07 Staff Report.Budget
PREPARED BY: Stephen Conway
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/02/2020
ITEM NO: 7
DATE: May 28, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Operating and Capital Budgets
a. Adopt a resolution approving the Town of Los Gatos Fiscal Year (FY)
2020/21 Operating Budget and FY 2020/21 – 2024/25 Capital
Improvement Program (CIP), new appropriations, other approved
adjustments, minor corrections, and carry-forward appropriations
b. Adopt a resolution approving commitment of fund balances under GASB
54.
c. Confirm the General Fund Reserve Policy, Long term Debt Policy,
Investment Policy, and IRS Section 115 Pension Trust and OPEB Trust
Investment Policy.
RECOMMENDATION:
Operating and Capital Budgets
a. Adopt a resolution approving the Town of Los Gatos Fiscal Year (FY) 2020/21 Operating
Budget and FY 2020/21 – 2024/25 Capital Improvement Program (CIP), new appropriations,
other approved adjustments, minor corrections, and carry-forward appropriations.
b. Adopt a resolution approving commitment of fund balances under GASB 54.
c. Confirm the General Fund Reserve Policy, Long term Debt Policy, Investment Policy, and IRS
Section 115 Pension Trust and OPEB Trust Investment Policy.
BACKGROUND:
On May 19, 2020, the Town Council conducted public hearings to discuss the proposed FY
2020/21 Operating and Capital Summary Budget and Proposed FY 2020/21 – 2024/25 Capital
Improvement Program. The Town Council considered public testimony, discussed both
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SUBJECT: Operating and Capital Budgets
DATE: May 27, 2020
BACKGROUND (continued):
documents, and directed staff to bring back the documents for final approval incorporating the
staff proposed recommendations.
The Town Council held a special meeting on May 26, 2020 regarding how to help foster the
economic vitality of the Town during recovery from the COVID-19 pandemic. Town Council
directed staff to repurpose the Downtown Streetscape Revitalization Project for COVID-19
Economic Recovery efforts. As a result, the project is being renamed the COVID-19 Economic
Recovery/Downtown Revitalization Project.
The repurposed project consists primarily of the installation of barriers to allow for street
parking to be converted to outdoor dining, shopping, or other business use along N. Santa Cruz
Avenue and Main Street in the C-2 Zone; signage for designated curbside pickup; and
wayfinding signage for longer duration parking. This project will be implemented in
collaboration with the Chamber of Commerce, businesses, and the community. The Council
direction will be memorialized in the final publication of the budget document.
In addition, the proposed Budget addresses the Council identified Strategic Priorities and
considers other areas of importance to the Los Gatos community, the Council, and the Town
organization. The proposed Budget also acknowledges the current economic realities
associated with the global COVID-19 pandemic and continues to position the organization for
what will likely be the nation’s first recession since 2008. 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.
DISCUSSION:
The draft resolution (Attachment 1) incorporates the budget direction provided by the Council
at the May 19, 2020 budget hearing. Attachment 2 contains the resolution to formally move
General Fund balances based on the Town Council General Fund Reserve Policy and additional
Council direction consistent with General Accounting Standards Board (GASB) 54. Attachment
3 contains the existing General Fund Reserve Policy, Long term Debt Policy, Investment Policy,
and IRS Section 115 Pension Trust and OPEB Trust Investment Policy as listed in the Proposed
Operating and Summary Budget from pages A-35 to A-58. Staff does not recommend any
changes to the listed polices at this time.
COORDINATION:
The preparation of the budget documents involved the participation of all Town Departments.
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SUBJECT: Operating and Capital Budgets
DATE: May 27, 2020
FISCAL IMPACT:
The fiscal impact is presented in summary form in the Financial Summaries chapter of the
Proposed Operating and Capital Budget for FY 2020/21.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Resolution of the Town Council Approving FY 2020/21 Operating Budget and FY 2020/21 –
2024/25 Capital Improvement Program (with Exhibit A)
2. Resolution of the Town Council of the Town of Los Gatos Approving Commitments of Fund
Balance under GASB 54
3. Financial Policies