-sponsored events. • Installs banners and flags throughout town at various times during the year to celebrate national and local events, such as Flag Day, the 4th of July, Memorial Day, and Veteran’s Day. D –214  PARKS & PUBLIC WORKS DEPARTMENT  Streets & Signals Program 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Parks & Public Works Director 0.20 0.20 0.20 0.20 0.20 Superintendent 0.40 0.40 0.40 0.40 0.40 Construction Project Mgr - - 0.13 0.13 0.13 Park & Public Works Operation Mgr - - - - 0.50 Administrative Analyst 0.15 0.15 0.15 0.15 0.15 Executive Assistant 0.25 0.25 0.25 0.25 0.25 Administrative Assistant 0.30 0.30 0.30 0.30 0.30 Town Arborist 1.00 1.00 1.00 1.00 1.00 Lead Parks & Maint Worker 1.00 1.00 1.00 1.00 1.00 Sweeper Operator 0.75 0.75 - - - Parks & Maint Worker 4.00 4.00 4.75 4.75 4.75 TOTAL PROGRAM FTEs 8.05 8.05 8.18 8.18 8.68 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Maintenance Worker - - 741 488 488 Maintenance Assistant 200 1,062 - - - TOTAL ANNUAL HOURS 200 1,062 741 488 488 Full Time Equivalent (FTE) STREETS & SIGNALS PROGRAM STAFFING D –215  PARKS & PUBLIC WORKS DEPARTMENT  Streets & Signals Program Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of streetlight malfunctions repaired within 5 days of notification:100%100%100%100%100% b.Percentage of traffic signals meeting visibility and operational state guidelines:100%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 2. a.Percentage of traffic signal malfunctions repaired within three hours of notification:100%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued b.Percentage of stop signs repaired and replaced within 24 hours of notification:95%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued c.Pavement Condition Index (PCI):72 67 66 66 67 Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.1980 1980 1,827 1,827 1,827 2.397 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 3.Number of street light malfunctions reported:*Data Not Available 136 109 112 122 4.150 151 109 130 130 5.29 30 30 30 30 6.106 147 150 150 150 7.456 568 443 478 460 8.242 238 189 180 180 9.139 198 217 237 227 10.Data Not Available Data Not Available 739 720 730 11.229 357 Measure Discontinued Measure Discontinued Measure Discontinued 12.Data Not Available 304 503 580 550 13.Data Not Available 7,450 1,000 2,200 1,600 14 Data Not Available 82,220 89,224 89,224 89,224 * New measure effective FY 2015/16, historical data provided when available. To provide safe and functional roadway systems throughout Town. To ensure streetlights and traffic signals are working in effective operating order. Number of Town street lights: Annual number of Town street lights repaired: Total number of traffic related work orders received and completed: Number of signalized intersections maintained: Miles of street maintained: Number of PG&E street lights monitored by Town staff for functionality: Number of traffic signs repaired/replaced: Square feet of sidewalks removed and replaced:* Linear feet of bike lanes:* Number of public trees pruned or maintained at industry standard:* Total number of tree-related maintenance requests received, requiring inspection by staff: Total number of staff hours to conduct tree inspections and/or pruning, including tree removal permit inspections Total number of staff hours for tree-related work, including, but not limited to, inspections or pruning D –216 D –217 Parks & Public Works Department PROPERTY DAMAGE PROGRAM 5405 PROGRAM PURPOSE The Property Damage Program is an operating program designed to monitor financial activity related the damage of Town property and public infrastructure, such as sidewalks, streets, Town vehicles, parks, and other public facilities. In particular, this program tracks revenue/reimbursements received by applicable parties and expenses incurred as the result of damage to Town property. BUDGET OVERVIEW The FY 2017/18 budget reflects a net zero impact to the General Fund budget, as it is difficult to anticipate potential damage to Town property. A placeholder of $25,000 in expenditures was budgeted; budget adjustments, if necessary, will be brought forward for Council consideration during the mid-year budget review process. Due to the timing of the receipt of reimbursements, prior year revenue actuals are initially higher than expenditures. As this program includes no staff activity, it does not have Key Projects or Performance Measures. D –218  PARKS & PUBLIC WORKS DEPARTMENT  Property Damage 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Licenses and Permits - - - - - - Intergovernmental - - - - - - Service Charges - - - - - - Other Revenues 52,244 24,029 67,785 - 12,227 - TOTAL REVENUES 52,244$ 24,029$ 67,785$ -$ 12,227$ -$ EXPENDITURES Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 10,442 17,726 63,203 25,000 49,595 25,000 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 10,442$ 17,726$ 63,203$ 25,000$ 49,595$ 25,000$ SUMMARY OF REVENUES AND EXPENDITURES D –219 Parks & Public Works Department PASS-THROUGH ACCOUNTS PROGRAM 5999 PROGRAM PURPOSE The Pass-Through Accounts Program provides an accounting structure to separate ongoing Parks and Public Works program activities from applicant funding utilized for external engineering services consultants, such as traffic study engineering and geotechnical reviews. Fees for these external development services are paid for in advance by the applicant, with the funds then applied to a purchase order. All invoices from the consultants are subsequently paid out of the applicant’s account until they zero out. Any remaining balance is returned to the applicant. Accounting for these activities in a separate accounting structure allows the true cost of operations to remain intact within a program, eliminating unrelated funding fluctuations from year to year. This pass-through approach is also used in the Community Development Department for similar projects. BUDGET OVERVIEW There is no budgetary impact to this program as revenues will equal expenditures. The revenues and expenditures reflect estimates based on prior year trends and known departmental operations. At fiscal year-end, actuals may differ substantially from original budgeted numbers as the quantity and size of engineering fees within the community in any given year is not known or determinable in advance. This budget reflects a reasonable estimate only. As this program includes no staff activity, it does not have Key Projects or Performance Measures. D –220  PARKS & PUBLIC WORKS DEPARTMENT  Pass-Through Accounts 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Other Taxes -$ -$ -$ -$ -$ -$ Licenses and Permits - - - - - - Intergovernmental - - - - - - Service Charges - - - - - - Other Revenues 178,092 125,195 70,686 165,000 155,000 140,000 TOTAL REVENUES 178,092$ 125,195$ 70,686$ 165,000$ 155,000$ 140,000$ EXPENDITURES Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures - - - - - - Pass Thru Account 178,092 125,195 70,715 165,000 155,000 140,000 Internal Service Charges - - - - - - TOTAL EXPENDITURES 178,092$ 125,195$ 70,715$ 165,000$ 155,000$ 140,000$ SUMMARY OF REVENUES AND EXPENDITURES D –221 Parks & Public Works Department EQUIPMENT REPLACEMENT FUND FUND 631 PROGRAM PURPOSE The Equipment Replacement Program provides funding for the replacement of Town vehicles, equipment, and information technology with a value greater than $10,000. The initial capital costs associated with an asset are charged to the program budget where the asset exists. The program having custody and utilizing the asset pays the replacement cost amortized over the life of the asset through internal service charges. These internal service charges accumulate the needed funding to replace the Town’s vehicle and equipment assets at the end of their useful lives. The result of this funding structure is a smoothing of operating expenditures and a more accurate reflection of the actual cost of operations. Town vehicles and equipment purchased and maintained by a separate Vehicle Maintenance Program. Replacement is based on the vehicle meeting predetermined age and/or mileage criteria as set forth in the Equipment Replacement Policy. Vehicle Maintenance personnel evaluate vehicles scheduled for replacement before a final determination is made. BUDGET OVERVIEW This program’s budget includes funding for replacement vehicles and equipment. Program expenditures change significantly each year due to the timing of major purchases of equipment. A combination of deferred replacement, upgrades, replacements, and the refurbishment of vehicles and equipment is proposed, based on the condition of each vehicle or piece of equipment and its cost effectiveness. The FY 2017/18 replacement schedule identifies ten vehicles for replacement as determined by the Town’s Equipment Replacement Policy. The vehicles scheduled for replacement are in the Police Department and Parks and Public Works fleets. D –222  PARKS & PUBLIC WORKS DEPARTMENT  Equipment Replacement Fund Cost for vehicle replacement continues to escalate 3% to 5% annually based on increased cost in manufacturing. New vehicle purchases include the installation of safety equipment and components specific to Department needs thus increasing the overall cost of replacement. Additionally, Public Safety vehicles differ than the general fleet based on emergency response, including traveling at high rates of speed. As a result, special equipment such as waring lights, sirens, and computers continue to increase the overall cost of new vehicles. Program staff will continue to evaluate the current fleet inventory and evaluate each vehicle’s replacement schedule along with the Department’s needs and the Equipment Maintenance and Replacement Policy. Vehicles previously removed from the replacement schedule, but still in the inventory will be evaluated as staff explores right sizing the fleet. Vehicles that are still needed to provide service will be addressed individually through this program as fleet additions. In FY 2013/14, the Town entered into an equipment cost sharing agreement with the cities of Campbell and Cupertino. The purpose of this agreement is to help generate revenue for the Town by loaning out the use of the sewer vehicle truck when Town staff does not need it and to provide access to equipment not available in the Town’s inventory. The revenues collected from this agreement are deposited back into the Equipment Replacement Fund for this specific asset. Over time, this will help offset replacement costs for the Town when that vehicle needs to be replaced. Staff will also explore replacement costs versus rental of equipment to reduce ongoing program operation expenditures. Assessments between internal and external diagnostic and repair facility costs will be conducted to determine the most cost-effective approach. As this program includes minimal staff activity, it does not have Performance Measures. In FY 2015/16, Council approved the establishment of an Almond Grove Reserve. A transfer out of the Equipment Replacement Fund of $1.5 million was made in FY 2016/17 to fund a portion of the CIP project. Future budget years anticipate increased contribution to the Equipment Replacement Fund through internal service charges to ensure adequate resources for future Town equipment needs. D –223  PARKS & PUBLIC WORKS DEPARTMENT  Equipment Replacement Fund 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated - Non-Point Assets 207,831$ 207,831$ 207,831$ 207,831$ 207,831$ 207,831$ Designated - General Fund Assets 3,052,700 3,221,812 3,467,197 1,948,473 1,948,473 1,552,197 Total Beginning Fund Balance 3,260,531 3,429,643 3,675,028 2,156,304 2,156,304 1,760,028 Revenues Service Charge 473,929 369,953 490,826 381,322 381,322 614,279 Interest - - - - - - Other Revenues 33,050 134,999 10,267 - 11,000 10,000 Total Revenues 506,979 504,952 501,093 381,322 392,322 624,279 Transfers In Transfer from Capital Projects - - - - - - Transfer from General Fund - 15,000 - - - - Transfer from MIS - 16,066 - - - - Total Transfers In - 31,066 - - - - Total Revenues & Transfers In 506,979 536,018 501,093 381,322 392,322 624,279 TOTAL SOURCE OF FUNDS 3,767,510$ 3,965,661$ 4,176,121$ 2,537,626$ 2,548,626$ 2,384,307$ USES OF FUNDS Expenditures Salaries and Benefits 7,245$ 6,932$ 631$ 10,804$ 9,504$ 14,027$ Operating Expenditures 2,099 3,344 - - - - Fixed Assets 328,507 280,357 530,499 325,565 483,414 644,661 Internal Service Charges 16 - - - - - Total Expenditures 337,867 290,633 531,130 336,369 492,918 658,688 Transfers Out Transfer to General Fund - - 1,488,687 - - - Transfer to Capital Projects - - - - 295,680 - Total Transfers Out - - 1,488,687 - 295,680 - Total Expenditures & Transfers Out 337,867 290,633 2,019,817 336,369 788,598 658,688 Ending Fund Balance Designated - Gas Tax Assets - - - - - - Designated - Non-Point Assets 207,831 207,831 207,831 207,831 207,831 207,831 Designated - General Fund Assets 3,221,812 3,467,197 1,948,473 1,993,426 1,552,197 1,517,788 Total Ending Fund Balance 3,429,643 3,675,028 2,156,304 2,201,257 1,760,028 1,725,619 TOTAL USE OF FUNDS 3,767,510$ 3,965,661$ 4,176,121$ 2,537,626$ 2,548,626$ 2,384,307$ STATEMENT OF SOURCE AND USE OF FUNDS D –224  PARKS & PUBLIC WORKS DEPARTMENT  Equipment Replacement Fund FY 2017/18 KEY PROJECTS Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Fuel System Enhancements Staff will replace the existing fuel system to a new modern system. The new technology system will automatically track and transmit vehicle usage data, which will ensure data integrity and eliminate the need to input data manually. KEY PROGRAM SERVICES • Assesses vehicles and equipment for proper replacement timing and for fuel efficiency and functionality. • Performs cost effectiveness studies for asset cost and replacements. • Accumulates appropriate internal service charges for asset replacement funding. • Coordinates with Town Departments for the smooth placement into service of new vehicles and equipment. Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Account Technician 0.10 0.10 0.10 0.10 - Administrative Analyst - - - - 0.10 Total Equipment Replacement FTEs 0.10 0.10 0.10 0.10 0.10 EQUIPMENT REPLACEMENT PROGRAM STAFFING D –225 Parks & Public Works Department VEHICLE MAINTENANCE PROGRAM FUND 632 PROGRAM PURPOSE The Vehicle Maintenance Program maintains the Town’s vehicles and equipment to ensure each piece is safe and functional. Program staff provide preventive maintenance and repair for the Town’s fleet and light to heavy duty construction equipment. The total number of vehicles and light and heavy equipment maintained by the Town is 150. A combination of in-house personnel and outside contractors provide maintenance and repair services for the Town’s vehicles and equipment. BUDGET OVERVIEW This program continues to evaluate vehicle maintenance costs and repairs to determine cost saving strategies. This program will continue to evaluate the purchase of hybrid and alternative fuel vehicles, as the budget permits, to reduce fuel consumption over the short and long terms. In FY 2013/14, the Town added five electric vehicles to its fleet through a lease agreement from Mitsubishi Motors. Staff evaluated the usage of these vehicles, and renewed a lease agreement for four of the electric vehicles. In FY 2014/15, at Council’s direction, the Town built four new electrical vehicle charging stations to help fuel these vehicles, and also provided additional charging stations for public use. Over the last fiscal year, this program has shifted to performing more in-house vehicle maintenance services with the assistance of temporary personnel, thereby reducing the amount of outside contractual work. While this is a cheaper alternative overall, staff recommends the adjustment of funds to the auto parts line item to align the budget with actual costs and the continued use of contractual work on an as-needed basis. D –226  PARKS & PUBLIC WORKS DEPARTMENT  Vehicle Maintenance Program Fuel prices have been low this fiscal year, although costs can vary significantly, making forecasting fuel prices for the fiscal year difficult. Due to market variations, cost projections remain conservative; however, any fuel prices over and above the established budget would be brought forth in the mid-year budget report. . 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 601,794 740,860 322,864 409,872 409,871 484,534 Total Beginning Fund Balance 601,794 740,860 322,864 409,872 409,871 484,534 Revenues Service Charge 528,600 569,300 571,670 573,865 573,865 586,654 Interest - - - - - - Other Revenues 287 703 - - 3,811 - Total Revenues 528,887 570,003 571,670 573,865 577,676 586,654 TOTAL SOURCE OF FUNDS 1,130,681$ 1,310,863$ 894,534$ 983,737$ 987,547$ 1,071,188$ USES OF FUNDS Expenditures Salaries and Benefits 148,657$ 188,580$ 229,752$ 197,211$ 234,279$ 206,836$ Operating Expenditures 240,408 299,419 254,910 376,655 268,734 376,655 Fixed Assets 544 - - - - - Internal Service Charges 212 - - - - - Total Expenditures 389,821 487,999 484,662 573,866 503,013 583,491 Transfers Out Transfer to ABAG Liability - 500,000 - - - - Total Transfers Out - 500,000 - - - - Total Expenditures & Transfers Out 389,821 987,999 484,662 573,866 503,013 583,491$ Ending Fund Balance Designated - - - - - - Undesignated 740,860 322,864 409,872 409,871 484,534 487,697 Total Ending Fund Balance 740,860 322,864 409,872 409,871 484,534 487,697 TOTAL USE OF FUNDS 1,130,681$ 1,310,863$ 894,534$ 983,737$ 987,547$ 1,071,188$ STATEMENT OF SOURCE AND USE OF FUNDS D –227  PARKS & PUBLIC WORKS DEPARTMENT  Vehicle Maintenance Program FY 2017/18 KEY PROJECTS Core Goals Key Projects Community Character Preserve and enhance the appearance character and environment quality of the community Alternate Fuel Vehicles The program will continue to pursue alternate fuel vehicles as the replacement schedule, Town budget, and functionality requirements allow. The Town has added four electric vehicles to its fleet through an extended lease program, which has reduced fuel consumption and saved in fuel efficiency costs overall. Alternative Fuel Station The program provides Compressed Natural Gas (CNG) for the Town’s fleet and the installation of four additional electric vehicle charging stations will serve both the Town’s fleet and the public. Good Governance Ensure responsive, accountable and collaborate government Repair Schedules Staff will continue to actively manage maintenance schedules to maximize vehicle and equipment life cycles. Ongoing efforts at selective in-sourcing and out-sourcing of work ensure the program provides quality and cost efficient service. Fleet Management The program’s asset management system tracks a vehicle’s total repair, maintenance schedule, and fuel costs. This system provides reliable quantitative information to assist with replacement decisions and conduct operational efficiencies. Staff will continue to analyze fleet usage and repair cost information and adjust the fleet size as appropriate. Department Joint Projects Staff will continue to participate in Department joint projects on an as needed basis, which provides additional departmental flexibility for major projects. Winter storms require action Department-wide with all program staff participating. KEY PROGRAM SERVICES • Provides preventive maintenance and repairs for all Town-owned vehicles and equipment. • Maintains the Town’s fueling system infrastructure for CNG, gasoline, and diesel fuel. D –228  PARKS & PUBLIC WORKS DEPARTMENT  Vehicle Maintenance Program Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Superintendent 0.20 0.20 0.20 0.20 0.20 Administrative Assistant 0.20 0.20 0.20 0.20 0.20 Office Assistant - - 0.20 0.20 0.20 Equipment Mechanic 1.00 1.00 1.00 1.00 1.00 Total Vehicle Maint. FTEs 1.40 1.40 1.60 1.60 1.60 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Office Assistant 350 350 - - - Maintenance Assistant - 646 - - - TOTAL ANNUAL HOURS 350 996 - - - VEHICLE MAINTENANCE PROGRAM STAFFING D –229  PARKS & PUBLIC WORKS DEPARTMENT  Vehicle Maintenance Program Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of fleet in compliance with maintenance schedule:100%100%100%100%100% b.Cost per mile, by class of equipment (Life, cost/replacement cost=annual cost per mile) Police:$0.44 $0.44 $0.44 $0.45 $0.45 General Fleet - light:$1.69 $1.50 $0.63 $0.70 $0.70 General Fleet - heavy:$2.32 $1.90 $0.87 $0.90 $0.90 c.Percentage of fleet that is alternate fuel vehicles:*Data Not Available 24%24%24%24% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.47 49 49 49 49 2.4 4 4 4 4 3.37 38 41 41 41 4.47 45 45 45 45 5.7 7 7 7 7 6.5 5 5 4 4 * New measure effective FY 2015/16, historical data provided when available. Electric vehicles: Hybrid vehicles: Pieces of equipment maintained (light and heavy duty): Number of heavy-duty vehicles maintained: Number of light-duty (non-police) vehicles maintained: Number of police vehicles maintained: To provide safe and functional vehicles and equipment. D –230 D –231 Parks & Public Works Department FACILITIES MAINTENANCE PROGRAM FUND 633 PROGRAM PURPOSE The Facilities Maintenance Program provides services to ensure Town facilities are safe and functional for public and employee use. Maintenance services include custodial services, elevator maintenance, cell phone services, heating and ventilation air systems, building improvements, facility security, and lighting systems. Facilities Program staff also plan, schedule, and manage small and large building facility projects such as building remodeling, public access infrastructure improvements, recarpeting, work space reconfigurations, roof repairs, heating and air conditioning system improvements, electrical services, and all other aspects required to keep the Town’s facilities well-functioning and safe. BUDGET OVERVIEW Revenues for this fund are obtained through assessment chargebacks to Town Departments, based upon a percentage of square footage assigned to each Department. The Facilities Maintenance Program pays for all operating expenditures, including utilities, repairs, and maintenance and the Departments in turn fund the program’s expenditures through these chargebacks. In FY 2016/17, this program budget reflects an increase in expenditures attributed to facility needs in the Civic Center basement and restroom, the temporary office trailer at the Corporation Yard, Library porter service hours, and the Police Department sally port powerwash. An increase of $14,000 is also recommended for higher laundry service costs due to the frequency that the Town mechanics use the service. In FY 2017/18, this program budget reflects an increase of $5,000 in fire suppression expenditures attributed to vehicle extinguisher monitoring and prevailing wage increases. D –232  PARKS & PUBLIC WORKS DEPARTMENT  Facilities Maintenance Program Additionally this fiscal year, program staff will continue to assess energy efficiency measures and upgrades in Town-owned facilities. In collaboration with staff from the Environmental Services Program, Facilities Maintenance staff will replace outdated fixtures and appliances with energy efficient upgrades saving the Town energy costs over the long term. This program will continue the cost-saving strategy by limiting the use of program staff overtime. The decrease in overtime involves the reduction of the after-hours “Stand-by Program.” Stand-by will be available during the months of November through March, instead of year-round. D –233  PARKS & PUBLIC WORKS DEPARTMENT  Facilities Maintenance Program 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 1,255,710 1,319,866 484,032 981,784 414,369 455,561 Total Beginning Fund Balance 1,255,710 1,319,866 484,032 981,784 414,369 455,561 Revenues Other Taxes 116,020 135,959 