Addendum - 2003/04 Second Quarter Budget Performance
DATE: TO: FROM: COUNCIL AGENDA REPORT FEBRUARY 24,2004 MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGER MEETING DATE: 2/24/04 ADDENDUM SUBJECT: 2003/04 SECOND QUARTER BUDGET PERFORMANCE
AND STATUS REPORT -SIX MONTHS ENDING DECEMBER 31, 2003 In addition to the budget adjustments to the Town's major revenue sources noted in the 2nd Quarter Budget Performance Report for
the six months ending December 31,2003, staff is recommending the following adjustment to the FY 2003/04 Operating Budget to recognize miscellaneous estimate changes and additional activity
not available at the time of budget preparation. GENERAL FUND: REVENUES 1. Increase Department ofJustice Fingerprinting Revenue (4020-46079) by $12,000. Revenue was not budgeted in the
current year as the fingerprinting service is a new service and revenues were unknown. With activity to date, year-end revenues estimates are expected to total approximately $12,000
by fiscal year end. . 2. Increase State Booking Fees (4030-45016) by $84,448. At the time ofbudget preparation, this annual State funded revenue was not expected to be received in FY
2003/04 due to budgetary cuts at the State level. Since then, the decision to fund local government was made and the Town received revenue for this year. 3. Increase SCC Seized Assets
Revenue (4040-45430) by $25,000. Unanticipated revenue was received from Santa Clara County for the Town's allocated portion of the distribution of assets seized during Special Task
Force case work. 4. Decrease Traffic Safety Revenue (4050-47090) by $23,100. Traffic citation revenue has hot matched expected revenues to date, and is estimated to fall short of budgeted
revenues through the year end. PREPARED BY: .' ,FInance and Administrative Services Director N:\FINANCE\Qtrly FmanClal Reports\FY 2004 'l--2nd Qtr\MID-YEAR BUDGET
ADJUSTMENT ADDENDUM.wpd Reviewed by: 0S.J Assistant Town Manager 1tlLL:Town Attorney Clerk £.,. Finance __. _Community Development Revised: 2/19/04 10:48 am Reformatted: 5/30102
PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: 2003/04 SECOND QUARTER BUDGET PERFORMANCE AND STATUS REPORT -SIX MONTHS ENDING DECEMBER 31, 2003 DATE: February 18,2004 5. Decrease Planning Permit
Revenue (3120-46020) by $77,000. Continued economic impacts to local development is reflected in lower than expected Planning Permit revenue. At mid-point in the fiscal year, estimated
revenues are running below budget and are recommended to be reduced. 6. Increase Bldg/EleclMech Fees (3140-44020) by $192,QOO. Projected revenues are exceeding budgeted revenues due
in large part to building fees earned from a single development project. This budget increase reflects the revenue generated from this project. 7. IncreaseTree Removal Permit Revenue
(5020-44031) by $10,000. Revenues are exceeding anticipated budget and is recommended to be increased accordingly. 8. Decrease General Fund NPDES Fee Revenue(5030-46037) by $28,000.
This regulatory service fee was not collected as expected under planning permit guidelines and is recommended to be decreased to anticipated levels in the current budget year. The phasing-in
of this fee will be fully implemented in the next fiscal year. 9. Decrease Encroachment Permit Revenues (5Q30-44030) by $30,000. Revenues are less than expected and are recommended to
be reduced accordingly. 10. Increase Below Market Price Housing (BMP) Revenue (8030-46216) by ·$32,650. Actual r.evenues will exceed adopted budget revenues due to a process correction
in accounting for the expenditures in the Below Market Price program. The BMP revenue is a transfer ofaccumulated fees held in a deposit account until earned. This adjustment brings
revenues up tothe estimated reimbursement level without impact to General Fund balance. Total General Fund net revenue increase = $197,998 GENERAL FUND: EXPENDITURES 1. Increase Legal
Services expense in the BMP program (8030-61501) by $16,847. Unanticipated legal services were utilized in the current for review of the BMP program. This adjustment increases
appropriations to account for this unplanned expense. 2. Increase General Fund program expenditures for Retiree Sick Leave (4010-51751, 501051751,8510-51751, and 3110-51751) for a total
of$69,300, and decrease Non-Departmental Compensated Absences (1111-51756) for the offsetting amount of$69,300. This is an annual mid-year budget adjustment designed to appropriate funding
by program usage at the time known. As the budget increase offsets the budget decrease within the General Fund, there is no overall impacUo the General Fund. . -Total General Fund net
expenditure increase =$16,847
PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: 2003/04 SECOND QUARTER BUDGET PERFORMANCE AND STATUS REPORT -SIX MONTHS ENDING DECEMBER 31, 2003 DATE: February 18,2004 SPECIAL REVENUE FUNDS 1.
