06 Attachment 1- FY 20-21 Proposed Operating and Capital BudgetCALIFORNIA
T ĔĜē Ĕċ L ĔĘ G ĆęĔĘ
Operating & Capital Summary Budget
Fiscal Year 2020/21 ATTACHMENT 1
Cover Photos: Constantino, Evie Julian
TOWN OF LOS GATOS
CALIFORNIA
Proposed Operating and Capital
Summary Budget
for
Fiscal Year July 1, 2020 to June 30, 2021
Town Council
Marcia Jensen .............................................................. Mayor
Barbara Spector .................................................... Vice Mayor
Rob Rennie .................................................. Council Member
Marico Sayoc ............................................... Council Member
Vacant.......................................................... 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 2020/21
Table of Contents
INTRODUCTION
Town Manager’s Budget Message ................................................................................................................. A – 1
Budget Award ................................................................................................................................................. A – 25
Core Goals and Strategic Priorities ................................................................................................................. A – 9
Fund Descriptions ........................................................................................................................................... A – 27
Financial Practices .......................................................................................................................................... A – 31
General Fund Reserve Policy .......................................................................................................................... A – 35
Long-Term Debt Policy ................................................................................................................................... A – 41
Investment Policy ........................................................................................................................................... A – 45
IRS Section 115 Pension Trust and OPEB Trust Investment Policy ................................................................. A – 55
Budget Process Overview ................................................................................................................................ A –59
Budget Calendar ............................................................................................................................................. A – 62
Fiscal Year Surplus Flow of Funds ................................................................................................................... A – 65
Forecast Assumptions .................................................................................................................................... A – 21
Gann Appropriation Limit .................................................................................................................................. N/A
Resolution Adopting the Gann Appropriation Limit .......................................................................................... N/A
Resolution Adopting the Town’s Annual Budget .............................................................................................. N/A
TOWN PROFILE
History and Culture of Los Gatos ..................................................................................................................... B - 1
Town Statistics ................................................................................................................................................. B - 6
Town Management ......................................................................................................................................... B - 11
Town Organizational Chart .............................................................................................................................. B - 12
Town Commissions, Committees, and Advisory Boards ................................................................................. B - 13
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 - 8
Total Town Revenue Summary – by Fund ....................................................................................................... C - 15
Total Town Expenditure Summary – by Fund ................................................................................................. C - 17
Total Town Revenue Summary – by Category ................................................................................................. C - 19
Total Town Expenditure Summary – by Category ........................................................................................... C - 21
General Fund Revenues and Expenditures
General Fund Revenues – by Department ...................................................................................................... C - 23
General Fund Expenditures – by Department ................................................................................................. C - 24
General Fund Revenues – by Category ............................................................................................................ C - 25
General Fund Expenditures – by Category ...................................................................................................... C - 27
ii
TOWN OF LOS GATOS
OPERATING AND CAPITAL SUMMARY BUDGET
FISCAL YEAR 2020/21
Table of Contents page 2
General Fund Tax Revenues – Santa Clara County Cities Per Capita .............................................................. C – 29
General Fund Revenues and Expenditures
General Fund Tax Revenues – 10 Year History ................................................................................................ C - 30
General Fund – Fund Balance Activity ............................................................................................................. C - 31
Operating Transfers
Schedule of Interfund Transfers ...................................................................................................................... C - 33
Fund Balance
Fund Balance Activity Summary - by Fund ...................................................................................................... C - 34
Fund Balance - 5 Year Comparative Balances ................................................................................................. C - 36
Departmental Budgets
Department Revenues – by Program ............................................................................................................. C – 38
Department Expenditures – by Program ........................................................................................................ C - 40
In Kind Donations
In Kind Donations ........................................................................................................................................... C – 42
Fee Related Project List .................................................................................................................................. C - 43
Staffing
Departmental Staff – by Fund ........................................................................................................................ C - 45
Summary of FTEs – by Department ................................................................................................................. C - 46
5 Year History of Funded Positions –by Department ...................................................................................... C - 47
Summary of Personnel Changes ...................................................................................................................... C - 48
Positions by Home Department ..................................................................................................................... C – 52
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 2020/21
Table of Contents page 3
ADMINISTRATIVE SERVICES
Administrative Services Overview ................................................................................................................. D - 21
Town Manager’s Office Administration ........................................................................................................ D - 27
Human Resources .......................................................................................................................................... D - 43
Finance .......................................................................................................................................................... D - 51
Clerk Administration ...................................................................................................................................... D - 59
Information Technology Staffing ................................................................................................................... D - 65
Non-Departmental ........................................................................................................................................ D - 71
Internal Service Funds
Information Technology Fund ....................................................................................................................... D - 77
Workers’ Compensation Fund ....................................................................................................................... D - 81
Office Stores Fund ......................................................................................................................................... D - 85
COMMUNITY DEVELOPMENT DEPARTMENT
Community Development Department Overview .........................................................................................D - 87
Community Development Administration ....................................................................................................D - 93
Development Review ....................................................................................................................................D - 97
Advanced Planning ....................................................................................................................................... D - 103
Building & Inspection Services ..................................................................................................................... D - 107
Code Compliance Program ........................................................................................................................... D - 113
BMP Housing Program ................................................................................................................................. D - 117
Pass-Through Accounts ............................................................................................................................... D - 121
POLICE DEPARTMENT
Police Department Overview ....................................................................................................................... D - 123
Police Administration ................................................................................................................................... D - 131
Records and Communications ...................................................................................................................... D - 137
Personnel and Community Services ............................................................................................................. D - 143
Patrol ............................................................................................................................................................ D - 149
Traffic ............................................................................................................................................................ D - 155
Investigations .............................................................................................................................................. D - 161
Parking Management .................................................................................................................................. D - 167
Pass-Through Accounts ............................................................................................................................... D - 173
Special Revenue Funds
Operating Grants .......................................................................................................................................... D - 175
iv
TOWN OF LOS GATOS
OPERATING AND CAPITAL SUMMARY BUDGET
FISCAL YEAR 2020/21
Table of Contents page 4
PARKS & PUBLIC WORKS DEPARTMENT
Parks & Public Works Department Overview ............................................................................................... D – 179
Parks & Public Works Administration ........................................................................................................... D – 187
Engineering Program Services ...................................................................................................................... D – 191
Engineering Development Services .............................................................................................................. D – 199
Park Services ................................................................................................................................................ D – 205
Environmental Services ................................................................................................................................ D – 211
Streets and Signals........................................................................................................................................ D – 217
Property Damage .......................................................................................................................................... D – 225
Vehicle Maintenance Management ............................................................................................................. D – 227
Facilities Maintenance Staffing .................................................................................................................... D – 231
Pass-Through Accounts ................................................................................................................................. D – 233
Internal Service Funds
Equipment Replacement Fund ..................................................................................................................... D – 235
Vehicle Maintenance Fund ........................................................................................................................... D – 239
Facilities Maintenance Fund ......................................................................................................................... D – 243
Special Revenue Funds
Non-Point Source Program ........................................................................................................................... D – 247
Assessment Districts ..................................................................................................................................... D – 253
LIBRARY DEPARTMENT
Library Department Overview ...................................................................................................................... D - 269
Library Administration .................................................................................................................................. D - 275
Adult Services ............................................................................................................................................... D - 281
Youth Services .............................................................................................................................................. D - 287
Acquisitions & Cataloging ............................................................................................................................. D - 293
Circulation / System Administration ............................................................................................................ D - 297
Trust and Agency Funds
Library Trust Fund......................................................................................................................................... D - 301
Clelles Ness Trust Fund ................................................................................................................................. D - 303
Susan McClendon Trust Fund ....................................................................................................................... D - 305
Barbara Jones Cassin Trust Fund .................................................................................................................. D - 307
v
TOWN OF LOS GATOS
OPERATING AND CAPITAL SUMMARY BUDGET
FISCAL YEAR 2020/21
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 - 7
SA - Debt Service Program ............................................................................................................................... F - 9
2002 COP Debt Schedule ............................................................................................................................. F - 11
2010 COP Debt Schedule ............................................................................................................................. F - 13
Computation of Legal Debt Margin ............................................................................................................. F - 14
REFERENCE MATERIALS
List of Funds .................................................................................................................................................... G - 1
List of Programs .............................................................................................................................................. G - 2
List of Department Programs by Funding Source ........................................................................................... G - 7
Glossary .......................................................................................................................................................... G - 9
List of Acronyms ............................................................................................................................................. G - 18
Index ............................................................................................................................................................... G - 20
Fund Descriptions ............................................................................................................................................ G – 1
List of Funds ...................................................................................................................................................... G – 4
List of Programs
vi
Introduction
This Page Intentionally Left Blank
A - 1
Town of Los Gatos
CIVIC CENTER 110 E. MAIN STREET LOS GATOS, CA 95030
May 7, 2020
Honorable Mayor and Town Council:
I am pleased to present to you a balanced Fiscal Year (FY) 2020/21 Proposed Operating Budget
for the Town of Los Gatos. I would also like to take this opportunity to thank the current Town
Council as well as past Councils for your proactive and conservative approach to the Town’s
budget and finances over the years. Your fiscal stewardship has put the Town in an enviable
position to manage the unprecedented nature of the COVID-19 pandemic crisis and its associated
economic impacts.
The proposed Budget addresses the Council identified Strategic Priorities and considers other
areas of importance to our community, the Council, and the Town organization. The proposed
Budget also acknowledges the current economic realities associated with the global Covid-19
pandemic and positions the organization for what will likely be the nation’s first recession since
2008. However, the ultimate impact to the organization is not expected to be known until the
depth and breadth of the pending recession is fully understood.
The FY 2020/21 General Fund Budget programs total revenues and reserve transfers of $53.2
million and expenditures and allocations of $53.2 million. The Budget currently anticipates a
slight surplus of $11,905 and maintains existing service levels. This Budget also provides for
limited strategic new investments toward important wildfire vegetation management, critical
improvements to evacuation-related roadways, and other necessary infrastructure
improvements, as the pandemic is not the only threat to our community’s health and safety.
BUDGET DEVELOPMENT CONTEXT
An important aspect of the Town’s budget development process is taking a multi-year approach.
Serving as the foundation of the budget planning process, the Town updates the Five-Year
Financial Forecast beginning in the fall of each year and it is presented to Council in early winter.
The Forecast includes developing assumptions for Town revenues and expenditures with the goal
of defining the expenditure limitations for the forthcoming budget year and forecast period.
On January 21, 2020, the Town Council received the following Five-Year Forecast which became
the basis of Strategic Priority planning and budgetary considerations. As stated in January, a
modest base case revenue growth forecast best reflected the economic environment at the
time. As discussed with the Town Council in January, sensitivity analyses with respect to
revenues and expenditures demonstrate that the Town organization is vulnerable to changes in
forecasted economic conditions.
A - 2
Original 5 Year Forecast
“Base Case”
2020/21
Forecast
($M)
2021/22
Forecast
($M)
2022/23
Forecast
($M)
2023/24
Forecast
($M)
2024/25
Forecast
($M)
Total Revenues,
Transfers & Use of
Reserves
$45.8 $47.3 $48.4 $49.6 $51.2
Total Expenses &
Allocations
$45.3 $45.6 $46.8 $47.3 $48.1
Original Surplus/Deficit $0.5 $1.7 $1.6 $2.3 $3.1
Since the development of that original forecast, the unprecedented economic impacts associated
with the local, national, and global mitigation of COVID-19 have necessitated significant revisions
to growth projections for the Town’s primary revenues of Property Tax, Sales Tax, and Transient
Occupancy Tax (TOT). In close consultation with the Santa Clara County Assessor, Town Sales Tax
consultant MuniServices, and a review of national and regional hospitality research, the following
table illustrates the updated primary revenue growth projections.
2020/21
Forecast
2021/22
Forecast
2022/23
Forecast
2023/24
Forecast
2024/25
Forecast
Original Base Case
Property Tax Growth
Projection
3% 3% 3% 3% 3%
Updated Proposed
Budget Recession
Scenario
2% 0% 3% 3% 3%
Original Base Case
Sales Tax Growth
Projection
MuniService
Base Case
MuniService
Base Case
MuniService
Base Case
MuniService
Base Case
MuniService
Base Case
Updated Proposed
Budget Recession
Scenario
MuniService
COVID-19
Scenario
MuniService
COVID-19
Scenario
MuniService
COVID-19
Scenario
MuniService
COVID-19
Scenario
MuniService
COVID-19
Scenario
Original Base Case
Sales TOT Growth
Projection
0% 0% 0% 0% 0%
Updated Proposed
Budget Recession
Scenario
-15% -5% 0% 0% 0%
A - 3
The net result of these revenue changes alone account for a $1.8 million swing from the original
FY 2020/21 base case revenue projections and an additional $2.6 million revenue reduction in FY
2021/22 projected base case projection.
Net Changes in Revenues to Base Case
2020/21
Forecast ($M)
2021/22
Forecast ($M)
Sales Tax
COVID-19 Scenario
($0.98) ($1.02)
TOT
Shock Scenario
($0.4) ($0.1)
Property Tax
Slow/No Growth Scenario
($0.4) ($1.5)
Totals ($1.78) ($2.62)
In addition to reassessing revenue growth, the Proposed Budget also forecasts anticipated
increases in the Town’s pension obligations. One of the major cost drivers for the Town over the
past decade has been unanticipated increases in pension and other post-employment benefits
(OPEB). The Town’s plans over the past several decades, like all other CalPERS participants, have
experienced unfavorable investment returns, changes in actuarial assumptions, and
demographic changes which have outweighed any positive plan experiences. The outcome of
these unfavorable economic and demographic results is the development of unfunded pension
and OPEB obligations for the Town. According to the 2018 actuarial valuations, the unfunded
actuarial liability for pensions was $59.3 million and $8.7 million for OPEB as of June 30, 2019.
Given recent volatility in financial markets, it is anticipated that CalPERS will not achieve its
assumed investment rate of return of 7% in FY 2019/20. As such, staff modeled what the
anticipated net increases in Unfunded Actuarial Liability (UAL) payments would be under varying
investment return scenarios. As the following table illustrates, while there is no initial impact to
the forecast due to lags in actuarial reporting, increased UAL payments start to erode previous
surpluses projected in the later years of the forecast. With two months left in the 2019/20 fiscal
year, the 0% return scenario most closely approximates CalPERS current return and is used for
this Forecast.
Net Changes in UAL
Payments to Base Case
(millions)
2020/21
Forecast
($M)
2021/22
Forecast
($M)
2022/23
Forecast
($M)
2023/24
Forecast
($M)
2024/25
Forecast
($M)
CalPERS Investment Loss
5% – Additional UAL
N/A N/A ($.07) ($0.15) ($0.22)
CalPERS Investment Loss
0% – Additional UAL
N/A N/A ($0.26) ($0.51) ($0.77)
CalPERS Investment Loss
-5% – Additional UAL
N/A N/A ($0.44) ($0.88) ($1.30)
A - 4
The Town’s conservative budgeting practices have historically yielded modest annual surpluses
which, among other priorities, has provided the Town Council the latitude over the years to
address these increases in pension obligations. To date, the Town has allocated or programmed
approximately $35.0 million in additional discretionary payments towards its pension and OPEB
obligations.
In addition to conservative budgeting practices and proactive additional funding of pension and
OPEB obligations, the Town has also taken a conservative approach to staffing. As the table
below illustrates, since 2001 the Town has reduced its full-time employees by 16.7% to 150 FTE
employees.
In March 2018, the Town Council received a presentation from staff entitled “Preparing for the
Next Recession.” The presentation illustrated how the Town organization utilized expense
reductions almost exclusively during the last two recessions and ultimately downsized the
organization approximately twenty percent. As a result, expense reductions exclusively would
be extremely challenging during the next recession if current high-quality level of services that
the Los Gatos community deserves and has come to expect were to be maintained. As such, a
sales tax increase dedicated exclusively for Los Gatos was identified as one way to help
maintain Town service levels during the next economic downturn. In November 2018, the
voters of Los Gatos approved a 1/8 cent sales tax which generates approximately $1.0 million in
additional ongoing sales tax revenue annually.
In 2019, the Town Council initiated the annexation of 24 unincorporated urban islands within
the Town of Los Gatos. In addition to the efficiencies associated with the uniform provision of
municipal services to island residents, the annexation ended the diversion of property tax
revenue generated within Town limits to the County. The Council initiated annexation resulted
in approximately $1.0 million in ongoing annual property tax revenue for the Town.
A - 5
The combined effect of retaining a tradition of conservative budgeting practices, maintaining
reduced staffing levels, and enhancing ongoing revenue sources prepared the Town well for this
pending recession.
The Town is affected economically by the COVID-19 pandemic and due to the Council’s proactive
efforts over the past few years, the Town is expected to be in a position to maintain the Town’s
high quality services in the short and medium terms. Below is a summary table of the Five-Year
Forecast showing a balanced budget in the next two years and potential deficits in the out years
which are within a reasonable margin that currently could be absorbed without affecting
services. The Town continues to monitor economic indicators and other data. The Council will
be apprised of any needed updates.
COVID-19
Scenario
2020/21
Forecast
($M)
2021/22
Forecast
($M)
2022/23
Forecast
($M)
2023/24
Forecast
($M)
2024/25
Forecast
($M)
2025/26
Forecast
($M)
Total Revenues,
Transfers & Use of
Reserves
$53.2 $45.5 $46.2 $47.7 $48.2 $48.2
Total Expenses &
Allocations
$53.2 $45.5 $46.8 $47.8 $48.9 $49.3
Surplus/Deficit $0.0 $0.0 ($0.6) ($0.1) ($0.7) ($1.1)
FISCAL YEAR (FY) 2020/21 BUDGET BALANCING STRATEGIES
For FY 2020/21 the Proposed Operating Budget was balanced utilizing three primary budget
balancing strategies. The first was to budget salaries for FY 2020/21 at actual salary plus a one-
step increase, which is a departure from previous practice. While 68% of the workforce are
already at top step or one step below top step, this strategy provides budgetary savings of
approximately $550,000.
The second strategy reassessed and recalculated the Internal Service Fund charges for the Town’s
Equipment Replacement and Information Technology Funds. The decreased charges for
Equipment Replacement and Information Technology resulted in approximate savings of $68,000
and $200,000, respectively.
The third strategy, per the Town’s General Fund Reserves Policy, transferred approximately
$800,000 from the Capital/Special Project Reserve. It should be noted that the Capital/Special
Project Reserve transfer was from excess funds after recommended capital project additions
contained in the Proposed Capital Improvement Program.
A - 6
FIVE-YEAR FINANCIAL FORECAST
Similar to prior years, the Five-year Forecast serves as the foundation of the budget planning
process. The Forecast 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 they ultimately
define the expenditure limitations for the upcoming budget year. The 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.
The Five-Year Forecast was developed with a recessionary/COVD-19 scenario. Lower revenues
in the early years have ramifications throughout the forecast period as future revenue growth is
extrapolated off lower initial base revenues. The revenue assumptions are informed by the
County Tax Assessor, the Town’s sales tax consultant, and direct communication with the Town’s
hospitality industry.
On the expenditure side, the Forecast recognizes higher pension costs due to the assumption
that CalPERS will not meet its investment return expectations. This information was determined
in coordination with the Town’s actuarial consultant and CalPERS. In addition, the Town did
scenario testing with a CalPERS cost model to understand the depth and breadth of the pension
cost impact.
As previously mentioned, the Forecast includes a multitude of primary revenue and expenditure
adjustments, the culmination of which is depicted in the Table below.
A - 7
Account Revenue Category 2020/21
Budget
2021/22
Forecast
2022/23
Forecast
2023/24
Forecast
2024/25
Forecast
2025/26
Forecast
4100 Property Tax 14.7$ 15.1$ 15.8$ 16.2$ 16.7$ 16.5$
4110 VLF Backfill Property Tax 4.0 4.0 4.1 4.2 4.3 4.3
4200 Sales & Use Tax 8.0 8.1 8.2 8.4 8.5 8.6
4250 Franchise Fees 2.5 2.6 2.7 2.8 2.9 2.9
4251 Transient Occupancy Tax 2.3 2.2 2.2 2.2 2.2 2.2
4400 Business License Tax 1.3 1.3 1.3 1.4 1.4 1.4
4400 Licenses & Permits 3.1 2.9 3.0 3.0 3.1 3.1
4500 Intergovernmental 1.0 0.7 0.8 0.8 0.9 0.9
4600 Business License Tax 4.0 4.1 4.2 4.2 4.2 4.3
4700 Fines & Forfeitures 0.4 0.4 0.4 0.5 0.5 0.5
4800 Interest 0.6 0.8 0.2 0.7 0.2 0.2
4850 Other Sources 2.3 2.2 2.2 2.2 2.2 2.2
4900 Fund Transfers In 0.6 0.5 0.5 0.5 0.5 0.5
44.8$ 44.9$ 45.6$ 47.1$ 47.6$ 47.6$
Use of Capital/Special Project Reserve - Capital 3.4 0.6 0.6 0.6 0.6 0.6
Use of Pension/OPEB Reserve 4.2 0 0 0 0 0
Use of Capital/Special Project Reserve - Other 0.8 0 0 0 0 0
53.2$ 45.5$ 46.2$ 47.7$ 48.2$ 48.2$
Account Expenditure Category 2020/21
Budget
2021/22
Forecast
2022/23
Forecast
2023/24
Forecast
2024/25
Forecast
2025/26
Forecast
5110 Salary 20.2 19.9 19.9 20.0 20.1 20.1
5120 CalPERS Benefits 7.3 7.3 8.2 8.7 9.0 9.0
5200 All Other Benefits 4.1 4.1 4.2 4.3 4.4 4.5
6211 OPEB Pay as You Go 1.3 1.4 1.4 1.5 1.7 1.8
6000 Operating Expenditures 6.6 5.8 6.1 6.2 6.5 6.5
7200 Grants & Awards 0.2 0.2 0.3 0.3 0.3 0.3
7400 Utilities 0.6 0.6 0.6 0.7 0.7 0.7
8060 Internal Service Charges 2.4 2.7 2.8 3.0 3.2 3.4
8900 Debt Service 1.9 1.9 1.9 1.9 1.9 1.9
44.6$ 44.0$ 45.4$ 46.5$ 47.7$ 48.1$
GASB 45 Retiree Medical Actuarial 0.6 0.5 0.4 0.3 0.2 0.2
Additional Discretionary Payment - Pension 4.6 0.4 0.4 0.4 0.4 0.4
49.8$ 44.9$ 46.2$ 47.2$ 48.3$ 48.7$
Capital Transfers Out to GFAR 3.4 0.6 0.6 0.6 0.6 0.6
Transfer to Internal Service Funds 0 0 0 0 0 0
Pension/OPEB Transfer to Pension Trust Fund 0 0 0 0 0 0
Allocate to Compensated Absences 0 0 0 0 0 0
Surplus 0 0 0 0 0 0
Allocate to Property Surplus Reserve 0 0 0 0 0 0
53.2$ 45.5$ 46.8$ 47.8$ 48.9$ 49.3$
-$ -$ (0.6)$ (0.1)$ (0.7)$ (1.1)$
* Due to rounding of individual categories FY 2020/21 Total Expenditures and Reserve Allocations omits $0.1 million.
NET REVENUES RESERVE TRANSFERS LESS EXPENDITURES &
RESERVE ALLOCATIONS
TOTAL REVENUES, TRANSFERS, AND USE OF RESERVES
TOTAL EXPENDITURES & RESERVE ALLOCATIONS
TOTAL OPERATING REVENUES & TRANSFERS*
TOTAL OPERATING EXPENDITURES
TOTAL OPERATING & DISCRETIONARY EXPENDITURES
Town of Los Gatos General Fund 5-Year Forecast
(in $ million)
A - 8
STRATEGIC GOALS AND PRIORITIES
In January 2020, the Town Council determined the Strategic Priorities for 2020-2022, 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. Even with the significant budgetary revisions outlined in this
Proposed Operating Budget, I am proud to report that many of Council’s primary goals and
priorities continue to be programed.
Several Strategic Priorities are not one-time projects, but rather are ongoing commitments due
to their critical significance in ensuring the Town’s fiscal and infrastructure stability and the safety
and quality of life for Los Gatos residents, businesses, and visitors. These commitments include
continuing to address the Town’s unfunded pension and other post-employment benefits (OPEB)
obligations; developing Measure B transportation projects so the Town is positioned to receive
its fair share of the funds; and fostering emergency preparedness and community resilience.
In terms of capital projects, the Town Council affirmed its interest in investing in bicycle and
pedestrian improvements and implementing elements of the Comprehensive Parking Study. In
addition to capital projects, the Council identified new policy priorities which include preparing
for the Regional Housing Needs Allocation process and exploring regional transportation
solutions to alleviate increased roadway congestion.
Other Strategic Priorities position the Town for its future. The Council continues the General Plan
Update to engage the community in land use planning and policies to guide development for the
next couple of decades. Other Priorities address State housing legal mandates and enhancing
economic and community vitality. As the Town transitions from sheltering-in-place to the
reopening of businesses, the significance of enhancing economic and community vitality are
paramount.
The following illustrates the Strategic Priorities adopted for FY 2020-22. Some of these priorities
were acted upon during FY 2019/20 and the remaining items are included in this Operating and
Capital Budget for FY 2020/21.
A - 9
A - 10
UNDERSTANDING THE BUDGET DOCUMENT
The Operating Budget document includes Town-wide information as well as information specific
to each fund and each Department. The Town receives revenues from different sources, many
of which have restrictions on how they can be used. Separate funds are established to account
for the different types of revenues and allowable uses of those revenues.
The budget is prepared in accordance with Generally Accepted Accounting Principles. The budget
for governmental funds has been prepared on a modified accrual basis. The modified accrual
basis recognizes expenditures when the related fund liability is incurred. Revenues are
recognized when they become both measurable and available. “Measurable” means the amount
of the transaction can be determined and “available” means collectible within the current period
or soon enough thereafter to be used to pay liabilities of the current period.
FY 2020/21 FISCAL OUTLOOK
Overview
The workload and budgetary prioritization process took into account the Town’s current
economic reality 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;
Position for multi-year recession
Continue to make progress on Strategic Priorities identified by the Town Council; and
Identify opportunities to enhance service delivery through new revenue sources,
technology, and open government.
As shown in the chart below, the Proposed Budget is largely funded by the General Fund (68.6%).
A - 11
For Council’s consideration, staff is recommending the following allocations:
• $3,660,342 from the Pension/OPEB Reserve to pay off the 2015 CalPERS Gain/Loss base
and transfer the residual balance to the restricted IRS 115 Pension Trust [California
Employers' Pension Prefunding Trust (CEPPT)].
• $572,158 residual balance from the Pension/OPEB Reserve to the restricted IRS 115
Pension Trust (CEPPT).
• $390,000 annual General Fund Reserve Policy scheduled payment to the Pension/OPEB
Reserve which will be transferred to the restricted IRS 115 Pension Trust (CEPPT).
• $3,401,479 from the General Fund Capital/Special Projects Reserve to fund to the
proposed Capital Improvement Program.
• $1,200,000 from the Winchester property sale to Surplus Property Reserve for future
Council allocation, including but not limited to potential COVID-19 economic impacts in
FY 2019/20 and/or other potentially impacted fiscal years.
• $769,308 from the General Fund Capital/Special Projects Reserve to fund one-time
initiatives in FY 2020/21, including tree services, engineering consultants, temporary
Parking Manager to implement the Comprehensive Parking Study, continuation of a part-
time Code Compliance Officer, and other one-time expenses.
• $35,306 residual balance from the Vehicle Maintenance and Store Reserve to the General
Fund Capital/Special Projects Reserve per the General Fund Reserve Policy.
• $17,762 from the General Fund Capital/Special Projects Reserve to the Budget
Stabilization and Catastrophic Reserves to maintain the required 25% funding level of the
proposed Operating Budget consistent with the General Fund Reserve Policy.
If the Town Council does not agree with these proposed recommendations, the Council should
provide specific guidance as to the allocation of these funds. For example, should the Council
wish to put more resources towards the Pension/OPEB Reserve, then a commensurate reduction
would be needed in the Town’s Capital Improvement Program.
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.
A - 12
General Fund revenue is estimated at $41.3 million in the FY 2020/21 Proposed Budget, excluding
debt service, restricted pension trust activity, and fund transfers. This is a decrease of $1.5
million (3.6%) when compared to the FY 2019/20 Adopted Budget. While Property Tax, Vehicle
License Fee (VLF) backfill property tax, and Franchise Fees are projected to increase, Sales Tax,
Transient Occupancy Tax, Business License Tax, and license and permit revenues are projected
to decrease due to the impacts of the COVID-19 pandemic.
The Town’s General Fund operating budget expenditures for FY 2020/21 are projected to
increase slightly by $0.4 million compared to the prior year’s Adopted Budget (excluding fund
transfers, $4.2 million payment to CalPERS, and debt service). The increase in FY 2020/21 is
primarily attributable to the negotiated one year cost of living adjustment to attract and retain
high performing employees. Other components of the expenditures include employee 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 59.5%
of budgeted General Fund expenditures for FY 2020/21.
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 Insurance, Workers’ Compensation, Facilities Maintenance, and Equipment
Replacement. Staff is proposing reduced charges for the Town’s Equipment Replacement and
Information Technology Funds. The reassessment and recalculation of these funds results in
decreased charges and budgetary savings of approximately $68,000 and $200,000, respectively.
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
A - 13
improve facilities for Town Departments as identified in the five-year Capital Improvement
Program (CIP).
The proposed FY 2020/21 Town-wide expenditures from the Capital Projects Funds is $13.8
million (excluding transfers out) which is inclusive of $5.8 million in General Fund Appropriated
Reserve 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 0.8% of the Town-wide expenditure budget. The Town’s largest Special Revenue
Fund is the Urban Run-Off Source Fund. The total proposed Budget for Special Revenue Funds
for FY 2020/21 is $596,814.
Trust Funds
Trust 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 Funds are comprised of four
trusts established to provide for the servicing of donations and bequests to the Town’s Library
program. The FY 2020/21 budgeted expenditures in this trust fund total $114,455.
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 2020/21 budgeted expenditures in this trust fund
total $3.8 million.
GENERAL FUND RESERVES
The total General Fund Reserves are forecasted at a balance of approximately $21.8 million as of
June 30, 2021. Additional information on the estimated FY 2019/20 and FY 2020/21 year-end
General Fund balances can be found in the Financial Summaries section. As indicated in the next
chart, the General Fund reserves are decreasing from prior years due primarily to previous
programmed payments toward the Town’s unfunded pension/OPEB obligations and transfers to
the CIP program. Transfers to the CIP program include $7.0 million (FY 2016/17), $2.4 million (FY
2017/18), $2.4 million (FY 2018/19), $5.7 million (FY 2019/20), and $3.4 million in FY 2020/21.
Pension/OPEB transfers of note include the $4.5 million California Public Employees Retirement
System (CalPERS) side-fund payoff in June 2014 and $4.8 million in FY 2019/20. In FY 2020/21,
the proposed transfer to CalPERS and the CEPPT Trust is $5.8 million
A - 14
Catastrophic and Budget Stabilization Reserves
As per the Town’s General Fund Reserve Policy and reaffirmed by Council, 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 due to catastrophic
events and mitigating cyclical changes in locally generated revenues from temporary downturns
in the local economy. Staff recommends transferring $16,762 from available prior year-end
saving to meet the required 25% funding level, or $10.8 million total for FY 2020/21.
6/30/2014
Actual
6/30/2015
Actual
6/30/2016
Actual
6/30/2017
Actual
6/30/2018
Actual
6/30/2019
Actual
6/30/2020
Estimated
6/30/2021
Proposed
Restricted for:
Pension 5,015,316$ 639,519$ 1,601,677$
Commited to:
Budget Stabilization 5,450,000$ 5,450,000$ 6,621,808$ 4,969,847$ 5,037,243$ 5,419,222$ 5,427,603$ 5,427,603$
Catastrophic 5,450,000 5,450,000 4,637,406 4,969,847 5,037,243 5,419,222 5,427,603 5,427,603
Pension/OPEB - - 300,000 3,388,913 2,878,913 4,232,500 4,232,500 -
Almond Grove - - 8,459,973 1,801,318 - - - -
Assigned to:
Open Space 562,000 562,000 562,000 562,000 562,000 562,000 410,000 410,000
Sustainability 140,553 140,553 140,553 140,553 140,553 140,553 140,553 140,553
Strategy 2,600,000 2,600,000 129,090 - - -
Capital / Special Projects 10,218,579 9,511,527 4,222,405 8,332,953 14,421,203 13,262,303 7,422,640 3,251,853
Authorized Carryforward 56,741 56,741 99,284 34,852 99,927 413,729 413,729 413,729
Compensated Absences 350,329 2,122,512 1,232,654 1,232,654 1,232,654
To Workers' Compensation 1,232,654
Veh. Maint. & Stores Residual 1,040,375 - -
Surplus Property - 1,200,000 1,200,000
Other 1,001,265 1,032,563 2,715,949 2,727,854
Total General Fund Reserve 22,879,138$ 22,203,384$ 27,643,429$ 27,150,612$ 30,428,684$ 37,970,528$ 29,262,750$ 21,833,526$
General Fund Reserve
A - 15
Pension/OPEB Reserve
Committed fund balance in this reserve is used to fund pension and Other Post-Employment
Benefits (OPEB) unfunded obligations. This reserve is primarily used to house additional
discretionary payments budgeted for future allocation to CalPERS. The Town’s Pension/OPEB
Oversight Committee has determined that additional discretionary payments will be allocated
directly to CalPERS.
With Council direction, upon the close of the fiscal year, the CalPERS/OPEB Reserve receives
$300,000 of the available year-end savings. In FY 2018/19 the Council approved development of
an additional reserve policy to reduce the amortization period for prior amortization bases from
30 years to 20 years. Initial annual programming of $390,000 was established subject to final
adjustment based upon updated CalPERS actuarial valuations. The Council Finance Committee
makes recommendations for the allocation methodology for use of these funds for future Town
Council/Oversight Committee consideration.
Capital / Special Projects
With Council direction, upon the close of the fiscal year, the Capital/Special 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. In FY 2020/21, the amount being allocated to the Capital
Improvement Program is $3.4 million. Approximately $800,000 is proposed to be allocated for
one-time uses in FY 2020/21 as described previously. It is anticipated the Reserve will have
approximately $3.3 million as of June 30, 2021.
Compensated Absences Reserve
A reserve is maintained annually to fund 50% of all vested hours of vacation earnings. It is
anticipated the reserve will have approximately $1.2 million as of June 30, 2021.
Surplus Property Reserve
A reserve established for placing the proceeds from surplus property sales until further Town
Council reallocation. It is anticipated the reserve will have approximately $1.2 million as of June
30, 2021.
Other
The Town has several other smaller reserves that have been classified as other. These reserves
include an authorized carryforward, 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. Please refer to the Financial Summaries section (C-1) for
additional information.
KEY BUDGET ASSUMPTIONS
Revenues
The FY 2020/21 Budget incorporates anticipated impacts of the COVID-19 epidemic and the
subsequent recessionary environment with the General Fund revenues (excluding debt
payments. restricted pension trust activity, and fund transfers in) expected to decrease by $0.6
A - 16
million to $42.3 million from prior year budgeted revenues. Revenue projections for each
category were based upon estimates provided to the Town by the Santa Clara County Assessor,
the Town’s sales tax consultant, and careful examination of revenue trends, patterns, and
industry research.
The net decrease in overall revenues is mostly due to forecasted increases in some revenues such
as property tax and franchise fees. Sales tax, business license tax, licenses and permits, and
transient occupancy tax are projected to decrease in FY 2020/21 and then increase gradually over
time albeit from a lower base. The sales tax projections include the voter approved one-eighth
general purpose sales tax dedicated to the Town of Los Gatos. Revenue collection began in April
2019. Additional details regarding the assumptions used in the development of revenue
estimates can be found in the Forecast Assumptions discussion later in this section.
Expenditures - Staffing
The proposed Budget includes minor adjustments to staffing.
The FY 2020/21 Operating Budget has 161.03 budgeted FTEs, including temporary staff. This
reflects an increase of 0.72 FTE compared to the prior year. The recommended FY 2020/21
staffing levels also reflect the following changes from the prior year’s Adopted Budget:
Administrative Services and Town Offices - The FY 2020/21 budget reflects the remaining
year of a part time, two-year position to assist with the Town’s emergency preparedness
activities and regional emergency management engagement.
Police –The FY 2020/21 budget contains one-time requests for Temporary Parking and
Project Managers to assist with the review and the implementation of the Comprehensive
Parking Study and critical operational technology needs.
Community Development Department (CDD) –The FY 2020/21 budget reflects a one-time
request to continue the part time Code Compliance Officer and an 0.12 FTE increase of an
Associate Planner position.
Parks and Public Works (PPW) – The FY 2020/21 budget also includes a reclassification of a
1.0 FTE Engineer Technician position to a 1.00 FTE Senior Engineer Technician position and a
0.25 FTE increase of an Administrative Assistant position.
Departments
FY 2019/20
Authorized/Funded
Town Staff
Position
FY 2020/21
Authorized/Funded
Town Staff
Position
Town Council 0.50 0.50
Town Attorney 1.88 1.88
administrative Services 20.18 20.18
Community Development 20.08 20.20
Police Department 60.00 60.00
Parks & Public Works 34.50 34.75
Library 12.50 12.50
Total Position 149.63 150
All Hourly Employee Staff Converted to FTE's 10.68 11.03
160.31 161.03
A - 17
Non-Personnel Operating Expenditures
Non-Personnel expenditure budgets were developed based on actual expenditures in prior years,
adjusted for FY 2020/21 funding needs. In light of limited available resources, the FY 2020/21
proposed budgeted non-personnel expenditures are conservative, with additions primarily
limited to non-discretionary, contractually obligated, or mandated increases. Additional details
regarding the assumptions used in the development of the expenditure estimates can be found
in the Forecast Assumptions discussion later in this section.
STATE BUDGET IMPACTS
Preliminary data on the State of California FY 2020/21 Proposed Budget anticipate a $54.3 billion
deficit. The $54.3 billion deficit is driven by three factors: approximately $41 billion in revenue
loss, $7 billion increase in health and human services programs (mainly the state’s Medi-Cal
health program for the poor) and about $6 billion in additional spending, mainly driven by the
state’s response to COVID-19. Full details will be available as part of the Governor’s May Revised
Budget.
Aside from tax payment deferral programs which are largely a question of cash flow, local
revenues are well insulated from the state's budgetary problems. Unlike in prior recessions, local
governments have strong and encompassing constitutional protection from state actions that
might affect revenues and mandates. We can, however, expect substantial impacts in Local
Streets and Roads (LSR) funds including from the Highway Users Tax Account (HUTA) and the SB1
Road Maintenance and Rehabilitation Account (RMRA).
The estimated Gas Tax revenue totals approximately $1.2 million for FY 2020/21 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 CONSIDERATIONS:
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 2019/20 and remitted to the Santa Clara County Central Fire Protection
District for fire protection services is estimated to be approximately $18.7 million.
A - 18
Unfunded Other Post-Employment Benefits (OPEB) and Pension Liabilities
The Town’s pension unfunded actuarial liability (UAL) as of June 30, 2018 (the “date of value” for
our most up to date actuarial valuation from the California Public Employees Retirement System
or “PERS”) is approximately $59.3 million. The Town’s unfunded actuarial OPEB liabilities are
projected to total approximately $8.7 million as of June 30, 2019.
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.
CONCLUSION
While the full effect of the COVID-19 pandemic on the national, State, and local economies
remains uncertain, its impacts to the current budget and Five-Year Forecast are clearly significant.
For this reason, the FY 2020/21 budget proposes positioning to a defensive posture to ensure the
Town’s high service levels are maintained, while also addressing the Town Council’s priorities.
Considering future anticipated deficits, opportunities to enhance service delivery, while lowering
operating costs through resource and workload redeployments and organizational restructuring
will continue to be explored, evaluated, and implemented. As developments unfold at the local
and State level, including additional unanticipated changes in major revenue source distributions
or other unforeseen State revenue emergency orders, these items will be brought to Town
Council’s attention in a timely manner so that any potential budget actions can be taken.
Due to the proactive and conservative fiscal policies of the past, the Town is in an enviable
position to manage the unprecedented nature of the current pandemic crisis. With this budget,
we continue to fund important priorities, including new investments toward important wildfire
vegetation management, critical improvements to evacuation related roadways, and other
necessary infrastructure improvements. In addition, the Proposed Budget provides resources for
the Town Council’s new Strategic Priorities, such as implementation of the comprehensive
parking study, other transportation demand management options, and exploring regional
transportation solutions to alleviate increased roadway congestion.
I wish to thank all of the Departments, including Department Directors and the members of their
management, analytical, and support staff, who worked diligently on the preparation of this
budget document. In addition, I would like to recognize the efforts of the entire Finance
Department and the Assistant Town Manager:
Stephen Conway, Finance Director
Gitta Ungvari, Finance and Budget Manager
Mark Gaeta, Accountant
Maurice De Castro, Accountant
A - 19
Melissa Ynegas, Administrative Analyst
Diane Howard, Payroll Technician
Dorrie Romero, Administrative Technician
Arn Andrews, Assistant Town Manager
Again, I wish to thank the current Council for your fiscal stewardship which has left the Town on
firm footing to navigate the unprecedented nature of the current pandemic crisis.
Respectfully submitted,
Laurel Prevetti
Town Manager
A - 20
A - 21
FORECAST ASSUMPTIONS
REVENUE BASELINE AND PROJECTION FACTORS
Type of
Revenue
Base Line
Estimate
FY 2020/21
Forecast
FY 2021/22
Forecast
FY 2022/23
Forecast
FY 2023/24
Forecast
FY 2024/25
Forecast
Property
Tax/VLF
Backfill
Current
baseline set
by SCC
Assessor
Office May
2020 report.
2% 0% 3% 3% 3%
Annexation
Additional
$1,000,000
starting
FY 2020/21
0% 0% 3% 3% 3%
North 40
Property
Sales
Starting in
2021/22 N/A North 40
Phase 1 Sales
North 40
Phase 1
Sales
3% 3%
ERAF
Current
baseline set
by SCC
Assessor
Office May
2020 report
40% decline
SCCA
recommend
50% of FY
2019/20
anticipated
proceeds
$400K $400K $400K $400K
Sales Tax
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
Sales Tax -
Measure G
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
MuniServices
5/1/2020
COVID-19
Estimates
Franchise Fee
Current
baseline set
by FY 2019/20
Adopted
Budget.
3% 3% 3% 3% 3%
Transient
Occupancy
Tax
Current
baseline set
by FY 2018/19
actual
proceeds
-15% -5% 0% 0% 0%
A - 22
FORECAST ASSUMPTIONS
REVENUE BASELINE AND PROJECTION FACTORS
Type of
Revenue
Base Line
Estimate
FY 2020/21
Forecast
FY 2021/22
Forecast
FY 2022/23
Forecast
FY 2023/24
Forecast
FY 2024/25
Forecast
Business
License Tax
Current
baseline set
by FY 2019/20
Activity
0% 0% 3% 3% 3%
License &
Permits
Current
baseline set
by FY 2019/20
Adopted
Budget.
-8.7% 0% 3% 3% 3%
Town
Services
Current
baseline set
by FY 2019/20
Adopted
Budget.
-7.3% 0% 3% 3% 3%
Fine &
Forfeitures
Current
baseline set
by FY 2019/20
Adopted
Budget.
Varies Varies Varies Varies Varies
Interest
Current
baseline set
by FY 2019/20
Adopted
Budget.
1% 1% 2% 2% 2%
Other Sources
Current
baseline set
by FY 2019/20
Adopted
Budget.
Varies Varies Varies Varies Varies
A - 23
FORECAST ASSUMPTIONS
EXPENDITURE BASELINE AND PROJECTION FACTORS
Beginning in FY 2020/21, the Town is budgeting salaries at the actual salary plus a one-step increase. 68% of the
workforce is already top step or one step below to step. Currently the Town has nine vacant positions and is actively
recruiting eight of these positions. In the Five-Year Forecast, positions are forecasted at the actual rate of pay including
salaries and benefits as of April 1, 2020 and rate is increasing in the actual anniversary date.
*Salary increases are based on actual step increases and approved Memoranda of Understanding with the
bargaining units.
** Benefit increase estimates are provided by CalPERS/Public Employees’ Medical and
Hospital Care Act (PEMHCA)
*** Based on historical trends.
Type of
Expenditure
FY 2020/21
Forecast
FY 2021/22
Forecast
FY 2022/23
Forecast
FY 2023/24
Forecast
FY 2024/25
Forecast
FY 2025/26
Forecast
Salaries*
1% increase
& 2% Non-
PERSable
Cash Bonus
0% 0% 0% 0% 0%
Benefit -
Medical** 7% 7% 7% 7% 7% 7%
Operating
Expenditures*** Varies 3% 3% 3% 3% 3%
Grants & Awards 0% 0% 0% 0% 0% 0%
Utilities*** Varies 3% 3% 3% 3% 3%
Internal Service
Charges***
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Debt Service Debt Service Schedules
A - 24
FORECAST ASSUMPTIONS
The Town’s required employer contribution rate estimates were developed using estimates provided by
each plan’s most recent actuarial valuation received from CalPERS. The employer contribution rates
illustrated below reflect percentages of covered payroll. All plans reflect estimates of increased
contributions beginning in FY 2022/23 related to the current estimate of zero return on investments for
FY 2019/20. Beginning in FY 2021/22, the estimates of employer contributions were credited with an
anticipated reduction associated with the approximate $4.8M 2016 unfunded amortization base paid off
in October 2019 and the approximate $3.7M 2015 unfunded amortization base expected to be paid off
in early FY 2020/21.
Type of
Expenditure
FY 2020/21
Budget
FY 2021/22
Forecast
FY 2022/23
Forecast
FY 2023/24
Forecast
FY 2024/25
Forecast
FY 2025/26
Forecast
Safety
POA 58.98% 67.67% 72.14% 75.91% 79.46% 81.56%
Safety
Management
POA
61.98% 66.67% 75.14% 78.91% 82.46% 84.56%
Safety
POA - PEPRA 15.95% 15.99% 16.58% 17.14% 15.29% 15.71%
Miscellaneous
TEA/Confidential/
Management
34.23% 31.59% 33.66% 35.46% 37.12% 35.50%
Miscellaneous
TEA/Confidential/
Management
PEPRA
37.43%
Separate
PEPRA rate
for
Miscellane
ous has not
been
established
yet by
CalPERS.
36.30% 36.30% 36.30% 42.43% 40.82%
*Safety Classic Rate reflects 3% decrease in employer's contribution rate to reflect 3% contribution as negotiated with the
Town's POA during the collective bargaining process effective FY 2019/20.
A - 25
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 - 26
A - 27
FUND DESCRIPTIONS
The basic accounting and reporting entity for the Town is a fund. A fund is "an independent fiscal and
accounting entity used to record all financial transactions related to the specific purpose for which the
fund was created." Funds are established for the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations, restrictions, or limitations.
Funds used in government are classified into three broad categories: governmental, proprietary, and
fiduciary. Governmental funds include activities usually associated with a typical state or local
government's operations (public safety, general government activities, etc.). Proprietary funds are used
in governments to account for activities often found in the private sector (utilities, stadiums, and golf
courses are prime examples). Trust and Agency funds are utilized in situations where the government is
acting in a fiduciary capacity as a trustee or agent. The various funds are grouped in fund types and
categories as follow:
MAJOR AND NON-MAJOR GOVERNMENTAL FUNDS
These funds support activities usually associated with the governmental entities’ operation (police, fire,
and general government functions).
General Fund
The General Fund is a Major Fund and is the chief operating fund of the Town. All general tax revenues
and other receipts not allocated by law or some other contractual agreement to other funds are
accounted for in the General Fund. Expenditures of this fund include the general operating expenses
traditionally associated with governments such as administration, engineering, and public safety.
Special Revenue Funds
Special Revenues Funds are used to account for specific revenues that are legally restricted to
expenditure for particular purposes. The following funds are Non-Major Special Revenue Funds:
• Non-Point Source Maintenance Fund - budgets and accounts for environmental services such as
storm water management.
• Community Development Block Grant Fund - budgets and accounts for federal Community
Development Block Grant monies.
• Landscape and Lighting Special Assessment District Funds - budgets and accounts for revenues and
expenditures within special districts. The Town provides maintenance of the trees, landscaping,
irrigation systems, lighting, sound wall and fences for improvements in the public right-of-way,
within specific district boundaries.
A - 28
FUND DESCRIPTIONS
Capital Project Funds
Capital Project Funds are used to account for the acquisition, construction, and improvement of capital
facilities other than those financed by proprietary funds. The Town accounts for the following Major
Capital Project Funds:
• General Fund Appropriated Reserve – established to provide resources for capital projects not fully
funded from other sources.
The Town also accounts for the following Non-Major Capital Project Funds:
• Storm Drain Basin Project Funds – established to account for fees paid in conjunction with the
development in three drainage areas.
• Construction Tax Fund – established to levy a tax based upon building additions or alterations. The
types of taxes imposed include Capital Improvement, Utility Underground, and Parks.
• Gas Tax Fund – established to budget and account for revenues and expenditures pertaining to the
maintenance and construction of Town streets.
NON-MAJOR PROPRIETARY FUNDS
There are two classifications of Proprietary Funds: Enterprise Funds and Internal Service Funds.
Enterprise Funds are used to account for activities that are operated in a manner similar to a private
business enterprise, where the cost of the goods or services are to be financed or recovered primarily
through user charges. The Town does not currently utilize Enterprise Funds.
Internal Service Funds
Used to account for the revenues and expenditures of services provided to Town Departments. The
Town has several Non-Major Internal Service Funds:
• Equipment Replacement Fund – established to accumulate monies for the replacement of major
Town equipment and vehicles. When vehicles and equipment are acquired at a cost greater
than $10,000, a normal life span is calculated, and replacement costs are charged directly to the
Departments over that life span with funds accruing to the Equipment Reserve Fund.
• Vehicle Maintenance Fund – established to budget and account for the cost of operating,
maintaining and replacing automotive equipment used by other Town Departments. This fund is
discontinued with the Fiscal Year 2019/20 Budget. Any fund balance was added to the General Fund
Assigned Vehicle Maintenance and Store Residual Reserve.
• Information Technology (IT) Fund – established to budget and account for the cost of maintaining,
replacing, and updating existing information technology used by Town Departments.
• Office Stores Fund - established to budget and account for photocopy equipment, postage and bulk
meter expenses are controlled at one source point and expended to the Departments as they
requisition the goods or services. Photocopies are charged to Departments at $.05/copy. This fund
discontinued with the Fiscal Year 2019/20 Budget. Any fund balance was added to the General Fund
Assigned Vehicle Maintenance and Store Residual Reserve.
A - 29
FUND DESCRIPTIONS
• Workers’ Compensation Fund – established to budget and account for revenues derived from
charges made to operating Departments at rates based on the State Compensation Fund, annually
adjusted to ensure an adequate reserve for future claims. This fund is charged for administrative
costs of settling claims as well as material and other costs of job-related illness or injury.
• The Pooled Liability Assurance Network (PLAN) Self-Insurance Fund - established to ensure an
adequate reserve for future property and liability claims.
FIDUCIARY FUNDS
Fiduciary Funds are 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.
Trust Funds
Accounts for assets held by the Town in a trustee capacity under formal trust agreement. The Town
currently administers the following funds:
• Library Trust Fund - established to account for the accounts for assets held in trust, through receipt
of donations and bequests. Funds received from individuals, services organizations, and a library
specific non-profit organization.
• Clelles Ness Trust – established to account for the accounts for a specific bequest subject to an
agreement made for its use.
• Susan McClendon Trust – established to account for the accounts for a specific bequest subject to
an agreement made for its use.
• Barbara Jones Cassin Trust – established to account for the accounts for a specific bequest subject
to an agreement made for its use.
• RDA Successor Agency Private Purpose Trust Fund – established to account for the assets and
liabilities transferred from the dissolution of the Town’s former Redevelopment Agency and the
continuing operations related to the existing Redevelopment Agency obligations.
Debt Service Funds
A fund established to account for the accumulation of resources for, and the payment of, general long-
term debt principal and interest.
A - 30
A - 31
FINANCIAL PRACTICES
REVENUE
• The Town maintains a diversified revenue base that is locally generated to shelter the community
from fluctuations in any one revenue source.
• The Town audits and collects all locally generated taxes.
• The Town establishes and maintains all user charges and fees based on the cost of providing
services.
BUDGETING and EXPENDITURE
• The Town Council considers and adopts an annual balanced budget effective from July 1st to June
30th of the following calendar year. A balanced budget requires current year operating expenses to
be fully funded by current year revenues and identified undesignated/unreserved fund balance.
• Fund Balance Reserves are used only for non-recurring “one-time” and capital projects and not for
on-going operations.
• Long-term debt is confined to capital improvements or special projects that cannot be financed from
current revenues.
• The Town Manager is authorized to implement the programs as approved in the adopted budget.
Within a specific fund the Town Manager may transfer appropriations between categories,
Departments, projects, and programs as needed to implement the adopted budget.
• With the approval of the Town Manager, unexpected appropriations may be carried forward to the
next fiscal year provided funds have been previously encumbered for a specific purpose.
• The annual budget includes a $100,000 Designated Contingency for non-recurring, unanticipated
expenditures. The Town Manager may approve expenditures from this contingency if needed
during the fiscal year.
• A capital outlay (fixed asset) purchase is any single item or piece of equipment which costs more
than $10,000 and has an expected useful life exceeding one year.
• A mid-year budget report is submitted to the Town Council to provide information on the status of
the Town’s financial condition.
FUND BALANCE RESERVES
Reserves are established, dedicated, and maintained annually to meet known and estimated unknown
future liabilities through actions of the Town Council.
Restricted fund balance is either imposed by law or constrained by grantors, contributors, or other
governmental.
A - 32
FINANCIAL PRACTICES
• IRS 115 Trust is established for the mitigate the Town’s unfunded pension obligation
• The specific Fund Balance Reserves include but are not limited to a restricted Reserve for:
A fully funded workers’ compensation and unemployment insurance
Liability insurance including one year’s premium payment to the insurance carrier or pool
• Reserves are maintained at a minimum of 25% of General Fund ongoing operating expenditures,
equally divided between the Catastrophic Reserve (12.5%) and the Budget Stabilization Reserve
(12.5%).
• When either Reserve drops below the minimum, per Town Council adopted policy, Town Council is
required to develop a one to five-year reserve replenishment plan to meet the minimum threshold
of 25% of General Fund ongoing, operating expenditures, excluding one-time expenditures.
• A Reserve is maintained for the depreciation and replacement of equipment.
• A Reserve is maintained for the maintenance of buildings.
• Pension/Other Post Employment Benefits (Pension/OPEB) Reserve is maintained to use as a
supplemental funding source to pay down unfunded pension and other post employment liabilities.
Amounts that are constrained by the Town’s intent to be used for specific purposes, but are neither
restricted nor committed, should be reported as assigned fund balance. Examples of assigned fund
reserves:
• Compensated Absences – A reserve is maintained annually to fund 50% of all vested hours of
vacation earnings.
• Open Space – Town Council established this reserve in FY 1998/99 with an initial balance of
$500,000 to be used for the preservation of open space, connection of open space trails, the
definition of the southern boundary of the Town with passive open space, and protection of unique
natural features.
• Sustainability – Established by Town Council in FY 2008/09 budget by closing the Solid Waste
Management Fund and placing the initial residual fund balance of $296,554 in a General Fund
reserve dedicated for conservation, recycling, and sustainability.
• Authorized Carry forward - A reserve is maintained for materials and services on approved purchase
order and contracts which were issued but not finalized or fulfilled as of the end of the fiscal year
but for which funds will be carried forward to the following fiscal year.
• Vehicle Maintenance and Stores Residual – A reserve established to hold the residual fund balances
transferred to the Town’s General Fund upon closing the Vehicle Maintenance and Stores Internal
Service Funds for future Council reallocation.
• Surplus Property – A reserve established for placing the proceeds from surplus property sales until
further Town Council reallocation.
A - 33
FINANCIAL PRACTICES
• Capital/Special Projects Reserve – Funds reserved under this category are designated for key
infrastructure and capital/special projects as identified in the Town’s 5-year Capital Improvement
Plan, as there is no ongoing funding source to support the Town’s capital needs. The Council may
also allocate funds from this Reserve for other purposes.
CAPITAL IMPROVEMENT
Capital Improvement Projects are funded by the following revenue sources:
• Available General Fund Reserves
• Gas Taxes
• Construction Fund Fees
Utility
Capital
Parks
• Storm Drain Basin Fees
• Grant Funding
• Other state and federal funding sources as they become available
• The multi-year plan for capital improvements is updated annually. Future capital expenditures will
be projected annually for a 5-year period based on changes in Council priorities or replacement of
the infrastructure.
• The annual Capital Improvement Plan is based on the multi-year Capital Improvement Program.
• The Town coordinates the development of the Capital Improvement Plan with the development of
the Operating Budget.
• The Town identifies the estimated costs and potential funding sources for each capital project
proposed prior to its submittal to the Town Council for approval.
• Capital projects financed by issuing bonds are paid back within a period not to exceed the useful life
of the project.
• The Town Manager is authorized to implement the projects as approved in the adopted Capital
Improvement Plan. Within a specific fund, the Town Manager may transfer appropriations between
projects as needed to implement the adopted Capital Improvement Plan.
A - 34
A - 35
GENERAL FUND RESERVE POLICY
COUNCIL POLICY MANUAL TITLE: General Fund Reserve Policy POLICY NUMBER: 4-03 EFFECTIVE DATE: 05/16/2011 PAGES: 6 ENABLING ACTIONS: REVISED DATES: 02/21/2017; 05/15/2018; 06/04/2019 APPROVED:
PURPOSE
The purpose of this Policy is to establish a target minimum level of designated reserves in the
General Fund to:
• Reduce the financial impacts associated with a disaster or catastrophic event;
• Respond to the challenges of a changing economic environment, including prolonged
downturns in the local, state, or national economy; and
• Demonstrate continued prudent fiscal management and creditworthiness.
BACKGROUND
The Town of Los Gatos has always maintained a high level of General Fund reserves, which has
contributed to superior ratings by credit rating agencies; provided financial flexibility in
economic downturns; contributed a source of investment income for General Fund operations;
and assured financial coverage in the event of future emergencies.
GUIDING PRINCIPLES
Following sound financial practices and adhering to the Government Finance Officers of
America (GFOA) recommendations, the Town’s designated reserves include reserves for known
and unknown contingencies, which take into consideration the:
• Diversity of revenue base
• Volatility of revenue structure
Small Town Service Community Stewardship Future Focus
A - 36
GENERAL FUND RESERVE POLICY
• Changes in political environment
• Frequency of operating surpluses/deficits
• Cash flow management practices
The General Fund Reserve Policy is to be reviewed by the Town Council as part of the annual
operating budget review and adoption process.
POLICY
The fund balance is the difference between the assets and liabilities reported in a governmental
fund. Under current accounting standards, there are five separate components of fund
balance, each of which identifies the extent to which the Town is bound to honor constraints on
the specific purposes for which amounts can be spent.
The following components are defined by Governmental Accounting Standards Board (GASB)
Statement No. 54 and shall constitute the Town’s Fund Balance:
• Nonspendable Fund Balance (inherently nonspendable)
• Restricted Fund Balance (externally enforceable limitations on use)
• Committed Fund Balance (self-imposed limitations on use)
• Assigned Fund Balance (limitation resulting from intended use)
• Unassigned Fund Balance (residual net resources)
The first two components listed above are not specifically addressed in this Policy due to the
nature of their restrictions. The example of nonspendable fund balance is inventory. Restricted
fund balance is either imposed by law or constrained by grantors, contributors, or laws or
regulations of other governments. This Policy is focused on financial reporting of unrestricted
fund balance, or the last three components listed above. These three components are further
defined below.
The accounting policies of the Town consider restricted fund balance spent first when
expenditure is incurred for purposes for which both restricted and unrestricted fund balance is
available. Similarly, when an expenditure is incurred for purposes for which amounts of the
unrestricted classifications of fund balance could be used, the Town considers committed
amounts to be reduced first, followed by assigned amounts and then unassigned amounts.
Committed Fund Balance
The Town Council, as the Town’s highest level of decision-making authority, may commit fund
balance for specific purposes pursuant to constraints imposed by formal action taken, such as
an ordinance or resolution. These committed amounts cannot be used for any other purpose,
A - 37
GENERAL FUND RESERVE POLICY
unless the Town Council removes or changes the specific use through the same type of formal
action taken to establish the commitment. The Town Council action to commit fund balance
needs to occur within the fiscal reporting period; however, the amount can be determined
subsequently at the final close of the fiscal year.
The Town currently sets aside funds into four committed reserves to address unforeseen
emergencies or disasters, significant changes in the economic environment, unfunded pension
and Other Post-Employment Benefits (OPEB) obligations, and key infrastructure and capital
projects. These include the Catastrophic Reserve, Budget Stabilization Reserve, Pension (OPEB)
Reserve and Almond Grove Street Projects Reserve.
Catastrophic Reserve
Funds reserved under this category shall be used to mitigate costs associated with unforeseen
emergencies, such as a disaster or catastrophic event. Should unforeseen and unavoidable
events occur that require the expenditure of Town resources beyond those provided for in the
annual budget, the Town Manager or designee shall have authority to approve Catastrophic
Reserve appropriations. The Town Manager or designee shall then present to the Town Council
a budget amendment confirming the nature of the emergency and authorizing the
appropriation of reserve funds.
The Town currently commits to maintaining this reserve at a minimum of 12.5% of General
Fund ongoing operating expenditures (minus one-time expenditures).
Should a catastrophic disaster occur, the required reserve level should be adequate to meet the
Town’s immediate financial needs. For example, in the event of natural disaster, the
Catastrophic Reserve would provide necessary coverage for basic operating expenses, including
salary and benefits for safety and non-safety Town employees, while still meeting debt service
obligations for approximately 60 days. This time frame would enable the Town to explore other
available cash alternatives, including the use of internal service funds.
Budget Stabilization Reserve
Funds reserved under this category shall be used to mitigate annual revenue shortfalls (actual
revenues less than projected revenues) due to changes in the economic environment and/or
one-time uses that will result in future efficiencies and/or budgetary savings. Examples of
“economic triggers” and one-time uses include, but are not limited to:
An unplanned, major event such as a catastrophic disaster requiring expenditures
which exceed the General Fund Catastrophic Reserve;
Drop in projected/actual revenue of more than five percent in property or sales tax,
or other economically sensitive revenues;
Budgeted revenue taken over by another entity exceeding $100,000;
Loss of businesses considered to be significant sales tax generators;
A - 38
GENERAL FUND RESERVE POLICY
Reductions in projected/actual revenue of more than five percent due to actions by
the state/federal government;
Workflow/technical system improvements to reduce ongoing, personnel costs and
enhance customer service;
One-time maintenance of service levels due to significant economic/budget
constraints; and
One-time transitional costs associated with organizational restructuring to secure
long-term personnel cost savings.
The Town currently commits to maintaining this reserve at a minimum of 12.5% of General
Fund ongoing operating expenditures (minus one-time expenditures).
Should a loss of the Town’s single highest source of sales tax revenue occur, the required
reserve level should be adequate to meet the Town’s immediate financial needs. For example,
the reserve level in the Budget Stabilization Fund would provide for an approximate 3-year
transition period, giving the Town adequate time to realign its operating costs with available
resources, while minimizing service impacts.