44,453 40,000 40,000 40,000 Service Charge 1,007,014 974,404 1,019,164 1,124,537 1,124,537 1,142,513 Service Charges - - - - - - Other Revenues 196,989 227,270 217,845 217,338 246,069 253,576 Total Revenues 1,320,023 1,337,633 1,281,462 1,381,875 1,410,606 1,436,089 Transfers In Transfer from General Fund - - - - - - Total Transfers In - - - - - - Total Revenues & Transfers In 1,320,023 1,337,633 1,281,462 1,381,875 1,410,606 1,436,089 TOTAL SOURCE OF FUNDS 2,575,733$ 2,657,499$ 1,765,494$ 2,363,659$ 1,824,975$ 1,891,650$ USES OF FUNDS Expenditures Salaries and Benefits 214,868$ 333,146$ 364,733$ 351,180$ 346,563$ 359,695$ Operating Expenditures 864,097 915,673 974,246 1,030,695 1,022,851 1,042,357 Fixed Assets 7,658 - - - - - Internal Service Charges 288 - - - - - Total Expenditures 1,086,911 1,248,819 1,338,979 1,381,875 1,369,414 1,402,052 Transfers Out Transfer to General Fund - - - - - - Transfer to Capital Projects 168,956 924,648 12,146 - - - Transfer to Office Stores - - - - - - Total Transfers Out 168,956 924,648 12,146 - - - Total Expenditures & Transfers Out 1,255,867 2,173,467 1,351,125 1,381,875 1,369,414 1,402,052 Ending Fund Balance Designated - - - - - - Undesignated 1,319,866 484,032 414,369 981,784 455,561 489,598 Total Ending Fund Balance 1,319,866 484,032 414,369 981,784 455,561 489,598 TOTAL USE OF FUNDS 2,575,733$ 2,657,499$ 1,765,494$ 2,363,659$ 1,824,975$ 1,891,650$ STATEMENT OF SOURCE AND USE OF FUNDS D –234  PARKS & PUBLIC WORKS DEPARTMENT  Facilities Maintenance Program FY 2017/18 KEY PROJECTS Core Goals Key Projects Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Oversight of Capital Improvement Projects Program staff will assist in the oversight of all facility improvement projects planned during FY 2017/18, including numerous building improvement projects at the Civic Center and other Town facilities. HVAC Controls Project Program staff will complete a project to upgrade and centralize the HVAC building management system at the Civic Center. The existing system is part of the original building’s infrastructure. Energy Efficiency Upgrades – Town-wide Program staff will complete various energy efficiency improvements in Town- owned facilities, resulting in cost savings over the long term. Many of the existing fixtures and equipment throughout Town buildings are functional, yet outdated, and are not the most energy efficient options at the current time. A sample of improvements will include low flow water fixtures, light motion sensors, and energy efficient equipment. Electric Vehicle Charging Stations Staff will monitor and manage the eight electrical vehicle charging stations in Town. KEY PROGRAM SERVICES • Administers custodial, telephone, heating, ventilating, and air conditioning system maintenance agreements. • Manages preventive maintenance contracts for elevator, fire, and building alarms. • Administers facilities capital improvement contracts. • Administers repairs and improvements to The New Museum of Los Gatos and the Friends of the Library as well as the vacant buildings on Tait and at Forbes Mill. • Manages inter-Departmental service requests. • Manages lighting for public parking garages and public parking lots. • Maintains downtown tree lights along North Santa Cruz Avenue and Main Street. D –235  PARKS & PUBLIC WORKS DEPARTMENT  Facilities Maintenance Program Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Facilities & Environmental Services Mgr 0.50 0.50 0.50 0.50 - Park & Public Works Operation Mgr - - - - 0.50 Lead Parks & Maint Worker 1.00 1.00 1.00 1.00 1.00 Parks & Maint Worker 1.00 1.00 1.00 1.00 1.00 Total Building Maint. FTEs 2.50 2.50 2.50 2.50 2.50 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Maintenance Assistant 628 628 628 628 628 TOTAL ANNUAL HOURS 628 628 628 628 628 FACILITIES MAINTENANCE PROGRAM STAFFING Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of high priority (safety or service interruption) requests completed within 3 days:92%90%83%85%90% b.Percentage of facilities requests completed within 14 days:92%93%90%90%90% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.155,089 115,642 135,824 135,824 135,824 2.Data Not Available 46,257 54,330 54,330 54,330 3.Data Not Available $2.9 $2.7 $2.6 $2.7 4.216 290 292 276 276 5.78 199 Measure Discontinued Measure Discontinued Measure Discontinued 6.138 91 Measure Discontinued Measure Discontinued Measure Discontinued * New measure effective FY 2015/16, historical data provided when available. ** New measure effective FY 2016/17, historical data provided when available. Total number of facility repairs requests received and completed: Cost per square foot:* To ensure Town facilities are safe and functional for public and employee use. Total number of facility service requests received and completed: Total square footage of facilities maintained: Total square footage of facilities maintained per FTE:* Total number of facility requests received and completed D –236 D –237 Parks & Public Works Department NON-POINT SOURCE PROGRAM FUND 222 PROGRAM PURPOSE The principal objective of the Non-Point Source Program is to keep debris and pollution from entering the Town’s storm drain system, which drains directly into local creeks and ultimately the San Francisco Bay. This objective is accomplished by providing street sweeping services, maintaining trash capture devices inside storm drains, and inspecting private development projects to ensure compliance with storm water requirements. To meet the National Pollutant Discharge Elimination System (NPDES) Permit requirements, Engineering Development Program staff, in coordination with Community Development Department staff, will continue to review the regulations to evaluate the staff and budget impacts associated with implementation of this permit. BUDGET OVERVIEW The West Valley Sanitation District receives funding collected through the County of Santa Clara property tax rolls for non-point source functions. These receipts are then distributed to three local agencies that support this function: to the Town for operating expenditures incurred through this program’s activities; to the West Valley Clean Water Program (WVCWP); and to the West Valley Sanitation District (WVSD) to reimburse the District for the NPDES permit fee, the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP), and WVSD annual storm drain maintenance work. These programs perform various functions required under the Federal Clean Water Act, Environmental Protection Agency regulations, and respective NPDES permits. The West Valley cities of Saratoga, Monte Sereno, Campbell, and Los Gatos are participants in the WVCWP, which represents these cities’ at the County and regional level on policy permit issues. Additionally, the WVCWP manages permit and fee administration, collection of revenue through tax assessments and data aggregation and reporting for the West Valley cities. Each year, the Town and the three other municipalities cooperatively prepare an outline of the annual work plan and the associated budget for approval prior to the D –238  PARKS & PUBLIC WORKS DEPARTMENT  Non-Point Source Program establishment of the annual user fees, and prior to the WVSD transmitting those fees to the County for collection on the property tax roll. The NPDES permit which regulates each of these programs is issued by the San Francisco Regional Water Quality Control Board (RWQCB). An initial permit went into effect in 1990s. A next generation of the NPDES storm water permit, called the Municipal Regional Storm water Permit (MRP), was adopted by the California Regional Water Quality Control Board in October 2009, for an approximate five year cycle. The recently adopted MRP 2.0 permit mandates increased requirements in several key areas, including development projects. Increased inspection mandates will require additional staff time both for the inspection and the associated reporting. As a result of these new permit regulations, staff will be required to perform more construction inspections on new development projects to ensure permit requirements, such as Low Impact Development (LID) features, are met. Additionally, requirements to meet trash load reduction impacts to creeks will be increased from 70% by 2017 to 100% by 2022. Each of these items has associated costs and workloads, and as the requirements increase, incremental gains become more difficult and more expensive with no direct cost recovery option. Staff from the Parks and Public Works Department continues to implement requirements within the Long Term Trash Plan, as part of the NPDES permit requirements. The FY 2017/18 budget reflects a one-time allocation of $22,000 for temporary hours, an increase from the FY 2016/17 allocation of $16,000, to fulfill storm water debris and cleaning requirements associated with the NPDES permit. In FY 2015/16 this fund received a one-time General Fund allocation as the fund did not collect enough revenue to cover the expenses in managing compliance with the Regional Stormwater Permit. In FY 2017/18 and on an ongoing basis, additional revenue of $200,000 will be received from the Town’s solid waste hauler by way of rate increases to address the needs in this program. The Town’s NPDES program will continue to conduct monthly sweeping of streets and parking lots; clear storm drains, ditches, and culverts; and dispose of collected material in a safe manner. The frequency of street sweeping in residential and commercial areas may be increased as a result of increased permit regulations in the long term, budget permitting. Staff is currently evaluating costs and strategies to implement these additional regulations. The Town’s NPDES program activities also include volunteer groups that regularly pick up debris along the Los Gatos Creek Trail. Town staff track and report the amount of debris collected by all these activities to WVCWP. D –239  PARKS & PUBLIC WORKS DEPARTMENT  Non-Point Source Program 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 120,100 125,935 142,943 109,029 109,029 (16,318) Total Beginning Fund Balance 120,100 125,935 142,943 109,029 109,029 (16,318) Revenues Licenses and Permits - - 30,000 30,780 30,780 231,323 Intergovernmental - - - - - - Service Charge - - - - - - Other Revenues 328,648 328,868 338,813 336,684 336,684 353,071 Total Revenues 328,648 328,868 368,813 367,464 367,464 584,394 Transfers In Transfer from General Fund - 100,000 50,000 - - - Total Transfers In - 100,000 50,000 - - - Total Revenues & Transfers In 328,648 428,868 418,813 367,464 367,464 584,394 TOTAL SOURCE OF FUNDS 448,748$ 554,803$ 561,756$ 476,493$ 476,493$ 568,076$ USES OF FUNDS Expenditures Salaries and Benefits 65,163$ 108,556$ 111,664$ 154,256$ 122,270$ 165,668$ Operating Expenditures 254,511 298,437 335,544 371,471 362,333 390,337 Fixed Assets - - - - - - Internal Service Charges 3,139 4,867 5,519 8,208 8,208 8,905 Total Expenditures 322,813 411,860 452,727 533,935 492,811 564,910 Transfers Out Transfer to General Fund - - - - - - Total Transfers Out - - - - - - Total Expenditures & Transfers Out 322,813 411,860 452,727 533,935 492,811 564,910 Ending Fund Balance Designated - - - - - - Undesignated 125,935 142,943 109,029 (57,442) (16,318) 3,166 Total Ending Fund Balance 125,935 142,943 109,029 (57,442) (16,318) 3,166 TOTAL USE OF FUNDS 448,748$ 554,803$ 561,756$ 476,493$ 476,493$ 568,076$ STATEMENT OF SOURCE AND USE OF FUNDS D –240  PARKS & PUBLIC WORKS DEPARTMENT  Non-Point Source Program FY 2017/18 KEY PROJECTS KEY PROGRAM SERVICES • Sweeps Town streets and parking lots and steam-cleans business area sidewalks. • Coordinates Integrated Pest Management with Park Services Program to reduce pesticides from entering waterways due to Town pest management activities. • Monitors storm water permit issues and implements strategies in collaboration with other Town Departments, to meet permit requirements. • Coordinates education and awareness programs related to storm water issues with partners and volunteers. Core Goals Key Projects Community Character Preserve and enhance the appearance, character, and environmental quality of the community Expanded Trail Volunteerism The program will continue to increase volunteerism to reduce debris from entering the waterways alongside trails and walkways in Los Gatos. In addition, program staff will continue to partner with the West Valley Clean Water Program to raise awareness about storm water and pollution prevention to residents in the community. Good Governance Ensure responsive, accountable, and collaborative government Municipal Regional Permit Program staff will continue to take on an increased role in implementing regulations related to the San Francisco Bay Area Storm water Municipal Regional Permit. The new permit requires additional staff involvement in areas such as oversight of new private development stormwater treatment measures, trash load reduction, inspections, and maintenance and operations. Staff will continue to monitor and implement strategies with other Town Departments to ensure permit compliance issues are met. D –241  PARKS & PUBLIC WORKS DEPARTMENT  Non-Point Source Program Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Sweeper Operator 0.25 0.25 - - - Parks & Maint Worker - - 0.25 0.25 0.25 Engineering Inspector 0.50 0.50 0.50 0.50 0.50 Administrative Analyst 0.25 0.25 0.25 0.25 0.25 Total Non-Point Source FTEs 1.00 1.00 1.00 1.00 1.00 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Hours Funded Funded Funded Funded Proposed Maintenance Worker - - 1,234 488 488 TOTAL ANNUAL HOURS - - 1,234 488 488 NON-POINT SOURCE PROGRAM STAFFING Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. 2,391 2,135 1,375 2,000 2,200 Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.6,270 6,000 4,800 4,800 6,000 2. 200 Data Not Available Data Not Available Data Not Available Data Not Available 3.Data Not Available Data Not Available 1,849 2,000 2,000 * This measure was discontinued during FY 2014/15. ** New measure effective FY 2015/16. Number of stormwater inspections:** Number of volunteers participating in clean-up activities to remove debris from entering creeks:* Number of Los Gatos curb and parking lot miles swept annually: Prevent street debris from entering the storm drain system. a. Number of cubic yards of debris removed annually: D –242 D –243 Parks & Public Works Department ASSESSMENT DISTRICTS FUNDS 231 – 236 ASSESSMENT DISTRICT PURPOSE In the early 1990s, the Town formed six Landscape and Lighting District Funds with the written consent of all property owners within the boundaries of the districts. There are two Landscape and Lighting Districts, which cover six neighborhood areas. The districts are funded through tax assessments to reimburse the Town for the payment of water and electricity; district improvements and upgrades; and the regular maintenance of trees, landscaping, trails, irrigation systems, and lighting. There are six program funds that have been established to maintain these neighborhood areas. The Landscape and Lighting Districts are exempt from Proposition 218 requirements requiring a 2/3 majority approval, unless the assessments are increased. Section 5 of Proposition 218 provides that the measure does not apply to assessments existing on November 1996 if the assessments were “imposed pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment was initially imposed.” As long as the assessments were imposed by request or with the consent of all the property owners, the Town Attorney is of the opinion that this provision has been met, even without a formal petition. Consequently, the Town is not required to conduct an election of the property owners unless the assessment is increased. The fund balances for each of the assessment districts has proven to be adequate to fund routine maintenance needs; however, in previous years when maintenance requirements for large repairs have arisen, the Town has been required to step in to offset these one-time costs. The table on the next page provides an overview of the annual assessments. D –244  PARKS & PUBLIC WORKS DEPARTMENT  Landscape & Lighting Districts Number Rate in effect of Parcel Total prior to Fund #Assessment Districts Parcels Assessment Assessment Prop 218 231 Blackwell Drive 5 632$ 3,160$ Yes 232 Kennedy Meadows 15 685 10,275$ Yes 233 Gemini Court 18 230 4,140 Yes 234 Santa Rosa 15 300 4,500 Yes 235 Vasona Heights 33 295 9,735 Yes 236 Hillbrook 34 50 5,950 Yes Total Landscape & Lighting Assessment:37,760$ Fiscal Year 2017/18 Annual Special District Assessments 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 149,853 169,266 180,216 185,342 185,342 197,252 Total Beginning Fund Balance 149,853 169,266 180,216 185,342 185,342 197,252 REVENUES Property Tax Assessments 38,143 37,723 28,097 37,775 37,775 38,220 Interest 3,222 (839) 1,414 641 641 641 Other Revenues 36 17 13 - - - Total Revenues 41,401 36,901 29,524 38,416 38,416 38,861 TOTAL SOURCE OF FUNDS 191,254$ 206,167$ 209,740$ 223,758$ 223,758$ 236,113$ EXPENDITURES Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 17,068 21,031 19,478 22,050 21,586 22,626 TOTAL EXPENDITURES 17,068$ 21,031$ 19,478$ 22,050$ 21,586$ 22,626$ Transfers Out Transfer to General Fund 4,920 4,920 4,920 4,920 4,920 4,920 Total Transfers Out 4,920 4,920 4,920 4,920 4,920 4,920 Total Expenditures & Transfers Out 21,988 25,951 24,398 26,970 26,506 27,546 Ending Fund Balance Designated - - - - - - Undesignated 169,266 180,216 185,342 196,788 197,252 208,567 Total Ending Fund Balance 169,266 180,216 185,342 196,788 197,252 208,567 TOTAL USE OF FUNDS 191,254$ 206,167$ 209,740$ 223,758$ 223,758$ 236,113$ DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES D –245 Parks & Public Works Department BLACKWELL DRIVE ASSESSMENT DISTRICT FUND 231 FUND PURPOSE This assessment district incorporates five homes and a median island along Blackwell Drive at National Avenue constructed as part of Tract 8306, Blackwell Development. Assessments to maintain the landscaping and irrigation in the median island and for street light maintenance on National Avenue remain constant for the five parcels at $632 each annually. The median island landscaping and irrigation are maintained by contract. The street trees and lighting are also part of the district. The contractor clears trash and weeds from the median island biweekly. Landscaping plants and irrigation are replaced and repaired as necessary. BUDGET OVERVIEW During FY 2017/18, maintenance expenditures are anticipated to remain constant. A portion of the fund balance surplus will be recommended for use for improvements such as drought tolerant plants, pruning, and renovation of the irrigation system. D –246  PARKS & PUBLIC WORKS DEPARTMENT  Blackwell Drive Assessment District 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 6,623 7,522 8,648 10,231 10,231 11,491 Total Beginning Fund Balance 6,623 7,522 8,648 10,231 10,231 11,491 Revenues Property Tax Assessments 3,160 3,160 3,160 3,160 3,160 3,160 Interest 150 (47) 73 50 50 50 Other Revenues - - - - - - Total Revenues 3,310 3,113 3,233 3,210 3,210 3,210 TOTAL SOURCE OF FUNDS 9,933$ 10,635$ 11,881$ 13,441$ 13,441$ 14,701$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 1,951 1,527 1,190 1,892 1,490 1,892 Fixed Asset - - - 7,500 - 7,500 Total Expenditures 1,951 1,527 1,190 9,392 1,490 9,392 Transfers Out Transfer to General Fund 460 460 460 460 460 460 Total Transfers Out 460 460 460 460 460 460 Total Expenditures & Transfers Out 2,411 1,987 1,650 9,852 1,950 9,852 Ending Fund Balance Designated - - - - - - Undesignated 7,522 8,648 10,231 3,589 11,491 4,849 Total Ending Fund Balance 7,522 8,648 10,231 3,589 11,491 4,849 TOTAL USE OF FUNDS 9,473$ 10,175$ 11,421$ 12,981$ 12,981$ 14,241$ STATEMENT OF SOURCE AND USE OF FUNDS D –247 Parks & Public Works Department KENNEDY MEADOWS ASSESSMENT DISTRICT FUND 232 FUND PURPOSE The Kennedy Meadows Assessment District consists of 8 acres of open space area surrounding 15 homes. The open space area contains a paved trail, wetlands area, and a portion of Ross Creek. Streetlights on Forrester Court and Kennedy Court are also maintained by the district. Annual assessments for district upkeep remain constant at $685 per parcel. As part of the development of the subdivision, this district was required by the Army Corps of Engineers to reinstate the open space riparian and wetlands area back into its natural habitat under a ten-year plan, which ended June 30, 2005. The trees, landscaping, irrigation system, trail, and streetlights within the open space area are maintained by contract. The district, including the paved trail, is cleaned and cleared of trash biweekly. Irrigation repair and tree replacement are completed as necessary. BUDGET OVERVIEW During FY 2017/18, maintenance expenditures are anticipated to remain constant. The fund balance surplus is held for current or future repair/replacement costs related to the median island irrigation system or streetlights. In FY 2015/16 The Town Council directed staff to lower the assessment to $0 for the FY 2015/16 budget year for the Kennedy Meadow assessment district as the fund balance for the fund was sufficient to cover the associated maintenance costs. The assessment resumed at the previous assessment level in FY 2016/17, and will continue in FY 2017/18. A portion of the fund balance surplus was approved for use in FY 2015/16, and will carry into FY 2017/18. The approved project includes repairing and resurfacing the pathways and renovating D –248  PARKS & PUBLIC WORKS DEPARTMENT  Kennedy Meadows Assessment District the pedestrian bridge across Ross Creek. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 34,836 41,411 48,152 40,098 40,098 41,622 Total Beginning Fund Balance 34,836 41,411 48,152 40,098 40,098 41,622 Revenues Property Tax Assessments 10,378 10,290 - 10,290 10,290 10,275 Interest 754 (201) 346 47 47 47 Other Revenues - - - - - - Total Revenues 11,132 10,089 346 10,337 10,337 10,322 TOTAL SOURCE OF FUNDS 45,968$ 51,500$ 48,498$ 50,435$ 50,435$ 51,944$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 3,047 1,838 6,890 7,124 7,303 7,124 Fixed Assets - - - - - 30,000 Total Expenditures 3,047 1,838 6,890 7,124 7,303 37,124 Transfers Out Transfer to General Fund 1,510 1,510 1,510 1,510 1,510 1,510 Total Transfers Out 1,510 1,510 1,510 1,510 1,510 1,510 Total Expenditures & Transfers Out 4,557 3,348 8,400 8,634 8,813 38,634 Ending Fund Balance Designated - - - - - - Undesignated 41,411 48,152 40,098 41,801 41,622 13,310 Total Ending Fund Balance 41,411 48,152 40,098 41,801 41,622 13,310 TOTAL USE OF FUNDS 44,458$ 49,990$ 46,988$ 48,925$ 48,925$ 50,434$ STATEMENT OF SOURCE AND USE OF FUNDS D –249 Parks & Public Works Department GEMINI COURT ASSESSMENT DISTRICT FUND 233 FUND PURPOSE This assessment district, located on Blossom Hill Road and Gemini Court, is made up of 18 residences with a public right-of-way within the boundaries of the Gemini subdivision, Tract No. 8439. The assessment district provides for the maintenance of trees, landscaping, irrigation systems, lighting, sound wall, and fences along the walkway. Landscaping and irrigation are maintained by contract. The contractor clears trash and weeds in the median island biweekly. Landscaping plants and irrigation are replaced and repaired as necessary. Annual assessments remain constant for the 18 parcels at $230 each. BUDGET OVERVIEW During FY 2017/18, maintenance expenditures are anticipated to remain constant. A portion of the fund balance surplus will be recommended for improvements such as irrigation, tree work, lighting repair, landscaping, and repainting the sound wall. D –250  PARKS & PUBLIC WORKS DEPARTMENT  Gemini Court Assessment District 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 17,038 19,782 16,951 20,395 20,395 22,881 Total Beginning Fund Balance 17,038 19,782 16,951 20,395 20,395 22,881 Revenues Property Tax Assessments 4,201 4,047 4,704 4,140 4,140 4,600 Interest 377 (111) 133 47 47 47 Other Revenues 17 - 13 - - - Total Revenues 4,595 3,936 4,850 4,187 4,187 4,647 TOTAL SOURCE OF FUNDS 21,633$ 23,718$ 21,801$ 24,582$ 24,582$ 27,528$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 1,241 6,157 796 1,091 1,091 1,091 Fixed Assets - - - 10,000 - 10,000 Total Expenditures 1,241 6,157 796 11,091 1,091 11,091 Transfers Out Transfer to General Fund 610 610 610 610 610 610 Total Transfers Out 610 610 610 610 610 610 Total Expenditures & Transfers Out 1,851 6,767 1,406 11,701 1,701 11,701 Ending Fund Balance Designated - - - - - - Undesignated 19,782 16,951 20,395 12,881 22,881 15,827 Total Ending Fund Balance 19,782 16,951 20,395 12,881 22,881 15,827 TOTAL USE OF FUNDS 21,023$ 23,108$ 21,191$ 23,972$ 23,972$ 26,918$ STATEMENT OF SOURCE AND USE OF FUNDS D –251 Parks & Public Works Department SANTA ROSA HEIGHTS ASSESSMENT DISTRICT FUND 234 FUND PURPOSE This assessment district provides maintenance and upkeep within designated Open Space Areas A, B, C, and D of Tract No. 8400, Santa Rosa Heights Subdivision. There are 15 residences in this district. The open space area to be maintained by the Town lies north of Shannon Road up to the ridgeline of Blossom Hill Road, adjacent to the subdivision. This area includes a pedestrian/equestrian trail through the subdivision from Shannon Road to Belgatos Park, street trees, and lighting. The trail is pruned, sprayed, and cleared of trash biweekly by the contractor. Annual assessments for the fifteen parcels were decreased from $540 each, to $300 each, effective FY 2006/07. BUDGET OVERVIEW During FY 2017/18, maintenance expenditures are anticipated to remain constant. A portion of the fund balance surplus will be recommended for improvements such as brushing, tree work, and repairs to the various trails and retaining walls in the district. D –252  PARKS & PUBLIC WORKS DEPARTMENT  Santa Rosa Heights Assessment District 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 55,237 `56,885 58,084 60,129 60,129 61,674 Total Beginning Fund Balance 55,237 56,885 58,084 60,129 60,129 61,674 Revenues Property Tax Assessments 4,380 4,500 4,530 4,500 4,500 4,500 Interest 1,105 (211) 470 300 300 300 Other Revenues - 17 - - - - Total Revenues 5,485 4,306 5,000 4,800 4,800 4,800 TOTAL SOURCE OF FUNDS 60,722$ 61,191$ 63,084$ 64,929$ 64,929$ 66,474$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 3,177 2,447 2,295 2,595 2,595 2,595 Fixed Assets - - - 10,000 - 10,000 Total Expenditures 3,177 2,447 2,295 12,595 2,595 12,595 Transfers Out Transfer to General Fund 660 660 660 660 660 660 Total Transfers Out 660 660 660 660 660 660 Total Expenditures & Transfers Out 3,837 3,107 2,955 13,255 3,255 13,255 Ending Fund Balance Designated - - - - - - Undesignated 56,885 58,084 60,129 51,674 61,674 53,219 Total Ending Fund Balance 56,885 58,084 60,129 51,674 61,674 53,219 TOTAL USE OF FUNDS 60,062$ 60,531$ 62,424$ 64,269$ 64,269$ 65,814$ STATEMENT OF SOURCE AND USE OF FUNDS D –253 Parks & Public Works Department VASONA HEIGHTS ASSESSMENT DISTRICT FUND 235 FUND PURPOSE This assessment district is adjacent to Blossom Hill and Roberts Roads, with open space running between the subdivision and the Los Gatos Creek Trail. The district was created to provide maintenance and upkeep within the designated Open Space Areas A, B, and C of Tract No. 8280, of the Vasona Heights Subdivision. All 32 residences are assessed an annual charge of $295 per parcel, continuing the decrease in original property assessments as agreed to by the property owners and the Town Council in FY 2001/02. The district upkeep includes, trees, landscaping, irrigation systems, trail, emergency access, and a retaining wall along Blossom Hill Road. The open space areas are maintained by contract, with cleanup, trash control, irrigation maintenance, and landscape maintenance completed biweekly. BUDGET OVERVIEW During FY 2017/18 maintenance expenditures are anticipated to remain constant. A portion of the fund balance surplus will be recommended for improvements such as landscaping, irrigation, and pathway lighting. D –254  PARKS & PUBLIC WORKS DEPARTMENT  Vasona Heights Assessment District 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 29,147 34,497 39,563 42,599 42,599 44,657 Total Beginning Fund Balance 29,147 34,497 39,563 42,599 42,599 44,657 Revenues Property Tax Assessments 9,986 9,750 9,735 9,735 9,735 9,735 Interest 651 (180) 319 150 150 150 Other Revenues 19 - - - - - Total Revenues 10,656 9,570 10,054 9,885 9,885 9,885 TOTAL SOURCE OF FUNDS 39,803$ 44,067$ 49,617$ 52,484$ 52,484$ 54,542$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 3,876 3,074 5,588 7,214 6,397 7,214 Fixed Assets - - - 10,000 - 10,000 Total Expenditures 3,876 3,074 5,588 17,214 6,397 17,214 Transfers Out Transfer to General Fund 1,430 1,430 1,430 1,430 1,430 1,430 Total Transfers Out 1,430 1,430 1,430 1,430 1,430 1,430 Total Expenditures & Transfers Out 5,306 4,504 7,018 18,644 7,827 18,644 Ending Fund Balance Designated - - - - - - Undesignated 34,497 39,563 42,599 33,840 44,657 35,898 Total Ending Fund Balance 34,497 39,563 42,599 33,840 44,657 35,898 TOTAL USE OF FUNDS 38,373$ 42,637$ 48,187$ 51,054$ 51,054$ 53,112$ STATEMENT OF SOURCE AND USE OF FUNDS D –255 Parks & Public Works Department HILLBROOK DRIVE ASSESSMENT DISTRICT FUND 236 FUND PURPOSE This assessment district, encompassing the designated open space area within Tract No. 3026 at the corner of Blossom Hill Road and Hillbrook Drive, provides maintenance services for the trees, landscaping, irrigation system, and hardscape for the improved area in parcel #523-11-28 of the Hillbrook Benefit Zone. Annual assessments for the thirty-four parcels were increased from $50 to $175 each, effective FY 2010/11. The district comprises 34 residences and a small park of approximately 0.26 acres. The landscape contract for this assessment district includes maintenance of the lawn, trees, shrubs, and irrigation system. The park is cleared of trash, mowed, and cleaned weekly. BUDGET OVERVIEW During FY 2017/18, maintenance expenditures are anticipated to remain constant. A portion of the fund balance surplus will be recommended for improvements such as benches, turf replacement, and drought-resistant landscaping. D –256  PARKS & PUBLIC WORKS DEPARTMENT  Hillbrook Drive Assessment District 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignatged 6,971 9,168 8,817 11,889 11,889 14,926 Total Beginning Fund Balance 6,971 9,168 8,817 11,889 11,889 14,926 Revenues Property Tax Assessments 6,038 5,976 5,968 5,950 5,950 5,950 Interest 185 (89) 73 47 47 47 Other Revenues - - - - - - Total Revenues 6,223 5,887 6,041 5,997 5,997 5,997 TOTAL SOURCE OF FUNDS 13,194$ 15,055$ 14,858$ 17,886$ 17,886$ 20,923$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 3,776 5,988 2,719 2,134 2,710 2,710 Fixed Assets - - - 15,000 - 15,000 Total Expenditures 3,776 5,988 2,719 17,134 2,710 17,710 Transfers Out Transfer to General Fund 250 250 250 250 250 250 Total Transfers Out 250 250 250 250 250 250 Total Expenditures & Transfers Out 4,026 6,238 2,969 17,384 2,960 17,960 Ending Fund Balance Designated - - - - - - Undesignated 9,168 8,817 11,889 502 14,926 2,963 Total Ending Fund Balance 9,168 8,817 11,889 502 14,926 2,963 TOTAL USE OF FUNDS 12,944$ 14,805$ 14,608$ 17,636$ 17,636$ 20,673$ STATEMENT OF SOURCE AND USE OF FUNDS D – 257 Library Department DEPARTMENT PURPOSE The Los Gatos Library is the Town’s primary provider of information services for the community. The Library exists to foster curiosity and community connection and strives to be at the heart of an engaged and vibrant community. The Library accomplishes these outcomes through: • Creating Community Connections by providing a welcoming space, access to library services beyond the building, forming partnerships with local organizations, providing programming for all ages, and providing ample access to library resources. • Building the Next Generation Library User by focusing on early literacy as well as programs, collections, and services for babies, school-age children, teens, and their parents/caregivers. • Embracing Local History by partnering with NUMU and local schools, providing ample access to historical materials, and providing quality volunteer programs and trainings. • Enhancing Collections and Technology by continually assessing library use, trends, and new technologies. • Engaging the Library Staff Team by focusing on staff development, training opportunities, sharing ideas at every level, and collaborating with our local consortiums, state organizations and national organizations. BUDGET OVERVIEW The FY 2017/18 Library budget provides moderate one-time expenditures in both Youth and Adult collections that are less than last year’s investments on collections. This funding will be used toward electronic access of materials, including expanding the eBooks, streaming services, and downloadable audiobook collections. Expansion of digital services furthers the goal of providing access beyond the building and meeting customer demand. All public computers in the Library were replaced during the last fiscal year with new computers. During the replacement process, the Library Technology Lab was retrofitted into a more flexible space for programming and collaboration. The Library also purchased a Laptop Anytime vending machine to allow the community to find their perfect space to work within the Library. D – 258  LIBRARY DEPARTMENT  The FY 2017/18 Library budget includes increases in Circulation/System Administration costs with increased costs of software licenses, maintenance of the CENIC fiber line 1GB network, added eResources, and Summer Reading/Be A Book Family software. There is anticipated decrease in need for IT consulting with the Library’s new computers. During FY 2017/18, the Library will continue to provide excellent customer service and make the best use of Library resources. The Library Department has been exploring different approaches to supporting the teen use of the Library after school. For this reason, the budget includes 1,040 temporary staff hours for Library Teen Services Specialist to replace the Community Service Officer Intern. The FY 2017/18 budget includes increases in salary and benefit costs attributed to negotiated salary raises, and higher benefit and CalPERS pension rates. It also includes a one-time approval in increase of on-call Librarian hours. The Library Department budget consists of the Library Administration, Adult Services, Youth Services, Acquisitions and Cataloging, and Circulation/System Administrative Programs, as well as five Trust Funds: Library Trust Fund, History Project Trust Fund, Clelles Ness Trust Fund, Susan McClendon Trust Fund, and the Barbara Jones Cassin Trust Fund. D – 259  LIBRARY DEPARTMENT  ACCOMPLISHMENTS Core Goals Accomplishments Good Governance Ensure responsive, accountable and collaborate government • Showcased library resources in multiple formats including print, media and social media. • Continue to work with NUMU to highlight Los Gatos history. • Continue to coordinate training for all collection development librarians. • Continued adaptive communication, customer service, and other training. • Continued to participate in staff trades with neighboring libraries for training and efficiency ideas. Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational and individual enrichment • Continued collaboration with LGHS to encourage the use of eBook self- publishing tools by the local community. • Continued “Be a Book Family”—a program focused on building literacy skills and family connections from birth through the teen years. This program acknowledges the importance of parents playing an active role in their child’s reading, reading as a family activity, and reading as a social activity. • Continued to incorporate new early learning technologies to enhance storytimes and create multi-media, multi-sensory experiences. • The Library accomplished the Council’s priority to obtain a Community Designation. Continued to provide Stay-and-Play time, immediately following storytimes, to facilitate socialization skills and relaxed playtime for our youngest library users and their caregivers. • Continued ongoing and special programs for library patrons, including after-school activities, storytimes, and adult programs. • Continued online and mobile platforms for the Library’s Summer Reading and Year-Round Programs to allow reading in multiple modes. • Continued to provide local history volunteer trainings and a volunteer appreciation event for all Library volunteers. • Continued a homebound book delivery service with the collaboration of the Los Gatos Monte Sereno Police Department’s Volunteers in Policing program. • Continued to collaborate with the Santa Clara Valley Water District and the Parks and Public Works Department to be a drought supply distribution and information center. • Continued the evening community storytime program, taking Library storytimes out to local restaurants. • Provided computer assistance to seniors and other who are learning how to do internet research, complete online job applications, and other functions. • Provided 19 outreach programs for bike events. D – 260  LIBRARY DEPARTMENT  ACCOMPLISHMENTS Core Goals Accomplishments Public Safety Ensure public safety through proactive community policing, affective emergency response, and community-wide emergency preparedness • Integrated Community Services Officer Intern into ongoing and special programs for library patrons, including after-school activities, storytimes, and adult programs. • Engaged substantially higher number of regular teen patrons, while at the same time minimizing the number of teens asked to leave the library for behavioral concerns. • Hosted 9-1-1 call training for all Library staff, with the Los Gatos Monte Sereno Police Department. • Collaborated with the Los Gatos Monte Sereno Police Department, local faith community and the Pacific Library Partnership to provide staff training on working with mentally ill and homeless library patrons. D – 261  LIBRARY DEPARTMENT  The above program totals reflect General Fund programs. Additional Library Department programs are reflected in separate Trust Funds following the General Fund portion of this section. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Intergovernmental Revenues 14,662$ 4,062$ 12,228$ -$ -$ -$ Service Charge - - - - - - Fines & Forfeitures 45,354 46,616 39,232 45,000 41,000 37,500 Other Revenues 6,421 6,507 6,960 6,960 6,960 - TOTAL REVENUES 66,437$ 57,185$ 58,420$ 51,960$ 47,960$ 37,500$ Transfers In Transfers In from Trust(s)- - 35,000 35,000 35,000 35,000 Transfers In from General Fund - - - - - - Total Transfers In - - 35,000 35,000 35,000 35,000 TOTAL REVENUES & TRANSFERS IN 66,437$ 57,185$ 93,420$ 86,960$ 82,960$ 72,500$ EXPENDITURES Salaries and Benefits 1,314,991$ 1,436,703$ 1,490,743$ 1,751,750$ 1,558,435$ 1,824,143$ Operating Expenditures 248,828 289,065 291,703 350,174 338,374 351,496 Fixed Assets - - - - - - Internal Service Charges 567,620 543,075 549,821 589,924 534,665 605,379 TOTAL EXPENDITURES 2,131,439$ 2,268,843$ 2,332,267$ 2,691,848$ 2,431,474$ 2,781,018$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Adopted PROGRAM Administration 318,819$ 328,008$ 396,063$ 482,926$ 410,823$ 499,211$ Adult Services 503,080 608,632 597,085 654,119 620,913 676,974 Youth Services 424,874 458,744 468,379 527,602 501,490 576,672 Acquisitions & Cataloging 170,905 155,622 117,444 120,796 119,584 124,410 Circulation Services 713,761 717,837 753,296 906,405 778,664 903,751 TOTAL EXPENDITURES 2,131,439$ 2,268,843$ 2,332,267$ 2,691,848$ 2,431,474$ 2,781,018$ DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES D – 262  LIBRARY DEPARTMENT  Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 General Fund Funded Funded Funded Funded Proposed Library Director - - - 1.00 1.00 Town Librarian 2.00 2.00 2.00 - - Division Manager - - - 2.00 2.00 Librarian 2.55 3.55 3.75 3.00 3.00 Library Technology Specialist 1.00 1.00 1.00 1.00 1.00 Library Assistant 1.50 1.00 1.00 1.00 1.00 Library Technician 0.75 0.75 0.75 0.75 0.75 Customer Service Supervisor 1.00 1.00 1.00 1.00 1.00 Customer Service Specialist 1.50 1.50 1.50 1.50 1.50 Sr Library Page - - - 1.00 1.00 Total General Fund FTEs 10.30 10.80 11.00 12.25 12.25 Temporary Staff Hours Librarian 556 556 556 1,112 1,112 Library Clerks 1,050 1,050 1,050 1,050 1,300 Library Pages 7,591 7,591 4,627 6,344 6,344 Senior Library Pages - - 2,964 - - CSO Intern 1,040 1,040 1,040 1,040 - Library Teen Services Specialist - - - - 1,040 Total Annual Hours 10,237 10,237 10,237 9,546 9,796 DEPARTMENT STAFFING D – 263 Library Department LIBRARY ADMINISTRATION PROGRAM 7101 PROGRAM PURPOSE The Library Administration Program provides staff support to ensure the development of quality and cost-effective library services that are responsive to community needs. Library Administration’s core services are to provide administrative and managerial oversight for programs and services, clerical and administrative assistance for day-to-day operations, personnel management, purchasing and physical plant maintenance, fiscal management and budget preparation, and support for the Library Board, Friends of the Los Gatos Library Board, and the Community and Senior Services Commission. BUDGET OVERVIEW The FY 2017/18 Administration budget reflects continued enhanced services within the Library building in an effort to provide the best customer experience and the best value for the community. The Library Administration Program will continue to focus on maximizing the efficiency of the Library building and handling the workload caused by the sustained increase in circulation, both print and electronic, and Library visitors since the opening of the Library five years ago. Customer service and community engagement remain a high priority, as well as ensuring all Library services and programs align with the Library Strategic Plan. Administration staff will continue to work collaboratively with the Friends of Los Gatos Library, a nonprofit 501(c)(3) organization. In addition, Library staff will continue to reach out to improve partnerships and outreach within our community. D – 264  LIBRARY DEPARTMENT  Library Administration 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Intergovernmental Revenue 30$ -$ -$ -$ -$ -$ Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues 6,421 6,507 6,950 6,960 6,960 - TOTAL REVENUES 6,451$ 6,507$ 6,950$ 6,960$ 6,960$ -$ Transfers In Transfers In from Trust(s)- - - - - - Total Transfers In - - - - - - TOTAL REVENUES & TRANSFERS IN 6,451$ 6,507$ 6,950$ 6,960$ 6,960$ -$ EXPENDITURES Salaries and Benefits 186,407$ 201,150$ 264,321$ 336,704$ 286,905$ 343,190$ Operating Expenditures 32,425 31,653 33,242 40,494 28,694 47,400 Fixed Assets - - - - - - Internal Service Charges 99,987 95,205 98,500 105,728 95,224 108,621 TOTAL EXPENDITURES 318,819$ 328,008$ 396,063$ 482,926$ 410,823$ 499,211$ SUMMARY OF REVENUES AND EXPENDITURES D – 265  LIBRARY DEPARTMENT  Library Administration FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable and collaborate government Library Marketing Utilize social media, such as Facebook and Instagram to promote library services and programs. Continue Chartreuse Caboose bike-mobile Library services to the community, focusing on youth and seniors who have limited ability to get to the library building. Ensure participation in Town-sponsored events and work dynamically with other Town departments. Museum Library Collaboration Continue working with the New Museum of Los Gatos (NUMU) to catalog and share resources related to local history and collaborate to provide local history programs for the community. Quality Public Infrastructure Maintain the condition and availability of public facilities, transportation systems, and other public infrastructure Furniture Replacement Replace or add new furniture in the Children’s Room to meet the need for seating in the afternoon. Replace chairs throughout the Library as needed due to wear and tear. D – 266  LIBRARY DEPARTMENT  Library Administration KEY PROGRAM SERVICES • Administers and supervises four operating programs in the Department. • Provides oversight of day-to-day operations and scheduling. • Prepares and monitors Library Department budget. • Provides staff support to the Town Library Board, Community and Senior Services Commission, and Friends of the Library meetings, programs, and activities. • Collaborates with area libraries by serving on the Pacific Libraries Partnership Administrative Council. • Collaborates with libraries nationwide by serving on national committees. • Increases public awareness of Town Library services and programs through effective public relations, marketing of Library services, and periodically presenting programs at Library conferences. • Provides oversight of Library staff training and development. • Provides oversight and direction for information technology and systems administration developments. D – 267  LIBRARY DEPARTMENT  Library Administration Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Library Director - - - 1.00 1.00 Town Librarian 1.00 1.00 1.00 - - Division Manager - - - 0.40 0.40 Library Technician 0.25 0.25 0.25 0.25 0.25 Total Administration FTEs 1.25 1.25 1.25 1.65 1.65 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Funded Funded Funded Funded Proposed CSO Intern 1,040 1,040 1,040 1,040 - Library Teen Services Specialist - - - - 1,040 Total Annual Hours 1,040 1,040 1,040 1,040 1,040 ADMINISTRATION PROGRAM STAFFING D – 268  LIBRARY DEPARTMENT  Library Administration Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of customers stating the Library is a significant or very significant part of their community experience:* Data Not Available 96%93%93%93% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.368,442 305,373 323,979 315,000 315,000 2.Data Not Available 2496 5,781 5,781 6,000 3.Data Not Available 1,016,586 967,474 950,000 950,000 4.Data Not Available Data Not Available 9,414 15,911 20,000 *This measure was moved from Circulation and System Administration program during FY 2015/16 ** New measure effective FY 2015/16, historical data provided when available. Beginning in FY 2015/16 this figure includes Friends of the Library volunteer hours in the sorting room and the bookstore. *** New measure effective FY 2015/16, includes likes and views on Facebook, likes and views on Instagram, and reviews on Yelp. Volunteer hours contributed:** Virtual visits to the Library:** (Virtual Visits to the Library include number of hits to Library site through Civic Plus and direct hits to the Library Catalog) Provide the space, opportunity and support for the Library to be at the heart of an engaged community. Door Count: * Social media interactions:*** D – 269 Library Department ADULT SERVICES PROGRAM 7201 PROGRAM PURPOSE The Adult Services Program supports library services for adults 18 years of age and older. Adult Services anticipates and meets community information needs, providing opportunities for lifelong learning. The Adult Services Program’s core services are to provide reference services to all clientele, reader’s advisory services, instruction in the use of computer and electronic resources, outreach services in the community, and management of collections, including the local history collection. BUDGET OVERVIEW The FY 2017/18 Adult Services Program budget reflects a decrease in collection budget for print and electronic materials, as compared to FY 2016/17. The