13 Attachment 7From: Phil Koen
Sent: Friday, February 12, 2021 1:04 PM
To: Rob Rennie <RRennie@losgatosca.gov>; Matthew Hudes <MHudes@losgatosca.gov>; Marico Sayoc
<MSayoc@losgatosca.gov>; Maria Ristow <MRistow@losgatosca.gov>; Mary Badame
<MBadame@losgatosca.gov>
Cc: Laurel Prevetti <LPrevetti@losgatosca.gov>; Arn Andrews <aandrews@losgatosca.gov>; Stephen
Conway <sconway@losgatosca.gov>; Ron Dickel; jvannada; Lee Fagot
Subject: Format of Five Year Forecast - Agenda Item #13
Dear Council Members,
If we are trying to increase transparency to the five-year planning process, why has the Town adopted
this five-year forecast format? If we compare the current format to what the residents use to get as
recently as FY 2016, the reader is presented with LESS information. Why are residents getting less
information today than in FY 2016?
Historical actual data helps inform the reader as to the reasonableness of future projections, especially
in a period of great uncertainty. The request for historical actual data has been a long-standing request
that many residents have made over the past years. If the Town is committed to increasing
transparency, it is a very small task to bring back the five-year format that the Town used in FY 2016.
Please re-publish the current five-year forecast using the format the Town used in FY 2016.
Thank you.
Phil Koen
ATTACHMENT 7
Reflective of the positive economy, the Five-Year Forecast identified over $400,000 in additional General
Fund monies in FY 2015/16 which have been allocated to fund contractually obligated increases,
including salary increases, contractual increases and unfunded mandates as previously discussed.
Provided below is a recap of the most recent Five-Year Financial Plan prepared in early May 2015. The
updated Five-Year Financial Plan spans FY 2015/16 - 2019/2020:
($ millions)
FY 1 FY 2 FY 3 FY 4 FY 5
Account Revenue Category
2012/13
Actuals
2013/14
Adopted
2013/14
Actuals
2014/15
Budget
2014/15
Estimated
2015/16
Forecast
2016/17
Forecast
2017/18
Forecast
2018/19
Forecast
2019/20
Forecast
4100 Property Tax 8.3$ 7.8$ 9.1$ 8.2$ 8.4$ 9.1$ 9.4$ 9.7$ 10.0$ 10.3$
4110 VLF Backfill Property Tax 2.4 2.4 2.7 2.7 2.8 2.8 2.9 2.9 2.9 2.9
4200 Sales & Use Tax 8.8 7.8 8.0 8.3 8.1 8.3 8.8 9.2 9.6 9.5
4250 Franchise Fees 2.0 2.0 2.1 2.1 2.1 2.1 2.2 2.3 2.3 2.4
4251 Transient Occupancy Tax 1.3 1.0 1.5 1.3 1.5 1.5 1.5 1.6 1.6 1.7
4400 Business License Tax 1.2 1.4 1.1 1.4 1.7 1.3 1.3 1.3 1.3 1.3
4400 Licenses & Permits 3.1 2.6 3.2 2.9 2.9 3.0 3.1 3.1 3.2 3.3
4500 Intergovernmental 0.9 0.7 0.8 0.7 0.7 0.8 0.7 0.7 0.7 0.8
4600 Charge for Services 3.1 2.5 2.7 2.5 2.4 2.4 2.7 2.7 2.8 2.9
4700 Fines & Forfeitures 0.6 0.7 0.8 0.7 0.7 0.7 0.7 0.7 0.7 0.7
4800 Interest (0.2) 0.5 1.1 0.3 0.5 0.3 0.3 0.3 0.4 0.4
4850 Other Sources 3.6 3.4 4.7 4.5 4.9 4.7 3.5 3.3 3.3 3.4
4900 Fund Transfers In 0.6 0.8 0.3 0.6 0.4 0.5 0.4 0.4 0.4 0.4
TOTAL REVENUES 35.7 33.6 38.1 36.2 37.1 37.5 37.5 38.2 39.2 40.0
