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10 Staff Report - Operating and Capital Budgets~f4 N 0 COUNCIL AGENDA REPORT Og GASO DATE: APRIL 27, 2007 MEETING DATE: 05-07-07 ITEM NO: 10 TO: MAYOR AND TOWN COUNCIL FROM: DEBRA J. FIGONE, TOWN MANAGER SUBJECT: OPERATING AND CAPITAL BUDGETS A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2007-2008 B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL IMROVEMENT PROGRAM FOR FISCAL YEAR 2007-2012 RECOMMENDATION: 1. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2007-2008 2. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL IMROVEMENT PROGRAM FOR FISCAL YEAR 2007-2012 BACKGROUND: On April 27, 2007, the Town Council received a copy of the Proposed Operating and Capital Budget for FY 2007/08 for the Town of Los Gatos and the Redevelopment Agency. This budget incorporates the Proposed FY 2007-2012 Capital Improvement Program (presented in more detail in a separate document) and the Proposed FY 2007/08 Redevelopment Agency budget. The Proposed Operating and Capital Budget for FY 2007/08 represents the Town Manager's recommended comprehensive financial plan to provide services to the Town of Los Gatos. DISCUSSION: Budget Presentation At the May 7, 2007 Town Council meeting, the Council will consider the proposed budget. It is recommended that the review and discussion of the proposed Operating budget follow the format outlined below: PREPARED BY: PAMELA S. JACOBS GLcc L-. ASSISTANT TOWN MANAGER NAN1GR\PJacobs\07-08 Bud,et\2007-08 Staff report.doc Reviewed by: Assistant Town Manager Town Attorney Clerk Administrator Finance Community Development F PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: OPERATING AND CAPITAL BUDGETS A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2007-2008 B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL IMROVEMENT PROGRAM FOR FISCAL YEAR 2007-2012 APRIL 27, 2007 • Opening Comments • Operating Budget Overview • Department Overviews • Q&A Following Each Department • Public Comment Town Manager Finance Director Department Directors and Others Town Council The 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. It is recommended that the review and discussion of the proposed Capital Improvement Program follow the format outlined below: • Opening Comments • Capital Budget Overview • Capital Improvement Program • Q&A Following Each Program Area • Public Comment Town Manager Finance Director Parks and Public Works Interim Director Town Council Budget Discussion and Issues for Consideration The transmittal letter in the FY 2007/08 Proposed Operating Budget provides an executive summary of the budget, including the major issues affecting the budget, the Five-Year Financial Plan, budget assumptions, highlights of the proposed budget, and continuing and new initiatives being undertaken by Town staff. Any changes to the proposed operating and/or capital budget directed by Council and/or identified by staff as a "clean-up" item will be included for Council consideration in the resolution adopting the budget to be considered by Council on June 4, 2007. One of the issues for Council consideration is funding for United Way Silicon Valley for the 2-1-1 initiative. The 2-1-1 initiative will provide a three-digit number to connect people with health and human services, including but not limited to food and shelter, job training, senior and youth programs, and substance abuse intervention. The United Way has requested funding from all Santa Clara County cities and the County, with $5,000 requested from the Town specifically (Attachment 1). This request was not submitted in time for the FY 2007/08 community grant process. Staff recommends that Council consider providing one-time funding in the amount of $2,500, contingent upon the receipt of a report from the United Way outlining its 2-1-1 budget and implementation strategies. Future PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: OPERATING AND CAPITAL BUDGETS A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2007-2008 B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL IMROVEMENT PROGRAM FOR FISCAL YEAR 2007-2012 APRIL 27, 2007 funding requests could be made through the Town's community grant program. Other options for Council consideration include providing full funding at $5,000 or denying the funding request. Should Council choose to partially or fully fund the United Way's request, staff will reflect Council's direction in the budget resolution that will be come back for approval on June 4, 2007. A question raised at the 2007 Council Retreat was the amount of Town funds and efforts allocated to services for youth and seniors. At the time, Council directed that an inventory of youth and senior services be completed as a precursor to the General Plan update. Unless otherwise directed by Council, staff plans to bring forward the work plan for the update in the Fall, which will include the timing for completing the inventory. The proposed budget includes funding for a variety of human services and arts organizations, including A Place for Teens (APT.) APT contracts with the Los Gatos-Saratoga Community Education and Recreation Department to manage the community teen center known as The Venue. As mentioned in an April report to Council regarding grant funding recommendations, the agency continues to face administrative and fundraising challenges. The Mayor and Town staff have met with agency representatives to provide guidance as the agency develops long-term solutions to these challenges. Attached is a letter from Jeff Miller, APT Board Member, indicating the agency's commitment to strengthen its Board and to take its fundraising capacity to a new level (Attachment 2). Based on discussions with representatives of APT as well as the director of the Los Gatos-Saratoga Recreation District, staff is aware that the Board will be working over the next year to raise sufficient funds to ensure a balanced budget and to establish a significant endowment. APT is not seeking funding beyond the $12,000 awarded through the grant funding process. Staff will continue its conversations with the agency to provide leadership guidance to them and to open doors by way of the contacts that the Town has with the community through resources such as Leadership Los Gatos and the various service clubs in town. As a recent example, because of the connection between youth and music, the Venue's new recording studio, and Morning Rotary's successful Jazz on the Plazz summer concert series, the Morning Rotary Club has already expressed an interest in working to assist APT in some way. Staff will continue to monitor the progress of APT and provide leadership support unless otherwise directed by Council. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: OPERATING AND CAPITAL BUDGETS A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2007-2008 B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL IMROVEMENT PROGRAM FOR FISCAL YEAR 2007-2012 APRIL 27, 2007 FISCAL IMPACT: The fiscal impact is presented in summary form in the Financial Summaries chapter of the Proposed Operating and Capital Budget for FY 2007/08. Attachments: 1. Letter from United Way Silicon Valley, dated February 27, 2007 2. Letter from Jeff Miller, A Place for Teens Board Member, dated April 27, 2007 Also attached- Proposed Operating and Capital Budget for FY 2007/08 (Previously distributed to Council) Proposed Capital Improvement Program for FY 2007-2012 (Previously distributed to Council) A COPY OF THE PROPOSED OPERATING BUDGET AND CAPITAL BUDGET ARE AVAILABLE FOR VIEWING IN THE CLERK DEPARTMENT AND ON THE TOWN'S WEBSITE AT W W W.LOSGATOSCA.GOV