2021-020 - Approving the FY 2021/22 Operating Budget & FY 2021/22-2025/26 Capital Budget, New Appropriations, Other Adjustments, Other council Actions on 5/18/21, Minor Corrections, & Carry-forward AppropriationsRESOLUTION 2021-020
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE FISCAL YEAR (FY) 2021/22 OPERATING BUDGET AND FY 2021/22 —
2025/26 CAPITAL BUDGET, NEW APPROPRIATIONS, OTHER ADJUSTMENTS, OTHER
COUNCIL ACTIONS ON MAY18, 2021, MINOR CORRECTIONS, AND CARRY -FORWARD
APPROPRIATIONS
WHEREAS, Section 2.30.295(b) of the Los Gatos Town Code requires the Town
Manager to annually prepare and submit a budget to the Town Council and be responsible for
its administration; and
WHEREAS, the Town Manager submitted to the Town Council and Finance
Commission a Proposed Operating Budget for FY 2021/22 on April 19, 2021; and
WHEREAS, the Town Manager submitted to the Town Council and Finance
Commission a Proposed Five -Year Capital Improvement Program for FY 2021/22 — 2025/26 on
April 19, 2021; and
WHEREAS, the Town Council conducted a noticed public hearing on the Proposed
Operating Budget and Capital Improvement Program on May 18, 2021; and
WHEREAS, per Measure A, the Town Council has considered and reviewed the
Finance Commission written recommendations to the Town Council on the said proposed
Budget and Capital Improvement Program during public hearings on May 18, 2021; and
WHEREAS, per Measures G and A, the Town Council has considered and reviewed
the Finance Commission written recommendations to the Town Council regarding the potential
allocation of Measure G proceeds during its public hearing on May 18, 2021; and
WHEREAS, the Town Council has determined the use of the $1.2 million
accumulated Measure G Funds Reserve (through June 30, 2020) to be allocated 50% for
operating expenditures in FY 2020/21 and FY 2021/22, and 50% for capital purposes; and
WHEREAS, the Town Council has determined the use of Measure G proceeds in
2020/21 to be 50% for operating expenditures in FY 2020/21 and 50% for capital purposes; and
WHEREAS, the Town Council has determined the use of Measure G proceeds in FY
2021/22 to be 50% for operating expenditures in FY 2021/22 and 50% for capital purposes; and
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WHEREAS, the Town Council has determined the use of Measure G proceeds in the
remainder of the forecast (FY 2022/23 - FY 2026/27) to be 50% for operating expenditures and
50% for capital purposes; and
WHEREAS, the Town Council has determined that the Five -Year Forecast include a
2% base salary inflation in the FY 2021/22 budget and the remainder of the forecast period (FY
2022/23 - FY 2026/27); and
WHEREAS, the estimated FY 2021/22 property tax revenue increased by $171,714
based on updated information received from the Santa Clara County Assessor Office in May and
updated information related to the sales of North 40 Phase 1; and
WHEREAS, on March 11, 2021, the president of the United States signed into law
the American Recovery Plan Act (ARPA) which among other things established four eligible uses
for said funds, and among those uses identified Revenue Replacement: "for the provision of
government services to the extent of the reduction in revenue of such metropolitan city,
nonentitlement unit of local government, or county due to the COVID-19 public health
emergency relative to revenues collected in the most recent full fiscal year of the metropolitan
city, nonentitlement unit of local government, or county prior to the emergency; or"; and
WHEREAS, the Town Council has determined that a portion of the proceeds of the
American Recovery Plan Act (ARPA) up to the amount of $1,362,910 will be used for Revenue
Replacement and balancing the FY 2020/21 budget; and
WHEREAS, the Town Council has determined that a portion of the proceeds of the
American Recovery Plan Act (ARPA) up to the amount of $1,912,536 ($1,562,536 plus $350,000)
will be used for Revenue Replacement and balancing the FY 2021/22 budget; and
WHEREAS, the Town Council has determined that to further balance the budget,
the Town should cancel in FY 2021/22 the actuarial determined Other Post -Employment
Benefits (OPEB) payment to the extent it is necessary (the actuarial determined scheduled
amount is $508,000 for FY 2021/22 and remaining budgeted payment is $148,693); and
WHEREAS, the Town Council has determined the use of the $1.2 Million in the
Surplus Property Reserve (Winchester property sale proceeds) be used for capital purposes;
and
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WHEREAS, the Town Council has determined that $500,000 of the identified capital
funding should be spent on the Roadside Fuel Reduction Project; and
WHEREAS, on June 1, 2021, Town Council considered and reviewed the proposed
Budget and Capital Improvement Program making final determinations.