Use of Reserves/Deposits 1.9 2.7 3.4 7.7 7.3 0.4 0.4 0.4 0.4 0.4
37.6$ 36.3$ 41.5$ 43.9$ 44.4$ 37.9$ 37.9$ 38.6$ 39.6$ 40.4$
Account Expenditure Category
2012/13
Actuals
2013/14
Proposed
2013/14
Actual
2014/15
Budget
2014/15
Estimated
2015/16
Forecast
2016/17
Forecast
2017/18
Forecast
2018/19
Forecast
2019/20
Forecast
5110 Salary 12.6$ 13.0$ 12.4$ 13.7$ 13.1$ 14.3$ 14.3$ 14.4$ 14.4$ 14.4$
5130 Temporary Employees 0.9 0.6 0.8 0.6 0.7 0.8 0.7 0.7 0.7 0.7
5140 Overtime 0.6 0.4 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.4
5170 Other Salary 0.3 0.4 0.4 0.4 0.2 0.4 0.4 0.4 0.4 0.4
5200 Benefits 6.3 6.7 6.6 8.4 6.0 7.3 7.9 8.4 8.9 9.4
6000 Supplies, Materials, & Services 5.6 5.3 5.6 5.3 5.6 5.5 5.6 5.6 5.8 5.9
6000 Pass Through Expenditures 0.8 0.8 1.1 1.1
7200 Grants & Awards 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2
7400 Utilities 0.4 0.4 0.4 0.4 0.5 0.4 0.5 0.5 0.5 0.5
7700 Fixed Assets - - 0.1 - - - - - - -
8060 Internal Service Charges 3.3 3.4 3.4 3.4 3.3 3.6 3.8 3.9 4.0 4.1
8900 Debt Service 2.0 1.9 1.9 1.9 1.9 1.9 2.0 2.0 2.0 2.0
TOTAL EXPENDITURES 32.2$ 32.3$ 33.0$ 35.5$ 33.0$ 35.9$ 35.8$ 36.5$ 37.3$ 38.0$
9900 RDA Trust Fund 0.1 0.1 - - - - - -
9900 Operating Transfers Out - 0.1 - - - -
9900 Capital Transfers Out to GFAR 1.9 2.7 2.6 7.0 7.3 0.4 0.4 0.4 0.4 0.4
9900 GASB 45 Retiree Medical Actuarial 1.2 1.3 5.8 1.3 1.3 1.5 1.6 1.6 1.6 1.6
EXPENDITURES 35.3 36.4 41.5 43.8 41.6 37.9 37.8 38.5 39.3 40.0
9900 Allocation
9900
p
Projects Reserve - 0.1 0.1 - - - - -
9900 Transfer to Stabilization Reserve - - - - - - -
35.3$ 36.4$ 41.5$ 43.9$ 41.7$ 37.9$ 37.8$ 38.5$ 39.3$ 40.0$
REVENUES LESS EXPENDITURES 2.3$ (0.1)$ -$ -$ 2.7$ -$ 0.1$ 0.1$ 0.3$ 0.4$
ONGOING SHORTFALL MITIGATION -$ -$ -$ -$ -$ -$ -$ NET REVENUES LESS EXPENDITURES 2.3$ (0.1)$ -$ -$ 2.7$ -$ 0.1$ 0.1$ 0.3$ 0.4$
* FY 2014/15 $7 3 illi i f R /D it i f it l j t f di i l i f $4 2 illi f Ph 1 f th Al d G St t h bilit ti j t
TOTAL REVENUES & TRANSFERS
TOTAL EXPENDITURES &
ALLOCATIONS
Town of Los Gatos General Fund
Updated Five-Year Financial Plan
*FY 2014/15 $7.4 million in use of Reserves/Deposit is for capital projects funding, inclusive of 44.2 million for Phase 1 of the Almond Grove Street Rehabilitation Project.
Notably, in the Five-Year Forecast FY 2014/15 year-end estimates indicate excess revenues over expenditures in the amount of $2.7 million. This $2.7 million is inclusive of the Town’s savings related
to the payoff of the Town’s CalPERS side fund liability. The side fund payoff was approved in June
2014 along with adoption of the proposed FY 2014/15 Operating Budget. Because the FY 2014/15 was adopted prior to the side fund pay-off, the $700,000 in savings was moved to non-departmental so it
would not be spent. In addition, approximately $1.3 million of this year end savings resulted from an
unusual number of separations and vacancies throughout the fiscal year.