Pension/OPEB Reserve
Funds reserved under this category shall be used to further mitigate costs associated with
pension and OPEB unfunded obligations. These funds will be used as a funding source for
potential additional discretionary payments to pay down unfunded pension and other post-
employment obligations, or held in the reserve account to be used as a supplemental funding
source for unanticipated increases to the annual pension and other post-employment costs
resulting from future actuarial assumptions and investment market volatility.
This Policy requires the Town to set aside additional annual discretionary payments (ADPs) to
reduce the effective amortization period of the Town’s pension unfunded actuarial liabilities
from approximately 30 years to 20 years. To facilitate the implementation of this Policy, staff
shall update the estimated unfunded amortization schedules in conjunction with the Town’s
and CalPERS actuaries. This process will coincide with the annual proposed budget process to
determine the additional annual discretionary payment levels required to maintain the goal of
lowering the amortization period from a 30-year to a 20-year amortization period for all prior
year actuarial bases through FY 18/19. The ADP is currently projected at $390,000 for FY
2018/19 (subject to annual updates provided by CalPERS actuaries). Per Council direction ADPs
will either be allocated directly to CalPERS, the Town’s Pension IRS 115 Trust Fund, or the OPEB
IRS 115 Trust Fund.
As part of the proposed budget for each forthcoming fiscal year, staff shall annually
appropriate, to the extent possible, the amount of annual discretionary payments necessary to
maintain the unfunded pension liability amortization shortening from 30 to 20 years.
A - 39
GENERAL FUND RESERVE POLICY
In the event the annual amount required for additional discretionary payments is not available
from operating revenues, the ADP shall be funded by a first lien on any one-time excess
revenues above expenditures once other General Fund required reserve levels have been
established at the appropriate levels as per the Town’s General Fund Reserve Policy. If in any
given year neither budgetary appropriations or a first lien on one-time excess revenues are
sufficient to fund the annual ADP, that years ADP will be accrued to the following year until
paid.
Additionally, effective upon the close of fiscal year 2015/16 and thereafter, if sufficient General
Fund year-end savings are available and targeted reserve levels of 25% (12.5% for Catastrophic
Reserve and 12.5% for Budget Stabilization Reserve) of the next fiscal year’s operating budget
and the funding the following year’s proposed budget ADP have been met, upon final close of
the fiscal year, a minimum of $300,000 annually shall be deposited into the Pension/OPEB
Reserve fund. In addition, Council can assign additional amount deposited to the Pension/OPEB
Reserve with a formal Council action from available year end savings.
Almond Grove Street Project Reserve
Funds reserved under this category shall be used to reconstruct the 10 streets identified in the
Almond Grove Street Rehabilitation Project specification.
The Council awarded the bid in April 2017 allowing for $2.9 million savings within the project.
The Council reappropriated the use of the savings through the FY 2017/18 budget process. The
Almond Grove Reserve should be reduced by the identified $2.9 million savings. The Almond
Grove Street Reserve balance will be reduced at each fiscal year end by the funds expended on
the Almond Grove Street Rehabilitation Project during the fiscal year.
Assigned Fund Balance
Amounts that are constrained by the Town’s intent to be used for specific purposes, but are
neither restricted nor committed, should be reported as assigned fund balance. This Policy
hereby delegates the authority to assign amounts to be used for specific purposes to the Town
Manager for the purpose of reporting to assign amounts in the annual financial statements. A
few examples of assigned fund balance follow.
• Encumbrances – material s and services on purchase order and contracts which are
unperformed.
• Reappropriations – appropriated by the Council for specific projects or programs that
were not completed and not encumbered by year end.
• GASB 31 Adjustments – unrealized investment gains that have been recorded in the
financial statements in accordance with GASB 31.
A - 40
GENERAL FUND RESERVE POLICY
Capital and Special Projects Reserve
Funds reserved under this category are designated for key infrastructure and capital/special
projects as identified in the Town 5-year Capital Improvement Plan, as there is no ongoing
funding source to support the Town’s capital needs.
Unassigned Fund Balance
At the end of each fiscal year, the Finance Department reports on the audited year-end
budgetary fiscal results. Should actual General Fund revenues exceed expenditures and
encumbrances, a year-end operating surplus shall be reported. Any year-end surplus which
results in the General Fund balance exceeding the level required by this Reserve Policy shall be
available for allocation for the following, subject to Council approval:
Offset projected future deficits
Anticipated intergovernmental fiscal impacts
One-time funding, non-recurring needs
Upon funding any of the above reserve levels pursuant to this General Fund Reserve Policy, any
remaining surplus of fiscal year revenues above expenditures shall be placed in the Capital and
Special Projects Reserve for appropriation within the Capital Improvement Program budget.
Replenishment of Unreserved Fund Balance
In keeping with the principles discussed in this Policy, when either fund is used, Town Council
will develop a 1 to 5 year reserve replenishment plan to meet the minimum threshold of 25% of
General Fund ongoing, operating expenditures, excluding one-time expenditures.
/S/ Robert Schultz, Town Attorney
A - 41
LONG TERM DEBT POLICY
COUNCIL POLICY MANUAL TITLE: Long Term Debt Policy POLICY NUMBER: 4-01 EFFECTIVE DATE: 11/2/16 PAGES: 3 ENABLING ACTIONS: 2016-062 REVISED DATES: APPROVED:
PURPOSE
The Long Term Debt Policy sets forth certain debt management objectives for the Town and
establishes overall parameters for issuing and administering the debt for which the Town is
financially obligated or is responsible for managing.
SCOPE
The following long term debt policy sets the considerations for issuing debt and provides
guidance in the timing and structuring of long term debt commitments.
POLICY
GENERAL PRACTICES
1. The Town will seek to maintain and improve the current bond rating in order to
minimize borrowing costs and preserve access to credit.
2. Bond issue proposals are to be accompanied by an analysis defining how the new issue,
combined with current debt, impacts the Town’s debt capacity and conformance with
Town debt policies.
3. Debt Service costs [General Obligation (GO) Bond, Certificate of Participation (COP),
Revenue Bond, and Contractual Debt] are not to exceed 25% of the Town’s operating
revenue.
4. A ratio of current assets to current liabilities of at least 2/1 will be maintained to ensure
the Town’s ability to pay short-term obligations.
Small Town Service Community Stewardship Future Focus
A - 42
LONG TERM DEBT POLICY
THE TOWN WILL CONSIDER THE ISSUANCE OF LONG TERM OBLIGATIONS UNDER
THE FOLLOWING CONDITIONS:
1. The Town will use debt financing only for one-time capital improvement projects and
unusual equipment purchases, and only under the following circumstances:
a. When the project is included in the Town’s five-year capital improvement
program and is in conformance with the Town’s General Plan.
b. When the project is not included in the Town five-year capital improvement
plan, but it is an emerging critical need whose timing was not anticipated in the
five-year capital improvement program, or it is a project mandated immediately
by State or Federal requirements.
c. When the project’s useful life, or the projected service life of the equipment, will
be equal to or exceed the term of the financing.
d. When there are designated revenues sufficient to service the debt, whether
from project revenues, other specified and reserved resources, or infrastructure
cost-sharing revenues.
e. Debt financing (other than tax and revenue anticipation notes) is not considered
appropriate for any recurring purpose such as current operating and
maintenance expenditures.
2. The costs of developing and maintaining the Successor Agency to the Town of Los Gatos
Redevelopment Agency (Agency) long term debt policy will be borne by the Agency and
will be developed in conjunction with amendments to existing redevelopment project
area plans and/or new proposals to issue debt by the Successor Agency to the Town of
Los Gatos Redevelopment Agency.
3. The Town will follow all State and Federal regulations and requirements regarding bond
provisions, issuance, taxation and disclosure.
4. Costs incurred by the Town, such as bond counsel and financial advisor fees, printing,
underwriters’ discount, and project design and construction costs, will be charged to the
bond issue to the extent allowable by law.
5. The Town will monitor compliance with bond covenants and adhere to federal arbitrage
and disclosure regulations.
A - 43
LONG TERM DEBT POLICY
PROCEDURES
This Long Term Debt Policy shall be adopted by resolution of the Town Council. The Treasurer
shall present this Long Term Debt Policy as needed to the Town Council for review to ensure its
consistency with the Town’s long term debt objectives, and current law. Any amendments to
this Long Term Debt Policy shall be approved by the Town Council.
/S/ Robert Schultz, Town Attorney
A - 44
A - 45
INVESTMENT POLICY
COUNCIL POLICY MANUAL TITLE: Investment Policy POLICY NUMBER: 4-02 EFFECTIVE DATE: 11/1/16 PAGES: 8 ENABLING ACTIONS: 2016-063 REVISED DATES: 5/16/17;5/15/2019; 9/3/2019 APPROVED:
PURPOSE
The Town of Los Gatos (the “Town”), incorporated in 1887, is located approximately 60 miles
south of San Francisco, in the southwestern portion of Santa Clara County. The Town operates
under the Council/Manager form of government. The Town Council is the legislative body for
the Town. It has five members elected to serve staggered four year terms. The Town Manager
is appointed by the Town Council.
The Town Council has adopted this Investment Policy in order to establish the investment
scope, objectives, delegation of authority, standards of prudence, reporting requirements,
internal controls, eligible investments and transactions, diversification requirements, risk
tolerance, and safekeeping and custodial procedures for the investment of the funds of the
Town. All Town funds will be invested in accordance with this Investment Policy and with
applicable sections of the California Government Code.
This Investment Policy was originally adopted by the Town Council of the Town of Los Gatos
November 1, 2016. Town Council adopted revisions replace any previous investment policy or
investment procedures of the Town.
SCOPE
This Investment Policy applies to all of the Town's short-term operating funds. These funds are
described in the Town's annual financial report and include, but are not limited to:
General Fund
Small Town Service Community Stewardship Future Focus
A - 46
INVESTMENT POLICY
Special Revenue Funds
Capital Project Funds
Debt Service Funds
Enterprise Fund
Internal Service Funds
Fiduciary Funds
Specifically excluded from this Investment Policy are amounts which are held by a trustee or
fiscal agent and pledged as payment or security for bonds or other indebtedness, obligations
under a lease, or obligations under certificates of participation. Such funds are invested in
accordance with statutory provisions, ordinance, resolution, or indenture governing the
issuance of the obligations. In addition, this Investment Policy is not applicable to the Town's
Deferred Compensation Plan. These investments are directed by each employee participant in
accordance with the rules of the Deferred Compensation Plan.
POLICY
OBJECTIVES
The Town’s funds shall be invested in accordance with all applicable Town policies and codes,
State statutes, and Federal regulations, and in a manner designed to accomplish the following
objectives, which are listed in priority order:
1. Preservation of capital and protection of investment principal.
2. Maintenance of sufficient liquidity to meet anticipated cash flows.
3. Attainment of a market value rate of return.
4. Diversification to avoid incurring unreasonable market risks.
DELEGATION OF AUTHORITY Management responsibility for the Town’s investment program is delegated annually by the
Town Manager to the Town Treasurer/Finance Director (the “Treasurer”) pursuant to California
Government Code Section 36510. The Treasurer may delegate the authority to conduct
investment transactions and to manage the operation of the investment portfolio to other
specifically authorized staff members. The Treasurer shall maintain a list of persons authorized
to transact securities business for the Town. No person may engage in an investment
transaction except as expressly provided under the terms of this Investment Policy.
The Treasurer shall develop written administrative procedures and internal controls, consistent
with this Investment Policy, for the operation of the Town's investment program. Such
procedures shall be designed to prevent losses arising from fraud, employee error,
misrepresentation by third parties, or imprudent actions by employees.
A - 47
INVESTMENT POLICY
The Town may engage the support services of outside investment advisors in regard to its
investment program, so long as it can be demonstrated that these services produce a net
financial advantage or necessary financial protection of the Town's financial resources.
PRUDENCE
The standard of prudence to be used for managing the Town's investments shall be California
Government Code Section 53600.3, the prudent investor standard which states, “When
investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a
trustee shall act with care, skill, prudence, and diligence under the circumstances then
prevailing, including, but not limited to, the general economic conditions and the anticipated
needs of the agency, that a prudent person acting in a like capacity and familiarity with those
matters would use in the conduct of funds of a like character and with like aims, to safeguard
the principal and maintain the liquidity needs of the agency.”
The Town's overall investment program shall be designed and managed with a degree of
professionalism that is worthy of the public trust. The Town recognizes that no investment is
totally without risk and that the investment activities of the Town are a matter of public record.
Accordingly, the Town recognizes that occasional measured losses may occur in a diversified
portfolio and shall be considered within the context of the overall portfolio's return, provided
that adequate diversification has been implemented and that the sale of a security is in the best
long-term interest of the Town.
The Treasurer and authorized investment personnel acting in accordance with written
procedures and exercising due diligence shall be relieved of personal responsibility for an
individual security's credit risk or market price changes, provided that the deviations from
expectations are reported in a timely fashion to the Town Council and appropriate action is
taken to control adverse developments.
ETHICS AND CONFLICTS OF INTEREST
Elected officials and Town employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the investment program
or could impair or create the appearance of an impairment of their ability to make impartial
investment decisions. Elected officials and Town employees shall disclose to the Town Council
any business interests they have in financial institutions that conduct business with the Town
and they shall subordinate their personal investment transactions to those of the Town. In
addition, the Town Manager and the Treasurer shall file a Statement of Economic Interests
each year pursuant to California Government Code Section 87203 and regulations of the Fair
Political Practices Commission.
A - 48
INVESTMENT POLICY
SOCIALLY RESPONSIBLE INVESTING
In addition to and subordinate to the objectives set forth above, investment of funds should be
guided by the following socially responsible investment goals when investing in corporate
securities and depository institutions. Investments shall be made in compliance with the
responsible investment goals to the extent that such investments achieve substantially
equivalent safety, liquidity and yield compared to other investments permitted by state law.
(1) Environmental, Social Responsibility and Governance Concerns
Investments are encouraged in entities that support community well-being through safe and
environmentally sound practices and fair labor practices. Investments are encouraged in
entities that support equality of rights regardless of sex, race, age, disability or sexual
orientation. All corporate securities within the portfolio will be monitored by an independent
third-party who will provide the Town with an ESG (Environmental, Social Responsibility, and
Governance) rating. The Town will prefer companies when appropriate that maintain a higher
ESG rating as opposed to those companies that have a lower ESG Rating.
(2) Community Investments
Investments are encouraged in entities that promote community economic development, and
investments are discouraged in entities that finance high-cost check-cashing and deferred
deposit (payday-lending) businesses. Investments are encouraged in entities that have a
demonstrated involvement in the development or rehabilitation of low-income affordable
housing and have a demonstrated commitment to reducing predatory mortgage lending and
increasing the responsible servicing of mortgage loans. Securities investments are encouraged
in financial institutions that have a Community Reinvestment Act (CRA) rating of either
Satisfactory or Outstanding, as well as financial institutions that are designated as a Community
Development Financial Institution (CDFI) by the United States Treasury Department, or
otherwise demonstrate commitment to community economic development.
AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the Town shall be made in accordance with California
Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to
California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or
pledged to secure payment of the bonds may be invested in securities or obligations described
in the ordinance, resolution, indenture, agreement, or other instrument providing for the
issuance of the bonds. Any revisions or extensions of these code sections will be assumed to be
part of this Investment Policy immediately upon being enacted. However, in the event that
amendments to these sections conflict with this Investment Policy and past Town investment
practices, the Town may delay adherence to the new requirements when it is deemed in the
best interest of the Town to do so. In such instances, after consultation with the Town’s
attorney, the Treasurer will present a recommended course of action to the Town Council for
approval. All investment limits specified in the Policy are calculated at the time of investment.
A - 49
INVESTMENT POLICY
The Town has further restricted the eligible types of securities and transactions as follows:
1. United States Treasury bills, notes, bonds, or certificates with a final maturity not exceeding
five years from the date of trade settlement.
2. Federal Agency Obligations for which the faith and credit of the United States are pledged
for the payment of principal and interest and which have a final maturity not exceeding five
years from the date of trade settlement. There is no limit on the percentage of the
portfolio that can be invested in this category, however, no more than 20% of the town’s
total portfolio shall be invested in the combination of Government National Mortgage
Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home
Loan Mortgage Corporation (FHLMC) mortgage-backed securities.
3. Federal Instrumentality (government sponsored enterprise) debentures, discount notes,
callable securities, step-up securities, and mortgage-backed securities (including FNMA and
FHLMC) with a final maturity not exceeding five years from the date of trade settlement.
There is no limit on the percentage of the portfolio that can be invested in this category,
however, no more than 20% of the town’s total portfolio shall be invested in the
combination of GNMA, FNMA, and FHLMC mortgage-backed securities.
4. Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade
settlement with the highest ranking or of the highest letter and number rating as provided
for by a nationally recognized statistical-rating organization (NRSRO). The entity that issues
the commercial paper shall meet all of the following conditions in either sub-paragraph A.
or sub-paragraph B. below:
A. The entity shall (1) be organized and operating in the United States as a
general corporation, (2) have total assets in excess of five hundred million dollars
($500,000,000) and (3) Have debt other than commercial paper, if any, that is
rated “A” or higher by a NRSRO.
B. The entity shall (1) be organized within the United States as a special purpose
corporation, trust, or limited liability company, (2) have program wide credit
enhancements, including, but not limited to, over collateralization, letters of
credit or surety bond and (3) have commercial paper that is rated “A-1” or
higher, or the equivalent, by a NRSRO.
Purchases of eligible commercial paper shall not exceed:
• 10% of the outstanding commercial paper of any single corporate issuer,
• 5% of the Town’s total portfolio in the commercial paper of any one issuer, and
A - 50
INVESTMENT POLICY
• 25% of the Town’s total portfolio.
5. Eligible Bankers Acceptances with a maturity not exceeding 180 days from the date of trade
settlement, issued by a state or national bank with combined capital and surplus of at least
$250 million, whose deposits are insured by the FDIC, and whose senior long-term debt is
rated at least A or the equivalent by a NRSRO at the time of purchase. No more than 5% of
the Town’s total portfolio shall be invested in banker’s acceptances of any one issuer, and
the aggregate investment in banker’s acceptances shall not exceed 30% of the Town’s total
portfolio.
6. Medium Term Notes (Corporate Notes) issued by corporations organized and operating
within the United States or by depository institutions licensed by the United States or any
state and operating within the United States, with a final maturity not exceeding five years
from the date of trade settlement and rated at least “A” or the equivalent by a NRSRO. No
more than 5% of the Town’s total portfolio shall be invested in the medium-term notes of
any one issuer and the aggregate investment in medium term notes shall not exceed 30% of
the Town’s total portfolio.
7. Municipal & State Obligations:
A. Municipal bonds including registered notes or bonds of any of the 50 states, including
bonds payable solely out of the revenues from a revenue-producing property owned,
controlled, or operated by a state or by a department, board, agency, or authority of
any of the 50 states.
B. In addition, bonds, notes, warrants, or other evidences of indebtedness of any local
agency in California, including bonds payable solely out of the revenues from a revenue-
producing property owned, controlled, operated by the local agency, or by a
department, board, agency, or authority of the local agency.
Municipal bonds must be rated at least “A” or the equivalent by a NRSRO with maturities
not exceeding five years from the date of the trade settlement. No more than 5% of the
Town’s total portfolio shall be invested in “A” rated bonds or in the bonds of any one
municipality. In addition, the aggregate investment in municipal bonds may not exceed
30% of the total portfolio.
8. Certificates of Deposit with a final maturity not exceeding five years from the date of trade
settlement. The aggregate investment in certificates of deposit shall not exceed 30% of the
Town’s portfolio, and no more than 5% of the portfolio shall be held in any one deposit or
allocated to any one issuer. Certificates of Deposit shall be issued by a nationally or state-
A - 51
INVESTMENT POLICY
chartered bank or a state or federal savings and loan association or by a state-licensed
branch of a foreign bank or by a federally licensed branch of a foreign bank provided that
the senior debt obligations of the issuing institution are rated at least “A” or the equivalent
by a NRSRO.
Negotiable certificates of deposit issued by a nationally or state-chartered bank, or by a
federally licensed or state-licensed branch of a foreign bank. Purchases of negotiable
certificates of deposits are subject to the limitations of Section 53601(i), shall be fully
insured by the FDIC with a corresponding FDIC certification number, and shall be delivered
through the Depository Trust Company.
Non-Negotiable certificates of deposit issued by a nationally or state-chartered bank, or by
a federally licensed or state-licensed branch of a foreign bank. Purchases of non-negotiable
certificates of deposit are subject to the limitations of Sections 53601(n) and 53638 and
shall be fully insured by the FDIC with a corresponding FDIC certification number.
Private sector entities may be used to place certificates of deposit subject to the limitations
of Section 53601.8.
9. State of California’s Local Agency Investment Fund (LAIF), pursuant to California
Government Code Section 16429.1. The aggregate amount invested in LAIF shall not exceed
the maximum allowed by the fund.
10. Money Market Funds registered under the Investment Company Act of 1940 that (1) are
“no-load” (meaning no commission or fee shall be charged on purchases or sales of shares);
(2) have a constant net asset value per share of $1.00; (3) invest only in government
securities, and (4) have a rating of at least AAA or the equivalent by at least two NRSROs.
No more than 10% of the Town’s total portfolio shall be invested in money market funds of
any one issuer, and the aggregate investment in money market funds shall not exceed 20%
of the Town’s total portfolio.
Securities that have been downgraded to a level that is below the minimum ratings described
herein may be sold or held at the Town’s discretion. The portfolio will be brought back into
compliance with Investment Policy guidelines as soon as is practical.
The foregoing list of authorized securities and transactions shall be strictly interpreted. Any
deviation from it must be preapproved by resolution of the Town Council.
PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and
known future liabilities. The Town will not invest in securities maturing more than five years from the
A - 52
INVESTMENT POLICY
date of trade settlement, unless the Town Council has by resolution granted authority to make such an
investment at least three months prior to the date of investment.
SELECTION OF BROKER/DEALERS
The Treasurer shall maintain a list of broker/dealers approved for investment purposes, and it
shall be the policy of the Town to purchase securities only from those authorized firms. To be
eligible, a firm must meet at least one of the following criteria:
• Be recognized as a Primary Dealer by the Federal Reserve Bank of New York or have a
primary dealer within their holding company structure; or
• Report voluntarily to the Federal Reserve Bank of New York; or
• Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital
Rule).
In addition, authorized broker/dealers must be licensed by the State of California as a
broker/dealer as defined in Section 25004 of the California Corporations Code.
The Town may engage the services of investment advisory firms to assist in the management of
the portfolio and investment advisors may utilize their own list of approved broker/dealers.
Such broker/dealers will comply with the selection criteria above and the list of approved firms
shall be provided to the Town on an annual basis or upon request.
In the event that an external investment advisor is not used in the process of recommending a
particular transaction in the Town’s portfolio, authorized broker/dealers shall attest in writing
that they have received and reviewed a copy of the this Investment Policy and shall be required
to submit and annually update a Town approved Broker/Dealer Information request form,
which includes the firm’s most recent financial statements.
The Town may purchase commercial paper from direct issuers even though they are not on the
approved broker/dealer list as long as they meet the criteria outlined in Item 4 of the
Authorized Securities and Transactions section of this Investment Policy.
COMPETITIVE TRANSACTIONS
Each investment transaction shall be competitively transacted with authorized broker/dealers.
At least three broker/dealers shall be contacted for each transaction and their bid and offering
prices shall be recorded.
If the Town is offered a security for which there is no other readily available competitive
offering, the Treasurer will document quotations for comparable or alternative securities.
A - 53
INVESTMENT POLICY
SELECTION OF BANKS
The Treasurer shall maintain a list of banks and savings banks approved to provide banking
services for the Town. To be eligible, a bank must be a member of the Federal Deposit
Insurance Corporation, must qualify as a depository of public funds in the State of California as
defined in California Government Code Section 53630.5 and shall secure deposits in excess of
FDIC coverage in accordance with California Government Code Section 53652.
Authorized banks that accept deposits from the Town shall meet high standards with regard to
liquidity, asset quality, profitability and capital adequacy. The Treasurer shall utilize a
commercial bank rating service to perform credit analysis on banks seeking authorization.
Banks that in the judgment of the Treasurer no longer offer adequate safety to the Town shall
be removed from the Town’s list of authorized banks.
SAFEKEEPING AND CUSTODY
The Treasurer shall select one or more financial institutions to provide safekeeping and
custodial services for the Town. A Safekeeping Agreement shall be executed with each
custodian bank prior to utilizing that bank's safekeeping services.
Custodian banks will be selected on the basis of their ability to provide services for the Town's
account and the competitive pricing of their safekeeping related services.
The purchase and sale of securities and repurchase agreement transactions shall be settled on a
delivery versus payment basis. All securities shall be perfected in the name of the Town.
Sufficient evidence to title shall be consistent with modern investment, banking and
commercial practices.
All investment securities, purchased by the Town, will be delivered by book entry and will be
held in third-party safekeeping by a Town approved custodian bank or its Depository Trust
Company (DTC) participant account.
All Fed wireable book entry securities owned by the Town shall be held in the Federal Reserve
System in a customer account for the custodian bank which will name the Town as “customer.”
All DTC eligible securities shall be held in the custodian bank’s DTC participant account and the
custodian bank shall provide evidence that the securities are held for the Town as “customer.”
PORTFOLIO PERFORMANCE
The investment portfolio shall be designed to attain a market rate of return throughout
budgetary and economic cycles, taking into account prevailing market conditions, risk
constraints for eligible securities, and cash flow requirements. The performance of the Town’s
investments shall be compared to the average yield on the U.S. Treasury security that most
A - 54
INVESTMENT POLICY
closely corresponds to the portfolio’s weighted average effective maturity. When comparing
the performance of the Town’s portfolio, its rate of return will be computed net of all fees and
expenses.
REPORTING
No less than quarterly, the Treasurer shall prepare a report of the investment earnings and
performance results of the Town’s investment portfolio. The report shall be submitted to the
Town Clerk within 45 days after the end of each quarter for inclusion as an agenda item at the
next scheduled Town Council meeting. The report shall include the following information:
1. Investment type, issuer, date of maturity, par value and dollar amount invested in all
securities, and investments and monies held by the Town;
2. A market value as of the date of the report (or the most recent valuation as to assets not
valued monthly) and the source of the valuation;
3. Realized and unrealized gains or losses calculated by amortized cost and by fair value.
4. The weighted average maturity of the portfolio and a percentage breakdown of the total
portfolio by maturity.
5. A description of the funds, investments and programs that are under the management of
contracted parties;
6. A statement of compliance with this Investment Policy or an explanation for non-
compliance; and
7. A statement of the ability to meet expenditure requirements for the next six months, and
an explanation of why money will not be available if that is the case.
PROCEDURES
This Investment Policy shall be adopted by resolution of the Town Council. Annually the Town
Manger shall present this Investment Policy to the Town Council for review to ensure its
consistency with the Town’s investment objectives, current law and economic trends. Any
amendments to this Investment Policy shall be approved by the Town Council.
/S/ Robert Schultz, Town Attorney
A - 55
IRS SECTION 115 PENSION TRUST AND OPEB
TRUST INVESTMENT POLICY
COUNCIL POLICY MANUAL TITLE: Town of Los Gatos IRS Section 115 Pension Trust and OPEB Trust Investment Policy POLICY NUMBER: 4-04 EFFECTIVE DATE: 11/7/17 PAGES: 3 ENABLING ACTIONS: 2017-062 REVISED DATES: 12/18/2018; 12/03/2019 APPROVED:
PURPOSE
The Town of Los Gatos (the "Town") has established IRS Section 115 Trusts for both pension
and other post-employment benefits (OPEB). The Pension Trust is administered by the CalPERS
California Employers’ Pension Prefunding Trust (the “CEPPT”) and the OPEB trust is
administered by the California Employers’ Retiree Benefit Trust (the “CERBT”), collectively the
“115 Trusts”. The 115 Trusts provide for funding of pension, retiree health and other post-
employment benefits for the City's eligible retirees. The CEPPT acts as an additional investment
vehicle for the overall funding of pension liabilities associated with the Town’s Miscellaneous
and Safety Pension Plans (the “Pension Plans”). Funds in the 115 Pension Trust may be used for
long-term capital accumulation and appreciation, additional discretionary payments (ADPs),
and pension contribution management strategies. The CERBT is the single investment vehicle
for the Town’s OPEB Plan (“OPEB Plan”). The Town has established the 115 Trusts Oversight
Committee (the “Oversight Committee") to oversee the assets of the 115 Trusts and to perform
the duties and responsibilities set forth in this Investment Policy (IP).
COMPOSITION
The membership of the Oversight Committee is composed of the entire Town Council.
FIDUCIARY DUTIES AND RESPONSIBILITIES
1. The Oversight Committee has exclusive control of the investments of the 115 Trusts.
The Oversight Committee will manage the funds under the Trusts:
Small Town Service Community Stewardship Future Focus
A - 56
IRS SECTION 115 PENSION TRUST AND OPEB TRUST INVESTMENT POLICY
a) solely in the interest of, and for the exclusive purposes of providing for
funding of benefits for participants and their beneficiaries, minimizing employer
contributions thereto, and defraying reasonable expenses of administering the
Trusts;
b) with the care, skill, prudence and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and familiar with these
matters would use in the conduct of an enterprise of a like character and with
like aims; and
c) by diversifying the investments of the Trusts so as to minimize the risk of loss
and to maximize the rate of return, unless under the circumstances it is clearly
prudent not to do so.
2. The work of the Oversight Committee shall be consistent with written statement of
Investment Policy (i.e., this Investment Policy for the Trusts). At least once every three
years, the Oversight Committee will evaluate the appropriateness of the Investment
Policy and, based on such evaluation, either confirm the tenets of the Investment Policy
as then in effect, or amend the 115 Trusts Investment Policy as appropriate. The
Investment Policy must include the following:
a) document investment objectives, performance expectations and investment
guidelines for assets under the Trusts;
b) establish an appropriate investment strategy for managing all assets under
the Trusts, including an investment time horizon, risk tolerance ranges and asset
allocation to provide sufficient diversification and overall return over the long-
term time horizon of the Trusts; and
d) establish periodic performance reporting requirements that will effectively
monitor investment results and ensure that the investment policy is being
followed.
INVESTMENT OBJECTIVES
1. The primary objective of the 115 Trusts investment portfolios is to satisfy the Pension
Plans and OPEB Plan obligations to pay benefits to members and their beneficiaries. To
do so, the 115 Trusts will seek to achieve long-term net returns in excess of the actuarial
investment return assumption while maintaining a reasonable level of investment risk.
2. The funds will be managed as an ongoing concern with a long-term investment horizon,
consistent with demographic profile of the members and beneficiaries of the plans.
A - 57
IRS SECTION 115 PENSION TRUST AND OPEB TRUST INVESTMENT POLICY
3. A range of risks will be managed in connection with the trusts, with an emphasis on the
following:
a) The impact of the investment decisions on the funded status of the plans and
the resulting volatility of contributions.
b) Risk of loss of plan assets.
4. In determining the investment strategies of the 115 Trusts, various factors will be
considered including, but not limited to:
a) The structure and duration of the Pension Plans and OPEB Plan liabilities.
b) Modern Portfolio Theory.
c) The liquidity needs of Pension Plans and OPEB Plan.
INVESTMENT STRATEGY/ASSET ALLOCATION
The Oversight Committee has delegated the investment management function to third parties.
These third parties offer multiple asset allocation options with varying degrees of risk return
profiles. The Oversight Committee has the sole discretion to select the asset allocation which
best aligns with the aforementioned fiduciary standards and investment objectives.
The Oversight Committee will review the selected asset allocations annually. However, the
Oversight Committee can review the current asset allocation selections at any time in light of
market conditions.
MONITORING AND REPORTING
1. Monitor the 115 Trusts investment managers on an ongoing basis and may be
terminated by Oversight Committee at any time due to performance or other
developments that call into question the investment manager’s ability to continue to
effectively manage assets of the 115 Trusts.
2. Review and assess the performance of any Investment Manager(s) appointed by the
Oversight Committee to perform services related to the Trusts quarterly.
3. Measure and evaluate the annual and quarterly performance of investment managers
relative to appropriate long-term performance benchmark.
4. Measure and evaluate annual and quarterly fees.
A - 58
IRS SECTION 115 PENSION TRUST AND OPEB TRUST INVESTMENT POLICY
5. Review quarterly cash flow statements associated with the Trusts.
6. Review the actuarial pension evaluation annually.
7. Review the actuarial OPEB evaluation biennially.
8. Monitor compliance with this Investment Policy for the Trusts.
/S/ Robert Schultz, Town Attorney
A - 59
BUDGET PROCESS OVERVIEW
The Town of Los Gatos adopts an annual Operating and Capital Budget and an annual budget
update of the five year Capital Improvement Plan for the Town of Los Gatos. The budgets
contain summary level information for revenue and expenditure appropriations for the fiscal
year beginning July 1st and ending June 30th. The budget documents are prepared in accordance
with generally accepted accounting principles (GAAP).
Budget Purpose
The Operating and Capital Summary Budget and the Capital Improvement Plan serve as the
Town’s financial plan, as well as a policy document, a communications tool, and an operations
guide. Developed with an emphasis on long range planning, service delivery, and program
management, a fundamental purpose of these documents is to provide a linkage between the
services and projects the Town intends to accomplish, and the resources committed to get the
work done.
The format of the budget facilitates this linkage by clearly identifying the program purpose, key
projects, and work plan goals in relation to revenue and expenditures appropriations.
Basis of Budgeting and Accounting
Developed on a program basis with fund level authority, the Operating and Capital Budgets
represent services and functions provided by the Town in alignment with the resources
allocated during the fiscal year.
The Town’s Governmental Funds consist of the General Fund, Special Revenue Funds, Debt
Service Funds, and Capital Project Funds for both the Town and the Successor Agency.
Basis of Accounting and Budget refers to the timing factor concept in recognizing transactions.
This basis is a key component of the overall financial system because the budget determines the
accounting system. For example, if the budget anticipates revenues on a cash basis, the
accounting system must record only cash revenues as receipts. If the budget uses an accrual
basis, accounting must do likewise. The Town’s budgeting and accounting systems both use a
combination of modified accrual and full accrual basis in the accounting and budget systems.
Governmental Fund budgets are developed using the modified accrual basis of accounting.
Under this basis, revenues are estimated for the period if they are susceptible to accrual, (e.g.
amounts can be determined and will be collected within the current period). Principal and
interest on general long term debt are budgeted as expenditures when due, whereas other
expenditures are budgeted for liabilities expected to be incurred during the current period.
Proprietary Fund budgets use the full accrual basis of accounting whereby revenue budget
projections are developed recognizing revenues expected to be earned during the period, and
A - 60
BUDGET PROCESS OVERVIEW
expenditures are developed for expenses anticipated to be incurred in the fiscal year. The Town
maintains one type of proprietary fund: Internal Service Funds.
The Town’s Fiduciary Funds are also budgeted under the modified accrual basis. The Town
administers five trust funds. The Town does not currently have any agency funds. Trust funds
are subject to trust agreement guidelines.
Summary of Budget Development
The Town develops its budgets with a team-based approach. Town Management and the
Finance Department guide the process through budget development; however program budgets
and work plans are developed with each Department’s Director, Analyst, and Program
Manager’s oversight and expertise. This approach allows for hands-on planning and creates a
clearer understanding for both management and staff of a program’s goals and functions to be
accomplished in the next budget year.
The Development Process
Typically both the Operating and Capital Budget and Capital Improvement Plan (CIP) processes
begin in the winter with the Town Council and Town Manager’s cooperative development and
refinement of initiatives and directives for the upcoming budget year. The CIP is reviewed
during this time to determine funding capabilities, project priorities, and to refine project work
plans. Although the CIP budget document is prepared separately from the Operating and
Capital Budget, CIP program information is incorporated into the Operating and Capital
Summary Budget document through the resulting financial appropriations and service level
requirements.
In January, the budget preparation process begins officially for staff with a budget kickoff
meeting. Budget assumptions, directives and initiatives developed by Town Council and
Management are provided to set the Town’s overall objectives and strategic priorities
determined by the Council. Department staff identifies and analyzes program revenue and
expenditure projections in coordination with Finance/Budget staff and Town Management.
Capital improvement projects are assessed and refined, and CIP funding and appropriation
requirements are finalized.
Through rounds of budget briefings and revisions, the final proposed program budget and work
plans are developed by the end of April; operational and capital work plans are finalized, and
the Finance/Budget staff prepares financial summary information. Per the Town Code, the Town
Manager submits the entire proposed budget package to the Town Council for its consideration,
including Departmental budgets and work plans.
Budget Adoption
During the month of May, the Town Council reviews the proposed Operating and Capital
Summary Budget, and the Capital Improvement Plan for the five-year period in a public hearing.
Notice of the hearing is published in a local newspaper at least ten days prior to the Council’s
public hearing date. The public is invited to participate, and copies of the proposed budgets are
A - 61
BUDGET PROCESS OVERVIEW
available for review this year exclusively on the Town website due to the Shelter in Place Public
Health Order.
Under requirements established in Section 65401 of the State Government Code, the Town’s
Planning Commission also reviews the proposed Capital Improvement Plan and reports back to
the Town Council as to the conformity of the CIP with the Town’s Adopted General Plan.
Final Council-directed revisions to the proposed budget are made and the budget documents
are resubmitted to the Town Council for adoption, consistent with Section 2.30.295(b) of the
Los Gatos Town Code which requires the Town Manager to annually prepare and submit a
budget to the Town Council. This is accomplished in June at a subsequent noticed public
hearing.
The approved resolutions to adopt the CIP and operating budgets and the appropriation
limitation (aka Gann Limit) follow this section with the publication of the adopted budget.
Budget Amendments
During the course of the fiscal year, work plan changes and unanticipated needs necessitate
adjustments to the adopted budgets. The Town Manager is authorized to transfer
appropriations between categories, Departments, projects, and programs within a fund in the
adopted budget, whereas the Town Council holds the authority for budget increases and
decreases and transfers between funds that may be approved at any Town Council meeting.
The Town Council considers the status of the revenues and expenditures as of December 31st
during a Mid-Year Review. This typically occurs in February and the Council may act on
additional budget modifications at that time.
A - 62
BUDGET CALENDAR
September/October/November/December
CIP work plan proposals and development
• Determine project priority
• Prepare upcoming work plan, timing schedules
• Prepare cost estimates
• Determine revenue sources
Determine and refine initiatives and directives for upcoming budget year
Update User Fee Schedule
January
Council Strategic Priorities Established
Prepare Internal Service and Equipment Replacement Fund analyses and schedules, finalize
internal service rates
Budget Kick-off Meeting – General information to staff on:
• Town Council Strategic Goals
• Budget assumptions, directives, initiatives, and goals
• Development of Department and program work plans
• Asset/Internal Services/Staffing request procedures
1st Draft revenue projections due to Budget Office
Analyze budget projections and review with Town Manager
February
1st Draft staffing requests due to Budget Office
Review and finalize staffing positions and requests
1st Draft asset, internal service requests, and expenditure requests due
1st Draft CIP Budget due to Budget Office
Review Internal Service requests with responsible Program Managers
1st Draft Internal Service budgets due to Budget Office
Incorporate approved staffing, assets, internal services and program expenditure requests into a
1st Draft budget
A - 63
BUDGET CALENDAR
March
Review and analyze 1st Draft budget, briefing with Town Manager
1st Draft CIP budget briefing – determine program revisions
1st Draft budget briefings with Town Manager, Department Heads, and Analysts to determine
Department / program revisions
2nd Draft budget revisions and work plans due to Budget Office
2nd Draft briefing and revisions with Town Manager and Departments
Public Hearings for proposed User Fee Schedule
April
Program narratives, financial and supplemental schedules, financial summaries, and charts
prepared
Budget revisions finalized and proposed budgets assembled
Proposed budget briefing with Town Manager
May
Distribute Proposed Operating and CIP budgets to Town Council
Public Hearings for proposed Operating and Capital, and CIP Budgets
Town Council revisions incorporated into budget documents
May/June
Public hearings for final adoption of the Gann Appropriation Limit, Operating and Capital
Budget, and 5-year CIP Budget
Final document preparation of financial and supplemental schedules, charts, reference
materials, etc.
July/August/September
Adopted Operating and CIP Budget documents finalized, printed and distributed
A - 64
ANNUAL BUDGET/CAFR CYCLE
December
January
February
May
June
July
December
Prior FY (2018/19)
June 30, 2019 CAFR finalized and presented for Council approval. CAFR surpluses assigned per the Council Reserve Policy as of June 30, 2019
Council deliberates Strategic Priorities and Budget direction for FY 2020/21. Review of Five-year Forecast and assumptions. Council determines if previously assigned surpluses should be reallocated for FY 2020/21
Council adoption of the FY 2020/21 Operating & Capital Budgets
End of June 30, 2020 CAFR period
June 30, 2020 CAFR finalized and presented for Council approval. CAFR surpluses assigned per the Council Reserve Policy as of June 30, 2020
All Council deliberations and actions include opportunities for public input
Current FY (2019/20)
Next FY (2020/21)
Start of new FY 2020/21 Operating Budget year
Council considers Mid-Year Budget adjustments through 12/31/2019 for FY 2019/20 Budget.
͌͌͌͌
Public hearing on FY 2020/21 Operating & Capital Budgets
A - 65
FISCAL YEAR SURPLUS FLOW OF FUNDS
A - 66
CAPITAL IMPROVEMENT PROGRAM
All Other Funds
• Traffic Mitigation
• Grant
• Storm Drain
• Utility
Underground
• Gas Tax
New Projects and Multiyear Projects (carryforward)
Financial Summaries
This Page Intentionally Left Blank
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 – 8
Total Town Revenues – by Fund ..................................................................................................................... C – 15
Total Town Expenditures – by Fund ............................................................................................................... C – 17
Total Town Revenues – by Category ............................................................................................................. C – 19
Total Town Expenditures – by Category ......................................................................................................... C – 21
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 – 23
General Fund Expenditures – by Department ................................................................................................ C – 24
General Fund Revenues – by Category ........................................................................................................... C – 25
General Fund Expenditures – by Category ..................................................................................................... C – 27
General Fund Tax Revenues per Capita – Cities of Santa Clara County ......................................................... C – 29
General Fund Tax Revenues – 10 Year History of Key Tax Revenues ............................................................ C – 30
General Fund – Fund Balance Activity ............................................................................................................ C – 31
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 – 33
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 – 34
5 Year Comparative Fund Balance – by Fund ................................................................................................. C – 36
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 – 38
Department Expenditures – by Program ........................................................................................................ C – 40
In-Kind Donations
The Town provides in-kind donations to local non-profits as described in this section.
In-Kind Donations ........................................................................................................................................... C – 42
Fee-Related Projects List
The Town has identified potential projects for the use of collected development impact fees.
Fee-Related Projects List ................................................................................................................................ C – 43
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 – 45
Summary of FTEs by Department ................................................................................................................... C – 46
5 Year History of Funded Positions by Department ...................................................................................... C – 47
Summary of Personnel Changes .................................................................................................................... C – 48
Positions by Home Department ..................................................................................................................... C – 52
C - 3
TOTAL BUDGETED FUND ACTIVITY SUMMARY
FY 2020/21
This Total Budgeted Fund Activity Summary schedule groups the Town’s funds into three 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 funds and are held in a fiduciary capacity, with little variation in activity.
The Library Trusts are held for special uses for the Library. RDA Successor Agency Private Purpose Trust Fund is
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. Only those funds
with activity are contained in the summary.
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.
Estimated Revenues,Expenditures,Estimated Fund Balance
Fund Balance
Prior Year Carryfwds Prior Year Carryfwds Fund Balance ChangeFrom 7/1/2020 & Transfers & Transfers 6/30/2021 Prior Year Fund
Operating Funds
Governmental Funds
General Fund*29,262,750$ 45,751,230$ 53,180,454$ 21,833,526$ -25.4%(1)111Housing Conservation Program Fund 177,240 - - 177,240 0.0%211
Community Dev Block Grant Fund (10,587) - - (10,587) 0.0%212
Urban Run-Off Source Fund 237,093 584,394 559,077 262,410 10.7%(2)222
Blackwell Assessment District Fund 13,291 3,210 3,407 13,094 -1.5%(3)231
Kennedy Assessment District Fund 32,526 10,605 8,913 34,218 5.2%232
Gemini Assessment District Fund 31,127 4,750 2,544 33,333 7.1%(3)233
Santa Rosa Assessment District Fund 50,187 5,000 9,472 45,715 -8.9%(3)234
Vasona Assessment District Fund 51,516 10,075 8,644 52,947 2.8%(3)235
Hillbrook Assessment District Fund 20,195 6,040 4,757 21,478 6.4%(3)236Proprietary Funds - Internal Service Funds
Liability Self-Insurance Fund 1,255,255 418,135 668,059 1,005,331 -19.9%(4)611
Worker's Comp Self-Insurance Fund 1,244,533 1,185,906 1,775,300 655,139 -47.4%(4)612
Information Technology Fund 2,536,424 917,219 1,057,875 2,395,768 -5.5%(5)621
Equipment Replacement Fund 1,762,734 297,546 1,396,746 663,534 -62.4%(5)631
Facilities Maintenance Fund 201,465 1,148,757 1,169,722 180,500 -10.4%(3)633
Total Operating Funds 36,865,749$ 50,342,867$ 59,844,970$ 27,363,646$ -25.8%
Trust Funds
Library Trust Fund 43,132$ 70,500$ 90,500$ 23,132$ -46.4%(3)711Ness Bequest tTrust Fund 21,291 - 20,755 536 -97.5%(3)713
Betty McClendon Trust Fund 84,199 700 700 84,199 0.0%714
Barbara J Cassin Trust Fund 354,042 2,900 2,500 354,442 0.1%716
Total Trust Funds 502,664$ 74,100$ 114,455$ 462,309$ -8.0%
Capital FundsGFAR*16,450,872$ 5,286,195$ 5,904,837$ 15,832,230$ -3.8%411
Grant Funded CIP Projects Fund (796,127) 1,479,200 1,479,200 (796,127) 0.0%421
Storm Drain #1 Fund 993,373 49,470 50,000 992,843 -0.1%461
Storm Drain #2 Fund 1,820,150 53,490 50,000 1,823,640 0.2%462
Storm Drain #3 Fund (119,883) 1,380 75,000 (193,503) -61.4%(3)463
Traffic Mitigation Fund 304,646 425,027 425,027 304,646 0.0%471
Construction Tax-Undergrounding Fund 3,062,696 3,863,048 4,436,000 2,489,744 -18.7%(3)472
Gas Tax Fund 311,160 1,233,317 1,316,054 228,423 -26.6%(3)481
Total Capital Projects Funds 22,026,887$ 12,391,127$ 13,736,118$ 20,681,896$ -6.1%
Successor Agency to the Los Gatos RDA Fund
SA- Trust Fund (Budgetary Fund Balance)3,839,819$ 3,829,488$ 3,828,791$ 3,840,516$ 0.0%942 Total Successor Agency of the Los Gatos RDA Fund 3,839,819$ 3,829,488$ 3,828,791$ 3,840,516$ 0.0%
TOTAL ALL FUNDS 63,235,119$ 66,637,582$ 77,524,334$ 52,348,367$ -17.2%
* Major Funds
(1) One-time use of General Fund Capital Reserve for authorized capital projects and other priorities
(2) Increasing cost of Urban Run-off Program driven by State mandates
(3) One-time Capital Project budgeted for FY 2020/21(4) Based on estimated claims activity
(5) Equipment Replacement and Information Technology Fund reflects increased acquisition activities for FY 2020/21
C - 4
TOTAL TOWN
REVENUES AND EXPENDITURES
FUND BALANCE TREND INFORMATION
Note: Expenditures and Transfers Out may exceed Revenues due to the inclusion of planned and carry-forward
capital projects and payments from General Fund reserves to the Town’s Pension/OPEB Trust Funds.
Year End Reference
Revenues &
Transfers In
Expenditures &
Transfers Out
Designated
Fund Balance
2011/12 Actuals 69,593,001$ 75,659,793$ 49,971,883$
2012/13 Actuals 55,847,086$ 53,432,243$ 53,386,677$
2013/14 Actuals 54,528,656$ 55,545,002$ 51,370,329$
2014/15 Actuals 63,470,973$ 56,593,416$ 58,247,886$
2015/16 Actuals 54,234,948$ 50,881,063$ 61,601,771$
2016/17 Actuals 62,873,000$ 62,912,316$ 61,562,455$
2017/18 Actuals 62,358,798$ 63,386,198$ 60,535,055$
2018/19 Actuals 71,882,122$ 65,949,701$ 66,467,476$
2019/20 Estimated 68,561,300$ 71,793,656$ 63,235,119$
2020/21 Proposed 66,637,582$ 77,524,333$ 52,348,367$
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 and prudent fiscal approach has been effective
in reducing operating expenditures, identifying revenue enhancements, and implementing operating efficiencies.
The FY 2020/21 operating budget is a balanced budget, with some use of General Fund reserves dedicated for one-
time uses. The FY 2020/21 Budget anticipates a surplus of $11,905 and maintains existing service levels while
recommending one-time additions in strategically important areas.
Several Strategic Priorities are not one-time projects, but rather are ongoing commitments due to their critical
significance in ensuring the Town’s fiscal and infrastructure stability and the safety and quality of life for Los Gatos
residents, businesses, and visitors. These commitments include continuing to address the Town’s unfunded pension
and other post-employment benefits (OPEB) obligations; developing Measure B transportation projects so the Town
is positioned to receive its fair share of the funds; and fostering emergency preparedness and community resilience.
In terms of capital projects, the Town Council affirmed its interest in investing in bicycle and pedestrian
improvements and implementing elements of the Comprehensive Parking Study. In addition to capital projects, the
Council identified new policy priorities which include preparing for the Regional Housing Needs Allocation process
and exploring regional transportation solutions to alleviate increased roadway congestion.
Other Strategic Priorities position the Town for its future. The Council continues the General Plan Update to engage
the community in land use planning and policies to guide development for the next couple of decades. Other
Priorities address State housing legal mandates and enhancing economic and community vitality. As the Town
transitions from sheltering-in-place to the reopening of businesses, the significance of enhancing economic and
community vitality are paramount.
Specific trends affecting the fund balance forecast include:
REVENUES
The Town organization is vulnerable to changes in forecasted economic conditions. The unprecedented economic
impacts associated with the local, national, and global mitigation of COVID-19 have necessitated significant revisions
to growth projections for the Town’s primary revenues of Property Tax, Sales Tax, and Transient Occupancy Tax
(TOT). In close consultation with the Santa Clara County Assessor, Town Sales Tax consultant MuniServices, and a
review of national and regional hospitality research, the Town is anticipating modest increases in Property Tax, and
Franchise Fees for FY 2020/21 while Sales Tax and TOT are forecasted to decline. General Fund revenues for FY
2020/21 (excluding debt payments and fund transfers in) are 0.2% higher than budgeted prior year revenues.
EXPENDITURES
Salaries and Benefits – As in most municipalities, services are provided directly by employees to the Town’s
residents, businesses, and visitors. As a service delivery enterprise, the cost of salaries and benefits are a
significant portion of the budget. Salaries and benefits account for 41% of the Town’s total expenditures in FY
2020/21 (and 59.5% of General Fund expenditures). The Town endeavors to balance fiscal prudence with the need
to attract and retain the requisite personnel to manage a 21st century municipality. As an example, when fiscal
conditions worsened during the recession of 2008, employees participated in wage freezes and unpaid furloughs
for several years to assist in achieving balanced budgets. After multiple years of such concessions, the Town
discontinued the furlough program in FY 2014/15 and reinstituted general wage increases for both non-sworn and
sworn employees.
Even with unemployment at historic low levels and regional CPI above 3%, the Town and its employee bargaining
groups agreed to a 2.5% across the board salary increase for all three bargaining units, management, and
confidential plus a 1.5% cash bonus (non-PERSable) for non-sworn employees for FY 2018/19, a 3% increase for
C - 6
TOTAL TOWN
REVENUE, EXPENDITURE, AND FUND BALANCE TREND INFORMATION
FY 2019/20, and reopening the third year of the contract for only salary negotiation. The Town Council recently
approved the negotiated 1% cost of living adjustment (COLA) and 2% non-PERSable cash bonus for two bargaining
units, management, and confidential. The same 1% COLA was also approved for temporary employees. These
actions are incorporated in the budget.
The Police Officers’ Association’s current Memoranda of Understanding includes a 4% across the board salary
increases for FY 2019/20. The current POA contract has a salary only reopener in FY 2020/21.
The Town of Los Gatos provides a defined benefit pension plan for all full-time employees and some part-time
benefitted employees as part of their total compensation package. Defined benefit plans provide a fixed, pre-
established benefit payment for employees in retirement based on a formula which takes into account an
employee’s years of service and highest average annual salary. The defined benefit pension has been a standard
part of compensation in governmental organizations and in Los Gatos is in lieu of participating in Social Security. The
Town’s pension plans are administered by the Board of Administration of the California Public Employees’
Retirement System (CalPERS). The Board of Administration is responsible for the management and control of
CalPERS, including the exclusive control of the administration and investment of funds. Sworn employees are covered under the Safety Plan which is a pooled plan, while all other employees are covered in the Miscellaneous
Plan, which is a separate Plan. The Miscellaneous Plan is administered by CalPERS in the Public Employees’
Retirement Fund (PERF). In addition, the Town Council has established an Internal Revenue Code Section 115
Pension Trust as a supplement to the PERF fund. The Town’s IRS 115 Pension Trust is administered by the Town
Pension and OPEB Trusts Oversight Committee.
The Town also provides a healthcare benefit for all eligible employees. The healthcare plan pays all, or a portion of,
health insurance premiums for qualified retirees and their survivors and dependents. Healthcare benefits are also
referred to as Other Post-Employment Benefits or OPEB. The Town’s healthcare plan is an Internal Revenue Code
Section 115 Trust which is administered by the Town Pension and OPEB Trusts Oversight Committee. The Oversight
Committee is responsible for the management and control of the healthcare assets. As a result of collaboration with
the Town’s Bargaining Units during FY 2018/19, all units agreed to the elimination of retiree health benefits
prospectively with the exception of the minimum employer contribution as required by the Public Employees’
Medical and Hospital Care Act (PEMHCA). The PEMHCA minimum represents a significant reduction from the
previous Town paid discretionary retiree payments. As a closed retiree medical plan, over time the Town will see
significant cost savings from this negotiated change. In addition, employees contribute a share of dependent
premiums to assist with cost-containment.
Pension contributions are a portion of the Town’s budget, as the Town is obligated to contribute a mandatory
amount established by the California Public Employees Retirement System (CalPERS) as a percent of salary. Town
employees contribute a percentage of their salary towards their pension in what’s referred to as the normal cost.
The normal cost is the annual cost of service accrual for active employees and can be viewed as the cost of benefits
earned by employees in the current year. The second source of normal cost funding is provided by employer normal
cost contributions. The employer normal cost rates for all cities/towns in CalPERS are established annually by
CalPERS. These rates are the minimum contractual obligations the Town must pay. It should be noted, that the
normal cost calculation assumes all actuarial assumptions will be met going forward. In the event the plans
experience unfavorable economic or demographic assumptions, an unfunded actuarial liability (UAL) may occur. The
cost associated with an unfunded liability is borne solely by the employer. The development of a UAL typically results
from unfavorable investment returns, changes in actuarial assumptions, unfavorable demographic shifts, and other
experiences that differ from those anticipated by the annual actuarial assumptions. As of the 2018 Actuarial
Valuations the Town had a combined UAL for both Pension and OPEB of $68 million as of June 3, 2019.
The Town’s pension plans over the past several decades, like all other CalPERS participants, have experienced
unfavorable investment returns, changes in actuarial assumptions, and unfavorable demographic shifts which have
outweighed any positive plan experiences. As such, the Town’s employer pension contributions are expected to
continue to increase. The Town’s employer contribution rate will increase from 52.22% in FY 2019/20 to 58.97% in
C - 7
TOTAL TOWN
REVENUE, EXPENDITURE, AND FUND BALANCE TREND INFORMATION
FY 2020/21 for classic sworn employees. For all other employees, the rate will increase from 33.18% in FY 2019/20
to 34.23% in FY 2020/21. 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. While this does not
provide immediate cost savings, it is anticipated to reduce future benefit expenditures in the next 10 to 15 years.
Employer contribution rates will increase from 15.02% in FY 2018/19 to 15.94% in FY 2020/21 for PEPRA sworn
employees. The Town prudently recognized the potential impacts to future service delivery if unfunded pension and
OPEB obligations were not addressed and additional funding strategies not identified. To date, the Town has either
allocated or programmed $35 million of additional discretionary payments and other spending strategies to address
the current pension and OPEB unfunded obligations.
For more information about the pension and other benefits offered to Town employees, see:
https://www.losgatosca.gov/44/Human-Resources. For more information about the Towns Pension and OPEB
plans please see:https://www.losgatosca.gov/2479/Town-Pension-and-OPEB-Plans-Information
Other Cost Drivers – A significant cost driver for the Town is energy costs, including fuel for safety and maintenance
vehicles, water for parks and landscaping, natural gas and electricity to heat and cool buildings, and lighting for street
lights, parking lots, and Town facilities. The Town has taken steps to ensure water conservation and recently made energy retrofits to improve efficiency in Town facilities and reduce costs. Fuel costs can be reduced by utilizing
electric and/or hybrid vehicles, and installing electric vehicle charging stations throughout the Town. Staff will
continue to explore energy alternatives to reduce costs.
C - 8
TOTAL TOWN
REVENUES AND EXPENDITURES
GENERAL FUND
2016/17 2017/18 2018/19 2019/20 2020/21
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax 11,518,257$ 12,510,822$ 13,636,099$ 13,860,986$ 14,678,319$
VLF Backfill 3,237,955 3,447,584 3,685,247 3,895,800 3,973,720
Sales & Use Tax 9,171,373 7,592,206 8,158,152 8,104,256 7,987,247
Franchise Fees 2,366,908 2,474,814 2,475,916 2,458,520 2,532,289
Transient Occupancy Tax 2,322,910 2,628,927 2,692,043 1,874,052 2,287,671
Other Taxes 1,720,980 1,686,251 1,526,894 1,294,011 1,300,000
Licenses & Permits 3,042,166 3,011,309 3,067,994 3,203,082 3,086,898
Intergovernmental 908,285 1,010,166 945,191 868,614 969,385
Town Services 3,454,666 4,625,136 4,580,511 4,184,272 4,013,412
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures 917,106 676,212 510,266 364,929 434,950
Interest 171,653 244,762 1,689,575 1,310,518 626,409
Other Sources 2,201,886 3,403,478 7,353,126 1,903,441 1,335,602
Debt Service Reimbursement 1,923,303 1,914,739 1,909,073 1,905,024 1,908,494
Transfers In 313,825 544,836 1,578,911 593,286 616,834
TOTAL REVENUES 43,271,273$ 45,771,242$ 53,808,998$ 45,820,791$ 45,751,230$
EXPENDITURES
Salaries & Benefits 21,884,855$ 23,574,425$ 26,803,225$ 28,505,727$ 31,579,000$
Operating Expenditures 8,896,209 9,457,424 11,955,327 13,464,492 13,690,647
Grants & Awards 209,381 194,808 248,533 242,500 245,000
Fixed Assets - - 38,307 - -
Interest - - - - -
Internal Service Charges 3,552,157 3,867,445 2,527,470 2,185,580 2,355,834
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service 1,923,303 1,914,739 1,909,073 1,905,024 1,908,494
Transfers Out 7,298,187 3,484,330 2,785,220 8,225,245 3,401,479
TOTAL EXPENDITURES 43,764,092$ 42,493,171$ 46,267,155$ 54,528,568$ 53,180,454$
Net Increase (Decrease)(492,819) 3,278,071 7,541,843 (8,707,777) (7,429,224)
Beginning Fund Balance 27,643,432 27,150,613 30,428,684 37,970,527 29,262,750
Ending Fund Balance*27,150,613$ 30,428,684$ 37,970,527$ 29,262,750$ 21,833,526$
* Year End Fund Balance represents General Fund 111 (Long Term Compensated Absences were accounted in
Fund 961 prior to FY 2018/19, Pension Trust Fund 731 was incorported in FY 2018/19).