Increase CLEEP Grant Fund budget appropriations (270-0002-65018) for $35,378 and (270-0005) for $89,916. The FY 2001102 and FY 2002/03 CLEEP Grants have remaining funds available which
were not appropriated in the current year's adopted budget. This funding is currently in the Grant Fund's fund balance for the designated purpose of paying for CLEEP Grant project expenditures.
Staff recommends appropriating the grant funds to better reflect currenryear charges against current year budget funding. As this funding is legally obligated for CLEEP purposes only
in the Special Revenue Fund's fund balance, there is no fiscal impact to the General Fund. 2. Decrease Non-Point Source Fee Revenue (2225-46037) by $88,880. This regulatory service fee
was not collected as expected under planning permit guidelines, and is recommended to be decreased to anticipated levels in the current budget year. The phasing-in ofthis fee will be
fully implemented in the next fiscal year. TRUST AND AGENCY FUNDS 1. Increase Library Trust Fund Revenues (771 0-48743) by $7,000. Donations for the Los Gatos Local History project are
exceeding estimates. Staffrecommends increasing revenue to reflect the donations. ·2. Increase Library Trust Fund Expenditures (7710-65060) by $20,000. Expenses for the Los Gatos Local
History project are greater than anticipated under the adopted budget due to a larger scope of work undertaken in this project. This appropriation will be funded from the increase in
donations and the $44,310 fund balance within the Library Trust Fund. REDEVELOPMENT AGENCY FUNDS 1. Increase RDA Administration Fund expense appropriations (9301-72077) by $10,000. A
portion ofmarketing services provided under the Los Gatos Chamber ofCommerce contract are specific to the Redevelopment Agency's downtown project area and benefit the economic vitality
ofthe businesses located within this district. Staffrecommends the Redevelopment Agency fund the applicable proportion of the marketing services, thereby increasing the budgetary expense
within the Agency's Administration Fund. This in tum decreases the budgeted grant expense in the General Fund under 8040-72077. 2. Increase the RDA Housing Fund expense appropriations
(9601-72118) by $40,195. Under a June 2000 contract with Habitat for Humanity, the·RDA funded a grant in the amount of $260,000 for the purchase of Town owned property, and an additional
$50,000 grant for development related to this property. Prior year development expenses were incurred and funded in the amount of$9,805, leaving a grant balance of$40,195.
Recently, the Habitat for Humanity Agency invoiced the RDA for a portion of the remaining balance for expenses
PAGE4 MAYOR AND TOWN COUNCIL SUBJECT: 2003/04 SECOND QUARTER BUDGET PERFORMANCE AND STATUS REPORT -SIX MONTHS ENDING DECEMBER 31, 2003 DATE: February 18,2004 incurred with the recent
development of the property, however budget appropriations were not included in the current year's adopted budget. This mid-year adjustment will provide budget appropriations for these
expenditures. Attachments: A corrected FTE page for the Community Development Department is included in th(s addendum to properly designate current year defunded positions.
ro COMMUNITY DEVELOPMENT DEPARTMENT 03 COMMUNITY DEVELOPMENT DEPARTMENT STAFFING Full Time Equivalent (FTE) 01/02 02/03 02/03 03/04 Town Staff Actuals Adopted Adjusted Adopted Community
Development Director 1.00 1.00 1.00 1.00 Asst. Community Development Director 1.00 1.00 1.00 1.00 Administrative Analyst 0.75 0.75 0.75 0.80 * Administrative Secretary 1.00 1.00 1.00
1.00 Secretary III 1.00 1.00 . 1.00 1.00 Associate Planner 4.00 4.00 4.00 4.00 Planner 1.00 1.00 1.00 1.00 ** Assistant Planner 1.00 1.00 1.00 1.00 Counter Technician 2.00 2.00 2.00
2.00 Code Compliance Officer 1.00 1.00 1.00 1.00 Sr. Building Inspector 1.00 1.00 1.00 1.00 Building Inspector 4.00 4.00 4.00 4.00 Plan Check Engineer 1.00 1.00 1.00 1.00 ** TOTAL PROGRAM
FTEs 19.75 19.75 19.75 19.80 Temporary StaffHours Intern Assistant Planner TOTAL ANNUAL HOURS * Defunded .40 FTE ** Defunded 2.0 FTE 01/02 Actuals' 1,040 1,040 2,080 02/03 Adopted 1,040
1,040 2,080 02/03 Adjusted 1,040 1,040 2,080 03/04 Adopted 1,040 1,040 '. 'i' J • j __ • .: ...-". J' • \.