03 Staff Report - Proposed Budget for FY 2004/05
DATE: TO: FROM: SUBJECT: MEETING DATE: 05-17-04 ITEM NO. 3 COUNCIL/AGENCY AGENDA REPORT MAY 14,2004 TIVE DIRECTOR CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUDGET
FOR FY 2004/05 AND THE PROPOSED REDEVELOPMENT AGENCY BUDGET FOR FY 2004/05 RECOMMENDATION: Consider the Town of Los Gatos Proposed Operating and Capital Budget for FY 2004/05 and the
Proposed Redevelopment Agency Budget for FY 2004/05, and provide direction for bringing forward a FY 2004/05 Operating and Capital Budget for adoption. BACKGROUND: On May 7, 2004, the
Town Council received a copy ofthe Proposed Operating and Capital Budget for FY 2004/05 for the Town of Los Gatos and the Redevelopment Agency. This budget incorporates the Proposed
FY 2004 -2009 Capital Improvement Program (presented in more detail in a separate document) and the Proposed FY 2004/05 Redevelopment Agency budget. The Proposed Operating and Capital
Budget for FY 2004/05 represents the Town Manager's recommended comprehensive financial plan to provide services to the Town of Los Gatos. DISCUSSION: At the May 17, 2004 Town Council
meeting, the Council will consider the proposed budget. Attached to this report is a revised Financial Summaries package that is intended to replace the original Financial Summaries
in the budget binder package delivered to Town Council on Friday, May 7th • Because the Financial Summaries were the last schedules to change in a dynamic process of smaller adjustments
made in finalizing the budget, some small typos and other edits were necessitated based upon staff s review ofthe original financial summary data supplied to the Town Council. There
are also additional pages of summary information such as General Fund Revenues and Expenditures By Category and additional personnel position count and FTE presentations. Virtually all
the changes to the summary pages are of a minor nature, involving corrections ?f small PREPARED BY: Pamela S. Jacobs Assistant Town Manager Reviewed by: __'_Assistant
Town Manager __Attorney __Clerk -:1Finance __Community Development Revised: 5/14/04 12:41 pm Reformatted: 5/3% 1
PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: CONSIDER THE PROPOSED OPERATING AND CAPITAL BUDGET FOR FY 2004/05 AND THE PROPOSED REDEVELOPMENT AGENCY BUDGET FOR FY 2004/05 (May 14,2004) typos
etc. However, there are a couple of changes that deserve special highlighting: PageUI-6 (Total Town and RDA Expenditures) Estimated Prior Year Carryforwards on CIP projects were revised
based on updated estimates from $4.2 million to $3.5 million. Page 111-11 (General Fund Balance Activity) This presentation is replaced by an updated version (Page III-14)
in which estimated ,year-end .FY 2004/05 fund balance designations are adjusted to provide potential bridge funding sources over'the next two fiscal years in response to the increased
two-year state budget "takes" discussed below. One item of special note is the revision of the Reserve for Economic Uncertainty, which was erroneously presented as $4.0 million, the
revised financial summary keeps t}:1is balance intact at $3.7 million. Addressing the Impacts of of the Governor's May Revised State Budget . Since the proposed.budget was distributed
to Council on May 7th, the Governor released his "May Revised" State budget. The Governor's proposed budget includes'an arrangement whereby cities, counties, special districts and redevelopment
agencies make a two-year contribution of$1.3 billion towards soiving the State;s budget deficit. For two years, cities, counties, and special districts would contribute '$350 million;
redevelopment agencies would contribute $250 million. In exchange, he pledges to ,lead a campaign to secure legislative and voter support in November 2004 for a constitutional amendment
with revenue and mandate protections equivalent to or better than the, Local Taxpayers and Public Safety Protection Act sponsored by the League ofCalifornia Cities. The Governor has
personally committed to bring the same leadership he exercised with' workers' compensation reform and Proposition 57 and 58 to the passage ofthe new constitutional amendment. In the
absence absence of an agreement, the Governor is expected to oppose the LOCAL initiative. The League of California Cities Board has approved an allocation recommendation for the $350
million city contribution to the Governor and Legislature for consideration. The estimate for the Town of Los Gatos is $475,439 for each of the next two years. The. California Redevelopment
Association has provided an estimate of Los Gatos' share of redevelopment contributions of $303,000. Staff is recommending that the Town utilize excess ending fund balance to cover the
additional property tax shifts for FY 2004/05 and FY 2005/06. The Tier I budget assumed a $400,000 State take in property taxes; thus, an additional $100,000 would be allocated from
the ending fund balance to cover this'amount. Another $500,000 would be allocated to cover the amount expected in FY 2005/06.
PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: CONSIDER THE PROPOSED OPERATING AND CAPITAL BUDGET FOR FY 2004/05 AND THE PROPOSED REDEVELOPMENT AGENCY BUDGET FOR FY 2004/05 (May 14, 2004) At
$303,000, the estimated property tax shift for the Redevelopment Agency is less than the $400,000 included in the proposed budget, so staffis not recommending any adjustment at this
time. Staff also recommends maintaining the remaining fund balance as undesignated at this time, rather than the customary practice ofdesignating it for the Capital Improvement Program,
until we are clear that the funds are not needed to address further State actions or other unanticipated events. At the· first qmirter review, staffwill confirm the ending fund balance
and the State situation. At that time, staff may recommend allocating a portion of the ending fund balance to restore some of the materials budget for the library and
to provide for critkal training Town-wide. Budget Presentation and Discussion It is recommended that the review and discussion ofthe proposed budget follow the format outlined below:
••••• Opening Comments Budget Overview Department Overviews Q & A Following Each Department Public Comments Town Manager Finance Director Department Directors and Others Town Council
This format allows for Council to seek clarification and provide comments following each department presentation. The public would then be invited to provide comments following the completion
of all the department presentations. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: The fiscal impact is presented in
summary form in the Financial Summaries chapter ofthe Proposed Operating and Capital Budget for FY 2004/05. Attachments: 1. Proposed Operating and Capital Budget for FY 2004/05 (Previously
Distributed) 2. Replacement Pages for Financial Summaries 3. List ofresidents submitting individual form letters regarding the library budget (one example of the letter is included in
this attach
ment) --_ ..
__.._---_.. ._-----_._._.....-._..... ..- __.. ----_..__
April 2004 FRIENDS OF LOS GATOS PU8lJC UBRARY t<fir: PI VED MAY 1 0 2004 f \ YOR &TOViN CmiNCn ·Dear mayor Steve Glickman, Vice Mayor Mike Wasserman and
Council Members , L S,andy Decker, Joe Pirzynskyand Diane McNutt: As a Friend ofLos Gatos Library I thank you for your past support of the library .and wish you well as you pursue the
arduous task of making financial ends meet in a difficult economic year. As a user and library supporter, I am naturally concerned about possible cuts in library services that could
effect the 20,000 borrowers of our 30,000 highly educated residents. As you you weigh your options, please keep in mind that the library is an important part ofthe lives ofmany Los Gatans.
Cuts in service would mean hardship and inconvenience to citizens of ail ages. As a friend ofthe library, I thank you for consideration ofmy comments, and thanks again for
doing a difficult job well. ' , Sincerely, ATTACHMENT 3
April 20, 2004 2004-2005 ANNUAL BUDGET FRIENDS OF THE LIBRARY -SUPPORT LETTERS A. Bikiewiz Adele Lawrence Alice Gunnell Alicia Barela Alicia Ross Allison Levy Amy Hansen Andrew & Mary
Chessin Ann Langdoc Anne Howell Apo Sezginer Bella Goins Betty McDonald Betty Jones Bety and George Dunbar Beverly Rodenbaugh Bill and Lee Cilker Bill and Fran Nelson Billie Sgarlato
Bobbie Slutman Carl & Kay Thoresen Carol Hadlock Carolyn Bowen Carolyn Allison Carroll and Toni Blackstock Catherine Brigs Charles T. and Ann J. Rainey Charles Thompson Charlotte Petulla
Cheryl Huddleston Col. And Mrs. AI Stewart Daryl A. Kaiser Diane Dreher Doris Weaver Doris Sanford Dorothy Creffield Dr. & Mrs. Borgia Elaine Van Bruggen Eleanor Muench Ellen Richardson
Eva Tatum & Carrol R. Tatum Florence Smith . Frank & Ruth Nelson Gene Donnell George & Betsy Dunbar Hal Bianchi Hassan Arafeh Helen Cheung Henry Jespersen Henry Zane Jacqueline Williams
James and Betty Rogers Jan Pujol Janice Salsbury Jay V. Stanger Jean Power Jeanette Rapp Jeanine Jeanine Olson Jeannette Beverly Jim and Carol Burt Jim & Kikue Sugai Jo Toy Jo-Ann Seiquist
Joan Crum John and Jean Nelson John and Eleanor Zielski Jon & Kristeen Pemberton Judy Etherington Judy Dutra Judy Anslinger Katy Ordon Louise Leone Lynette Vega Lynne Dahms Marci Hunsaker
