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1c- Financial Summaries SectionPROPOSED C - 1 0 50 10 0 150 200 2 50 300 FINANCIAL SUMMARIES Total Revenues and Expenditures Summary schedules which provide a high level overview of the entire Town budget, in a fund-type summary, as well as by fund-specific and category-specific summary levels. Total Budgeted Fund Activity ...................................................................................................................... C – 3 Total Revenue, Expenditure, and Fund Balance Trend Information ............................................................. C – 4 Total Revenues, Expenditures, and Fund Balance – 5 Year Summary ......................................................... C – 6 Total Town Revenues – by Fund ................................................................................................................... C – 10 Total Town Expenditures – by Fund ............................................................................................................. C – 12 Total Town Revenues – by Category ........................................................................................................... C – 14 Total Town Expenditures – by Category ....................................................................................................... C – 15 General Fund Revenues and Expenditures Summary schedules which identify the Town’s General Fund operating sources and uses at the department and category levels. The Fund Balance Activity summarizes the General Fund sources and uses which impact the resulting ending fund balance. General Fund Revenues – by Department .................................................................................................... C – 16 General Fund Expenditures – by Department ............................................................................................... C – 17 General Fund Revenues – by Category ......................................................................................................... C – 18 General Fund Expenditures – by Category .................................................................................................... C – 20 General Fund Tax Revenues per Capita – Cities of Santa Clara County ..................................................... C – 21 General Fund Tax Revenues – 10 Year History of Key Tax Revenues ....................................................... C – 22 General Fund – Fund Balance Activity ......................................................................................................... C – 23 Operating Transfers A schedule summarizing activity by fund, of estimated fund transfers for the prior year and budgeted for the adopted fiscal year. Schedule of Inter-fund Transfers ................................................................................................................... C – 24 PROPOSED C - 2 FINANCIAL SUMMARIES Fund Balance Fund Balance schedules, one which summarizes activity and ending fund balances to provide a quick look at the ongoing status of the individual funds, and another which provides a 5 year trend. Fund Balance Activity Summary – by Fund ................................................................................................ C – 25 5 Year Comparative Fund Balance – by Fund ............................................................................................... C – 27 Departmental Budgets Department level schedules provide an overview of funding source and expenditure use, by each program within the department. Department Revenues – by Program ............................................................................................................. C – 30 Department Expenditures – by Program........................................................................................................ C – 31 Staffing The labor position schedules provide a summary level view of operational staffing assignments, funding, and trends. The Personnel Changes Summary discusses staffing levels and labor costs in more detail. Departmental Staff – by Fund ....................................................................................................................... C – 33 Summary of FTE’s – by Department ............................................................................................................ C – 34 5 Year History of Funded Positions – by Department .................................................................................. C – 35 Summary of Personnel Changes ................................................................................................................... C – 36 Positions by Home Department ..................................................................................................................... C – 40 PROPOSED C - 3 TOTAL BUDGETED FUND ACTIVITY SUMMARY FY 2012/13 This Total Budgeted Fund Activity Summary schedule groups the Town’s funds into four categories based on fund purpose: Operating Funds - Ongoing operations are funded out of the various Operating Funds. This includes the Town’s General Fund departmental program operations, as well as special revenue activities and internal service functions. Fiduciary Funds – These funds are held in a fiduciary capacity, with little variation in activity. The Parking District Fund facilitates a debt service function, and the Library Trusts are held for special uses for the Library. Estimated Revenues,Expenditures,Estimated Fund Balance Fund Balance PY Carryfwds PY Carryfwds Fund Balance Change 7/1/2012& Transfers& Transfers 6/30/2013 From PY Fund Operating Funds Government Funds General Fund 23,065,882$ 32,789,997$ 35,174,291$ 20,681,588$ -10.3%111 Solid Waste Fund- - - - 0.0%221 Housing Conservation Program 13,455 5,029 12 18,472 37.3%211 Community Dev Block Grant 2,506 274,079 274,079 2,506 0.0%212 Urban Run-Off Source Fund 75,786 502,000 338,798 238,988 215.3%222 Blackwell Assessment District 4,983 3,236 3,490 4,729 -5.1%231 Kennedy Assessment District 24,215 10,547 7,633 27,129 12.0%232 Gemini Asses sment District 11,837 4,316 4,765 11,388 -3.8%233 Santa Rosa Assessment Dis trict 53,561 5,288 4,795 54,054 0.9%234 Vasona Assessment District 21,644 9,991 6,670 24,965 15.3%235 Hillbrook Assessment District 2,754 5,970 6,590 2,134 -22.5%236 Proprietary Funds - Internal Service Funds ABAG Self Insurance 1,876,615 501,292 652,249 1,725,658 -8.0%611 Worker's Comp Self Insurance 2,716,517 659,429 718,127 2,657,819 -2.2%612 Management Information Systems 2,372,367 1,020,673 1,345,488 2,047,552 -13.7%621 Office Stores Fund 207,895 127,500 143,050 192,345 -7.5%622 Equipment Replacement 2,685,224 439,532 689,942 2,434,814 -9.3%631 Facilities Maintenance 476,490 544,325 537,515 483,300 1.4%632 Vehicle Maintenance 981,783 1,138,086 1,705,847 414,022 -57.8%633 Total Operating Funds 34,593,514$ 38,041,290$ 41,613,341$ 31,021,463$ -10.3% Trust & Agency Funds Friends of the Library-$ -$ -$ -$ 0.0%710 Library Trust 42,595 15,858 58,452 1 -100.0%711 Library History Project 809 1,001 1,810 - 0.0%712 Ness Trust Bequest 88,679 1,500 45,000 45,179 -49.1%713 Betty McClendon Trust 98,020 700 50,000 48,720 -50.3%714 Barbara J Cassin Trus t 521,252 5,000 80,000 446,252 -14.4%716 Parking District #88 314,622 138,090 143,526 309,186 -1.7%721 Total Trust & Agency Funds 1,065,977$ 162,149$ 378,788$ 849,338$ -20.3% Capital Funds GFAR 12,687,141$ 2,657,000$ 4,680,589$ 10,663,552$ -15.9%411 Grant Funded CIP Projects(57,149) 227,615 94,685 75,781 -232.6%421 Storm Drain #1 412,245 48,120 - 460,365 11.7%461 Storm Drain #2 723,157 53,420 - 776,577 7.4%462 Storm Drain #3(73,802) 1,000 - (72,802) -1.4%463 Traffic Mitigation 79,232 540,000 540,000 79,232 0.0%471 Construction Tax-Undergrounding 2,416,480 51,250 - 2,467,730 2.1%472 Gas Tax 151,574 834,560 756,000 230,134 51.8%481 Total Capital Projects Funds 16,338,878$ 4,412,965$ 6,071,274$ 14,680,569$ -10.1% Successor Agency of the Los Gatos RDA Funds SA - Administration 1,258,376$ 255,000$ 256,190$ 1,257,186$ -0.1%911 SA - Debt Service 1,963,801 3,910,142 3,910,142 1,963,801 0.0%921 SA - Low / Moderate Housing 123,857 - - 123,857 0.0%931 SA - Recognized Obligation Retirement- 2,196,171 2,196,171 - 0.0%941 Total Successor Agency of the Los Gatos RDA Reserves 3,346,034$ 6,361,313$ 6,362,503$ 3,344,844$ 0.0% TOTAL ALL FUNDS 55,344,403$ 48,977,717$ 54,425,906$ 49,896,214$ -9.8% PROPOSED C - 4 TOTAL TOWN REVENUE, EXPENDITURE, & FUND BALANCE TREND INFORMATION Capital Funds - Representing the capital improvement program activity, the Capital Funds reflect the significant progress made in the ongoing push in the capital program to complete projects, and the resulting decrease in fund balances. Successor Agency to the Los Gatos Redevelopment Funds – Formerly known as the Redevelopment Agency (RDA), the Successor Agency is not a separate legal entity and therefore has been incorporated into