Attachment 1 - Resolution Approving FY 2022-23 Operating Budget and FY 2022-23-2026-27 Capital1 of 4
Resolution 2022- June 7, 2022
DRAFT RESOLUTION 2022-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE FISCAL YEAR (FY) 2022/23 OPERATING BUDGET AND FY 2022/23 –
2026/27 CAPITAL BUDGET; NEW APPROPRIATIONS; OTHER ADJUSTMENTS;
AMERICAN RESCUE PLAN ACT RECOGNITION; EMPLOYEE COMPENSATION ITEMS
CONSIDERED ON JUNE 7, 2022; 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 2022/23 on April 18, 2022; and
WHEREAS, the Town Manager submitted to the Town Council and Finance
Commission a Proposed Five-Year Capital Improvement Program for FY 2022/23 – 2026/27 on
April 18, 2022; and
WHEREAS, the Town Council conducted a noticed public hearing on the Proposed
Operating Budget and Capital Improvement Program on May 17, 2022; 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 the public hearing on May 17, 2022; 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 17, 2022; and
WHEREAS, the Town Council previously allocated residual unallocated Measure G
revenues for budget balancing and $679,443 will be used to balance the FY 2022/23 budget;
and
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Resolution 2022- June 7, 2022
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 estimated FY 2022/23 business license tax revenue increased by
$100,000 based on current trends; and
WHEREAS, the Town Council has determined that to further balance the budget,
the Town should reimburse $902,579 from available Other Post-Employment Benefits (OPEB)
115 Trust assets for retiree pay-as-you go expenses in FY 2022/23.
WHEREAS, the Town Council has determined the use of American Rescue Plan Act
(ARPA) for FY 2021/22 and FY 2022/23 as illustrated in Exhibit B entitled “ARPA Worksheet”
including the allocation of $2.9 Million in ARPA proceeds for capital purposes; and
WHEREAS, the Town Council has determined that a portion of the proceeds of the
ARPA up to the amount of $1,645,281 will be used for Revenue Replacement and balancing the
FY 2022/23 budget; and
WHEREAS, on June 7, 2022, Town Council considered and reviewed the proposed
Budget and Capital Improvement Program making final determinations.
NOW, THEREFORE, BE IT RESOLVED: that the Town Council hereby adopts as the
Operating Budget for the Town of Los Gatos for the 2022/23 fiscal year as depicted in Exhibit A
entitled “Total Town Revenues and Expenditures by Fund” including the first year (FY 2022/23)
of the Town’s Capital Improvement Program budget as contained in the Town’s FY 2022/23 –
2026/27 Capital Improvement Program.
BE IT FURTHER RESOLVED, that the final adopted Budget documents include minor
corrections and approved appropriations for unspent prior year allocations, and that they be
carried forward from prior years in a Reserve for Encumbrances whereby within each fund
there is an amount sufficient to cover approved outstanding encumbrances as of June 30, 2022.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the 7th day of June, 2021 by the following vote:
COUNCIL MEMBERS:
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Resolution 2022- June 7, 2022
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
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Resolution 2022- June 7, 2022