Marcia Jensen Margaret Sohn Margaret J. Maclean Margaret Howell Margaret M. Morris Marianne & Bert Fry Marie Gordon Marie Johnson .Marilyn Masnaghetti Mart Fraser Marta Hood Mary Ann
Cook Mary Hoover Mr. and Mrs. Bill Traber Mr. & Mrs. Patrick Dougherty Mr. & Mrs. Richard McKim Mr. & Mrs. Kamimura Mr. & Mrs. George Heigho Mr. & Mrs. Ely Mr. & Mrs. Clovis T. Mirassou
Nan and Bob Bixler Nathan and Janelle Hendricks Norma A. Heidt Notia L. Smith Orpha Hogan Pamela Lawrence Patricia Veale Penny Morimoto Peter Tarrant Richard Fassler Richard Daily Rick
and Evelyn Neely Rita Baum Robert L. Zeiher Robert & Mary King Robert & Marge Rice .Robert Kahn Robert and Dale Hill Robert Numan N:\MGR\AdminWorkFiles\Misc\Friends of the
-Support2.wpd Page -1-
Roberta Treseder Ron and Sandy Harder Rose Butz Ruby Shew Sally Ashton Sara Morabito Scotty McEwen Shizu Ishimaru Summer Leigh Pearce Susan Lynott Sylvia Perry T. M. Norton Terry Hickey
The Girvans Theodore Schenk Thomas & Pauline Ferrito Virginia S. Bradt Vivian MacRae Wanda Kownacki Werner Barasch Unable to read name Unable to read name Unable to read name Unable
to read name Unable 'to read name Unable to read name Total 140 N:\MGR\AdminWorkFiles\Misc\Friends of the Library -Support2.wpd Page -2-
DATE: TO: FROM: COUNCIL AGENDA REPORT MAYl7, 2004 MAYOR AND TOWN COUNCIL MEETING DATE: 05/17/04 ITEM NO. 3 DESK ITEM: SUBJECT: DISCUSSION: AMEND PAGE ill-25 IN THE PROPOSED OPERATING
BUDGET FINANCIAL SUMMARIES This item amends the Proposed Operating and Capital Budget to correct an error in the Budgeted FTEs by Department schedule located on page III-25. The schedule
erroneously shows the Library Department's temporary staffnumber as .80 FTEs. This amendment corrects it to 4.50 FTEs. Attachment: Amendedpage ill-25-26 ofthe Proposed Operating and
Capital Budget for FY2004/05. PREPARED BY: STEPHEN CONWAY, Finance and Administration Services Director n:\fmance\council re orts\desk item. d. Reviewed by: Assistant Town Manager __Town
Attorney Clerk 5Q./Finance __Community Develppment Revised: 5/17/04 8:50 am Reformatted: 5/30/01
SUMMARY of POSITIONS Budgeted FTEs by Department Town Council Town Clerk Administration Town Manager's Department Police Department Community Services FY2004/05 Budgeted FTEs by Department
(Includes Converted Temporary Hours) Departments Town Council Office ofthe Town Clerk Town Clerk Administration Town Treasurer Town Attorney Town Manager's Department Community Development
Police Department Parks & Public Works Community Services Library Total Positions .... :> Authorized Positions 5.85 1.00 4.00 1.25 2.75 18.45 21.00 73.00 45.00 5.45 11.75 . -189.50·
Funded Staff Positions 5.85 1.00 3.50 1.25 1.50 16.05 19.60 65.30 37.00 4.45 11.00 166.50 Temporary Staff Hours converted to FTEs 0.18 1.25 3.65 0.80 4.50 10.38·: ! Total Budgeted Positions
5.85 1.00 3.50 1.25 1.50 16.23 19.60 66.55 40.65 5.25 15.50 Town Manager's Department includes Town Manager's Office, Human Resources, Finance & Administrative Services,
and Management Information Services. Temporary positions resultfrom seasonal, temporary, andpart-time labor needs. III -25
SUMMARY of POSITIONS Funded FTEs by Department Five Year Staffing Trend 180.00 160.00 140.00 120.00 100.00 80.00 60.00 40.00 20.00 iii Town Council • Office ofthe Town Clerk iii Town
Clerk Administration iii Town Treasurer • Town Attorney o Town Manager's Department iii Community Development III Police Department iii Parks & Public Works iii Community Services •
Library FY 00101 FY 01102 FY 02/03 FY03/04 FY04/0S 5.85 FY 03/04 Actuals FY 04/05 Proposed 5.85 1.00 4.00 3.50 1.25 1.25 1.75 1.50 16.30 16.05 18.60 19.60 73.00 65.30 41.00 37.00 4.45
4.45 10.75 11.00 4.00 1.25 1.75 16.30 18.60 73.00 41.00 4.45 11.00 177.20 FY 02/03 Actuals 5.85 4.00 1.25 2.75 15.20 19.75 77.00 35.70 4.70 11.50 '177.70 FY 01102 Actuals 5.85 4.00 1.25
2.75 13.50 20.00 66.00 34.30 3.25 11.50 161.90 FY 00/01 Actuals 5.35 Departments Town Council Office of the Town Clerk Town Clerk Administration Town Treasurer Town Attorney Town Manager's
Department Community Development Police Department Parks & Public Works Community Services Library Library Note -These FTEs represent Town stafffunded in annual budgets. Numbers do not
reflect temporary hours or unfilled positions. III -26