Library continues to focus on creating community connections through partnerships with NUMU and local businesses, and through programming such as Homebound Book Delivery and outreach services offered from the Chartreuse Caboose, the Library’s bike mobile. The Library will enhance collections and technology with services that are available online 24/7, including streaming content. The Library will continue to evaluate and curate a meaningful print collection using data from collection management software, in response to changing community needs. D – 270  LIBRARY DEPARTMENT  Adult Services 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Intergovernmental Revenue 2,000$ -$ 4,520$ -$ -$ -$ Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES 2,000$ -$ 4,520$ -$ -$ -$ Transfers In Transfers In from Trust(s)- - 9,836 9,836 9,836 9,836 Total Transfers In - - 9,836 9,836 9,836 9,836 TOTAL REVENUES & TRANSFERS IN 2,000$ -$ 14,356$ 9,836$ 9,836$ 9,836$ EXPENDITURES Salaries and Benefits 326,767$ 370,838$ 354,079$ 384,395$ 368,161$ 420,234$ Operating Expenditures 69,682 135,000 139,543 162,038 157,038 145,000 Fixed Assets - - - - - - Internal Service Charges 106,631 102,794 103,463 107,686 95,714 111,740 TOTAL EXPENDITURES 503,080$ 608,632$ 597,085$ 654,119$ 620,913$ 676,974$ SUMMARY OF REVENUES AND EXPENDITURES D – 271  LIBRARY DEPARTMENT  Adult Services FY 2017/18 KEY PROJECTS KEY PROGRAM SERVICES Meeting Information Needs • Provides ready reference, reader’s advisory, information literacy, and roaming reference services in person and virtually through chat or online resources. • Maintains vibrant collections in-house and online. • Responds to patrons’ suggestions for materials to be included in the collection. • Enriches the local community by being a premier repository for local history materials. Information Technologies and Training • Continues to use online and social media counterparts (e.g., Facebook, Instagram, Goodreads, Wowbrary and NextReads) to offer services traditionally available only within the Library’s walls. • Provides access to the Internet and training for the public in basic searching and navigational skills, and more specialized skills such as genealogy searches. • Maintains a Library mobile application for use with smartphones and mobile devices. Core Goals Key Projects Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment Outreach Programming Continue to refine and develop best practices for outreach programming. Target community partners that complement our programming guidelines, feature diverse offerings, and meet other criteria. We will continue to build a collection of partners that can help us deliver successful collaborative services to the community. Technology Reimagine technology programming with new laptops and flexible Technology Lab space. Focus on small group interactions, such a one-on- one tech tutoring, small classes on common technology issues, and drop- in sessions for our e-resources, with the goal of diminishing the digital divide in our community. Evaluate E-Resources Complete transition of ebook and audiobook resources from Overdrive to Cloud Library, and work to help patrons embrace utilizing Cloud Library. We will study the effectiveness of Hoopla and Flipster, and consider the implications of those services for our in-house magazines, DVD and music collections. Staff will continue to highlight these resources for our patrons, helping them use and understand the product that best serves their needs. D – 272  LIBRARY DEPARTMENT  Adult Services Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Town Librarian 0.50 0.50 0.50 - - Division Manager - - - 0.30 0.30 Librarian 0.90 1.40 1.50 1.50 1.50 Library Technology Specialist 0.10 0.10 0.10 0.10 0.10 Library Assistant 0.85 0.60 0.60 0.60 0.60 Library Technician 0.15 0.15 0.15 0.15 0.15 Sr Library Page - - - 0.60 0.60 Total Adult Services FTEs 2.50 2.75 2.85 3.25 3.25 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Funded Funded Funded Funded Proposed Librarian 556 556 556 556 556 Librarian Temp - - - - 125 Total Annual Hours 556 556 556 556 681 ADULT SERVICES PROGRAM STAFFING D – 273  LIBRARY DEPARTMENT  Adult Services Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of collection evaluated and updated:30%75%Measure Discontinued Measure Discontinued Measure Discontinued b.Percentage of collection that requires evaluation:*Data Not Available Data Not Available 50%47%40% c.Percentage of available technology training sessions used by public: 100%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 2. a. Percentage of customers rating Library programs as good/excellent:** Data Not Available 95%92%90%90% 3. a.Percentage of customers rating staff interactions as good/excellent: 100%100%96%93%93% b.Percentage of public contacts received by library that are online vs. through the doors: 68%70%70%70%70% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.18,810 15,662 13,163 11,646 12,000 2.0.65 0.65 Measure Discontinued Measure Discontinued Measure Discontinued 3.22,329 27,250 See Circulation See Circulation See Circulation 4.Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 5.Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 6.54 54 54 54 54 7.53,181 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 8.Data Not Available 45 86 137 150 9.Data Not Available 923 1,032 1,780 2,000 10.Data Not Available 0 16 18 24 11.Data Not Available 0 1,195 660 800 * This measure was added in FY16/17 to replace "percentage of collection that is evaluated and updated" The new measure can be easily reported using Collection HQ. ** New measure effective FY 2015/16, historical data provided when available. *** This measure was moved to Circulation and System Administration during FY 2015/16. Number of adult programs offered:** Total attendance at adult programs:** Total number of adult outreach programs:** Total attendance at adult outreach programs:** Hours of service per week at adult services desk: Number of patrons using the Library's public access computers: Number of inter-library loans borrowed: Manage adult library collections to anticipate and meet community information needs. Provide a variety of programs throughout the year that foster curiosity and community connection. Assure delivery of quality service to customers. Reference questions per capita: Number of adult reference questions received: Number of inter-library loans loaned: Number of patrons' materials reserves processed:*** D – 274 D – 275 Library Department YOUTH SERVICES PROGRAM 7202 PROGRAM PURPOSE Youth Services supports youth of all ages (newborn babies through high school) and their families by providing age-appropriate programs, services, materials in support of education and current high-demand, high-interest materials in a variety of formats. Youth Services also creates welcoming environments for children, tweens, and teens that encourage their curiosity, imagination, creativity, and a permanent love of reading. Specialized programming encourages families and communities to read with the children in their lives to demonstrate a commitment to learning and an appreciation of youth. Distinctive programs are provided for children 0 to 14 years of age and teens from 13 to 17 years of age. The purpose of the Youth Services Program is to provide reference, reader’s advisory services, computer and electronic resources, youth collections management, a welcoming space, and a variety of programs throughout the year in the Library, at local schools, and in the community. BUDGET OVERVIEW The FY 2017/18 Youth Services budget reflects a decrease in collection budget for print and electronic materials, as compared to FY 2016/17. Staff will continue to target new and innovative concepts in program development with a focus on family reading. An improved online, interactive reading interface will continue to enhance and encourage family reading throughout the year. The Youth Services team will engage in outreach activities, serving the community in the schools and in partnership with local businesses. Families will enjoy new early learning technology in the Children’s room, with Osmo tablets and staff-customized Early Literacy Kid Stations (ELKS). Collection funding will to be used strategically, eliminating those materials of least use to ensure a well-rounded youth collection. Multiple formats, focusing on educational support as well as current high-demand, high-interest materials for children of all ability levels, will continue to be purchased. The Department will expand its connections with D – 276  LIBRARY DEPARTMENT  Youth Services schools, specifically working with Los Gatos High School to make student ID cards work as Library cards, and working with local elementary schools to get cards to first graders. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Intergovernmental Revenue -$ -$ -$ -$ -$ -$ Service Charges - - - - - - Fines & Forfeitures - - - - - - Other Revenues - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ Transfers In Transfers In from Trust(s)- - 14,064 14,066 14,066 14,066 Total Transfers In - - 14,064 14,066 14,066 14,066 TOTAL REVENUES & TRANSFERS IN -$ -$ 14,064$ 14,066$ 14,066$ 14,066$ EXPENDITURES Salaries and Benefits 273,869$ 314,950$ 316,777$ 357,229$ 337,466$ 405,311$ Operating Expenditures 46,904 43,582 50,060 63,518 68,518 59,980 Fixed Assets - - - - - - Internal Service Charges 104,101 100,212 101,542 106,855 95,506 111,381 TOTAL EXPENDITURES 424,874$ 458,744$ 468,379$ 527,602$ 501,490$ 576,672$ SUMMARY OF REVENUES AND EXPENDITURES D – 277  LIBRARY DEPARTMENT  Youth Services FY 2017/18 KEY PROJECTS Core Goals Key Projects Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment. Family Reading Continue to offer family programming that focuses on building literacy skills and family connections from birth through the teen years. Be a Book Family, the centerpiece of this effort, acknowledges the importance of parents playing an active role in their child’s reading, reading as a family activity, and reading as a social activity. Storytimes Regular storytimes will continue to incorporate new early learning technologies including multi-media and multi-sensory experiences. Stay-and-Play time, immediately following storytimes, will continue to be provided to facilitate socialization skills and relaxed playtime learning for our youngest library users. Offer storytime content, such as song, fingerplays, and booklists online, enabling families to engage with early literacy skills at home. STEAM Programming Provide early literacy technology to stimulate learning and creativity in the Children’s Room by offering Osmo tablets and ELKS. Encourage families to integrate technology into their learning while establishing healthy digital habits. Develop STEAM programming for school-aged visitors, hosted by Library Teen Volunteers, giving families a chance to engage in science and arts- based play and provide positive encounters with teen patrons. D – 278  LIBRARY DEPARTMENT  Youth Services FY 2017/18 KEY PROJECTS Core Goals Key Projects Civic Enrichment Foster opportunities for citizen involvement, and cultural, recreational, and individual enrichment. Teen Services Continue to build relationships with regular teen room patrons, in partnership with other Town Departments and high school staff, fostering developmental assets and strengthening community. Continue to offer specialized online reading programs in the summer, highlighting titles required for 9th graders at Los Gatos High. Offer regular passive programming in the Teen Room, such as Blackout Poetry, trivia, and our Name Raffle, allowing students to participate in programming casually, while still connecting with staff. Partner with Los Gatos High school to make student ID cards useable as Library cards. Develop more specialized volunteering responsibilities for teens, such as a Teen Tech Volunteering position and Books Together Volunteering positions, providing learning opportunities for teens and positive teen interactions for other Library patrons of all ages. KEY PROGRAM SERVICES Meeting information needs for children 0 to 17 years of age and their parents • Provides reference and reader’s advisory services. • Manages children’s and teens’ web pages. • Maintains vibrant and diverse collections for children, teens, teachers, and parents/caregivers. • Responds to patron suggestions for materials to be included in the collection. Providing programs to youth • Provides year-round programming for infants, toddlers, preschoolers, school-age children, teens, and families. • Plans and promotes year round reading and engagement program “Be a Book Family” to listeners from ages 0 to 5, readers from ages 5 to 12, and teen readers from ages 13 to 17. D – 279  LIBRARY DEPARTMENT  Youth Services KEY PROGRAM SERVICES Outreach to youth • Raises awareness of youth about collections, services, and programs available at the Library. • Responds to requests for field trips to the Library and Librarian visits to schools and community events. • Provides Library access via student ID cards for LGHS students, as part of the Student Success Initiative. Web Management • Designs and maintains the youth portions of the Library’s website. • Develops, evaluates and evolves early literacy technology stations, with Osmo tablets and ELKS. D – 280  LIBRARY DEPARTMENT  Youth Services Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Town Librarian 0.50 0.50 0.50 - - Division Manager - - - 0.50 0.50 Librarian 1.25 1.75 2.25 1.50 1.50 Library Assistant 0.65 0.40 0.40 0.40 0.40 Library Technician 0.10 0.10 0.10 0.10 0.10 Sr Library Page - - - 0.40 0.40 Total Youth Services FTEs 2.50 2.75 3.25 2.90 2.90 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Funded Funded Funded Funded Proposed CSO Interm 1,040 - - - - Librarian - - - 556 556 Librarian Temp - - - - 125 Total Annual Hours 1,040 - - 556 681 YOUTH SERVICES PROGRAM STAFFING D – 281  LIBRARY DEPARTMENT  Youth Services Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage agree/strongly agree that youth services programs enhance my child's development: 100%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued b. Percentage of customers rating youth programs as good/excellent:* Data Not Available 100%96%96%96% c. Percentage of request for outreach that are delivered: 95%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued d.Percentage of cards issued through organized class visits: 35%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 2. a.Percentage of customers rating interactions as good/excellent: 99%100%96%95%95% 3. a.Percentage of total circulation that is youth collections: 40%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued b.Percentage of collection evaluated and updated:30%95%Measure Discontinued Measure Discontinued Measure Discontinued c. Percentage of collection that requires evaluation:**Data Not Available Data Not Available 15%10%12% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.388 338 361 311 325 2.15,719 18,141 20,489 22,000 23,000 3.3 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 4. 15,912 19,337 18,806 12,959 15,000 5. 54 79 74 74 74 6.13,856 16,937 18,537 19,896 20,000 7.5.5 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 8.Number of youth outreach programs:*Data Not Available Data Not Available Data Not Available 11 20 9.Total attendance at youth outreach programs:*Data Not Available Data Not Available Data Not Available 1500 2000 * New measure effective FY 2015/16, historical data provided when available. ** This measure was added in FY16/17 to replace "percentage of collection that is evaluated and updated" The new measure can be easily reported using Collection HQ. Number of teens using library resources per year: Library usage per teen capita: Hours of public service per week at youth services desk: Total attendance at youth programs: Assure the delivery of quality service to youth customers. Manage youth library collections to anticipate and meet community information needs. Annual number of youth reference questions received: Program attendance per youth capita: Number of youth programs per year: Provide a variety of programs throughout the year that foster curiosity and community connection. D – 282 D – 283 Library Department ACQUISITIONS AND CATALOGING PROGRAM 7203 PROGRAM PURPOSE The Acquisitions and Cataloging Program provides customers with access to a broad range of up-to-date library materials and technology, and ensures customers have ready, user-friendly access to the collection. The Acquisitions and Cataloging Program’s core services are the creation and maintenance of an online catalog (available both in-house and virtually), collection maintenance, acquisition of all Library materials, and general support services. BUDGET OVERVIEW The Acquisitions and Cataloging Program’s FY 2017/18 budget reflects a status quo budget. Continued use of vendor preprocessing and vendor provided cataloging records has optimized efficiency in cataloging and almost eliminated the need to perform cataloging in-house. This has allowed staff to devote more time to direct customer service and value-added tasks such as promoting the collection to patrons. The Library continues to implement system enhancements, provide support, and expand print as well as downloadable eBooks and eAudiobooks collections. The Acquisitions and Cataloging Program will continue to refine and develop Los Gatos Library’s implementation of Koha open source software to efficiently integrate new items into the online catalog. D – 284  LIBRARY DEPARTMENT  Acquisitions and Cataloging FY 2017/18 KEY PROJECTS Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Library Operations The operations, collections, equipment, and staffing of the Department will continue to be evaluated to make the best use of staff and resources to best meet the needs of the community. The Library will be integrating the use of Electronic Data Interchange (EDI) to the Library ILS to streamline ordering, receiving materials, and processing invoices. KEY PROGRAM SERVICES • Maintains online catalog to assure customer access to Library materials. • Acquires Library materials. • Maintains Library collections, including shelving of materials. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Intergovernmental Revenue -$ -$ -$ -$ -$ -$ Service Charges - - - - - - Fines & Forfeitures 3,404 5,271 5,596 5,000 5,000 5,500 Other Revenues - - - - - - TOTAL REVENUES 3,404$ 5,271$ 5,596$ 5,000$ 5,000$ 5,500$ EXPENDITURES Salaries and Benefits 65,954$ 65,016$ 28,141$ 28,020$ 27,598$ 29,162$ Operating Expenditures 9,601 735 - - - - Fixed Assets - - - - - - Internal Service Charges 95,350 89,871 89,303 92,776 91,986 95,248 TOTAL EXPENDITURES 170,905$ 155,622$ 117,444$ 120,796$ 119,584$ 124,410$ SUMMARY OF REVENUES AND EXPENDITURES D – 285  LIBRARY DEPARTMENT  Acquisitions and Cataloging Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Librarian 0.40 0.40 - - - Library Technician 0.25 0.25 0.25 0.25 0.25 Total Technical Services FTEs 0.65 0.65 0.25 0.25 0.25 ACQUISITIONS & CATALOGING PROGRAM STAFFING Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of high demand items processed within 4 days: 95%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued b. Percentage of items received cataloged within 30 days:100%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued c.Percentage of items processed and shelf ready within 30 days: 100%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued d.Percentage of customers stating the Library has a good/excellent collection:* Data Not Available Data Not Available 92%87%87% Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.66,656 86,810**14,465****14,000 14,000 2.177 185 See circulation See circulation See circulation 3.Number of Suggestions for Purchase processed:*Data Not Available 1396 1265 919 900 * New measure effective FY 2015/16, historical data provided when available. ** FY 2014/2015 included records from Books24x7, a new database that was added during this year *** This measure moved to Circulation and System Administration during FY 2015/16. ****Items ordered from B&T, Amazon, and OverDrive. Does not include Books24x7, Enki, or Freading Number of periodical subscriptions checked in, processed, and exchanged:*** Number of items ordered and received: Provide customers with access to a broad range of up-to- date library materials and multimedia . D – 286 D – 287 Library Department CIRCULATION/SYSTEM ADMINISTRATION PROGRAM 7204 PROGRAM PURPOSE The Circulation Program enables customers to access library materials for use outside the Library. The System Administration Program manages all automated services and technology systems. Circulation/System Administration’s core services are to manage the circulation process, maintain circulation records, and implement and support the Library’s computer network, the integrated library automation system, and public Internet access. BUDGET OVERVIEW The FY 2017/18 Circulation/Systems Administration budget reflects a modest increase in ongoing maintenance and support costs for Library technologies. The Library continues to introduce new technologies that meet patrons’ expectations for fast, reliable access to information and Library resources. With an increasing number of people utilizing the Library’s online resources, technology upgrades are essential. Additionally, the Library will continue to budget funds for developments to improve the integrated library system for both patrons and staff. The Library will also be looking into providing additional electronic resources. D – 288  LIBRARY DEPARTMENT  Circulation / System Administration FY 2017/18 KEY PROJECTS 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed REVENUES Intergovernmental Revenue 12,632$ 4,062$ 7,708$ -$ -$ -$ Service Charges - - - - - - Fines & Forfeitures 41,950 41,345 33,636 40,000 36,000 32,000 Other Revenues - - 10 - - - TOTAL REVENUES 54,582$ 45,407$ 41,354$ 40,000$ 36,000$ 32,000$ Transfers In Transfers In from Trust(s)- - 11,100 11,098 11,098 11,098 Total Transfers In -$ -$ 11,100$ 11,098$ 11,098$ 11,098$ TOTAL REVENUES & TRANSFERS IN 54,582$ 45,407$ 52,454$ 51,098$ 47,098$ 43,098$ EXPENDITURES Salaries and Benefits 461,994$ 484,749$ 527,425$ 645,402$ 538,305$ 626,246$ Operating Expenditures 90,216 78,095 68,858 84,124 84,124 99,116 Fixed Assets - - - - - - Internal Service Charges 161,551 154,993 157,013 176,879 156,235 178,389 TOTAL EXPENDITURES 713,761$ 717,837$ 753,296$ 906,405$ 778,664$ 903,751$ SUMMARY OF REVENUES AND EXPENDITURES Core Goals Key Projects Good Governance Ensure responsive, accountable, and collaborative government Edge Assessment Continue to evaluate the Library’s technology services and determine appropriate modifications given available resources and assess potential tools for strategic planning and community engagement. Online Payments An online payment system will be implemented to allow Library users to pay their fines remotely. This online payment system will work securely with the Library ILS and the Town’s Finance system to streamline this process for both Library users and staff. Additional Resources Wowbrary is a tool that uses technology to help the Library become more visible and accessible by regularly informing the community via email and RSS feeds of incoming new materials in the collection. A partnership with Discover & Go provides instant access to free and low-cost tickets to museums, science centers, zoos, and other cultural attractions with a Los Gatos Library card. D – 289  LIBRARY DEPARTMENT  Circulation / System Administration KEY PROGRAM SERVICES • Manages circulation process. • Manages all Library automated systems, including the Library’s network. • Manages remote authentication server. • Manages public computer terminals and printers. Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Division Manager - - - 0.80 0.80 Library Technology Specialist 0.90 0.90 0.90 0.90 0.90 Customer Service Supervisor 1.00 1.00 1.00 1.00 1.00 Customer Service Specialist 1.50 1.50 1.50 1.50 1.50 Total Circulation/System FTEs 3.40 3.40 3.40 4.20 4.20 2013/14 2014/15 2015/16 2016/17 2017/18 Temporary Staff Funded Funded Funded Funded Proposed Library Clerk 1,050 1,050 1,050 1,050 1,050 Library Page 7,591 7,591 4,627 6,344 6,344 Senior Library Page - - 2,964 - - Total Annual Hours 8,641 8,641 8,641 7,394 7,394 CIRCULATION / SYSTEMS ADMINISTRATION PROGRAM STAFFING D – 290  LIBRARY DEPARTMENT  Circulation / System Administration Performance Objectives and Measures 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1. a.Percentage of Los Gatos residents holding a library card: 54%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued b. Percentage of circulation attributed to Los Gatos residents in the last 12 months: 52%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 2.Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued a.Percentage of time library online services are available: 99.9%Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued b.Number of databases available online:*Data Not Available 40 39 40 40 c. Number of electronic materials available for loan:*Data Not Available 150,178 210,244 689,317 700,000 d.Number of items in-house for loan:*Data Not Available 167,099 157,431 155,000 155,00 Activity and Workload Highlights 2013/14 Actual 2014/15 Actual 2015/16 Actual 2016/17 Estimated 2017/18 Budget 1.245,714 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 2.289,557 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 3.578,954 607,494 553,340 575,000 600,000 4.129,424 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 5.29,364 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 6.27,671 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 7.22 Measure Discontinued Measure Discontinued Measure Discontinued Measure Discontinued 8.368,442 305,373 See Library Administration See Library Administratio n See Library Administratio n 9.3,811 3,797 3,900 4,000 4,500 10.22,329 27,250 34,456 20,904 22,000 11.54 54 54 54 54 12.Number of Library Card holders:*Data Not Available 28,087 31,987 29,000 30,000 13.177 185 133 133 133 14.Total hours of public computer use:*Data Not Available 32,938 30,199 32,000 32,000 * New measure effective FY 2015/16, historical data provided when available. Changed from "e-Books" to "electronic materials" in FY16/17, to represent the growth of the electronic offerings to include audio, music, movies and other types of content. Addition of Hoopla, CloudLibrary and Flipster in Aug 2016 added over 500,000 items to this total. ** New measure effective FY 2015/16 combining Item 1 and Item 2 under Activity and Workload Highlights. *** This measure was moved from Adult Services program during FY 2015/16, and description changed from "patron's materials reserves" processed to "holds" processed which represents the same work flow with a clearer name **** This measure was moved from Acquistions & Cataloguing during FY 2015/16. Provide customers with access to materials for use within and outside the library. Assure access to library online services. Number of periodical subscriptions received and processed:**** Number of new patrons registered: Hours of public service per week at circulation: Circulation of printed material - youth: Circulation of videos/DVDs: Number of holds processed:*** Total Circulation of printed material - adult: Circulation of audio books: Circulation of CDs: Circulation per capita: Total Circulation:** (FY 2012/13 and FY 2013/14 data does not include e- book circulation) Door Count: D – 291 Library Trust Fund FUND 711 FUND PURPOSE The Library Trust Fund was established to provide for the servicing of donations and bequests to the Los Gatos Library. The Los Gatos Friends of the Library, a nonprofit 501(c)(3) organization exists for the benefit of the Library, and this fund allows the Town to plan for and recognize the numerous donations this non-profit group makes to the Library. In addition, numerous local service organizations and individuals make generous donations and memorial bequests to the Library, sometimes for specific purposes. This fund provides for retaining these donations until they can be used as designated. This fund includes the proceeds from the History Project Trust Fund, which was established to provide for the servicing of donations, bequests, grant monies, and expenditures to the history project partnership of Los Gatos Library and the Museums of Los Gatos. BUDGET OVERVIEW The Los Gatos Friends of the Library contributed more than $80,000 to the Library during the past fiscal year. This funding has provided support for community programs, family programs, teen programs, Summer Reading events and prizes, and a growing collection of new best selling books and movies. The Friends also partially funded the Library’s new Laptops Anytime vending machine. Additionally, the lease payments to the Town from the Friends of the Library Bookstore help to support ongoing Library operations. Other Library supporters have made donations to the Library Trust Fund to purchase memorial books and equipment. A portion of this fund will be budgeted for FY 2017/18 in support of Library programming and specialized collections. The History Project Trust Fund tracked monies received by History Services, a Library service that originally began as a project funded by grants and donations. These Trust Funds are mostly royalties, digitization and licensing fees for proprietary images, and donations received. The D – 292  LIBRARY DEPARTMENT  Library Trust Fund money received from donated royalties has been rapidly decreasing over the past years, and the FY 2017/18 budget anticipates limited contributions. Money received from the licensing of digital images is not a stable funding source and is not be relied upon to offset the support and hosting fees for the history website. All future revenues are tracked in the Library Trust Fund. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 13,996 31,981 39,320 46,145 46,145 36,695 Total Beginning Fund Balance 13,996 31,981 39,320 46,145 46,145 36,695 Revenues Interest 611 53 549 400 550 550 Other Revenues 36,186 37,304 71,171 67,000 67,000 73,500 Total Revenues 36,797 37,357 71,720 67,400 67,550 74,050 TOTAL SOURCE OF FUNDS 50,793$ 69,338$ 111,040$ 113,545$ 113,695$ 110,745$ USES OF FUNDS Expenditures Salaries and Benefits 123$ -$ -$ -$ -$ -$ Operating Expenditures 18,689 30,018 28,515 32,000 32,000 37,500 Fixed Assets - - - - - - Internal Service Charges - - - - - - Total Expenditures 18,812 30,018 28,515 32,000 32,000 37,500 Transfers Out Transfer to General Fund - - 35,000 35,000 45,000 35,000 Transfer to History Trust Fund - - 1,380 - - - Total Transfers Out - - 36,380 35,000 45,000 35,000 TOTAL EXPENDITURES & TRANSFERS OUT 18,812 30,018 64,895 67,000 77,000 72,500 Ending Fund Balance Designated - - - - - - Undesignated 31,981 39,320 46,145 46,545 36,695 38,245 Total Ending Fund Balance 31,981 39,320 46,145 46,545 36,695 38,245 TOTAL USE OF FUNDS 50,793$ 69,338$ 74,660$ 78,545$ 68,695$ 75,745$ STATEMENT OF SOURCE AND USE OF FUNDS D – 293 Clelles Ness Trust Fund FUND 713 FUND PURPOSE The Clelles Ness Trust Fund was established in January 1961 by Ansten R. Ness, M.D. and the Board of Library Trustees for the Town of Los Gatos, as a memorial to his wife, Clelles Ness. Mrs. Ness was a long-time Los Gatos resident who was active in civic life, winning the 1947 Citizen of the Year award. Among her many contributions to the Town, she was heavily involved with the arts. She helped to bring the Los Gatos Pageants and numerous other play productions to the Town, was an avid reader, and wrote for the Los Gatos Times (the local newspaper). She was also involved with bringing a hospital to Town, and with her husband started the “Holiday Circle” social club which required at least one spouse to be active in civic planning to join. The intention of the memorial fund was to use the income and principal of the trust estate to provide materials and services not ordinarily available from public funds. An amendment to the trust agreement in 1983 relinquished control over the management and investment of the trust to the Town Council. In the past, the Library has used money from the trust to purchase art books for Los Gatos Public Library. The Library is no longer able to spend the money in this manner due to the building’s space constraints. As a result, in July of 1999 an agreement with the daughter of Clelles Ness stipulated that the use of the trust fund included a new Library facility, should one be built in the future. Per the agreement, the trust fund principal and interest was used for the new library building plan documents and studies, such as but not limited to, a building program and architectural drawings. The remaining trust funds are in a Library Building Fund to be used for the purchase of items for the current Library building, such as furniture, shelving, and equipment. D – 294  LIBRARY DEPARTMENT  Clelles Ness Trust Fund BUDGET OVERVIEW A large portion of this trust was expended in FY 15/16 for the purchase of the automated materials handling system. Interest continues to minimally increase the fund balance, to be used when determined appropriate. No money is budgeted from this fund in FY 2017/18. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 190,317 188,420 171,591 88,679 40,742 41,592 Total Beginning Fund Balance 190,317 188,420 171,591 88,679 40,742 41,592 Revenues Interest 3,741 (851) 845 500 850 850 Other Revenues - - - - - - Total Revenues 3,741$ (851)$ 845$ 500$ 850$ 850$ TOTAL SOURCE OF FUNDS 194,058$ 187,569$ 172,436$ 89,179$ 41,592$ 42,442$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 5,638 15,978 131,694 - - - Fixed Assets - - - - - - Internal Service Charges - - - - - - Total Expenditures 5,638 15,978 131,694 - - - Ending Fund Balance Designated - - - - - - Undesignated 188,420 171,591 40,742 89,179 41,592 42,442 Total Ending Fund Balance 188,420 171,591 40,742 89,179 41,592 42,442 TOTAL USE OF FUNDS 194,058$ 187,569$ 172,436$ 89,179$ 41,592$ 42,442$ STATEMENT OF SOURCE AND USE OF FUNDS D – 295 Susan McClendon Trust Fund FUND 714 FUND PURPOSE A bequest to the Los Gatos Public Library from the estate of the late Susan E. (Betty) McClendon was established in support of children’s services. Betty McClendon was a long-time resident and dance instructor. She is especially remembered as the choreographer of the Town’s 1940 pageant, “Trail Days,” which celebrated the completion of the final section of the new four-lane highway from Santa Cruz into Los Gatos. Betty McClendon’s mother, Mrs. Hilda McClendon, served as Children’s Librarian at Los Gatos Memorial Library from 1923 to 1929. Ms. McClendon left this gift in memory of her mother and her mother’s husband, Gorman Burtner. These funds are restricted for use for children’s services at the Library, and will be directed toward support of reading clubs, book discussion groups, evening family programs, and equipment and furniture needs of children’s services that are not met by other funding. This funding will also be used for enhancement of children’s collections. BUDGET OVERVIEW This fund was established to monitor that funds from this trust are expended for children’s services in keeping with the wishes of the bequestor. No money is budgeted from this fund for FY 17/18. D – 296  LIBRARY DEPARTMENT  Susan McClendon Trust Fund 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 98,944 96,095 87,957 98,020 88,662 89,376 Total Beginning Fund Balance 98,944 96,095 87,957 98,020 88,662 89,376 Revenues Interest 1,867 (309) 705 750 714 705 Other Revenues - - - - - - Total Revenues 1,867$ (309)$ 705$ 750$ 714$ 705$ TOTAL SOURCE OF FUNDS 100,811$ 95,786$ 88,662$ 98,770$ 89,376$ 90,081$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 4,716 7,829 - - - - Fixed Assets - - - - - - Internal Service Charges - - - - - - Total Expenditures 4,716$ 7,829$ -$ -$ -$ -$ Ending Fund Balance Designated - - - - - - Undesignated 96,095 87,957 88,662 98,770 89,376 90,081 Total Ending Fund Balance 96,095 87,957 88,662 98,770 89,376 90,081 TOTAL USE OF FUNDS 100,811$ 95,786$ 88,662$ 98,770$ 89,376$ 90,081$ STATEMENT OF SOURCE AND USE OF FUNDS D – 297 Barbara Jones Cassin Trust Fund FUND 716 FUND PURPOSE The Barbara Jones Cassin Trust Fund was established by endowment upon the death of Ms. Cassin on May 10, 2010. Ms. Cassin was a graduate of Los Gatos High (class of 1937) and San Jose State, where she majored in biological and physical sciences. After a successful career in hospital laboratories, she turned to watercolors, and donated 25 lovely views of Los Gatos to the library. A reception showing these works was sponsored by the Library in August 2008. Ms. Cassin’s art has been widely exhibited and is held in public and private collections. In response to Hurricane Katrina, Ms. Cassin hosted a workshop to encourage children to draw and write their responses to the disaster, including its effects on animals. The initial project funded by the Barbara Jones Cassin Trust was the purchase of opening day collections for the new Los Gatos Public Library. In following years, the interest earned by the trust is budgeted annually to enhance collections and informational programming, per Ms. Cassin’s wishes. BUDGET OVERVIEW No money is budgeted from this fund in FY 17/18. D – 298  LIBRARY DEPARTMENT  Barbara Jones Cassin Trust Fund 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Proposed SOURCES OF FUNDS Beginning Fund Balance Designated -$ -$ -$ -$ -$ -$ Undesignated 453,249 379,802 344,759 521,252 347,523 350,283 Total Beginning Fund Balance 453,249 379,802 344,759 521,252 347,523 350,283 Revenues Interest 7,382 (1,125) 2,764 500 2,760 2,760 Other Revenues - - - - - - Total Revenues 7,382$ (1,125)$ 2,764$ 500$ 2,760$ 2,760$ TOTAL SOURCE OF FUNDS 460,631$ 378,677$ 347,523$ 521,752$ 350,283$ 353,043$ USES OF FUNDS Expenditures Salaries and Benefits -$ -$ -$ -$ -$ -$ Operating Expenditures 80,829 33,918 - - - - Fixed Assets - - - - - - Internal Service Charges - - - - - - Total Expenditures 80,829 33,918 - - - - Transfers Out Transfer to General Fund - - - - - - Transfer to Capital Projects - - - - - - Total Transfers Out - - - - - - Total Expenditures & Transfers Out 80,829$ 33,918$ -$ -$ -$ -$ Ending Fund Balance Designated - - - - - - Undesignated 379,802 344,759 347,523 521,752 350,283 353,043 Total Ending Fund Balance 379,802 344,759 347,523 521,752 350,283 353,043 TOTAL USE OF FUNDS 460,631$ 378,677$ 347,523$ 521,752$ 350,283$ 353,043$ STATEMENT OF SOURCE AND USE OF FUNDS F - 1 Successor Agency to the Town of Los Gatos Redevelopment Agency FUND 942 AGENCY OVERVIEW The Los Gatos Town Council established the Los Gatos Redevelopment Agency on January 22, 1990, pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code, Section 33000 et seq.) and declared itself to constitute the Agency by Ordinance No. 1806 adopted on December 4, 1989. The Redevelopment Plan was pursued as a result of the Loma Prieta Earthquake in 1989 and the need to rebuild existing infrastructure. The Redevelopment Agency area encompassed approximately 440 acres in and around downtown Los Gatos, which included retail and residential areas, lodging, schools, and transportation thoroughfares. Projects completed in the Plan area, including street and utility reconstruction, parking, streetscape, and civic improvements, were funded through property “tax increment” revenue collected by the Redevelopment Agency. When the Redevelopment Agency was initially formed, the tax base for all properties within the redevelopment area was “frozen” to form a “base year.” When properties were reassessed, the tax base grew and the Agency received the majority of the difference in property taxes paid between the base year and the new level (known as “tax increment” revenue). BUDGET OVERVIEW On June 15, 2011, the California State Legislature adopted two budget “trailer” bills concerning redevelopment, ABx1 26 and ABx1 27 (hereafter AB 26 and AB 27). AB 26 (the “Dissolution Act”) eliminated redevelopment agencies as of October 1, 2011, and essentially restricted redevelopment agencies from entering into agreements, borrowing or lending funds, or acquiring or disposing of real property prior to dissolution. Whereas, AB 27 (the “Voluntary Program Act”) allowed redevelopment agencies to remain in existence and be exempt from AB 26 if certain “voluntary” payments were made to the State in FY 2012 and in each fiscal year thereafter. These bills were signed into law by the governor on July 28, 2011. The League of California Cities and the California Redevelopment Association (CRA) filed a petition with the California Supreme Court, challenging the constitutionality of AB 26 and AB 27. The California F - 2  SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY  Supreme Court, in its decision in California Redevelopment Association v. Matosantos issued December 29, 2011 (the “Supreme Court Decision”), declared the Dissolution Act alone to be constitutional. Under the Dissolution Act, all California redevelopment agencies were dissolved effective February 1, 2012. Following the provisions of the Dissolution Act, the Town Council of the Town of Los Gatos (the “Town Council”) adopted a resolution accepting for the Town the role of Successor Agency (the “Successor Agency”) to the Redevelopment Agency of the Town of Los Gatos (the “Redevelopment Agency”). An oversight board (the “Oversight Board”), consisting of members representing Santa Clara County, the Town, and various education and special districts was formed to approve and direct certain actions of the Town as Successor Agency. Prior to the dissolution of redevelopment agencies, redevelopment law required that 20 percent of tax increment revenue received by an agency must be set aside for affordable housing activities. Under the Dissolution Act, tax increment revenue received by the Successor Agency did not include funding for affordable housing. However, tax-sharing agreements negotiated with affected public educational entities, the Mid-Peninsula Open Space District, and Santa Clara County continue to be recognized. Nearly half of all Redevelopment Agency tax increment had been passed through to these taxing entities. Successor Agencies may also receive tax increment revenue to pay for enforceable obligations that were incurred prior to the passage of the Dissolution Act. Under the Dissolution Act, Successor Agencies must approve and submit a Recognized Obligation Payment Schedule (ROPS) that reflects enforceable obligations over a six month period. Prior to the payment of any enforceable obligation, the ROPS must be certified by the County and subsequently approved by the Oversight Board. Successor Agencies must also approve and submit an administrative budget for operational expenses to the Oversight Board for approval. Successor Agencies may receive a minimum of up to $250,000 or up to 3 percent of tax increment revenues received by the Successor Agency per fiscal year for administrative expenses, which is significantly lower than the Successor Agency’s current administrative expenses. The Town has several existing enforceable obligations that must be paid over the remaining life of the debt service, or until the Successor Agency reaches the tax increment cap, which is the gross tax increment collected over the life of the Agency. The Town’s tax increment cap, which is anticipated to be reached by FY 2027/28, is approximately $250 million. The Successor Agency currently pays debt service on two Certificates of Participation (COPs): • 2002 COPs Payments for Redevelopment Agency Capital Projects: In 2002, the Town issued debt for approximately $10.7 million to fund RDA infrastructure projects in the project area. Annual debt service payments of approximately $680,000 will continue through FY 2031/32. • 2010 COPs Payments for Town Library: In 2010, the Town issued debt for approximately $15.7 million to fund the construction of the new library building. Annual debt service payments of approximately $1.2 million will continue through FY 2027/28. F - 3  SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY  • Agency Administration: This pays for the day-to-day operations of the Successor Agency, including staff salary and benefits, supplies and materials, and consultant assistance. Annual budgeted expenditures are estimated to be approximately $22,000. The Town submitted the Last & Final ROPS to the State and it was approved by the State on April 6, 2016. The Town no longer needs to submit ROPS every six months and has scheduled the ROPS budget through FY 2031/32. At the end of FY 2031/32, the Town and the County will resolve any remaining balances. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adopted Estimated Adopted SOURCES OF FUNDS Beginning Fund Balance Designated -$ 2,260,068$ 2,001,533$ 1,963,327$ 1,963,327$ 1,963,327$ Undesignated 3,852,329 1,355,427 1,612,193 1,630,244 1,630,244 1,638,466 Total Beginning Fund Balance 3,852,329 3,615,495 3,613,726 3,593,571 3,593,571 3,601,793 Revenues Property Tax - - - - - - Other Taxes - - - - - - Lease Income - COP's 1,935,578 1,928,056 1,922,398 1,923,303 1,923,303 1,914,749 County RPTTF Reimbursement 2,067,063 2,067,483 1,989,524 1,947,986 1,947,986 1,939,822 Interest 224 3,544 2,393 1,650 50 3,150 Other Revenues - - - - - - Total Revenues 4,002,865 3,999,083 3,914,315 3,872,939 3,871,339 3,857,721 Transfers In Transfer from SA Administration 21,687 - - - - - Total Transfers In 21,687 - - - - - Total Revenues and Transfer Ins 4,024,552$ 3,999,083$ 3,914,315$ 3,872,939$ 3,871,339$ 3,857,721$ TOTAL SOURCE OF FUNDS 7,876,881$ 7,614,578$ 7,528,041$ 7,466,510$ 7,464,910$ 7,459,514$ USES OF FUNDS Expenditures Salaries and Benefits 12,032 13,455 14,102 1,435 1,435 1,475 Operating Expenditures 264,648 5,565 5,357 15,458 7,320 19,070 Grants - - - - - - Debt Service 3,871,156 3,856,111 3,844,796 3,846,606 3,846,606 3,829,479 Fixed Assets - - - - - - Internal Service Charges 2,915 552 561 56 56 59 Total Expenditures 4,150,751 3,875,683 3,864,816 3,863,555 3,855,417 3,850,083 Transfers Out Transfer to Capital Projects - - - - - - Transfer to General Funds 110,635 125,169 69,654 7,700 7,700 6,300 Total Transfers Out 110,635 125,169 69,654 7,700 7,700 6,300 Total Expenditures & Transfers Out 4,261,386 4,000,852 3,934,470 3,871,255 3,863,117 3,856,383 Ending Fund Balance Designated - 2,001,533 1,963,327 1,963,327 1,963,327 1,963,327 Undesignated 3,615,495 1,612,193 1,630,244 1,631,928 1,638,466 1,639,804 Total Ending Fund Balance 3,615,495 3,613,726 3,593,571 3,595,255 3,601,793 3,603,131 TOTAL USE OF FUNDS 7,766,246$ 7,614,578$ 7,528,041$ 7,466,510$ 7,464,910$ 7,459,514$ STATEMENT OF SOURCE AND USE OF FUNDS F - 4  SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY  Full Time Equivalent (FTE) 2013/14 2014/15 2015/16 2016/17 2017/18 Town Staff Funded Funded Funded Funded Proposed Administrative Analyst 0.10 0.10 0.10 0.01 - Accountant/Finance Analyst - - - - 0.01 Total SA FTEs 0.10 0.10 0.10 0.01 0.01 SUCCESSOR AGENCY TO THE LOS GATOS RDA PROGRAM STAFFING F - 5 Successor Agency to the Town of Los Gatos Redevelopment Agency ADMINISTRATION P ROGRAM 9403 PROGRAM PURPOSE The Successor Agency’s Administration Fund encompasses administrative functions related to operational and fiscal matters of the Successor Agency, in conjunction with the Finance Department. Prior to the dissolution of the Redevelopment Agency, this fund also supported capital project development, management, and construction oversight; and economic vitality activities to enhance revenues through business promotion and retention. While there will be no future capital projects, with the exception of Almond Grove reconstruction project in the former Redevelopment Area, economic vitality efforts continue and are now supported by the General Fund. BUDGET OVERVIEW The FY 2017/18 Administration Fund budget reflects approximately $19,000 of tax increment revenue to cover the operational and fiscal reporting expenses of the Successor Agency. The Town’s last and final ROPS has now been approved by the State. The Town will no longer have to submit ROPS every six months. F - 6 F - 7 Successor Agency to the Town of Los Gatos Redevelopment Agency DEBT SERVICE P ROGRAMS 9 404 and 9 405 FUND PURPOSE Prior to the Dissolution Act, the Los Gatos Redevelopment Agency assumed the obligation of paying the debt service on the Town’s 2002 and 2010 Certificates of Participation (COPs) in return for the lease of Town property. The purpose of the COPs was to fund key capital infrastructure projects located in the former Redevelopment Area. Payments for this indebtedness were and will continue to be made from the Debt Service Fund. BUDGET OVERVIEW PROGRAM 9404 – 2002 CERTIFICATE OF PARTICIPATION The Town bears an obligation for the 30-year Certificates of Participation issued in the original amount of $10,725,000, dated August 1, 2002. The COPs were issued to finance infrastructure improvements in the downtown Redevelopment Area, including plaza reconstruction, streetscape improvements, street reconstruction, storm drainage, and alley improvements, as well as partially funding the reconstruction of the pool at Los Gatos High School. The COPs principal payments are due annually on August 1, with interest payments payable semi-annually on February 1 and August 1. The financing structure of the COPs includes two lease agreements between the Town of Los Gatos and the Successor Agency for the Town of Los Gatos Redevelopment Agency dated July 1, 2002. The first agreement leases five Town-owned parcels, commonly known as the Miles Avenue Corporation Yard, to the Successor Agency through August 1, 2031 for a one-time fee of $1. In the second lease, the Successor Agency subleases the same land back to the Town, effective the date of the original lease. The annual sub-lease payments are equal to the annual debt service for the COPs. A reimbursement agreement between the Town and the Successor Agency, also dated July 1, 2002, obligates the Agency to reimburse the Town in an amount equal to the annual lease payment the Town pays to the Agency for the sub-lease of the Corporation Yard. This reimbursement is in consideration of F - 8  SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY  Debt Service the Town’s cost of the acquisition and construction of the yard facilities. While the annual impact of these agreements nets to zero, the lease and reimbursement payments are included in both the Town’s and Successor Agency’s budgets each year to accurately reflect the terms of these agreements. The Agency remains responsible for making the principal and interest payments. The maturity schedule for the Successor Agency’s current Debt Service obligation under the 2002 COPs is as follows: Principal Interest Interest Fiscal Maturing Due Due Total Principal Year August 1st August 1st Feburary 1st Debt Service Balance Issue Date: August 1, 2002 10,725,000$ 2002/03 - - 237,164$ 237,164$ 10,725,000 2003/04 210,000$ 235,854$ 233,229 679,083 10,515,000 2004/05 215,000 233,229 230,541 678,770 10,300,000 2005/06 225,000 230,541 227,729 683,270 10,075,000 2006/07 230,000 227,729 224,854 682,583 9,845,000 2007/08 235,000 224,854 221,681 681,535 9,610,000 2008/09 240,000 221,681 218,081 679,763 9,370,000 2009/10 250,000 218,081 214,019 682,100 9,120,000 2010/11 255,000 214,019 209,556 678,575 8,865,000 2011/12 265,000 209,556 204,720 679,276 8,600,000 2012/13 275,000 204,720 199,426 679,146 8,325,000 2013/14 285,000 199,426 193,726 678,153 8,040,000 2014/15 295,000 193,726 187,679 676,405 7,745,000 2015/16 310,000 187,679 181,169 678,848 7,435,000 2016/17 320,000 181,169 174,209 675,378 7,115,000 2017/18 335,000 174,209 166,755 675,964 6,780,000 2018/19 350,000 166,755 158,793 675,548 6,430,000 2019/20 365,000 158,793 150,306 674,099 6,065,000 2020/21 385,000 150,306 141,163 676,469 5,680,000 2021/22 400,000 141,163 131,463 672,625 5,280,000 2022/23 420,000 131,463 121,225 672,688 4,860,000 2023/24 440,000 121,225 110,500 671,725 4,420,000 2024/25 465,000 110,500 98,875 674,375 3,955,000 2025/26 485,000 98,875 86,750 670,625 3,470,000 2026/27 510,000 86,750 74,000 670,750 2,960,000 2027/28 535,000 74,000 60,625 669,625 2,425,000 2028/29 565,000 60,625 46,500 672,125 1,860,000 2029/30 590,000 46,500 31,750 668,250 1,270,000 2030/31 620,000 31,750 16,250 668,000 650,000 2031/32 650,000 16,250 - 666,250 - TOTALS:10,725,000$ +4,551,426$ +4,552,737$ =19,829,163$ 2002 COP DEBT SERVICE F - 9  SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY  Debt Service PROGRAM 9405 – 2010 CERTIFICATES OF PARTICIPATION The 2010 Certificates of Participation financing structure parallels the 1992 and 2002 issues. The Town bears an obligation for the 18-year Certificates of Participation issued in the original amount of $15,675,000, dated June 1, 2010. The COPs were issued to finance the construction of the new Town library. The COPs principal payments are due annually on August 1, with interest payments payable semi-annually on February 1 and August 1. The financing structure of the COPs includes two lease agreements between the Town of Los Gatos and the Successor Agency for the Town of Los Gatos Redevelopment Agency dated June 1, 2010. The first agreement leases Town-owned parcels, including the existing library, police administration building, and related property located at the Civic Center, to the Successor Agency through August 1, 2028 for a one- time fee of $1. In the second lease, the Successor Agency subleases the properties back to the Town, effective the date of the original lease. The annual sub-lease payments are equal to the annual debt service for the COPs. A reimbursement agreement between the Town and Agency, also dated June 1, 2010, obligates the Agency to reimburse the Town in an amount equal to the annual lease payment the Town pays to the Agency for the sub-lease of the existing library, police administration building, and related properties. This reimbursement is in consideration of the Town’s cost of the acquisition and construction of the library and police facilities. While the annual impact of these agreements nets to zero, the lease and reimbursement payments are included in both the Town’s and Successor Agency’s budgets each year to accurately reflect the terms of these agreements. The Agency remains responsible for making the principal and interest payments. The maturity schedule for the Successor Agency’s current Debt Service obligation under the 2010 COPs is as follows: F - 10  SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY  Debt Service Interest Principal Interest Fiscal Due Maturing Due Total Principal Year August 1st August 1st February 1st Debt Service Balance Issue Date: June 1, 2010 15,675,000$ 2010/11 423,161 423,161 15,675,000 2011/12 320,038 530,000 313,413 1,163,450 15,145,000 2012/13 313,413 650,000 300,413 1,263,825 14,495,000 2013/14 300,413 670,000 287,013 1,257,425 13,825,000 2014/15 287,013 695,000 269,638 1,251,650 13,130,000 2015/16 269,638 715,000 258,913 1,243,550 12,415,000 2016/17 258,913 745,000 244,013 1,247,925 11,670,000 2017/18 244,013 770,000 224,763 1,238,775 10,900,000 2018/19 224,763 800,000 208,763 1,233,525 10,100,000 2019/20 208,763 830,000 192,163 1,230,925 9,270,000 2020/21 192,163 865,000 174,863 1,232,025 8,405,000 2021/22 174,863 900,000 152,363 1,227,225 7,505,000 2022/23 152,363 935,000 133,663 1,221,025 6,570,000 2023/24 133,663 975,000 114,163 1,222,825 5,595,000 2024/25 114,163 1,020,000 93,763 1,227,925 4,575,000 2025/26 93,763 1,065,000 72,463 1,231,225 3,510,000 2026/27 72,463 1,115,000 50,163 1,237,625 2,395,000 2027/28 50,163 1,170,000 26,031 1,246,194 1,225,000 2028/29 26,031 1,225,000 1,251,031 - TOTALS:3,436,594$ +15,675,000$ +3,539,717$ =22,651,311$ 2010 COP DEBT SERVICE F - 11  SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY  Debt Service California Government Code Section 43605 states: “A city shall not incur an indebtedness for public improvements which exceeds in the aggregate 15 percent of the assessed value of all real and personal property of the city. Within the meaning of this section indebtedness means bonded indebtedness of the city payable from the proceeds of taxes levied upon taxable property in the city.” This schedule calculates the Town’s legal debt margin by determining the 15% debt limit and comparing this limit to the Town’s outstanding debt at the end of the fiscal year to determine the difference between the two. Only certain types of outstanding debt are subject to the legal debt limit; therefore, while this schedule recognizes all debt, the total debt is reduced by that debt not subject to the legal debt limit, as well as amounts held in sinking funds for debt repayment. The Town’s debt structure currently includes only Certificates of Participation, which are not subject to the legal debt limit, and are therefore removed from the calculation. Assessed Secured Property Valuation for FY 2016/17 11,198,237,798$ Debt Limitation (15% of assessed value)15% Bonded Debt Limit 1,679,735,670$ Outstanding Bonded Debt at 6/30/16 2002 Certificates of Participation 7,115,000 2010 Certificates of Participation 11,670,000 TOTAL Outstanding Debt 18,785,000$ LESS Debt not subject to limit: Special Assessment Bonds - Special Revenue Bonds - Certificate of Participation Debt 18,785,000 Amounts held in Sinking Funds - TOTAL Debt not subject to limit: 18,785,000$ Amount of Debt Subject to Limit: -$ -$ LEGAL DEBT MARGIN 1,679,735,670$ LEGAL DEBT MARGIN COMPUTATION FY 2017/18 F - 12 G - 1 LIST OF FUNDS GENERAL FUND ............................................................................................................................................ 111 SPECIAL REVENUE FUNDS HCD – Housing Rehabilitation Fund (Administrative Services) ......................................................... 211 HCD – CDBG Fund (Administrative Services) ...................................................................................... 212 Non-Point Source Maintenance Fund (Parks and Public Works) ....................................................... 222 Assessment District Funds (Parks and Public Works) .................................................................. 231-237 INTERNAL SERVICE FUNDS ABAG Self-Insurance Fund (Administrative Services) ......................................................................... 611 Workers’ Compensation Fund (Administrative Services) ................................................................... 612 Management Information Fund (Administrative Services) ................................................................ 621 Office Stores Fund (Administrative Services) ..................................................................................... 622 Equipment Replacement Fund (Parks and Public Works) ................................................................. 631 Vehicle Maintenance Fund (Parks and Public Works) ........................................................................ 632 Facilities Maintenance Fund (Parks and Public Works) ...................................................................... 633 TRUST AND AGENCY FUNDS Library Trust (Library) ......................................................................................................................... 711 History Project Trust (Library) ............................................................................................................ 712 Clelles Ness Trust (Library) ................................................................................................................. 713 Susan McClendon Trust (Library) ....................................................................................................... 714 Barbara J Cassin Trust Fund ................................................................................................................ 716 Downtown Parking District Assessment (Administrative Services) ................................................... 721 Successor Agency to the Town of Los Gatos RDA trust Fund (Administrative Services).................... 942 CAPITAL PROJECT FUNDS General Fund Appropriated Reserves (GFAR) .................................................................................... 411 Grant Funded Projects Fund ............................................................................................................... 421 Storm Drain Basin Project Funds ................................................................................................. 461-463 Traffic Mitigation Fund ....................................................................................................................... 471 Utility Undergrounding Fund .............................................................................................................. 472 Gas Tax ............................................................................................................................................... 481 SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY FUNDS Successor Agency to the Town of Los Gatos RDA Trust Fund (Administrative Services) ................... 942 G - 2 LIST OF PROGRAMS GENERAL FUND Town Offices Town Council .................................................................................................................................... 1101 Town Attorney .................................................................................................................................. 1301 Administrative Services Non-Departmental ........................................................................................................................... 1201 Town Manager’s Office .................................................................................................................... 2101 Human Resources ............................................................................................................................. 2201 Finance Services ............................................................................................................................... 2301 Clerk Administration ........................................................................................................................ 2401 Operating Grants .............................................................................................................................. 2801 Community Development Department Administration .................................................................................................................................. 3101 Development Review ....................................................................................................................... 3201 Advanced Planning ........................................................................................................................... 3202 Inspection Services ........................................................................................................................... 3301 Code Compliance .............................................................................................................................. 3401 BMP Housing .................................................................................................................................... 3501 Police Department Administration .................................................................................................................................. 4101 Records & Communication ............................................................................................................... 4201 Personnel & Community Services ................................................................................................... 4202 Patrol ............................................................................................................................................... 4301 Traffic ............................................................................................................................................... 4302 Investigations ................................................................................................................................... 4303 Parking Management ....................................................................................................................... 4304 Operating Grants ................................................................................................................... 4803 - 4810 Parks & Public Works Department Administration ................................................................................................................................. 5101 Engineering Program ........................................................................................................................ 5201 Engineering Development Services .................................................................................................. 5202 Parks & Forestry ............................................................................................................................... 5301 Conservation, Recycling and Sustainability ...................................................................................... 5302 Streets & Signals .............................................................................................................................. 5401 Property Damage.............................................................................................................................. 5405 G - 3  LIST OF PROGRAMS  GENERAL FUND CONTINUED Library Services Department Administration ................................................................................................................................. 7101 Adult Services / Reference ............................................................................................................... 7201 Youth Services .................................................................................................................................. 7202 Acquisitions / Cataloging .................................................................................................................. 7203 Circulation / Systems Administration ............................................................................................... 7204 INTERNAL SERVICE FUNDS ABAG – Self Insurance ............................................................................................................................. 1302 Workers Compensation .......................................................................................................................... 2202 Office Stores ............................................................................................................................................ 2302 Information Technology .......................................................................................................................... 2501 Equipment Replacement ........................................................................................................................ 5402 Vehicle Maintenance ............................................................................................................................. 5403 Building Maintenance ............................................................................................................................. 5404 SPECIAL REVENUE FUNDS Non-Point Source Program ..................................................................................................................... 5203 HCD – Housing Rehabilitation ................................................................................................................. 6501 HCD – CDBG Reimbursable Administration ............................................................................................ 6502 HCD – Community Development Block Grant ........................................................................................ 6503 Assessment Districts Blackwell District ................................................................................................................................. 5501 Kennedy Meadows District ................................................................................................................. 5502 Gemini Court District ........................................................................................................................... 5503 Santa Rosa Heights District.................................................................................................................. 5504 Vasona Heights District ....................................................................................................................... 5505 Hillbrook District .................................................................................................................................. 5506 TRUST AND AGENCY FUNDS Library Trust ............................................................................................................................................ 7301 Clelles Ness Trust .................................................................................................................................... 7302 Susan McClendon Trust .......................................................................................................................... 7304 Barbara J Cassin Trust Fund .................................................................................................................... 7305 Successor Agency to the Town of Los Gatos RDA Trust Fund................................................................. 9403 CAPITAL PROJECT FUNDS GFAR GFAR Administration ........................................................................................................................... 