C - 9
TOTAL TOWN
REVENUES AND EXPENDITURES
SPECIAL REVENUE FUNDS
2016/17 2017/18 2018/19 2019/20 2020/21
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ 174$ -$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes 38,370 34,400 38,088 38,220 38,220
Licenses & Permits 30,780 231,323 236,451 231,323 231,323
Intergovernmental (6,011) 903 - - -
Town Services 341,846 345,365 345,280 353,071 353,071
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures - - - - -
Interest 1,570 2,416 3,550 1,460 1,460
Other Sources 102,654 - 134,621 - -
Debt Service Reimbursement - - - - -
Transfers In - - - 10,000 -
TOTAL REVENUES 509,209$ 614,581$ 757,990$ 634,074$ 624,074$
EXPENDITURES
Salaries & Benefits 126,005$ 135,347$ 143,545$ 131,670$ 170,983$
Operating Expenditures 355,246 405,064 509,551 426,167 416,474
Grants & Awards - - - - -
Fixed Assets - 6,870 - - -
Interest - - - - -
Internal Service Charges 6,218 6,895 2,410 2,971 4,437
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service - - - - -
Transfers Out 4,920 4,920 4,920 4,920 4,920
TOTAL EXPENDITURES 492,389$ 559,096$ 660,426$ 565,728$ 596,814$
Net Increase (Decrease)16,820 55,485 97,564 68,346 27,260
Beginning Fund Balance 364,374 381,194 436,679 534,243 602,589
Ending Fund Balance*381,194$ 436,679$ 534,243$ 602,589$ 629,849$
C - 10
TOTAL TOWN
REVENUES AND EXPENDITURES
INTERNAL SERVICE FUNDS
2016/17 2017/18 2018/19 2019/20 2020/21
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ -$ -$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes 23,165 31,838 28,390 30,000 40,000
Licenses & Permits - - - - -
Intergovernmental - - - - -
Town Services 115,233 161,595 148,284 113,652 90,000
Internal Srvc Reimbursement 4,552,407 4,880,836 3,529,840 3,082,894 3,361,181
Fines & Forfeitures - - - - -
Interest 8 5 8 - -
Other Sources 533,753 585,934 2,993,443 611,673 476,382
CIP Proj Reimbursement - - - - -
Transfers In - 703,371 450,000 1,232,654 -
TOTAL REVENUES 5,224,566$ 6,363,579$ 7,149,965$ 5,070,873$ 3,967,563$
EXPENDITURES
Salaries & Benefits 3,344,009$ 1,585,148$ -$ -$ -$
Operating Expenditures 3,564,545 3,593,992 3,544,783 4,454,756 4,633,156
Grants & Awards - - - - -
Fixed Assets 402,806 620,915 601,961 702,400 1,356,248
Interest - - - - -
Internal Service Charges 53 - - - -
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service - - - - -
Transfers Out 295,680 - 1,390,375 1,367,750 78,298
TOTAL EXPENDITURES 7,607,093$ 5,800,055$ 5,537,119$ 6,524,906$ 6,067,702$
Net Increase (Decrease)(2,382,527) 563,524 1,612,846 (1,454,033) (2,100,139)
Beginning Fund Balance 8,660,597 6,278,070 6,841,594 8,454,440 7,000,407
Ending Fund Balance 6,278,070$ 6,841,594$ 8,454,440$ 7,000,407$ 4,900,268$
C - 11
TOTAL TOWN
REVENUES AND EXPENDITURES
LIBRARY TRUST FUNDS
2016/17 2017/18 2018/19 2019/20 2020/21
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ -$ -$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes - - - - -
Licenses & Permits - - - - -
Intergovernmental - - - - -
Town Services - - - - -
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures - - - - -
Interest 4,623 6,724 10,135 4,150 4,100
Other Sources 79,760 74,315 82,213 70,000 70,000
CIP Proj Reimbursement - - - - -
Transfers In - - - - -
TOTAL REVENUES 84,383$ 81,039$ 92,348$ 74,150$ 74,100$
EXPENDITURES
Salaries & Benefits -$ -$ -$ -$ -$
Operating Expenditures 75,498 77,252 69,029 109,500 93,700
Grants & Awards - - - - -
Fixed Assets - - 21,048 - 20,755
Interest - - - - -
Internal Service Charges - - - - -
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service - - - - -
Transfers Out - - - - -
TOTAL EXPENDITURES 75,498$ 77,252$ 90,077$ 109,500$ 114,455$
Net Increase (Decrease)8,885 3,787 2,271 (35,350) (40,355)
Beginning Fund Balance 523,072 531,957 535,744 538,015 502,665
Ending Fund Balance 531,957$ 535,744$ 538,015$ 502,665$ 462,310$
C - 12
TOTAL TOWN
REVENUES AND EXPENDITURES
CAPITAL PROJECT FUNDS
2016/17 2017/18 2018/19 2019/20 2020/21
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ -$ -$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes 23,165 31,838 28,390 9,521 30,000
Licenses & Permits 658,660 1,381,590 844,064 787,051 822,053
Intergovernmental 798,016 1,306,153 1,641,511 2,951,481 7,282,528
Town Services 7,500 - 52,094 227,224 296,500
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures - - - - -
Interest 66,951 93,198 127,251 23,700 35,540
Other Sources 741,161 181,502 784,085 843,642 523,027
CIP Proj Reimbursement - - - - -
SCC RPTTF Reimbursement - - - - -
Transfers In 7,593,867 2,638,224 2,685,220 8,295,591 3,401,479
TOTAL REVENUES 9,889,320$ 5,632,505$ 6,162,615$ 13,138,210$ 12,391,127$
EXPENDITURES
Salaries & Benefits -$ -$ -$ -$ -$
Operating Expenditures 3,654 892 - - -
Grants & Awards - - - - -
Fixed Assets - - - - -
Interest - - - - -
Internal Service Charges - - - - -
Capital Projects 6,863,375 10,041,532 8,987,510 5,707,767 13,202,501
Capital Acquisitions - - - - -
Debt Service - - - - -
Transfers Out 308,905 631,616 533,616 533,616 533,616
TOTAL EXPENDITURES 7,175,934$ 10,674,040$ 9,521,126$ 6,241,383$ 13,736,117$
Net Increase (Decrease)2,713,386 (5,041,535) (3,358,511) 6,896,827 (1,344,990)
Beginning Fund Balance 20,816,722 23,530,108 18,488,573 15,130,062 22,026,889
Ending Fund Balance 23,530,108$ 18,488,573$ 15,130,062$ 22,026,889$ 20,681,899$
C - 13
TOTAL TOWN
REVENUES AND EXPENDITURES
SUCCESSOR AGENCY TO THE TOWN OF LOS GATOS RDA
2016/17 2017/18 2018/19 2019/20 2020/21
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax -$ -$ -$ -$ -$
VLF Backfill - - - - -
Sales & Use Tax - - - - -
Franchise Fees - - - - -
Transient Occupancy Tax - - - - -
Other Taxes - - - - -
Licenses & Permits - - - - -
Intergovernmental 1,964,636 1,958,325 1,945,763 1,915,024 1,917,494
Town Services - - - - -
Internal Srvc Reimbursement - - - - -
Fines & Forfeitures - - - - -
Interest 6,310 22,788 43,706 3,154 3,500
Other Sources - - 11,664 - -
CIP Proj Reimbursement 1,923,303 1,914,739 1,909,073 1,905,024 1,908,494
SCC RPTTF Reimbursement - - - - -
Transfers In - - - - -
TOTAL REVENUES 3,894,249$ 3,895,852$ 3,910,206$ 3,823,202$ 3,829,488$
EXPENDITURES
Salaries & Benefits (10,004)$ 1,385$ 1,555$ 1,748$ 1,778$
Operating Expenditures 16,770 5,270 111,712 11,770 10,020
Grants & Awards - - - - -
Fixed Assets - - - - -
Interest 1,065,000 756,482 823,734 1,195,000 1,250,000
Internal Service Charges 75 58 9 5 5
Capital Projects - - - - -
Capital Acquisitions - - - - -
Debt Service 2,725,469 3,013,089 2,936,788 2,615,048 2,566,988
Transfers Out - 6,300 - - -
TOTAL EXPENDITURES 3,797,310$ 3,782,584$ 3,873,798$ 3,823,571$ 3,828,791$
Net Increase (Decrease)96,939 113,268 36,408 (369) 697
Beginning Fund Balance 3,593,572 3,690,511 3,803,779 3,840,187 3,839,818
Ending Fund Balance 3,690,511$ 3,803,779$ 3,840,187$ 3,839,818$ 3,840,515$
C - 14
TOTAL TOWN
REVENUES AND EXPENDITURES
TOTAL ALL FUNDS
2016/17 2017/18 2018/19 2019/20 2020/21
Actuals Actuals Actuals Estimated Proposed
REVENUES
Property Tax 11,518,257$ 12,510,996$ 13,636,099$ 13,860,986$ 14,678,319$
VLF Backfill 3,237,955 3,447,584 3,685,247 3,895,800 3,973,720
Sales & Use Tax 9,171,373 7,592,206 8,158,152 8,104,256 7,987,247
Franchise Fees 2,366,908 2,474,814 2,475,916 2,458,520 2,532,289
Transient Occupancy Tax 2,322,910 2,628,927 2,692,043 1,874,052 2,287,671
Other Taxes 1,805,680 1,784,327 1,621,762 1,371,752 1,408,220
Licenses & Permits 3,731,606 4,624,222 4,148,509 4,221,456 4,140,274
Intergovernmental 3,664,926 4,275,547 4,532,465 5,735,119 10,169,407
Town Services 3,919,245 5,132,096 5,126,169 4,878,219 4,752,983
Internal Srvc Reimbursement 4,552,407 4,880,836 3,529,840 3,082,894 3,361,181
Fines & Forfeitures 917,106 676,212 510,266 364,929 434,950
Interest 251,115 369,893 1,874,225 1,342,982 671,009
Other Sources 3,659,214 4,245,229 11,359,152 3,428,756 2,405,011
CIP Proj Reimbursement 3,846,606 3,829,478 3,818,146 3,810,048 3,816,988
SCC RPTTF Reimbursement - - - - -
Transfers In 7,907,692 3,886,431 4,714,131 10,131,531 4,018,313
TOTAL REVENUES 62,873,000$ 62,358,798$ 71,882,122$ 68,561,300$ 66,637,582$
EXPENDITURES
Salaries & Benefits 25,344,865$ 25,296,305$ 26,948,325$ 28,639,145$ 31,751,761$
Operating Expenditures 12,911,922 13,539,894 16,190,402 18,466,685 18,843,997
Grants & Awards 209,381 194,808 248,533 242,500 245,000
Fixed Assets 402,806 627,785 661,316 702,400 1,377,003
Interest 1,065,000 756,482 823,734 1,195,000 1,250,000
Internal Service Charges 3,558,503 3,874,398 2,529,889 2,188,556 2,360,276
Capital Projects 6,863,375 10,041,532 8,987,510 5,707,767 13,202,501
Capital Acquisitions - - - - -
Debt Service 4,648,772 4,927,828 4,845,861 4,520,072 4,475,482
Transfers Out 7,907,692 4,127,166 4,714,131 10,131,531 4,018,313
TOTAL EXPENDITURES 62,912,316$ 63,386,198$ 65,949,701$ 71,793,656$ 77,524,333$
Net Increase (Decrease)(39,316) (1,027,400) 5,932,421 (3,232,356) (10,886,751)
Beginning Fund Balance 61,601,771 61,562,455 60,535,055 66,467,476 63,235,120
Ending Fund Balance 61,562,455$ 60,535,055$ 66,467,476$ 63,235,120$ 52,348,369$
Note: Expenditures and Transfers Out may exceed Revenues due to the inclusion of planned and carry-forward
capital projects and payments from General Fund reserves to the Town Pension and OPEB Trusts.
C - 15
TOTAL TOWN REVENUES
BY FUND
(Includes Transfers In)
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 ChangeFundFund Name Actuals Actuals Actuals Adopted Estimated Proposed from PY
General Fund111General Fund 43,271,274$ 45,771,240$ 53,808,998$ 45,282,132$ 45,820,791$ 45,751,230$ 1.0%
Special Revenue Funds211Housing Conservation Program 102,654 - - - - - 0.0%212 Community Dev Block Grant (6,011) - - - - - 0.0%222 Urban Run-Off Source Fund 372,626 577,592 716,352 594,394 594,394 584,394 -1.7%231 Blackwell Assessment District 3,252 3,311 3,389 3,210 3,210 3,210 0.0%232 Kennedy Assessment District 10,631 7,982 10,912 10,605 10,605 10,605 0.0%233 Gemini Assessment District 4,801 4,544 5,077 4,750 4,750 4,750 0.0%234 Santa Rosa Assessment District 5,074 5,402 5,354 5,000 5,000 5,000 0.0%235 Vasona Assessment District 10,107 9,612 10,634 10,075 10,075 10,075 0.0%236 Hillbrook Assessment District 6,074 6,138 6,272 6,040 6,040 6,040 0.0%
Internal Service Funds611Liability Self-Insurance 497,401 506,519 657,152 443,727 375,554 418,135 -5.8%612 Worker's Comp Self-Insurance 1,026,355 1,135,141 1,492,981 2,087,485 2,415,297 1,185,906 -43.2%621 Information Technology 1,110,361 1,177,826 1,223,741 859,223 880,186 917,219 6.7%622 Office Stores Fund 130,520 127,786 141,938 - - - 0.0%631 Equipment Replacement 458,689 1,070,616 1,082,492 229,093 236,080 297,546 29.9%632 Facilities Maintenance 577,675 586,654 764,407 - - - 0.0%633 Vehicle Maintenance 1,423,566 1,759,036 1,787,255 1,173,757 1,163,757 1,148,757 -2.1%
Trust Funds
711 Library Trust 80,350 75,039 83,840 75,550 70,550 70,500 -6.7%
712 Library History Project - - - - - - 0.0%
713 Ness Trust Bequest 345 516 736 - - - 0.0%
714 Betty McClendon Trust 750 1,079 1,495 700 700 700 0.0%
716 Barbara J Cassin Trust 2,939 4,404 6,277 2,900 2,900 2,900 0.0%
Capital Projects Funds
411 GFAR 8,913,874 3,477,800 4,314,346 10,000,354 11,293,755 5,286,195 -47.1%
421 Grant Funded CIP Projects 3,093 261,534 257,968 1,047,100 74,006 1,479,200 41.3%
461 Storm Drain #1 74,183 13,996 123,039 49,150 60,957 49,470 0.7%
462 Storm Drain #2 69,142 752,689 47,774 53,770 19,602 53,490 -0.5%463 Storm Drain #3 6,813 40,564 1,447 1,620 24 1,380 -14.8%
471 Traffic Mitigation 163,126 151,452 118,787 942,524 293,234 425,027 -54.9%472 Construction Tax-Undergrounding 47,615 68,868 81,701 52,490 32,011 3,863,048 7259.6%
481 Gas Tax 611,472 865,606 1,217,552 1,316,054 1,364,620 1,233,317 -6.3%
Successor Agency to the Los Gatos RDA Fund
942 SA - Recognized Obligation Retirement 3,894,249 3,895,852 3,910,206 3,823,202 3,823,202 3,829,488 0.2%
TOTAL Fund Rev & Transfers In 62,873,000$ 62,358,798$ 71,882,122$ 68,074,905$ 68,561,300$ 66,637,582$ -2.1%
Plus Estimated PY Carryforward Grant Revenue for Capital Projects -
Total Fund Revenues, Transfers-in, and Prior Year Carryforwards 66,637,582$
C - 16
TOTAL TOWN REVENUES
BY FUND
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 % of
Actuals Actuals Actuals Adopted Estimated Proposed Total
General Fund 43,271,274$ 45,771,240$ 53,808,998$ 45,282,132$ 45,820,791$ 45,751,230$ 68.7%
Special Revenue Funds 509,208 614,581 757,990 634,074 634,074 624,074 0.9%
Internal Service Funds 5,224,567 6,363,578 7,149,966 4,793,285 5,070,874 3,967,563 6.0%
Trust Funds 84,384 81,038 92,348 79,150 74,150 74,100 0.1%
Capital Project Funds 9,889,318 5,632,509 6,162,614 13,463,062 13,138,209 12,391,127 18.6%
Successor Agency Fund 3,894,249 3,895,852 3,910,206 3,823,202 3,823,202 3,829,488 5.7%
Total Rev & Transfers In 62,873,000$ 62,358,798$ 71,882,122$ 68,074,905$ 68,561,300$ 66,637,582$ 100.0%
C - 17
TOTAL TOWN EXPENDITURES
BY FUND
(Includes Transfers Out)
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 ChangeFundFund Name Actuals Actuals Actuals Adopted Estimated Proposed from PY
General Fund111General Fund 43,764,091$ 42,493,171$ 46,267,156$ 52,914,515$ 54,528,568$ 53,180,454$ 0.5%
Special Revenue Funds211Housing Conservation Program - - - - - - 0.0%
212 Community Dev Block Grant - - - - - - 0.0%
222 Urban Run-Off Source Fund 466,762 521,147 628,240 579,173 516,751 559,077 -3.5%
231 Blackwell Assessment District 1,555 2,536 2,604 10,907 3,407 3,407 -68.8%232 Kennedy Assessment District 8,631 14,846 8,220 8,913 16,005 8,913 0.0%233 Gemini Assessment District 1,406 2,244 2,244 12,544 2,544 2,544 -79.7%234 Santa Rosa Assessment District 2,955 9,172 9,172 19,472 9,472 9,472 -51.4%235 Vasona Assessment District 7,555 5,586 5,576 18,644 12,792 8,644 -53.6%236 Hillbrook Assessment District 3,525 3,565 4,370 19,757 4,757 4,757 -75.9%
Internal Service Funds611Liability Self-Insurance 1,015,409 397,190 338,617 680,137 433,603 668,059 -1.8%
612 Worker's Comp Self-Insurance 1,337,371 1,416,722 1,270,628 1,657,210 2,013,845 1,775,300 7.1%
621 Information Technology 1,747,482 1,267,349 867,082 955,575 862,230 1,057,875 10.7%
622 Office Stores Fund 113,210 100,432 369,729 - - - 0.0%631 Equipment Replacement 712,638 636,400 601,961 2,186,240 1,282,150 1,396,746 -36.1%632 Facilities Maintenance 805,178 506,234 1,027,197 - - - 0.0%633 Vehicle Maintenance 1,875,805 1,475,728 1,061,905 1,961,752 1,933,078 1,169,722 -40.4%
Trust Funds
711 Library Trust 75,498 71,265 69,029 100,000 97,000 90,500 -9.5%
713 Ness Trust Bequest - - 21,048 20,755 - 20,755 0.0%
714 Betty McClendon Trust - 5,986 - 2,500 2,500 700 -72.0%
716 Barbara J Cassin Trust - - - 10,000 10,000 2,500 -75.0%
721 Parking District #88 - - - - - - 0.0%
Capital Projects Funds411GFAR 5,448,917 9,556,483 7,970,424 10,242,716 3,361,871 5,904,836 -42.4%
421 Grant Funded CIP Projects 3,400 15,394 379,494 1,047,100 614,496 1,479,200 41.3%
461 Storm Drain #1 - - - 50,000 - 50,000 0.0%
462 Storm Drain #2 - 18,700 - 50,000 - 50,000 0.0%
463 Storm Drain #3 12,750 107,992 29,700 50,000 15,500 75,000 50.0%471 Traffic Mitigation 141,791 119,507 74,626 942,524 293,235 425,027 -54.9%
472 Construction Tax-Undergrounding - - - - 49,000 4,436,000 0.0%
481 Gas Tax 1,569,077 855,965 1,066,881 1,316,054 1,907,282 1,316,054 0.0%
Successor Agency to the Los Gatos RDA Fund942SA- Trust Fund 3,797,310 3,782,584 3,873,798 3,823,202 3,823,570 3,828,791
TOTAL Fund Exp & Transfers Out 62,912,316$ 63,386,198$ 65,949,701$ 78,679,690$ 71,793,656$ 77,524,333$ -1.5%
C - 18
TOTAL TOWN EXPENDITURES
BY FUND
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 %
Actuals Actuals Actuals Adopted Estimated Proposed of Total
General Fund 43,764,091$ 42,493,171$ 46,267,156$ 52,914,515$ 54,528,568$ 53,180,454$ 68.6%
Special Revenue Funds 492,389 559,096 660,426 669,410 565,728 596,814 0.8%
Internal Service Funds 7,607,093 5,800,055 5,537,119 7,440,914 6,524,906 6,067,702 7.8%
Trust Funds 75,498 77,251 90,077 133,255 109,500 114,455 0.1%
Capital Project Funds 7,175,935 10,674,041 9,521,125 13,698,394 6,241,384 13,736,117 17.7%
Successor Agency Fund 3,797,310 3,782,584 3,873,798 3,823,202 3,823,570 3,828,791 4.9%
Total Exp & Transfers Out 62,912,316$ 63,386,198$ 65,949,701$ 78,679,690$ 71,793,656$ 77,524,333$ 100.0%
C - 19
TOTAL TOWN REVENUES
BY CATEGORY
FY 2020/21
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, VLF
Backfill, Franchise Fees, and Intergovernmental Revenues.
Key revenue highlights include:
Property Tax – Property Tax revenues are still projected to increase by 3.6% compared to the prior year budgeted
amount as property tax collection is based on the January 2020 assessment roll for FY 2020/21.
Sales and Use Tax – While the Town only receives 1.125 cents of the 9.125 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 2020/21 budget reflects $8.0 million in sales tax revenue which is a significant decrease from the draft Five-Year
Forecast presented to the Town Council in January 2020; however, it equates to a 0.2 % decrease compared to the
prior year budgeted amount. The modest change compared to the prior year budget is the combined effect of the
additional revenues associated with the newly enacted 1/8 cent sales tax moderating the negative impact associated
with COVID-19 pandemic. In addition, staff had previously requested a Mid-Year budget adjustment of $700,000
(not reflected in the FY 19/20 Adopted Budget) based on receipts prior to the County shelter-in-place (SIP) order in
response to the COVID-19 emergency. Given the significant impacts related to SIP, staff will request a budget
adjustment for FY 2019/20 reversing that adjustment back to prior Adopted Budget levels.
Licenses and Permits – FY 2020/21 Licenses and Permits reflect a 6.7% decrease reflecting anticipated declines in
permitting activity.
Intergovernmental Revenues – Increases in intergovernmental revenues are due to changes in available grant
funding.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 % of
Revenues Actuals Actuals Actuals Adopted Estimated Proposed Total
Property Tax 11,518,257$ 12,510,996$ 13,636,099$ 14,174,700$ 13,860,986$ 14,678,319$ 22.0%
VLF Backfill Property Tax 3,237,955 3,447,584 3,685,247 3,795,800 3,895,800 3,973,720 6.0%
Sales & Use Tax 9,171,373 7,592,206 8,158,152 8,001,917 8,104,256 7,987,247 12.0%
Franchise Fees 2,366,908 2,474,814 2,475,916 2,458,520 2,458,520 2,532,289 3.8%
Transient Occupancy Tax 2,322,910 2,628,927 2,692,043 2,848,730 1,874,052 2,287,671 3.4%
Miscellaneous Other Taxes 1,805,679 1,784,327 1,621,762 1,508,220 1,371,752 1,408,220 2.1%
Licenses & Permits 3,731,606 4,624,222 4,148,509 4,435,910 4,221,456 4,140,274 6.2%
Intergovernmental Revenues 3,664,925 4,275,547 4,532,466 6,015,772 5,735,119 10,169,407 15.3%
Town Services 3,919,245 5,132,095 5,126,169 4,817,907 4,878,219 4,752,983 7.1%
Internal Service Reimbursements 4,552,407 4,880,836 3,529,840 3,285,647 3,082,894 3,361,181 5.0%
Fines & Forfeitures 917,106 676,212 510,266 483,950 364,929 434,950 0.7%
Interest 251,116 369,892 1,874,224 674,278 1,342,982 671,009 1.0%
Miscellaneous Other Sources 7,505,821 8,074,709 15,177,298 5,968,879 7,238,804 6,221,999 9.3%
54,965,308$ 58,472,367$ 67,167,991$ 58,470,230$ 58,429,769$ 62,619,269$
Plus Transfers In 7,907,692 3,886,431 4,714,131 9,604,676 10,131,531 4,018,313 6.0%
Total Revenues & Other Sources 62,873,000$ 62,358,798$ 71,882,122$ 68,074,906$ 68,561,300$ 66,637,582$ 100%
Total Revenues
C - 20
TOTAL TOWN REVENUES
BY CATEGORY
Transient Occupancy Tax – Transient Occupancy Tax (TOT) is expected to decrease by 19.7% from FY 2019/20
budgeted amount of $2.8 million or 15% from FY 2018/19 actual proceeds due to the anticipated effect of the SIP
Public Health Orders. Given the significant impacts of the SIP, staff conducted a survey of local hotels to understand
current occupancy rates. Based on the survey, staff will request a budget adjustment for FY 2019/20 to reflect
decreased TOT revenue.
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.
C - 21
TOTAL TOWN EXPENDITURES
BY CATEGORY
FY 2020/21
Expenditures
Total Budgeted Expenditures (exclusive of Transfers Out) include budgeted Capital Improvements, which can vary
significantly from year to year. Net of Capital Projects and payment to CalPERS, total expenditures reflect a 0.3%
increase for FY 2020/21 compared to the prior year adopted budget. Expenditures of note include:
Salaries and Benefits – The FY 2020/21 budget reflects an increase in salaries related to negotiated adjustments and
benefits attributed to increased CalPERS and medical benefits rates. Staffing modifications include reclassification
of a Payroll Technician Position and an Administrative Technician position to Administrative Analyst positions and a
Parking Control Officer Position to a Senior Parking Control Officer position to better align current service delivery
within the existing budget. Staff also proposes one-time temporary hours within the Town Manager’s Office, Police
Department, and Community Development Department.
Fixed Assets – Budgeted fixed asset costs stem primarily from scheduled vehicle and equipment replacements. The
variance in expenditures from year to year does not impact current year charges to the Departments, only the actual
cash out to replace the asset.
Internal Service Charges – These expenditures represent the service program costs charged back to the operational
programs for Liability Insurance, Information Technology, Vehicle Replacement, and Building Maintenance services.
The FY 2020/21 budget reflects an increase in the Internal Service Charges reflecting scheduled replacements.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 % of
Actuals Actuals Actuals Adopted Estimated Proposed Total
Salaries and Benefits 25,344,865$ 25,296,305$ 26,948,324$ 31,117,995$ 28,639,145$ 31,751,761$ 41.0%
Operating Expenditures 16,085,204 16,354,841 18,844,565 17,971,354 21,401,466 21,983,485 28.4%
Grants 209,381 194,808 248,533 222,500 242,500 245,000 0.3%
Fixed Assets 402,807 627,785 661,315 1,734,495 702,400 1,377,003 1.8%
Interest 1,065,000 756,482 823,734 1,195,000 1,195,000 1,250,000 1.6%
Internal Service Charges 3,558,503 3,874,398 2,529,890 2,259,419 2,188,556 2,360,276 3.0%
Capital Projects 6,863,375 10,041,532 8,987,510 13,164,778 5,707,768 13,202,501 17.0%
Successor Agency Pass Thru 673,323 1,014,531 1,163,984 699,718 875,266 677,500 0.9%
Debt Services 802,166 1,098,350 1,027,715 709,755 710,024 658,494 0.8%
55,004,624$ 59,259,032$ 61,235,570$ 69,075,014$ 61,662,125$ 73,506,020$
Transfers Out 7,907,692 4,127,166 4,714,131 9,604,676 10,131,531 4,018,313 5.2%
Total Uses of Funds 62,912,316$ 63,386,198$ 65,949,701$ 78,679,690$ 71,793,656$ 77,524,333$ 100%
Total Expenditures
Expenditures
C - 22
TOTAL TOWN EXPENDITURES
BY CATEGORY
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.
C - 23
GENERAL FUND REVENUES
BY DEPARTMENT
FY 2020/21 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.
** Previously expensed transfers were returned to be included in the General Fund.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 % of
Departments Actuals Actuals Actuals Adopted Estimated Proposed Total
Town Council 2,634$ 730$ 1,527$ -$ -$ -$ 0.0%
Non-Departmental 30,660,035 28,988,474 34,475,646 31,267,889 31,312,321 31,373,670 74.2%
Administrative Services*1,939,016 1,946,533 3,172,019 2,176,383 2,655,258 2,019,873 4.8%
Community Development 3,803,661 3,835,046 4,203,611 4,967,543 3,972,923 4,288,785 10.1%
Police Department 2,880,573 2,769,309 2,556,445 2,661,412 2,524,288 2,759,731 6.5%
Parks & Public Works 1,666,480 3,530,073 2,760,825 1,716,845 2,368,798 1,783,685 4.2%
Library Services 81,746 71,902 56,958 48,500 59,719 38,000 0.1%
Total General Fund Revenues 41,034,145$ 41,142,067$ 47,227,031$ 42,838,572$ 42,893,307$ 42,263,744$ 100%
Town Debt Payments 1,923,303$ 1,914,739$ 1,909,073$ 1,905,024$ 1,905,024$ 1,908,494$
Pension Trust**- - 5,022,848 - 429,174 962,158
Compensated Absences**- 2,169,600 (1,928,865) - - -
Transfers In 313,825 544,836 1,578,911 538,536 593,286 616,834
Net Operating Revenues 43,271,273$ 45,771,242$ 53,808,998$ 45,282,132$ 45,820,791$ 45,751,230$
C - 24
GENERAL FUND EXPENDITURES
BY DEPARTMENT
FY 2020/21 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.
** Pension Trust and Compensated absences are incorporated in the General Fund.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 % of
Departments Actuals Actuals Actuals Adopted Estimated Proposed Total
Police Department 13,251,291$ 14,423,554$ 14,948,952$ 16,940,786$ 15,743,235$ 17,587,825$ 36.7%
Parks & Public Works 6,597,744 7,099,527 7,969,631 8,070,068 7,987,006 8,152,044 17.0%
Non-Departmental 4,945,746 4,868,721 6,875,760 3,873,255 3,574,014 7,803,668 16.3%
Community Development 3,793,929 4,192,165 4,577,495 5,760,099 4,561,625 5,517,030 11.5%
Administrative Services*2,825,082 3,193,995 3,931,807 4,815,138 4,281,866 4,974,616 10.4%
Library Services 2,508,678 2,529,017 2,493,617 2,935,010 2,715,304 2,946,509 6.2%
Town Council 193,584 192,183 205,903 240,605 206,469 243,486 0.5%
Town Attorney 426,548 354,205 562,542 621,391 562,983 645,303 1.3%
Total General Fund Exp 34,542,602$ 36,853,367$ 41,565,707$ 43,256,352$ 39,632,502$ 47,870,481$ 100%
Town Debt Payments 1,923,303$ 1,914,739$ 1,909,073$ 1,905,024$ 1,905,024$ 1,908,494$
Pension Trust**- - 7,155 - 4,765,797 -
Compensated Absences**- 240,735 - - - -
Transfers Out 7,298,187 3,484,330 2,785,220 7,753,140 8,225,245 3,401,479
Net Operating Expenditures 43,764,092$ 42,493,171$ 46,267,155$ 52,914,516$ 54,528,568$ 53,180,454$
C - 25
GENERAL FUND REVENUES
BY CATEGORY
FY 2020/21 General Fund revenues and fund transfers are estimated to increase by 1.0% from the FY 2019/20
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 1.125 cents of the 9.125 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 2020/21
budget reflects $8 million in sales tax revenue, which is significant decrease from the draft Five-Year Forecast
presented to the Town Council in January 2020; however, it equates to a 0.2 % decrease compared to the prior year
budgeted amount. The modest change compared to the prior year budget is the combined effect of the additional
revenues associated with the newly enacted 1/8 cent sales tax moderating the negative impact associated with
COVID-19 pandemic. In addition, staff had previously requested a Mid-Year budget adjustment of $700,000 (not
reflected in the FY 19/20 Adopted Budget) based on receipts prior to the County shelter-in-place (SIP) order in
response to the COVID-19 emergency. Given the significant impacts related to SIP, staff will request a budget
adjustment for FY 2019/20 reversing that adjustment back to prior Adopted Budget levels.
Property Tax – Property Tax revenues have increased by 3.6% compared to the prior year budgeted amount as
property tax collection is based on the January 2020 assessment roll for FY 2020/21. Property Tax budget projections
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 % of
Revenue Category Actuals Actuals Actuals Adopted Estimated Proposed Total
Property Tax 11,518,257$ 12,510,822$ 13,636,099$ 14,174,700$ 13,860,986$ 14,678,319$ 32.1%
VLF Backfill Property Tax 3,237,955 3,447,584 3,685,247 3,795,800 3,895,800 3,973,720 8.7%
Sales & Use Tax 9,171,373 7,592,206 8,158,152 8,001,917 8,104,256 7,987,247 17.5%
Franchise Fees 2,366,908 2,474,814 2,475,916 2,458,520 2,458,520 2,532,289 5.5%
Transient Occupancy Tax 2,322,910 2,628,927 2,692,043 2,848,730 1,874,052 2,287,671 5.0%
Other Taxes 1,720,980 1,686,251 1,526,894 1,400,000 1,294,011 1,300,000 2.8%
Licenses & Permits 3,042,166 3,011,309 3,067,994 3,382,534 3,203,082 3,086,898 6.7%
Intergovernmental 908,285 1,010,166 945,191 978,141 868,614 969,385 2.1%
Town Services 3,454,666 4,625,136 4,580,511 4,328,336 4,184,272 4,013,412 8.8%
Fines & Forfeitures 917,106 676,212 510,266 483,950 364,929 434,950 1.0%
Interest 171,653 244,762 1,689,575 629,774 1,310,518 626,409 1.4%
Other Sources 4,125,189 5,318,217 9,262,199 2,261,194 3,808,465 3,244,096 7.1%
Total Revenues 42,957,448$ 45,226,406$ 52,230,087$ 44,743,596$ 45,227,505$ 45,134,396$
Transfers In:313,825$ 544,836$ 1,578,911$ 538,536$ 593,286$ 616,834$ 1.3%
Total Revenues & Transfers In 43,271,273$ 45,771,242$ 53,808,998$ 45,282,132$ 45,820,791$ 45,751,230$ 100%
C - 26
GENERAL FUND REVENUES
BY CATEGORY
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.
Town Services – Charges for Town Services decreased by 7.3% reflecting development projects that are in progress.
Licenses & Permits – Licenses and Permits decreased by 8.7% based on current and anticipated building activities.
Intergovernmental Revenues – Intergovernmental revenues reflect a 0.9% decrease since less grant revenue is
anticipated to be received than 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 3%. The increase is based on an analysis of current year collection tends.
Transient Occupancy Tax –Transient Occupancy Tax (TOT) is expected to decrease by 19.7% from FY 2019/20
budgeted amount of $2.8 million or 15% from FY 2018/19 actual proceeds due to the anticipated effect of the SIP
Public Health Orders. Given the significant impacts of the SIP, staff conducted a survey of local hotels to understand
current occupancy rates. Based on the survey, staff will request a budget adjustment for FY 2019/20 to reflect
decreased TOT revenue.
Fines and Forfeitures – Fines and Forfeitures include library and traffic fines and administrative citations which are
expected to decrease by 10.1%.
Transfers In –Transfers in increased by 14.5% compared to the prior year budget, reflecting an utilization of a
previously saved equipment replacement collection in FY 2020/21.
Other Sources – Other sources includes the Town “Pass Through” programs and restricted pension trust fund
activities.
C - 27
GENERAL FUND EXPENDITURES
BY CATEGORY
The FY 2020/21 General Fund Operating Budget (net of transfers out, payment to CalPERS, and the General Plan
Update expenses totaling $4.8M) represents a 1.8% increase compared to the net FY 2019/20 adopted operating
expenditures budget.
Salaries & Benefits – The delivery of Town services is highly dependent on labor which comprises 59.5% of budgeted
General Fund expenditures for FY 2020/21. The FY 2020/21 budget reflects an increase in salaries consistent with
approved labor contracts, and benefits costs attributed to increased CalPERS and medical benefits rates.
Operating Expenditures –The operating expenditures include $4.2 million payment to CalPERS and $0.6 million for
the General Plan Update. The FY 2020/21 operating expenditures increased when compared to the FY 2019/20
adopted budget. Town-wide efforts continue to emphasize the importance of containing operating costs while
maintaining core services; however, factors such escalating energy costs and general cost increases have offset many
departmental reductions.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21 % of
Expenditure Category Actuals Actuals Actuals Adopted Estimated Proposed Total
Salaries & Benefits 21,884,855$ 23,574,425$ 26,803,225$ 30,910,359$ 28,505,727$ 31,579,000$ 59.5%
Operating Expenditures 8,896,209 9,457,424 11,955,327 9,869,872 13,464,492 13,690,647 25.7%
Fixed Assets - - 38,307 - - - 0.0%
Grants & Awards 209,381 194,808 248,533 222,500 242,500 245,000 0.5%
Debt Service 1,923,303 1,914,739 1,909,073 1,905,024 1,905,024 1,908,494 3.6%
Internal Service Charges 3,552,157 3,867,445 2,527,470 2,253,620 2,185,580 2,355,834 4.3%
Total Expenditures 36,465,905$ 39,008,841$ 43,481,935$ 45,161,375$ 46,303,323$ 49,778,975$
Transfers Out 7,298,187$ 3,484,330$ 2,785,220$ 7,753,140$ 8,225,245$ 3,401,479$ 6.4%
Total Exp & Transfers Out 43,764,092$ 42,493,171$ 46,267,155$ 52,914,515$ 54,528,568$ 53,180,454$ 100.0%
C - 28
GENERAL FUND EXPENDITURES
BY CATEGORY
Grants & Awards –The Town provides General Fund grants and awards to local nonprofit organizations for a variety
of human, art, special events and educational services. FY 2020/21 grants and awards reflect 10.1% 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, Information Technology, Vehicle Replacement, and Building Maintenance services.
Debt Service – The Town facilitates the Successor Agency (SA) to the Los Gatos Redevelopment Agency’s two
Certificates of Participation (COPs) through a leasing expense and reimbursement revenue which nets to zero for
the Town, while SA funds provide the actual debt payment for the bond issues.
Transfers Out – The General Fund Transfers Out include $3,401,479 to the Capital Projects Fund.
C - 29
GENERAL FUND TAX REVENUES
CITIES OF SANTA CLARA COUNTY – TAX REVENUES PER CAPITA
(LATEST DATA AVAILABLE AT THE TIME OF PUBLICATION)
FY 2018/19 Actual Tax Revenue Amounts and Per Capita
Source: Cities of Santa Clara County
Cities Population Amount Per Capita Amount Per Capita Amount Per Capita Amount Per Capita
Campbell 43,250 16,877,568$ 390 15,684,222$ 363$ 4,768,870$ 110$ 693,263$ 16$
Cupertino 64,127 25,301,094 395 24,901,779 388 8,901,337 139 876,601 14
Gilroy 55,928 14,848,765 265 20,186,105 361 1,771,882 32 693,758 12
Los Altos 31,190 23,791,531 763 3,427,203 110 3,166,067 102 540,262 17
Los Altos Hills 8,785 7,621,614 868 65,926 8 - - 220,888 25
LOS GATOS 30,988 17,321,347 559 8,158,162 263 2,692,044 87 1,526,894 49
Milpitas 80,430 33,811,009 420 28,889,785 359 14,502,735 180 500,339 6
Monte Sereno 3,500 2,038,501 582 1,743 0 - - 33,580 10
Morgan Hill 45,742 12,761,577 279 10,247,494 224 2,893,113 63 201,762 4
Mountain View 81,992 54,183,866 661 25,057,747 306 7,050,530 86 230,981 3
Palo Alto 67,082 47,329,394 706 36,507,728 544 25,648,696 382 - -
San Jose 1,051,316 306,222,332 291 226,336,942 215 19,530,772 19 70,673,106 67
Santa Clara 128,717 58,501,737 454 65,036,080 505 23,228,956 180 928,545 7
Saratoga 31,407 14,166,177 451 1,207,471 38 347,605 11 424,854 14
Sunnyvale 155,567 84,211,809 541 31,862,256 205 21,192,146 136 1,957,738 13
Average 125,335 47,932,555$ 382$ 33,171,376$ 265$ 9,046,317$ 72$ 5,300,171$ 42$
Property Tax Sales Tax Occupancy Tax Business License Tax
C - 30
GENERAL FUND TAX REVENUES
BUDGET WITH 10 YEAR HISTORY
Sum of Key Change from
Revenues Prior Year
2010/11 Actuals 7,289,897$ 9,971,409$ 1,004,659$ 1,136,511$ 19,402,476$ 8.8%
2011/12 Actuals 7,532,073$ 9,889,100$ 1,174,485$ 1,077,320$ 18,196,717$ (6.2%)
2012/13 Actuals 9,477,043$ 8,757,428$ 1,295,887$ 1,151,579$ 20,681,937$ 13.7%
2013/14 Actuals 9,054,908$ 8,029,571$ 1,512,846$ 1,130,020$ 19,727,345$ (4.6%)
2014/15 Actuals 10,113,287$ 8,202,678$ 1,896,721$ 1,779,407$ 21,992,093$ 11.5%
2015/16 Actuals 10,779,434$ 7,501,175$ 1,943,166$ 1,465,546$ 21,689,321$ (1.4%)
2016/17 Actuals 11,518,257$ 9,171,373$ 2,322,910$ 1,720,980$ 24,733,520$ 14.0%
2017/18 Actuals 12,510,822$ 7,592,206$ 2,628,927$ 1,686,251$ 24,418,206$ (1.3%)
2018/19 Actuals 13,636,099$ 8,158,152$ 2,692,043$ 1,526,894$ 26,013,188$ 6.5%
2019/20 Estimated 13,860,986$ 8,364,914$ 1,874,052$ 1,294,011$ 25,393,963$ (2.4%)
2020/21 Proposed 14,678,319$ 7,987,247$ 2,287,671$ 1,300,000$ 26,253,237$ 3.4%
Business
License Tax
Occupancy
Tax
Sales
TaxFiscal Year
Property
Tax
C - 31
GENERAL FUND
FY 2020/21 ESTIMATED FUND BALANCE ACTIVITY
The balances are estimates and will be finalized upon closing FY 2019/20.
Estimated Fund Balance Estimated
July 1, 2020 Sources June 30, 2021
Balance (Uses)Balance
Unreserved Fund Balances
Undesignated Reserves -$ -$ -$ -$ -$
Available to be Appropriated 2,715,950 45,751,230 53,180,454 7,441,129 2,727,855
Restricted Fund Balances
Pension 639,519 - - 962,158 1,601,677
Committed to:
Budget Stabilization Reserve 5,427,603 - - - 5,427,603
Catastrophic Reserves 5,427,603 - - - 5,427,603
Pension/OPEB Reserve 4,232,500 - - (4,232,500) -
Assigned to:- -
Open Space Reserve 410,000 - - - 410,000
Sustainability 140,553 - - - 140,553
Capital / Special Projects 7,422,640 - - (4,170,787) 3,251,853
Authorized Carryforwards 413,729 - - - 413,729
Compensated Absences 1,232,653 - - - 1,232,653
Surplus Property Reserve 1,200,000 - - - 1,200,000
29,262,750$ 45,751,230$ 53,180,454$ -$ 21,833,526$
Use of / Addition to GF Reserves:
Total Use of and Addition To Reserves
Revenues &
Transfers In
Expenditures
and Transfers
Out
C - 32
GENERAL FUND
FY 2019/20 & FY 2020/21 ESTIMATED FUND BALANCE ACTIVITY
Restricted for PensionBudget StabilizationCatastrophic Pension/OPEBOpen SpaceSustainabilityCapital/Special ProjectsCarryforward EncumbrancesVehicle Maintenance & Store To Workers's CompCompensated AbsencesSurplus Property ReserveEstimated Available to be AppropriatedTotal GF Balance5,015,316$ 5,419,222$ 5,419,222$ 4,232,500$ 562,000$ 140,553$ 13,262,303$ 413,729$ 1,040,375$ 1,232,654$ 1,232,654$ -$ -$ 37,970,528$ Additional Funding for PCI Improvements(FY 2019/20 Adopted Budget)(1,337,500) Downtown Revitalization (FY 2019/20 Adopted Budget)(1,000,000) Downtown Revitalization(FY 2019/20 Adopted Budget)(972,384) Additional Capital Projects(FY 2019/20 Adopted Budget)(152,000) (3,220,000) 50% of Com. Abs. to Workers' Comp(FY 2019/20 Adopted Budget)(1,232,654) Additional Grant(FY 2019/20 Adopted Budget)(5,000) Additional Side Walk Cleaning(FY 2019/20 Adopted Budget)(27,685) Regular Payment to IRS 115 Pension Trust(FY 2019/20 Adopted Budget)390,000 Vegetation Management (Council Action 8/20/2019)(300,707) PARS Transfer(October 2019)(4,765,797) Sale of Winchester Property(Council Action 4/21/2020)1,200,000 Reserve 25% of FY 2020/21 GF Operating Expenditure (per General Fund Reserve Policy)8,381 8,381 (16,762) Vehicle and Store Residual Balance (per General Fund Reserve Policy)35,306 (35,306) FY 2019/20 Estimated Year-End Surplus2,715,949 639,519$ 5,427,603$ 5,427,603$ 4,232,500$ 410,000$ 140,553$ 7,422,640$ 413,729$ -$ -$ 1,232,654$ 1,200,000$ 2,715,949$ 29,262,750$ Additional Capital Projects(3,401,479) FY2020/21 One -time Uses(769,308) Paying off CalPERS 2015 Gain/Loss Base(3,660,342) Residual Pension/OPEB Reserve to IRS 115 Pension Trust (CEPPT)572,158 (572,158) Regular Payment to IRS 115 Pension Trust (CEPPT)390,000 FY 2020/21 Estimated Year-End Surplus11,905 1,601,677$ 5,427,603$ 5,427,603$ -$ 410,000$ 140,553$ 3,251,853$ 413,729$ -$ -$ 1,232,654$ 1,200,000$ 2,727,854$ 21,833,526$ Estimated General Fund Balance June 30, 2021PROPOSED FY2020/21 ACTIONSActual General Fund Balance June 30, 2019 FY 2019/20 ACTIONSEstimated General Fund Balance June 30, 2020
C - 33
SCHEDULE OF INTERFUND TRANSFERS
FISCAL YEAR 2019/20 & 2020/21
Estimated Proposed Budget
2019/20 2019/20 2020/21 2020/21
Fund Description Transfers In Transfers Out Transfers In Transfers Out
General Funds
General Fund 593,286$ 8,225,245$ 616,834$ 3,401,479$
Special Revenue Funds
Solid Waste Management - - - -
HCD Housing Rehabilitation - - - -
HCD-Community Dev Block Grant - - - -
Urban Run-Off Program 10,000 - - -
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
Liability Self Insurance-Fund - - - -
Worker's Comp Self Insurance 1,232,654 - - -
Management Information Systems - - - 37,800
Office Stores Fund - - - -
Equipment Fund - 579,750 - 40,498
Vehicle Maintenance Fund - - - -
Facilities Maintenance Fund - 788,000 - -
Trust & Agency Funds
Barbara J. Cassin Trust - - - -
History Project Trust Fund - - - -
Library Trust Fund - - - -
Capital Project Funds
GFAR 8,295,591 417,616 3,401,479 417,616
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 Fund
SA - Administration - - - -
SA - Debt Service - - - -
SA - Low / Moderate Housing - - - -
SA - Recognized Obligation Retirement - - - -
SA - General Fund - - - -
Total Transfers 10,131,531$ 10,131,531$ 4,018,313$ 4,018,313$
C - 34
FUND BALANCE ACTIVITY SUMMARY
FISCAL YEAR 2020/21
7/1/20 Plus Less 6/30/21EstimatedRevenues &Transfers Expenditures &Transfers Use of EstimatedFund Balance Carryforwards In Carryforwards Out Reserves Fund BalanceGENERAL FUND
Unreserved Fund BalancesUndesignated ReservesAvailable to be Appropriated 2,715,950$ 45,134,396$ 616,834$ 49,778,975$ 3,401,479$ 7,441,129$ 2,727,855$
Restricted Fund Balances
Pension Trust 639,519 - - - - 962,158 1,601,677
Committed to:
Budget Stabilization Reserve 5,427,603 - - - - - 5,427,603 Catastrophic Reserves 5,427,603 - - - - - 5,427,603
Pension/OPEB Reserve 4,232,500 - - - - (4,232,500) -
Assigned to:Open Space Reserve 410,000 - - - - - 410,000 Sustainability 140,553 - - - - - 140,553
Capital/Special Projects 7,422,640 - - - - (4,170,787) 3,251,853
Authorized Carryforwards 413,729 - - - - - 413,729 Compensated Absences 1,232,653 - - - - - 1,232,653
Surplus Property Reserve 1,200,000 - - - - - 1,200,000
Total General Fund Reserves 29,262,750$ 45,134,396$ 616,834$ 49,778,975$ 3,401,479$ -$ 21,833,526$
SPECIAL REVENUE FUNDS
Solid Waste Fund -$ -$ -$ -$ -$ -$ -$ Housing Conservation Program 177,240$ -$ -$ -$ -$ -$ 177,240$
Community Dev Block Grant (10,587) - - - - - (10,587)
Urban Run-Off Source Fund 237,093 584,394 - 559,077 - - 262,410 Blackwell Assessment District 13,291 3,210 - 2,947 460 - 13,094 Kennedy Assessment District 32,526 10,605 - 7,403 1,510 - 34,218
Gemini Assessment District 31,127 4,750 - 1,934 610 - 33,333
Santa Rosa Assessment District 50,187 5,000 - 8,812 660 - 45,715 Vasona Assessment District 51,516 10,075 - 7,214 1,430 - 52,947
Hillbrook Assessment District 20,195 6,040 - 4,507 250 - 21,478
Total Special Revenue Funds Reserves 602,588$ 624,074$ -$ 591,894$ 4,920$ -$ 629,848$
Fiscal Year 2020/21 Proposed Budget
General Fund Undesignated Reserves reflect ongoing revenue, carryforward, transfer, expenditures, the net effect of the change in Designated Reserves, and the
use of Undesignated Reserves.
• FY2020/21 Budgeted revenue and expenditure appropriations, and transfers to and from the General Fund.
• Authorized carryforwards reflect operating appropriations that were brought forward as a funding source. The actual carryforward amount will be
determined at FY 2019/20 year-end, with funding offset by undesignated reserves.
• General Fund Reserve Policy requires a minimum of 25% of General Fund operating expenditures equally divided between the Budget Stabilization Reserve
and Catastrophic Reserve.
• In FY 2015/16, Council established a General Fund Pension/Other Post Employment Benefits (OPEB) Reserve Account. At the same time, the Council
revised the General Fund Reserve Policy to provide for a maximum of $300,000 in General Fund Year End Savings upon year-end close to be deposited in the
Pension/OPEB Reserve Account and used as authorized by Town Council.
• Undesignated Fund Balance is a year-end fund balance not yet identified by the Town Council for a specific purpose. The Town General Fund Reserve Policy
requires full funding of the Catastrophic and Budget Stabilization Reserves, distribution to the Pension/OPEB Reserve, and any remianing balance to the
Capital/Special Project Reserve.
C - 35
FUND BALANCE ACTIVITY SUMMARY
FISCAL YEAR 2020/21
7/1/20 Plus Less 6/30/21EstimatedRevenues &Transfers Expenditures &Transfers Use of Estimated
Fund Balance Carryforwards In Carryforwards Out Reserves Fund BalanceINTERNAL SERVICE FUNDS
Liability Self-Insurance 1,255,255$ 418,135$ -$ 668,059$ -$ -$ 1,005,331$
Worker's Comp Self-Insurance 1,244,533 1,185,906 - 1,775,300 - - 655,139 Information Technology 2,536,424 917,219 - 1,020,075 37,800 - 2,395,768 Office Stores Fund - - - - - - -
Equipment Replacement 1,762,734 297,546 - 1,356,248 40,498 - 663,534
Vehicle Maintenance - - - - - - - Facilities Maintenance 201,465 1,148,757 - 1,169,722 - - 180,500
Total Internal Service Funds Reserves 7,000,411$ 3,967,563$ -$ 5,989,404$ 78,298$ -$ 4,900,272$
TRUST & AGENCY
Library Trust 43,132$ 70,500$ -$ 90,500$ -$ -$ 23,132$
Ness Trust Bequest 21,291 - - 20,755 - - 536 Betty McClendon Trust 84,199 700 - 700 - - 84,199 Barbara J Cassin Trust 354,042 2,900 - 2,500 - - 354,442
Total Trust & Agency Funds Reserves 502,664$ 74,100$ -$ 114,455$ -$ -$ 462,309$
CAPITAL PROJECTS FUNDSGFAR 14,990,662$ 1,884,716$ 3,401,479$ 5,487,221$ 417,616$ -$ 14,372,020$
GFAR - Designated for Parking 1,460,210 - - - - - 1,460,210
Grant Funded CIP Projects (796,127) 1,479,200 - 1,479,200 - - (796,127) Storm Drain #1 993,373 49,470 - 50,000 - - 992,843
Storm Drain #2 1,820,150 53,490 - 50,000 - - 1,823,640
Storm Drain #3 (119,883) 1,380 - 75,000 - - (193,503) Traffic Mitigation 304,646 425,027 - 415,027 10,000 - 304,646 Construction Tax-Undergrounding 3,062,696 3,863,048 - 4,436,000 - - 2,489,744
Gas Tax 311,160 1,233,317 - 1,210,054 106,000 - 228,423
Total Capital Projects Funds Reserves 22,026,887$ 8,989,648$ 3,401,479$ 13,202,502$ 533,616$ -$ 20,681,896$
Successor Agency of the Los Gatos RDA Fund
SA- Trust Fund 3,839,819$ 3,829,488$ -$ 3,828,791$ -$ -$ 3,840,516$
Total SA of the Los Gatos RDA Funds Reserves 3,839,819$ 3,829,488$ -$ 3,828,791$ -$ -$ 3,840,516$
TOTAL RESERVES 63,235,119$ 62,619,269$ 4,018,313$ 73,506,021$ 4,018,313$ -$ 52,348,367$
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 2020/21 Proposed Budget
GFAR, Grant Fund, Storm Drain Funds, and Gas Tax Fund Balances reflect the spending down of available funds in FY 2020/21 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
$10,000 for estimated annual administration fees. Grant Funded Projects Fund Balance reflects appropriations for incoming revenues and prior year carryforwards,
which will result in either positive or negative fund balance depending on timing of receipts and budget. All grant projects net to zero at completion.
C - 36
FUND BALANCE RESERVES
5 YEAR COMPARATIVE BALANCES
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021ActualActualActualEstimatedBudgetedFund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance
GENERAL FUNDRestricted Fund Balances
Pension 0 -$ 5,015,316$ 639,519$ 1,601,677$ Unreserved Fund BalancesUndesignated Reserves
Available to be Appropriated - - - 2,715,950 2,727,855 Committed to:Budget Stabilization Reserve 4,969,847 5,037,243 5,419,222 5,427,603 5,427,603
Catastrophic Reserves 4,969,847 5,037,243 5,419,222 5,427,603 5,427,603
Pension/OPEB Reserve 3,388,913 2,878,913 4,232,500 4,232,500 - Almond Grove Reserve 1,801,318 - - - - Assigned to:
Open Space Reserve 562,000 562,000 562,000 410,000 410,000 Sustainability 140,553 140,553 140,553 140,553 140,553 Strategic Planning Reserve 2,600,000 129,090 - - -
Capital/Special Projects 8,273,124 14,421,203 13,262,303 7,422,640 3,251,853 Authorized Carryforwards 34,852 99,927 413,729 413,729 413,729 Compensated Absences*410,158 2,122,512 1,232,653 1,232,653 1,232,653
To Workers Comp 1,232,654 Stores and Vehicle Maintenance - - 1,040,375 - - Surplus Property Reserve - - - 1,200,000 1,200,000
Total General Fund Reserves*27,150,612$ 30,428,684$ 37,970,527$ **29,262,750$ 21,833,526$
SPECIAL REVENUE FUNDSHousing Conservation Program 177,240$ 177,240$ 177,240$ 177,240$ 177,240$
Community Dev Block Grant (10,587) (10,587) (10,587) (10,587) (10,587) Urban Run-Off Source Fund 14,894 71,338 159,450 237,093 262,410 Blackwell Assessment District 11,928 12,700 13,488 13,291 13,094
Kennedy Assessment District 42,097 35,234 37,926 32,526 34,218 Gemini Assessment District 23,787 26,088 28,921 31,127 33,333 Santa Rosa Assessment District 62,247 58,477 54,659 50,187 45,715
Vasona Assessment District 45,148 49,175 54,233 51,516 52,947 Hillbrook Assessment District 14,436 17,010 18,912 20,195 21,478
Total Special Revenue Funds Reserves 381,190$ 436,675$ 534,242$ 602,588$ 629,848$
INTERNAL SERVICE FUNDSLiability Self-Insurance 885,441$ 994,769$ 1,313,304$ 1,255,255$ 1,005,331
Worker's Comp Self-Insurance 902,307 620,726 843,081 1,244,533 655,139
Information Technology 2,251,331 2,161,808 2,518,468 2,536,424 2,395,768 Office Stores Fund 200,437 227,790 - - - Equipment Replacement 1,894,057 2,328,270 2,808,804 1,762,734 663,534
Vehicle Maintenance 182,369 262,791 - - - Facilities Maintenance (37,872) 245,437 970,786 201,465 180,500
Total Internal Service Funds Reserves 6,278,070$ 6,841,591$ 8,454,443$ 7,000,411$ 4,900,272$
* Year End Fund Balance represents General Fund 111 (Long Term Compensated Absences were accounted in Fund 961 prior to FY 2017/18) Pension Trust Fund 731
was incorporated in FY 2018/19.