A - 7
BASE CASE
Account Revenue Category 2020/21
Budget
2020/21
Estimates
2021/22
Forecast
2022/23
Forecast
2023/24
Forecast
2024/25
Forecast
2025/26
Forecast
4100 Property Tax 14.7$ 13.9$ 14.1$ 15.2$ 15.6$ 16.2$ 16.6$
4110 VLF Backfill Property Tax 4.0 4.1 4.2 4.3 4.4 4.5 4.7
4200 Sales & Use Tax 7.0 6.7 7.3 7.5 7.7 7.8 7.9
4200 Measure G District Sales Tax 1.0 1.0 1.0 1.0 1.1 1.1 1.1
4250 Franchise Fees 2.5 2.5 2.6 2.7 2.8 2.8 2.8
4251 Transient Occupancy Tax 2.3 0.7 1.0 1.1 1.2 1.2 1.3
4400 Business License Tax 1.3 1.1 1.2 1.2 1.2 1.2 1.2
4400 Licenses & Permits 3.1 3.0 2.9 2.9 3.0 3.1 3.1
4500 Intergovernmental 1.0 1.3 0.7 0.8 0.8 0.8 0.9
4600 Town Services 4.0 3.8 3.5 3.5 3.5 3.5 3.6
4700 Fines & Forfeitures 0.4 0.1 0.3 0.3 0.3 0.3 0.3
4800 Interest 0.6 0.6 0.5 0.3 0.2 0.2 0.3
4850 Other Sources 2.3 3.5 2.3 2.3 2.3 2.3 2.3
4900 Fund Transfers In 0.6 0.6 0.5 0.5 0.5 0.5 0.5
44.8$ 42.9$ 42.1$ 43.6$ 44.5$ 45.5$ 46.6$
Use of Capital/Special Project Reserve - Capital 3.4 3.4 0.6 0.6 0.6 0.6 0.6
Use of Pension/OPEB Reserve 4.2 4.5 0 0 0 0 0
Use of Capital/Special Project Reserve - Other 0.9 0.9 0 0 0 0 0
53.3$ 51.7$ 42.7$ 44.2$ 45.1$ 46.1$ 47.2$
Account Expenditure Category 2020/21
Budget
2020/21
Estimates
2021/22
Forecast
2022/23
Forecast
2023/24
Forecast
2024/25
Forecast
2025/26
Forecast
5110 Salary 20.2 20.3 19.7 19.7 19.9 20.1 20.2
5120 CalPERS Benefits 7.3 6.4 7.5 7.5 7.2 7.5 7.6
5200 All Other Benefits 4.1 3.7 3.9 3.9 4.0 4.1 4.2
6211 OPEB Pay as You Go 1.3 1.3 1.4 1.4 1.4 1.5 1.8
6000 Operating Expenditures 6.7 6.1 5.4 5.4 5.6 5.7 5.8
7200 Grants & Awards 0.2 0.2 0.2 0.2 0.2 0.2 0.3
7400 Utilities 0.6 0.6 0.6 0.6 0.6 0.6 0.6
8060 Internal Service Charges 2.4 2.4 2.6 2.6 2.8 3.0 3.2
8900 Debt Service 1.9 1.9 1.9 1.9 1.9 1.9 1.9
44.7$ 42.8$ 43.1$ 43.1$ 43.7$ 44.6$ 45.7$
GASB 45 Retiree Medical Actuarial 0.6 0.6 0.6 0.5 0.4 0.3 0.2
Additional Discretionary Payment - Pension 4.6 4.9 0.4 0.4 0.4 0.4 0.4
49.9$ 48.3$ 44.1$ 44.0$ 44.5$ 45.3$ 46.3$
Capital Transfers Out to GFAR 3.4 3.4 0.6 0.6 0.6 0.6 0.6
Transfer to Internal Service Funds 0 0 0 0 0 0 0
Pension/OPEB Transfer to Pension Trust Fund 0 0 0 0 0 0 0
Allocate to Compensated Absences 0 0 0 0 0 0 0
Allocate to Vehicle Maintenance and Stores Surplus 0 0 0 0 0 0 0
Allocate to Property Surplus Reserve 0 1.2 0 0 0 0 0
53.3$ 52.9$ 44.7$ 44.6$ 45.1$ 45.9$ 46.9$
-$ (1.2)$ (2.0)$ (0.4)$ -$ 0.2$ 0.3$
* 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)
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