8011 Almond Grove Street Rehabilitation Project .........................................................................411-811-0003 Street Repair & Resurfacing ..................................................................................................411-811-9901 Annual Street Restriping .......................................................................................................411-811-9902 Guardrails Replacement Projects ..........................................................................................411-812-0120 Electrical Panel Replacement on Pageant Way .....................................................................411-812-0122 Crosswalk Improvements at Santa Cruz Avenue/Blossom Hill Road ....................................411-812-0125 G - 4  LIST OF PROGRAMS  CAPITAL PROJECT FUNDS CONTINUED Crosswalk Lighting Upgrade ..................................................................................................411-812-0126 Traffic Calming .......................................................................................................................411-812-9910 Monument Control Network Update ....................................................................................411-813-0214 Sidewalk Improvements for Shannon/Los Gatos Blvd/ Cherry Blossom ..............................411-813-0218 Stonybrook and Kennedy Sidewalk Improvements ..............................................................411-813-0219 Sidewalk Improvements – Multiple Locations .....................................................................411-813-0221 LED Streetlights ....................................................................................................................411-813-0224 Bicycle and Pedestrian Master Plan .....................................................................................411-813-0226 Traffic Signal Modernization ................................................................................................411-813-0227 Bicycle & Pedestrian Improvements .....................................................................................411-813-0231 Public Arets Gateway Project ................................................................................................411-813-0232 Stormwater Master Plan .......................................................................................................411-813-0413 Stormwater System – Pollution Prevention Compliance ......................................................411-813-0414 Curb, Gutter, & Sidewalk Maintenance ................................................................................411-813-9921 Retaining Wall Repairs ..........................................................................................................411-815-9930 224 W Main Property Acquisition (Parking Lot 6) .................................................................411-817-0704 Downtown Parking Lots Seal Coat & Restriping ....................................................................411-817-0705 Pageant Way Parking Lot Reconstruction .............................................................................411-817-0707 Quito Road - Bridge Replacement .........................................................................................411-818-0801 Energy Efficiency Upgrades – Town-wide ............................................................................411-821-2306 Civic Center Building Energy Efficiency Measures ................................................................411-821-2110 Exterior Lighting Replacement – Civic Center ......................................................................411-821-2112 Civic Center – Fountain Modification ...................................................................................411-821-2113 HVAC Chiller Repair ..............................................................................................................411-821-2115 Building Replacement at Corporation Yard ...........................................................................411-821-2302 Fuel Systems Enhancement...................................................................................................411-821-2304 Engineering Document Archiving .........................................................................................411-821-2305 Police & PPW Interoperability Radio Project ........................................................................411-821-2402 Park Rehabilitation – Bachman Park .....................................................................................411-831-3104 Belgatos Park Restroom Improvements ................................................................................411-831-3303 Blossom Hill Park Little League Backstop ..............................................................................411-831-3407 Parks Playground Fibar Project .............................................................................................411-831-4605 Tennis Courts Resurfacing – Various Town Locations ...........................................................411-831-4608 Open Space Trail Upgrades ...................................................................................................411-832-4504 Forbes Mill Footbridge ..........................................................................................................411-832-4507 Audio/Video System Upgrade ...............................................................................................411-841-6001 Town-wide Document Imaging Project .................................................................................411-841-6003 Information System Upgrade ................................................................................................411-841-6101 Tiburon/CAD RMS Upgrade ...................................................................................................411-841-6302 Silicon Valley Radio Interoperability Project (SVRIP) - Service ..............................................411-841-6305 G - 5  LIST OF PROGRAMS  CAPITAL PROJECT FUNDS CONTINUED Traffic Mitigation Traffic Mitigation Administration ........................................................................................................ 8041 Crosswalk Improvements at Santa Cruz Avenue/Blossom Hill Road ....................................471-812-0125 Crosswalk Lighting Upgrade ..................................................................................................471-812-0126 Highway 9/University Intersection ........................................................................................471-813-0202 Blossom Hill Road / Cherry Blossom Lane Intersection ........................................................471-813-0212 LG Boulevard / Shannon Improvements ...............................................................................471-813-0213 Monument Control Network Update ....................................................................................471-813-0214 Bicycle and Pedestrian Master Plan .....................................................................................471-813-0226 Cut-Through Traffic Mitigation .............................................................................................471-813-0229 Grant Funded CIP Projects Grant Administration Program ............................................................................................................ 8021 Highway 9/University Intersection ........................................................................................421-813-0202 Public Access Infrastructure Improvement Project ...............................................................421-821-2102 Bicycle and Pedestrian Master Plan .....................................................................................421-813-0226 Traffic Signal Modernization ................................................................................................421-813-0227 Storm Drain Basin Projects Storm Drain #1Administration Program ............................................................................................. 8031 Storm Drain #2Administration Program ............................................................................................. 8032 Storm Drain #3Administration Program ............................................................................................. 8033 Hernandez Avenue Storm Drain Improvements ...................................................................463-816-0409 Bicknell Road Storm Drain Improvements ............................................................................463-816-0410 Utility Undergrounding Projects Utility Undergrounding Administration .............................................................................................. 8042 Utility Undergrounding..........................................................................................................472-813-0225 Gas Tax Fund Projects Gas Tax Administration ....................................................................................................................... 8051 Street Repair & Resurfacing ..................................................................................................481-811-9901 SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY FUNDS Successor Agency to the Los Gatos RDA Capital Projects Other ................................................................................................................................................... 9402 Program Administration ...................................................................................................................... 9403 SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY FUNDS CONTINUED Successor Agency (SA) to the Los Gatos RDA Debt Service program SA Debt for 2002 COPs ........................................................................................................................ 9404 SA Debt for 2010 COPs ........................................................................................................................ 9405 Successor Agency Affordable Housing Program Program Administration ...................................................................................................................... 9301 G - 6 G - 7 GLOSSARY Accounting System - The set of records and procedures that are used to record, classify, and report information on the financial status and operations of the Town. Accrual Basis Accounting - Under this accounting method, transactions are recognized when they occur, regardless of the timing of related cash receipts and disbursements. Ad Valorem - Latin for “in proportion to the value”. This refers to property taxes levied on value and includes the General Obligation (G.O.) Bond rates added to the 1% rate allowed by Prop. 13. These rates are applied to the secured, unsecured, supplemental, and other miscellaneous tax rolls. Adoption - Formal action by the Town Council, which sets the spending limits for the fiscal year. The town's budget is adopted by Council resolution. Agency Fund - A fund used to account for assets held by the Town in the capacity of an agent for individuals, organizations, or other governmental entities. Annual Budget - A budget applicable to a single fiscal year. Appropriation - An authorization made by the Town Council, which permits officials to incur obligations against and to make expenditures of government resources. Appropriations are typically granted for a one-year period. Assessed Valuation - A value established for real property for use as a basis in levying property taxes. For all agencies in the State of California, the County for the secured and unsecured property tax rolls establishes assessed value; the utility property tax roll is valued by the State Board of Equalization. Under Article XIII of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. Proposition 13 also modified the value of real taxable property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change of ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal. Assessment Fund - A fund used to account for special levies made against certain properties to defray part or all of the costs of a specific improvement or service deemed to primarily benefit those parties. Audit - Prepared by an independent Certified Public Accountant (CPA), the primary objective of an audit is to determine if the Town's Financial Statements present fairly the Town's financial position and results of operations in conformity with generally accepted accounting principles. In conjunction with their performance of an audit, it is customary for an independent auditor to issue a Management Letter G - 8  GLOSSARY  stating the adequacy of the Town's internal controls as well as recommending improvements to the Town's financial management practices. Balanced Budget – Balanced budget is a budget with operating revenues equal to operating expenditures and neither a budget deficit nor a budget surplus. More generally, it refers to a budget with no deficit, but possible with surplus. Bonds - A bond is a written promise to pay a specified sum of money (called the face value or principle amount) at a specified date or dates in the future (called the maturity date) together with period interest at a specified rate. Bonds are typically used to finance capital facilities. Budget - As the Town's financial operating plan for the fiscal year, the budget displays the estimated expenditures (costs) for providing services and the estimated sources of revenue (income) to pay for them. Once the Town Council adopts the budget, the total becomes the maximum spending limit. Los Gatos' budget encompasses fiscal year (July 1, through June 30). Budget Amendment - The Council has the sole responsibility for adopting the Town's budget, and may amend or supplement the budget at any time after adoption. The Town Manager has the authority to approve administrative adjustments to the budget as outlined in the Financial and Administrative Policies set by Council. Budget Calendar - The schedule of key dates which the Town follows in the preparation and adoption of the budget. Budget Document - The official financial spending and resource plan submitted by the Town Manager and adopted by the Town Council explaining the approved budget to the public and Town Council. Budget Message - Included in the opening section of the budget, the Budget Message provides the Council and the Public with a general summary of the most important aspects of the budget, comparative data from previous fiscal years, goals and objectives, and the views and recommendations of the Town Manager. Budget Overview - This section provides an overview of the changes adopted in the budget. Additionally, the significant impacts of budgetary changes are outlined along with dollar amounts (increase/decrease). Budget Policies - General and specific guidelines adopted by the Council that governs the financial plan's preparation and administration. Building Permit - Fee required for new construction or for any alteration or addition to a residence or commercial building. The fee is based on square footage and valuation. Electrical or plumbing/mechanical work will require a similar permit. Business License Tax - A tax imposed on those conducting business within the Town limits. Business License Tax is a non-regulatory tax implemented for the purpose of raising revenue to support General Fund activities. Capital Acquisitions/Assets – See “Fixed Assets.” G - 9  GLOSSARY  Capital Expenditures - Funds spent for the construction, improvement, or rehabilitation of Town infrastructure. Capital Improvement Program (CIP) - The plan or schedule of expenditures for major construction of roads, sidewalks, Town facilities and/or park improvements and for the purchase of equipment. The Town of Los Gatos' CIP follows a five-year schedule. Although the Town adopts the CIP budget in a process that is separate from the adoption of the budget, the budget incorporates the first-year of the five-year CIP. Capital Projects - Expenditures that have a value of $25,000 or more which result in the acquisition of, construction of, rehabilitation of or additions to, infrastructure and fixed assets with a useful life of at least 5 years at a fixed location. Capital Projects - Expenditures that have a value of $25,000 or more which result in the acquisition of, construction of, rehabilitation of or additions to, infrastructure and fixed assets with a useful life of at least 5 years at a fixed location. Depreciation – The process of allocating the total cost of fixed assets over each period of their usefulness to the government. Capital Projects Fund - In governmental accounting, a fund that accounts for financial resources to be used for the acquisition or construction of capital facilities. The total cost of a capital project is accumulated in a single expenditure account which accumulates until the project is completed, at which time the fund ceases to exist. Cash Basis Accounting - A basis of accounting under which transactions are recognized only when cash is received or disbursed. Certificate of Participation (COP) - A type of financing in which investors purchase a share of the lease revenues of a program rather than the bond being secured by those revenues. The authority usually uses the proceeds to construct a facility that is leased to the municipality, releasing the municipality from restrictions on the amount of debt that they can incur. Community Development Block Grant (CDBG) - Federal grant funds distributed from the U.S. Department of Housing and Urban Development that are passed through to the Town. The Town primarily uses these funds for housing rehabilitation, public improvements and local social programs. Comprehensive Annual Financial Report (CAFR) - The official financial report of the Town. It includes an audit opinion as well as basic financial statements and supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions. Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contingent Liabilities - Items which may become liabilities of the Town but are undetermined at a given date, such as pending lawsuits, unsettled disputed claims, unfilled purchase orders and uncompleted contracts. G - 10  GLOSSARY  Contract Services - Services provided to the Town from the private sector or other public agencies. Debt Service - Payment of the principal and interest on an obligation resulting from the issuance of bonds, notes, or Certificates of Participation (COPs). Debt Service Fund - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Deficit - The excess of liabilities over assets. Department - A major organizational unit of the Town, which has been assigned overall management responsibility for an operation, or a group of related operations within a functional area. In Los Gatos, Department Heads are the chief administrators within a department. Encumbrances - Commitments against an approved budget for unperformed (executory) contracts for goods or services. They cease to be encumbrances when the obligations are paid or otherwise terminated. Enterprise Funds - Established to account for the financing of self-supporting activities of governmental units, which render services on a user charge basis to the general public. Equipment Replacement Fund - This fund is used to account for the replacement of existing fixed assets as equipment, machinery or building improvements become unserviceable or obsolete. Expenditure - The outflow of funds paid or to be paid for an asset obtained or goods and services obtained. Note: An encumbrance is not expenditure; an encumbrance reserves funds to be expended. (See encumbrances.) Fiduciary Funds - Used to account for assets held by the Town acting in a fiduciary capacity for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances and other governing regulations. There are two categories of fiduciary funds: Trust and Agency. Fiscal Year - A 12-month period to which the annual operating budget applies and at the end of which the Town determines its financial position and results of its operations. The Town’s fiscal year runs from July 1st to June 30th. Fixed Assets - Non-consumable assets of long-term nature such as land, buildings, machinery, furniture, and the other equipment. The Town has defined such assets as those with an expected life in excess of one year and value in excess of $10,000. Franchise Fees - Imposed on utility companies for the privilege of doing business in the Town. Fees are usually based upon a percentage of gross revenue derived from business conducted in the Town. Full-time Equivalents (FTE) - The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year. Full-time employees are paid for 2,080 hours in a year equating 1.0 FTE. Correspondingly, a part-time employee who worked 1,040 hours would equate to 0.5 FTE. G - 11  GLOSSARY  Fund - An independent fiscal and accounting entity with a self-balancing set of accounts in which cities record financial transactions relating to revenues, expenditures, assets and liabilities. Each fund type typically has a unique funding source and purpose. Establishing funds enables the town to account for the use of restricted revenue sources and carry on specific activities or pursue specific objectives. Fund Accounting - System used by non-profit organizations, particularly governments. Since there is no profit motive, accountability is measured instead of profitability. The main purpose is stewardship of financial resources received and expended in compliance with legal requirements. Fund Balance - Also known as financial position, fund balance is the excess of current assets over current liabilities, and represents the cumulative effect of revenues and other financing sources over expenditure and other financing uses. GAAP (Generally Accepted Accounting Principles) - Uniform minimum standards for financial accounting and reporting. They govern the form and content of the basic financial statements of the Town. Gann Appropriation Limit - This is the common name of Proposition 4, approved by voters on November 6, 1979 which mandated an appropriation limit on the amount of tax revenues that government jurisdictions may appropriate within a fiscal year. This bill was named after Paul Gann, who was a co- sponsor of the famous Proposition 13 initiative enacted by the voters of California on June 6, 1978 which resulted in a cap on property tax rates in the state, and a prominent author and advocate of this subsequent spending limitation bill. Gas Tax Fund - The Gas Tax Fund is used to account for revenues and expenditures apportioned under the Streets and Highways Code of the State of California. Expenditures may be made for any street related purpose in the Town’s system of streets. General Fund - In governmental accounting, fund used to account for all assets and liabilities of a non- profit entity, except those particularly assigned for other purposes in another more specialized fund. It is the primary operating fund of the Town. General Government - Town Council, Town Manager, Town Clerk’s Office, Town Attorney, Town Treasurer, Personnel, Finance, Planning, Police, Parks and Public Works, and Library. General Liability Self Insurance Fund - The General Liability Self Insurance Fund is used to provide the Town with liability and property insurance. Coverage is provided through the Town’s participation in a joint powers agreement through (ABAG) Associations of Bay Area Governments. General Obligation Bond - A municipal bond backed by the credit and "taxing power" of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. No assets are used as collateral. Government Finance Officers Association (GFOA) - GFOA is the professional association of state/provincial and local finance officers in the United States and Canada, and has served the public finance profession since 1906. Approximately 16,000 GFOA members are dedicated to the sound management of government financial resources. G - 12  GLOSSARY  Governmental Funds - the fund used to account for all assets and liabilities of a government agency, except those particularly assigned for other purposes in another more specialized fund. There are five different types of governmental funds: the general fund (which is the primary operating fund), special revenue funds, debt service funds, capital project funds, and permanent funds. Grant - External contributions, and/or gifts of cash, or other assets typically from another governmental entity to be used or expended for a specific purpose, activity, or facility. An example is Community Development Block grant funding from the Federal Government. Housing Fund (RDA) - Fund is used to account for the 20% set aside property tax increment revenues and the associated expenditures to be used for increasing or improving low and moderate-income housing. Infrastructure - The basic facilities, services, and installations needed for the functioning of a