C - 37
FUND BALANCE RESERVES
5 YEAR COMPARATIVE BALANCES
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021ActualActualActualEstimatedBudgeted
Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance
TRUST FUNDS
Library Trust 50,997$ 54,771$ 69,582$ 43,132$ 23,132$
Ness Trust Bequest 41,087 41,603 21,291 21,291 536
Betty McClendon Trust 89,412 84,505 85,999 84,199 84,199
Barbara J Cassin Trust 350,461 354,865 361,142 354,042 354,442
Total Trust Reserves 531,957$ 535,744$ 538,014$ 502,664$ 462,309$
CAPITAL PROJECTS FUNDS
GFAR 16,793,552$ 10,714,868$ 7,058,779$ 14,990,662$ 14,372,020
GFAR - Designated for Parking 1,460,210 1,460,210 1,460,210 1,460,210 1,460,210
Grant Funded CIP Projects (380,253) (134,111) (255,637) (796,127) (796,127) Storm Drain #1 795,381 809,377 932,416 993,373 992,843
Storm Drain #2 1,018,786 1,752,774 1,800,548 1,820,150 1,823,640
Storm Drain #3 (8,725) (76,154) (104,407) (119,883) (193,503)
Traffic Mitigation 228,541 260,487 304,647 304,646 304,646
Construction Tax-Undergrounding 2,929,116 2,997,984 3,079,685 3,062,696 2,489,744
Gas Tax 693,508 703,148 853,822 311,160 228,423
Total Capital Projects Funds Reserves 23,530,116$ 18,488,583$ 15,130,063$ 22,026,887$ 20,681,896$
Successor Agency Trust of the Los Gatos RDA
SA - Trust Fund ( Budgetary Fund Balance)3,690,510$ 3,803,778$ 3,840,187$ 3,839,819$ 3,840,516$
Total Successor Agency Fund Reserves 3,690,510$ 3,803,778$ 3,840,187$ 3,839,819$ 3,840,516$
TOTAL RESERVES 61,562,455$ 60,535,055$ 66,467,476$ 63,235,119$ 52,348,367$
C - 38
DEPARTMENT REVENUES
BY PROGRAM
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21ActualsActualsActualsAdoptedEstimatedProposed
Town Offices
1101 Town Council -$ -$ -$ -$ -$ -$
1301 Town Attorney 2,634 730 1,527 - - -
1302 Liability Self-Insurance Fund 497,401 506,519 657,152 443,727 375,554 418,135
Total Town Offices 500,035$ 507,249$ 658,679$ 443,727$ 375,554$ 418,135$
Administrative Services Department
1201 Non-Departmental 32,681,146$ 31,218,827$ 36,710,334$ 33,488,529$ 33,587,711$ 33,676,078$
1231 Pension Trust - - 5,022,848 - 429,174 962,158
1261 Compensated Absences - 2,169,600 (1,928,865) - - -
2101 Town Manager Administration 7,639 14,590 28,989 29,415 3,763 3,464
2102 Community Grants - - - - - -
2103 Housing Program 102,654 - - - - - 2104 HCD Housing Rehab (6,011) - - - - -
2201 Human Resources 15,235 - - - - -
2202 Workers' Compensation Fund 1,026,355 1,135,140 1,492,981 1,026,229 1,182,643 1,185,906
2301 Finance & Administrative Services 1,893,142 1,931,943 2,973,730 2,139,774 2,651,045 2,016,409
2302 Office Stores Fund 130,520 127,786 141,938 - - - 2303 Parking Assessment District - - - - - - 2401 Clerk Administation - - - - 450 -
2502 Information Technology Management - - 169,300 - - -
2501 Information Technology Systems 1,110,362 1,172,455 1,223,741 859,223 880,186 917,219
2803 Smoking Restriction Implementation 19,998 - - - - -
2999 Pass Thru Accounts 3,002 - - 7,194 - -
Total Administrative Services 36,984,042$ 37,770,341$ 45,834,996$ 37,550,364$ 38,734,972$ 38,761,234$
Community Development
3101 Administration -$ -$ 7,500$ -$ -$ -$
3201 Developmental Review 693,250 707,514 681,892 607,500 575,127 542,000
3202 Advanced Planning 149,224 142,006 570,034 1,130,200 239,532 716,944
3301 Inspection Services 2,172,585 2,105,643 2,184,412 2,510,000 2,347,962 2,302,500 3401 Code Compliance 5,225 4,800 60,378 4,300 15,200 5,000 3501 BMP Housing Program 195,941 190,833 144,712 183,043 196,702 189,841
3999 Pass Thru Accounts 587,435 684,249 554,682 532,500 598,400 532,500
Total Community Development 3,803,660$ 3,835,045$ 4,203,610$ 4,967,543$ 3,972,923$ 4,288,785$
Police Department
4101 Administration 6,778$ 14,210$ 30,047$ 23,735$ 20,740$ 23,735$
4201 Records & Communication 8,880 9,530 11,909 10,472 6,000 6,000 4202 Personnel & Community Services 377,720 430,842 376,852 435,600 379,224 390,640 4301 Patrol 905,751 919,251 926,565 961,883 971,364 1,010,797
4302 Traffic 498,202 535,896 594,315 456,703 473,167 465,107
4303 Investigations 168,080 130,497 132,929 140,713 182,173 243,944
4304 Parking Program 872,394 676,242 478,574 504,400 385,364 462,400
4800 Grants Program - Police 15,196 50,579 1,309 95,791 46,027 54,695 4999 Pass Thru Accounts 27,573 2,263 3,946 32,115 5,479 24,115
Total Police Department 2,880,574$ 2,769,310$ 2,556,446$ 2,661,412$ 2,469,538$ 2,681,433$
C - 39
DEPARTMENT REVENUES
BY PROGRAM
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21ActualsActualsActualsAdoptedEstimatedProposed
Parks & Public Works
5101 Administration 7,231$ (3,272)$ -$ -$ -$ -$
5201 Engineering Program Services 128,775 209,631 223,701 - 122,820 -
5202 Engineering Development Srvcs 696,327 1,817,315 1,092,535 680,260 817,117 712,100 5203 Non-Point Source Fund 372,626 577,591 716,352 584,394 584,394 584,394 5301 Park Services 250,936 318,940 233,408 225,270 226,503 210,270
5302 Environmental Services 158,961 148,110 187,706 160,156 160,156 160,156
5401 Street & Signals 219,798 198,030 279,912 195,543 202,440 245,543
5402 Equipment Replacement 458,689 672,616 632,492 229,093 236,080 297,546
5403 Vehicle Maintenance 577,675 586,654 764,407 - - - 5404 Facilities Maintenance 1,423,566 1,459,036 1,787,255 1,173,757 1,163,757 1,148,757 5405 Property Damage 26,856 206,630 83,025 - 11,158 -
5501 Lighting & Landscape Districts 39,940 36,990 41,638 39,680 39,680 39,680
5999 Pass Thru Accounts 79,790 319,073 334,920 140,000 512,988 140,000
8011 GFAR 1,320,005 839,574 1,629,129 2,005,471 2,998,164 1,884,716
8021 Grant Funded CIP Projects 3,093 261,534 257,968 1,047,100 74,006 1,479,200
8031 Storm Drain #1 74,183 13,997 123,039 49,150 60,957 49,470
8032 Storm Drain #2 69,142 752,689 47,774 53,770 19,602 53,490
8033 Storm Drain #3 6,813 40,564 1,447 1,620 24 1,380 8041 Traffic Mitigation 163,126 151,452 118,787 942,524 293,234 425,027
8042 Utility Undergrounding 47,615 68,868 81,701 52,490 32,011 3,863,048
8051 Gas Tax - Street & Signals 611,471 865,607 1,217,552 1,316,054 1,364,620 1,233,317
Total Parks & Public Works 6,736,618$ 9,541,629$ 9,854,748$ 8,896,332$ 8,919,711$ 12,528,094$
Library
7101 Administration 7,218$ 206$ 55$ -$ -$ -$
7201 Adult Services 9,836 9,836 35,000 35,000 35,000 35,000
7202 Children's Services 14,066 14,066 - 2,500 2,500 - 7203 Acquisitons & Cataloging 3,559 1,762 (37) - - - 7204 Circulation Services 47,067 23,832 9,458 11,000 3,000 3,000
7801 Operating Grant - 22,200 12,482 - 19,219 -
7301 Library Trust 80,350 75,040 83,840 75,550 70,550 70,500
7302 Clelles Ness Bequest Trust 345 516 736 - - -
7304 Betty McClendon Trust 750 1,079 1,495 700 700 700 7305 Barbara J Cassin Trust 2,939 4,404 6,277 2,900 2,900 2,900
Total Library 166,130$ 152,941$ 149,306$ 127,650$ 133,869$ 112,100$
Successor Agency to the Los Gatos RDA
9403 SA- Admin Services 22,073$ 25,623$ 29,216$ 10,000$ 10,000$ 9,000$
9404 SA- Debt to 2002 COP 1,360,886 1,365,839 1,371,401 1,348,198 1,348,198 1,353,938
9405 SA-Debt to 2010 COP 2,511,290 2,504,390 2,509,589 2,465,004 2,465,004 2,466,550
9406 SA- Debt to 1992 COP - - - - - -
Total SA to the Los Gatos RDA 3,894,249$ 3,895,852$ 3,910,206$ 3,823,202$ 3,823,202$ 3,829,488$
Transfers In 7,907,692 3,886,431 4,714,131 9,604,676 10,131,531 4,018,313 Carryforward of CIP Grant Revenue
Total Revenues by Department:62,873,000$ 62,358,798$ 71,882,122$ 68,074,906$ 68,561,300$ 66,637,582$
C - 40
DEPARTMENTAL EXPENDITURES
BY PROGRAM
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Adopted
Town Offices
1101 Town Council 193,584$ 192,183$ 205,903$ 240,605$ 206,469$ 243,485$ 1301 Town Attorney 426,548 354,205 562,542 621,390 - 562,983 645,303 1302 Liability Self-Insurance Fund 1,015,409 397,190 338,617 680,137 433,603 668,059
Total Town Offices 1,635,541$ 943,578$ 1,107,062$ 1,542,132$ 1,203,055$ 1,556,847$
Administrative Services Department
1201 Non-Departmental 6,869,047$ 7,024,195$ 8,784,833$ 5,778,279$ 5,479,038$ 9,712,162$
1231 Pension Trust - - 7,155 - 4,765,797 -
1261 Pension Trust - 240,735 - - - -
2101 Town Manager Administration 825,373 1,070,761 1,077,603 1,341,099 1,218,648 1,406,422
2102 Community Grants 119,800 119,800 136,513 142,500 142,500 150,000 2201 Human Resources 552,914 630,554 678,490 761,991 734,548 785,883 2301 Finance & Administrative Services 1,002,075 1,049,871 1,145,906 1,545,213 1,279,576 1,550,837
2401 Clerk Administration 315,912 322,976 349,776 438,948 376,422 459,193
2502 Information Technology Management - 33 540,044 578,194 530,172 622,280
2803 Tobacco Prevention Initiatitves 9,009 - 629 - - - 2802 Obesity Grant - - - - - -
2999 Pass Through - - 2,845 7,194 - -
2202 Workers' Compensation Fund 1,337,371 1,416,722 1,270,628 1,657,210 2,013,845 1,775,300
2302 Office Stores Fund 113,210 100,432 104,345 - - - 2501 Information Technology Systems 1,747,482 1,267,349 567,082 955,575 862,230 1,020,075
2303 Parking Assessment District - - - - - -
Total Administrative Services 12,892,193$ 13,243,428$ 14,665,849$ 13,206,203$ 17,402,776$ 17,482,152$
Community Development3101Administration 221,508$ 222,614$ 210,791$ 303,002$ 253,803$ 330,196$
3201 Developmental Review 1,135,513 1,258,291 1,329,381 1,528,945 1,323,785 1,580,428
3202 Advanced Planning 314,024 336,023 766,110 1,463,555 616,070 1,091,310
3301 Inspection Services 1,132,888 1,290,433 1,316,494 1,473,613 1,325,123 1,493,076 3401 Code Compliance 206,572 209,720 255,324 275,442 246,975 299,679
3501 BMP Housing Program 195,991 190,833 144,713 183,043 197,468 189,841
3999 Pass Thru Accounts 587,435 684,249 554,682 532,500 598,400 532,500
Total Community Development 3,793,931$ 4,192,163$ 4,577,495$ 5,760,100$ 4,561,624$ 5,517,030$
Police Department4101Administration 861,561$ 1,026,502$ 1,223,444$ 1,299,427$ 1,240,091$ 1,378,275$
4201 Records & Communication 1,949,183 2,072,274 2,221,494 2,363,660 2,163,767 2,483,105
4202 Personnel & Community Services 596,274 773,826 562,528 1,037,275 856,443 1,023,462
4301 Patrol 5,827,002 6,575,258 7,112,700 7,512,107 7,314,696 7,925,958 4302 Traffic 932,169 992,689 1,011,364 1,084,957 833,509 1,066,473
4303 Investigations 2,342,031 2,282,295 2,219,461 2,844,068 2,661,856 2,877,009
4304 Parking Program 700,325 683,817 565,896 671,384 620,474 754,733
4800 Grants Program - Police 14,567 11,451 27,547 95,791 46,027 54,695 4999 Pass Thru Accounts 28,178 5,442 4,520 32,115 6,372 24,115
Total Police Department 13,251,290$ 14,423,554$ 14,948,954$ 16,940,784$ 15,743,235$ 17,587,825$
C - 41
DEPARTMENTAL EXPENDITURES
BY PROGRAM
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Adopted
Parks & Public Works
5101 Administration 340,123$ 562,340$ 570,096$ 594,434$ 606,451$ 615,919$ 5201 Engineering Program Services 1,157,205 1,168,666 1,215,300 1,244,432 1,440,652 1,301,155
5202 Engineering Development Srvcs 699,677 721,593 742,264 795,332 735,900 788,192
5203 Non-Point Source Fund 466,761 521,147 628,241 579,173 516,751 559,077
5301 Park Services 1,738,961 1,835,775 1,737,287 2,016,614 1,957,937 2,040,375 5302 Environmental Services 299,259 342,130 337,937 398,228 332,270 370,876
5401 Street & Signals 2,173,657 2,087,096 2,220,248 2,212,674 2,289,997 2,276,016
5402 Equipment Replacement 416,957 636,400 601,961 1,661,240 702,400 1,356,248
5403 Vehicle Maintenance 805,179 506,234 252,206 - - - 5404 Facilities Maintenance 1,875,804 1,475,728 1,011,905 1,173,751 1,145,078 1,169,722
5405 Property Damage 109,072 76,898 56,226 25,000 19,500 25,000
5406 Vehicle Maintenance Management - - 221,062 235,199 154,298 244,673
5407 Facilities Maintenance Management - - 305,042 408,155 310,001 349,839 5501 Lighting & Landscape Districts 20,707 33,029 27,266 85,317 44,057 32,817
5999 Pass Thru Accounts 79,790 305,028 564,170 140,000 140,000 140,000
8011 GFAR 5,249,110 9,040,871 7,552,806 9,825,101 2,944,255 5,487,221
8021 Grant Funded CIP Projects 3,400 15,394 379,494 1,047,100 614,496 1,479,200
8031 Storm Drain #1 - - - 50,000 - 50,000
8032 Storm Drain #2 - 18,700 - 50,000 - 50,000 8033 Storm Drain #3 12,750 107,992 29,700 50,000 15,500 75,000
8041 Traffic Mitigation 138,694 109,507 64,626 932,524 283,235 415,027
8042 Utility Undergrounding - - - - 49,000 4,436,000
8051 Gas Tax - Street & Signals 1,463,077 749,965 960,881 1,210,054 1,801,282 1,210,054
Total Parks & Public Works 17,050,183$ 20,314,493$ 19,478,718$ 24,734,328$ 16,103,060$ 24,472,411$
Library7101 Administration 426,637$ 439,522$ 451,284$ 466,219$ 468,392$ 514,552$
7201 Adult Services 637,465 576,961 548,199 689,115 558,268 653,511
7202 Children's Services 513,667 533,279 502,330 606,412 506,214 599,182
7203 Acquisitons & Cataloging 121,183 123,873 - - - - 7204 Circulation Services 809,726 836,336 969,174 1,172,264 1,158,037 1,179,264
7801 Operating Grant - 19,045 22,632 1,000 24,393 -
7301 Library Trust 75,498 71,265 69,029 100,000 97,000 90,500
7302 Clelles Ness Bequest Trust - - 21,048 20,755 - 20,755 7304 Betty McClendon Trust - 5,986 - 2,500 2,500 700 7305 Barbara J Cassin Trust - - - 10,000 10,000 2,500
Total Library 2,584,176$ 2,606,267$ 2,583,696$ 3,068,265$ 2,824,804$ 3,060,964$
Successor Agency to the Los Gatos RDA
9402 SA- Housing Trust Others -$ -$ -$ -$ -$ -$
9403 SA- Admin Services 1,571 1,443 109,556 8,053 8,053 8,083
9404 SA- Debt to 2002 COP 1,094,785 1,347,477 1,346,321 1,349,688 1,350,058 1,354,798
9405 SA-Debt to 2010 COP 2,700,954 2,427,364 2,417,921 2,465,461 2,465,460 2,465,910
9406 SA- Debt to 1992 COP - - - - - -
Total SA to the Los Gatos RDA 3,797,310$ 3,776,284$ 3,873,798$ 3,823,202$ 3,823,571$ 3,828,791$
Total Operating Expenditures 55,004,624$ 59,499,767$ 61,235,572$ 69,075,014$ 61,662,125$ 73,506,020$
Transfers Out 7,907,692 3,886,431 4,714,129 9,604,676 10,131,531 4,018,313
Total Expenditures by Department:62,912,316$ 63,386,198$ 65,949,701$ 78,679,690$ 71,793,656$ 77,524,333$
C - 42
IN-KIND DONATIONS
FY 2020 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 recently amended the agreement in which NUMU leases 10,630 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 $4,100; the Children’s Holiday Parade costs are estimated to be $45,500. 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 $822,211.
NUMU (LG Museums)Adult Recreation Center Recreation Department
Location 110 E. Main St 208 E. Main St.123 E. Main St.
10-Year Lease 20-Year Lease
Market Price Per Square Foot/Month*$3.1 *$3.1 *$3.2 **
Square Footage 10,630 12,000 6,479
Value of Rent/Year $395,436 $447,264 $244,949
Rent Paid/Year $25,000 $251,861 $38,178
Total value of Donation/Lease Term 370,436$ 195,404$ 206,771$
* Market rate is based on appraisal on every five-year.
** Market rate is based on the State of California Department of Industrial Relations, Division of Labor Statistics and Research's Comsumer
Price Index, All Urban Consumers, All Items, SanFrancisco-Oakland - San Jose, California as identified in the lease term.
C - 43
FEE-RELATED PROJECTS LISTS
Under California law, cities and other local agencies may enact Development Impact Fees on proposed development
which must be paid as a condition of development approval. Development Impact Fees (“DIFs”) were enacted under
Assembly Bill 1600 by the California Legislature in 1987 and codified under California Government Code §66000 et.
seq., also referred to as the Mitigation Fee Act (the Act or AB 1600).
Development Impact Fees are not ongoing fees or taxes; they are one-time fees, paid at the time of construction.
Impact fees are not special assessments, nor are they permitted to cover on-going operations and maintenance
costs. By definition, “a fee is voluntary and must be reasonably related to the cost of the service provided by the
local agency.” The fees are collected by local governmental agencies to pay for infrastructure or capital facilities
needed to serve new development. Because impact fees are collected during the development approval process,
the fees are typically paid by developers, builders, or other property owners who are seeking to develop property
as a way of paying their “fair share” of needed facilities.
The Town collects three Development Impact Fees that meet the reporting requirements of AB 1600: the Traffic
Impact Mitigation Fee, Below-Market Priced Housing Program In-Lieu Fee, and the Construction Activity Impact Fee.
The following tables provide potential project lists.
Source Description
Estimated
Project Cost
(2020 $)
BMP Fee
Eligible Cost
BMP Extremely Low Income Housing Projects $ 3,000,000 $ 3,000,000
BMP Reacquisition of Distressed/Foreclosed Properties 700,000 700,000
BMP Hello Housing Program Services 600,000 600,000
$ 4,300,000 $ 4,300,000
Source Description
Estimated
Project Cost
(2020$)
Construction
Impact Fee
Eligible Cost
CIP Street Repair and Resurfacing Projects (5 year-plan) $ 17,929,790 $ 17,929,790
$ 17,929,790 $ 17,929,790
CIP - Town of Los Gatos, Capital Improvement Program
Below Market Price (BMP) Housing Program Potential Project List
Note:
BMP - Below Market Housing Program
Construction Impact Activity Project List
Note:
Total
Total
C - 44
FEE-RELATED PROJECTS 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 - 45
SUMMARY OF POSITIONS
DEPARTMENTAL STAFF BY FUND
2016/17 2017/18 2018/19 2019/20 2020/21
Funded Funded Funded Funded Proposed
General Fund
Town Council 0.50 0.50 0.50 0.50 0.50
Town Attorney*1.04 0.91 1.88 1.88 1.88
Administrative Services*16.28 16.19 20.53 20.17 20.17
Community Development 19.99 20.08 20.08 20.08 20.20
Police Department 58.00 59.00 59.00 60.00 60.00
Parks & Public Works*28.40 29.40 33.50 33.50 33.75
Library 12.25 12.25 12.50 12.50 12.50
Total General Fund Staff 136.45 138.33 147.98 148.61 148.98
Special Revenue Funds
Parks & Public Works 1.00 1.00 1.00 1.00 1.00
Total Special Revenue Fund Staff 1.00 1.00 1.00 1.00 1.00
Internal Service Funds
Town Attorney*0.71 0.71 - - -
Administrative Services*3.70 3.95 - - -
Parks & Public Works*4.10 4.10 - - -
Total Internal Services Funds Staff 8.51 8.76 - - -
Successor Agency to the Los Gatos RDA
Administrative Services - 0.01 0.01 0.01 0.01
Community Development 0.01 - - - -
Total Redevelopment Agency Staff 0.01 0.01 0.01 0.01 0.01
Total Town FTEs 145.98 148.10 148.99 149.63 150.00
Full Time Equivalent (FTE)
*Personnel previously budgeted in Internal Service Funds are budgeted in General Fund Programs
beginning in FY 2018/19.
Administrative Services staffing numbers include the following programs: Town Manager's Office;
Human Resources; Finance; Clerk Administration; and Information Technology Staffing
C - 46
SUMMARY OF POSITIONS
BUDGETED FTES BY DEPARTMENT
Blue Bar – Town Staff Purple Bar – Hourly Employees
FY 2020/21
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; and Information Technology Staffing
Hourly employee positions result from seasonal, temporary, and part-time labor needs.
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
Town
Council
Town
Attorney
Administrative
Services
Community Development
Police
Department
Parks & Public
Works
Library
Authorized/Hourly Emp
Funded Staff Total
Town Staff converted Budgeted
Departments Positions to FTEs Positions
Town Council 0.50 0.08 0.58
Town Attorney 1.88 - 1.88
Administrative Services 20.18 1.13 21.30
Community Development 20.20 0.94 21.14
Police Department 60.00 2.09 62.09
Parks & Public Works 34.75 2.72 37.47
Library 12.50 4.06 16.56
Total Positions 150.00 11.03 161.03
C - 47
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
2016/17
FY
2017/18
FY
2018/19
FY
2019/20
FY
2020/21
Town Council
Town Attorney
Administrative Services
Community Development
Police Department
Parks & Public Works
Library
2016/17 2017/18 2018/19 2019/20 2020/21
Departments Funded Funded Funded Funded Proposed
Town Council 0.63 0.50 0.50 0.50 0.50
Town Attorney 1.63 1.63 1.88 1.88 1.88
Administrative Services 19.35 20.59 20.53 20.18 20.18
Community Development 19.63 19.63 20.08 20.08 20.20
Police Department 59.00 59.00 59.00 60.00 60.00
Parks & Public Works 33.50 34.50 34.50 34.50 34.75
Library 12.25 12.25 12.50 12.50 12.50
Total Budgeted FTEs 145.98 148.10 148.99 149.63 150.00
C - 48
SUMMARY OF PERSONNEL CHANGES
FY 2020/21
he Town’s total budgeted personnel costs for FY 2020/21 increased to $31.8 million ($31.1 million in FY
2019/20) and accounts for 41% of the total Town’s expenditures. Rising healthcare and pension rates have
increased labor costs; however, reduction strategies including budgeting salaries for FY 2020/21 at actual
salary plus a one-step increase, 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 (MOU’s). Salary increases and benefit adjustments for unrepresented
positions are determined under the Council’s authority and are not subject to bargaining.
Memoranda of Understanding (MOUs)
All non-sworn and management employees received an across the board salary increase of 2.5% plus a 1.5% base
salary one-time payment (non-PERSable) during FY 2018/19 and a 3% across the board salary increase was effective
in FY 2019/20.
• The TEA and AFSCME labor agreements had a re-opener provision to negotiate the specific topic of
salaries effective in FY 2020/21 of the agreements that expire on June 30, 2021. Based the agreements
reached with TEA and AFSCME, the FY 2020/21 budget incorporates an 1% cost of living adjustment and a
2% base salary one-time payment (non-PERSable) bonus.
• The sworn employees represented by the Police Officers’ Association (POA) received an across the board
salary increase of 2.5% during FY 2018/19 and will receive a negotiated 4% across the board increase in FY
2019/20. The MOU has a re-opener provision to negotiate salaries effective in FY 2020/21 and the entire
agreement open for negotiation prior to September 30, 2021.
Benefits
The Town contracts for medical coverage through CalPERS and rates are adjusted each January for the calendar year.
Kaiser serves as the benchmark medical plan to determine the Town contribution toward all medical plan premiums.
In the recent past, Kaiser rates have fluctuated and increased by as much as 11% in one year, simultaneously
increasing the Town contribution. In 2020, Kaiser rates increased 4% from the prior year. As evidenced by this
fluctuation, national health care costs continue to an area of concern and potential expense volatility. Employees
contribute to the cost of medical premiums when enrolled in the majority of CalPERS plans.
Dental, vision and life insurance rates are expected to remain relatively stable. Conversely, short and long-term
disability insurance costs are increasing due to changes in the market and a growth in the Town’s claim experience.
Efforts are underway to identify measures to control and/or reduce costs. During negotiations in FY 2018/19, the
Town’s discretionary retiree medical benefit contribution was eliminated for all future hires. It is important to note
that changes in benefit coverage are generally subject to negotiations with affected employee groups.
Pension Plan
The Town’s pension plans over the past several decades, like all other CalPERS participants, have experienced
unfavorable investment returns, changes in actuarial assumptions, and unfavorable demographic shifts which have
outweighed any positive plan experiences. As such, the Town’s employer pension contributions are expected to
continue to increase.
T
C - 49
SUMMARY OF PERSONNEL CHANGES
FY 2020/21
In order to help mitigate these negative plan experiences in FY 2012/13, CalPERS established a three-tier pension
plan for non-sworn participants, 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 pension 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
these changes do not provide immediate cost savings, it is anticipated to significantly reduce future salary and
benefit expenditures in the future.
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 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, and the rates in years three through five of the plan increased 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 requires the Town to pay significantly more into the system.
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. In addition to the potential for State mandated
reforms the Town has been proactive in implementing pension/OPEB cost mitigation strategies.
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 2020/21 the Town’s miscellaneous employee rate is projected to increase to
34.23%; the safety rate is projected to increase to 58.98%; and the PEPRA safety rate is projected to be 15.95%.
In addition, per the Pension/OPEB Committee direction, the first discretionary payment of $4.8 million was
transferred to CalPERS for the 2016 gain/loss amortization base. The Town anticipates transferring an additional
$3.6 million to pay off the 2015 gain/loss base in FY 2020/21. The Current estimates indicate that these changes
would result in the Town increasing from the FY 2019/20 rate of 52.22% to 84.56% in FY 2025/26 of pay rate for
safety employees and from the FY 2019/20 rate of 33.18% to approximately 35.55% in FY 2020/25.
Using official information issued by CalPERS, the following schedule reflects the Town’s actual CalPERS pension rate
for FY 2020/21 and the expected rates for the following fiscal years based on the Town’s five-year forecast model
which was updated using a CalPERS provided tool in January 2020 that provided a calculation method to estimate
rate impacts of the current market earnings.
C - 50
SUMMARY OF PERSONNEL CHANGES
FY 2020/21
Management Strategies
Several 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 reduce overtime
expenses, and reducing hourly staffing use. In light of limited available resources and uncertain economic trends in
revenues sources such as Sales Tax, limited staffing changes and one-time additions have been included in the FY 2020/21 budget. Departments continuously evaluate staffing structures, anticipate succession needs, and modify
staffing to improve efficiencies, align with service delivery demands, and meet other Town goals. In this budget, a
couple of Departments have included cost neutral restructuring.
Overtime
Overtime expenditures continue to be assessed and adjusted when appropriate. While unpredictable or non-
controllable events will impact the Town’s limited public safety and public works maintenance resources, continued
adjustments to schedules and workload have been successful in reducing budgeted overtime. Although some non-
critical Town services have experienced moderate service level reductions, scheduling restrictions have not seriously
impacted routine operations.
Staffing Changes
The FY 2020/21 Operating Budget has 161.3 budgeted FTEs, including temporary staff. This reflects an increase of
0.72 of FTEs compared to the prior year. The recommended FY 2020/21 staffing levels also reflect the following
changes from the prior year’s adopted budget:
Administrative Services and Town Offices - The FY 2020/21 budget reflects the remaining year of a part time,
two-year position to assist with the Town’s emergency preparedness activities and regional emergency
management engagement. The FY 2020/21 budget also includes a reclassification of an 1.0 FTE Payroll
Technician position to an 1.00 FTE Administrative Analyst position in the Finance Department.
PERS Pension Plan
FY
15/16
FY
16/17
FY
17/18
FY
18/19
FY
19/20
FY
20/21 FY 21/22
FY
22/23
FY
23/24
FY
24/25
FY
25/26
Safety Classic*32.36%36.18%39.36%46.09%52.22%58.98%63.67%72.14%75.91%79.46%81.56%
Safety Classic Management 55.22%61.98%66.67%75.14%78.91%82.46%84.56%
Safety PEPRA 12.25%13.96%15.02%15.95%15.99%16.58%17.14%15.29%15.71%
Miscellaneous (Classic & PEPRA)25.43%26.96%28.90%30.87%33.18%34.23%31.59%33.66%35.46%37.12%35.50%
* Safety Classic Rate reflects 3% decrease in employer's contribution rate to reflect 3% contribution as negotiated with the Town's POA during the
collective bargaining process effective FY 2019/20.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26
Safety Classic*Miscellaneous (Classic & PEPRA)Safety PEPRA Safety Classic Management
C - 51
SUMMARY OF PERSONNEL CHANGES
FY 2020/21
Community Development Department (CDD) –The FY 2020/21 budget includes the part-time Code Compliance
Officer position which will be continued for one more year in FY 2020/21 with one-time funding. The budget
also reflect a 0.12 FTE increase of an Associate Planner position.
Police – The FY 2020/21 budget contains one-time requests for Temporary Parking and Project Managers to
assist with the review and the implementation of the Comprehensive Parking Study and critical operational technology needs. The FY 2020/21 budget also includes reclassifications of 1 FTE Administrative Technician
position to a 1 FTE Administrative Analyst and 1 FTE Parking Control Officer position to a 1 FTE Senior Parking
Control Officer position.
Parks and Public Works (PPW) – The FY 2020/21 budget also includes a reclassification of a 1 FTE Engineer
Technician position to a 1 FTE Senior Engineer Technician position and a 0.25 FTE increase of the administrative
Assistant position.
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 2020/21 remain relatively consistent with prior
year rates. The Self-Insurance Fund Balance is declining as a result of adverse claims against the Town over the last
several years. Staff will closely monitor and recommend a budget strategy to be incorporated into the FY 2020/21
proposed budget.
Workers’ Compensation
The Workers’ Compensation fund balance is declining as a result of several new injuries that kept employees out of
work for extensive periods of time along with the cost of related medical procedures and continuing medical
expenses associated with past employee claims. The FY 2020/21 Workers’ Compensation rates remain at the prior
year level. Staff will closely monitor and recommend a budget strategy as needed.
Information Technology
The Information Technology (IT) program is funded through charge-back to the Departments. The charge is based
on the Department’s computer and printer equipment, established to fund the replacement cost of current
technology equipment.
C - 52
TOWN STAFF
POSITIONS BY HOME DEPARTMENT
2016/17 2017/18 2018/19 2019/20 2020/21
Funded Funded Funded Funded Proposed Comments
Town Attorney 1.00 1.00 1.00 1.00 1.00
Deputy Town Attorney 0.63 0.63 0.75 0.75 0.75
TOTAL DEPARTMENT FTEs 1.63 1.63 1.75 1.75 1.75
Town Manager 1.00 1.00 1.00 1.00 1.00
Assistant Town Manager 1.00 1.00 1.00 1.00 1.00
Assistant to Town Manager 1.00 - - - -
Administrative Anaylst - 1.00 1.00 1.00 1.00
Executive Asst. to Town Mgr.1.00 1.00 1.00 1.00 1.00
Economic Vitality Manager 0.63 0.75 0.75 0.75 0.75
Economic Vitality Coordinator -
Events & Marketing Specialist - 0.50 0.50 0.50 0.50
TOTAL DEPARTMENT FTEs 4.63 5.25 5.25 5.25 5.25
Human Resources Director 1.00 1.00 1.00 1.00 1.00
Administrative Analyst 1.00 1.50 1.00 1.00 1.00
Human Resources Technician 1.00 1.00 1.00 1.00 1.00
TOTAL DEPARTMENT FTEs 3.00 3.50 3.00 3.00 3.00
Finance Director 1.00 1.00 1.00 1.00 1.00
Finance & Budget Manager 1.00 1.00 1.00 1.00 1.00
Accountant/Finance Analyst 1.00 1.00 1.00 2.00 2.00
Payroll Technician 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE
Administrative Analyst 1.00 2.00 2.00 2.00 3.00 CY add 1.0 FTE
Account Technician 1.35 0.35 0.35 - -
TOTAL DEPARTMENT FTEs 6.35 6.35 6.35 7.00 7.00
Clerk Administrator 1.00 1.00 1.00 - -
Town Clerk - - - 1.00 1.00
Deputy Town Clerk - - - 1.00 1.00
Administrative Assistant - - - 1.00 1.00
Office Assistant 2.00 2.00 2.00 - -
TOTAL DEPARTMENT FTEs 3.00 3.00 3.00 3.00 3.00
IT Manager 1.00 1.00 1.00 1.00 1.00
Network Administrator 1.00 1.00 1.00 - -
IT Analyst - - 1.00 - -
IT Systems Administrator - - - 1.00 1.00
IT Technician 1.00 1.00 1.00 1.00 1.00
TOTAL DEPARTMENT FTEs 3.00 3.00 4.00 3.00 3.00
TOWN ATTORNEY'S OFFICE
TOWN MANAGER'S OFFICE
HUMAN RESOURCES
FINANCE SERVICES
CLERK ADMINISTRATION
INFORMATION TECHNOLOGY SERVICES
C - 53
TOWN STAFF
POSITIONS BY HOME DEPARTMENT
2016/17 2017/18 2018/19 2019/20 2020/21
Funded Funded Funded Funded Proposed Comments
Community Development Dir.1.00 1.00 1.00 1.00 1.00
Planning Manager 1.00 1.00 1.00 1.00 1.00
Chief Building Official 1.00 1.00 1.00 1.00 1.00
Administrative Analyst 1.00 1.00 1.00 1.00 1.00
Executive Assistant 1.00 1.00 1.00 1.00 1.00
Administrative Assistant 1.00 1.00 1.00 1.00 1.00
Senior Planner 2.00 2.00 2.00 2.00 2.00
Associate Planner 2.63 2.63 2.63 2.63 2.75 CY add .12 FTE
Assistant Planner 1.00 1.00 1.00 1.00 1.00
Planning Technician 1.00 1.00 1.00 1.00 1.00
Senior Building Inspector - - 1.00 1.00 1.00
Building Inspector 4.00 4.00 3.00 3.00 3.00
Permit Technician 2.00 2.00 2.00 2.00 2.00
Code Compliance Officer 1.00 1.00 1.00 1.00 1.00
TOTAL DEPARTMENT FTEs 19.63 19.63 19.63 19.63 19.75
Chief of Police 1.00 1.00 1.00 1.00 1.00
Police Captain 1.00 1.00 2.00 2.00 2.00
Police Lieutenant 2.00 2.00 - - -
Police Sergeant 6.00 6.00 7.00 7.00 7.00
Police Corporal 4.00 4.00 4.00 4.00 4.00
Police Officer 25.00 25.00 25.00 25.00 25.00
Community Outreach Coordinator 1.00 1.00 1.00 1.00 1.00
Community Services Officer 2.00 1.00 1.00 1.00 1.00
Police Records and Communication Mgr - - - 1.00 1.00
Police Records Manager 1.00 1.00 1.00 - -
Senior Administrative Analyst - - 1.00 1.00 1.00
Administrative Analyst 1.00 1.00 - - 1.00 CY add 1.0 FTE
Executive Assistant to Chief 1.00 1.00 1.00 1.00 1.00
Communications Dispatcher Lead 1.00 1.00 1.00 1.00 1.00
Communications Dispatcher 7.00 7.00 7.00 7.00 7.00
Senior Parking Control Officer 1.00 CY add 1.0 FTE
Parking Control Officer 2.00 2.00 2.00 2.00 1.00 CY delete 1.0 FTE
Police Records Specialist 4.00 4.00 4.00 4.00 4.00
Human Resources Specialist - 1.00 1.00 - -
Administrative Technician - - - 1.00 - CY delete 1.0 FTE
IT Systems Administrator - - - 1.00 1.00
TOTAL DEPARTMENT FTEs 59.00 59.00 59.00 60.00 60.00
POLICE
COMMUNITY DEVELOPMENT
C - 54
TOWN STAFF
POSITIONS BY HOME DEPARTMENT
2016/17 2017/18 2018/19 2019/20 2020/21
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 1.00 1.00
Town Engineer 1.00 1.00 - - -
Superintendent 1.00 1.00 1.00 1.00 1.00
Facilities & Environmental Services Mgr 1.00 - - - -
Transportation & Mobility Mgr - 1.00 1.00 1.00 1.00
Park & Public Works Operations Mgr - 2.00 2.00 2.00 2.00
Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00
Senior Administrative Analyst - - 1.00 1.00 1.00
Administrative Analyst 1.00 1.00 - - -
Executive Assistant 2.00 1.00 1.00 1.00 1.00
Administrative Assistant 2.00 2.00 2.50 2.50 2.75 CY add .25 FTE
Office Assistant 0.50 0.50 - - -
Environmental Programs Specialist - 1.00 1.00 1.00 1.00
Associate Engineer 2.00 2.00 2.00 2.00 2.00
Assistant Engineer 1.00 1.00 2.00 2.00 2.00
Construction Project Mgr 1.00 1.00 1.00 1.00 1.00
Senior Engineering Technician - - - - 1.00 CY add 1.0 FTE
Engineering Technician 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE
Sr Public Works Inspector 1.00 1.00 1.00 1.00 1.00
Public Works Inspector 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 - -
Lead Parks & Maint. Worker 3.00 3.00 3.00 3.00 3.00
Parks & Maintenance Worker 9.00 8.00 8.00 9.00 9.00
Equipment Mechanic 1.00 1.00 1.00 1.00 1.00
TOTAL DEPARTMENT FTEs 33.50 34.50 34.50 34.50 34.75
Library Director 1.00 1.00 1.00 1.00 1.00
Division Manager 2.00 2.00 2.00 2.00 2.00
Librarian 3.00 3.00 3.00 3.00 3.00
Library Technology Specialist 1.00 1.00 2.00 2.00 2.00
Library Assistant 1.00 1.00 - - -
Library Specialist 0.75 0.75 1.75 1.75 1.75
Customer Service Supervisor 1.00 1.00 - - -
Customer Service Specialist 1.50 1.50 1.75 1.75 1.75
Sr Library Page 1.00 1.00 1.00 1.00 1.00
TOTAL DEPARTMENT FTEs 12.25 12.25 12.50 12.50 12.50
TOTAL TOWN FTEs 145.98 148.10 148.97 149.63 150.00
PARKS and PUBLIC WORKS DEPARTMENT
LIBRARY
C - 55
TOWN STAFF
POSITIONS BY HOME DEPARTMENT
2016/17 2017/18 2018/19 2019/20 2020/21
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
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Hours by Department Funded Funded Funded Funded Proposed
Town Council 175 175 175 175 175
Administrative Services 2,196 2,196 1,376 2,350 2,350
Community Development 1,305 1,305 1,695 1,695 1,955
Police Department 3,422 5,502 3,035 3,035 4,350
Parks & Public Works 8,567 6,637 5,661 5,661 5,661
Library Department 9,546 9,796 9,294 9,294 8,450
Total Temporary Hours by Department 25,211 25,611 21,236 22,210 22,941
CONVERTED HOURLY EMPLOYEES 12.12 12.31 10.21 10.68 11.03 (1.00 FTE = 2080 hours)
ELECTED OFFICIALS
HOURLY EMPLOYEES
C - 56
Town Offices
This Page Intentionally Left Blank
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 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates. The FY 2020/21 Town Offices
budget is programmed to maintain existing staffing and service levels.
D – 4
TOWN OFFICES
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Service Charge -$ 30$ -$ -$ -$ -$
Interest - - - - - -
Fines & Forfeutires - 700 850 - - -
Other Revenues 2,634 - 677 - - -
TOTAL REVENUES 2,634$ 730$ 1,527$ -$ -$ -$
EXPENDITURES
Salaries and Benefits*422,766$ 426,102$ 666,306$ 742,204$ 690,267$ 768,434$
Operating Expenditures 164,622 86,578 88,366 104,606 64,125 104,606
Fixed Assets - - - - - -
Internal Service Charges 32,744 33,708 13,773 15,185 15,060 15,748
TOTAL EXPENDITURES 620,132$ 546,388$ 768,445$ 861,995$ 769,452$ 888,788$
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
PROGRAM
Town Council 193,584$ 192,183$ 205,903$ 240,605$ 206,469$ 243,485$
Town Attorney 426,548 354,205 562,542 621,390 562,983 645,303
TOTAL EXPENDITURES 620,132$ 546,388$ 768,445$ 861,995$ 769,452$ 888,788$
DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES
*Personnel previously budgeted in the Liability Self-Insurance Internal Service Fund are budgeted in the Town Attorney Program
beginning in FY 2018/19.
D – 5
TOWN OFFICES
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
General Fund Funded Funded Funded Funded Proposed
Town Attorney 0.60 0.60 1.00 1.00 1.00
Deputy Town Attorney 0.31 0.31 0.75 0.75 0.75
Deputy Town Clerk - - - 0.13 -
Executive Asst to the Town Mgr 0.50 0.50 0.50 0.50 0.50
Administrative Assistant - - - - 0.13
Office Assistant 0.13 0.13 0.13 - -
Total General Fund FTEs 1.54 1.54 2.38 2.38 2.38
Non-General Fund FTEs
Liability Self-Insurance
Town Attorney 0.35 0.35 - - -
Deputy Town Attorney 0.31 0.31 - - -
Total Liability FTEs 0.66 0.66 - - -
Workers Compensation
Town Attorney 0.05 0.05 - - -
Total Workers Comp FTEs 0.05 0.05 - - -
Total Town Offices FTEs 2.25 2.25 2.38 2.38 2.38
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
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 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates. The FY 2020/21 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.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Service Charge -$ -$ -$ -$ -$ -$
Interest - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES -$ -$ -$ -$ -$ -$
EXPENDITURES
Salaries and Benefits 168,321$ 169,966$ 190,652$ 216,993$ 188,586$ 219,824$
Operating Expenditures 22,141 19,032 14,598 23,250 17,550 23,250
Fixed Assets - - - - - -
Internal Service Charges 3,122 3,185 653 362 333 411
TOTAL EXPENDITURES 193,584$ 192,183$ 205,903$ 240,605$ 206,469$ 243,485$
SUMMARY OF REVENUES AND EXPENDITURES
D – 9
TOWN COUNCIL
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Executive Asst. to the Town Mgr.0.50 0.50 0.50 0.50 0.50
TOTAL PROGRAM FTEs 0.50 0.50 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 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
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.
• Provided litigation support for land use and California Environmental
Quality Act challenges.
Good Governance
Ensure
responsive,
accountable and
collaborate
government
• Prepared for and supported Council 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 Council
Finance Committee and the Town Pension and OPEB Trusts Oversight
Committee.
• Provided administrative and analytical support in staff report
development and review.
• Provided legal support for two proposed ballot initiatives.
D – 13
TOWN ATTORNEY
FY 2020/21 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 ordinance rewrite and amendments, 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.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Service Charge -$ 30$ -$ -$ -$ -$
Interest - - - - - -
Fines & Forfeitures - 700 850 - - -
Other Revenues 2,634 - 677 - - -
TOTAL REVENUES 2,634$ 730$ 1,527$ -$ -$ -$
EXPENDITURES
Salaries and Benefits*254,445$ 256,136$ 475,654$ 525,211$ 501,681$ 548,610$
Operating Expenditures 142,481 67,546 73,768 81,356 46,575 81,356
Fixed Assets - - - - - -
Internal Service Charges 29,622 30,523 13,120 14,823 14,727 15,337
TOTAL EXPENDITURES 426,548$ 354,205$ 562,542$ 621,390$ 562,983$ 645,303$
SUMMARY OF REVENUES AND EXPENDITURES
*Personnel previously budgeted in the Liability Self-Insurance Internal Service Fund are budgeted in the Town Attorney Program
beginning in FY 2018/19.
D – 14
TOWN ATTORNEY
Core Goals Key Projects
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.
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 Town Boards and
Commissions.
• 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)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Town Attorney 0.60 0.60 1.00 1.00 1.00
Deputy Town Attorney 0.31 0.31 0.75 0.75 0.75
Office Assistant 0.13 0.13 0.13 - -
Administrative Assistant - - - - 0.13
Deputy Town Clerk - - - 0.13 -
TOTAL PROGRAM FTEs 1.04 1.04 1.88 1.88 1.88
TOWN ATTORNEY STAFFING
D – 15
TOWN ATTORNEY
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Claims for denial or approval processed within 45 days
of filing:
90%95%95%95%95%
2.
a.Staff reports reviewed within 24 hours of receipt:90%90%95%95%95%
b.Contracts reviewed and signed within 48 hours of
receipt:*
90%90%90%90%90%
c.Staff questions and referrals responded to within 3
working days:
90%95%95%95%95%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.12 14 16 16 16
2.9 29 13 19 22
3.12 7 7 7 7
6.239 See Clerk See Clerk See Clerk See Clerk
7.8 6 3 2 0
8.22 29 16 14 18
9.52 52 52 52 52Number of City Council and Advisory Body meetings attended:
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 contracts reviewed:
D – 16
D – 17
Town Attorney
LIABILITY SELF-INSURANCE FUND
PROGRAM 1302
FUND PURPOSE
The Town is a member of the Joint Powers Authority Pooled Liability Assurance Network (PLAN)
insurance pool, a self-insurance program established in 1986 to provide general liability,
property insurance, and risk management services to 28 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 $50,000
deductible per occurrence. Self-Insurance rates have been established to allocate the cost of
this Internal Service Fund accurately to all programs based on staffing levels, thus more
accurately distributing and reflecting actual costs of services.
BUDGET OVERVIEW
The Self-Insurance Program is funded through departmental charges based on established
assessment rates per labor dollar expended. Service rates are established to maintain fund
balance capacity at a minimum of three times the annual operating expense. This rule of
thumb provides a funding source for potential claims against the Town. Excess funding is
reduced through lower service rates and transfers back to the General Fund. The Town
continues to receive grant funding and to make strides in the area of Risk Management.
D – 18
TOWN ATTORNEY
Liability Self-Insurance Program
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 1,403,449 885,441 994,770 1,313,305 1,313,305 1,255,256
Total Beginning Fund Balance 1,403,449 885,441 994,770 1,313,305 1,313,305 1,255,256
Revenues
Service Charge 497,401$ 506,519$ 365,155$ 443,727$ 375,554$ 418,135$
Interest - - - - - -
Other Revenues - - 291,997 - - -
Total Revenues 497,401$ 506,519$ 657,152$ 443,727$ 375,554$ 418,135$
TRANSFERS IN
Transfer from Equipment Replacement -$ -$ -$ -$ -$ -$
TOTAL TRANSFERS IN -$ -$ -$ -$ -$ -$
TOTAL REVENUES & TRANSFERS 497,401 506,519 657,152 443,727 375,554 418,135
TOTAL SOURCE OF FUNDS 1,900,850$ 1,391,960$ 1,651,922$ 1,757,032$ 1,688,859$ 1,673,391$
USES OF FUNDS
Expenditures
Salaries and Benefits 432,819$ 203,614$ -$ -$ -$ -$
Operating Expenditures 582,590 193,576 338,617 680,137 433,603 668,059
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
Total Expenditures 1,015,409$ 397,190$ 338,617$ 680,137$ 433,603$ 668,059$
Ending Fund Balance
Designated - - - - - -
Undesignated 885,441 994,770 1,313,305 1,076,895 1,255,256 1,005,332
Total Ending Fund Balance 885,441 994,770 1,313,305 1,076,895 1,255,256 1,005,332
TOTAL USE OF FUNDS 1,900,850$ 1,391,960$ 1,651,922$ 1,757,032$ 1,688,859$ 1,673,391$
* Personnel are budgeted in the Town Attorney Program beginning in FY 2018/19.
STATEMENT OF SOURCE AND USE OF FUNDS
D – 19
TOWN ATTORNEY
Liability Self-Insurance Program
FY 2020/21 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 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)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Town Attorney*0.35 0.35 - - -
Deputy Town Attorney*0.31 0.31 - - -
Administrative Analyst*0.10 0.10 - - -
Total Liability FTEs 0.76 0.76 - - -
LIABILITY SELF-INSURANCE PROGRAM STAFFING
*Personnel previously budgeted in in the Liability Self Insurance Internal Service fund are budgeted in the Town
Attorney Program beginning in FY 2018/19.
D – 20
Administrative Services
This Page Intentionally Left Blank
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. 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 to determine appropriate actions; and provides information
and specialized assistance on more complex Town issues.
The Administrative Services portion of Town Manager oversight encompasses responsibility 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. For budget
purposes, Administrative Services incorporates six key programs: Town Manager’s Office, Clerk
Department, Finance Department, Human Resources Department, Information Technology (IT),
Non-Departmental (i.e., Town services and functions that are not attributable to a single
Department). In addition, the Town’s Workers’ Compensation Fund is accounted for in the
Administrative Services. The following sections provide summaries of the Administrative
Services’ core services and service objectives.
BUDGET OVERVIEW
The majority of revenues which support Town wide services are accounted for in the Non-
departmental program within Administrative Services. For FY 2020/21, revenues captured in
Administrative Services reflect changes in Property Tax, Transient Occupancy Tax, Franchise Fees
Licenses and Permits, and Charges for Services due to the forecasted economic impact of the
D – 22
ADMINISTRATIVE SERVICES
COVID-19 pandemic and the mandated Public Health Orders. These revenue modifications are
informed by the Town’s sales tax consultant MuniServices, the County Tax Assessor,
communications with Los Gatos hoteliers, and other sources. These estimates are conservation,
assuming a recession scenario.
In terms of expenditures, the FY 2020/21 budget includes increases in salary and benefit costs
attributable to negotiated salary raises, and higher benefit and CalPERS pension rates.
The FY 2020/21 budget also reflects the second year of a part time, two-year position to assist
with the Town’s emergency preparedness activities and regional emergency management
engagement and the reclassification of the Payroll Technician position to an Administrative
Analyst position to better align current service delivery and needs.
D – 23
ADMINISTRATIVE SERVICES
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21ActualsActualsActualsAdoptedEstimatedProposed
REVENUES
Other Taxes 1,720,980$ 1,686,251$ 1,526,894$ 1,400,000$ 1,294,011$ 1,300,000$
Licenses and Permits - 965 11,405 114,415 88,654 92,964
Intergovernmental Revenues 19,998 - - - - -
Service Charges 1,019 60 200 - - -
Interest 171,653 930 1,196 - - -
Other Revenues 25,366 258,327 1,632,324 661,968 1,272,593 1,589,067
TOTAL REVENUES 1,939,016$ 1,946,533$ 3,172,019$ 2,176,383$ 2,655,258$ 2,982,031$
EXPENDITURES
Salaries and Benefits*2,138,861$ 2,493,535$ 3,341,837$ 4,076,442$ 3,610,441$ 4,216,498$
Operating Expenditures 355,651 368,698 347,429 450,411 393,051 467,261
Grants 128,809 119,800 136,513 142,500 142,500 150,000
Pass Through Accounts - - 2,845 7,194 - -
Fixed Assets - - - - - -
Internal Service Charges 201,762 211,962 103,182 138,592 135,874 140,856
TOTAL EXPENDITURES 2,825,083$ 3,193,995$ 3,931,806$ 4,815,139$ 4,281,866$ 4,974,615$
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
PROGRAM
Town Manager's Office 825,373$ 1,070,761$ 1,077,603$ 1,341,099$ 1,218,648$ 1,406,422$
Community Grants 119,800 119,800 136,513 142,500 142,500 150,000
Human Resources 552,914 630,554 678,490 761,991 734,548 785,883
Finance & Admin Services 1,002,075 1,049,871 1,145,906 1,545,213 1,279,576 1,550,837
Clerk Administration 315,912 322,976 349,776 438,948 376,422 459,193
Information Technolgy Management - 33 540,044 578,194 530,172 622,280
Smoking Restriction Implemantation 9,009 - 629 - - -
Pass Through - - 2,845 7,194 - -
TOTAL EXPENDITURES 2,825,083$ 3,193,995$ 3,931,806$ 4,815,139$ 4,281,866$ 4,974,615$
* Personnel previously budgeted in Administrative Services Department Internal Service Funds are budgeted in the General Fund beginning in FY 2018/19.
SUMMARY OF REVENUES AND EXPENDITURES
D – 24
ADMINISTRATIVE SERVICES
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
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 1.00 1.00
Assistant To Town Manager 1.00 - - - -
Executive Asst. to Town Mgr.0.50 0.50 0.50 0.50 0.50
Economic Vitality Manager - 0.30 0.30 0.30 0.30
Economic Vitality Coordinator 0.25 - - - -
Administrative Assistant - - - 1.00 0.88
Office Assistant 1.88 1.75 1.88 - -
Community Outreach Coordinator 1.00 - - - -
Human Resources Director 0.75 0.75 1.00 1.00 1.00
Administrative Analyst 1.70 4.10 4.00 4.00 5.00
Human Resources Technician 1.00 1.00 1.00 1.00 1.00
Finance Director 1.00 1.00 1.00 1.00 1.00
Finance & Budget Manager 1.00 1.00 1.00 1.00 1.00
Accountant/Finance Analyst 1.00 0.99 0.99 1.99 1.99
Payroll Technician 0.95 0.95 1.00 1.00 -
Account Technician 1.25 0.35 0.35 - -
Town Clerk - - - 1.00 1.00
Clerk Administrator 1.00 1.00 1.00 - -
Deputy Town Clerk - - - 0.88 1.00
Events & Marketing Specialist - 0.50 0.50 0.50 0.50
IT Manager - - 1.00 1.00 1.00
IT Systems Administrator - - - 1.00 1.00
Network Administrator - - 1.00 - -
IT Analyst - - 1.00 - -
IT Technician - - 1.00 1.00 1.00
Total General Fund FTEs 16.28 16.19 20.52 20.17 20.17
Non-General Fund FTEs (located in Administrative Services programs unless otherwise noted)
Successor Agency to the Los Gatos RDA
Accountant/Finance Analyst - 0.01 0.01 0.01 0.01
Total Successor Agency FTEs - 0.01 0.01 0.01 0.01
Equipment Replacement
Account Technician 0.10 - - - -
Administrative Analyst - 0.10 - - -
Total Equip Replace FTEs 0.10 0.10 - - -
Liability Self-Insurance
Administrative Analyst 0.10 0.10 - - -
Total Liability Self-Insurance 0.10 0.10 - - -
DEPARTMENT STAFFING
D – 25
ADMINISTRATIVE SERVICES
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Funded Funded Funded Funded Proposed
Workers Compensation
Human Resources Director 0.25 0.25 - - -
Payroll Technician 0.05 0.05 - - -
Administrative Analyst 0.20 0.20 - - -
Total Workers Comp FTEs 0.50 0.50 - - -
Information Technology Services
IT Manager 1.00 1.00 - - -
Network Administrator 1.00 1.00 - - -
IT Technician 1.00 1.00 - - -
Office Assistant - 0.13 - - -
Total IT FTEs 3.00 3.13 - - -
Total Admin Services FTEs 19.98 20.02 20.53 20.18 20.18
Temporary Staff Hours
Intern I 450 450 450 1,050 1,050
Facility Attendant 50 50 50 50 50
Administrative Analyst 726 726 626 - -
IT Technician 720 720 - - -
Mail Room Clerk (Library Dept Temps 250 250 250 250 250
Emergency Management - - - 1,000 1,000
Total Annual Hours 2,196 2,196 1,376 2,350 2,350
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 and programs 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 Committees and the Community and Senior Services Commission; and facilitate
associated projects and services of these Committees and the Commission; 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 2020/21 budget includes increases in salary and benefit costs attributed to negotiated
salary raises, and higher benefit and CalPERS pension rates. The FY 2020/21 Town Manager’s
Office budget is programmed to maintain existing staffing and service levels with the
continuation of a part time, two-year position to assist with the Town’s emergency preparedness
activities and regional emergency management engagement.
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 2020-2022 Town Council Strategic Priorities.
D – 28
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 support 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, including
updating policies to strengthen the economic vitality of the Town.
• Initiated work on the downtown parklet pilot program.
• Provided strategic guidance to the launch of the Town’s General Plan
update, involving all Town Departments and Boards, Commissions,
and Committees.
Good Governance
Ensure responsive,
accountable, and
collaborative
government
• Supported the Town Council in its decision making.
• Led streamlining efforts to improve the efficiency of Town processes.
• Provided administrative support to the Pension and OPEB Trusts
Oversight Committee to manage the additional discretionary monies
deposited into the Town’s IRS 115 Pension and healthcare accounts.
• Led an inter-departmental Communications Team with a goal of
creating a Town Communication Plan to increase community
engagement.
• Continued to increase transparency and community access to Town
financial information through the development of a dedicated Fiscal
Transparency webpage.
• Represented the Town in County-wide and regional forums.
• Supported the Town Council as it took positions on pending
legislation and funding items affecting Los Gatos.
• Continued to enhance community awareness and engagement
through increased content on the Town’s Facebook, Instagram,
Nextdoor and Twitter accounts.
• Promoted community participation in Town matters by signing up
for notifications through a dedicated email and Notify me on the
Town’s website.
D – 29
ADMINISTRATIVE SERVICES
Town Manager’s Office
Core Goals Accomplishments
Fiscal Stability
Maintain ongoing
fiscal stability to
provide cost
effective core
services that meet
the needs of the
community
• Led a series of Town Council discussions and in-depth examinations
of municipal financial practices.
• Led the development of additional discretionary payments directly
to CalPERS.
• Led the development of a comprehensive Town-wide budget.
• Provided technical and administrative support to the Council Finance
Committee as it advises the Town Council on options to reduce the
Town’s unfunded pension and other post-employment benefit
obligations.
• Conducted an initial community budget survey.
• Transitioned the Dittos Lane property to Below Market Price
Housing.
• Facilitated the sale of the Winchester Boulevard property.
Quality Public
Infrastructure
Maintain the
condition and
availability of
public facilities,
transportation
systems, and other
public
infrastructure
• Supported respective Council Members as they serve on regional
boards governing transportation, clean energy, and other topics.
• Led an inter-Departmental team regarding cut-through traffic and
staffed a hotline to respond to community input.
• Provided the Council and community with feedback received on the
completed one-way street pilot for North Santa Cruz Avenue and
supported the economic vitality and infrastructure elements of the
downtown parklet pilot program.
D – 30
ADMINISTRATIVE SERVICES
Town Manager’s Office
Core Goals Accomplishments
Civic Enrichment
Foster
opportunities for
citizen
involvement, and
cultural,
recreational, and
individual
enrichment
• Supported the Arts and Culture Commission in the implementation
of another phase of the Footbridge Restoration project, the Utility
Art Box Program, and potential funding sources for Town art.
• Provided oversight to the Leadership Los Gatos program which
promotes community enrichment and involvement.
• Worked with Jazz on the Plazz, Fiesta de Artes, Farmers’ Market, and
other community organizations regarding special events to ensure
consistency across organizations.
• Operated the 2019 Music in the Park summer concert series and
facilitated an RFP for future management.
• Hosted the Town’s annual Tree Lighting, Screen on the Green, and
Fourth of July events.
• Oversaw the continuation of the Town’s action items in support of
its World Health Organizations Age-Friendly Community Designation.
Public Safety
Ensure public
safety through
proactive
community
policing, effective
emergency
response, and
community-wide
emergency
preparedness
• Continued to participate in County-led Emergency Management
training programs and exercises.
• Continued to implement a comprehensive training plan for all Town
staff involved in the activation of the Emergency Operation Center.
• Expanded communication and coordination with County Fire and
other agencies regarding wildfire prevention and preparedness.
• Led the Town’s response to the COVID-19 emergency.
• Developed a Wildland Urban Interface Evacuation Assessment for
the Town.
• Adopted Annex 9 of the Santa Clara County Community Wildfire
Protection Plan.
• Enhanced the Town’s defensible space ordinances.
• Managed responses to three PG&E Public Safety Power Shutoff
events.
D – 31
ADMINISTRATIVE SERVICES
Town Manager’s Office
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits - 965 11,405 4,415 2,964 2,964
Intergovernmental Revenues - - - - - -
Service Charges 510 60 200 - - -
Interest - - - - - -
Other Revenues 7,129 13,565 17,384 25,000 799 500
TOTAL REVENUES 7,639$ 14,590$ 28,989$ 29,415$ 3,763$ 3,464$
EXPENDITURES
Salaries and Benefits 678,324$ 894,948$ 945,000$ 1,157,583$ 1,065,697$ 1,208,383$
Operating Expenditures 63,255 83,539 81,929 116,050 85,721 129,050
Grants - - - - - -
Pass Through Accounts - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 83,794 92,274 50,674 67,466 67,230 68,989
TOTAL EXPENDITURES 825,373$ 1,070,761$ 1,077,603$ 1,341,099$ 1,218,648$ 1,406,422$
SUMMARY OF REVENUES AND EXPENDITURES
D – 32
ADMINISTRATIVE SERVICES
Town Manager’s Office
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Community
Character
Preserve and
enhance the
appearance,
character, and
environmental
quality of the
community
Land Use Policies Review
Continue to support the Council Policy Committee in its evaluation of land
use and other policies.
Business Attraction and Retention
Continue to assist businesses to find available locations in Los Gatos and
encourage diverse and unique offerings in the downtown. Economic
Vitality staff will also continue to identify actions in collaboration with other
Town Departments to enhance overall community vitality for Council
consideration.
Music in the Park
Oversee the transition of production of the Music in the Park summer
concert series to a new management team.
Special Events
Continue to work with event organizers to fine tune the Special Events
Permit process, providing guidelines and other information to assist events
and processing all Special Event Permit applications.
General Plan Update
Continue to ensure all Departments and Town Commissions are actively
engaged in the General Plan Update, foster community involvement, and
provide strategic support to the Community Development Department
throughout the General Plan Update process.
COVID-19 Recovery
Leverage the Town organization to ensure an efficient and robust recovery
from the impacts of COVID-19.
D – 33
ADMINISTRATIVE SERVICES
Town Manager’s Office
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good Governance
Ensure responsive,
accountable, and
collaborative
government
Communication with the Public
Enhance the usefulness of the Town’s website and social media channels to
improve accessibility and transparency of information and services for the
public. Continue community budget survey efforts. Work with KCAT-TV to
develop and maintain a Town-branded YouTube page for viewing live and
archived Town Council and other meetings. Continue the new postcard
mailing program to all Los Gatos residents, businesses, and property owners
encouraging online engagement with the Town.
Town Council Policies
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. Continue to lead the inter-departmental Communications Team on
the development of a Town Communications Plan and supporting policies
and procedures.
Town Council Priorities
Lead an annual Strategic Priorities session with the Town Council to provide
guidance on policy, special projects, and key capital investments to align the
work of Town Department and Commissions with current and future
budgets.
IT
Complete migration of eFinance hosted 5.1 finance system to enhance
efficiencies and remove dependence on physical server data storage.
D – 34
ADMINISTRATIVE SERVICES
Town Manager’s Office
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Fiscal Stability
Maintain ongoing
fiscal stability to
provide cost
effective core
services that meet
the needs of the
community
Cost Containment
Continue to provide oversight on the 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 Town Pension and OPEB Trusts Oversight
Committee and Finance Committee to develop additional discretionary
payment strategies to address long-term pension liabilities.
Financial Information
Enhance the description of budget assumptions and graphic representation
to better explain the Town’s budget and other financial documents,
including developing alternate budget scenarios to illustrate the effects of
economic assumptions.
Property Asset Management
Continue to manage the research, analysis, and negotiations regarding the
potential sale and/or lease of remaining Town-owned properties.
Quality Public
Infrastructure
Maintain the
condition and
availability of
public facilities,
transportation
systems, and
other public
infrastructure
Downtown Parking
Support the Police Department in the implementation of the
Comprehensive Parking Study.
D – 35
ADMINISTRATIVE SERVICES
Town Manager’s Office
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Civic Enrichment
Foster
opportunities for
citizen
involvement, and
cultural,
recreational, and
individual
enrichment
Arts and Culture
Support the Arts and Culture Commission’s Gateway art project and the
Parks and Public Works’ Outside the Box Program.
Cultural Partnerships
Continue to oversee the ongoing partnerships with the Museums of Los
Gatos, the Friends of the Los Gatos Library, Los Gatos-Saratoga Recreation,
local school districts, and other organizations.
Age Friendly Goals
Support the community and Senior Services Commission in the
implementation of the Town’s current Age Friendly Goals, identification of
additional goals, and adoption of wellness initiatives.
Public Safety
Ensure public
safety through
proactive
community
policing, effective
emergency
response, and
community-wide
emergency
preparedness
Overall Emergency Preparedness
Increase emergency preparedness activities in collaboration with the
County Fire Department, County Office of Emergency Management, City of
Monte Sereno, and volunteer organizations. Staff and manage a part-time
Emergency Services Coordinator position. Work on updating and preparing
the Town’s Emergency Operations Center for activation when necessary.
Enhance the “emergency preparedness” sections of the Town’s website.
PG&E Shutoffs
Prepare for Summer 2020 PG&E Public Safety Power Shutoff Events and
update website information for future events.
COVID-19 Emergency
Continue to lead the town’s implementation of County Public Health
Orders.
D – 36
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, and the Community and
Senior Services Commission.
• Manages the provision of senior services at the Los Gatos Adult Recreation Center through
the long-term lease agreement with LGS Recreation.
• Manages the contracts with NUMU, Friends of the Library, LGS Recreation, and other
community organizations.
• Manages the Community Grant process in partnership with the Library Director.
• Oversees and executes Town events, such as 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/social media 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 – 37
ADMINISTRATIVE SERVICES
Town Manager’s Office
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
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 1.00 1.00
Administrative Analyst - 1.00 1.00 1.00 1.00
Deputy Town Clerk - - - 0.25 0.13
Assistant to Town Manager 1.00 - - - -
Executive Asst. to Town Mgr.0.50 0.50 0.50 0.50 0.50
Administrative Assistant - - - 0.13 0.25
Office Assistant 0.38 0.38 0.38 - -
Economic Vitality Manager - 0.30 0.30 0.30 0.30
Economic Vitality Coordinator 0.25 - - - -
Events & Marketing Specialist - 0.50 0.50 0.50 0.50
Total Manager's Program FTEs 4.13 4.68 4.68 4.68 4.68
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Facility Attendant 50 50 50 50 50
Emergency Management - - - 1,000 1,000
Administrative Analyst 100 100 - - -
Intern I 450 450 450 675 675
Total Annual Hours 600 600 500 1,725 1,725
TOWN MANAGER'S OFFICE STAFFING
D – 38
ADMINISTRATIVE SERVICES
Town Manager’s Office
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
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)
See Clerk See Clerk See Clerk See Clerk See Clerk
2.
a.6%10%2%2%2%
3.
a.Percentage of public art pieces in good to
excellent condition:
86%80%80%80%80%
b.Resident satisfaction with Arts and Cultural
opportunities in Los Gatos:
99%81%76%80%80%
4.
a.Percentage of businesses satisfied or very
satisfied with business assistance
received:**
98%Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
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 – 39
ADMINISTRATIVE SERVICES
Town Manager’s Office
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.See Clerk See Clerk See Clerk See Clerk See Clerk
2.304 414 744 662 700
3.
a.Number of Human Service grants:8 8 8 12 10
b.Number of Arts/Cultural/Educational grants:5 5 5 5 5
c. Number of Special Events grants:**Data Not
Available
Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
d.Dollar amount of Special Event grants:***Data Not
Available
Data Not
Available
$13,513 $10,000 $10,000
4.$119,800 $124,800 $136,513 $142,400 $150,000
5.27,930 40,000 29,000 30,000 30,000
6.4 4 4 4 4
7.30 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
8.315 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
9.Data Not
Available
Data Not
Available
Data Not
Available
Measure
Discontinued
Measure
Discontinued
10.Data Not
Available
75 100 85 90
11.Data Not
Available
Data Not
Available
Data Not
Available
Measure
Discontinued
Measure
Discontinued
12.Data Not
Available
50 75 65 65
* This measure was moved to Clerk Department during FY 2015/16.
**Measure discontinued effective FY 19/20.
***New measure effective FY 19/20.
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:
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: **
D – 40
COMMUNITY GRANT PROGRAM
The Community Grant program is undergoing a significant procedural change in FY2020/21
compared to previous years. Changes include shifting the grant calendar process for applications
and awards to earlier in the fiscal year and budgeting the lump sum amounts of all grant
expenditures rather than noting each individual grantee at the time of budget adoption. The
three expenditure lines that have been added for this fiscal year, “one-time grants,” “innovation
grants,” and “recurring grants,” are the lump sum amounts of all smaller grant funds that will be
dispersed to grantees after the application and award process is completed. When the FY2020/21
actuals are reported at the close of year, these lump sum amounts will be noted as individual
smaller grant amounts to the individual Grantees in order to compare historical budget year
trends. The total amount of grant funding budgeted for FY 2020/21 is $150,000.
