Staff Report.Budget
PREPARED BY: Stephen Conway
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney,
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/01/2021
ITEM NO: 4
DATE: May 26, 2021
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)
2021/22 Operating Budget and FY 2021/22 – 2025/26 Capital
Improvement Program (CIP), New Appropriations, other Council Actions
on May 18, 2021, Minor Corrections, and Carry-Forward Appropriations
b. Adopt a Resolution Approving Commitment of Fund Balances under
GASB 54.
c. Approve FY 2020/21 Budget Adjustments:
a) Major Revenue Adjustments to Match Year-End Estimated Revenues
as Directed by the Town Council on May 18, 2021 and as Determined
from Updated Information
i. Anticipated American Recovery Plan Act (ARPA) revenue increase
in the amount of $2,884,315,
ii. Property Tax revenue Increase in the Amount of $703,202,
iii. Sales Tax Revenue Decrease in the Amount of $444,400,
iv. Measure G District Tax Revenue Decrease in the Amount of
83,369, and
v. Business License Tax Revenue Increase in the Amount of
$200,000.
b) Expenditure Increases to Reflect Past Actions:
i. In the Amount of $408,807 to Match Actual Transfer to CalPERS
from the CEPPT Trust ($406,988) and from the Town General
Fund ($1,819) for Additional Discretionary Payment Based on the
Town Pension and OPEB Trusts Oversight Committee March 30,
2021 Action and
ii. In the Amount of $55,000 to the Chamber of Commerce for
Development of Destination Marketing from the Anticipated
ARPA Proceeds.
PAGE 2 OF 3
SUBJECT: Operating and Capital Budgets
DATE: May 26, 2021
RECOMMENDATION:
Operating and Capital Budgets
a. Adopt a resolution approving the Town of Los Gatos Fiscal Year (FY) 2020/21 Operating
Budget and FY 2021/22 – 2025/26 Capital Improvement Program (CIP), new appropriations,
other approved adjustments, other Council actions on May 18, 2021, minor corrections, and
carry-forward appropriations.
b. Adopt a resolution approving commitment of fund balances under GASB 54.
c. Approve FY 2020/21 Budget Adjustments:
a) Major Revenue Adjustments to Match Year-End Estimated Revenues as Directed by the
Town Council on May 18, 2021 and as Determined from Updated Information
i. Anticipated American Recovery Plan Act (ARPA) revenue increase in the amount of
$2,884,315,
ii. Property Tax revenue increase in the amount of $703,202,
iii. Sales Tax revenue decrease in the amount of $444,400,
iv. Measure G District Tax revenue decrease in the amount of 83,369, and
v. Business License Tax revenue increase in the amount of $200,000.
b) Expenditure increases to reflect past actions:
i. In the amount of $408,807 to match actual transfer to CalPERS from the CEPPT
Trust ($406,988) and from the Town General Fund ($1,819) for Additional
Discretionary Payment based on the Town Pension and OPEB Trusts Oversight
Committee March 30, 2021 action and
ii. In the amount of $55,000 to the Chamber of Commerce for development of
destination marketing from the anticipated ARPA proceeds.
BACKGROUND:
On May 18, 2021, the Town Council conducted public hearings to discuss the proposed FY
2021/22 Operating and Capital Summary Budget and Proposed FY 2021/22 – 2025/26 Capital
Improvement Program. The budget hearing was preceded by four public Finance Commission
meetings at which Commissioners discussed the Proposed Budgets and provided
recommendations to the Town Council per Measures A and G. The Town Council considered
public testimony, discussed both documents, considered the Finance Commission
recommendations, and directed staff to bring back the documents for final approval
incorporating the Council recommendations.
In addition, the Proposed Operating 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 acknowledges the economic realities associated with
the global COVID-19 pandemic and other unforeseen budgetary impacts. Even with areas of
continued uncertainty, this Operating Budget positions the organization well for continued
excellence in service delivery to the community.
PAGE 3 OF 3
SUBJECT: Operating and Capital Budgets
DATE: May 26, 2021
BACKGROUND (continued):
The Capital Budget also provides for limited, continued strategic investments toward important
wildfire vegetation management 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 18, 2021 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.
COORDINATION:
The preparation of the budget documents involved the participation of all Town Departments.
FISCAL IMPACT:
The fiscal impact is presented in summary form in the Financial Summaries chapter of the
Proposed Operating and Capital Budget for FY 2021/22.
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 2021/22 Operating Budget and FY 2021/22 –
2025/26 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. Public Comment