community or society, such as streets and roads, sidewalks, bridges, communications systems, water and power lines, and public institutions including schools, police stations, libraries, and post offices. Interest Income - The prudent investment of idle funds. The types of investments that can be made are limited by the Government Code to protect the safety of taxpayers' money. Intergovernmental Revenue - Revenue received from other governmental agencies and municipalities, such as grants from the State or Federal government. Internal Services Fund - The Internal Service Funds are used to finance and account for special activities and services performed by a designated Town department for other departments on a cost reimbursement basis. Inter-Fund Transfers - When the Town moves money between its various funds, it makes an inter-fund transfer, referred to as transfers-in and transfers-out. In aggregate, transfers in and out offset each other for the fiscal year. Landscape and Lighting Fund - The Town has formed six landscape and lighting district funds established by written consent of the property owners owning all of the property within the boundaries of the district. Levy - To impose taxes, special assessments or service charges for the support of governmental activities. The total amount of taxes, special assessments or service charges imposed by Santa Clara County levying property taxes. Licenses and Permits - Revenues earned by the issuance of licenses or permits levied in accordance with the benefits conferred by the license or permit. Limited Obligation Bond - A bond sold by a municipality to finance projects which are secured by the revenue generated by those projects. Line-Item Budget - A budget that lists detailed expenditure categories (salaries & benefits, office supplies, travel, dues, rents, etc.) separately, along with the amount budgeted for each specified category. The Summary Budget reflects the program rather than line item budgets. The Detail Budget reflects the line-item detail. G - 13  GLOSSARY  Major Fund – Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds for the same item The General Fund is always a major fund. The Town may also select other funds it believes should be presented as major funds. Management Information Services Fund - The Management Information Services Fund is used to account for the costs associated with the Town’s centralized computer system and to distribute these costs to departments using the system on a pro rata basis. Included are costs for hardware and software maintenance and development, computer training and staff support. Modified Accrual Basis - Under this accounting method, revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures for the most part are recognized when the related fund liability is incurred except for prepayments, accumulated employee leave and long-term debt. All governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Motor Vehicle in Lieu Fee - A State fee charged for the privilege of operating a vehicle on public streets. A VLF is levied annually against the market value of a motor vehicle and is imposed by the State “in lieu” of local property taxes. Non-Departmental - This program has the sole purpose of accounting for all expenditures that the Town cannot specifically designate to any operating department within the General Fund. Non-major Fund – Non-major funds are all governmental and enterprises funds that are not classified as major funds. Objective - A statement of specific direction, purpose, or intent based on the needs of the community and the goals established for a specific program or service level. Ordinance - A formal legislative enactment by the Town Council. It has the full force and effect of law within Town boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal standing than a Resolution and is typically codified in a Town's municipal code. Operating Budget - The operating budget is the primary means by which most of the financing of acquisition, spending and service delivery activities of a government are controlled. The use of annual operating budgets is required by law. Other Revenues - Revenues from sources other than those specifically identified that are too immaterial in amount to justify the creation of new revenue account line items Performance Measure - Sets forth a performance objective and a goal for achieving the objective. Personnel Benefits - Those benefits paid by the Town as conditions of employment. Personnel - Town employees. Present Value - The amount that a future sum of money is worth today given a specified rate of return. G - 14  GLOSSARY  Proposition 218 - A statewide initiative passed by the voters of California on November 5, 1996. The initiative provided voters with the right to vote on new taxes. Program - As subdivisions of departments, programs are budgetary or organizational units of government with limited sets of work responsibilities within their respective departments. Programs also serve to increase budgetary accountability. Los Gatos' budget is compiled on a program basis. Property Tax - Imposed on real property (land and permanently attached improvements). The tax is based upon the assessed value of such property. The tax rate may not exceed 1% of assessed value. Proprietary Funds - Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. Public Employees’ Retirement System (PERS) - Provided for the Town's employees, by the State of California. RDA - Redevelopment Agency, while a component unit, the Agency is a legal entity separate from the Town. Redevelopment Agency Fund - Fund is used to account for the proceeds of notes, advances and other forms of indebtedness, and the expenditure of these funds for improvement, reconstruction and redevelopment projects within the specified boundaries of the Town of Los Gatos Redevelopment Agency. Reserve - An account used to indicate that a portion of fund equity is legally restricted for a specific purpose. Resolution - A special order of the Town Council which has a lower legal standing than an ordinance. Resources - Total amounts available for appropriation including estimated revenues, inter-fund transfers, and beginning fund balances. Revenue - Sources of income, which the Town receives during a fiscal year. Examples of revenue include taxes, intergovernmental grants, charges for services, resources forward from the prior year, operating transfers for other funds, and other financing sources such as the proceeds derived from the sales of fixed assets. G - 15  GLOSSARY  Road Impact Fees - Pursuant to Article III of Chapter 15 of the Town Code, the Town collects road impact fees in order to finance road construction and maintenance projects throughout the Town. Article IX of Chapter 15 authorizes the establishment of special fund accounts known as Road Impact #1, Road Impact #2, and Road Impact #3, into which all such fees are deposited. Because the road systems generally follow drainage patterns, the existing drainage basin map boundaries are used to track and expend funds for road construction and maintenance. The amount of each fee collected is based on an estimate of the weight of the loads to be hauled to or from the project and the weight of heavy vehicles to be used in connection with the project. The fee is collected for: Building Permits, Grading and Landscape Permits, Improvement Contracts, and Encroachment permits. Money collected from such fees is to be used solely for design, construction, and repair of town streets and installation of sidewalk curb cut ramps when the level of work as triggers such a requirement provided by the Americans with Disabilities Act, within the prescribed area. Projects will be brought forward on an as needed basis. Sales Tax - 1% is returned to the Town by the State Board of Equalization on a monthly direct deposit basis. Self-Insurance Fund - The Self-Insurance Fund (General Liability) is used to finance and account for the Town’s general liability self-insurance program. Special Assessment Bonds - Bonds payable from the proceeds of special assessment. Special Revenue Fund - In governmental accounting, fund used to account for the proceeds of special revenue sources (other than special assessments, expandable trusts, or for major capital projects) that are legally restricted to expenditure for specified purpose. Service Charge - Charges for specific services rendered. Services and Supplies - Expenditures for services and supplies which are directly related to a department's primary service activities. Sewer Service Charge - Sanitary Sewer Taxes are collected by the West Valley Sanitation District to maintain the Sanitary Sewer Collection System in District's Service Area. The Parks, Forestry and Maintenance Department provide sanitary Sewer collection maintenance within the Town limits. These operating costs are reimbursed to the Town from Sanitary Sewer fees. Successor Agency to the Town of Los Gatos RDA – Effective February 1, 2012, all redevelopment agencies in the State of California were dissolved pursuant to AB 1X 26. Following the provisions of the Dissolution Act, the Town Council of the Town of Los Gatos adopted a resolution accepting for the Town role of Successor Agency to the Redevelopment Agency of the Town of Los Gatos. Supplies - An expenditure classification for articles and commodities purchased for consumption or resale. Taxes - Compulsory charges levied by the Town, County and State for the purpose of financing services performed for the common benefit. Town Code - A book that contains the Town Council approved ordinances currently in effect. The code defines Town policy with respect to areas such as planning, etc. G - 16  GLOSSARY  Transient Occupancy Tax - Imposed on hotels, motels, inns or other lodging facilities. The rate in Los Gatos is 10%. Transfers In/Out - Money transferred from one Town fund to another. Differs from revenues and expenses - see definition of these terms. Workers’ Compensation Fund - The Worker’s Compensation Fund accounts for the cost to provide worker’s compensation insurance coverage to all Town employees in compliance with State of California requirements. G - 17 LIST OF ACRONYMS Following is a list of acronyms common to local government terminology: AB Assembly Bill ABAG Association of Bay Area Governments ADA Americans with Disabilities Act AFIS Automated Fingerprint Identification System AFSCME American Federation of State, County, and Municipal Employees Union ARS Automated Reporting System BMP Below Market Price (Housing) CAFR Comprehensive Annual Financial Report CDBG Community Development Block Grant CEQA California Environmental Quality Act CERT Community Emergency Response Team CLEEP California Law Enforcement Equipment Program CIP Capital Improvement Program COP Certificates of Participation COPS Community Oriented Policing Services CPUC California Public Utilities Commission CSMFO California Society of Municipal Finance Officers CSO Community Services Officer CY Current Year DARE Drug Awareness Resistance Education DART Disaster Aid Response Team DOJ Department of Justice DUI Driving Under the Influence EOC Emergency Operations Center ERAF Educational Revenue Augmentation Fund FEMA Federal Emergency Management Agency FTE Full-Time Equivalent (2080 annual work hours) FY Fiscal Year GAAP Generally Accepted Accounting Principles GASB Governmental Accounting Standards Board GFAR General Fund Appropriated Reserve GFOA Government Finance Officers Association GIS Geographical Information System GO General Obligation (Bond) HCD Housing and Community Development G - 18  ACRONYMS  HHW Household Hazardous Waste HUD Housing & Urban Development HVAC Heating / Ventilation & Air Conditioning IT Information Technology JPA Joint Powers Authority LAIF Local Agency Investment Fund LAWCX Local Agency Workers Compensation Excess (JPA) LLD Landscaping & Lighting District LT Long-Term (as in Long-Term Notes Receivable) MIS Management Information Systems MOU Memorandum of Understanding MVLF Motor Vehicle in Lieu Fee (see also VLF) NPDES National Pollutant Discharge Elimination System OCJP Office of Criminal Justice Planning OES Office of Emergency Services PCI Pavement Condition Index PERS Public Employees’ Retirement System POA Police Officers Association POST Peace Officers Standard Training PPW Parks & Public Works Department PSAP Public Safety Answering Point PY Prior Year RATTF Regional Auto Theft Task Force RDA Redevelopment Agency SB SA Senate Bill Successor Agency SCC Santa Clara County SCCET Santa Clara County Enforcement Team SLESF Supplemental Law Enforcement Services Fund Grant SWAT Special Weapons and Tactics TDA Transportation Development Act TEA Town Employees Association TFCA Transportation Fund for Clean Air TOT Transient Occupancy Tax VLF Motor Vehicles In Lieu Fee (see also MVLF) VIP Volunteers in Policing VTA Valley Transportation Agency WVSD West Valley Sanitation District G - 19 INDEX Acronyms ...................................................................................................................................................... G – 17 Administrative Services Overview ................................................................................................................ D – 21 Annual Budget Resolution ............................................................................................................................ A – 35 Budget Award ............................................................................................................................................... A – 13 Budget Calendar ............................................................................................................................................. A – 30 Budget Message ............................................................................................................................................ A – 1 Budget Process Overview ............................................................................................................................. A – 28 Capital Improvement Program Gas Tax Fund ........................................................................................................................................... E – 33 General Fund Appropriated Reserve Fund (GFAR) ...................................................................................E – 9 Grants and Awards Project Fund............................................................................................................. E – 19 Storm Drain Funds ................................................................................................................................... E – 23 Traffic Mitigation Fund ........................................................................................................................... E – 15 Utility Underground Fund........................................................................................................................ E – 29 Clerk Administration .................................................................................................................................... D – 53 Community Development Department ....................................................................................................... D – 77 Core Goals and Strategic Priorities .............................................................................................................. A – 14 Department / Program List ........................................................................................................................... D – 1 Equipment Replacement Fund ..................................................................................................................... D – 221 Facilities Maintenance Program ................................................................................................................... D – 231 Fee Related Project List ................................................................................................................................ C – 34 Finance ......................................................................................................................................................... D – 45 Financial Policies ........................................................................................................................................... A – 17 Financial Summaries ..................................................................................................................................... C – 1 Departmental Budget Revenues & Expenditures ................................................................................... C – 29 Fund Balance ........................................................................................................................................... C – 25 General Fund Revenues and Expenditures ............................................................................................... C – 16 Operating Transfers ................................................................................................................................. C – 24 Staffing ..................................................................................................................................................... C – 36 Total Revenues and Expenditures ............................................................................................................ C – 4 Fund Descriptions ......................................................................................................................................... A – 13 Gann Appropriation Limit ............................................................................................................................. A – 32 Gann Appropriation Limit Resolution .......................................................................................................... A – 34 Glossary ........................................................................................................................................................ G – 7 History and Culture of Los Gatos .................................................................................................................. B – 1 Human Resources ......................................................................................................................................... D – 39 G - 20 INDEX Index ............................................................................................................................................................. G – 19 Information Technology .............................................................................................................................. D – 65 In-Kind Donations ......................................................................................................................................... C– 33 Investment Policy ......................................................................................................................................... A – 21 Liability Self-Insurance Fund ......................................................................................................................... D – 17 Library Department ...................................................................................................................................... D – 257 Library Trust Fund......................................................................................................................................... D – 291 List of Funds .................................................................................................................................................. G – 1 List of Programs ............................................................................................................................................ G – 2 Long-Term Debt Policies ............................................................................................................................... A – 20 Non-Departmental Budget ........................................................................................................................... D – 59 Non-Point Source Program ........................................................................................................................... D – 237 Office Stores Fund ........................................................................................................................................ D – 75 Organizational Structure Chart ..................................................................................................................... B – 13 Parks & Public Works Department ............................................................................................................... D –175 Police Department ....................................................................................................................................... D – 113 Special Assessment Districts Blackwell Drive Assessment District ......................................................................................................... D – 245 Gemini Court Assessment District ............................................................................................................ D – 249 Hillbrook Drive Assessment District.......................................................................................................... D – 255 Kennedy Meadows Assessment District ................................................................................................... D – 247 Santa Rosa Heights Assessment District .................................................................................................. D – 251 Vasona Heights Assessment District ........................................................................................................ D – 253 Successor Agency to the Los Gatos RDA Debt Administration Fund 2002 COP Debt Schedule ............................................................................................................................ F – 8 2010 COP Debt Schedule ........................................................................................................................... F – 10 Computation of Legal Debt Margin .......................................................................................................... F – 11 Successor Agency to the Los Gatos Redevelopment Agency Overview ........................................................ F – 1 Town Commissions, Committees, and Advisory Boards ............................................................................... B – 14 Town Management Team List ...................................................................................................................... B – 12 Town Offices Town Attorney Administration ................................................................................................................. D – 11 Town Council Administration ................................................................................................................... D – 7 Town Demographics ..................................................................................................................................... B – 6 Town Economic Statistics ............................................................................................................................. B – 10 Vehicle Maintenance Program ..................................................................................................................... D – 225 Workers’ Compensation Fund ...................................................................................................................... D – 71