TOTAL TOWN REVENUES AND EXPENDITURES BY FUND
EXHIBIT A
2022/23 Estimated 2022/23
Proposed Budget Recommended
Budget Revision Budget
REVENUES
General Fund 48,378,548$ 1,626,919$ (1)50,005,467$
Special Revenue Funds 1,775,576 - 1,775,576
Internal Service Funds 4,125,957 - 4,125,957
Capital Project Funds (does not include carryforwards)12,753,575 2,900,000 (2)15,653,575
Successor Agency Funds 3,799,926 - 3,799,926
TOTAL REVENUES 70,833,582$ 4,526,919$ 75,360,501$
OTHER FUNDING SOURCES
Designated One-Time Use of General Fund Reserves 2,350,000 679,443$ 3,029,443 (3)
TOTAL TOWN REVENUES & OTHER FUNDING SOURCES 73,183,582$ 5,206,362$ 78,389,944$
TOTAL TOWN EXPENDITURES, TRANSFERS OUT & CARRYFORWARD APPROPRIATION
General Fund 50,338,548$ 2,306,362$ (4)52,644,910$
Special Revenue Funds 1,705,178 12,246 (4)1,717,424
Internal Service Funds 6,427,499 - 6,427,499
Capital Project Funds (does not include carryforwards)13,081,287 2,900,000 (2)15,981,287
Successor Agency Funds 3,799,752 125 (4)3,799,877
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES 75,352,264$ 5,218,733$ 80,570,997$
GENERAL FUND SOURCE(USE) OF FUND BALANCES 390,000$ 390,000$
OTHER FUNDS SOURCE(USE) OF FUND BALANCES (2,558,682) (2,571,053) (5)
TOTAL SOURCE(USE) OF FUND BALANCES (2,168,682)$ (12,371)$ (2,181,053)$
(1) Additional General Fund Revenues
$902,579 OPEB Trust Reimbursement for Retiree Medical
$624,340 Additional ARPA Proceeds for Revenue Replacement
$100,000 Additional Business License Tax
(2) Additional Transfer to Capital Projects (GFAR)
$2,900,000 General Fund Reimbursement Revenues (ARPA)
(3) Designated One-Time Use of the General Fund Reserves during FY 2022/23
$2,350,000 - Transfer to Capital Projects (GFAR)
$679,443 - Measure G Residual for Operation
(4) General fund Expenditures
$2,318,733 - Increases to Negotioated Salary Increases
(5) Other Funds Source (Use) represents planned one-time uses of Internal Service Funds, Special Revenue
Funds, Trust Funds, and Capital Project Funds primary for infrastructure and equipment investment.
Numbers may differ between exhibits due to rounding.
FY 2020/21 FY 2021/22 FY 2022/23 GRAND
BUDGET ADJ.
ACTUALS ACTUAL/ESTIMATED ESTIMATED TOTAL
ARPA FUNDS REVENUE RECOGNIZED 200,911$ 3,413,961$ 3,614,872$ 7,229,744$
GOV SERVICES (WAIVERS,CUP&ADA,DIRECT GRANTS)200,911 200,911
REVENUE LOSS -GOV SERVICES (PUBLIC SAFETY)3,413,961 3,614,872 7,028,833
200,911$ 3,413,961$ 3,614,872$ 7,229,744$
GENERAL FUND ARPA REPLACEMENT REVENUES AVAILABLE 200,911 3,413,961 3,614,872 7,229,744
LESS APPROVED USES TO BE BUDGETED:
PARKLETS (DOWNTOWN IMPVTS PROJECT)680,000 250,000 930,000
RENT WAIVERS 121,255 341,452 283,756 746,463
CUP/ADA FEE WAIVERS 19,656 27,672 27,672 75,000
DESTINATION MARKETING 55,000 55,000
K-RAILS (DOWNTOWN IMPVTS PROJECT)68,000 68,000
PROMENADES 80,000 120,000 200,000
DIRECT GRANTS 60,000 50,000 110,000
ENHANCED SENIOR SERVICES 500,000 500,000
CAPITAL IMPROVEMENT PROGRAM SUPPORT TRANSFERS 2,900,000 2,900,000
REQUIRED FOR GF BALANCING OF OPERATING REV_EXP - 1,645,281 1,645,281
TOTAL ALLOCATIONS OF GENERAL FUND ARPA REPLACEMENT REVENUES 200,911$ 1,802,124$ 5,226,709$ 7,229,744$
GENERAL FUND ARPA REPLACEMENT REVENUE UNCOMMITTED -$ 1,611,837$ (1,611,837)$ -$
AMERICAN RESCUE PLAN ACT (ARPA) SUMMARY WORKSHEET
EXHIBIT B