ADMINISTRATIVE SERVICES
Town Manager’s Office
D – 41
ADMINISTRATIVE SERVICES
Town Manager’s Office
2016/17 2017/18 2018/19 2019/20 2020/21
Actuals Actuals Awarded Awarded Proposed
Grants to Award
Recurring Grants - - - - 70,000$
One- time Grants - - - - 74,000
Innovation Grants - - - - 6,000
Total Grants to Award 150,000$
Human Services Grants
Counseling and Support Services for Youth 15,000$ 10,000$ 10,000$ 20,000$ -$
LGS Recreation - 55+ Program - 10,000 15,000 15,000 -
LGS Recreation - Clubhouse Scholarship - 11,000 9,000 7,000 -
LGS Recreation - Summer Enrichment School Scholarship - - 4,000 4,000 -
Live Oak Adult Day Services 13,000 13,000 13,000 13,000 -
Live Oak Sr. Nutrition and Service 28,500 29,000 29,000 35,000 -
Los Gatos Community Concert Association 500 -
Next Door Solutions Dom. Violence 15,000 6,000 3,000 15,000 -
NUMU - Senior Explorer Program - - - 1,000 -
Parents Helping Parents - 1,000 - 6,000 -
Saratoga Area and Senior Coordinating Council - - - 5,000 -
Support Network 6,000 - - - -
United Way - 211 Funding 2,500 - - - -
West Valley Community Services 20,000 20,000 20,000 30,000 -
West Valley Muslim Association - - - 1,000 -
Total Human Services Grants 100,000$ 100,000$ 103,000$ 152,500$ -$
Arts, Cultural & Educational Grants
Art Docents of Los Gatos 4,000$ 4,000$ 4,000$ 3,000$ -$
Cat Walk - - - - -
Los Gatos Community Concert 3,800 5,000 5,000 4,000 -
Los Gatos High School New Millennium Foundation - 2019 STEAM - - - 3,000 -
Morning Rotary - 1,500 - 4,000 -
NUMU - Cataloguing - 2,800 - - -
NUMU - Youth Explorer Program 7,000 6,500 6,500 6,000 -
NUMU - Video Histories with KCAT Project - - 3,000 - -
Veterans M & S F of LG - Veteran's Day Celebration - - 1,500 - -
Youth Science Institute 5,000 - - - -
Total Arts, Cultural & Educational Grants 19,800$ 19,800$ 20,000$ 20,000$ -$
Special Events Grants
Special Events Grants -$ -$ 19,000$ 10,000$ -$
Total Special Events Grants -$ -$ 19,000$ 10,000$ -$
Total Grant Funding 119,800$ 119,800$ 123,000$ 172,500$ -$
Arts Funding
Arts & Culture Commission - 5,000 5,000 - -
Forbes Mill - - - - -
Total Arts Funding -$ 5,000$ 5,000$ -$ -$
Grand Total 119,800$ 124,800$ 147,000$ 182,500$ 150,000$
GRANTS AND ARTS FUNDING SUMMARY
D – 42
D – 43
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 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates. The FY 2020/21 Human Resource’s
budget is programmed to maintain existing staffing and service levels.
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 with succession planning; retention and training; and restructuring and redesigning
jobs for efficiencies as vacancies become available. In addition, Human Resources invested in
software focused on the automation of the performance evaluation process, new employee
onboarding, and creation of electronic forms to improve efficiencies.
D – 44
ADMINISTRATIVE SERVICES
Human Resources
ACCOMPLISHMENTS
Core Goals Accomplishments
Good
Governance
Ensure
responsive,
accountable and
collaborate
government
• Successfully recruited and onboarded 32 positions.
• Organized a Health and Wellness Fair for employees with various
local vendors in attendance offering preventative health screenings,
flu shots, healthy snacks, and wellness information.
• In compliance with SB 1343, training sessions were conducted
related to preventing workplace harassment, discrimination and
retaliation, including bullying and bystander segments, for all
employees and elected officials.
• In collaboration with the Town Attorney, created an administrative
policy to capture the new employee paid sick leave and expanded
family and medical leave provisions of the Families First Coronavirus
Response Act.
• Established a fully remote oral board experience using MS Teams to
ensure continuation of the recruitment process for vacancies during
the shelter-in-place Order.
• Received a Talent Action Program Recognition award sponsored by
Cal-ICMA in the employee attraction and recruitment category.
• Developed Disaster Service Worker (DSW) Procedure.
Fiscal Stability
Maintain
ongoing fiscal
stability to
provide cost
effective core
services that
meet the needs
of the
community
• Conducted the meet and confer process with AFSCME and TEA
related to the salary re-opener language in both contracts.
• Conducted a competitive request for proposal for the Town’s
workers’ compensation third party administrator (TPA) services and
replaced the Town’s long-standing TPA with LWP Claims Solutions.
• Amended the Town’s pension contract with CalPERS to implement
the negotiated change of a three percent additional contribution
toward the employer’s cost by Classic Members in the Police Officer
Association.
D – 45
ADMINISTRATIVE SERVICES
Human Resources
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Intergovernmental Revenues - - - - - -
Service Charges - - - - - -
Interest - - - - - -
Other Revenues 15,235 - - - - -
TOTAL REVENUES 15,235$ -$ -$ -$ -$ -$
EXPENDITURES
Salaries and Benefits*379,863$ 454,488$ 550,744$ 601,497$ 584,575$ 624,666$
Operating Expenditures 143,114 141,199 114,411 142,156 131,637 142,156
Grants - - - - - -
Pass Through Accounts - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 29,937 34,867 13,335 18,338 18,336 19,061
TOTAL EXPENDITURES 552,914$ 630,554$ 678,490$ 761,991$ 734,548$ 785,883$
SUMMARY OF REVENUES AND EXPENDITURES
* Personnel previously budgeted in the Workers' Compensation Internal Service Fund are budgeted in the Human Resources Program
beginning in FY 2018/19.
D – 46
ADMINISTRATIVE SERVICES
Human Resources
FY 2020/21 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.
Create an Administrative Policy to capture the new California Department of
Transportation provisions related to commercial drivers participating in a
nationwide clearing house database.
Labor Relations
Meet and confer regarding salary re-opener language related to the POA
contract prior to September 30, 2020.
Initiate and complete the negotiation process of the full labor contracts for the
TEA and AFSCME groups prior to June 20, 2021.
Training and Development
Develop and present an internal employee training program related to interview
and public presentation skills.
Continue to identify and make available other training opportunities.
Records Management
Activate the Forms module of the Town’s current recruitment platform, NeoGov,
to transition all Human Resources related forms to an electronic format allowing
for the creation of signature workflows/routing and a seamless upload to
employee files as well as automated delivery of executed forms to employees
and management.
Fiscal
Stability
Maintain
ongoing fiscal
stability to
provide cost
effective core
services that
meet the
needs of the
community
Recruitment/Onboarding
Implement the Onboarding module of the Town’s current recruitment platform,
NeoGov, to create efficiencies and consistencies in the hiring of new employees
as well as to deliver a welcoming experience.
Succession Planning
Continue to 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.
D – 47
ADMINISTRATIVE SERVICES
Human Resources
KEY PROGRAM SERVICES
• Provides effective administration and ensures legal compliance of employee relations
program.
• Conducts employee training and organizational development assessments.
• Administers, evaluates, and selects competitive employee benefits.
• Works collaboratively with Department managers to facilitate the Town’s recruitment and
selection programs.
• Administers and refreshes classification and compensation plans.
• Provides information and interpretation regarding Town personnel rules, regulations and
procedures, MOUs, administrative policies, and ordinances.
• Partners with the Town Manager’s Office and Town Attorney’s Office to resolve personnel
issues.
• Maintains employee personnel files, records, and documentation.
• Ensures all legislative changes related to the Human Resources program areas (i.e.,
employment, benefits, training, workers’ compensation, and recruitment) are communicated
and implemented in a timely manner.
• Manages the workers’ compensation program.
• Collaborates with the Parks and Public Works Department to administer the safety and
ergonomics programs, including supporting the Town’s employee Health and Safety
Committee.
• Develops, implements, revises, and maintains administrative policies and procedures to
ensure incorporation of legislative and Town-wide changes.
• Serves as advisor to employee recognition program.
• Provides support for Personnel Board activities.
• Participates in the development of multi-agency training programs, such as the Leadership
Academy.
D – 48
ADMINISTRATIVE SERVICES
Human Resources
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Human Resources Director*0.75 0.75 1.00 1.00 1.00
Administrative Analyst*0.80 1.30 1.00 1.00 1.00
Human Resources Technician 1.00 1.00 1.00 1.00 1.00
Office Assistant 0.13 - - - -
Total Human Resources FTEs 2.68 3.05 3.00 3.00 3.00
HUMAN RESOURCES PROGRAM STAFFING
*Personnel previously budgeted in Administrative Services Department Internal Service funds are budgeted in
the General Fund beginning in FY 2018/19.
D – 49
ADMINISTRATIVE SERVICES
Human Resources
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of employees rating benefit
program material, products, and services as
good to excellent:
95%94%96%98%98%
b.Percentage of employees rating
communication of the benefit program as good
to excellent:*
Not
Applicable
Not
Applicable
Not
Applicable
98%98%
2.
a.Percentage of employees rating the
effectiveness of training classes as good to
excellent:
82%83%79%96%96%
b.Percentage of employee evaluations completed
by due date:
90%90%Not
Applicable
Not
Applicable
Not
Applicable
c.Percentage of employees who have received a
formal evaluation in the last 12 months:*
Not
Applicable
Not
Applicable
Not
Applicable
75%95%
3.
a.Percentage of employees rating safety
programs as good or excellent based on
quality, content, and response:
76%78%Not
Applicable
Not
Applicable
Not
Applicable
4.
a.Percentage of hiring managers rating
recruitment process timeline as good to
excellent:
Not
Applicable
Not
Applicable
Not
Applicable
83%90%
5.
a.Percentage of labor agreements ratified prior
to expiration of existing contracts:
Not
Applicable
100%100%Not
Applicable
100%
b.Percentage of employees rating the availability
and timeliness of HR staff response to
inquiries as good to excellent:*
Not
Applicable
Not
Applicable
Not
Applicable
96%96%
To provide a competitive employee benefit package
that contributes to the recruitment and retention of
employees.*
To provide effective and efficient professional
development, training, and organizational
development.
To provide effective and efficient safety programs.
To provide effective and efficient employee relations
support.
To provide effective and efficient employee
recruitment services to departments.*
D – 50
ADMINISTRATIVE SERVICES
Human Resources
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.208 165 Not
applicable
Not
applicable
Not
applicable
2.26 31 15 33 25
3.3,100 2,147 2,139 2,540 2,300
4.9 8 15 15 10
5.50%56%42%44%48%
6.58 52 Not
applicable
Not
applicable
Not
applicable
7.Not
Applicable
Not
Applicable 248 202 230
8.Not
Applicable
Not
Applicable 4 8 8
9.Not
Applicable
Not
Applicable 24 6 12
10.Not
Applicable
Not
Applicable 21 23 34
11.Not
Applicable
Not
Applicable 2 5 6
12.Not
Applicable
Not
Applicable 9%13%10%
*New measure effective FY 20/21
Number of new employee onboarding sessions
conducted (full-time, part-time, and temporary):*
Number of job classifications revised or created:*
Vacancy rate:*
Number of (full-time, part-time, and temporary)
employees:
Number of recruitments conducted:
Number of employment applications reviewed:
Number of Workers' Compensation claims filed:
Percentage of eligible employees participating in
deferred compensation:
Number of sick leave hours used per benefitted
employee:
Number of Personnel Action Forms processed:*
Number of employee promotions:*
Number of ergonomic evaluations conducted:*
D – 51
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, Investing, 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 2020/21 budget reflects a decrease in business license tax revenue,
business license processing fees and interest earnings due to the effect of the international
COVID-19 pandemic. The Finance Program continues to monitor business license tax receipts
and implement improvements for collections. The FY 2020/21 budget includes increases in salary
and benefit costs attributable to negotiated salary raises, and higher benefit and CalPERS pension
rates. The FY 2020/21 budget reflects a reclassification of a Payroll Technician to an
Administrative Analyst to better align current service deliveries with Town needs.
D – 52
ADMINISTRATIVE SERVICES
Finance
ACCOMPLISHMENTS
Core Goals Accomplishments
Good
Governance
Ensure
responsive,
accountable and
collaborate
government
• Coordinated the successful development of the FY 2018/19
Comprehensive Annual Financial Report (CAFR) and corresponding
financial and compliance audit of the Town of Los Gatos.
• Achieved the GFOA’s Certificate of Achievement for Excellence in
Financial Reporting for the CAFR for the FY 2017/18.
• Achieved the GFOA’s Distinguished Budget Presentation Award for
the FY 2019/20 Operating Budget.
• 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
2020/21 Operating Budget and FY 2020/21-2024/25 Capital
Improvement Program for Council consideration.
• Managed the Town’s investments and prepared quarterly investment
reports.
• Supported the Successor Agency and its required filings.
• Supported the Council Finance Committee and Pension/OPEB
Oversight Committee.
• Provided ongoing fiscal controls for contracts and other Town
expenditures.
D – 53
ADMINISTRATIVE SERVICES
Finance
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes 1,720,980$ 1,686,251$ 1,526,894$ 1,400,000$ 1,294,011$ 1,300,000$
Licenses and Permits - - - 110,000 85,690 90,000
Intergovernmental Revenues - - - - - -
Service Charges 509 930 1,196 - - -
Interest 171,653 244,762 1,445,640 629,774 1,271,344 801,961
Other Revenues - - - - - -
TOTAL REVENUES 1,893,142$ 1,931,943$ 2,973,730$ 2,139,774$ 2,651,045$ 2,191,961$
EXPENDITURES
Salaries and Benefits*797,403$ 857,806$ 988,993$ 1,343,403$ 1,094,720$ 1,348,033$
Operating Expenditures 135,057 125,833 125,617 170,200 153,934 170,200
Grants - - - - - -
Pass Through Accounts - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 69,615 66,232 31,296 31,610 30,922 32,604
TOTAL EXPENDITURES 1,002,075$ 1,049,871$ 1,145,906$ 1,545,213$ 1,279,576$ 1,550,837$
SUMMARY OF REVENUES AND EXPENDITURES
* Personnel previously budgeted in various Internal Service Funds are budgeted in the Finance Program beginning in FY 2018/19.
D – 54
ADMINISTRATIVE SERVICES
Finance
FY 2020/21 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 and Accountant functions.
Fiscal Stability
Maintain ongoing
fiscal stability to
provide cost
effective core
services that meet
the needs of the
community
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.
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
Further support the Town Finance Committee as it pursues identifying
strategies to address the Town’s unfunded pension and OPEB liabilities,
and identify new revenue sources.
D – 55
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. Monitoring includes a Mid-
Year Budget Report.
• 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) and Pension Trusts.
• Tracks legacy Redevelopment 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 reconciliation; 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 – 56
ADMINISTRATIVE SERVICES
Finance
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Finance Director 1.00 1.00 1.00 1.00 1.00
Finance & Budget Manager 1.00 1.00 1.00 1.00 1.00
Accountant/Fin Analyst 1.00 0.99 0.99 1.99 1.99
Payroll Technician*0.95 0.95 1.00 1.00 -
Administrative Analyst*0.90 1.80 2.00 2.00 3.00
Account Technician 1.25 0.35 0.35 - -
Total Finance Services FTEs 6.10 6.09 6.34 6.99 6.99
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Funded Funded Funded Funded Proposed
Administrative Analyst 626 626 626 - -
Mail Room Clerk (Library Dept Temps)250 250 250 250 250
Total Annual Hours 876 876 876 250 250
FINANCE PROGRAM STAFFING
*Personnel previously budgeted in Administrative Services Department Internal Service Funds are budgeted in the
General Fund beginning in FY 2018/19.
D – 57
ADMINISTRATIVE SERVICES
Finance
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Average rate of return on investments:1.25%1.73%2.05%1.75%1.50%
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 bank statements reconciled to
general ledger within 30 days of month-end:*
60%80%80%90%100%
d.Percent of quarterly reports completed and
submitted to Council by deadlines:
100%100%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
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.4 4 4 4 4
2.0 0 0 0 0
3.7,855 7,643 7,185 6,900 7,000
4.68 62 57 62 62
5.186 186 185 186 186
6.4,057 4,468 4,293 4,350 4,350Number 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 – 58
D – 59
Administrative Services
CLERK ADMINISTRATION
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 manages the
Council agenda packet preparation, posting, and distribution. The Clerk Administration program
also provides administrative support to the Town Attorney.
BUDGET OVERVIEW
The FY 2020/21 budget includes increases in salaries and benefits costs attributed to negotiated
salary raises, and higher benefit and CalPERS pension rates. The FY 2020/21 Clerk’s budget is
programmed to maintain existing staffing and service levels.
D – 60
ADMINISTRATIVE SERVICES
Clerk Administration
ACCOMPLISHMENTS
Core Goals Accomplishments
Good Governance
Ensure responsive,
accountable and
collaborative
government
• Continued the creation of a Council Member Handbook as part of
the Town’s continuing efforts to increase efficiency and service to
the Town Council.
• Continued the update of the Retention Schedule and created the
required forms for transferring and destroying of records in
coordination with the Town Attorney and the Manager’s Office.
• Began using Municode Meetings as the agenda management
system for Town Council, Planning Commission, Council Finance
Committee, and Council Policy Committee meetings.
• Began storing Town Council and Planning Commission meeting
videos on the Town’s branded YouTube page through KCAT.
• In collaboration with the Town Attorney’s Office, administered the
Town’s role in processing two ballot initiatives for the November
2020 election.
• Explored remote participation software to support the Town
Council and other Town Commissions during the COVID-19
emergency.
• Administered DocuSign as a more efficient process for contract
review and approval.
Civic Enrichment
Foster
opportunities for
citizen
involvement, and
cultural,
recreational, and
individual
enrichment
• Presented an overview of the Clerk Department’s role and
responsibilities at Leadership Los Gatos, highlighting the Board,
Commission, and Committee Commissioner recruitment process.
D – 61
ADMINISTRATIVE SERVICES
Clerk Administration
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Intergovernmental Revenues - - - - - -
Service Charges - - - - - -
Interest - - - - - -
Other Revenues - - - - 450 -
TOTAL REVENUES -$ -$ -$ -$ 450$ -$
EXPENDITURES
Salaries and Benefits 283,271$ 286,260$ 317,056$ 397,425$ 335,277$ 413,136$
Operating Expenditures 14,225 18,127 24,843 22,005 21,759 25,855
Grants - - - - - -
Pass Through Accounts - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 18,416 18,589 7,877 19,518 19,386 20,202
TOTAL EXPENDITURES 315,912$ 322,976$ 349,776$ 438,948$ 376,422$ 459,193$
SUMMARY OF REVENUES AND EXPENDITURES
D – 62
ADMINISTRATIVE SERVICES
Clerk Administration
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good
Governance
Ensure
responsive,
accountable
and
collaborate
government
Records Retention
Continue to implement the Town’s Retention Policy, including procedures and
schedules.
Public Engagement
Celebrate 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.
Continue to participate in Town events and other opportunities to increase the
public’s awareness of the vital role of the Clerk Department.
Continue to participate in Leadership Los Gatos, highlighting the Board,
Commission, and Committee Commissioner recruitment process, how to
communicate with Council Members, and participate in public meetings.
Elections
Administer the Town role for the November 2020 election, including candidate
orientation and other tasks.
Quality Public
Infrastructure
Maintain the
condition and
availability of
public
facilities,
transportation
systems, and
other public
infrastructure
Public Document Accessibility
Makes various public documents available to the public through the Town’s
website. All resolutions and ordinances have been added to the repository and
the Department is now adding historical minutes so that the public can access
documents directly through the Town’s website.
Continue to utilize NetFile to facilitate e-filing for the required Fair Political
Practices Commission (FPPC) Form 700 and Campaign Statements. The system
allows the public to access the documents directly through the Town website.
D – 63
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) and campaign
statements 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.
• Processes and monitors all Town contracts.
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Clerk Administrator 1.00 1.00 1.00 - -
Town Clerk - - - 1.00 1.00
Deputy Town Clerk - - - 0.63 0.88
Administrative Assistant - - - 0.88 0.63
Office Assistant*1.25 1.38 1.50 - -
Total Clerk Admin FTEs 2.25 2.38 2.50 2.50 2.50
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Funded Funded Funded Funded Proposed
Intern 1 - - - 375 375
Total Annual Hours - - - 375 375
CLERK ADMINISTRATION STAFFING
*Personnel previously budgeted in Administrative Services Department Internal Service Funds are budgeted in
the General Fund beginning in FY 2018/19.
D – 64
ADMINISTRATIVE SERVICES
Clerk Administration
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
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:
99%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.**
95%95%95%95%95%
4.95%95%95%95%95%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.Number of Legislative Records indexed:
a.Number of resolutions indexed:70 68 57 60 65
b.240 262 242 250 260
c.52 65 53 50 50
d.Number of ordinances indexed:5 17 10 30 20
2.96 74 73 70 75
3.Number of commission and board seats available:****87 91 78 78 78
4.110 145 159 200 200
5.190 164 142 150 150
6.19 7 38 30 20
7.381 368 316 320 320
8.315 378 213 225 225
9.Number of Public Records Act requests processed:***135 139 133 140 150
* 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 Legal Notices published within established
timelines:Number of Fair Political Practices Commission (FPPC)
Form 700:
D – 65
Administrative Services
INFORMATION TECHNOLOGY STAFFING
PROGRAM 2502
PROGRAM PURPOSE
Information Technology (IT) staffing program reflects all salaries and benefits related to IT
staffing.
BUDGET OVERVIEW
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates. IT is providing increasingly critical
services and support as Town Departments offer online options to supplement in-person service
delivery.
D – 66
ADMINISTRATIVE SERVICES
Information Technology Staffing
ACCOMPLISHMENTS
Core Goals Accomplishments
Good Governance
Ensure responsive,
accountable, and
collaborative
government
Completed new, improved, and upgraded systems, including the
following:
• COVID19 remote staffing systems support
• Network redesign planning
• Wireless network system replacement
• Disaster recovery plan inventory
• Online mapping upgrades
• Security best practices improvements
• Electronic form and workflow improvements
• PC, laptop, and server replacements
• Accela development application system upgrade
• Laserfiche document management system upgrade
• Internet security upgrades
• Internet access provider reliability and performance upgrade
• Server operating systems and management systems upgrades
• System redundancy during PSPS and other power outage events
D – 67
ADMINISTRATIVE SERVICES
Information Technology Staffing
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Intergovernmental Revenues - - - - - -
Service Charges - - - - - -
Interest - - - - - -
Other Revenues - - 169,300 - - -
TOTAL REVENUES -$ -$ 169,300$ -$ -$ -$
EXPENDITURES
Salaries and Benefits*-$ 33$ 540,044$ 576,534$ 530,172$ 622,280$
Operating Expenditures - - - - - -
Grants - - - - - -
Pass Through Accounts - - - - - -
Fixed Assets - - - - - -
Internal Service Charges - - - 1,660 - -
TOTAL EXPENDITURES -$ 33$ 540,044$ 578,194$ 530,172$ 622,280$
SUMMARY OF REVENUES AND EXPENDITURES
* Personnel previously budgeted in Information Technology Internal Service Fund are budgeted in the Information Technology
Staffing Program beginning in FY 2018/19.
D – 68
ADMINISTRATIVE SERVICES
Information Technology Staffing
FY 2020/21 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 firewalls, switches, routers, servers, computers,
notebooks, and monitors, 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 cloud backup of servers to aid in disaster recovery. Improve
internet connection reliability and redundancy.
Network Redesign
Replace network components and redesign for added redundancy,
performance, and next generation security.
Civic Enrichment
Foster opportunities
for citizen
involvement, and
cultural, recreational,
and individual
enrichment
Online Services Improvements
Support Town Departments with exploring and implementing the
transition of services to online formats, when appropriate and consistent
with the Council’s Strategic Priorities, in order to improve access and
efficiency for the public.
D – 69
ADMINISTRATIVE SERVICES
Information Technology Staffing
FY 2020/21 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.
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
IT Manager*- - 1.00 1.00 1.00
Network Administrator*- - 1.00 - -
IT Systems Administrator - - - 1.00 1.00
IT Analyst - - 1.00 - -
IT Technician*- - 1.00 1.00 1.00
Total IT FTEs - - 4.00 3.00 3.00
INFORMATION TECHNOLOGY STAFFING
*Personnel previously budgeted in Information Technology Internal Service fund are budgeted in the
Information Technology Staffing General Fund program beginning in FY 2018/19.
Core Goals Key Projects
Public Safety
Ensure public safety
through proactive
community policing,
effective emergency
response, and
community-wide
emergency
preparedness
Police Support Technology
Assist with maintenance of Police IT systems and upgrades.
D – 70
ADMINISTRATIVE SERVICES
Information Technology Staffing
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of time service requests are
resolved within established guidelines:
87%85%80%96%98%
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:
98%97%98%96%98%
d.Percentage of customers rating support as
"good" or "excellent" based on quality of
service:
96%96%97%96%98%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.238 238 275 277 281
2.73 77 78 80 82
3.33 33 45 45 45
4.3,040 4,020 3,080 3,000 3,000
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
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 revenues which support Town wide services are accounted for in this program.
For FY 2020/21, revenues captured in Non-Departmental reflect changes in Property Tax,
Transient Occupancy Tax, Franchise Fees Licenses and Permits, and Charges for Services due to
the forecasted economic impact of the COVID-19 pandemic and the mandated Public Health
Orders. These revenue modifications are informed by the Town’s sales tax consultant,
MuniServices, the County Tax Assessor, communications with Los Gatos hoteliers, and other
sources. These estimates are conservation, assuming a COVID-19 impact scenario.
The Town of Los Gatos provides a defined benefit pension plan for all full-time employees and
some part time benefitted employees as part of their total compensation package. Defined
benefit plans provide a fixed, pre-established benefit payment for employees in retirement based
on a formula which takes into account an employee’s year of service and highest average annual
salary. The defined benefit pension has been a standard part of compensation in governmental
organizations and in Los Gatos is in lieu of participating in Social Security, except for the required
Medicare rate of 1.45% of all wages.
D – 72
ADMINISTRATIVE SERVICES
Non-Departmental
The Town’s pension plans are administered by the Board of Administration of the California
Public Employees’ Retirement System (CalPERS). The Board of Administration is responsible for
the management and control of CalPERS. In addition, the Board has exclusive control of the
administration and investment of funds.
The Town’s pension plans over the past several decades, like all other CalPERS participants, have
experience unfavorable investment returns, changes in actuarial assumptions, and unfavorable
demographic shifts which have outweighed any positive plan experiences, resulting in increasing
employer contributions. The CalPERS rates for FY 2020/21 are either 63.67% or 15.94% for public
safety employees, depending on date of entrance into CalPERS, and 34.23% for miscellaneous
employees.
The Town also provides a healthcare benefit for all eligible employees. The healthcare plan pays
all, or a portion of, health insurance premiums for qualified retirees and their survivors and
dependents. The Town’s healthcare plan is an Internal Revenue Code Section 115 Trust which is
administered by the Town Pension and OPEB Trusts Oversight Committee.
Photocopy and printer equipment, postage, and bulk mail expenditures are now centrally funded
through the Non-Departmental Program, and subsequently charged back to the appropriate
Department for services and materials utilized on a monthly basis. The Town maintains
approximately 45 printers and copiers. The lease and maintenance service includes toner and
repairs for all copiers and printers and the Non-Departmental Program pays for copy paper for
use on the printers and copiers.
The Non-Departmental Program includes the following:
• $4,622,500 payment toward unfunded pension liability.
• $1,268,000 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.
• $1,232,025 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.
• $676,479 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.
D – 73
ADMINISTRATIVE SERVICES
Non-Departmental
• $591,000 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.
• $240,000 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.
• $185,000 for Santa Clara County Election services, including for town Council seats and the
two citizen initiatives. The cost of the initiatives are $108,000.
• $139,900 for Santa Clara County’s Tax Administration fee for collecting and processing of the
Town’s assorted tax receipts.
• $100,000 for the Town Manager’s Contingency and Productivity Funds to address unforeseen
situations or opportunities that may arise during the fiscal year.
• $70,000 for special studies as needed.
• $60,000 for the Los Gatos Chamber of Commerce contract to provide support for the
Chamber’s information center and co-facilitation of the Leadership Los Gatos program.
• $55,000 for the KCAT for public meetings’ broadcasting and video streaming services.
• $20,000 for a Town Council Contingency Fund for the Council to address unique issues that
may arise during the fiscal year.
• $15,000 for employee health and wellness program.
• $15,000 for employee commuter benefits program.
• $10,000 for organizational development and training to address needs of the Town
organization when opportunities arise.
The Non-Departmental program budget also reflects a transfer of $3.4 million from the General
Fund Capital and Special Projects Reserve to the General Fund Appropriated Reserves (GFAR) to
support the Capital Improvement Program (CIP). The transfer supports capital projects as
outlined in the proposed Capital Improvement Program.
D – 74
ADMINISTRATIVE SERVICES
Non-Departmental
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21ActualsActualsActualsAdoptedEstimatedProposed
REVENUES
Property Tax 11,518,257$ 12,510,822$ 13,636,099$ 14,174,700$ 13,860,986$ 14,678,319$
VLF Backfill Property Tax 3,237,955 3,447,584 3,685,247 3,795,800 3,895,800 3,973,720
Sales & Use Tax 9,171,373 7,592,206 8,158,152 8,001,917 8,104,256 7,987,247
Franchise Fees 2,366,908 2,474,814 2,475,916 2,458,520 2,458,520 2,532,289
Other Taxes - - - - - -
Transient Occupancy Tax 2,322,910 2,628,927 2,692,043 2,848,730 1,874,052 2,287,671
Licenses & Permits 3,655 - 8,100 - - -
Intergovernmental Revenues 20,169 24,237 24,950 9,350 9,350 9,350
Lease Payments 1,923,303 1,914,739 1,909,073 1,905,024 1,905,024 1,908,494
Charges for Services 138,454 110,785 123,562 134,452 115,250 138,952
Fines & Forfeitures - - - - - -
Interest - - - - - -
Other Sources 1,978,162 514,713 3,997,192 160,036 1,364,473 160,036
TOTAL REVENUES 32,681,146$ 31,218,827$ 36,710,334$ 33,488,529$ 33,587,711$ 33,676,078$
TRANSFERS IN
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 102,000 102,000 102,000 102,000 102,000 102,000
Transfer from Traffic Mitigations 3,097 10,000 - 10,000 10,000 10,000
Transfer from Gas Tax 106,000 106,000 106,000 106,000 106,000 106,000
Transfer from Equipment Maintenance - - 774,991 - - -
Transfer from Stores - - 265,384 - - -
Transfer from SA - 6,300 - - - -
TOTAL TRANSFERS IN 216,017$ 229,220$ 1,253,295$ 222,920$ 222,920$ 222,920$
TOTAL REVENUES & TRANSFERS 32,897,163$ 31,448,047$ 37,963,629$ 33,711,449$ 33,810,631$ 33,898,998$
EXPENDITURES
Salaries and Benefits 497,408$ 402,057$ 125,416$ 50,000$ 3,572$ -$
Operating Expenditures 4,381,239 4,643,978 6,661,978 3,762,500 3,489,687 7,723,168
Charges for Services 5,493 - - 755 755 5,500
Debt Service 1,923,303 1,914,739 1,909,073 1,905,024 1,905,024 1,908,494
TOTAL EXPENDITURES 6,869,047$ 7,024,195$ 8,784,833$ 5,778,279$ 5,479,038$ 9,712,162$
TRANSFERS OUT
Transfers to GFAR 7,298,187$ 2,638,224$ 2,335,220$ 6,681,884$ 6,982,591$ 3,401,479$
Transfers to Pollution Prevention - - - 10,000 10,000 -
Transfer to Equipment Replacement - 300,000 450,000 - - -
Transfer to Facilities - 300,000 - - - -
Transfer to Workers' Comp - - - 1,061,256 1,232,654 -
Transfer to IT fund - 5,371 - - - -
TOTAL TRANSFERS OUT 7,298,187$ 3,243,595$ 2,785,220$ 7,753,140$ 8,225,245$ 3,401,479$
TOTAL EXPEND'S & TRANSFERS 14,167,234$ 10,267,790$ 11,570,053$ 13,531,419$ 13,704,283$ 13,113,641$
SUMMARY OF REVENUES AND EXPENDITURES
D – 75
ADMINISTRATIVE SERVICES
Non-Departmental
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Community Outreach Coordinator 1.00 - - - -
Total Non-Departmental FTEs 1.00 - - - -
NON-DEPARTMENTAL STAFFING
D – 76
D – 77
Administrative Services
INFORMATION TECHNOLOGY FUND
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 and more efficient services
• Operate as a team to achieve information technology goals
BUDGET OVERVIEW
The FY 2020/21 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. In addition, IT has
assisted behind-the-scenes in implementing new software to improve the processing of
contracts, records retention, and related back office work. These efforts result in increased costs
of licensing fees and other support.
The IT Program receives revenues through charges to General Fund and Special Revenue
Departmental programs based on service and equipment replacement costs. Service rates are
adjusted to build fund balance capacity for future technology projects.
D – 78
ADMINISTRATIVE SERVICES
Information Technology Fund
IT program expenses are budgeted to increase for FY 2020/21 due to the scheduled
replacements.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 2,888,452 2,251,332 2,156,438 2,513,097 2,513,097 2,531,053
Total Beginning Fund Balance 2,888,452 2,251,332 2,156,438 2,513,097 2,513,097 2,531,053
Revenues
Service Charge 981,378 1,016,399 295,330 769,223 766,534 827,219
Other Revenues 128,984 156,056 928,411 90,000 113,652 90,000
Total Revenues 1,110,362 1,172,455 1,223,741 859,223 880,186 917,219
TRANSFERS IN
From General Fund - 5,371 - - - -
TOTAL TRANSFERS IN - 5,371 - - - -
TOTAL REVENUES & TRANSFERS 1,110,362 1,177,826 1,223,741 859,223 880,186 917,219
TOTAL SOURCE OF FUNDS 3,998,814$ 3,423,787$ 3,380,179$ 3,372,320$ 3,393,283$ 3,448,272$
USES OF FUNDS
Expenditures
Salaries and Benefits*1,195,735$ 581,371$ -$ -$ -$ -$
Operating Expenditures 551,694 685,978 567,082 955,575 862,230 1,020,075
Fixed Assets - - - - - -
Internal Service Charges 53 - - - - -
Total Expenditures 1,747,482 1,267,349 567,082 955,575 862,230 1,020,075
Transfers Out
Transfer to General - - - - - 37,800
Transfer to Equipment Replacement - - - - - -
Transfer to GFAR - - 300,000 - - -
Total Transfers Out - - 300,000 - - 37,800
Total Expenditures & Transfers Out 1,747,482 1,267,349 867,082 955,575 862,230 1,057,875$
Ending Fund Balance
Designated - - - - - -
Undesignated 2,251,332 2,156,438 2,513,097 2,416,745 2,531,053 2,390,397
Total Ending Fund Balance 2,251,332 2,156,438 2,513,097 2,416,745 2,531,053 2,390,397
TOTAL USE OF FUNDS 3,998,814$ 3,423,787$ 3,080,179$ 3,372,320$ 3,393,283$ 3,410,472$
* Personnel are budgeted in the Information Technology Staffing Program beginning in FY 2018/19.
STATEMENT OF SOURCE AND USE OF FUNDS
D – 79
ADMINISTRATIVE SERVICES
Information Technology Fund
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
IT Manager*1.00 1.00 - - -
Network Administrator*1.00 1.00 - - -
IT Technician*1.00 1.00 - - -
Communications Coordinator - - - - -
Office Assistant*0.13 0.13 - - -
Total IT FTEs 3.13 3.13 - - -
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
IT Technician temp/hourly 720 720 - - -
Total Annual Hours 720 720 - - -
INFORMATION TECHNOLOGY FUND STAFFING
*Personnel previously budgeted in Information Technology Internal Service fund are budgeted in the
Information Technology Staffing General Fund program beginning in FY 2018/19.
D – 80
D – 81
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 $25 million. The Town belongs to the Local Agency Workers’ Compensation Excess (LAWCX)
Joint Powers Authority for the purpose of pooling for this excess insurance. A third party
administrator, LWP Claims Solutions, coordinates the Town’s day-to-day workers’ compensation
claims administration.
BUDGET OVERVIEW
Revenues to fund this program are derived as a percentage of salary each payroll period. Each
Department pays a portion of the program’s cost based on gross wages and level of risk for the
various job classifications within the Department. The annual appropriation to this fund
represents the self-insurance premiums paid by the operating Departments. Service rates are
established which maintain fund balance capacity at approximately two and one-half times the
annual operating expenditures. Any excess funds are returned through reduced rates and fund
balance transfers as needed.
Program costs covered in the internal rates include administration fees, claim settlement costs,
attorney fees (outside counsel), medical expenses, payment for temporary and permanent
disability, safety program administration and training, and excess insurance premiums. The
budget for workers’ compensation is based on actual payroll in the same manner as prior years.
In Fiscal Year 2015/16 staff increased rates by 1.5% to begin restoring fund balance which has
significantly declined in the last few years due to several on the job-related injuries.
D – 82
ADMINISTRATIVE SERVICES
Workers’ Compensation Fund
Staff is not anticipating to further increase the rate this Fiscal Year.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 1,213,324 902,308 620,726 843,079 843,079 1,244,531
Total Beginning Fund Balance 1,213,324 902,308 620,726 843,079 843,079 1,244,531
Revenues
Service Charge 868,527 884,190 875,419 1,026,229 894,339 1,000,906
Interest 8 5 8 - - -
Other Revenues 157,820 250,945 617,554 - 288,304 185,000
Total Revenues 1,026,355 1,135,140 1,492,981 1,026,229 1,182,643 1,185,906
TRANSFERS IN
From General Fund - - - 1,061,256 1,232,654 -
TOTAL TRANSFERS IN - - - 1,061,256 1,232,654 -
TOTAL REVENUES & TRANSFERS 1,026,355 1,135,140 1,492,981 2,087,485 2,415,297 1,185,906$
TOTAL SOURCE OF FUNDS 2,239,679$ 2,037,448$ 2,113,707$ 2,930,564$ 3,258,376$ 2,430,437$
USES OF FUNDS
Expenditures
Salaries and Benefits*278,539$ 137,014$ -$ -$ -$ -$
Operating Expenditures 1,058,832 1,279,708 1,270,628 1,657,210 2,013,845 1,775,300
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
Total Expenditures 1,337,371 1,416,722 1,270,628 1,657,210 2,013,845 1,775,300
Transfers Out
Transfer to Grant Funds - - - - - -
Transfer to General Fund - - - - - -
Total Transfers Out - - - - - -
Total Expenditures & Transfers Out 1,337,371 1,416,722 1,270,628 1,657,210 2,013,845 1,775,300
Ending Fund Balance
Designated - - - - - -
Undesignated 902,308 620,726 843,079 1,273,354 1,244,531 655,137
Total Ending Fund Balance 902,308 620,726 843,079 1,273,354 1,244,531 655,137
TOTAL USE OF FUNDS 2,239,679$ 2,037,448$ 2,113,707$ 2,930,564$ 3,258,376$ 2,430,437$
* Personnel are budgeted in the Human Resources Program beginning in FY 2018/19.
STATEMENT OF SOURCE AND USE OF FUNDS
D – 83
ADMINISTRATIVE SERVICES
Workers’ Compensation Fund
FY 2020/21 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)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Human Resources Director*0.25 0.25 - - -
Town Attorney*0.05 0.05 - - -
Payroll Technician*0.05 0.05 - - -
Administrative Analyst*0.20 0.20 - - -
Total Workers Compensation FTEs 0.55 0.55 - - -
WORKERS' COMPENSATION FUND STAFFING
*Personnel previously budgeted in Administrative Services Department Internal Service funds are budgeted in the
General Fund beginning in FY 2018/19.
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 – 84
D – 85
Administrative Services
OFFICE STORES FUND
FUND 622
FUND PURPOSE
The Town closed the Office Stores Fund at the end of FY 2018/19. Residual fund balance was
added to the General Fund Assigned Reserve. Town Council programmed the residual balance
toward the Downtown Revitalization capital project.
D – 86
ADMINISTRATIVE SERVICES
Office Stores Fund
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 183,127 200,437 227,791 - - -
Total Beginning Fund Balance 183,127 200,437 227,791 - - -
Revenues
Service Charge 125,377 122,247 124,574 - - -
Interest - - - - - -
Other Revenues 5,143 5,539 17,364 - - -
Total Revenues 130,520 127,786 141,938 - - -
Transfers In
Equipment Replacement Fund - - - - - -
Total Transfers In - - - - - -
Total Revenues & Transfers In 130,520 127,786 141,938 - - -
TOTAL SOURCE OF FUNDS 313,647$ 328,223$ 369,729$ -$ -$ -$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 113,210 100,432 104,345 - - -
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
Total Expenditures 113,210 100,432 104,345 - - -
Transfers Out
Transfer to General Fund - - 265,384 - - -
Total Transfers Out - - 265,384 - - -
Total Expenditures & Transfers Out 113,210 100,432 369,729 - - -
Ending Fund Balance
Designated - - - - - -
Undesignated 200,437 227,791 - - - -
Total Ending Fund Balance 200,437 227,791 - - - -
TOTAL USE OF FUNDS 313,647$ 328,223$ 104,345$ -$ -$ -$
STATEMENT OF SOURCE AND USE OF FUNDS
Community Development
This Page Intentionally Left Blank
D – 87
Community Development Department
DEPARTMENT PURPOSE
The Community Development Department 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 2020/21. 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 2020 and 2021.
In keeping with the Town’s financial policies, the Department’s development related services
are supported by fees based on the 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 stay consistent with the previous year and are expected to 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 – 88
COMMUNITY DEVELOPMENT DEPARTMENT
For FY 2020/21, total Department budgeted revenues are projected to trend slightly lower due
to an expected slight reduction in permit activity. The FY 2020/21 budget includes increases in
salary and benefit costs attributable to negotiated salary raises, and higher benefit and CalPERS
pension rates. Budgeted salary and benefit expenditures include an additional .125 increase for
the part-time Associate Planner and an additional 260-hour increase for the part time Code
Compliance Officer position being continued for another year in FY 2020/21 with one-time
funding.
The Community Development Department budget consists of the following programs:
Administration, Development Review, Advanced Planning, Building and Inspection Services,
Code Compliance, Below Market Price (BMP) Housing Program, and Pass-Through accounts.
D – 89
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.
• Continued the general plan update process.
• Town Council has adopted, town code amendments for:
o Hillside Fencing;
o Parking lot, valet parking, parking assessment district,
demolition regulations;
o Land use appeals process;
o Land use and economic vitality streamlining;
o ADUS; and
o Family daycare homes.
• By the end of FY 2020/21, the Town Council is expected to have
considered amendments for:
o Used car sales; and
o BMPs.
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 business day to meet
construction timelines.
• Contacted reporting parties for Code Compliance cases within
published timelines.
• Updated Building and Planning information forms and handouts.
• Review of North 40 Phase 1 building permits.
D – 90
COMMUNITY DEVELOPMENT DEPARTMENT
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Adopted
REVENUES
Licenses and Permits 2,261,235$ 2,050,622$ 2,108,593$ 2,475,000$ 2,265,834$ 2,216,000$
Intergovrnmental Revenue - - 36,225 95,200 15,000 67,500
Service Charge 1,537,668 1,403,967 1,979,479 2,393,343 1,675,929 1,990,285
Fines & Forfeitures 5,225 4,800 60,158 4,000 15,200 5,000
Other Revenues (468) 375,656 19,155 - 960 10,000
TOTAL REVENUES 3,803,660$ 3,835,045$ 4,203,610$ 4,967,543$ 3,972,923$ 4,288,785$
EXPENDITURES
Salaries and Benefits 2,567,589$ 2,846,578$ 3,144,895$ 3,679,531$ 3,228,387$ 3,816,141$
Operating Expenditures 961,441 1,054,874 1,272,394 1,910,621 1,164,364 1,526,894
Grants - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 264,901 290,711 160,206 169,948 168,873 173,995
TOTAL EXPENDITURES 3,793,931$ 4,192,163$ 4,577,495$ 5,760,100$ 4,561,624$ 5,517,030$
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Adopted
PROGRAM
Administration 221,508$ 222,614$ 210,791$ 303,002$ 253,803$ 330,196$
Development Review 1,135,513 1,258,291 1,329,381 1,528,945 1,323,785 1,580,428
Advanced Planning 314,024 336,023 766,110 1,463,555 616,070 1,091,310
Inspection Services 1,132,888 1,290,433 1,316,494 1,473,613 1,325,123 1,493,076
Code Compliance 206,572 209,720 255,324 275,442 246,975 299,679
BMP Housing Program 195,991 190,833 144,713 183,043 197,468 189,841
Pass Thru Accounts 587,435 684,249 554,682 532,500 598,400 532,500
TOTAL EXPENDITURES 3,793,931$ 4,192,163$ 4,577,495$ 5,760,100$ 4,561,624$ 5,517,030$
DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES
D – 91
COMMUNITY DEVELOPMENT DEPARTMENT
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Community Development Dir.1.00 1.00 1.00 1.00 1.00
Planning Manager 1.00 1.00 1.00 1.00 1.00
Chief Building Official 1.00 1.00 1.00 1.00 1.00
Economic Vitality Manager - 0.45 0.45 0.45 0.45
Economic Vitality Coordinator 0.38 - - - -
Administrative Analyst 0.99 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 2.63 2.63 2.63 2.63 2.75
Assistant Planner 1.00 1.00 1.00 1.00 1.00
Planning Technician 1.00 1.00 1.00 1.00 1.00
Senior Building Inspector - - 1.00 1.00 1.00
Building Inspector 4.00 4.00 3.00 3.00 3.00
Permit Technician 2.00 2.00 2.00 2.00 2.00
Code Compliance Officer 1.00 1.00 1.00 1.00 1.00
Total Community Development FTEs 19.99 20.08 20.08 20.08 20.20
2016/17 2017/18 2018/19 2019/20 2020/21
Successor Agency to the Los Gatos RDA Funded Funded Funded Funded Proposed
Administrative Analyst 0.01 - - - -
Total SA FTEs 0.01 - - - -
Total Community Dev. FTEs 20.00 20.08 20.08 20.08 20.20
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Associate Planner Temp/Hrly 915 915 915 915 915
Community Service Officer Temp/Hrly 390 390 780 780 780
Total Annual Hours 1,305 1,305 1,695 1,695 1,695
COMMUNITY DEVELOPMENT DEPARTMENT STAFFING
D – 92
D – 93
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 Administration Program continues to keep the Community Development Department
focused on management of the Department, including budget preparation and monitoring. The
FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
D – 94
COMMUNITY DEVELOPMENT DEPARTMENT
Administration
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Adopted
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue - - - - - -
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues - - 7,500 - - -
TOTAL REVENUES -$ -$ 7,500$ -$ -$ -$
EXPENDITURES
Salaries and Benefits 180,770$ 182,152$ 184,080$ 232,029$ 176,892$ 255,068$
Operating Expenditures 9,708 9,936 3,225 6,650 12,756 6,650
Grants - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 31,030 30,526 23,486 64,323 64,155 68,478
TOTAL EXPENDITURES 221,508$ 222,614$ 210,791$ 303,002$ 253,803$ 330,196$
SUMMARY OF REVENUES AND EXPENDITURES
D – 95
COMMUNITY DEVELOPMENT DEPARTMENT
Administration
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good Governance
Ensure
responsive,
accountable, and
collaborative
government
Staff Training
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
Continue training opportunities 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
General Plan Update
Continue the General Plan Update process.
Short Term Rental
Assist with implementation of the new Short Term Rental ordinance.
D – 96
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 the General Plan Update and Environmental Impact Report (EIR)
implementation process.
• Develop and mentor Department staff.
• Manage the annual Department work plan.
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Community Development Dir.0.30 0.30 0.25 0.25 0.25
Planning Manager 0.10 0.10 0.10 0.10 0.10
Administrative Analyst 0.29 0.30 0.30 0.30 0.30
Executive Assistant 0.10 0.25 0.30 0.30 0.30
Administrative Assistant 0.05 0.05 0.15 0.15 0.15
Total Administration FTEs 0.84 1.00 1.10 1.10 1.10
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Associate Planner Temp/Hrly 915 915 915 915 915
Total Annual Hours 915 915 915 915 915
ADMINISTRATION PROGRAM STAFFING
D – 97
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
approved fee schedule. These fees continue to help support the operating expenditures,
thereby ensuring on-going cost recovery.
For FY 2020/21, budgeted revenues are projected to trend slightly lower due to an expected
slight reduction in permit activity.
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
D – 98
COMMUNITY DEVELOPMENT DEPARTMENT
Development Review
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits 515,744$ 556,435$ 507,080$ 450,000$ 425,504$ 400,000$
Service Charges 177,506 151,079 174,812 157,500 149,623 142,000
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES 693,250$ 707,514$ 681,892$ 607,500$ 575,127$ 542,000$
EXPENDITURES
Salaries and Benefits 965,736$ 1,115,972$ 1,235,711$ 1,418,982$ 1,227,106$ 1,476,188$
Operating Expenditures 110,526 76,549 69,782 81,600 68,710 74,450
Grants - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 59,251 65,770 23,888 28,363 27,969 29,790
TOTAL EXPENDITURES 1,135,513$ 1,258,291$ 1,329,381$ 1,528,945$ 1,323,785$ 1,580,428$
SUMMARY OF REVENUES AND EXPENDITURES
D – 99
COMMUNITY DEVELOPMENT DEPARTMENT
Development Review
FY 2020/21 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
Continue to enhance the development review process by:
• Coordinating Arborist/Architect/Landscape Water and Conservation
consultants’ peer review processes;
• Revising/updating development application forms and website
information;
• Implementing Town Code amendments to improve the development
process; and
• Providing timely planning application review and customer service to
all parti3201cipants 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 property:
• 110 Wood Road Planned Development (may be approved FY 20-21)
Fiscal Stability
Maintain ongoing
fiscal stability to
provide cost
effective core
services that
meet the needs of
the community
Cost Recovery
• Ensure ongoing cost recovery.
D – 100
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; Accessory Dwelling Units; Mobile Home Park Conversions; and
Environmental Review.
Major Projects
• Implement North 40 Phase 1.
D – 101
COMMUNITY DEVELOPMENT DEPARTMENT
Development Review
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Community Development Dir.0.30 0.30 0.30 0.30 0.30
Planning Manager 0.60 0.60 0.55 0.55 0.55
Chief Building Official 0.10 0.10 0.10 0.10 0.10
Economic Vitality Manager - 0.45 0.45 0.45 0.45
Economic Vitality Coordinator 0.38 - - - -
Administrative Analyst 0.35 0.35 0.35 0.15 0.15
Executive Assistant 0.65 0.65 0.65 0.65 0.65
Administrative Assistant 0.70 0.70 0.70 0.70 0.70
Senior Planner 1.70 1.40 1.30 1.30 1.30
Senior Building Inspector - - 0.10 0.10 0.10
Associate Planner 2.03 1.93 1.93 1.93 2.05
Assistant Planner 0.80 0.80 0.80 0.80 0.80
Planning Technician 1.00 0.90 0.90 0.90 0.90
Permit Technician 0.10 0.10 0.10 0.10 0.10
Total Development Review FTEs 8.70 8.28 8.23 8.03 8.15
DEVELOPMENT REVIEW PROGRAM STAFFING
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.100%100%100%100%100%
2.
a.Percentage of applications continued by
Planning Commission:
43%15%15%7%10%
b.Percentage of Planning Commission
decisions upheld by Town Council:
50%70%50%100%75%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.380 494 388 340 375
2.25 19 19 11 15
3.10,026 9571 13,833 5,268 11,000
4.17 25 18 14 20Number 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.
Facilitate the development of land and structures
consistent with Town codes, plans and policies.
D – 102
D – 103
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 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
Budgeted expenditures for FY 2020/21 will decrease to stay within the multi-year contract
obligation associated with the General Plan update. The General Plan update will be funded
through General Plan Fees already collected.
D – 104
COMMUNITY DEVELOPMENT DEPARTMENT
Advanced Planning
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue - - 36,225 95,200 15,000 67,500
Service Charges 149,224 142,006 533,809 1,035,000 224,532 649,444
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES 149,224$ 142,006$ 570,034$ 1,130,200$ 239,532$ 716,944$
EXPENDITURES
Salaries and Benefits 257,885$ 272,773$ 346,413$ 400,124$ 363,606$ 426,823$
Operating Expenditures 40,161 46,379 413,201 1,057,690 246,785 658,513
Grants - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 15,978 16,871 6,496 5,741 5,679 5,974
TOTAL EXPENDITURES 314,024$ 336,023$ 766,110$ 1,463,555$ 616,070$ 1,091,310$
SUMMARY OF REVENUES AND EXPENDITURES
FY 2020/21 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
• Prepare amendments to Town Code and guidelines, and other action
items to implement the adopted General Plan, Housing Element,
Sustainability Plan, recent State laws, and Town Council strategies
priorities, including streamlining Land Use processes.
• Continue the General Plan update process.
• Update the Below Market Price (BMP) Program Guidelines.
• Complete Census 2020 activities.
• Develop objective standards, including planning grants application.
D – 105
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)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Community Development Dir.0.35 0.35 0.40 0.40 0.40
Planning Manager 0.30 0.20 0.25 0.25 0.25
Executive Assistant 0.05 0.05 0.05 0.05 0.05
Administrative Assistant 0.20 0.10 0.10 0.10 0.10
Senior Planner 0.20 0.40 0.50 0.50 0.50
Associate Planner 0.25 0.40 0.40 0.40 0.40
Assistant Planner 0.20 0.10 0.10 0.10 0.10
Total Advanced Planning FTEs 1.55 1.60 1.80 1.80 1.80
ADVANCED PLANNING PROGRAM STAFFING
D – 106
COMMUNITY DEVELOPMENT DEPARTMENT
Advanced Planning
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
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
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.1 4 10 10 5
2.0 0 0 0 0
3.0 1 1 1 3
4.2 2 1 1 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 – 107
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 California Building Codes, disabled access regulations, and other
state and local ordinances; and coordinate the duties of the Plan Check Consultants, which
provides complex structural and engineering plan check services.
BUDGET OVERVIEW
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates. Total Department budgeted
revenues are projected to trend slightly lower due to an expected slight reduction in permit
activity.
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 continue to monitor the new permit
requirements and evaluate the potential to recover additional costs imposed by the NPDES
permit during FY 2020/21.
D – 108
COMMUNITY DEVELOPMENT DEPARTMENT
Building & Inspection Services
The Building Division also assists with code compliance violations that are related to
construction and sub-standard housing. Contract Plan Check consultants continue to provide
plan check services on a cost-recovery basis.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits 1,745,491$ 1,494,187$ 1,601,513$ 2,025,000$ 1,840,330$ 1,816,000$
Service Charges 427,562 608,880 571,244 485,000 506,672 476,500
Fines & Forfeitures - - - - - -
Other Revenues (468) 2,576 11,655 - 960 10,000
TOTAL REVENUES 2,172,585$ 2,105,643$ 2,184,412$ 2,510,000$ 2,347,962$ 2,302,500$
EXPENDITURES
Salaries and Benefits 901,600$ 1,022,585$ 1,072,534$ 1,282,398$ 1,143,991$ 1,281,011$
Operating Expenditures 88,088 105,641 143,516 124,306 114,588 147,081
Grants - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 143,200 162,207 100,444 66,909 66,544 64,984
TOTAL EXPENDITURES 1,132,888$ 1,290,433$ 1,316,494$ 1,473,613$ 1,325,123$ 1,493,076$
SUMMARY OF REVENUES AND EXPENDITURES
D – 109
COMMUNITY DEVELOPMENT DEPARTMENT
Building & Inspection Services
FY 2020/21 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
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
Continue several significant projects into FY 2020/21 including: several new
large custom homes and tenant improvements. 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:
• 400 Carlton
• North 40 Phase 1
• 405 Alberto Way
• 400-420 Blossom Hill Road
• 258 Union Avenue
Good
Governance
Ensure
responsive,
accountable, and
collaborative
government
Improvements to Plan Checking Services
To improve the efficiency of the plan check 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.
D – 110
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 California Building Codes, state regulations, and local
ordinances.
• Coordinate building information and activity with other departments and agencies.
• Provide building code information to customers.
D – 111
COMMUNITY DEVELOPMENT DEPARTMENT
Building & Inspection Services
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Chief Building Official 0.75 0.75 0.75 0.75 0.75
Administrative Analyst 0.15 0.15 0.15 0.30 0.30
Administrative Assistant 0.05 0.05 0.05 0.05 0.05
Senior Planner 0.10 0.20 0.20 0.20 0.20
Associate Planner 0.15 0.30 0.30 0.30 0.30
Assistant Planner - 0.10 0.10 0.10 0.10
Senior Building Inspector - - 0.75 0.75 0.75
Building Inspector 4.00 4.00 3.00 3.00 3.00
Permit Technician 1.90 1.90 1.90 1.90 1.90
Planning Technician - 0.10 0.10 0.10 0.10
Total Building and Inspection FTEs 7.10 7.55 7.30 7.45 7.45
BUILDING & INSPECTION SERVICES PROGRAM STAFFING
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of inspections delivered within
cycle times:
100%100%100%100%100%
b.Percentage of plan checks completed within
cycle times:
95%98%95%95%100%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.14,294 14,849 15,938 15,800 16,000
2.797 676 727 750 700
3.1,559 1,648 1,560 1,900 1,600
4.1,465 1,488 1,517 1,700 1,500Number 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 – 112
D – 113
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.
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
The FY 2020/21 budget includes the part-time Code Compliance Officer position which will be
continued for one more year in FY 2020/21 with one-time funding.
D – 114
COMMUNITY DEVELOPMENT DEPARTMENT
Code Compliance Program
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Service Charges - - 220 300 - -
Fines & Forfeitures 5,225 4,800 60,158 4,000 15,200 5,000
Other Revenues - - - - - -
TOTAL REVENUES 5,225$ 4,800$ 60,378$ 4,300$ 15,200$ 5,000$
EXPENDITURES
Salaries and Benefits 189,419$ 195,322$ 236,011$ 263,839$ 240,590$ 288,132$
Operating Expenditures 4,507 1,380 13,844 7,225 2,075 7,050
Grants - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 12,646 13,018 5,469 4,378 4,310 4,497
TOTAL EXPENDITURES 206,572$ 209,720$ 255,324$ 275,442$ 246,975$ 299,679$
SUMMARY OF REVENUES AND EXPENDITURES
FY 2020/21 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.
• Administer fair and unbiased enforcement to correct violations of
municipal, property maintenance, and building codes.
• Proactively and reactively enforce the most called upon violations (i.e.
gas leaf blowers and working without a permit).
• Help maintain the Town’s standards for health, safety, and quality of
life.
D – 115
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 and investigations of structures and residences regarding public
health-related issues.
• Prioritizes health and safety violations and public nuisances over other code violations.
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Chief Building Official 0.15 0.15 0.15 0.15 0.15
Executive Assistant 0.05 0.05 - - -
Senior Building Inspector - - 0.15 0.15 0.15
Code Compliance Officer 1.00 1.00 1.00 1.00 1.00
Total Code Compliance FTEs 1.20 1.20 1.30 1.30 1.30
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Community Service Officer Temp/Hrly 390 390 780 780 1,040
Total Annual Hours 390 390 780 780 1,040
CODE COMPLIANCE PROGRAM STAFFING
D – 116
COMMUNITY DEVELOPMENT DEPARTMENT
Code Compliance Program
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.Respond to complaining party within 48 hours:*99%99%99%99%99%
2.
a.Percentage of complaints abated within
cycle times:
90%90%95%95%95%
3.
a.Percentage of complaints resulting in court
hearings:
1%0%1%0%0%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.382 459 595 550 590
2.323 421 591 545 585
3.68 65 67 65 65
*Measure discontinued as of FY 2019/20
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 – 117
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 FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
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.
D – 118
COMMUNITY DEVELOPMENT DEPARTMENT
BMP Housing Program
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Service Charges 195,941 (182,247) 144,712 183,043 196,702 189,841
Fines & Forfeitures - - - - - -
Other Revenues - 373,080 - - - -
TOTAL REVENUES 195,941$ 190,833$ 144,712$ 183,043$ 196,702$ 189,841$
EXPENDITURES
Salaries and Benefits 72,179$ 57,774$ 70,146$ 82,159$ 76,202$ 88,919$
Operating Expenditures 121,016 130,740 74,144 100,650 121,050 100,650
Grants - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 2,796 2,319 423 234 216 272
TOTAL EXPENDITURES 195,991$ 190,833$ 144,713$ 183,043$ 197,468$ 189,841$
SUMMARY OF REVENUES AND EXPENDITURES
FY 2020/21 KEY PROJECTS
KEY PROGRAM SERVICES
• Administer the BMP 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 – 119
COMMUNITY DEVELOPMENT DEPARTMENT
BMP Housing Program
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Community Development Dir.0.05 0.05 0.05 0.05 0.05
Planning Manager - 0.10 0.10 0.10 0.10
Administrative Analyst 0.20 0.20 0.20 0.25 0.25
Executive Assistant 0.15 - - - -
Administrative Assistant - 0.10 - - -
Associate Planner 0.20 - - - -
Total BMP Housing FTEs 0.60 0.45 0.35 0.40 0.40
BMP HOUSING PROGRAM STAFFING
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.50 54 55 55 55
2.119 119 119 119 122Number 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 – 120
D – 121
Community Development Department
PASS-THROUGH ACCOUNTS
PROGRAM 3999
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 review services, arborist review 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 – 122
COMMUNITY DEVELOPMENT DEPARTMENT
Pass-Through Accounts
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Service Charges 587,435 684,249 554,682 532,500 598,400 532,500
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES 587,435$ 684,249$ 554,682$ 532,500$ 598,400$ 532,500$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 587,435 684,249 554,682 532,500 598,400 532,500
Grants - - - - - -
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
TOTAL EXPENDITURES 587,435$ 684,249$ 554,682$ 532,500$ 598,400$ 532,500$
SUMMARY OF REVENUES AND EXPENDITURES
Police Department
This Page Intentionally Left Blank
D – 123
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 is committed to ensuring
public safety with integrity, compassion, and professionalism, by providing exceptional law
enforcement services, building community partnerships, and engaging the community in
problem solving.
The core services provided by the Police Department include: responding to emergency and
non-emergency calls for service; suppression of criminal activity; investigating and prosecuting
of crimes; recruiting, hiring and training high quality personnel; conducting community
outreach to prevent crime; facilitating traffic and pedestrian safety; and maintaining records,
property and evidence.
The Police Department continues to build upon a strong police-community partnership
through innovative Department and community programs including: School Resource Officer
funding partnership; Digital Media Safety/Cyberbullying education; Safe Routes to School;
Youth Commission; homeless and senior outreach; behavioral health response; and traffic
management. Volunteer programs such as Reserve Police Officers, Community Emergency
Response Team (CERT), Volunteers in Policing (VIP), Disaster Aid Response Team (DART), the
Police Chaplaincy program, intern opportunities, Parking Citation Hearing Officers, Victim
Services Unit (VSU), and the Police Explorer program extend these partnerships to the
community. For the past 14 years, volunteers have personally welcomed new homeowners to
the Town through the Department’s New Resident Outreach Program, documented and
removed graffiti, and conducted numerous vacation checks.
All Police Department personnel are committed to an organizational strategy of collaboration
and problem-solving with the goal of creating a safe environment for all community members
while providing an extraordinary level of customer service.
D – 124
POLICE DEPARTMENT
BUDGET OVERVIEW
This budget overview discusses the Police Department’s focus for FY 2020/21 as well as its
revenue and expenditure outlook. The FY 2020/21 budget includes increases in salary and benefit
costs attributable to negotiated salary raises, and higher benefit and CalPERS pension rates.
The Police Department is committed to ongoing structural evaluation and budgetary efficiency
by regularly assessing service levels and the complex demands of ensuring public safety. The
proposed budget includes 60 full time equivalent (FTE) employees compromised of 39 Sworn
Officers and 21 Civilian Personnel.
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
neighborhood interaction, 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.
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 cost
aggregated to 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, the
current contract runs through June 30, 2021.