NOW, THEREFORE, BE IT RESOLVED: that the Town Council hereby adopts as the
Operating Budget for the Town of Los Gatos for the 2021/22 fiscal year as depicted in Exhibit A
entitled "Total Town Revenues and Expenditures by Fund" including the first year (FY 2021/22)
of the Town's Capital Improvement Program budget as contained in the Town's FY 2021/22 —
2025/26 Capital Improvement Program.
BE IT FURTHER RESOLVED, that the final adopted Budget documents include minor
corrections and approved appropriations for unspent prior year allocations, and that they be
carried forward from prior years in a Reserve for Encumbrances whereby within each fund
there is an amount sufficient to cover approved outstanding encumbrances as of June 30, 2021.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 1st day of June, 2021 by the following vote:
COUNCIL MEMBERS:
AYES: Mary Badame, Matthew Hudes, Rob Rennie, Maria Ristow, Mayor Marico Sayoc
NAYS: None
ABSENT: None
ABSTAIN: None
ATTEST:
TOWN CLERK OF THE .OWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: 60/i7
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SIGNED:
MAYOR OF THE TOW
LOS GATOS, CALIFORNIA
DATE: 'it
cV 6-
OS GATOS
Resolution 2021-020
June 1, 2021
TOTAL TOWN REVENUES AND EXPENDITURES BY FUND
2021/22 Estimated 2021/22
Proposed Budget Recommended
Budget Revision Budget
REVENUES
General Fund $47,092,489 $ 171,714 (1) $ 47,264,203
Special Revenue Funds 271,003 - 271,003
Internal Service Funds 4,095,437 - 4,095,437
Trust Funds 59,100 - 59,100
Capital Project Funds (does not include carryforwards) 4,735,640 2,251,047 (2) 6,986,687
Successor Agency Funds 3,912,200 - 3,912,200
TOTAL REVENUES $60,165,869 $ 2,422,761 $ 62,588,630
OTHER FUNDING SOURCES
Designated One -Time Use of General Fund Reserves 2,453,988 $ 2,601,047 5,055,035 (3)
TOTAL TOWN REVENUES & OTHER FUNDING SOURCES $62,619,857 $ 5,023,808 $ 67,643,665
TOTAL TOWN EXPENDITURES, TRANSFERS OUT & CARRYFORWARD APPROPRIATION
General Fund $46,312,162 $ 2,420,717 (4) $ 48,732,879
Special Revenue Funds 321,243 - 321,243
Internal Service Funds 5,226,055 - 5,226,055
Trust Funds 88,955 - 88,955
Capital Project Funds (does not include carryforwards) 6,919,352 500,000 (5) 7,419,352
Successor Agency Funds 3,811,432 - 3,811,432
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES $62,679,199 $ 2,920,717 $ 65,599,916
GENERAL FUND SOURCE(USE) OF FUND BALANCES
OTHER FUNDS SOURCE(USE) OF FUND BALANCES
TOTAL SOURCE(USE) OF FUND BALANCES
$ 3,234,315
(3,293,657)
$ (59,342) $ 2,103,091
$ 3,586,359
(1,542,610) (6)
$ 2,043,749
(1) $171,714 Additional Estimated Property Tax
(2) Additional Transfer to Capital Projects (GFAR)
$590,581 - 50% of 6/30/2020 Accumulated Measure G Proceeds
$460,466 - 50% of Anticipated FY 2020/21 Measure G Proceeds
$1,200,000 - Surplus Property
(3) Designated One -Time Use of the General Fund Reserves during FY 2021/22
$2,253,988 - ARPA
$2,801,047 - Transfer to Capital Projects (GFAR)
(4) General fund Expenditures
$2,251,047 - Increase to Capital Transfer
$528,976 - Increase to Salaries and Benefits - 2% Accelerator built in
$359,307 - Decrease to OPEB Actuarial Payment
(5) $500,000 - Additional Funding for Roadside Fire Fuel Management
(6) Other Funds Source (Use) represents planned one-time uses of Internal Service Funds, Special Revenue
Funds, Trust Funds, and Capital Project Funds primary for infrastructure and equipment investment.
Numbers may differ between exhibits due to rounding.
EXHIBIT A
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