Desk Item
PREPARED BY: STEPHEN CONWAY
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/04/2019
ITEM NO: 3
DESK ITEM
DATE: JUNE 4, 2019
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: A. ADOPT A RESOLUTION APPROVING THE TOWN OF LOS GATOS FISCAL
YEAR (FY) 2019/20 OPERATING BUDGET AND FY 2019/20 – 2023/24
CAPITAL IMPROVEMENT PROGRAM (CIP), NEW APPROPRIATIONS,
OTHER APPROVED ADJUSTMENTS, MINOR CORRECTIONS,
INCORPORATING AFSCME, TEA, CONFIDENTIAL AND MANAGEMENT
SALARY SCHEDULES; AND CARRY-FORWARD APPROPRIATIONS
B. ADOPT A RESOLUTION APPROVING COMMITMENTS OF FUND BALANCE
UNDER GASB 54
C. ADOPT AN UPDATE TO THE TOWN’S GENERAL FUND RESERVE POLICY
RECOMMENDATION:
A. Adopt a resolution approving the Town of Los Gatos Fiscal Year (FY) 2019/20 Operating
Budget and FY 2019/20 – 2023/24 Capital Improvement Program (CIP), new
appropriations, other approved adjustments, minor corrections, AFSCME, TEA,
Confidential, and Management Salary Schedules, and carry-forward appropriations
B. Adopt a resolution approving commitments of Fund Balance under GASB 54
C. Adopt an update to the Town’s General Fund Reserve Policy
REMARKS:
A Council Member had the following inquiries and responses are provided below.
Is it true that salary and benefits have increased 41.7% since FY 2016/17, or are those
calculations incorrect or miscalculated.?
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SUBJECT: OPERATING AND CAPITAL BUDGETS
DATE: JUNE 4, 2019
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REMARKS (continued):
Beginning with FY 2018/19, all personnel budgeted in Internal Service Funds were moved to the
General Fund, increasing General Fund Salaries and Benefits while decreasing the General Fund
Internal Service Charges by the same amount. Therefore, it is more accurate to calculate the
Salaries and Benefits for all Town funds.
The table below summarizes the Salaries and Benefits numbers by the General Fund and Total
Town Funds.
When comparing the Total Funds FY 2019/20 Proposed Salaries and Benefits to the Total Funds
FY 2016/17 Actual Salaries and Benefits, the increase is 22.8%.
What is the intended use for the $1.3 M that was allocating during the January 2019 Strategic
Priority session? Does staff believe we should pave more streets with those funds or can staff
use those funds for other capital improvements that warrant attention this year?
The intended use is to pick up streets within the $10M deferred street maintenance list. The
Town’s StreetSaver program treats these streets as deferred maintenance because the cost to
reconstruct them is high in comparison with the option of maintaining good streets in good
condition. Nevertheless, those streets need to be addressed at some point. Additional funds
beyond the $2.9M yearly investment level help address streets that are in this deferred
maintenance backlog. Staff supports the use of these funds to begin addressing the
maintenance backlog in street maintenance.
Attachment 8 contains public comment received after 11:01 a.m. Monday, June 3, 2019 and
before 11:00 a.m. Tuesday, June 4, 2019.
Attachments previously received with the Staff Report:
1. Resolution of the Town Council Approving FY 2019/20 Operating Budget and FY 2019/20 –
2023/24 Capital Improvement Program (with Exhibit A)
2. FY 2019/20 Grants and Arts Funding Summary
3. AFSCME, TEA, Confidential, and Management Salary Schedules
4. Resolution of the Town Council of the Town of Los Gatos Approving Commitments of Fund
Balance under GASB 54
5. FY 2018/19 and FY 2019/20 Estimated General Fund Balance Activities
6. General Fund Reserve Policy - Redline
FY 2015/16
Actuals
FY 2016/17
Actuals
FY 2017/18
Actuals
FY 2018/19
Adopted
FY 2018/19
Estimated
FY2019/20
Proposed
General Fund - Salaries and Benefits 21,342,278$ 21,884,855$ 23,574,425$ 27,182,217$ 26,991,828$ 30,915,359$
Total Funds - Salaries and Benefits 22,766,441$ 25,344,865$ 25,296,305$ 27,347,094$ 27,143,005$ 31,122,995$
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SUBJECT: OPERATING AND CAPITAL BUDGETS
DATE: JUNE 4, 2019
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Attachments previously received with the Addendum:
7. Public Comments Received before 11:00 a.m. Monday, June 3, 2019
Attachments received with the Desk item:
8. Public Comments Received 11:01 a.m. Monday, June 3, 2019 and before 11:00 a.m.
Tuesday, June 4, 2019