Department Reclassification
To best meet the needs of the Department in FY 2020/21 and align responsibilities with minimal
budgetary impact, two non-sworn reclassifications were completed.
The 1.0 FTE Administrative Technician assigned to Personnel and Community Services program
is now reclassified as a 1.0 FTE Administrative Analyst. This flexibly staffed series allows
reclassification to reflect the responsibilities of the position which require a journey-level
analysis, independent judgment, and formulation of important recommendations.
The 1.0 FTE Parking Control Officer assigned to the Parking Management Program is now
reclassified to a 1.0 Senior Parking Control Officer. The Parking Control Officer position has
remained flexible to fulfill the needs of the Parking Management Program while maintaining its
core function.
D – 125
POLICE DEPARTMENT
Staff Resource Modifications
Temporary staff funding is proposed in the FY 2020/21 budget for technology and
communication support and for overseeing the Parking Management Program. These
temporary hours are from one-time funding.
• Additional temporary staffing hours (340 hrs.) are proposed for a Project Manager to
assist with critical operational technology needs and the regional radio project
including interoperability upgrades. This is a 50% reduction from the hours requested
for this position in FY 2019/20.
• Additional temporary staffing hours (1000 hrs.) are proposed to add the job
classification of Parking Program Manager. This position will assist in the review and
implementation of the recommendations derived from the Comprehensive Parking
Study.
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.
D – 126
POLICE DEPARTMENT
ACCOMPLISHMENTS
Core Goals Accomplishments
Community
Character
Preserve and
enhance the
appearance
character and
environment
quality of the
community
• As the liaison to the Los Gatos Youth Commission, the Police
Department continued to facilitate their progressive work on the
Green Friendly Business program, Inter-generational events with
seniors in our community, and organize and participate in
community events with developmentally challenged youth.
• The Police Department reviewed and assessed the Department
Website and made significant changes and improvements to overall
organization, content updates, emergency preparedness, and
employment opportunities.
Good
Governance
Ensure
responsive,
accountable,
and
collaborative
government
• The Police Department maintained an ongoing commitment to
recruit and hire qualified candidates for staff vacancies. This fiscal
year, four new Officers and four professional staff members were
hired to fill existing vacancies.
• The Department’s Policy Manual working group continued its review
of the Policy Manual. During the review, legal updates were
implemented to reflect the most current statutes and operating
procedures were revised as necessary.
• Personnel and Community Services staff researched, complied, and
completed the comprehensive Police Department Training Plan.
Assembly of the final draft is currently in process and the expected
completion is June 2020.
• The Department Leadership team (Chief, Captains, and Sergeants)
attended a two-day Strategic Retreat. The focus of the retreat was
team-building and an opportunity to reassess and refine the strategic
direction and vision of the organization.
• During FY 19/20 the Police Department received California
Commission on Peace Officer Standards and Training (POST) grant
funding for training focused on Use of Force, Defensive Tactics, and
De-Escalation. These funds were used in the development and
deployment of a successful 8-hour course that was provided to all
sworn staff as well as the purchase of necessary training equipment.
D – 127
POLICE DEPARTMENT
ACCOMPLISHMENTS
Core Goals Accomplishments
Good
Governance
Ensure
responsive,
accountable,
and
collaborative
government
• During FY 2019/20 the Police Department utilized technology as a
force-multiplier by allocating mobile cellular devices for all officers to
enhance service delivery and streamline field operations support.
• In conjunction with the Human Resources Department, Police
Department staff completed Cal-OSHA mandated “Bloodborne
Pathogens Awareness and Exposures,” and “Air Purifying Respirator”
fit testing and certification.
• The Major Traffic Collision Investigation Team completed individual
training in conjunction with the Santa Clara County Crime Laboratory
to enhance their existing skill sets; the team deployed the Topcon
Robotics Total Station in the field to assist with the reconstruction of
major traffic collisions.
• The Department purchased, installed and implemented a
replacement Automated License Plate Reader (ALPR), to assist
parking enforcement efforts.
• During FY 2019/20 Los Gatos-Monte Sereno Police Department’s
award-winning volunteer program, Victim Services Unit, reorganized
and recruited new volunteers to better address the needs of
community members and their families who are faced with the
trauma and distress of violent crime or other catastrophic events.
Civic Enrichment
Foster
opportunities for
citizen
involvement,
and cultural,
recreational and
individual
enrichment
• Phase one of the Silicon Valley Regional Communications System has
been fully integrated with other appropriate Town Departments. This
system provides fully interoperable communications capabilities
throughout the region, a critical asset in the event of a major incident
or disaster.
• In FY 2019/20, the Department hosted 11 Neighborhood Watch
meetings and collaborated with the Los Gatos Chamber of
Commerce to host the annual merchant meeting.
• The Department enhanced its social media communications to
advance community policing objectives.
D – 128
POLICE DEPARTMENT
ACCOMPLISHMENTS
Core Goals Accomplishments
Public Safety
Ensure public
safety through
proactive
community
policing,
affective
emergency
response, and
community-wide
emergency
preparedness
• In FY 2019/20 the Police Department continued to collaborate with
the Safe Routes to School Partnership, Traffic Safe Communities
Network, and Parks and Public Works Department to promote
pedestrian and bicycle safety programs. In addition, the Police
Department participated in Bicycle Rodeos where Officers
collaborated with Safe Routes Committee liaisons to provide
educational training to students on bicycle and pedestrian safety.
• During FY 2019/20, Department staff in collaboration with a
communications sub-committee for the Community Emergency
Response Team (CERT) identified, purchased, programmed, and
installed equipment in the Neighborhood Incident Command Posts
(NICPs). Training was provided by CERT members and written
guidelines were provided to the leads.
• The annual Los Gatos-Monte Sereno CERT program drill was held in
Fall 2019 and brought together almost 100 CERT trained members
from the community to train and carry out a scenario involving a
wildfire that threatened the community. The drill allowed for
volunteers to practice and utilize the new communications
equipment and identify additional training and infrastructure needs.
• The Department implemented a collateral duty Bloodhound Trailing
Team Program. Bloodhound trailing is a specialized skill set that will
assist Patrol Officers in situations where it is necessary to find a
missing person, suspect, or item of evidence.
• Officers with specialized training in active intruder and safety
planning worked with several faith-based organizations in Town to
develop updated site safety plans and host safety training for staff.
• In FY 19/20 a Detective was assigned to the Rapid Enforcement Allied
Computer Team (REACT). This High-Tech crime task force is focused
on complex investigations of organized criminals involved in cyber-
crime, identity theft, trademark violations, and money/crypto
currency laundering.
• In collaboration with the Santa Clara County Auto Burglary Task
Force, Detectives participated in several County-wide operations to
suppress and investigate auto burglaries.
D – 129
POLICE DEPARTMENT
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses and Permits 87,427$ 78,027$ 91,799$ 87,920$ 96,895$ 87,735$
Intergovernmental Revenues 817,331 886,555 826,643 835,391 786,845 854,335
Service Charge 1,049,384 1,099,057 1,137,911 1,182,264 1,179,669 1,233,898
Fines & Forfeitures 862,076 656,216 433,447 468,950 346,729 426,950
Other Revenues 64,356 49,455 66,646 86,887 59,400 78,515
TOTAL REVENUES 2,880,574$ 2,769,310$ 2,556,446$ 2,661,412$ 2,469,538$ 2,681,433$
EXPENDITURES
Salaries and Benefits 10,518,132$ 11,445,906$ 12,587,676$ 14,377,080$ 13,363,811$ 14,878,295$
Operating Expenditures 1,008,652 1,025,236 1,157,191 1,445,810 1,305,441 1,512,867
Grants 5,897 11,587 25,025 20,000 20,000 20,000
Fixed Assets - - 3,545 - - -
Internal Service Charges 1,718,609 1,940,825 1,175,517 1,097,894 1,053,983 1,176,663
TOTAL EXPENDITURES 13,251,290$ 14,423,554$ 14,948,954$ 16,940,784$ 15,743,235$ 17,587,825$
Transfers Out
Transfers Out to Equipment Replacement -$ -$ -$ -$ -$ -$
Total Transfers Out -$ -$ -$ -$ -$ -$
TOTALEXPENDITUES & TRANSFERS OUT 13,251,290$ 14,423,554$ 14,948,954$ 16,940,784$ 15,743,235$ 17,587,825$
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
PROGRAM
Administration 861,561$ 1,026,502$ 1,223,444$ 1,299,427$ 1,240,091$ 1,378,275$
Records & Communications 1,949,183 2,072,274 2,221,494 2,363,660 2,163,767 2,483,105
Patrol 5,827,002 6,575,258 7,112,700 7,512,107 7,314,696 7,925,958
Traffic 932,169 992,689 1,011,364 1,084,957 833,509 1,066,473
Investigations 2,342,031 2,282,295 2,219,461 2,844,068 2,661,856 2,877,009
Personnel & Community Services 596,274 773,826 562,528 1,037,275 856,443 1,023,462
Parking 700,325 683,817 565,896 671,384 620,474 754,733
Operating Grants 14,567 11,451 27,547 95,791 46,027 54,695
Pass -Through Accounts 28,178 5,442 4,520 32,115 6,372 24,115
TOTAL EXPENDITURES 13,251,290$ 14,423,554$ 14,948,954$ 16,940,784$ 15,743,235$ 17,587,825$
DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES
D – 130
POLICE DEPARTMENT
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
General Fund Funded Funded Funded Funded Proposed
Chief of Police 1.00 1.00 1.00 1.00 1.00
Police Captain 1.00 1.00 2.00 2.00 2.00
Police Lieutenant 2.00 2.00 - - -
Police Sergeant 6.00 6.00 7.00 7.00 7.00
Police Corporal 4.00 4.00 4.00 4.00 4.00
Police Officer 25.00 25.00 25.00 25.00 25.00
Community Services Officer 2.00 1.00 1.00 1.00 1.00
Police Records Manager 1.00 1.00 1.00 - -
Police Records & Com Manager - - - 1.00 1.00
Senior Administrative Analyst - - 1.00 1.00 1.00
Administrative Analyst 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 1.00 1.00
Communications Dispatcher 7.00 7.00 7.00 7.00 7.00
Senior Parking Control Officer - - - - 1.00
Parking Control Officer 2.00 2.00 2.00 2.00 1.00
Police Records Specialist 4.00 4.00 4.00 4.00 4.00
Community Outreach Coordinator - 1.00 1.00 1.00 1.00
Human Resources Specialist - 1.00 1.00 - -
Administrative Technician - - - 1.00 -
IT Systems Administrator - - - 1.00 1.00
Total General Fund FTEs 58.00 59.00 59.00 60.00 60.00
Temporary Staff Hours
Community Service Officer Intern 1,725 1,040 1,720 1,720 2,080
Community Service Officer 390 390 - - -
Police Officer 300 300 300 300 300
IT Technician - 685 685 - -
Parking Control Manager - - - - 1,000
Parking Control Officer 357 357 - - 300
Police Records Specialist 320 1,360 - - 330
Communications Dispatcher 330 330 330 330 -
CSO-Investigation Evidence - 1,040 - - -
Project Manager - - - 685 340
Total Annual Hours 3,422 5,502 3,035 3,035 4,350
DEPARTMENT STAFFING
D – 131
Police Department
POLICE ADMINISTRATION
PROGRAM 4101
PROGRAM PURPOSE
The Police Administration Program is responsible for the organization and management of the
Department. This Program oversees all the Department’s programs and is responsible for
developing and providing oversight for the Department’s total budget, hiring and promotion
of sworn and professional staff, career development, succession planning, and review and
implementation of policies and procedures. 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. Police Administration staff emphasize transparency, police legitimacy, responsive crime
suppression and prevention programs, directed traffic enforcement to promote safe and
orderly traffic flow on Town streets, and emergency preparedness. 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.
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
D – 132
POLICE DEPARTMENT
Police Administration
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits 698$ 2,489$ 3,575$ 3,735$ 740$ 3,735$
Intergovernmental Revenue - - - - - -
Service Charges - - - - - -
Grants - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues 6,080 11,721 26,472 20,000 20,000 20,000
TOTAL REVENUES 6,778$ 14,210$ 30,047$ 23,735$ 20,740$ 23,735$
EXPENDITURES
Salaries and Benefits 684,660$ 847,743$ 1,073,869$ 1,058,719$ 1,000,700$ 1,126,644$
Operating Expenditures 20,611 13,447 20,564 27,214 27,058 28,214
Grants 5,897 11,587 25,025 20,000 20,000 20,000
Fixed Assets - - - - - -
Internal Service Charges 150,393 153,725 103,986 193,494 192,333 203,417
TOTAL EXPENDITURES 861,561$ 1,026,502$ 1,223,444$ 1,299,427$ 1,240,091$ 1,378,275$
TRANSFERS OUT
Transfer to Equipment Replacement -$ -$ -$ -$ -$ -$
TOTAL TRANSFERS OUT - - - - - -
TOTAL EXPENDITURES & TRANSFERS OUT 861,561 1,026,502 1,223,444 1,299,427 1,240,091 1,378,275$
SUMMARY OF REVENUES AND EXPENDITURES
D – 133
POLICE DEPARTMENT
Police Administration
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good Governance
Ensure
responsive,
accountable, and
collaborative
governance
Organizational Structure and Development
The Department will continue to analyze the primary job responsibilities of
various positions / assignments to identify areas of operational
effectiveness. In addition, career development and succession planning will
be conducted through skill development and essential training
opportunities.
Budget Oversight and Equipment Grant Opportunities
During FY 2020/21, the Police Administration will continue to track and
monitor program budgets including overtime, salaries and benefits, and
operational capabilities to ensure the Department remains fiscally
responsible. The Department continues to seek grant opportunities in an
effort to maximize potential revenue sources and procure operational
equipment replacement needs.
Recruitment and Retention
The Police Administration will continue to work collaboratively with the
Human Resources Department to identify innovative staff recruitment and
retention strategies. In FY 2020/21, staff will provide ongoing recruitment
testing processes, and participate in job fairs, recruitment opportunities at
colleges and police academies.
Legislative Updates and Policy Revisions
The Police Administration will continue to monitor federal, state, and local
legislative updates and identify the operational impacts to the Department.
Legislative revisions and new legislation are the catalyst for amendments to
Department policy, operational procedures, and mandated reporting
requirements. In FY 2020/21, staff will continue to monitor and forecast the
impacts of legislative mandates, while revising and developing model policies
and Department procedures.
Staff Health and Wellness
The Department will continue to partner with the Compassion Institute to
provide trainings on various platforms to assist in the mental and physical
wellness of staff.
D – 134
POLICE DEPARTMENT
Police Administration
FY 2020/21 KEY PROJECTS
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.
• Manage and oversee Police service contractual obligations with the City of Monte
Sereno.
• Develops succession planning goals and opportunities for staff.
• Oversees Police Department’s media and mass notification communications.
• Provides project management for special projects.
• Manages division programs and personnel.
Core Goals Key Projects
Civic Enrichment
Foster
opportunities for
citizen
involvement, and
cultural,
recreational, and
individual
enrichment
Youth Commission
The Los Gatos Youth Commission’s goal of sharing a voice of the youth in the
Los Gatos community continues in FY 2020/21. As the liaison to the Los Gatos
Youth Commission, the Police Department will continue to guide the
Commission in their development and promotion of initiated projects in FY
2020/21. The potential projects provide information and community
outreach to various residents, youth, and businesses of the Town.
D – 135
POLICE DEPARTMENT
Police Administration
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
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 1.00 1.00
Administrative Analyst 1.00 1.00 - - -
Senior Administrative Analyst - - 1.00 1.00 1.00
Executive Assistant to Chief 1.00 1.00 1.00 1.00 1.00
Total Administration FTEs 4.00 4.00 4.00 4.00 4.00
POLICE ADMINISTRATION PROGRAM STAFFING
D – 136
D – 137
Police Department
RECORDS AND COMMUNICATIONS
PROGRAM 4201
PROGRAM PURPOSE
The Records and Communications Program is staffed by civilian personnel and is comprised of
both Police Records and the Communication Center (Dispatch).
The Los Gatos-Monte Sereno Police Department Records Division’s professional staff perform
numerous support functions in addition to serving as the repository for all Police records. This
Division is responsible for accurate data entry and maintenance of reported Police activity in
all systems including in-house records management systems as well as county, state, and
federal database systems. Records Division staff process criminal and traffic warrants, handle
custodial and non-custodial bookings, and prepare criminal case filings to be forwarded to the
District Attorney’s Office for prosecution within mandated time restrictions. As the primary
point of contact for the public at Police Headquarters, Records personnel fulfill report requests,
provide LiveScan fingerprinting services, and handle a wide number of other administrative
duties in support of the Police Department.
The Records Division is supervised by a Records and Communications Manager who serves as
the Custodian of Records and is responsible for the collection, classification, monitoring and
reporting of all Departmental criminal and statistical data. Additionally, the Records and
Communications Manager receives, conducts research, and responds to requests filed under
the California Public Records Act. This position manages special projects and database
administration, in addition to completing internal and external audits.
The Communication Center is staffed twenty-four hours a day, seven days a week. The
Dispatchers handle the prompt and effective coordination of emergency and non-emergency
response by receiving emergency and non-emergency calls, assigning resources, monitoring
call and personnel status, and providing support to law enforcement personnel. The
D – 138
POLICE DEPARTMENT
Records and Communications
Communication Center also supports the sworn personnel by retrieving information for
Officers, fulfilling requests for dispatch recordings, completing data entry, and releasing
property when the Records Division is not open.
BUDGET OVERVIEW
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
Additional temporary staffing hours (340 hrs.) are proposed for a Project Manager to assist with
critical operational technology needs and the regional radio project including interoperability
upgrades. These temporary hours are from one-time funding.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovenrmental Revenue - - - - - -
Service Charges 8,737 7,001 8,256 7,100 6,000 6,000
Fines & Forfeitures - - - - - -
Other Revenues 143 2,529 3,653 3,372 - -
TOTAL REVENUES 8,880$ 9,530$ 11,909$ 10,472$ 6,000$ 6,000$
EXPENDITURES
Salaries and Benefits 1,570,839$ 1,714,157$ 1,799,295$ 1,984,296$ 1,778,243$ 2,087,585$
Operating Expenditures 195,513 224,859 238,264 283,883 291,201 286,957
Fixed Assets - - 545 - - -
Internal Service Charges 182,831 133,258 183,390 95,481 94,323 108,563
TOTAL EXPENDITURES 1,949,183$ 2,072,274$ 2,221,494$ 2,363,660$ 2,163,767$ 2,483,105$
SUMMARY OF REVENUES AND EXPENDITURES
D – 139
POLICE DEPARTMENT
Records and Communications
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good Governance
Ensure responsive,
accountable, and
collaborative
government
Building Trust through Communication and Transparency
At the end of FY 2019/20, the Police Department will launch innovative
technology that increases communications with the community. Once a
call is routed through the Communications Center, the caller will receive
text notifications with their incident number, additional information
(customized by the nature of the call), and the disposition. Upon
assignment of an investigator, victims will receive additional notifications
from the Detective Bureau to obtain feedback on staff performance.
Public Safety
Ensure public safety
through proactive
community policing,
effective emergency
response, and
community-wide
emergency
preparedness
S.N.A.P. Program
In FY 2020/21, Communications Dispatchers will be implementing the
Special Needs Alert Program, a voluntary program in which residents can
sign up to alert first responders of potential communication difficulties,
behavioral health concerns, or other vulnerabilities at a specific address.
CAD/RMS
During FY 2020/21, the Police Department will finalize the new Computer
Aided Dispatch and Records Management System (CAD/RMS). The solution
positions the Police Department to be prepared to comply with upcoming
mandates (NIBRS and AB953) to collect and report mandated infomration.
Survivability Study
During FY2020/21, staff will complete an internal survivability study
recommended by the Association of Public Safety Communications Officials
(APCO) and the National Emergency Number Association (NENA) to
objectively assess our Communications Center’s capabilities against models
representing the best level of preparedness, survivability, and sustainability
amidst a wide range of natural and manmade events.
D – 140
POLICE DEPARTMENT
Records and Communications
KEY PROGRAM SERVICES
Records
• Responds to customer inquiries.
• Processes Police reports and citations.
• Processes criminal and traffic warrants.
• Provides fingerprint services to residents.
• Completes required statistical reporting to state and federal government.
• Processes subpoena and Public Records Requests.
• 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.
D – 141
POLICE DEPARTMENT
Records and Communications
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Police Lieutenant 0.30 0.30 - - -
Police Sergeant - - 0.30 - -
Police Records Manager 1.00 1.00 1.00 - -
Police Records & Com Manager - - - 1.00 1.00
Communications Dispatcher Lead 1.00 1.00 1.00 1.00 1.00
Communications Dispatcher 7.00 7.00 7.00 7.00 7.00
Police Records Specialist 3.00 3.00 3.00 3.00 3.00
Total Records & Comm. FTEs 12.30 12.30 12.30 12.00 12.00
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
IT Technician 685 685 685 - -
Project Manager - - - 685 340
Police Records Specialist 320 1,360 - - 330
Communications Dispatcher 330 330 330 330 -
Total Annual Hours 1,335 2,375 1,015 1,015 670
RECORDS & COMMUNICATION PROGRAM STAFFING
D – 142
POLICE DEPARTMENT
Records and Communications
Performance Objectives and Measures
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Statistics completed on or before the 15th day of the month or
nearest working date:
100%100%100%100%100%100%
Activity and Workload Highlights
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.Total number of CAD events created:**55,994 56,501 55,283 55,829 47,177 55,902
2.Total landline and wireless calls received by dispatch (does not
include 911 calls):
48,404 46,630 44,436 41,130 39,850 45,150
3.Number of 911 calls received:10,181 10,489 10,301 10,224 10,195 10,299
4.Number of stored and/or impounded vehicles processed:148 194 202 220 203 191
5.Number of police reports processed:4,177 4,140 4,231 4,303 3,604 4,213
6.Number of public contacts at Records:***4,042 4,126 3,000 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
7.Number of citations processed:6,338 4,856 4,419 3,765 2,928 4,845
** A computer-aided dispatch (CAD) event documents all Police-related activity by sworn and civilian personnel.
*** Measure discontinued effective FY 19/20
Provide efficient delivery of department statistics by the 15th of every
month.
D – 143
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 community values for a transparent law enforcement agency. The PCS Program
supports the personnel growth and recruitment of the Police Department through hiring of
new personnel, continued education, in-service training, and professional growth of personnel
as required by the California Peace Officer Standards and Training. This Program identifies
succession planning; promotes organizational development; maintains personnel adherence
to professional standards; and administers crime prevention activities and community event
programs. Staff in the PCS program also manages and provides oversight to the numerous
volunteer programs that support various functions of the Department. This program facilitates
the administrative management of the tow truck permit program, residential parking,
commercial alarm permits, and Alcohol Beverage Control licensing permits.
Working in conjunction with the Town Manager’s Office and the Santa Clara County Fire
Department, the Police Department participates in emergency management and
preparedness. Staff in this program work in collaboration with state and regional emergency
management entities, such as Santa Clara County Office of Emergency Management, in
preparation and planning for the possibility of earthquakes, fires, floods, and other natural and
man-made disasters.
D – 144
POLICE DEPARTMENT
Personnel and Community Services
BUDGET OVERVIEW
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
The 1.0 FTE Administrative Technician assigned to Personnel and Community Services program
is now reclassified as a 1.0 FTE Administrative Analyst. This flexibly staffed series allows
reclassification to reflect the responsibilities of the position which require a journey-level
analysis, independent judgment, and formulation of important recommendations.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue 376,720 429,342 376,852 434,600 378,224 389,640
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues 1,000 1,500 - 1,000 1,000 1,000
TOTAL REVENUES 377,720$ 430,842$ 376,852$ 435,600$ 379,224$ 390,640$
EXPENDITURES
Salaries and Benefits 337,873$ 501,437$ 313,133$ 898,531$ 720,147$ 878,303$
Operating Expenditures 14,865 17,288 184,594 27,464 26,758 30,264
Fixed Assets - - - - - -
Internal Service Charges 243,536 255,101 64,801 111,280 109,538 114,895
TOTAL EXPENDITURES 596,274$ 773,826$ 562,528$ 1,037,275$ 856,443$ 1,023,462$
SUMMARY OF REVENUES AND EXPENDITURES
D – 145
POLICE DEPARTMENT
Personnel and Community Services
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Civic Enrichment
Foster
opportunities for
citizen
involvement, and
cultural,
recreational, and
individual
enrichment
Community Engagement
The Social Media team continues to advance and develop new ideas to
provide a professional online presence on a variety of popular digital
platforms in an additional effort to engage and educate the community
on local public safety. Social media and the Department website can be
utilized to keep the community informed, build positive relationships, and
establish another opportunity for policy transparency. The website and
social media platforms can also be used to conduct rapid outreach to a
large portion of the community with a consistent message that can be
accessed remotely on multiple devices.
Neighborhood Watch Programs
During FY 2020/21, the Police Department will continue to expand the
Neighborhood Watch program, targeting crime prevention, awareness,
and education. This community outreach program provides citizens with
current crime trends, enhances communications, promotes crime
preventative measures, and builds community resilience and
neighborhood relationships. The Neighborhood Watch Program focuses
on crime prevention strategies and collaboration between neighbors and
the Police Department.
Volunteer Programs
Personnel and Community Services screens and provides direction to
several volunteer personnel that fulfill roles in Volunteer in Policing (VIP),
the Victim Services Unit (VSU), and college interns. There will be
continued focus in FY 2020/21 on enhancing these volunteer programs.
Citizens Police Academy
During FY 2020/21 the Los Gatos-Monte Sereno Police Department
expects to offer its first Citizens Police Academy to the residents of the
Town of Los Gatos and the City of Monte Sereno. A major goal of the
Citizens Police Academy is to increase understanding between our
citizens and the Police Department, and to enhance the Department’s
strong relationships with the community.
D – 146
POLICE DEPARTMENT
Personnel and Community Services
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Public Safety
Ensure public
safety through
proactive
community
policing, effective
emergency
response, and
community-wide
emergency
preparedness
Community Emergency Response Team (CERT)
Community Emergency Response Team (CERT) leads have identified areas
of priorities to strengthen the community resilience and preparation of
the NICPs, recruiting additional CERT members, and skills to train on.
Additionally, a continuing goal is education and recruitment of additional
CERT members along with partnership between CERT and the
Neighborhood Watch participants in the event of an emergency.
Emergency Operations Plan
The Police Department continues to coordinate and collaborate with the
Town Manager’s Office and Santa Clara County Fire Department to define
roles and responsibilities within emergency management, volunteer
coordination, and planning. In FY 2020/21 an emphasis will be placed on
emergency management and preparedness to ensure critical planning
and community training for wildland fire evacuation, earthquake
preparedness, flood evacuation, and other critical disaster planning. The
Department will continue to update, test, and maintain emergency
notification and communication systems.
D – 147
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.
• Collaborates 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)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Police Lieutenant 0.70 0.70 - - -
Police Sergeant - - 0.70 1.00 1.00
Community Services Officer 1.00 - - - -
Community Outreach Coordinator - 1.00 1.00 1.00 1.00
IT Systems Administrator - - - 1.00 1.00
Administrative Analyst - - - - 1.00
Human Resources Specialist - 1.00 1.00 - -
Administrative Technician - - - 1.00 -
Total Personnel & CS FTEs 1.70 2.70 2.70 4.00 4.00
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Police Officer 300 300 300 300 300
Total Annual Hours 300 300 300 300 300
PERSONNEL & COMMUNITY SERVICE PROGRAM STAFFING
D – 148
POLICE DEPARTMENT
Personnel and Community Services
Performance Objectives and Measures
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of Volunteers in Policing (VIP) reporting satisfaction with their
assignments:**
100%100%100%100%Measure
Discontinued
Measure
Discontinued
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%Measure
Discontinued
Measure
Discontinued
3.
a.Percentage of Town volunteers who find their participation in Town
volunteer activities to be a positive experience:*
100%100%100%Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
4.
a.Number of Town sponsored trainings offered for emergency prepardness
vounteers:
Data not
available
Data not
available
Data not
available
Data not
available
Data not
available
10
Activity and Workload Highlights
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.115 118 63 88 100 100
2.52 60 52 40 40 50
3.30 38 16 18 20 25
4.37,840 25,239 21,151 20,115 25,504 26,086
5.$851,400 $567,877 $475,897 $452,588 $573,840 $586,935
6.1,894 1,414 1,570 1,657 1,534 1,633
7.$39,774 $29,687 $35,325 $37,283 $34,515 $36,743
8.36 31 36 38 40 35
9.441 466 168 206 240 275
* Measure discontinued effective FY 18/19
**Measure discontinued effective FY 19/20
***New measure effective FY 20/21
Note: New CERT measures are under development.
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:
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.**
Preparing resident volunteers to assist in an emergency.***
D – 149
Police Department
PATROL
PROGRAM 4301
PROGRAM PURPOSE
The Patrol Program has the responsibility of providing responsive police services to the
community of Los Gatos twenty-four hours a day, seven days a week. The Patrol Program
deploys twenty-seven uniformed Police officers across four shifts in a continuous effort to keep
the Town safe. Officers provide both proactive and reactive service to residents, respond to
emergency and non-emergency calls, engage in directed and self-initiated enforcement
actions, and utilize problem solving techniques designed to increase community safety.
Within the Patrol function, Officers with specialized training are deployed as Field Training
Officers (FTO), Crisis Intervention/Mental Health Officers (CIT), Homeless Liaison Officers, K-9
Officer, and Bicycle Officers. Collateral specialized teams provide support to the Patrol
Program, including the Crisis Response Unit (CRU), Hostage Negotiation Team (HNT), Traffic
Collision Investigation/Crime Scene Team, Peer Support Team, Firearms/Range Team,
Defensive Tactics Team, and the Bicycle Team.
The Reserve Police Officer Program is a subdivision of the Patrol Program and consists of
voluntary part-time, sworn volunteers who are trained to assist in regular patrol activities.
Reserve officers serve as secondary officers in a patrol capacity or are assigned specific duty
functions during special events. Reserve officers are certified and maintain standards as
required by California Peace Officers Standards and Training. During FY 19/20, Reserve
Officers were utilized to supplement patrol staffing vacancies, perform directed patrol in crime
targeted areas, assist with traffic control, work special events, and assist with administrative
and criminal pre-booking procedures.
D – 150
POLICE DEPARTMENT
Patrol Program
BUDGET OVERVIEW
The Police Department and the Town of Los Gatos enjoy a collaborative 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 through June 30, 2025. This contractual 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 increases the FY 2020/21
City of Monte Sereno Police Services contract to $920,157.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits 28,461$ 24,352$ 26,180$ 39,500$ 41,000$ 39,500$
Intergovernmental Revenue 14,266 7,481 - - 5,140 5,000
Service Charges 813,401 858,046 885,033 909,633 910,659 953,547
Fines & Forfeitures 46,302 29,372 15,352 12,750 14,565 12,750
Other Revenues 3,321 - - - - -
TOTAL REVENUES 905,751$ 919,251$ 926,565$ 961,883$ 971,364$ 1,010,797$
Transfers In
Transfer from GFAR -$ -$ -$ -$ 54,750$ 78,298$
Total Transfers In - - - - 54,750 78,298
TOTAL REVENUES & TRANSFERS IN 905,751$ 919,251$ 926,565$ 961,883$ 1,026,114$ 1,089,095$
EXPENDITURES
Salaries and Benefits 5,042,450$ 5,513,485$ 6,430,360$ 6,754,569$ 6,595,127$ 7,044,444$
Operating Expenditures 130,631 201,330 185,987 309,009 295,904 391,707
Fixed Assets - - 3,000 - - -
Internal Service Charges 653,921 860,443 493,353 448,529 423,665 489,807
TOTAL EXPENDITURES 5,827,002$ 6,575,258$ 7,112,700$ 7,512,107$ 7,314,696$ 7,925,958$
SUMMARY OF REVENUES AND EXPENDITURES
D – 151
POLICE DEPARTMENT
Patrol Program
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good Governance
Ensure
responsive,
accountable, and
collaborative
government
Report Writing and CAD Systems Integration
The Patrol Program will continue to work with other Police programs to
evaluate the implementation of program functions into the Computer
Aided Dispatch and Records Management System (CAD/RMS). They will
gauge methods to increase report writing efficiency, adhere to operational
procedures, policies, and maintain integration with other databases and
systems.
County Behavioral Health Services
Officers will continue to collaborate with Santa Clara County Behavioral
Health Services in utilizing the Mobile Crisis Response Team and other
programs to assist individuals in a mental health crisis, provide additional
resources, and follow up as needed.
Public Safety
Ensure public
safety through
proactive
community
policing, effective
emergency
response, and
community-wide
emergency
preparedness
Patrol Staffing and Beat Configurations
The Patrol Division will continue to identify best practices for patrol
deployment staffing models in consideration of the recent annexation of
additional territory and major Town development projects. In addition,
staffing levels of each patrol team will continue to be evaluated based on
call volume, effective service delivery methods, and anticipated staffing
vacancies.
Community Safety Training
The Police Department will continue to work collaboratively with various
community groups (public and private) to provide guidance and education
related to emergency action plans for local schools, businesses, and faith-
based organizations in the event of a violent intruder or mass casualty
event.
Community
Character
Preserve and
enhance the
appearance,
character, and
environment
quality of the
community
Homeless Outreach & Service Programs
The Homeless Encampment Resource Officer (HERO) is a collateral
assignment, with specific focus on homeless outreach, accountability, and
services. Officers in this assignment will continue to work with homeless
individuals and facilitate access to regional service programs, coordinate
necessary encampment cleanups through inter-agency coordination, and
promote overall health and safety.
D – 152
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.
• Builds relationships within the community to enhance public safety and increase
community policing.
• Oversees the training and deployment of collateral and specialty teams such as, Crisis
Response Unit (CRU), Hostage Negotiations Team, Bicycle Team, Field Training Officer
Program, Major Incident/Traffic Reconstruction Team, K9-Team, Homeless Liaison
Team, Firearms Team, and Defensive Tactics Team.
• Oversees the deployment of volunteer teams, such as Reserve Police Officers and the
Police Explorer Post.
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Police Captain - - 0.50 0.50 0.50
Police Lieutenant 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 17.00 17.00 17.00 17.00
Total Patrol Program FTEs 25.50 25.50 25.50 25.50 25.50
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Community Service Officer Intern 1,040 1,040 1,720 1,720 2,080
Community Service Officer 390 390 - - -
Total Annual Hours 1,430 1,430 1,720 1,720 2,080
PATROL PROGRAM STAFFING
D – 153
POLICE DEPARTMENT
Patrol Program
Performance Objectives and Measures
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Average response time - Priority I calls:4:27 4:08 4:29 3:35 3:54 5:00
b.Average response time - Priority II calls:6:49 5:34 6:21 6:41 6:40 10:00
c.Average response time - Priority III calls:9:19 6:34 9:55 11:39 10:38 15:00
Activity and Workload Highlights
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.314 380 289 253 293 278
2.13,859 13,065 14,691 14,176 13,961 13948
3.14,782 15,335 14,840 14,747 14,897 14926
4.Number of Priority IV incidents (other):*15,485 17,392 15,245 15,474 15,768 15899
5.Total number of Incidents:*44,440 46,211 45,065 44,650 44,961 45092
6.784 571 769 606 723 683
7.$40,485 $29,486 $39,736 $30,906 $36,569 $35,153
8.947 765 792 835 995 915
9.$29,085 $26,775 $24,323 $38,610 $48,930 $33,545
10.4,576 4,576 4,537 4,562 4,563 4576
11.953 1,040 1,100 1,140 1,063 1058
12.Total number of reports written by Community Service Officer intern:**131 138 175 172 20 154
*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 – 154
D – 155
Police Department
TRAFFIC
PROGRAM 4302
PROGRAM PURPOSE
The Traffic Program focuses on the education, encouragement, and enforcement of the
California Vehicle Code to enhance the safety of roadways for all motorists, bicyclists, and
pedestrians. The Program collaborates with Parks and Public Works and utilizes national and
regional traffic safety programs to manage and coordinate community education activities
designed to address traffic complaints; increase motorist, bicyclist and pedestrian safety; and
reduce property damage, injury and fatal traffic collisions. The Traffic Program works in
conjunction with the Complete Streets and Transportation Commission, Traffic Safe
Communities Network, and Monte Sereno Better Streets Commission to promote the
continued success of programs such as Safe Routes to School. The Traffic Program also manages
and coordinates special events that may impact the flow of traffic upon the roadway or create
hazards.
Officers assigned to the Traffic Program are responsible for utilizing the California Vehicle Code
to educate, encourage, and enforce safe behaviors of motorists, bicyclists, and pedestrians on
public roadways. Officers are also responsible for the investigation and documentation of traffic
collisions.
Traffic Officers strive to reduce property damage, injury, and death related to traffic collisions.
For more than a decade, the Traffic Program has managed the School Crossing Guard program
in partnership with the Los Gatos Union School District and the Union School District to provide
contractual crossing guard services. The current contract renewal is anticipated in FY
2020/2021.
D – 156
POLICE DEPARTMENT
Traffic
BUDGET OVERVIEW
The Traffic Program is staffed with a 0.70 FTE Police Sergeant and 2.0 FTE sworn officers.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits 14,588$ 12,131$ 12,734$ 8,185$ 12,195$ 8,000$
Intergovernmental Revenue 361,175 399,153 448,482 305,000 317,454 305,000
Service Charges 107,702 107,702 115,250 123,318 123,318 131,907
Fines & Forfeitures 14,737 16,910 17,849 20,200 20,200 20,200
Other Revenues - - - - - -
TOTAL REVENUES 498,202$ 535,896$ 594,315$ 456,703$ 473,167$ 465,107$
EXPENDITURES
Salaries and Benefits 665,351$ 707,350$ 773,754$ 835,537$ 602,396$ 805,649$
Operating Expenditures 137,398 137,948 147,065 184,746 174,018 195,527
Fixed Assets - - - - - -
Internal Service Charges 129,420 147,391 90,545 64,674 57,095 65,297
TOTAL EXPENDITURES 932,169$ 992,689$ 1,011,364$ 1,084,957$ 833,509$ 1,066,473$
SUMMARY OF REVENUES AND EXPENDITURES
D – 157
POLICE DEPARTMENT
Traffic
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good Governance
Ensure
responsive,
accountable, and
collaborative
government
Major Traffic Collision Investigation Training and Equipment
In FY 2020/21, the Traffic Division will enhance their expertise by
completing training in vehicle collision reconstruction, investigation, and
other specialized training. The Traffic Division will work collaboratively with
the Major Collision Investigation Team to conduct a joint training on the
Topcon Robotics Total Station.
Electronic Handheld Traffic Citation System
In FY 2020/21, the Traffic Division will continue to explore integration and
implementation for electronic handheld traffic citation, which is
compatible with the new Computer Aided Dispatch and Records
Management System (CAD/RMS).
Public Safety
Ensure public
safety through
proactive
community
policing, effective
emergency
response, and
Reduction in Traffic Collisions
During FY 2020/21, the Traffic Division will work in collaboration with the
Operations Bureau and the Town Engineering Division to analyze
hazardous traffic collision data to prioritize locations throughout Town
requiring focused enforcement.
Safe Routes Promoting the Five “E’s”
In FY 2020/21, the Department will continue to participate in Safe Routes
to School, Traffic Safe Communities Network, and Complete Streets and
Transportation Commission programs and projects. These projects will
include the identification of alternate transportation methods,
management of traffic flow, and promotion of vehicle, bicycle and
pedestrian safety.
D – 158
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 the Traffic and Parking Commission.
• Reviews traffic safety plans for special events.
• Participates in regional efforts to maintain traffic safety.
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
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
Total Traffic Program FTEs 2.70 2.70 2.70 2.70 2.70
TRAFFIC PROGRAM STAFFING
D – 159
POLICE DEPARTMENT
Traffic
Performance Objectives and Measures
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of reported traffic collisions involving
drugs or alcohol:5.70%6.73%4.60%10.60%11.00%7.00%
2.
a.Traffic Index:23 28 24.1 18.8 12.1 30
Activity and Workload Highlights
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.2,585 2,839 2,537 2,087 1,381 2,512
2.Number of hazardous citations:1,945 1,929 2,145 1,616 1,058 1,909
3.Number of courtesy citations issued:2,808 2,399 1,882 1,677 1,891 1,600
4.50 60 55 68 70 58
5.366 282 304 288 265 291
6.83 69 89 86 88 82
*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 – 160
D – 161
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.
Detectives assigned to this Program conduct comprehensive investigations. This includes the
identification of crime trends and patterns, apprehension of criminal suspects, evidence
collection, interagency collaboration, and victim outreach. In addition, the Investigations
Program maintains and enforces the required registration and monitoring of sex offenders,
narcotics offenders, and arson offenders.
One Officer in this Program is assigned as the School Resource Officer (SRO). The SRO is
responsible for assisting in investigating crimes involving juveniles as victims or offenders,
managing youth-related problems and trends, and being a liaison to local schools. The SRO
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 school
campus and community safety and to be a presence on campus. Since FY 2009/10, funding for
the 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. The SRO
contract runs through June 30, 2021 and is expected to be renegotiated to continue this
service.
In addition, an Officer from this Program is assigned to Regional Enforcement Allied Computer
Enforcement (REACT) Task Force. REACT is a diversified partnership of local, state, and federal
agencies formed in cooperation with private industry to combat the escalating problem of high
technology crime and the threat it poses to the public, nonprofit, and private sectors.
D – 162
POLICE DEPARTMENT
Investigations
BUDGET OVERVIEW
The Investigations Program is comprised of 1.0 FTE Police Sergeant, six 1.0 FTE sworn Officers,
1.0 FTE Community Service Officer and 1.0 FTE Police Records Specialist.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits 889$ 1,313$ 187$ 500$ 1,960$ 500$
Intergovernmental Revenue 50,000 - - - 40,000 100,000
Service Charges 114,506 124,045 125,426 139,213 139,213 142,444
Fines & Forfeitures - - - - - -
Other Revenues 2,685 5,139 7,316 1,000 1,000 1,000
TOTAL REVENUES 168,080$ 130,497$ 132,929$ 140,713$ 182,173$ 243,944$
EXPENDITURES
Salaries and Benefits 1,934,392$ 1,858,971$ 1,916,088$ 2,501,656$ 2,360,723$ 2,520,829$
Operating Expenditures 130,531 130,616 126,134 203,760 169,743 208,660
Fixed Assets - - - - - -
Internal Service Charges 277,108 292,708 177,239 138,652 131,390 147,520
TOTAL EXPENDITURES 2,342,031$ 2,282,295$ 2,219,461$ 2,844,068$ 2,661,856$ 2,877,009$
SUMMARY OF REVENUES AND EXPENDITURES
D – 163
POLICE DEPARTMENT
Investigations
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good Governance
Ensure responsive,
accountable, and
collaborative
government
School Resource Officer Safety Diversion Programs
During FY 2020/21, the School Resource Officer (SRO) will continue
collaborative efforts with the Los Gatos-Saratoga Union High School
District, Los Gatos Union School District, and Los Gatos Home and School
Club to provide the educational component to the vaping diversion
programs as an alternative for youth offenders.
Inter-Agency Digital Evidence Discovery Systems
During FY 2020/21, the Department will identify a digital evidence storage
system which will integrate with the Santa Clara County District Attorney’s
Office evidence discovery process and procedures. This will reduce staff
time spent on duplicating video evidence for discovery requests, while
maintaining secured file access.
Evidence Management and Off-site Storage Facility Project
During FY 2020/21, Police Department staff will collaborate with Parks and
Public Works staff in the capital improvement project related to the
reconfiguration and build out of the Town Corporation Yard outbuilding
used as additional Police evidence and property storage.
Civic Enrichment
Foster opportunities
for citizen
involvement, and
cultural, recreational,
and individual
enrichment
Volunteer Student Intern Program
The Police Department will develop a volunteer student intern program,
geared toward college students who are interested in developing their
knowledge and understanding of the law enforcement profession. Student
interns will assist Police Department staff in various administrative duties in
several of the Police Divisions.
Citizen On-Line Reporting System Integration
During FY 2020/21, the Police Department will explore the integration of Cop
Logic Reporting software with the Computer Aided Dispatch (CAD/RMS)
system as an on-line crime reporting system. The Department will focus on
an online crime reporting system which enhances the user’s accessibility and
experience, but also allows for investigative oversight and management by
the Investigations Division.
D – 164
POLICE DEPARTMENT
Investigations
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Public Safety
Ensure public safety
through proactive
community policing,
effective emergency
response, and
community-wide
emergency
preparedness
Behavioral Intervention Team (BIT) Program
During FY 2020/21, the Police Department, Los Gatos High School (LGHS),
and Los Gatos-Saratoga Union High School District will continue to
collaborate in the development of a Behavioral Intervention Team at LGHS.
The multi-disciplinary BIT team meets regularly to identify at-risk behaviors
of students and develops early-staged intervention and counseling programs
to maintain a safe learning environment.
Anti-Theft Bait Technology
The Investigations Division strives to reduce thefts and property crimes
through the deployment of “bait” technology systems, targeting package
theft and bicycle theft offenders. In the upcoming year, crime analytics will
be utilized to identify package theft and bicycle crime trends to provide
opportunities for successful deployment.
Community Character
Preserve and enhance
the appearance,
character, and
environment quality
of the community
Community Threat Assessment
During FY 2020/21, Detectives will work with individual residents and
business owners to conduct property threat assessments and placement of
surveillance cameras to promote crime deterrence. The Police Department
maintains a voluntary database in which residents and businesses can
register having a surveillance system via “On Watch” and investigators may
then contact the owner to obtain footage if suspect information was possibly
captured on the camera.
D – 165
POLICE DEPARTMENT
Investigations
KEY PROGRAM SERVICES
• Investigates and solves crimes.
• Directs and coordinates the prosecution of offenders.
• Provides services to victims.
• 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.
Full Time Equivalents (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Police Captain - - 0.50 0.50 0.50
Police Lieutenant 0.50 0.50 - - -
Poice Sergeant 1.00 1.00 1.00 1.00 1.00
Police Officer * 6.00 6.00 6.00 6.00 6.00
Community Services Officer 1.00 1.00 1.00 1.00 1.00
Police Records Specialist 1.00 1.00 1.00 1.00 1.00
Total Investigation FTEs 9.50 9.50 9.50 9.50 9.50
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
CSO-Investigation Evidence - 1,040 - - -
Total Annual Hours - 1,040 - - -
*
INVESTIGATIONS PROGRAM STAFFING
Includes one officer in the Regional Enforcement Allied Computer Team (REACT).
D – 166
POLICE DEPARTMENT
Investigations
Performance Objectives and Measures
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Number of Part I and Part II crimes cleared:674 696 625 663 661 664
2.
a.Percentage of youthful offenders diverted from
the criminal justice system:
28%24%16%7%6%5%
3.
a.Percentage of criminal complaints issued by
District Attorney with charges filed:*
76%79%58%154%Measure
Discontinued
Measure
Discontinued
b. Percentage of criminal complaints denied by
District Attorney:*
23%17%24%17%Measure
Discontinued
Measure
Discontinued
Activity and Workload Highlights
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.1,888 1,417 1,401 1,482 1,401 1,518
2.683 809 840 746 769 769
3.292 357 361 376 281 333
*Measure discontinued effective FY 19/20
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 – 167
Police Department
PARKING MANAGEMENT
PROGRAM 4304
PROGRAM PURPOSE
The Parking Management Program coordinates, manages, and enforces vehicular parking on
roadways and highways and in municipal lots. The Parking Management Program uses the
California Vehicle Code and Town Municipal Code to enforce residential/employee/commercial
zone permit-only parking, time-restricted parking, disabled parking, and loading zones. The
enforcement of parking violations assists traffic flow and increases parking space availability.
This Program works in conjunction with the Patrol Division on vehicle tows, traffic control,
special events, and the deployment and management of the mobile speed radar trailers. In
addition, the Program manages the issuance of residential and business preferential parking
permits, as well as the Abandoned Vehicle Abatement Service Authority (AVASA) program in
Town to ensure roadways and highways are free of abandoned vehicles.
The Parking Management Program collaborates with the Town’s Parks and Public Works
Department and the Community Development Department to address permit parking, special
event parking, municipal lot parking management, and parking issues around schools. Parking
Control Officers utilize automated parking enforcement technology to assist in the efficiency
and accuracy of parking violation documentation and issuance of citations. They support Patrol
Officers with traffic control during high impact roadway events and assist with crossing guard
duties as necessary. This Program will begin to implement the recommendations from the
Comprehensive Parking Study.
D – 168
POLICE DEPARTMENT
Parking Management
BUDGET OVERVIEW
The Parking Management Program is budgeted for 0.30 FTE Police Sergeant and 2.0 FTE Parking
Control Officers. The Sergeant oversees and manages the deployment and allocation of Parking
Control resources. The Sergeant works collaboratively with the Town’s Parks and Public Works
Department, the Community Development Department, and the Complete Streets and
Transportation Commission to coordinate the monitoring and enforcement of parking related
concerns on Town streets and municipal lots.
The 1.0 FTE Parking Control Officer assigned to the Parking Management Program is now
reclassified to a 1.0 Senior Parking Control Officer. The Parking Control Officer position has
remained flexible to fulfill the needs of the Parking Program while maintaining its core function.
Additional temporary staffing hours (1000 hrs.) are proposed to add the job classification of
Parking Program Manager. This position will assist in the review and implementation of
recommendations contained in the Comprehensive Parking Study.
D – 169
POLICE DEPARTMENT
Parking Management
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits 42,791$ 37,742$ 49,123$ 36,000$ 41,000$ 36,000$
Intergovernmental Revenue - - - - - -
Service Charges - - - - - -
Fines & Forfeitures 801,037 609,934 400,246 436,000 311,964 394,000
Other Revenues 28,566 28,566 29,205 32,400 32,400 32,400
TOTAL REVENUES 872,394$ 676,242$ 478,574$ 504,400$ 385,364$ 462,400$
EXPENDITURES
Salaries and Benefits 282,567$ 302,763$ 281,177$ 343,772$ 306,475$ 414,841$
Operating Expenditures 336,358 282,855 222,516 281,828 268,360 292,728
Fixed Assets - - - - - -
Internal Service Charges 81,400 98,199 62,203 45,784 45,639 47,164
TOTAL EXPENDITURES 700,325$ 683,817$ 565,896$ 671,384$ 620,474$ 754,733$
SUMMARY OF REVENUES AND EXPENDITURES
D – 170
POLICE DEPARTMENT
Parking Management
FY 2020/21 KEY PROJECTS
KEY PROGRAM SERVICES
• Proactively collaborates with Park and Public Works Department in the management of
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 Complete Streets and Transportation Commission and
Parks and Public Works Department.
Core Goals Key Projects
Good Governance
Ensure responsive,
accountable, and
collaborative
government
Parking Management Program
During FY 2020/21, the Parking Management Program will explore the
potential for notification, implementation, and research for virtual parking
permits.
Comprehensive Parking Study Implementation
During FY 2020/21, the Parking Management Program will oversee the
implementation of some of the Comprehensive Parking Study
recommendations.
Ensure Responsive Accountable and Collaborative Government
In FY 2020/21, the Parking Management Program will continue to evaluate
Automated License Plate Reader (ALPR) technology, obtain parking metrics
and citation data to determine the appropriate deployment of the ALPR and
Parking personnel to maximize efficiencies.
D – 171
POLICE DEPARTMENT
Parking Management
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Police Sergeant 0.30 0.30 0.30 0.30 0.30
Senior Parking Control Officer - - - - 1.00
Parking Control Officer 2.00 2.00 2.00 2.00 1.00
Total Parking Mgmt. FTEs 2.30 2.30 2.30 2.30 2.30
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Parking Control Manager - - - - 1,000
Parking Control Officer 357 357 - - 300
Total Annual Hours 357 357 - - 1,300
PARKING MANAGEMENT FUND STAFFING
Performance Objectives and Measures
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of parking citations paid with initial
notices:
88%89%89%93%90%90%
2.Enforce timed limit, residential and employee zoned
permit parking.
a.During enforcement hours respond to community
reported parking problems within 20 minutes:
Yes Yes Yes Yes Yes Yes
Activity and Workload Highlights
2015/16
Actual
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.15,667 14,652 11,784 6,817 6,900 12,230
2.1,371 1,369 1,372 1,519 1,350 1,407
3.449 606 653 410 211 225
4.23 20 43 24 17 20
5.$41,129 $39,422 $37,742 $49,123 $40,000 $41,854
6.$755,240 $581,479 $591,414 $400,154 $225,000 $300,000
Revenue received on parking permits issued:
Revenue received on parking citations issued:
Number of residential and employee parking permits
issued:
Number of parking citations issued:
Number of vehicles marked for 72-hour parking:
Number of abandoned vehicles removed from public
streets:
Promote pedestrian and vehicular safety while providing
improved traffic flow and increased parking availability
on residential streets.
D – 172
D – 173
Police Department
PASS-THROUGH ACCOUNTS
PROGRAM 4999
PROGRAM PURPOSE
Revenues and expenditures which are collected for, and remitted to, external agencies are
considered “pass-through” appropriations in the Town’s budget. Accounting for these activities
in a separate accounting structure allows the true cost of operations to remain intact within a
program, eliminating unrelated funding fluctuations from year to year.
BUDGET OVERVIEW
There is no budgetary impact to this program as revenues equal expenditures. The revenues and
expenditures reflect a reasonable estimate based on prior year trends or Department
information; however, actuals may differ substantially from original budgeted numbers at fiscal
year-end.
FY 2020/21 revenues and expenditures reflect a pass-through of Community Emergency
Response Team (CERT) funds. As this program includes no staff activity, it does not have Key
Projects or Performance Measures.
D – 174
POLICE DEPARTMENT
Pass-Through Accounts
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue - - - - - -
Service Charges 5,012 2,263 3,946 3,000 479 -
Fines & Forfeitures - - - - - -
Other Revenues 22,561 - - 29,115 5,000 24,115
TOTAL REVENUES 27,573$ 2,263$ 3,946$ 32,115$ 5,479$ 24,115$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 28,178 5,442 4,520 32,115 6,372 24,115
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
TOTAL EXPENDITURES 28,178$ 5,442$ 4,520$ 32,115$ 6,372$ 24,115$
SUMMARY OF REVENUES AND EXPENDITURES
D – 175
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 CIP project must have a value of $25,000 or more with a minimum
useful life of 5 years at a fixed location.
Grant revenues and expenditures are structured to net out to zero. If overages or non-
reimbursable expenses occur for grant activities, the additional charges are absorbed within the
Department’s operating budget. Some grants require a Town matching or other contribution as
part of the award, which is reflected either as funding transferred into the grant, or expenditures
reallocated to the appropriate program budget.
BUDGET OVERVIEW
In FY 2019/20 the Police Department was awarded the Bulletproof Vest Partnership (BVP)
grant, created by the Bulletproof Vest Partnership Grant Act of 1998 it is a unique U.S.
Department of Justice initiative designed to provide a critical resource to state and local law
enforcement. The BVP Grant will continue into FY 2020/21.
In FY 2018/19 the Police Department was awarded a grant for the Innovations Grant Program
(IGP) from Peace Officer Standards and Training (POST). This Grant will continue into FY
2020/21. The focus of this POST grant is on fostering innovations in training and procedures for
law enforcement officers, with the goal of reducing the number of officer-involved shootings
statewide.
D – 176
POLICE DEPARTMENT
Operating Grants
PEACE OFFICER STANDARDS AND TRAINING (POST) GRANT
BSCC COMMUNITY GRANT
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue - - - 77,698 28,003 49,695
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES -$ -$ -$ 77,698$ 28,003$ 49,695$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures - - 143 77,698 28,003 49,695
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
TOTAL EXPENDITURES -$ -$ 143$ 77,698$ 28,003$ 49,695$
SUMMARY OF REVENUES AND EXPENDITURES
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue - 49,706 - 13,024 13,024 -
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES -$ 49,706$ -$ 13,024$ 13,024$ -$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures - 10,578 26,095 13,024 13,024 -
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
TOTAL EXPENDITURES -$ 10,578$ 26,095$ 13,024$ 13,024$ -$
SUMMARY OF REVENUES AND EXPENDITURES
D – 177
POLICE DEPARTMENT
Operating Grants
BVP GRANT
HOMELAND SECURITY GRANT
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue 4,076 873 1,309 5,069 5,000 5,000
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES 4,076$ 873$ 1,309$ 5,069$ 5,000$ 5,000$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 4,076 873 1,309 5,069 5,000 5,000
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
TOTAL EXPENDITURES 4,076$ 873$ 1,309$ 5,069$ 5,000$ 5,000$
SUMMARY OF REVENUES AND EXPENDITURES
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue 10,491 - - - - -
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES 10,491$ -$ -$ -$ -$ -$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 10,491 - - - - -
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
TOTAL EXPENDITURES 10,491$ -$ -$ -$ -$ -$
SUMMARY OF REVENUES AND EXPENDITURES
D – 178
POLICE DEPARTMENT
Operating Grants
OFFICE OF TRAFFIC STUDY GRANT
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Licenses & Permits -$ -$ -$ -$ -$ -$
Intergovernmental Revenue 603 - - - - -
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES 603$ -$ -$ -$ -$ -$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures - - - - - -
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$
SUMMARY OF REVENUES AND EXPENDITURES
Parks & Public Works
This Page Intentionally Left Blank
D –179
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
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates. The operating expenditures have
been augmented by an increase of $50,000 for increased water costs, $40,500 for one-time
consultant services in engineering, $25,000 for traffic signal maintenance, and a one-time
allocation of $150,000 for street tree maintenance, of which $50,000 is from the Town’s
dedicated tree fund.
During this fiscal year, the Department will advance or complete many priorities. Some projects
include: Wildfire Mitigation, the Vehicle Miles Travelled Policy, the Traffic Signal Modernization,
and the Highway 17 Interchange and Capacity Improvements project. Additionally, staff will work
to recommend, design, and deliver projects from the Town’s approved Bicycle and Pedestrian
Master Plan and Traffic Around Schools Plan and advance the newly branded Connect Los Gatos
Transportation Program and Community Engagement Plan. Staff will continue to apply for grants
to supplement Town funding and advance the Town’s capital project plans.
D –180
PARKS & PUBLIC WORKS DEPARTMENT
The Engineering Development program will continue to work on several key private projects in
Los Gatos including: the North Forty project, the Greenridge Terrace project, the mixed use
project on Union Avenue, the elderly care facility on Blossom Hill Road, and the elderly care
facility on Wood Road. Staff will continue to provide technical support and work collaboratively
with residents and private developers through the development process for new planning
applications to ensure compliance with Town regulations.
The School Bus Pilot Program, aimed at reducing traffic congestion around schools, will continue
into the next fiscal year. Through the course of the year, staff will continue to analyze and adjust
the program to maximize subscribers and ridership. In addition, staff will bring to Council
potential options to transition the program to a different model.
The Town continues to add recycling receptacles downtown and in parks through the Recycling
Expansion Program. In FY 2020/21, staff will add receptacles to multiple parks throughout the
Town. This program was created to comply with AB 939 and AB 341 to reduce litter throughout
the community and assist with reaching the Statewide diversion goal.
The Town’s Outside the Box Program is designed to enhance the character of the community by
adding artwork to utility boxes that are often targeted by graffiti vandals. Selected artwork
harbors environmental sustainability messages that include: alternative transportation, clean
energy, clean creeks, community sustainability, and healthy lifestyles. In FY 2019/20 five utility
boxes are being added which bring the total to 26, and another four are planned in FY 2020/21.
Staff will explore future sites as an ongoing project has been added to the Capital Improvement
Program.
The Streets and Signals Program includes a one-time budget increase for additional tree pruning
and trimming Town-wide. The additional funds will put the Town on a 15-year trimming cycle
(the industry standard is seven years).
The Department will continue work on several other areas, including facilities projects and
vegetation management. In addition to these, staff will continue to support the new West Valley
Clean Water Program JPA to manage the West Valley cities’ Non-Point Source Programs.
D –181
PARKS & PUBLIC WORKS DEPARTMENT
ACCOMPLISHMENTS
Core Goals Accomplishments
Community
Character
Preserve and
enhance the
appearance
character and
environment
quality of the
community
• Staff has been working actively on Phase 1 of the North 40
development project to review plans and documents, hold
meetings with the development team, and coordinate with both
the developer and their consultants. This collaborative effort led
to the issuance of encroachment permits for the project’s frontage
improvements within Lark Avenue and Los Gatos Boulevard, and
the grading permit for on-site work. In the current fiscal year
alone, staff and our consultant have collaborated in the review of
over 20 submittals of plans, held over 25 meetings and conference
calls with the developer and their consultants, and coordinated in
regard to numerous agreements, exhibits, maps and other project-
related details and documents.
• Added six new recycling receptacles on Santa Cruz Avenue and
Main street, three to Blossom Hill Park, and one to Belgatos Park
with the purpose of diverting items that would otherwise end up in
landfill, discouraging litter, and helping keep our local creeks clean
and pollution free.
• Provided sound mitigation at the Library by installing a glass wall
and entry door into the Teen Room.
• Implemented median island landscape and irrigation restoration at
locations along Los Gatos Blvd.
• Completed a pilot program one-way street conversion on North
Santa Cruz Avenue, that provided numerous learning opportunities
for a future downtown streetscape project.
• Supported the Downtown Parklet program enhancing the usability
of Downtown space and outdoor environment
D –182
PARKS & PUBLIC WORKS DEPARTMENT
ACCOMPLISHMENTS
Core Goals Accomplishments
Good Governance
Ensure responsive,
accountable and
collaborate
government
• Removed dead trees and brush along Shannon Road protruding
into the roadway on the narrow stretches near Santa Rosa Drive.
• Implemented landscape and irrigation restoration in the Vasona
Oaks Landscape and Lighting District area along the pedestrian
pathway leading into the development.
• Completed the last phase of the Almond Grove Street
Rehabilitation project.
• Continued to advance traffic calming projects and neighborhood
discussions on College Avenue and Tait Avenue.
• Sought grants for vegetation management to ensure the Town’s
open spaces and rights of way remain safe from fire risk.
• Successfully competed in regional programs to secure grants for
the East Main Street Raised Crosswalk/Speed Table project for
$86,200 and the Winchester Boulevard Class IV bike lane project
for $293,000.
• Received a Caltrans Grant of $72,000 to prepare a Local Roadway
Safety Plan.
Quality Public
Infrastructure
Maintain the
condition and
availability of public
facilities,
transportation
systems, and other
public
infrastructure
• Continued the School Bus Pilot service in school year 2019/20 with
two routes. Staff continues to monitor and report on subscription,
ridership and funding performance metrics. Secured regional
funding of $174,000 to be used in two year of service.
• Utilized a one-time increase in funding for tree maintenance to
ensure public trees remain safe.
• Completed the Annual Street Repair & Resurfacing project and
installed new bike lanes with green bike lane markings and/or
sharrows on Blossom Hill Road and National Avenue. Continued to
develop design work on the Los Gatos Creek Trail Connector
project.
• Completion of the Town’s first street maintenance project using a
cold-in-place recycling method that allows for grinding and reusing
the existing asphalt pavement, thereby lowering project costs and
providing environmental benefits.
• Completion of asphalt paving on Blossom Hill Road and National
Avenue using rubber asphalt concrete that utilized recycle rubber
vehicle tires providing a quieter road surface and environmental
benefits.
D –183
PARKS & PUBLIC WORKS DEPARTMENT
ACCOMPLISHMENTS
Core Goals Accomplishments
Quality Public
Infrastructure
Maintain the
condition and
availability of public
facilities,
transportation
systems, and other
public
infrastructure
• Completion of a Townwide Energy Efficiency Upgrade project using
an On-Bill Financing loan through a PG&E grant to reduce facility
energy costs through HVAC, building envelope, and LED lighting
upgrades.
• Installed the Town’s first multi-use bike path and protected bike
lane on Blossom Hill Road.
• Completed the design and successful bidding of the Highway
9/Massol Avenue Rectangular Rapidly Flashing Beacon project.
• Begun the conceptual engineering work on several projects: Bicycle
and Pedestrian Overcrossing over Highway 17, Winchester
Complete Streets, Shannon Road Multi-Use Path, and Kennedy
Road Sidewalk.
• Continued to develop the Los Gatos Smart Signals Project and
completed several technical reports, which supported a
comprehensive 5-step procurement process in compliance with
the federal project delivery requirements. Completion of the first
two vendor contracts.
Civic Enrichment
Foster
opportunities for
citizen
involvement, and
cultural,
recreational, and
individual
enrichment
• Created the new Complete Streets and Transportation Commission
by merging the Transportation and Parking Commission and the
Bicycle and Pedestrian Advisory Commission, bringing to one table
discussions on all modes of transportation.
• Launched Connect Los Gatos, a community engagement initiative
promoting a program of bicycle and pedestrian projects.
• In partnership with the Silicon Valley Bicycle Coalition, co-
sponsored an infrastructure bike ride on November 22, 2019 to
showcase the accomplishments in building bicycle and pedestrian
infrastructure in Los Gatos, and plans for additional improvements.
• Facilitated and tracked 265 volunteer hours over various efforts
including, but not limited to, Adopt-A-Highway, creek trail
cleanups, and park stewardship.
D –184
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.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Adopted
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits 689,850 881,694 848,096 705,199 751,699 690,199
Intergovernmental 50,787 77,175 44,890 38,200 38,200 38,200
Service Charges 724,705 2,010,305 1,338,163 618,277 1,213,424 650,277
Fines & Forfeitures 13,702 - 6,390 - - -
Other Revenues 89,630 245,283 197,668 39,553 49,859 89,393
TOTAL REVENUES 1,568,674$ 3,214,457$ 2,435,207$ 1,401,229$ 2,053,182$ 1,468,069$
Transfers In
Transfer from GFAR 97,808 315,616 325,616 315,616 315,616 315,616
Total Transfers In 97,808 315,616 325,616 315,616 315,616 315,616 TOTAL REVENUES & TRANSFERS IN 1,666,482$ 3,530,073$ 2,760,823$ 1,716,845$ 2,368,798$ 1,783,685$
EXPENDITURES
Salaries and Benefits*4,153,295$ 4,374,286$ 5,213,258$ 5,928,839$ 5,796,039$ 5,839,323$
Operating Expenditures 1,618,222 1,609,441 1,503,069 1,699,030 1,765,228 1,871,051
Fixed Assets 79,790 305,028 598,932 140,000 140,000 140,000
Pass Thru Account - 9,234 9,185 - - -
Internal Service Charges 746,437 801,537 645,188 302,199 282,689 301,671
TOTAL EXPENDITURES 6,597,744$ 7,099,526$ 7,969,632$ 8,070,068$ 7,983,956$ 8,152,045$
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Adopted
PROGRAM
Administration 340,123$ 562,340$ 570,096$ 594,434$ 606,451$ 615,919$
Engineering Prog Srvcs 1,157,205 1,168,666 1,215,300 1,244,432 1,440,652 1,301,155
Engineering Dev Srvcs 699,677 721,593 742,264 795,332 735,900 788,192
Park Services 1,738,961 1,835,775 1,737,287 2,016,614 1,957,937 2,040,375
Environmental Services 299,259 342,130 337,937 398,228 332,270 370,876
Streets Signals & Sidewalks 2,173,657 2,087,096 2,220,248 2,212,674 2,289,997 2,276,016
Property Damage 109,072 76,898 56,226 25,000 19,500 25,000
Vehicle Maintenance Management - - 221,062 235,199 154,298 244,673
Facilities Maintenance Management - - 305,042 408,155 310,001 349,839
Pass Through 79,790 305,028 564,170 140,000 140,000 140,000
TOTAL EXPENDITURES 6,597,744$ 7,099,526$ 7,969,632$ 8,070,068$ 7,987,006$ 8,152,045$
DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES
* Personnel previously budgeted in various Internal Service Funds are budgeted in the Parks and Public Works Department General Fund
Programs beginning in FY 2018/19.
D –185
PARKS & PUBLIC WORKS DEPARTMENT
2016/17 2017/18 2018/19 2019/20 2020/21
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 1.00 1.00
Town Engineer 1.00 1.00 - - -
Superintendent*0.80 0.80 1.00 1.00 1.00
Facilities & Environmental Svcs Mgr 0.50 - - - -
Parks & Public Works Operations Mgr*- 1.50 2.00 2.00 2.00
Transportation & Mobility Mgr - 1.00 1.00 1.00 1.00
Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00
Senior Administrative Analyst - - 0.75 0.75 0.75
Administrative Analyst 0.75 0.75 - - -
Executive Assistant 2.00 2.00 1.00 1.00 1.00
Administrative Assistant*1.80 1.80 2.50 2.50 2.75
Office Assistant*0.30 0.30 - - -
Environmental Programs Specialist - - 1.00 1.00 1.00
Associate Engineer 2.00 2.00 2.00 2.00 2.00
Assistant Engineer 1.00 1.00 2.00 2.00 2.00
Construction Project Mgr 1.00 1.00 1.00 1.00 1.00
Senior Engineering Inspector - - - - 1.00
Engineering Technician 1.00 1.00 1.00 1.00 -
Senior Public Works Inspector 1.00 1.00 0.50 0.50 0.50
Public Works Inspector 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 -
Lead Parks & Maintenance Worker*2.00 2.00 3.00 3.00 3.00
Parks & Maintenance Worker*7.75 6.75 7.75 7.75 8.75
Equipment Mechanic*- - 1.00 1.00 1.00
Total General Fund FTEs 28.40 29.40 33.50 33.50 33.75
Non-General Fund FTEs (in Parks & Public Works Department programs unless otherwise noted)
Non-Point Source
Parks & Maint Worker 0.25 0.25 0.25 0.25 0.25
Public Works Inspector 0.50 0.50 - - -
Senior Administrative Analyst - - 0.25 0.25 0.25
Senior Public Works Inspector - - 0.50 0.50 0.50
Administrative Analyst 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 - - -
Administrative Assistant*0.20 0.20 - - -
Office Assistant*0.20 0.20 - - -
Equipment Mechanic*1.00 1.00 - - -
Total Vehicle Maint. FTEs 1.60 1.60 - - -
DEPARTMENT STAFFING
Full Time Equivalent (FTE)
D –186
PARKS & PUBLIC WORKS DEPARTMENT
2016/17 2017/18 2018/19 2019/20 2020/21
Facilities Maintenance Funded Funded Funded Funded Proposed
Facilities & Environmental Svcs Mgr 0.50 - - - -
Parks & Public Works Operations Mgr*- 0.50 - - -
Lead Parks & Maintenance Worker*1.00 1.00 - - -
Parks & Maintenance Worker*1.00 1.00 - - -
Total Facilities Maint. FTEs 2.50 2.50 - - -
Total PPW Department FTE's 33.50 34.50 34.50 34.50 34.75
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Park Service Officer 1,000 - - - -
Maintenance Worker 976 976 - - -
Maintenance Assistant 6,591 5,661 5,661 5,661 5,661
Total Annual Hours 8,567 6,637 5,661 5,661 5,661
DEPARTMENT STAFFING
Full Time Equivalent (FTE)
*Personnel previously budgeted in Park and Public Works Department Internal Service Funds are budgeted in the
General Fund beginning in FY 2018/19.
D –187
Parks & Public Works Department
PARKS & PUBLIC WORKS ADMINISTRATION
PROGRAM 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 residents, 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
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 Senior 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. Staff forecasts that
90% of the 478 expected reservations in the coming year will be made online. The system allows
for more advanced program applications, such as report and data analysis tools, and gives
customers an enhanced user interface when making online reservations. Demand for reserved
space at Los Gatos parks remains high.
D –188
PARKS & PUBLIC WORKS DEPARTMENT
Administration
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits - - - - - -
Intergovernmental 7,140 (3,272) - - - -
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues 91 - - - - -
TOTAL REVENUES 7,231$ (3,272)$ -$ -$ -$ -$
Transfers In
Transfer from GFAR -$ 217,808$ 227,808$ 217,808$ 217,808$ 217,808$
Total Transfers In -$ 217,808$ 227,808$ 217,808$ 217,808$ 217,808$
TOTAL REVENUES & TRANSFERS IN 7,231$ 214,536$ 227,808$ 217,808$ 217,808$ 217,808$
EXPENDITURES
Salaries and Benefits 243,492$ 464,283$ 485,473$ 524,093$ 533,425$ 544,403$
Operating Expenditures 52,295 45,694 55,135 33,444 36,077 33,444
Fixed Assets - - - - - -
Internal Service Charges 44,336 52,363 29,488 36,897 36,949 38,072
TOTAL EXPENDITURES 340,123$ 562,340$ 570,096$ 594,434$ 606,451$ 615,919$
SUMMARY OF REVENUES AND EXPENDITURES
D –189
PARKS & PUBLIC WORKS DEPARTMENT
Administration
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Community
Character
Preserve and
enhance the
appearance
character and
environment
quality of the
community
Park Reservation System Management
Continue to manage the online parks reservation system for resident and
non-resident use of Town park facilities. Staff forecasts that 90% of the
478 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.
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 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 –190
PARKS & PUBLIC WORKS DEPARTMENT
Administration
2016/17 2017/18 2018/19 2019/20 2020/21
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 1.00 1.00 1.00
Senior Administrative Analyst - - 0.30 0.30 0.30
Administrative Analyst 0.30 0.30 - - -
Executive Assistant 0.25 0.25 0.25 0.25 0.25
Administrative Assistant 0.50 0.50 0.58 0.60 0.60
Office Assistant 0.30 0.30 - - -
TOTAL PROGRAM FTE's 1.75 2.75 2.53 2.55 2.55
PPW ADMINISTRATION PROGRAM STAFFING
Full Time Equivalent (FTE)
D –191
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 Capital Improvement Projects; Town-
wide and neighborhood traffic issues (such as the Town’s traffic calming policy and cut-through
traffic); engineering inspection services to ensure the Town’s project contractors are meeting
contract standards and requirements; development of Geographic Information System (GIS) data
to manage Town infrastructure, right-of-way, and property boundary issues; and the
administration of the asset management and workload tracking system.
BUDGET OVERVIEW
Engineering Program Services provides non-fee-related engineering services and activities.
Budgeted staffing supports engineering design, review, consultant management, 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 –192
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Program Services
For FY 2020/21, staff will manage the design and construction of several key projects: including
the largest Annual Street Rehabilitation Project and the Annual Curb, Gutter, Sidewalk and ADA
ramp Project constructed to date; the federally funded guardrail upgrade project; the Creek Trail
and Parking Lot Seal Coat Project; and the Annual Retaining Walls Repair Project. Staff will work
to recommend, design, and deliver projects from the Town’s approved Bicycle and Pedestrian
Master Plan and Traffic Around Schools Plan. Six of these high visibility projects are included in
the Town’s new Connect Los Gatos Program. This program provides branding for these key Town
multi-modal projects allowing residents to better understand the projects as they move forward
and increasing community outreach. Staff will work with the Metropolitan Transportation
Commission on the partially grant funded Traffic Signal Modernization project and with PG&E on
the Rule 20A project on Los Gatos Boulevard. This Program also helps with the preparation of
grant applications.
To support the work in this program, the Department often relies on project delivery models,
including the use of temporary part time staff. Costs for these alternative delivery models are
outside the Department’s allocated operating budget, but recaptured through transfers from
specific capital projects. This allows for delivery of a greater number and more complex projects
than would be possible with budgeted staffing.
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). The position is also advancing
existing Town priorities such as the school busing program, the Town’s signal controller and
communication system upgrade, and bicycle and pedestrian projects.
In addition to advancing Measure B priorities and securing grants for other transportation efforts,
staff will continue to prepare analysis to complete a Transportation Analysis Policy and Guidelines
in compliance with the CEQA Guidelines. The Town will need to establish a robust VMT reduction
program to achieve further VMT reduction.
D –193
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Program Services
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits - - - - - -
Intergovernmental - - - - - -
Service Charges 128,775 209,631 223,701 - 122,820 -
Other Revenues - - - - - -
TOTAL REVENUES 128,775$ 209,631$ 223,701$ -$ 122,820$ -$
Transfers In
Transfer from GFAR 97,808 97,808 97,808 97,808 97,808 97,808
Total Transfers In 97,808 97,808 97,808 97,808 97,808 97,808
TOTAL REVENUES & TRANSFERS IN 226,583$ 307,439$ 321,509$ 97,808$ 220,628$ 97,808$
EXPENDITURES
Salaries and Benefits 1,065,288$ 1,073,387$ 1,154,926$ 1,181,717$ 1,259,069$ 1,197,436$
Operating Expenditures 23,129 24,844 30,117 31,144 26,786 71,644
Fixed Assets - - - - - -
Pass Throughs - - - - 122,820 -
Internal Service Charges 68,788 70,435 30,257 31,571 31,977 32,075
TOTAL EXPENDITURES 1,157,205$ 1,168,666$ 1,215,300$ 1,244,432$ 1,440,652$ 1,301,155$
SUMMARY OF REVENUES AND EXPENDITURES
D –194
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Program Services
FY 2020/21 KEY PROJECTS
Core Values Key Projects
Community
Character
Preserve and
enhance the
appearance
character and
environment
quality of the
community
Yearly Maintenance Projects
In FY 2020/21, the Town will be completing the largest street maintenance
project and concrete maintenance/ADA ramp project in Town history.
Construction of these projects will allow the Town to keep the pavement
condition in the good condition category and allow residents better
accessibility to Town destinations. Construction will be complete by the
fall of 2020.
Connect Los Gatos Transportation Program & Community Engagement
Plan
PPW staff will move forward six key bicycle and pedestrian projects
identified under Connect Los Gatos. The projects were first identified
through the community and included in the Town’s Bicycle and Pedestrian
Master Plan as priority projects and are at different stages of development.
The projects provide multi-modal access to key Town destinations and help
develop the Town’s bike/ped network by providing important gap closures.
Four of the projects, including the Highway 17 Bicycle and Pedestrian
Overcrossing, the Winchester Complete Streets, and the two sidewalk infill
and bike projects on Shannon and Kennedy Road, will move into
preliminary design with associated community outreach. The two
remaining projects, the Los Gatos Trail Connector to Highway 9 and the
Massol/Highway 9 crosswalk upgrade will continue with final design, with
completion of the construction on the crosswalk upgrade by December of
2020. The Connect Los Gatos Community Engagement Plan provides
specific guidance to continue high level outreach to the community on
these projects to obtain important public input and perspective.
Smart Signal Project: Advanced Controller/Adaptive Signal Timing
Upgrade
Program staff will award both the federally funded signal vendor contract
and the engineering design contract for the project by December of 2020.
The Smart Signal project construction will start in the winter of 2021. The
project will allow for automatic controller adaptation of signal timing to
account for changes in traffic flow. This will increase the smooth flow of
traffic within the Town during periods of traffic change, such as school
hours. The adaptive system will be installed along Los Gatos Boulevard with
connections on Blossom Hill Road and Highway 9. The project will also
upgrade traffic controllers at 18 intersections within the Town.
D –195
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Program Services
FY 2020/21 KEY PROJECTS
Core Values Key Projects
Community
Character
Preserve and
enhance the
appearance
character and
environment
quality of the
community
Vehicle Miles Travelled Policy
Staff continues to prepare analysis to complete a Transportation Analysis
Policy and Guidelines in compliance with the CEQA Guidelines. The Town
will need to establish a robust VMT reduction program to achieve further
VMT reduction. Based on other jurisdictions’ experience and considering
the local setting, the most effective and feasible actions will likely include
bike and pedestrian improvements, Transportation Demand Management
actions, parking and policy changes, shuttles, and financial incentives. The
final policy and guidelines are expected to be adopted by the Town
Council in June 2020, with follow up work on local policies through the
2020 calendar year.
VMT Mitigation Program and Fee
It is anticipated that the new Transportation Analysis Policy and Guidelines
will make it necessary for the Town to establish a new VMT Mitigation
program. A nexus study will be required to establish a mitigation fee
program.
Quality Public
Infrastructure
Maintain the
condition and
availability of
public facilities,
transportation
systems, and
other public
infrastructure
Additional Capital Improvement Program Projects
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 maintenance projects
include the federally funded Town guardrail upgrade project, a retaining
wall repair on Wooded View Road, storm drain improvements on Bicknell
Road, and seal coating of the Town park’s parking lots and creek trail.
D –196
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 (RFPs), and manages consultants,
contractors and other various contracts.
• Designs and administers projects for the annual Capital Improvement Program, including
street resurfacing and curb, gutter, and sidewalk improvements.
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 –197
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Program Services
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Asst PPW Dir/Town Engineer - - 0.80 0.80 0.80
Town Engineer 0.80 0.80 - - -
Construction Project Mgr 0.60 0.60 0.60 0.60 0.60
Senior Civil Engineer 0.20 0.20 0.20 0.20 0.20
Senior Administrative Analyst - - 0.15 0.15 0.15
Administrative Analyst 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 0.80 0.80 0.80 0.80 0.80
Assistant Engineer 0.80 0.80 1.80 1.80 1.80
Senior Engineering Technician 1.00
Engineering Technician 1.00 1.00 1.00 1.00 -
Senior Public Works Inspector 0.70 0.70 0.15 0.15 0.15
Public Works Inspector 0.15 0.15 - - -
TOTAL PROGRAM FTEs 5.90 5.90 6.20 6.20 6.20
ENGINEERING PROGRAM SERVICES STAFFING
Full Time Equivalent (FTE)
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
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
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.1 1 3 3 3
2.1 0 3 3 2
3.0 0 2 2 1
4.8 5 12 2 5Number of CIP projects completed:
To effectively manage Capital Projects
Number of traffic calming projects closed:
Number of traffic calming projects in progress:
Number of traffic calming requests received:
D –198
D –199
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 construction
complies 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
Staff will continue to work on several key private development projects in Los Gatos including:
North Forty, Greenridge Terrace, the mixed-use project on Union Avenue, and the elderly care
facility on Blossom Hill Road. Additionally, a number of utility construction projects will start to
install fiber optic cable and small cell sites within the Town, which require staff oversight.
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 after the counter hours. 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 program has utilized flex-hour work
schedules to reduce overtime pay and to effectively manage the service demands.
D –200
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Development Services
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits 201,449 402,389 352,574 226,700 286,700 226,700
Intergovernmental - - - - - -
Service Charges 480,265 1,414,273 733,977 453,400 530,117 485,400
Fines & Forfeitures 13,462 - - - - -
Other Revenues 1,151 653 5,984 160 300 -
TOTAL REVENUES 696,327$ 1,817,315$ 1,092,535$ 680,260$ 817,117$ 712,100$
EXPENDITURES
Salaries and Benefits 552,491$ 564,918$ 637,143$ 697,951$ 640,890$ 692,165$
Operating Expenditures 37,576 35,725 30,657 54,749 53,151 54,749
Fixed Assets - - - - - -
Pass Thru Account - 9,234 9,185 - - -
Internal Service Charges 109,610 111,716 65,279 42,632 41,859 41,278
TOTAL EXPENDITURES 699,677$ 721,593$ 742,264$ 795,332$ 735,900$ 788,192$
SUMMARY OF REVENUES AND EXPENDITURES
D –201
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Development Services
FY 2020/21 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. The North Forty Project is currently
in progress and staff is moving from review of project design into review of
project construction. Other key projects moving into design and/or construction
include Greenridge Terrace, the mixed-use project on Union Avenue, and the
elderly care facility on Blossom Hill Road. Additionally, staff is working with the
developer of the elderly care unit on Wood Road as the project moves through
entitlements. Staff will continue to provide technical support and work
collaboratively with residents and private developers through the development
process so that these projects comply 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 has been and will continue
to prepare “Project Information Sheets” on engineering aspects of key
development proposals.
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.
D –202
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Development Services
KEY PROGRAM SERVICES
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.
• Provides verbal information at Council and Commission meetings.
2016/17 2017/18 2018/19 2019/20 2020/21
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 0.20 0.20
Town Engineer 0.20 0.20 - - -
Construction Project Mgr 0.14 0.14 0.14 0.14 0.14
Senior Civil Engineer 0.80 0.80 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 1.20 1.20 1.20 1.20 1.20
Assistant Engineer 0.20 0.20 0.20 0.20 0.20
Senior Public Works Inspector 0.30 0.30 0.35 0.35 0.35
Public Works Inspector 0.35 0.35 - - -
TOTAL PROGRAM FTEs 3.54 3.54 3.24 3.24 3.24
ENGINEERING DEVELOPMENT SERVICES STAFFING
Full Time Equivalent (FTE)
D –203
PARKS & PUBLIC WORKS DEPARTMENT
Engineering Development Services
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
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
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.304 311 336 320 320
2.22 20 17 20 20
3.176,081$ 376,262$ 320,316$ 250,000$ 200,000$
4.68,060$ 392,986$ 146,773$ 75,000$ 65,000$
* 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 –204
D –205
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, fountains, 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
In FY 2020/21, the use of outside vendors for certain parks maintenance services will continue,
including turf mowing, tree trimming, downtown tree lighting, 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.
Although water 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 operational focus. The Department will
continue to enhance irrigations systems in parks, medians islands, and downtown planter boxes
to reduce the use of potable water.
In FY 20/21 staff will complete several park improvements projects at Oak Meadow Park, Blossom
Hill Park, and Live Oak Manor Parks. These projects will seal asphalt pathways and parking lots.
D –206
PARKS & PUBLIC WORKS DEPARTMENT
Park Services
In addition, staff will install a new outdoor fitness apparatus along the Creek Trail near Balzer
Field.
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 continue to combine resources with Streets and Signals Program staff
to complete several large in-house maintenance projects. Because the Parks and Public Works
Operations Manager 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, turf renovation, 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. This involves annual inspection and cleaning
of storm water catch basins, including the reporting of data to achieve permit compliance.
D –207
PARKS & PUBLIC WORKS DEPARTMENT
Park Services
FY 2020/21 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 Oak Meadow, Blossom Hill, and Live Oak Manor Parks. These
projects will seal asphalt pathways and parking lots. Other projects include the
installation of a new Outdoor Fitness Apparatus to be located along the Creek
Trail at one of the trail head locations.
Landscape and Lighting Districts
Improvement projects are underway at several locations to rehabilitate
irrigation, lighting, and plantings to continue to raise the level of service,
aesthetics, and safety in these areas.
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.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits 186,691 162,996 152,328 165,000 150,000 150,000
Intergovernmental - 51,204 - - - -
Service Charges 44,329 72,497 46,184 40,877 58,102 40,877
Fines & Forfeitures 240 - 6,390 - - -
Other Revenues 19,676 32,243 28,506 19,393 18,401 19,393
TOTAL REVENUES 250,936$ 318,940$ 233,408$ 225,270$ 226,503$ 210,270$
EXPENDITURES
Salaries and Benefits 1,040,757$ 1,055,027$ 1,095,821$ 1,363,845$ 1,253,986$ 1,340,833$
Operating Expenditures 500,118 569,909 502,626 580,759 638,892 630,759
Fixed Assets - - - - - -
Internal Service Charges 198,086 210,839 138,840 72,010 65,059 68,783
TOTAL EXPENDITURES 1,738,961$ 1,835,775$ 1,737,287$ 2,016,614$ 1,957,937$ 2,040,375$
SUMMARY OF REVENUES AND EXPENDITURES
D –208
PARKS & PUBLIC WORKS DEPARTMENT
Park Services
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Quality Public
Infrastructure
Maintain the
condition and
availability of
public
facilities,
transportation
systems, and
other public
infrastructure
Wildfire Mitigation
Town staff is pursuing multiple grants to fund wildfire mitigation in Town open
spaces and along the rights of way in the hillsides. Potential grants sources
include FEMA and the State of California and will require a local match to
complete. In addition to the potential grant opportunities, staff is programing
vegetation management projects along primary ingress/egress routes in the
Wildland Urban Interface (WUI) portion of Town.
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.
• Maintains the interactive fountain at Plaza Park and the fountain at the Civic Center.
• 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.
D –209
PARKS & PUBLIC WORKS DEPARTMENT
Park Services
KEY PROGRAM SERVICES
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, if requested.
2016/17 2017/18 2018/19 2019/20 2020/21
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 0.13 0.13
Facilities & Environmental Services Mgr 0.10 - - - -
Park & Public Works Operation Mgr - 0.60 0.60 0.60 0.60
Senior Administrative Analyst - - 0.15 0.15 0.15
Administrative Analyst 0.15 0.15 - - -
Executive Assistant 0.25 0.25 0.25 0.25 0.25
Administrative Assistant 0.40 0.40 0.45 0.30 0.55
Parks Service Officer 1.00 1.00 1.00 1.00 1.00
Tree Trimmer/High Climber 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 2.00 1.00 4.00 4.00
TOTAL PROGRAM FTE's 7.63 7.13 6.18 8.03 8.28
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Parks Service Officer 1,000 - - - -
Maintenance Assistant 5,963 5,033 5,033 5,033 5,033
TOTAL ANNUAL HOURS 6,963 5,033 5,033 5,033 5,033
PARK SERVICES PROGRAM STAFFING
Full Time Equivalent (FTE)
D –210
PARKS & PUBLIC WORKS DEPARTMENT
Park Services
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of parks with playground equipment
receiving weekly safety inspections:
90%90%90%90%90%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.350.9 350.9 350.9 350.9 350.9
2.14.9 14.9 9 9 9
3.525 509 512 510 510
4.48 28 29 30 30
5.36 31 35 35 35Total 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 –211
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, 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.
D –212
PARKS AND PUBLIC WORKS DEPARTMENT
Environmental Services
Staff also actively participates in the West Valley Solid Waste Management Authority, the local
joint powers authority for managing the solid waste vendor contracts.
BUDGET OVERVIEW
Program staff will continue to advance approved 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 represent the Town 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 2019/20. 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.
In FY 2020/21, staff will add receptacles in multiple Town parks. This program was created to
comply with AB 939 and AB 341 to reduce litter throughout the community and assist with
reaching the statewide diversion goal.
The Town’s Outside the Box Program is designed to enhance the character of the community by
adding artwork to utility boxes that are often targeted by graffiti vandals. Selected artwork
harbors environmental sustainability messages that include: alternative transportation, clean
energy, clean creeks, community sustainability, and healthy lifestyles.
Town staff is partnering with the West Valley Clean Water Program Authority (WVCWPA) and the
City of Campbell in adding ten waste and educational stations (five in Los Gatos) along the Los
Gatos Creek Trail. Each station will consist of trash and recycling receptacles, a dog waste
station, and environmental outreach signage. The Town is currently in the design phase of the
grant with anticipated installation in FY 2020/21.
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 $12,000.
D –213
PARKS AND PUBLIC WORKS DEPARTMENT
Environmental Services
A portion of the staff time is funded through the Parks and Public Works Operating Budget, and
the remaining budget and responsibility resides with the Town Manager’s Office.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits 114,814 118,867 142,816 121,956 121,956 121,956
Intergovernmental 43,647 29,243 44,890 38,200 38,200 38,200
Service Charges - - - - - -
Other Revenues 500 - - - - -
TOTAL REVENUES 158,961$ 148,110$ 187,706$ 160,156$ 160,156$ 160,156$
Transfers In
Transfer from General Fund - - - - - -
Total Transfers In - - - - - -
TOTAL REVENUES & TRANFERS IN 158,961$ 148,110$ 187,706$ 160,156$ 160,156$ 160,156$
EXPENDITURES
Salaries and Benefits 145,872$ 155,532$ 176,079$ 216,729$ 170,480$ 189,346$
Operating Expenditures 146,953 179,993 160,823 180,887 161,326 180,887
Fixed Assets - - - - - -
Internal Service Charges 6,434 6,605 1,035 612 464 643
TOTAL EXPENDITURES 299,259$ 342,130$ 337,937$ 398,228$ 332,270$ 370,876$
Transfers Out
Transfer to General Fund - - - - - -
Total Transfers Out - - - - - -
TOTAL EXPENDITURES & TRANSFERS OUT 299,259$ 342,130$ 337,937$ 398,228$ 332,270$ 370,876$
SUMMARY OF REVENUES AND EXPENDITURES
D –214
PARKS AND PUBLIC WORKS DEPARTMENT
Environmental Services
FY 2020/21 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 2020/21, staff will
continue to work actively with the JPA and West Valley Collection and Recycling.
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.
Additionally, staff will continue 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. 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 waste.
Throughout the year, the program will continue to monitor the work performed
under this contract, which allows residents to dispose of potentially hazardous
waste such as paint, used motor oil and filters, pesticides, herbicides, corrosives,
flammables, and household medical waste
D –215
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.
• Promotes 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)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Facilities & Environmental Services Mgr 0.40 - - - -
Park & Public Works Operation Mgr - 0.40 0.40 0.40 0.40
Executive Assistant 1.00 - - - -
Environmental Programs Specialist - 1.00 1.00 1.00 1.00
Total General Fund FTE 1.40 1.40 1.40 1.40 1.40
ENVIRONMENTAL SERVICES PROGRAM STAFFING
D –216
PARKS AND PUBLIC WORKS DEPARTMENT
Environmental Services
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Disposal per capita by calendar year (target
is < 5.2 lbs./person/day): *3.5 2.6 3.6 3.0 3.0
2016 2017 2018 2019 2020
2.
a.Percentage of solid waste collection calls
received and resolved within 2 days:
100%100%100%100%100%
b.Diversion Rate: 45%53%58%58%58%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.1,066 1,141 1,057 1,100 1,100
2.N/A 208 202 210 210
3.8 8 8 8 8
4.63,432 67,632 86,774 87,000 87,000
* Target is provided by the California Department of resources Recycling and Recovery (CalRecycle).
Maximize diversion from landfills in order to
protect public health and safety, and the
Monitor and evaluate existing waste collection and
recycling programs.
Number of Electric Vehicle Charging Stations:
Total kWh used by Electric Vehicle Chargers:
Town solar usage (Megawatts generated):
Number of Los Gatos households participating in
the Household Hazardous Waste Disposal
Program:
D –217
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 2020/21, the Streets and Signals Program will continue to provide tree maintenance as a
contractual service. This has been done for the last six years as a cost savings measure and it
allows staff to focus on other day-to-day operational responsibilities. This contract will be
increased one-time by $150,000 for additional maintenance Town-wide. The additional funds will
put the Town on a 15-year trimming cycle (the industry standard is seven years).
The program will implement an Integrated Pest Management Plan (IPM) that provides technical
guidance to determine appropriate pesticide use to control the growth of weeds around facilities,
parks, and roadsides. The IPM plan will emphasize measures other than use of chemicals to
control weeds in the open space through means of mechanical vegetation removal and the
application of nontoxic chemicals whenever possible.
D –218
PARKS & PUBLIC WORKS DEPARTMENT
Streets & Signals Program
The Town Arborist will continue to manage the Town’s urban forest and will retain an active role
in managing the contractual services component of this work. Additionally, the Arborist will
perform landscape review for small to medium private development proposals. The Arborist also
reviews private property tree removal applications and ensures compliance with the Town Code
and appropriate mitigation.
Downtown trash can removal service will be performed through contractual services.
Additionally, overtime costs will be contained by only operating the “Stand-by Program” during
November through March, instead of year-round. Street sweeping services will continue in the
Town and be carried out by the Parks and Maintenance Workers.
Streets and Signals staff will continue to be responsible for the maintenance and operations of
the trash capture devices, which were installed in FY 2012/13 to meet a requirement of the San
Francisco Bay Area Storm Water Municipal Regional Permit. This is an ongoing maintenance
responsibility for the Town.
D –219
PARKS & PUBLIC WORKS DEPARTMENT
Streets & Signals Program
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits 186,896 197,442 200,378 191,543 193,043 191,543
Intergovernmental - - - - - -
Service Charges 4,778 588 6,374 4,000 9,397 4,000
Other Revenues 28,124 - 73,160 - - 50,000
TOTAL REVENUES 219,798$ 198,030$ 279,912$ 195,543$ 202,440$ 245,543$
EXPENDITURES
Salaries and Benefits 1,105,395$ 1,061,139$ 1,141,784$ 1,312,099$ 1,359,556$ 1,285,681$
Operating Expenditures 749,079 676,378 667,485 793,047 829,496 874,568
Fixed Assets - - 34,762 - - -
Internal Service Charges 319,183 349,579 376,217 107,528 100,945 115,767
TOTAL EXPENDITURES 2,173,657$ 2,087,096$ 2,220,248$ 2,212,674$ 2,289,997$ 2,276,016$
SUMMARY OF REVENUES AND EXPENDITURES
D –220
PARKS & PUBLIC WORKS DEPARTMENT
Streets & Signals Program
FY 2020/21 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, brush removal
activities, and the storm drain catch basin cleaning program.
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 –221
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.
• Maintains 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 events.
• Installs banners and flags, as requested by local organizations and approved by the
Town.
D –222
PARKS & PUBLIC WORKS DEPARTMENT
Streets & Signals Program
2016/17 2017/18 2018/19 2019/20 2020/21
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 0.13 0.13
Park & Public Works Operation Mgr - 0.50 0.50 0.50 0.50
Senior Administrative Analyst - - 0.15 0.15 0.15
Administrative Analyst 0.15 0.15 - - -
Executive Assistant 0.25 0.25 0.25 0.25 0.25
Administrative Assistant 0.30 0.30 0.53 0.60 0.60
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
Parks & Maint Worker 4.75 4.75 5.75 3.75 3.75
TOTAL PROGRAM FTEs 8.18 8.68 9.91 7.98 7.98
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Maintenance Worker 488 488 - - -
TOTAL ANNUAL HOURS 488 488 - - -
STREETS & SIGNALS PROGRAM STAFFING
Full Time Equivalent (FTE)
D –223
PARKS & PUBLIC WORKS DEPARTMENT
Streets & Signals Program
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of streetlight malfunctions repaired
within 5 days of notification:100%100%100%100%100%
2.
a.Pavement Condition Index (PCI):67 68 70 71 72
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.1,797 1,797 1,797 1,797 1,797
2.Number of street light malfunctions reported:104 38 36 37 37
3.137 38 36 37 37
4.30 30 31 31 31
5.150 150 132 132 132
6.388 483 230 300 300
7.152 120 160 130 130
8.240 221 227 230 230
9.757 821 754 780 780
10.757 1,117 1,564 1500 1500
11 2,065 0 350 350 350
12.Miles of street resurfaced:*N/A N/A 6.11 17 10
13.Number of new ADA curb ramps/upgraded ADA curb N/A 68 54 69 69
ramps constructed:*
14.98,924 99,659 107,810 107,810 110,000
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 for tree-related work,
including, but not limited to, inspections or pruning:
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 traffic signs repaired/replaced:
To provide safe and functional roadway systems
throughout Town.
To ensure streetlights and traffic signals are working in
effective operating order.
D –224
D –225
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 2020/21 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 $25,000 in expenditures was
budgeted; budget adjustments, if necessary, will be brought forward for Council consideration
during the mid-year budget review process. Due to the timing of the receipt of reimbursements,
prior year revenue actuals are initially higher than expenditures. As this program includes no
staff activity, it does not have Key Projects or Performance Measures.
D –226
PARKS & PUBLIC WORKS DEPARTMENT
Property Damage
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits - - - - - -
Intergovernmental - - - - - -
Service Charges - - - - - -
Other Revenues 26,856 206,630 83,025 - 11,158 -
TOTAL REVENUES 26,856$ 206,630$ 83,025$ -$ 11,158$ -$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 109,072 76,898 56,226 25,000 19,500 25,000
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
TOTAL EXPENDITURES 109,072$ 76,898$ 56,226$ 25,000$ 19,500$ 25,000$
SUMMARY OF REVENUES AND EXPENDITURES
D –227
Parks & Public Works Department
VEHICLE MAINTENANCE MANAGEMENT
PROGRAM 5406
PROGRAM PURPOSE
The Vehicle Maintenance Management 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. 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 term.
Staff continues to reduce the purchase of diesel-powered vehicles wherever feasible. The
purchase of diesel powered equipment has been limited to large equipment and heavy trucks.
Operating expenditures that were previously funded in the Vehicle Maintenance Internal Service
Fund were programmed beginning in FY 2019/20 in the General Fund Vehicle Maintenance
Management Program.
Fuel prices have trended low this fiscal year, although costs can fluctuate dramatically, making
forecasting fuel prices for the fiscal year difficult. Due to market variations, cost projections
remain conservative; however, any fuel expenditures over and above the established budget
would be brought forth in the mid-year budget report.
D –228
PARKS & PUBLIC WORKS
Vehicle Maintenance Management
FY 2020/21 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.
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.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits - - - - - -
Intergovernmental - - - - - -
Service Charges - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES -$ -$ -$ -$ -$ -$
EXPENDITURES
Salaries and Benefits*-$ -$ 220,206$ 234,533$ 272,285$ 244,395$
Operating Expenditures - - - - (119,770) -
Fixed Assets - - - - - -
Internal Service Charges - - 856 666 1,783 278
TOTAL EXPENDITURES -$ -$ 221,062$ 235,199$ 154,298$ 244,673$
SUMMARY OF REVENUES AND EXPENDITURES
* Personnel previously budgeted in the Vehicle Maintenance Internal Service Fund are budgeted in the Vehicle Maintence General
Fund Staffing Program beginning in FY 2018/19.
D –229
PARKS & PUBLIC WORKS
Vehicle Maintenance Management
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good
Governance
Ensure
responsive,
accountable
and
collaborate
government
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. 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 gasoline, and diesel fuel.
D –230
PARKS & PUBLIC WORKS
Vehicle Maintenance Management
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
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:$0.29 $0.37 $0.42 $0.40 $0.40
General Fleet - light:$0.57 $0.83 $1.09 $0.95 $0.95
General Fleet - heavy:$1.35 $1.72 $1.88 $1.80 $1.80
c.Percentage of fleet that is alternate fuel
vehicles:*
24%22%21%21%22%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.46 44 46 46 46
2.4 4 4 4 4
3.42 42 42 42 42
4.43 45 44 44 44
5.7 12 13 13 13
6.5 2 2 2 2
* New measure effective FY 2015/16, historical data provided when available.
Number of police vehicles maintained:
To provide safe and functional vehicles and
Electric vehicles:
Hybrid vehicles:
Pieces of equipment maintained (light and heavy
duty):
Number of heavy-duty vehicles maintained:
Number of light-duty (non-police) vehicles
maintained:
D –231
Parks & Public Works Department
FACILITIES MAINTENANCE STAFFING
PROGRAM 5407
PROGRAM PURPOSE
Facilities Maintenance staffing program reflects all salaries and benefits related to facilities
maintenance staffing.
BUDGET OVERVIEW
The FY 2020/21 budget includes increases in salary and benefit costs attributable to negotiated
salary raises, and higher benefit and CalPERS pension rates.
D –232
PARKS & PUBLIC WORKS
Facilities Maintenance Staffing
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits - - - - - -
Intergovernmental - - - - - -
Service Charges - - - - - -
Other Revenues - - - - - -
TOTAL REVENUES -$ -$ -$ -$ -$ -$
EXPENDITURES
Salaries and Benefits*-$ -$ 301,826$ 397,872$ 306,348$ 345,064$
Operating Expenditures - - - - - -
Fixed Assets - - - - - -
Internal Service Charges - - 3,216 10,283 3,653 4,775
TOTAL EXPENDITURES -$ -$ 305,042$ 408,155$ 310,001$ 349,839$
SUMMARY OF REVENUES AND EXPENDITURES
* Personnel previously budgeted in the Facilities Maintenance Internal Service Fund are budgeted in the Facilities Maintence
General Fund Staffing Program beginning in FY 2018/19.
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Park & Public Works Operation Mgr - - 0.50 0.50 0.50
Lead Parks & Maint Worker - - 1.00 1.00 1.00
Parks & Maint Worker - - 1.00 1.00 1.00
Total Building Maint. FTEs - - 2.50 2.50 2.50
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Maintenance Assistant - - 628 628 628
TOTAL ANNUAL HOURS - - 628 628 628
FACILITIES MAINTENANCE PROGRAM STAFFING
D –233
Parks & Public Works Department
PASS-THRO UGH 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 –234
PARKS & PUBLIC WORKS DEPARTMENT
Pass-Through Accounts
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Other Taxes -$ -$ -$ -$ -$ -$
Licenses and Permits - - - - - -
Intergovernmental - - - - - -
Service Charges 66,558 313,316 327,927 120,000 492,988 120,000
Other Revenues 13,232 5,757 6,993 20,000 20,000 20,000
TOTAL REVENUES 79,790$ 319,073$ 334,920$ 140,000$ 512,988$ 140,000$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures - - - - - -
Pass Thru Account 79,790 305,028 564,170 140,000 140,000 140,000
Internal Service Charges - - - - - -
TOTAL EXPENDITURES 79,790$ 305,028$ 564,170$ 140,000$ 140,000$ 140,000$
SUMMARY OF REVENUES AND EXPENDITURES
D –235
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.
Vehicle 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 and may delay
replacement based on the vehicle condition.
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 2020/21 replacement schedule identifies 7 vehicles
for replacement as determined by the Town’s Equipment Replacement Policy. The vehicles
scheduled for replacement are in the Police and Parks and Public Works fleets.
D –236
PARKS & PUBLIC WORKS DEPARTMENT
Equipment Replacement Fund
The cost for vehicle replacement continues to escalate 3% to 5% annually based on market
increases. 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 from the general fleet based on emergency response,
including traveling at high rates of speed. As a result, special equipment such as warning 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 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.
On an ongoing basis, staff will also explore replacement costs versus rental of equipment to
reduce ongoing program operating 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 $1.5 million was made in FY 2016/17 to fund a portion of
the CIP project. This has resulted in a negative projected fund balance in future years,
necessitating increased contribution to the Equipment Replacement Fund through increased
internal service charges to ensure adequate resources for future Town equipment needs. In FY
2020/21, internal service charges are determined by the anticipated need for the current fiscal
year.
D –237
PARKS & PUBLIC WORKS DEPARTMENT
Equipment Replacement Fund
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated - Non-Point Assets 207,831$ 207,831$ 207,831$ 207,831$ 207,831$ 207,831$
Designated - General Fund Assets 1,940,173 1,686,225 2,120,441 2,600,972 2,600,972 2,079,902
Total Beginning Fund Balance 2,148,004 1,894,056 2,328,272 2,808,803 2,808,803 2,287,733
Revenues
Service Charge 381,323 622,313 610,000 199,093 199,093 267,546
Interest - - - - - -
Other Revenues 77,366 50,303 22,492 30,000 36,987 30,000
Total Revenues 458,689 672,616 632,492 229,093 236,080 297,546
Transfers In
Transfer from Capital Projects - 98,000 - - - -
Transfer from General Fund - 300,000 450,000 - - -
Transfer from MIS - - - - - -
Total Transfers In - 398,000 450,000 - - -
Total Revenues & Transfers In 458,689 1,070,616 1,082,492 229,093 236,080 297,546
TOTAL SOURCE OF FUNDS 2,606,693$ 2,964,672$ 3,410,764$ 3,037,896$ 3,044,883$ 2,585,279$
USES OF FUNDS
Expenditures
Salaries and Benefits*9,919$ 11,533$ -$ -$ -$ -$
Operating Expenditures 4,232 3,952 - - - -
Fixed Assets 402,806 620,915 601,961 1,661,240 702,400 1,356,248
Internal Service Charges - - - - - -
Total Expenditures 416,957 636,400 601,961 1,661,240 702,400 1,356,248
Transfers Out
Transfer to General Fund - - - - 54,750 40,498
Transfer to Capital Projects 295,680 - - 525,000 - -
Total Transfers Out 295,680 - - 525,000 54,750 40,498
Total Expenditures & Transfers Out 712,637 636,400 601,961 2,186,240 757,150 1,396,746
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 1,686,225 2,120,441 2,600,972 643,825 2,079,902 980,702
Total Ending Fund Balance 1,894,056 2,328,272 2,808,803 851,656 2,287,733 1,188,533
TOTAL USE OF FUNDS 2,606,693$ 2,964,672$ 3,410,764$ 3,037,896$ 3,044,883$ 2,585,279$
STATEMENT OF SOURCE AND USE OF FUNDS
* Personnel previously budgeted in the Equipment Replacement Internal Service Fund are budgeted in the Finance Department General
Fund Program beginning in FY 2018/19.
D –238
PARKS & PUBLIC WORKS DEPARTMENT
Equipment Replacement Fund
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Quality Public
Infrastructure
Maintain the
condition and
availability of
public
facilities,
transportation
systems, and
other public
infrastructure
Vehicle Replacements
Staff will continue to monitor and evaluate key equipment, including generators
and vehicles to ensure assets are replaced at key intervals to maximize the
useful life, reliability, and resale values.
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)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Account Technician 0.10 - - - -
Administrative Analyst*- 0.10 - - -
Total Equipment Replacement FTEs 0.10 0.10 - - -
EQUIPMENT REPLACEMENT FUND STAFFING
*Personnel previously budgeted in Equipment Replacement Internal Service fund are budgeted in the General Fund
beginning in FY 2018/19.
D –239
Parks & Public Works Department
VEHICLE MAINTENANCE FUND
FUND 632
PROGRAM PURPOSE
All items previously funded in the Vehicle Maintenance Fund, an Internal Service Fund, have been
transferred to the Vehicle Maintenance Management Fund in the General Fund beginning in FY
2019/20.
D –240
PARKS & PUBLIC WORKS DEPARTMENT
Vehicle Maintenance Fund
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 409,872 182,368 262,788 - - -
Total Beginning Fund Balance 409,872 182,368 262,788 - - -
Revenues
Service Charge 573,865 586,654 376,655 - - -
Interest - - - - - -
Other Revenues 3,810 - 387,752 - - -
Total Revenues 577,675 586,654 764,407 - - -
TOTAL SOURCE OF FUNDS 987,547$ 769,022$ 1,027,195$ -$ -$ -$
USES OF FUNDS
Expenditures
Salaries and Benefits*562,635$ 269,302$ -$ -$ -$ -$
Operating Expenditures 242,544 236,932 252,206 - - -
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
Total Expenditures 805,179 506,234 252,206 - - -
Transfers Out
Transfer to Genral Fund - - 774,989 - - -
Total Transfers Out - - 774,989 - - -
Total Expenditures & Transfers Out 805,179 506,234 1,027,195 - - -$
Ending Fund Balance
Designated - - - - - -
Undesignated 182,368 262,788 - - - -
Total Ending Fund Balance 182,368 262,788 - - - -
TOTAL USE OF FUNDS 987,547$ 769,022$ 1,027,195$ -$ -$ -$
STATEMENT OF SOURCE AND USE OF FUNDS
* Personnel previously budgeted in the Vehicle Maintenance Internal Service Fund are budgeted in the Vehicle Maintence General
Fund Staffing Program beginning in FY 2018/19.
D –241
PARKS & PUBLIC WORKS DEPARTMENT
Vehicle Maintenance Fund
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Superintendent 0.20 0.20 - - -
Administrative Assistant 0.20 0.20 - - -
Office Assistant 0.20 0.20 - - -
Equipment Mechanic 1.00 1.00 - - -
Total Vehicle Maint. FTEs 1.60 1.60 - - -
VEHICLE MAINTENANCE FUND STAFFING
D –242
D –243
Parks & Public Works Department
FACILITIES MAINTENANCE FUND
FUND 633
PROGRAM PURPOSE
The Facilities Maintenance Fund provides services to ensure Town facilities are safe and
functional for public and employee use. Services include custodial services, elevator
maintenance, cell phone services, heating and ventilation systems, building improvements,
facility security, lighting systems, solar energy, and electric vehicle charging stations. Facilities
staff also plan, schedule, and manage small and large building facility projects such as building
remodeling, public access infrastructure improvements, floor covering, work space
reconfigurations, roof repairs, heating and air conditioning system improvements, electrical
services, and all other aspects required to keep the Town’s facilities functional 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.
Additionally, this fiscal year staff will continue to assess energy efficiency measures and current
CIP upgrades in Town-owned facilities in collaboration with staff from the Environmental Services
Program.
This fund 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 –244
PARKS & PUBLIC WORKS DEPARTMENT
Facilities Maintenance Fund
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 414,367 (37,871) 245,437 981,784 970,787 989,466
Total Beginning Fund Balance 414,367 (37,871) 245,437 981,784 970,787 989,466
Revenues
Other Taxes 23,165 31,838 28,390 40,000 30,000 40,000
Service Charge 1,124,537 1,142,513 882,707 847,375 847,375 847,375
Service Charges - - - - - -
Other Revenues 275,864 284,685 876,158 286,382 286,382 261,382
Total Revenues 1,423,566 1,459,036 1,787,255 1,173,757 1,163,757 1,148,757
Transfers In
Transfer from General Fund - 300,000 - - - -
Total Transfers In - 300,000 - - - -
Total Revenues & Transfers In 1,423,566 1,759,036 1,787,255 1,173,757 1,163,757 1,148,757
TOTAL SOURCE OF FUNDS 1,837,933$ 1,721,165$ 2,032,692$ 2,155,541$ 2,134,544$ 2,138,223$
USES OF FUNDS
Expenditures
Salaries and Benefits*864,361$ 382,313$ -$ 15,413$ -$ -$
Operating Expenditures 1,011,443 1,093,415 1,011,905 1,157,586 1,145,078 1,169,722
Fixed Assets - - - - - -
Internal Service Charges - - - 752 - -
Total Expenditures 1,875,804 1,475,728 1,011,905 1,173,751 1,145,078 1,169,722
Transfers Out
Transfer to General Fund - - - - - -
Transfer to Capital Projects - - 50,000 788,000 - -
Transfer to Office Stores - - - - - -
Total Transfers Out - - 50,000 788,000 - -
Total Expenditures & Transfers Out 1,875,804 1,475,728 1,061,905 1,961,751 1,145,078 1,169,722
Ending Fund Balance
Designated - - - - - -
Undesignated (37,871) 245,437 970,787 193,790 989,466 968,501
Total Ending Fund Balance (37,871) 245,437 970,787 193,790 989,466 968,501
TOTAL USE OF FUNDS 1,837,933$ 1,721,165$ 2,032,692$ 2,155,541$ 2,134,544$ 2,138,223$
STATEMENT OF SOURCE AND USE OF FUNDS
* Personnel previously budgeted in the Facilities Maintenance Internal Service Fund are budgeted in the Facilities Maintence
General Fund Staffing Program beginning in FY 2018/19.
D –245
PARKS & PUBLIC WORKS DEPARTMENT
Facilities Maintenance Fund
FY 2020/21 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
Assist in the oversight of all facility improvement projects planned during FY
2020/21, including numerous building improvement projects at the Civic Center
and other Town facilities.
ADA Improvements
Complete two projects to upgrade the upstairs restrooms at the Adult
Recreation Center and one set of downstairs restrooms at the Civic Center to
meet current ADA compliance. Both of these sets of restrooms are in the
configuration from the original designs of the facilities.
Building Modifications
Complete a project to modify two buildings at the Corporation Yard to combine
staff in the Engineering Building, and replace the existing 30+ year old
temporary modular buildings with a new storage facility.
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.
• Monitors and maintains Forbes Mill Footbridge lights.
D –246
PARKS & PUBLIC WORKS DEPARTMENT
Facilities Maintenance Fund
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Facilities & Environmental Services Mgr 0.50 - - - -
Park & Public Works Operation Mgr - 0.50 - - -
Lead Parks & Maint Worker 1.00 1.00 - - -
Parks & Maint Worker 1.00 1.00 - - -
Total Building Maint. FTEs 2.50 2.50 - - -
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Maintenance Assistant 628 628 - - -
TOTAL ANNUAL HOURS 628 628 - - -
FACILITIES MAINTENANCE FUND STAFFING
*Personnel previously budgeted in the Facilities Maintenance Internal Service Fund are budgeted in the Facilities
Maintenance General Fund Staffing Program beginning in FY 2018/19.
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of high priority (safety or service
interruption) requests completed within 3
days:
85%N/A N/A N/A N/A
b.Percentage of facilities requests completed
within 14 days:
77%79%66%69%70%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.132,654 132,654 132,654 132,654 132,654
2.53,062 53,062 53,062 53,062 53,062
3.$2.30 $2.88 $2.30 $3.00 $3.00
4.270 324 376 375 375
* Staff changing methodology. Data not available.
Cost per square foot:
To ensure Town facilities are safe and functional for
public and employee use.
Total square footage of facilities maintained:
Total square footage of facilities maintained per
FTE:
Total number of facility requests received and
completed:
D –247
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
Previously, the West Valley Sanitation District received funding collected through the County of
Santa Clara property tax rolls for non-point source functions. These receipts were then
distributed to three local agencies that support this function: the Town for operating
expenditures incurred through this program’s activities; the West Valley Clean Water Program
(WVCWP); and 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. As of July 2018, WVSD is no longer involved with
the West Valley cities’ Non-Point Source Programs. The West Valley cities have created a JPA, the
West Valley Clean Water Program Authority (WVCWPA) to manage this program.
D –248
PARKS & PUBLIC WORKS DEPARTMENT
Non-Point Source Program
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, collects revenue through tax assessments, and
compiles data, and does 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 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 the 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 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 and through the Town sponsored Adopt a Highway program. Town staff track and
report the amount of debris collected by all these activities to WVCWP.
D –249
PARKS & PUBLIC WORKS DEPARTMENT
Non-Point Source Program
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 109,030 14,895 71,339 159,450 159,450 237,093
Total Beginning Fund Balance 109,030 14,895 71,339 159,450 159,450 237,093
Revenues
Licenses and Permits 30,780 231,323 236,451 231,323 231,323 231,323
Intergovernmental - 903 - - - -
Service Charge - - - - - -
Other Revenues 341,846 345,365 479,901 353,071 353,071 353,071
Total Revenues 372,626 577,591 716,352 584,394 584,394 584,394
Transfers In
Transfer from General Fund - - - 10,000 10,000 -
Total Transfers In - - - 10,000 10,000 -
Total Revenues & Transfers In 372,626 577,591 716,352 594,394 594,394 584,394
TOTAL SOURCE OF FUNDS 481,656$ 592,486$ 787,691$ 753,844$ 753,844$ 821,487$
USES OF FUNDS
Expenditures
Salaries and Benefits 126,005$ 135,347$ 143,545$ 190,474$ 131,670$ 170,983$
Operating Expenditures 334,538 378,905 482,286 383,657 382,110 383,657
Fixed Assets - - - - - -
Internal Service Charges 6,218 6,895 2,410 5,042 2,971 4,437
Total Expenditures 466,761 521,147 628,241 579,173 516,751 559,077
Transfers Out
Transfer to General Fund - - - - - -
Total Transfers Out - - - - - -
Total Expenditures & Transfers Out 466,761 521,147 628,241 579,173 516,751 559,077
Ending Fund Balance
Designated - - - - - -
Undesignated 14,895 71,339 159,450 174,671 237,093 262,410
Total Ending Fund Balance 14,895 71,339 159,450 174,671 237,093 262,410
TOTAL USE OF FUNDS 481,656$ 592,486$ 787,691$ 753,844$ 753,844$ 821,487$
STATEMENT OF SOURCE AND USE OF FUNDS
D –250
PARKS & PUBLIC WORKS DEPARTMENT
Non-Point Source Program
FY 2020/21 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 Volunteer Opportunities
The program will continue to increase volunteer opportunities 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 stormwater 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 Stormwater Municipal
Regional Permit. Staff will continue to monitor and implement strategies
with other Town departments to ensure permit compliance issues are met.
D –251
PARKS & PUBLIC WORKS DEPARTMENT
Non-Point Source Program
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Parks & Maint Worker 0.25 0.25 0.25 0.25 0.25
Public Works Inspector 0.50 0.50 - - -
Senior Administrative Analyst - - 0.25 0.25 0.25
Senior Public Work Inspector - - 0.50 0.50 0.50
Administrative Analyst 0.25 0.25 - - -
Total Non-Point Source FTEs 1.00 1.00 1.00 1.00 1.00
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Maintenance Worker 488 488 - - -
TOTAL ANNUAL HOURS 488 488 - - -
NON-POINT SOURCE PROGRAM STAFFING
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
1,453 530 1,322 1,400 1,400
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.3,825 1,943 3,189 3,500 3,500
2.854 541 580 600 600Number of stormwater inspections:
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 –252
D –253
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 –254
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 2020/21
Annual Special District Assessments
D –255
PARKS & PUBLIC WORKS DEPARTMENT
Landscape & Lighting Districts
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 185,216 199,529 198,570 208,022 208,022 203,645
Total Beginning Fund Balance 185,216 199,529 198,570 208,022 208,022 203,645
REVENUES
Property Tax Assessments 38,370 34,400 38,088 38,220 38,220 38,220
Interest 1,570 2,416 3,550 1,460 1,460 1,460
Other Revenues - 174 - - - -
Total Revenues 39,940 36,990 41,638 39,680 39,680 39,680
TOTAL SOURCE OF FUNDS 225,156$ 236,519$ 240,208$ 247,702$ 247,702$ 243,325$
EXPENDITURES
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 20,707 26,159 27,266 32,817 44,057 32,817
Fixed Assets - 6,870 - 52,500 - -
TOTAL EXPENDITURES 20,707$ 33,029$ 27,266$ 85,317$ 44,057$ 32,817$
Transfers Out
Transfer to General Fund 4,920 4,920 4,920 4,920 - -
Total Transfers Out 4,920 4,920 4,920 4,920 - -
Total Expenditures & Transfers Out 25,627 37,949 32,186 90,237 44,057 32,817
Ending Fund Balance
Designated - - - - - -
Undesignated 199,529 198,570 208,022 157,465 203,645 210,508
Total Ending Fund Balance 199,529 198,570 208,022 157,465 203,645 210,508
TOTAL USE OF FUNDS 225,156$ 236,519$ 240,208$ 247,702$ 247,702$ 243,325$
DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES
D –256
D –257
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 $632 each annually.
The median island landscaping and irrigation are maintained by contract. The street trees and
lighting are also part of the district. The contractor clears trash and weeds from the median
island biweekly. Landscaping plants and irrigation are replaced and repaired as necessary.
BUDGET OVERVIEW
A portion of the fund balance surplus will be recommended for use for improvements such as
drought tolerant plants, pruning, and renovation of the irrigation system.
D –258
PARKS & PUBLIC WORKS DEPARTMENT
Blackwell Drive Assessment District
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 10,231 11,928 12,703 13,488 13,488 13,751
Total Beginning Fund Balance 10,231 11,928 12,703 13,488 13,488 13,751
Revenues
Property Tax Assessments 3,160 3,160 3,160 3,160 3,160 3,160
Interest 92 151 229 50 50 50
Other Revenues - - - - - -
Total Revenues 3,252 3,311 3,389 3,210 3,210 3,210
TOTAL SOURCE OF FUNDS 13,483$ 15,239$ 16,092$ 16,698$ 16,698$ 16,961$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 1,095 2,076 2,144 2,947 2,947 2,947
Fixed Asset - - - 7,500 - -
Total Expenditures 1,095 2,076 2,144 10,447 2,947 2,947
Transfers Out
Transfer to General Fund 460 460 460 460 - -
Total Transfers Out 460 460 460 460 - -
Total Expenditures & Transfers Out 1,555 2,536 2,604 10,907 2,947 2,947
Ending Fund Balance
Designated - - - - - -
Undesignated 11,928 12,703 13,488 5,791 13,751 14,014
Total Ending Fund Balance 11,928 12,703 13,488 5,791 13,751 14,014
TOTAL USE OF FUNDS 13,023$ 14,779$ 15,632$ 16,238$ 16,698$ 16,961$
STATEMENT OF SOURCE AND USE OF FUNDS
D –259
Parks & Public Works Department
KENNEDY MEADOWS ASSESSMENT DISTRICT
FUND 232
FUND PURPOSE
The Kennedy Meadows Assessment District consists of eight 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 $685 per parcel.
The trees, landscaping, irrigation system, trail, and streetlights within the open space area are
maintained by contract. The district, including the paved trail, is cleaned and cleared of trash
biweekly. Irrigation repair and tree replacement are completed as necessary.
BUDGET OVERVIEW
During FY 2020/21, maintenance expenditures are anticipated to remain constant. The fund
balance surplus is held for current or future repair/replacement costs related to the asphalt
pathway, tree trimming, and streetlights.
D –260
PARKS & PUBLIC WORKS DEPARTMENT
Kennedy Meadows Assessment District
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 40,097 42,097 35,233 37,925 37,925 34,035
Total Beginning Fund Balance 40,097 42,097 35,233 37,925 37,925 34,035
Revenues
Property Tax Assessments 10,309 7,535 10,275 10,275 10,275 10,275
Interest 322 447 637 330 330 330
Other Revenues - - - - - -
Total Revenues 10,631 7,982 10,912 10,605 10,605 10,605
TOTAL SOURCE OF FUNDS 50,728$ 50,079$ 46,145$ 48,530$ 48,530$ 44,640$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 7,121 6,466 6,710 7,403 14,495 7,403
Fixed Assets - 6,870 - - - -
Total Expenditures 7,121 13,336 6,710 7,403 14,495 7,403
Transfers Out
Transfer to General Fund 1,510 1,510 1,510 1,510 - -
Total Transfers Out 1,510 1,510 1,510 1,510 - -
Total Expenditures & Transfers Out 8,631 14,846 8,220 8,913 14,495 7,403
Ending Fund Balance
Designated - - - - - -
Undesignated 42,097 35,233 37,925 39,617 34,035 37,237
Total Ending Fund Balance 42,097 35,233 37,925 39,617 34,035 37,237
TOTAL USE OF FUNDS 49,218$ 48,569$ 44,635$ 47,020$ 48,530$ 44,640$
STATEMENT OF SOURCE AND USE OF FUNDS
D –261
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 $230 each.
BUDGET OVERVIEW
A portion of the fund balance surplus will be recommended for improvements such as irrigation,
tree work, lighting repair, landscaping, and repainting the sound wall.
D –262
PARKS & PUBLIC WORKS DEPARTMENT
Gemini Court Assessment District
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 20,392 23,787 26,087 28,920 28,920 31,736
Total Beginning Fund Balance 20,392 23,787 26,087 28,920 28,920 31,736
Revenues
Property Tax Assessments 4,623 4,240 4,600 4,600 4,600 4,600
Interest 178 304 477 150 150 150
Other Revenues - - - - - -
Total Revenues 4,801 4,544 5,077 4,750 4,750 4,750
TOTAL SOURCE OF FUNDS 25,193$ 28,331$ 31,164$ 33,670$ 33,670$ 36,486$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 796 1,634 1,634 1,934 1,934 1,934
Fixed Assets - - - 10,000 - -
Total Expenditures 796 1,634 1,634 11,934 1,934 1,934
Transfers Out
Transfer to General Fund 610 610 610 610 - -
Total Transfers Out 610 610 610 610 - -
Total Expenditures & Transfers Out 1,406 2,244 2,244 12,544 1,934 1,934
Ending Fund Balance
Designated - - - - - -
Undesignated 23,787 26,087 28,920 21,126 31,736 34,552
Total Ending Fund Balance 23,787 26,087 28,920 21,126 31,736 34,552
TOTAL USE OF FUNDS 24,583$ 27,721$ 30,554$ 33,060$ 33,670$ 36,486$
STATEMENT OF SOURCE AND USE OF FUNDS
D –263
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 and cleared of trash biweekly by the contractor. Annual
assessments for the fifteen parcels were decreased from $540 each, to $300 each, effective FY
2006/07.
BUDGET OVERVIEW
During FY 2020/21, maintenance expenditures are anticipated to remain constant. A portion of
the fund balance surplus will be recommended for improvements such as brushing, tree work,
and repairs to the various trails and retaining walls in the district.
D –264
PARKS & PUBLIC WORKS DEPARTMENT
Santa Rosa Heights Assessment District
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 60,128 `62,247 58,477 54,659 54,659 50,847
Total Beginning Fund Balance 60,128 62,247 58,477 54,659 54,659 50,847
Revenues
Property Tax Assessments 4,560 4,650 4,350 4,500 4,500 4,500
Interest 514 752 1,004 500 500 500
Other Revenues - - - - - -
Total Revenues 5,074 5,402 5,354 5,000 5,000 5,000
TOTAL SOURCE OF FUNDS 65,202$ 67,649$ 63,831$ 59,659$ 59,659$ 55,847$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 2,295 8,512 8,512 8,812 8,812 8,812
Fixed Assets - - - 10,000 - -
Total Expenditures 2,295 8,512 8,512 18,812 8,812 8,812
Transfers Out
Transfer to General Fund 660 660 660 660 - -
Total Transfers Out 660 660 660 660 - -
Total Expenditures & Transfers Out 2,955 9,172 9,172 19,472 8,812 8,812
Ending Fund Balance
Designated - - - - - -
Undesignated 62,247 58,477 54,659 40,187 50,847 47,035
Total Ending Fund Balance 62,247 58,477 54,659 40,187 50,847 47,035
TOTAL USE OF FUNDS 64,542$ 66,989$ 63,171$ 58,999$ 59,659$ 55,847$
STATEMENT OF SOURCE AND USE OF FUNDS
D –265
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 $295 per
parcel, continuing the decrease in original property assessments as agreed to by the property
owners and the Town Council in FY 2001/02.
The district upkeep includes, trees, landscaping, irrigation systems, trail, emergency access, and
a retaining wall along Blossom Hill Road. The open space areas are maintained by contract, with
cleanup, trash control, irrigation maintenance, and landscape maintenance completed biweekly.
BUDGET OVERVIEW
During FY 2020/21 maintenance expenditures are anticipated to remain constant. A portion of
the fund balance surplus will be recommended for improvements such as landscaping, irrigation,
and pathway lighting.
D –266
PARKS & PUBLIC WORKS DEPARTMENT
Vasona Heights Assessment District
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 42,596 45,148 49,175 54,233 54,233 52,946
Total Beginning Fund Balance 42,596 45,148 49,175 54,233 54,233 52,946
Revenues
Property Tax Assessments 9,750 8,865 9,735 9,735 9,735 9,735
Interest 357 574 899 340 340 340
Other Revenues - 174 - - - -
Total Revenues 10,107 9,613 10,634 10,075 10,075 10,075
TOTAL SOURCE OF FUNDS 52,703$ 54,761$ 59,809$ 64,308$ 64,308$ 63,021$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 6,125 4,156 4,146 7,214 11,362 7,214
Fixed Assets - - - 10,000 - -
Total Expenditures 6,125 4,156 4,146 17,214 11,362 7,214
Transfers Out
Transfer to General Fund 1,430 1,430 1,430 1,430 - -
Total Transfers Out 1,430 1,430 1,430 1,430 - -
Total Expenditures & Transfers Out 7,555 5,586 5,576 18,644 11,362 7,214
Ending Fund Balance
Designated - - - - - -
Undesignated 45,148 49,175 54,233 45,664 52,946 55,807
Total Ending Fund Balance 45,148 49,175 54,233 45,664 52,946 55,807
TOTAL USE OF FUNDS 51,273$ 53,331$ 58,379$ 62,878$ 64,308$ 63,021$
STATEMENT OF SOURCE AND USE OF FUNDS
D –267
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 $175 each, effective FY 2010/11.
The district comprises 34 residences and a small park of approximately 0.26 acres. The landscape
contract for this assessment district includes maintenance of the lawn, trees, shrubs, and
irrigation system. The park is cleared of trash, mowed, and cleaned weekly.
BUDGET OVERVIEW
A portion of the fund balance surplus will be recommended for improvements such as benches,
turf replacement, and drought-resistant landscaping.
D –268
PARKS & PUBLIC WORKS DEPARTMENT
Hillbrook Drive Assessment District
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignatged 11,888 14,438 17,011 18,913 18,913 20,446
Total Beginning Fund Balance 11,888 14,438 17,011 18,913 18,913 20,446
Revenues
Property Tax Assessments 5,968 5,950 5,968 5,950 5,950 5,950
Interest 107 188 304 90 90 90
Other Revenues - - - - - -
Total Revenues 6,075 6,138 6,272 6,040 6,040 6,040
TOTAL SOURCE OF FUNDS 17,963$ 20,576$ 23,283$ 24,953$ 24,953$ 26,486$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 3,275 3,315 4,120 4,507 4,507 4,507
Fixed Assets - - - 15,000 - -
Total Expenditures 3,275 3,315 4,120 19,507 4,507 4,507
Transfers Out
Transfer to General Fund 250 250 250 250 - -
Total Transfers Out 250 250 250 250 - -
Total Expenditures & Transfers Out 3,525 3,565 4,370 19,757 4,507 4,507
Ending Fund Balance
Designated - - - - - -
Undesignated 14,438 17,011 18,913 5,196 20,446 21,979
Total Ending Fund Balance 14,438 17,011 18,913 5,196 20,446 21,979
TOTAL USE OF FUNDS 17,713$ 20,326$ 23,033$ 24,703$ 24,953$ 26,486$
STATEMENT OF SOURCE AND USE OF FUNDS
Library Department
This Page Intentionally Left Blank
D – 269
Library Department
DEPARTMENT PURPOSE
The Los Gatos 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 providing ample access to historical materials, providing
quality volunteer programs and trainings, and partnering with local schools and NUMU.
• 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 Library Department budget consists of the Library Administration, Adult Services, Youth
Services, and Circulation/System Administrative Programs, as well as five Trust Funds: Library
Trust Fund, History Project Trust Fund (included in the Library Trust Fund), the Clelles Ness
Trust Fund, Susan McClendon Trust Fund, and the Barbara Jones Cassin Trust Fund. Previous
Library Department budgets contained a fifth Program, Cataloging and Acquisitions, that has
now been rolled into Circulation/Systems Administration for ease of tracking overlapping
functions.
The FY 2020/21 budget remains relatively status quo with minor increases in materials budgets
and library consortium membership fees do to expected and routine cost increases from
publishers.
D – 270
LIBRARY DEPARTMENT
Customer-focused procedures such as automatically renewing library materials and allowing
patrons to replace lost and damaged items with new identical copies that they have sourced
themselves has led to a reduction in revenue from fines over the past year. As this has now
crossed a threshold where collecting overdue fines now costs more in staff time than it brings
in as revenue, the FY2020/21 fines and fee schedule removed overdue fees for all patrons.
Personnel hours for temporary and part-time staff have been reallocated within the
Department to give greater emphasis to front-end customer service and provide more
adequate substitute staffing, while reducing staffing needs on the back-end due to Department
efficiencies. The result is a minor decrease in FTE costs. The Library has significant technology
replacements this year, including scheduled replacement of all staff and public computers,
broadband switches and firewalls, and the Library’s laptop vending machine. These
replacements are captured in the budget of the IT Department. Capital Improvement Program
projects include carpet replacement in the Children’s room, and improvements to the front
circulation and lobby area of the Library.
D – 271
LIBRARY DEPARTMENT
ACCOMPLISHMENTS
Core Goals Accomplishments
Good Governance
Ensure
responsive,
accountable and
collaborate
government
• Provided opportunities for staff at all levels to engage in professional
training and cross training.
• Expanded the Student Success Initiative to include all public elementary
schools in Los Gatos; with this expansion, all Los Gatos students in public
schools now can use their school student ID number to automatically
access public library services
• Applied for multiple grants totaling over $19,000 in revenue
• Strengthened partnerships with Los Gatos High School and Fisher Middle
School by providing teacher resource open houses at the library and
outreach directly to teachers during school training days.
• With assistance from Finance department, piloted online payment options
for library patrons.
• Made a thorough assessment of subscription database use to prioritize
expenditures.
• With assistance of IT department, replaced patron self-check machines for
expedited material check out.
Civic Enrichment
Foster
opportunities for
citizen
involvement, and
cultural,
recreational and
individual
enrichment
• Introduced “Retrotech” program to allow the community to digitize old
media formats free of charge.
• Introduced live online programming including streaming programs,
Facebook Live storytimes, and online tech and computer training.
• Substantially increased programs for adults including technology tutoring
and instruction for adults twice a week, increased lectures and
informational talks, author visits, hands-on arts programming, and other
areas of interest.
• Partnered with Girls Who Code to host computer coding instruction to
young women and girls.
• Expanded bilingual Spanish/English story time programs from twice a
month to weekly.
• Improved the Library’s non-English language collection by adding 750 new
Spanish titles and 200 titles in other languages to meet increasing demand
by the changing needs of residents.
• Increased hands-on manipulative and social interaction areas and
programs in the children’s area
• Introduced “Zipbooks” to fulfill patron requests for materials by direct
delivery to their homes through a program financially sponsored by the
State Library.
• Continued to incorporate new early learning technologies to enhance
storytimes and create multi-media, multi-sensory experiences.
D – 272
LIBRARY DEPARTMENT
ACCOMPLISHMENTS
Civic Enrichment
Foster
opportunities for
citizen
involvement, and
cultural,
recreational and
individual
enrichment
• 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.
• Conducted monthly outreach events to Seniors living in residential senior
housing centers.
• Continued to provide local history volunteer trainings and a volunteer
appreciation event for all Library volunteers.
• Continued delivering services in the community using our Chartreuse
Caboose Library bicycle and trailer.
Public Safety
Ensure public
safety through
proactive
community
policing, affective
emergency
response, and
community-wide
emergency
preparedness
• Changed afterschool programming model with teens to offer engaging
content and decrease behavioral concerns.
• Updated procedures for communicating and working directly with parents
for improving in-library behavior for problem teens.
• Collaborated with the Los Gatos Monte Sereno Police Department to
practice live evacuation drills with the public in the building.
• Began working with stakeholders at PG&E to evaluate the potential of
utilizing the Library building as a community resource center during power
outages.
D – 273
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.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Intergovernmental Revenues -$ 22,200$ 12,482$ -$ 19,219$ -$
Service Charge 3,436 - - - - -
Fines & Forfeitures 36,103 14,496 9,421 11,000 3,000 3,000
Other Revenues 42,207 35,206 35,055 37,500 37,500 35,000
TOTAL REVENUES 81,746$ 71,902$ 56,958$ 48,500$ 59,719$ 38,000$
Transfers In
Transfers In from Trust(s)- - - - - -
Transfers In from General Fund - - - - - -
Total Transfers In - - - - - -
TOTAL REVENUES & TRANSFERS IN 81,746$ 71,902$ 56,958$ 48,500$ 59,719$ 38,000$
EXPENDITURES
Salaries and Benefits 1,586,805$ 1,585,959$ 1,723,838$ 2,056,264$ 1,813,210$ 2,060,308$
Operating Expenditures 339,664 335,311 317,543 348,700 349,355 344,800
Fixed Assets - - - - - -
Internal Service Charges 582,209 588,701 429,606 529,046 528,346 541,401
TOTAL EXPENDITURES 2,508,678$ 2,509,971$ 2,470,987$ 2,934,010$ 2,690,911$ 2,946,509$
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Adopted
PROGRAM
Administration 426,637$ 439,522$ 451,284$ 466,219$ 468,392$ 514,552$
Adult Services 637,465 576,961 548,199 689,115 558,268 653,511
Youth Services 513,667 533,279 502,330 606,412 506,214 599,182
Acquisitions & Cataloging 121,183 123,873 - - - -
Circulation Services 809,726 836,336 969,174 1,172,264 1,158,037 1,179,264
Operating Grant - 19,045 22,632 1,000 24,393 -
TOTAL EXPENDITURES 2,508,678$ 2,509,971$ 2,470,987$ 2,934,010$ 2,690,911$ 2,946,509$
DEPARTMENTAL SUMMARY OF REVENUES AND EXPENDITURES
D – 274
LIBRARY DEPARTMENT
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Library Director 1.00 1.00 1.00 1.00 1.00
Division Manager 2.00 2.00 2.00 2.00 2.00
Librarian 3.00 3.00 3.00 3.00 3.00
Library Technology Specialist 1.00 1.00 2.00 2.00 2.00
Library Assistant 1.00 1.00 - - -
Library Specialist 0.75 0.75 1.75 1.75 1.75
Customer Service Supervisor 1.00 1.00 - - -
Customer Service Specialist 1.50 1.50 1.75 1.75 1.75
Sr Library Page 1.00 1.00 1.00 1.00 1.00
TOTAL PROGRAM FTE's 12.25 12.25 12.50 12.50 12.50
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Hours Funded Funded Funded Funded Proposed
Librarian 1,112 1,112 - - -
Librarian Temp - - 350 350 350
Library Clerk 1,050 1,300 1,050 1,050 800
Library Page 6,344 6,344 6,344 6,344 5,300
CSO Intern 1,040 1,040 - - -
Library Assistant - - 800 800 1,200
Library Teen Services Specialist - - 750 750 800
TOTAL ANNUAL HOURS 9,546 9,796 9,294 9,294 8,450
DEPARTMENT STAFFING
D – 275
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 Arts and Culture Commission.
BUDGET OVERVIEW
The FY 2020/21 Administration budget reflects continued enhanced services within the Library
building to provide the best customer experience and the best value for the community.
Included in the budget this year are ongoing expenditures to maintain or replace heavily used
furniture and upholstery as the Library moves into its ninth year of being open to the public.
The Library Administration Program will continue to focus on maximizing the efficiency of the
Library building and researching effective service models to meet the expectations of the
community. 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
organization. In addition, Library staff continues to work to improve partnerships and outreach
within our community.
D – 276
LIBRARY DEPARTMENT
Library Administration
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Intergovernmental Revenue -$ -$ -$ -$ -$ -$
Service Charges 11 - - - - -
Fines & Forfeitures - - - - - -
Other Revenues 7,207 206 55 - - -
TOTAL REVENUES 7,218$ 206$ 55$ -$ -$ -$
Transfers In
Transfers In from Trust(s)- - - - - -
Total Transfers In - - - - - -
TOTAL REVENUES & TRANSFERS IN 7,218$ 206$ 55$ -$ -$ -$
EXPENDITURES
Salaries and Benefits 294,200$ 297,608$ 317,795$ 336,313$ 337,962$ 384,387$
Operating Expenditures 28,275 41,195 41,368 44,700 45,355 45,000
Fixed Assets - - - - - -
Internal Service Charges 104,162 100,719 92,121 85,206 85,075 85,165
TOTAL EXPENDITURES 426,637$ 439,522$ 451,284$ 466,219$ 468,392$ 514,552$
SUMMARY OF REVENUES AND EXPENDITURES
D – 277
LIBRARY DEPARTMENT
Library Administration
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
Good Governance
Ensure
responsive,
accountable and
collaborate
government
Emergency Community Resources Services
Evaluate options for using the Library building as a community resource
center in emergency situations such as planned safety power outages, or
as a heating center and cooling center during weather events.
Collaborate with the Parks and Public Works Department and PG&E to
identify funding sources for generator infrastructure for the Library
building.
Quality Public
Infrastructure
Maintain the
condition and
availability of
public facilities,
transportation
systems, and
other public
infrastructure
Long-term building maintenance
Reupholster or replace furniture in the Library due to wear and tear.
Replace carpet in the Children’s room.
Develop a 20-year replacement and upkeep plan for long-term building
maintenance.
Make improvements to the circulation area of the Library including
installing sound mitigation measures in the lobby and efficiency
improvements to the front desk.
Community
Character
Preserve and
enhance the
appearance
character and
environment
quality of the
community
Arts Commission Projects
Assist the Arts and Culture Commission in completing the Gateway
project.
Assist the Arts and Cultures Commission in developing an art plan for
unpainted portions the Forbes Mill Footbridge
D – 278
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, Arts and Culture 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 – 279
LIBRARY DEPARTMENT
Library Administration
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Library Director 1.00 1.00 1.00 1.00 1.00
Division Manager 0.40 0.40 0.40 0.40 0.40
Library Specialist 0.25 0.25 0.25 0.25 0.25
Total Administration FTEs 1.65 1.65 1.65 1.65 1.65
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Funded Funded Funded Funded Proposed
CSO Intern 1,040 - - - -
Library Teen Services Specialist - 1,040 - - -
Total Annual Hours 1,040 1,040 - - -
ADMINISTRATION PROGRAM STAFFING
D – 280
LIBRARY DEPARTMENT
Library Administration
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of customers stating the
Library is a significant or very
significant part of their community
experience:
92%88%89%90%90%
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.301,783 276,533 266,537 270,000 270,000
2.5,845 6,990 6,632 6,800 6,800
3.831,798 845,415 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
4.5468*11,288 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
Social media interactions:
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:
D – 281
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 2020/21 Adult Services Program budget has a modest increase to cover the routine cost
of materials. The Library continues to evaluate and add new programming for adults with a
large focus on technology tutoring, arts programming, author visits and educational workshops.
Direct outreach programs to senior residential communities and partnerships with local
business have strengthened the Library’s presence in the community. The Library will continue
to evaluate and curate a meaningful print and electronic media collection using data from
collection management software, in response to changing community needs.
D – 282
LIBRARY DEPARTMENT
Adult Services
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Intergovernmental Revenue -$ -$ -$ -$ -$ -$
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues 9,836 9,836 35,000 35,000 35,000 35,000
TOTAL REVENUES 9,836$ 9,836$ 35,000$ 35,000$ 35,000$ 35,000$
Transfers In
Transfers In from Trust(s)- - - - - -
Total Transfers In - - - - - -
TOTAL REVENUES & TRANSFERS IN 9,836$ 9,836$ 35,000$ 35,000$ 35,000$ 35,000$
EXPENDITURES
Salaries and Benefits 365,112$ 323,458$ 308,250$ 439,535$ 309,047$ 407,959$
Operating Expenditures 165,326 145,931 147,240 164,100 164,100 160,000
Fixed Assets - - - - - -
Internal Service Charges 107,027 107,572 92,709 85,480 85,121 85,552
TOTAL EXPENDITURES 637,465$ 576,961$ 548,199$ 689,115$ 558,268$ 653,511$
SUMMARY OF REVENUES AND EXPENDITURES
D – 283
LIBRARY DEPARTMENT
Adult Services
FY 2020/21 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) 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
Increase Programming
Continue to refine and develop best practices for outreach programming.
Pilot new programs for adults in the community, seek additional
volunteers with reliant subject expertise to assist with new programs, and
expand opportunities for community interest groups to use meet in
Library spaces.
Alternate Collection Services
Continue the State-sponsored Zipbook service to the general public,
increasing number of titles requested by the public which are filled.
Bolster non-English print resources to meet changing community
demands.
Introduce non-traditional materials for lending for public use, including
seed libraries and activity kits.
Historical Digitization
Working in partnership with California Revealed, a project of the
California State Library, digitize historical materials and make them
keyword searchable to the public.
D – 284
LIBRARY DEPARTMENT
Adult Services
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Town Librarian - - - - -
Division Manager 0.30 0.30 0.30 0.30 0.30
Librarian 1.50 1.50 1.50 1.50 1.50
Library Technology Specialist 0.10 0.10 0.70 0.70 0.70
Library Assistant 0.60 0.60 - - -
Library Specialist 0.15 0.15 - - -
Sr Library Page 0.60 0.60 0.60 0.60 0.60
Total Adult Services FTEs 3.25 3.25 3.10 3.10 3.10
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Funded Funded Funded Funded Proposed
Librarian 556 556 - - -
Librarian Temp - 125 175 175 175
Library Assistant - - 400 400 600
Library Teen Specialist - - - 750 800
Total Annual Hours 556 681 575 1,325 1,575
ADULT SERVICES PROGRAM STAFFING
D – 285
LIBRARY DEPARTMENT
Adult Services
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a.Percentage of collection that requires evaluation:18%13%Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
2.
a. Percentage of customers rating Library programs as
good/excellent:
90%87%92%90%90%
3.
a.Percentage of customers rating staff interactions as
good/excellent:
92%94%92%90%90%
b.Percentage of public contacts received by library that
are online vs. through the doors:
38%70%Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.14,915 11,148 9,146 10,000 10,000
2.0.48 0.40 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
3.54 54 54 54 54
4.128 99 354 450 500
5.1,576 835 3,494 3,700 4,000
6.13 8 26 30 30
7.544 207 1,310 1,400 1,400
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.
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:
Reference questions per capita:
Number of adult reference questions received:
D – 286
D – 287
Library Department
YOUTH SERVICES
PROGRAM 7202
PROGRAM PURPOSE
Youth Services supports youth of all ages (newborn babies through high school students) 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 2020/21 Youth Services budget contains a minor increase to absorb routine and
expected cost increases from publishers. Staff will continue to target new and innovative
concepts in program development with a focus on family reading. The Youth Services team will
engage in outreach activities, serving the community in the schools and in partnership with
local businesses. Families will continue to enjoy early learning technology in the Children’s
room with Osmo tablets as well as a manipulative play area centered around the children’s
Discovery Table. Collection funding will be used strategically, eliminating the 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.
D – 288
LIBRARY DEPARTMENT
Youth Services
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Intergovernmental Revenue -$ -$ -$ -$ -$ -$
Service Charges - - - - - -
Fines & Forfeitures - - - - - -
Other Revenues 14,066 14,066 - 2,500 2,500 -
TOTAL REVENUES 14,066$ 14,066$ -$ 2,500$ 2,500$ -$
Transfers In
Transfers In from Trust(s)- - - - - -
Total Transfers In - - - - - -
TOTAL REVENUES & TRANSFERS IN 14,066$ 14,066$ -$ 2,500$ 2,500$ -$
EXPENDITURES
Salaries and Benefits 345,897$ 366,914$ 358,072$ 466,172$ 366,235$ 453,523$
Operating Expenditures 61,629 56,761 51,280 54,700 54,700 60,000
Fixed Assets - - - - - -
Internal Service Charges 106,141 109,604 92,978 85,540 85,279 85,659
TOTAL EXPENDITURES 513,667$ 533,279$ 502,330$ 606,412$ 506,214$ 599,182$
SUMMARY OF REVENUES AND EXPENDITURES
D – 289
LIBRARY DEPARTMENT
Youth Services
FY 2020/21 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 and Programs
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.
Bilingual Spanish/English storytime will continue to be offered weekly.
Bilingual Chinese/English storytime will be piloted once a month.
STEAM Programming and Social Learning
Provide early literacy technology to stimulate learning, social interaction,
and creativity in the Children’s Room by offering Osmo tablets and
manipulative stations.
Continue STEAM programming for school-aged visitors, utilizing tools such
as the Ozobots, 3D printers, Lego Mindstorms, and other technology
platforms.
Pilot social play areas in underutilized corners of the Children’s room.
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 partnership with Los Gatos High and Fisher Middle School by
making new student ID cards useable as Library cards.
D – 290
LIBRARY DEPARTMENT
Youth Services
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.
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, Fisher Middle School
students, and all public elementary schools in Los Gatos as part of the Student Success
Initiative.
D – 291
LIBRARY DEPARTMENT
Youth Services
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Division Manager 0.50 0.50 0.50 0.50 0.50
Librarian 1.50 1.50 1.50 1.50 1.50
Library Assistant 0.40 0.40 - - -
Library Technology Specialist - - 0.40 0.40 0.40
Library Specialist 0.10 0.10 - - -
Sr Library Page 0.40 0.40 0.40 0.40 0.40
Total Youth Services FTEs 2.90 2.90 2.80 2.80 2.80
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Funded Funded Funded Funded Proposed
Librarian 556 556 - - -
Librarian Temp - 125 175 175 175
Library Assistant - - 400 400 600
Library Teen Specialist - - 750 - -
Total Annual Hours 556 681 1,325 575 775
YOUTH SERVICES PROGRAM STAFFING
D – 292
LIBRARY DEPARTMENT
Youth Services
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.
a. Percentage of customers rating youth
programs as good/excellent:
94%95%94%95%95%
2.
a.Percentage of customers rating interactions
as good/excellent:
93%95%94%95%95%
b.Percentage of collection that requires
evaluation:7%9%Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.341 423 428 600 650
2.22,679 21,934 20,971 22,000 23,000
3.17,470 15,243 18,292 19,000 19,000
4.79 74 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
5.20,556 20,653 21,008 20,500 20,500
6.Number of youth outreach programs:7 5 5 6 6
7.Total attendance at youth outreach programs:1,020 783 853 900 900
Number of teens using library resources per
year:
Hours of public service per week at youth
services desk:
Total attendance at youth programs:
Assure the delivery of quality service to youth
customers.
Annual number of youth reference questions
received:
Number of youth programs per year:
Provide a variety of programs throughout the
year that foster curiosity and community
connection.
D – 293
Library Department
ACQUISITIONS AND CATALOGING
PROGRAM 7203
PROGRAM PURPOSE
The Acquisitions and Cataloging Program was combined with the Circulation and Systems
Administration Program (7204) in FY2018/19 to simplify accounting for largely similar
programs.
BUDGET OVERVIEW
All funds previously budgeted to this Program have been incorporated into Program 7204
Circulation and System Administration.
D – 294
LIBRARY DEPARTMENT
Acquisitions and Cataloging
FY 2020/21 KEY PROJECTS
Core Goals Key Projects
See Program 7204 Circulation and Systems Administration.
KEY PROGRAM SERVICES
See Program 7204 Circulation and Systems Administration
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Intergovernmental Revenue -$ -$ -$ -$ -$ -$
Service Charges - - - - - -
Fines & Forfeitures 3,559 1,762 (37) - - -
Other Revenues - - - - - -
TOTAL REVENUES 3,559$ 1,762$ (37)$ -$ -$ -$
EXPENDITURES
Salaries and Benefits 28,381$ 28,626$ -$ -$ -$ -$
Operating Expenditures - - - - - -
Fixed Assets - - - - - -
Internal Service Charges 92,802 95,247 - - - -
TOTAL EXPENDITURES 121,183$ 123,873$ -$ -$ -$ -$
SUMMARY OF REVENUES AND EXPENDITURES
D – 295
LIBRARY DEPARTMENT
Acquisitions and Cataloging
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Library Specialist 0.25 0.25 - - -
Total Technical Services FTEs 0.25 0.25 - - -
ACQUISITIONS & CATALOGING PROGRAM STAFFING
D – 296
D – 297
Library Department
CIRCULATION AND SYSTEMS ADMINISTRATION
PROGRAM 7204
PROGRAM PURPOSE
The Circulation and Systems Administration Program provides customers with access to a broad
range of up-to-date library materials and technology as well as enables customers to access
library materials for use outside the Library. This Program additionally manages all automated
services and technology systems. Circulation/System Administration’s core services are to
manage the circulation process, acquisition of new materials, 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 2020/21 Circulation/Systems Administration budget shows a minor decrease for general
expenditures as the Library renegotiated vendor service agreements and made careful
evaluations of database subscription use. The Library continues to introduce new technologies
that meet patrons’ expectations for fast, reliable access to information and Library resources as
well as continues to implement system enhancements, provide support, and expand print
resources and eBooks collections. 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.
D – 298
LIBRARY DEPARTMENT
Circulation and Systems Administration
FY 2020/21 KEY PROJECTS
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
REVENUES
Intergovernmental Revenue -$ -$ -$ -$ -$ -$
Service Charges 3,425 - - - - -
Fines & Forfeitures 32,544 12,734 9,458 11,000 3,000 3,000
Other Revenues 11,098 11,098 - - - -
TOTAL REVENUES 47,067$ 23,832$ 9,458$ 11,000$ 3,000$ 3,000$
Transfers In
Transfers In from Trust(s)- - - - - -
Total Transfers In -$ -$ -$ -$ -$ -$
TOTAL REVENUES & TRANSFERS IN 47,067$ 23,832$ 9,458$ 11,000$ 3,000$ 3,000$
EXPENDITURES
Salaries and Benefits 553,215$ 569,353$ 739,721$ 814,244$ 799,966$ 814,439$
Operating Expenditures 84,434 91,424 77,655 85,200 85,200 79,800
Fixed Assets - - - - - -
Internal Service Charges 172,077 175,559 151,798 272,820 272,871 285,025
TOTAL EXPENDITURES 809,726$ 836,336$ 969,174$ 1,172,264$ 1,158,037$ 1,179,264$
SUMMARY OF REVENUES AND EXPENDITURES
Core Goals Key Projects
Good Governance
Ensure responsive,
accountable, and
collaborative
government
IT Replacement
The Library will replace all public and staff computers as part of our
regular planned replacement schedule. Some broadband switches and
firewalls will also be replaced during this fiscal year.
Training Databases
The Library plans to expand its Niche Academy training database to now
include public use. This software allows real time updates to training
modules that interface with library digital resources and public use
applications.
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 expand the use of Electronic Data Interchange (EDI) to
the Library ILS to streamline ordering, receiving materials, and
processing invoices.
D – 299
LIBRARY DEPARTMENT
Circulation and Systems 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.
• Maintains online catalog to assure customer access to Library materials.
• Acquires Library materials.
• Maintains Library collections, including shelving of materials.
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Division Manager 0.80 0.80 0.80 0.80 0.80
Library Specialist - - 1.50 1.50 1.50
Library Technology Specialist 0.90 0.90 0.90 0.90 0.90
Customer Service Supervisor 1.00 1.00 - - -
Customer Service Specialist 1.50 1.50 1.75 1.75 1.75
Total Circulation/System FTEs 4.20 4.20 4.95 4.95 4.95
2016/17 2017/18 2018/19 2019/20 2020/21
Temporary Staff Funded Funded Funded Funded Proposed
Library Clerk 1,050 1,050 1,050 1,050 800
Library Page 6,344 6,344 6,344 6,344 5,300
Senior Library Page - - - - -
Total Annual Hours 7,394 7,394 7,394 7,394 6,100
CIRCULATION / SYSTEMS ADMINISTRATION PROGRAM STAFFING
D – 300
LIBRARY DEPARTMENT
Circulation and Systems Administration
Performance Objectives and Measures
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.86%88%84%85%85%
2.
a.Number of databases available online:57 38 24 21 24
b.Number of electronic materials available for
loan:*
816,460 818,000 795,398 801,000 805,000
c.Number of items in-house for loan:137,872 160,880 121,091 122,400 123,000
Activity and Workload Highlights
2016/17
Actual
2017/18
Actual
2018/19
Actual
2019/20
Estimated
2020/21
Planned
1.503,561 487,321 477,448 480,000 480,000
2.3,801 4,865 4,312 4,100 4,000
3.20,957 30,257 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
4.54 54 54 54 54
5.Number of Library Card holders:31,235 32,888 28,526 31,200 33,000
6.141 143 104 118 130
7.Use of public internet computers:25,357 25,616 34,406 32,090 32,000
8.6,523 19,831 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
9.Number of Suggestions for Purchase processed:656 955 Measure
Discontinued
Measure
Discontinued
Measure
Discontinued
10.Circulation of non-English materials:na na 1,272 4300 8000
11.Electronic Content Use:*na na 81,421 92000 105000
* 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.
Total Circulation:
Assure access to library online services.
Percentage of customers stating the Library has a
good/excellent collection:
Number of items ordered and received:
Number of periodical subscriptions received
and processed:
Number of new patrons registered:
Hours of public service per week at circulation:
Number of holds processed:
D – 301
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 $70,000 to the Library during the
past fiscal year. This funding has provided support for community programs, family programs,
teen programs, Summer Reading events and prizes, and a growing collection of new bestselling
books and movies. In addition, lease payments to the Town from the Friends of the Library
Bookstore help to support ongoing Library operations.
This fund also captures small donations made by Library supporters to purchase books or
materials, often in memory of someone’s passing.
A portion of this fund will be budgeted for FY 2020/21 in support of Library programming and
specialized collections.
The History Project Trust Fund tracked monies received by History Services, a Library service
that originally began as a project funded by grants and donations. These Trust Funds are mostly
royalties, digitization and licensing fees for proprietary images, and donations received.
D – 302
LIBRARY DEPARTMENT
Library Trust Fund
The money received from donated royalties has been decreasing to almost zero over the past
years, and the FY 2020/21 budget anticipates limited to no contributions. Money received from
the licensing of digital images is not a stable funding source and is not be relied upon to offset
the support and hosting fees for the history website. All future revenues are tracked in the
Library Trust Fund.
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 46,145 50,997 54,772 69,583 69,583 43,133
Total Beginning Fund Balance 46,145 50,997 54,772 69,583 69,583 43,133
Revenues
Interest 590 725 1,627 550 550 500
Other Revenues 79,760 74,315 82,213 75,000 70,000 70,000
Total Revenues 80,350 75,040 83,840 75,550 70,550 70,500
TOTAL SOURCE OF FUNDS 126,495$ 126,037$ 138,612$ 145,133$ 140,133$ 113,633$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures 75,498 71,265 69,029 100,000 97,000 90,500
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
Total Expenditures 75,498 71,265 69,029 100,000 97,000 90,500
Transfers Out
Transfer to General Fund - - - - - -
Transfer to History Trust Fund - - - - - -
Total Transfers Out - - - - - -
TOTAL EXPENDITURES & TRANSFERS OUT 75,498 71,265 69,029 100,000 97,000 90,500
Ending Fund Balance
Designated - - - - - -
Undesignated 50,997 54,772 69,583 45,133 43,133 23,133
Total Ending Fund Balance 50,997 54,772 69,583 45,133 43,133 23,133
TOTAL USE OF FUNDS 126,495$ 126,037$ 138,612$ 145,133$ 140,133$ 113,633$
STATEMENT OF SOURCE AND USE OF FUNDS
D – 303
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.
BUDGET OVERVIEW
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 were held in a Library Building Fund to be used for the purchase of items
for the current Library building, such as furniture, shelving, and equipment. A large portion of
this trust was expended in FY 15/16 for the purchase of the automated materials handling
system, and roughly $21,000 was expended in FY 2018/19 to fund the installation of sound
mitigating doors to the teen room. The remaining balance of the account will be directed in FY
2020/21 to improvements in the circulation and lobby area of the Library including installation
of additional sound-mitigation enhancements in the lobby area and improvements to the front
desk.
D – 304
LIBRARY DEPARTMENT
Clelles Ness Trust Fund
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 40,742 41,087 41,603 88,679 21,291 21,291
Total Beginning Fund Balance 40,742 41,087 41,603 88,679 21,291 21,291
Revenues
Interest 345 516 736 - - -
Other Revenues - - - - - -
Total Revenues 345$ 516$ 736$ -$ -$ -$
TOTAL SOURCE OF FUNDS 41,087$ 41,603$ 42,339$ 88,679$ 21,291$ 21,291$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures - - - - - -
Fixed Assets - - 21,048 20,755 - 20,755
Internal Service Charges - - - - - -
Total Expenditures - - 21,048 20,755 - 20,755
Ending Fund Balance
Designated - - - - - -
Undesignated 41,087 41,603 21,291 67,924 21,291 536
Total Ending Fund Balance 41,087 41,603 21,291 67,924 21,291 536
TOTAL USE OF FUNDS 41,087$ 41,603$ 42,339$ 88,679$ 21,291$ 21,291$
STATEMENT OF SOURCE AND USE OF FUNDS
D – 305
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.
Keeping with the wishes of the Ms. McClendon, 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
A small portion of the fund comprising only the interest earned from the prior year has been
budgeted in FY 2020/21 for the enhancement of children’s specialty collections.
D – 306
LIBRARY DEPARTMENT
Susan McClendon Trust Fund
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 88,662 89,412 84,505 98,020 86,000 84,200
Total Beginning Fund Balance 88,662 89,412 84,505 98,020 86,000 84,200
Revenues
Interest 750 1,079 1,495 700 700 700
Other Revenues - - - - - -
Total Revenues 750$ 1,079$ 1,495$ 700$ 700$ 700$
TOTAL SOURCE OF FUNDS 89,412$ 90,491$ 86,000$ 98,720$ 86,700$ 84,900$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures - 5,986 - 2,500 2,500 700
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
Total Expenditures -$ 5,986$ -$ 2,500$ 2,500$ 700$
Ending Fund Balance
Designated - - - - - -
Undesignated 89,412 84,505 86,000 96,220 84,200 84,200
Total Ending Fund Balance 89,412 84,505 86,000 96,220 84,200 84,200
TOTAL USE OF FUNDS 89,412$ 90,491$ 86,000$ 98,720$ 86,700$ 84,900$
STATEMENT OF SOURCE AND USE OF FUNDS
D – 307
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. An exhibit showing these works was sponsored by the Library in August 2008 and
again in 2018. 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
A small portion of the fund comprising only the interest earned from the prior year has been
budgeted in FY 2020/21 for the enhancement the collection per the trust agreements.
D – 308
LIBRARY DEPARTMENT
Barbara Jones Cassin Trust Fund
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Fund Balance
Designated -$ -$ -$ -$ -$ -$
Undesignated 347,522 350,461 354,865 521,252 361,142 354,042
Total Beginning Fund Balance 347,522 350,461 354,865 521,252 361,142 354,042
Revenues
Interest 2,939 4,404 6,277 2,900 2,900 2,900
Other Revenues - - - - - -
Total Revenues 2,939$ 4,404$ 6,277$ 2,900$ 2,900$ 2,900$
TOTAL SOURCE OF FUNDS 350,461$ 354,865$ 361,142$ 524,152$ 364,042$ 356,942$
USES OF FUNDS
Expenditures
Salaries and Benefits -$ -$ -$ -$ -$ -$
Operating Expenditures - - - 10,000 10,000 2,500
Fixed Assets - - - - - -
Internal Service Charges - - - - - -
Total Expenditures - - - 10,000 10,000 2,500
Transfers Out
Transfer to General Fund - - - - - -
Transfer to Capital Projects - - - - - -
Total Transfers Out - - - - - -
Total Expenditures & Transfers Out -$ -$ -$ 10,000$ 10,000$ 2,500$
Ending Fund Balance
Designated - - - - - -
Undesignated 350,461 354,865 361,142 514,152 354,042 354,442
Total Ending Fund Balance 350,461 354,865 361,142 514,152 354,042 354,442
TOTAL USE OF FUNDS 350,461$ 354,865$ 361,142$ 524,152$ 364,042$ 356,942$
STATEMENT OF SOURCE AND USE OF FUNDS
Capital Improvement Program
This Page Intentionally Left Blank
E - 1
The Capital Improvement Section
is presented in the CIP Document
E – 2
Successor Agency
This Page Intentionally Left Blank
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
F - 2
SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY
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 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):
F - 3
SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY
• 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.
• 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 $13,000.
The Town submitted the Last & Final ROPS to the State and it was approved by the State on
April 6, 2016. The Town no longer needs to submit ROPS every six months and has scheduled
the ROPS budget through FY 2031/32. At the end of FY 2031/32, the Town and the County will
resolve any remaining balances.
F - 4
SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY
2016/17 2017/18 2018/19 2019/20 2019/20 2020/21
Actuals Actuals Actuals Adopted Estimated Proposed
SOURCES OF FUNDS
Beginning Budgetary Fund Balance
Designated 1,963,657$ 1,963,657$ 1,963,660$ 1,967,496$ 1,967,496$ 1,963,327$
Undesignated 1,629,915 1,726,854 1,840,119 1,872,691 1,872,691 1,876,491
Total Beginning Fund Balance 3,593,572 3,690,511 3,803,779 3,840,187 3,840,187 3,839,818
Revenues
Property Tax - - - - - -
Other Taxes - - - - - -
Intergovernmetal - - - - - -
Lease Income - COP's 1,923,303 1,914,739 1,909,073 1,905,024 1,905,024 1,908,494
County RPTTF Reimbursement 1,964,636 1,958,325 1,945,763 1,915,024 1,915,024 1,917,494
Interest 6,310 22,788 43,706 3,154 3,154 3,500
Other Revenues - - 11,664 - - -
Total Revenues 3,894,249 3,895,852 3,910,206 3,823,202 3,823,202 3,829,488
Transfers In
Transfer from SA Administration - - - - - -
Total Transfers In - - - - - -
Total Revenues and Transfer Ins 3,894,249$ 3,895,852$ 3,910,206$ 3,823,202$ 3,823,202$ 3,829,488$
TOTAL SOURCE OF FUNDS 7,487,821$ 7,586,363$ 7,713,985$ 7,663,389$ 7,663,389$ 7,669,306$
USES OF FUNDS
Expenditures
Salaries and Benefits (10,004) 1,385 1,555 1,748 1,748 1,778
Operating Expenditures 16,770 5,270 111,712 11,670 11,770 10,020
Grants - - - - - -
Debt Service 3,790,469 3,769,571 3,760,522 3,809,779 3,810,048 3,816,988
Fixed Assets - - - - - -
Internal Service Charges 75 58 9 5 5 5
Total Expenditures 3,797,310 3,776,284 3,873,798 3,823,202 3,823,571 3,828,791
Transfers Out
Transfer to Capital Projects - - - - - -
Transfer to General Funds - 6,300 - - - -
Total Transfers Out - 6,300 - - - -
Total Expenditures & Transfers Out 3,797,310 3,782,584 3,873,798 3,823,202 3,823,571 3,828,791
Ending Fund Balance
Designated 1,963,657 1,963,660 1,967,496 1,963,327 1,963,327 1,963,327
Undesignated 1,726,854 1,840,119 1,872,691 1,876,860 1,876,491 1,877,188
Total Ending Fund Balance 3,690,511 3,803,779 3,840,187 3,840,187 3,839,818 3,840,515
TOTAL USE OF FUNDS 7,487,821$ 7,586,363$ 7,713,985$ 7,663,389$ 7,663,389$ 7,669,306$
STATEMENT OF SOURCE AND USE OF FUNDS (BUDGETARY FUND BALANCE)
F - 5
SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY
Full Time Equivalent (FTE)
2016/17 2017/18 2018/19 2019/20 2020/21
Town Staff Funded Funded Funded Funded Proposed
Administrative Analyst 0.01 - - - -
Accountant/Finance Analyst - 0.01 0.01 0.01 0.01
Total SA FTEs 0.01 0.01 0.01 0.01 0.01
SUCCESSOR AGENCY TO THE LOS GATOS RDA PROGRAM STAFFING
F - 6
F - 7
Successor Agency to the
Town of Los Gatos
Redevelopment Agency
ADMINISTRATION
PROGRAM 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 2020/21 Administration Fund budget reflects approximately $13,000 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 - 8
F - 9
Successor Agency to the
Town of Los Gatos
Redevelopment Agency
DEBT SERVICE
PROGRAMS 9404 and 9405
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.
F - 10
SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY
Debt Service
The first agreement lease 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 $1. In
the second lease, the Successor Agency subleases the same land back to the Town, effective the
date of the original lease. The annual sub-lease payments are equal to the annual debt service
for the COPs.
A reimbursement agreement between the Town and the Successor Agency, also dated July 1,
2002, obligates the Agency to reimburse the Town in an amount equal to the annual lease
payment the Town pays to the Agency for the sub-lease of the Corporation Yard. This
reimbursement is in consideration of the Town’s cost of the acquisition and construction of the
yard facilities.
While the annual impact of these agreements nets to zero, the lease and reimbursement
payments are included in both the Town’s and Successor Agency’s budgets each year to
accurately reflect the terms of these agreements. The Agency remains responsible for making
the principal and interest payments.
The maturity schedule for the Successor Agency’s current Debt Service obligation under the
2002 COPs is as follows:
F - 11
SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY
Debt Service
Principal Interest Interest
Fiscal Maturing Due Due Total Principal
Year August 1st August 1st Feburary 1st Debt Service Balance
Issue Date: August 1, 2002 10,725,000$
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 - 12
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 2002 issue. 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 $1. In the second lease, the Successor
Agency subleases the properties back to the Town, effective the date of the original lease. The
annual sub-lease payments are equal to the annual debt service for the COPs.
A reimbursement agreement between the Town and Agency, also dated June 1, 2010, obligates
the Agency to reimburse the Town in an amount equal to the annual lease payment the Town
pays to the Agency for the sub-lease of the existing library, police administration building, and
related properties. This reimbursement is in consideration of the Town’s cost of the acquisition
and construction of the library and police facilities.
While the annual impact of these agreements nets to zero, the lease and reimbursement
payments are included in both the Town’s and Successor Agency’s budgets each year to
accurately reflect the terms of these agreements. The Agency remains responsible for making
the principal and interest payments.
The maturity schedule for the Successor Agency’s current Debt Service obligation under the
2010 COPs is as follows:
F - 13
SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY
Debt Service
Interest Principal Interest
Fiscal Due Maturing Due Total Principal
Year August 1st August 1st February 1st Debt Service Balance
Issue Date: June 1, 2010 15,675,000$
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 - 14
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 2019/20 13,469,589,136$
Debt Limitation (15% of assessed value)15%
Bonded Debt Limit 2,020,438,370$
Outstanding Bonded Debt at 6/30/2020
2002 Certificates of Participation 5,065,000
2010 Certificates of Participation 9,270,000
TOTAL Outstanding Debt 14,335,000$
LESS Debt not subject to limit:
Special Assessment Bonds -
Special Revenue Bonds -
Certificate of Participation Debt 14,335,000
Amounts held in Sinking Funds -
TOTAL Debt not subject to limit: 14,335,000$
Amount of Debt Subject to Limit: -$ -$
LEGAL DEBT MARGIN 2,020,438,370$
LEGAL DEBT MARGIN COMPUTATION
FY 2020/21
Reference Materials
This Page Intentionally Left Blank
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
Liability Self-Insurance Fund (Administrative Services) ..................................................................... 611
Workers’ Compensation Fund (Administrative Services) ................................................................... 612
Information Technology Fund (Administrative Services) ................................................................... 621
Office Stores Fund (Administrative Services) closed at beginning of FY 2019/20 ............................. 622
Equipment Replacement Fund (Parks and Public Works) ................................................................. 631
Vehicle Maintenance Fund (Parks and Public Works) closed at beginning of FY 2019/20 ................ 632
Facilities Maintenance Fund (Parks and Public Works) ...................................................................... 633
TRUST AND AGENCY FUNDS
Library Trust (Library) ......................................................................................................................... 711
Clelles Ness Trust (Library) ................................................................................................................. 713
Susan McClendon Trust (Library) ....................................................................................................... 714
Barbara J Cassin Trust Fund ................................................................................................................ 716
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
Information Technology Management ........................................................................................... 2502
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
Vehicle Maintenance Management ................................................................................................. 5406
Facility Maintenance Management .................................................................................................. 5407
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
PLAN Liability Self-Insurance ................................................................................................................... 1302
Workers Compensation .......................................................................................................................... 2202
Office Stores (closed at the beginning of FY 2019/20) ........................................................................... 2302
Information Technology .......................................................................................................................... 2501
Equipment Replacement ........................................................................................................................ 5402
Vehicle Maintenance (closed at the beginning of FY 2019/20) .............................................................. 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
ADA Restrooms and HR Offices .............................................................................................411-821-2117
ADA Upgrade Public Restrooms – Adult Recreation Building ...............................................411-821-2601
Adult Recreation Center – Floor Repair ................................................................................411-821-2206
Annual Street Restriping .......................................................................................................411-811-9902
G - 4
LIST OF PROGRAMS
CAPITAL PROJECT FUNDS CONTINUED
ADA Transition Plan ...............................................................................................................411-812-0129
Audio/Video System Upgrade ...............................................................................................411-841-6001
Blossom Hill Road Traffic Study .............................................................................................411-813-0239
Building Replacement at Corporation Yard ...........................................................................411-821-2302
Bicycle & Pedestrian Improvements .....................................................................................411-813-0231
Charter Oaks Trail Repair ......................................................................................................411-832-4503
Computer-Aided Dispatch and Records Management System (CAD/RMS) ..........................411-841-6301
Creek Trail & Park Pathway & Parking Lot Seal Coat & Striping ...........................................411-831-4609
Curb, Gutter, & Sidewalk Maintenance ................................................................................411-813-9921
Downtown Parking Lots Seal Coat & Restriping ....................................................................411-817-0705
Downtown Streetscape Revitalization .................................................................................411-813-0235
EOC Communication Upgrade ...............................................................................................411-841-6103
E. Main Street Speed Table/Raised Crosswalk .....................................................................421-812-0131
Engineering Document Archiving .........................................................................................411-821-2305
Facilities Assessment ............................................................................................................411-821-2001
Fire Suppression (Halon) for Server Rooms .........................................................................411-841-6004
Forbes Mill Footbridge Improvements ..................................................................................411-832-4507
Guardrail Replacement Project .............................................................................................411-812-0120
Information System Upgrade ................................................................................................411-841-6101
IT Disaster Recovery Improvements .....................................................................................411-841-6104
Kennedy Sidewalk – LGB to Englewood ...............................................................................411-813-0241
Library Carpet Replacement .................................................................................................411-821-2503
Local Road Safety Plan ..........................................................................................................421-812-0132
Massol Intersection Improvements .....................................................................................411-813-0236
Open Space Trail Upgrades ...................................................................................................411-832-4504
Outdoor Fitness Equipment .................................................................................................411-831-4006
Parking Lot 4 Repair & Waterproofing .................................................................................411-817-0708
Parking Program Implementation .........................................................................................411-813-0242
Parks Playground Fibar Project .............................................................................................411-831-4605
Pilot School Busing Program .................................................................................................411-812-0128
Plaza Level Railings – Code Upgrade .....................................................................................411-821-2116
Police Headquarters Roof Repair ..........................................................................................411-821-2118
Public Arts Gateway ..............................................................................................................411-821-2009
Quito Road - Bridge Replacement .........................................................................................411-818-0801
Retaining Wall Repairs ..........................................................................................................411-815-9930
Roadside Fire Fuel Reduction ................................................................................................411-812-0130
Shannon Road Repair ............................................................................................................411-811-0008
Shannon Road Class 1 Multi-Use Path ..................................................................................411-813-0218
Sidewalk Improvements – Multiple Locations .....................................................................411-813-0221
Silicon Valley Radio Interoperability Project (SVRIP) - Service ..............................................411-841-6305
Sound Mitigation in Library Lobby ........................................................................................411-821-2504
Stormwater Master Plan .......................................................................................................411-813-0413
Stormwater System – Pollution Prevention Compliance ......................................................411-813-0414
Street Repair & Resurfacing ..................................................................................................411-811-9901
Town Beautification .............................................................................................................411-821-2002
Town Plaza Turf Repairs .......................................................................................................411-831-4202
G - 5
LIST OF PROGRAMS
CAPITAL PROJECT FUNDS CONTINUED
Town-wide Document Imaging Project .................................................................................411-841-6003
Traffic Calming Projects .........................................................................................................411-812-9910
Trailhead Connector Project .................................................................................................411-832-4505
VMT Mitigation Program .......................................................................................................411-812-0133
Winchester Boulevard Complete Streets Final Design ..........................................................411-831-0238
Winchester Class IV Bikeway .................................................................................................411-813-0240
Vegetation Management – Town-wide ................................................................................411-832-4508
Waterproofing – Town-wide ................................................................................................411-821-2010
Traffic Mitigation
Traffic Mitigation Administration ........................................................................................................ 8041
Highway 17 Bicycle & Pedestrian Bridge - Design ................................................................471-818-0803
Highway 17/9 Interchange and Capacity Improvements ......................................................471-813-0237
Traffic Signal Modernization .................................................................................................471-813-0227
Grant Funded CIP Projects
Grant Administration Program ............................................................................................................ 8021
ADA Upgrade Public Restrooms – Adult Recreation Building ...............................................411-821-2601
Bicycle & Pedestrian Improvements .....................................................................................421-813-0231
Charter Oaks Trail Repair ......................................................................................................421-832-4503
E. Main Street Speed Table/Raised Crosswalk .....................................................................421-812-0131
Guardrail Replacement Projects ...........................................................................................421-812-0120
Highway 17 Bicycle & Pedestrian Bridge - Design ................................................................421-818-0803
Local Road Safety Plan ..........................................................................................................421-818-0803
Traffic Signal Modernization .................................................................................................421-813-0227
Trailhead Connector Project .................................................................................................421-832-4505
Winchester Class IV Bikeway .................................................................................................411-813-0240
Storm Drain Basin Projects
Storm Drain #1 Administration Program ............................................................................................. 8031
Storm Drain #2 Administration Program ............................................................................................. 8032
Storm Drain #3 Administration Program ............................................................................................. 8033
Annual Storm Drain Improvements .....................................................................................461-816-0420
Annual Storm Drain Improvements .....................................................................................462-816-0420
Annual Storm Drain Improvements .....................................................................................463-816-0420
Bicknell Road Storm Drain Improvements ............................................................................463-816-0410
Hernandez Avenue Storm Drain Improvements ...................................................................463-816-0409
Utility Undergrounding Projects
Utility Undergrounding Administration .............................................................................................. 8042
Shannon Road Class 1 Multi-Use Path ..................................................................................411-813-0218
Utility Undergrounding Improvements .................................................................................472-813-0225
Gas Tax Fund Projects
Gas Tax Administration ....................................................................................................................... 8051
Street Repair & Resurfacing ..................................................................................................481-811-9901
G - 6
LIST OF PROGRAMS
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 - 7
LIST OF DEPARTMENT PROGRAMS BY
FUNDING SOURCE
1101 Town Council 111 General Fund
1301 Town Attorney 111 General Fund
1302 Liability Self Insurance 611 Liability Self Insurance Fund - Internal Service Fund
1201 Non-Departmental 111 General Fund
2101 Town Manager Administration 111 General Fund
2102 Community Grants 111 General Fund
2201 Human Resources 111 General Fund
2202 Workers' Compensation 612 Workers' Compensation Fund - Internal Service Fund
2301 Finance & Administrative Services 111 General Fund
2401 Clerk Administration 111 General Fund
2502 Information Technology Management 111 General Fund
2501 Information Technology Systems 621 Information Technology System - Internal Service Fund
2999 Pass Through Accounts 111 General Fund
3101 Administration 111 General Fund
3201 Developmental Review 111 General Fund
3202 Advanced Planning 111 General Fund
3301 Inspection Services 111 General Fund
3401 Code Compliance 111 General Fund
3501 BMP Housing Program 111 General Fund
3999 Pass Thru Accounts 111 General Fund
4101 Administration 111 General Fund
4201 Records & Communication 111 General Fund
4202 Personnel & Community Services 111 General Fund
4301 Patrol 111 General Fund
4302 Traffic 111 General Fund
4303 Investigations 111 General Fund
4304 Parking Program 111 General Fund
4800 Grants Program - Police 111 General Fund
4999 Pass Thru Accounts 111 General Fund
Town Offices
Program Fund
Program Fund
Administrative Services Department
Program Fund
Community Development Department
Police Department
Program Fund
G - 8
LIST OF DEPARTMENT PROGRAMS BY FUNDING SOURCE
5101 Administration 111 General Fund
5201 Engineering Program Services 111 General Fund
5202 Engineering Development Srvcs 111 General Fund
5203 Non-Point Source Fund 222 Non-Point Source Fund - Special revenue Fund
5301 Park Services 111 General Fund
5302 Environmental Services 111 General Fund
5401 Street & Signals 111 General Fund
5402 Equipment Replacement 631 Equipment Replacement - Internal Service Fund
5403 Vehicle Maintenance 111 General Fund
5404 Facilities Maintenance 633 Facilities Maintenance Fund - Internal Service Fund
5405 Property Damage 111 General Fund
5406 Vehicle Maintenance Staffing 111 General Fund
5407 Facilities Maintenance Staffing 111 General Fund
5501 Lighting & Landscape Districts 231-237 Lighting & Landscaping - Special Revenue Fund
5999 Pass Thru Accounts 111 General Fund
8011 GFAR 411 General Fund Appropriated Reserve Fund
8021 Grant Funded Capital Projects 421 Grant Funded Capital Projects Fund
8030 Storm Drain Basin Funds 1-3 461-463 Storm Drain Funds 1-3 - Capital Project Funds
8041 Traffic Mitigation 471 Traffic Mitigation Fund - Capital Project Fund
8042 Utility Undergrounding 472 Utility Undergrounding Fund - Capital Projects Fund
8051 Gas Tax - Street & Signals 482 Gas Tax Fund - Capital Projects Fund
7101 Administration 111 General Fund
7201 Adult Services 111 General Fund
7202 Children's Services 111 General Fund
7203 Acquisitons & Cataloging 111 General Fund
7204 Circulation Services 111 General Fund
7801 Operating Grant 111 General Fund
7301 Library Trust 711 Library Trust - Trust Fund
7302 Clelles Ness Bequest Trust 713 Clelles Ness Bequest Trust - Trust Fund
7304 Betty McClendon Trust 714 Betty McClendon Trust -Trust Fund
7305 Barbara J Cassin Trust 716 Barbara J Cassin Trust -Trust Fund
9403 SA- Admin Services 942 Successor Agency to the Los Gatos RDA Find -Trust Fund
9404 SA- Debt to 2002 COP 942 Successor Agency to the Los Gatos RDA Find -Trust Fund
9405 SA-Debt to 2010 COP 942 Successor Agency to the Los Gatos RDA Find -Trust Fund
Library Department
Program Fund
Parks & Public Works Department
Program Fund
Successor Agency to the Los Gatos RDA
Program Fund
G - 9
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
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.
G - 10
GLOSSARY
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.”
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
G - 11
GLOSSARY
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.
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.
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.
G - 12
GLOSSARY
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.
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.
G - 13
GLOSSARY
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.
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.
G - 14
GLOSSARY
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.
Information Technology Fund - The Information technology 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, and computer training.
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.
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
G - 15
GLOSSARY
is always a major fund. The Town may also select other funds it believes should be presented as major
funds.
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.
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.
G - 16
GLOSSARY
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.
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.
G - 17
GLOSSARY
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.
Transient Occupancy Tax - Imposed on hotels, motels, inns or other lodging facilities. The rate in Los
Gatos is 12%.
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 - 18
LIST OF ACRONYMS
Following is a list of acronyms common to local government terminology:
AB Assembly Bill
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 - 19
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
OPEB Other Post-Employment Benefits
PARS Public Agency Retirement Services
PCI Pavement Condition Index
PERS Public Employees’ Retirement System
PLAN JPA Pooled Liability Assurance Network Joint Powers Authority
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 - 20
INDEX
Acronyms ...................................................................................................................................................... G – 18
Administrative Services Overview ................................................................................................................ D – 21
Annual Budget Resolution ............................................................................................................................ A – 63
Budget Award ............................................................................................................................................... A – 25
Budget Calendar ........................................................................................................................................... A – 62
Budget Message .......................................................................................................................................... A – 1
Budget Process Overview ............................................................................................................................. A – 59
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 – 59
Community Development Department Overview ........................................................................................ D – 87
Core Goals and Strategic Priorities ............................................................................................................. A – 9
Department/Program List ............................................................................................................................. D – 1
Equipment Replacement Fund ..................................................................................................................... D – 235
Facilities Maintenance Fund ......................................................................................................................... D – 243
Facilities Maintenance Staffing .................................................................................................................... D – 231
Fee Related Project List ................................................................................................................................ C – 43
Finance ......................................................................................................................................................... D – 51
Financial Practices ........................................................................................................................................ A – 31
Financial Summaries ..................................................................................................................................... C – 1
Departmental Budget Revenues & Expenditures ................................................................................... C – 38
Fund Balance ........................................................................................................................................... C – 34
General Fund Revenues and Expenditures ............................................................................................... C – 23
Operating Transfers ................................................................................................................................. C – 33
Staffing ..................................................................................................................................................... C – 45
Total Revenues and Expenditures ............................................................................................................ C – 3
Fiscal Year Surplus Flow of Funds .................................................................................................................. A - 65
Forecast Assumptions ................................................................................................................................... A - 21
Fund Descriptions ......................................................................................................................................... A – 27
Gann Appropriation Limit ............................................................................................................................. A – 59
Gann Appropriation Limit Resolution .......................................................................................................... A – 61
General Fund Reserve Policy ....................................................................................................................... A – 35
Glossary ........................................................................................................................................................ G – 9
History and Culture of Los Gatos .................................................................................................................. B – 1
Human Resources ......................................................................................................................................... D – 43
G - 21
INDEX
Index ............................................................................................................................................................. G – 20
Information Technology Fund ...................................................................................................................... D – 77
Information Technology Staffing .................................................................................................................. D – 65
In-Kind Donations ......................................................................................................................................... C– 42
Investment Policy ......................................................................................................................................... A– 45
IRS Section 115 Pension Trust and OPEB Trust Investment Policy ............................................................... A – 55
Liability Self-Insurance Fund ......................................................................................................................... D – 17
Library Department ...................................................................................................................................... D – 269
Library Trust Fund......................................................................................................................................... D – 301
List of Department Programs by Funding Source ......................................................................................... G - 7
List of Funds .................................................................................................................................................. G – 1
List of Programs ............................................................................................................................................ G – 2
Long-Term Debt Policy ................................................................................................................................. A – 41
Non-Departmental Program ......................................................................................................................... D – 71
Non-Point Source Program ........................................................................................................................... D – 247
Office Stores Fund ........................................................................................................................................ D – 85
Organizational Structure Chart ..................................................................................................................... B – 12
Parks & Public Works Department Overview ............................................................................................... D –179
Police Department Overview ....................................................................................................................... D – 123
Special Assessment Districts
Blackwell Drive Assessment District ......................................................................................................... D – 257
Gemini Court Assessment District ............................................................................................................ D – 261
Hillbrook Drive Assessment District.......................................................................................................... D – 267
Kennedy Meadows Assessment District ................................................................................................... D – 259
Santa Rosa Heights Assessment District .................................................................................................. D – 263
Vasona Heights Assessment District ........................................................................................................ D – 265
Successor Agency to the Los Gatos RDA Debt Administration Fund
2002 COP Debt Schedule ........................................................................................................................... F – 11
2010 COP Debt Schedule ........................................................................................................................... F – 13
Computation of Legal Debt Margin .......................................................................................................... F – 14
Successor Agency to the Los Gatos Redevelopment Agency Overview ........................................................ F – 1
Town Commissions, Committees, and Advisory Boards ............................................................................... B – 13
Town Management Team List ...................................................................................................................... B – 11
Town Offices
Town Attorney Administration ................................................................................................................. D – 11
Town Council Administration ................................................................................................................... D – 7
Town Demographics ..................................................................................................................................... B – 6
Town Economic Statistics ............................................................................................................................. B – 8
Vehicle Maintenance Fund ........................................................................................................................... D – 239
Vehicle Maintenance Management ............................................................................................................. D – 227
Workers’ Compensation Fund ...................................................................................................................... D – 81
G - 22