the Town’s operating budget. This fund supports enforceable obligations incurred by the RDA and Successor Agency administrative operations. VC *Expenditures and Transfers-Out may exceed Revenues due to the inclusion of planned and carry-forward capital projects. Approximately $14 M funding for Library project came from issuance of Certificates of Participation (COP) in 2010. Year End Reference Revenue & Transfers In Expenditures & Designated Fund Balance 2003/04 Actuals 36,878,439$ 40,696,344$ 41,187,998$ 2004/05 Actuals 40,170,433 35,716,244 45,642,187 2005/06 Actuals 47,575,202 40,769,411 52,447,978 2006/07 Actuals 57,356,538 50,554,905 59,249,611 2007/08 Actuals 57,785,654 54,751,838 62,283,427 2008/09 Actuals 58,959,239 51,969,267 69,273,399 2009/10 Actuals 68,176,239 62,169,737 75,279,901 2010/11 Actuals 53,198,202 72,439,477 56,038,626 2011/12 Estimated 56,431,647 57,125,868 55,344,405 2012/13 Adopted 48,977,717 54,425,906 49,896,216 PROPOSED C - 5 TOTAL TOWN REVENUE, EXPENDITURE, & FUND BALANCE TREND INFORMATION The Town continues to focus on priority issues that involve maintaining public safety and Town infrastructure including streets and parks; and providing library, community development, and community services. These priorities are coordinated with other strategic goals that protect the Town’s fiscal health and ensure cost efficient and effective delivery of Town-wide administrative services. The Town’s proactive approach to reducing operating expenditures, identifying revenue enhancements, implementing operating efficiencies, and establishing a revenue stabilization reserve has been an integral part of softening the impact of the economic recession and other negative fiscal developments. However, as depicted in the revenue and expenditures graph on the previous page, fund balances reflect a decline in FY 2012/13. It is anticipated that fund balances will be strategically used for a limited period of time to balance the budget as needed and support vital capital improvements as approved in the FY 2012/13 – 2017/18 Capital Improvement Plan until an alternate or more permanent source of funding is identified. The FY 2012/13 budget is a balanced budget, but the five-year financial forecast projects continuing deficits each year thereafter if the economy doesn’t improve significantly or further corrective actions are not taken. Shortfalls are the result of recessionary impacts on the Town’s locally generated revenues, including declines in sales tax revenue from Netflix, due to changes in its business model. Projected cost increases for employer paid benefits due to PERS investment losses and the ongoing impacts of funding post-retirement health benefits on an actuarial basis as required by Governmental Accounting Standards Board (GASB) Statement #45 are significant contributors to the Town’s expenditure base. Other key trends affecting the fund balance forecast include: Salary and Benefits Increases – Salaries and benefits account for 41% of the Town’s total expenditures and 60% of General Fund expenditures in FY 2012/13. Delivery of Town services is highly dependent on labor. The single largest driver of this cost has been the Town’s contribution to the Public Employees Retirement System (PERS) on behalf of public safety employees. The Town’s safety retirement contribution rates paid to the PERS have more than doubled in the recent past years and are expected to continue to increase over the next several years. In FY 2011/12, the employer PERS contribution rate for safety employees was 38.65% and is expected to adjust to 39.31% in FY 2012/13. For all other employees, the rate will increase from 18.49% in FY 2011/12 to 19.62% in FY 2012/13. In FY 2011/12, a two-tier pension plan was negotiated for non-sworn and management employees, changing the pension formula from 2.5% at 55 to 2% at 60 for new hires after August 1, 2012. While this does not provide immediate cost savings, it is anticipated to reduce future salary and benefit expenses in the next 10-15 years. Other negotiated changes affecting miscellaneous employees include the cost sharing of dependent premiums. Negotiations are expected to begin in late FY 2011/12 with the Town Employees Association (TEA) to discuss a successor Memorandum of Understanding (MOU). The TEA labor agreement expires on June 30, 2012. The American Federation of State, County and Municipal Employees (AFSCME) labor agreement expires on June 30, 2013. The existing Police Officers’ Association (POA) agreement was restructured to delay scheduled salary adjustments and extend the contract for a longer term. Under the restructured agreement, the POA will receive a 2% increase effective January 1, 2013. This is the last wage increase under the existing contract, which expires June 30, 2013. Other Cost Drivers – A significant cost driver for the Town is energy costs, including fuel for safety and maintenance vehicles, water for parks and landscaping, natural gas and electricity to heat and cool buildings, and lighting for street lights, parking lots, and Town facilities. The Energy Information Administration of the U.S. government projects that energy costs will continue to increase in FY 2012/13. The Town has taken steps to ensure energy efficiency in new facilities, like the LEED Gold Library, and will continue to explore energy alternatives to reduce costs. Revenue Recovery – While there are signs that the economy is recovering, the local economy continues to be slow and revenues for FY 2012/13 show limited growth. Total Town revenues for FY 2012/13 are 18% less than the prior year estimated revenues. This adjustment is due to a business model change in Netflix, an internet streaming provider which previously accounted for nearly 40% of all sales tax received by the Town. Revenue declines are also due to a loss of tax increment revenue as a result of the dissolution of California redevelopment agencies. PROPOSED C - 6 2008/09 2009/10 2010/11 2011/12 2012/13 2008/09 2009/10 2010/11 2011/12 2012/13 Actuals Actuals Actuals Estimated Adopted Actuals Actuals Actuals Estimated Adopted REVENUESProperty Tax 7,417,032 $ 7,465,871 $ 7,289,897 $ 7,435,497 $ 8,041,087 $ 29 $ 259 $ 64 $ 330 $ - $ VLF Backfill 2,307,040 2,343,495 2,327,053 2,250,320 2,272,820 - - - - - Sales & Use Tax 8,486,999 8,317,216 9,971,409 8,610,000 7,859,000 - - - - - Franchise Fees 1,698,060 1,699,839 1,901,605 1,920,610 1,939,820 - - - - - Transient Occupancy Tax 966,638 923,783 1,004,659 1,014,710 1,099,860 - - - - - Other Taxes 1,142,305 1,225,154 1,143,294 1,143,062 1,290,550 33,510 33,510 37,760 37,760 37,760 Licenses & Permits 1,820,007 2,035,308 2,040,811 2,206,324 2,075,945 - - - - - Intergovernmental 634,580 878,656 834,713 844,911 801,172 133,046 49,945 136,960 20,464 274,079 Town Services 2,054,603 2,565,437 2,672,513 2,645,028 2,155,039 135,000 135,000 135,000 135,000 502,000 Internal Srvc Reimbursement - - - - - - - - - - Fines & Forfeitures 563,721 571,245 617,779 669,819 644,470 - - - - - Interest 2,107,205 870,512 625,654 604,812 608,566 23,254 15,131 11,229 6,287 6,617 Other Sources 7,933,138 1,525,254 1,011,565 1,351,288 1,500,777 - - (8,803) - - CIP Proj Reimbursement 929,239 931,371 1,354,882 2,094,727 1,963,971 - - - - - SCC RPTTF Reimbursement - - - - - - - - - - Fund Transfers In 437,925 440,326 437,755 418,532 536,920 - - - 92,976 - TOTAL REVENUES 38,498,492 31,793,467 33,233,589 33,209,640 32,789,997 324,839 233,845 312,210 292,817 820,456 EXPENDITURESSalaries & Benefits 20,403,015 19,356,682 19,509,657 20,526,875 20,945,917 130,426 91,481 89,683 86,803 102,303 Operating Expenditures 5,385,818 5,940,791 5,828,392 6,196,068 6,806,907 51,632 51,932 48,263 42,990 259,500 Grants & Awards 208,240 228,850 243,237 173,420 177,620 179,502 536,234 218,848 20,464 46,464 Fixed Assets 6,240 24,516 1,900 - - - - - - - Interest - - - - - 10,332 1,638 503 12 12 Internal Service Charges 3,540,053 3,240,600 3,040,852 3,159,448 3,379,876 40,067 15,949 13,437 14,509 6,018 Capital Projects - - - - - - - - - - Capital Acquisitions 529,989 3,116,295 - - - - - - - - Debt Service 929,239 931,371 1,354,882 2,094,727 1,963,971 - - - - - Transfers 1,916,500 825,000 786,525 1,300,000 1,900,000 412,532 6,756 204,395 4,920 232,535 TOTAL EXPENDITURES 32,919,094 33,664,105 30,765,445 33,450,538 35,174,291 824,491 703,990 575,129 169,698 646,832 Net Increase (Decrease) 5,579,398 (1,870,638) 2,468,144 (240,898) (2,384,294) (499,652) (470,145) (262,919) 123,119 173,624 Beginning Fund Balance 17,129,878 22,709,276 20,838,638 23,306,782 23,065,884 1,300,936 801,284 331,139 68,220 191,339 Ending Fund Balance 22,709,276$ 20,838,638 $ 23,306,782 $ 23,065,884 $ 20,681,590 $ 801,284 $ 331,139 $ 68,220 $ 191,339 $ 364,963 $ GENERAL FUND SPECIAL REVENUE FUNDS TOTAL TOWN REVENUES, EXPENDITURES & FUND BALANCE FIVE-YEAR SUMMARY PROPOSED C - 7 2008/09 2009/10 2010/11 2011/12 2012/13 2008/09 2009/10 2010/11 2011/12 2012/13 Actuals Actuals Actuals Estimated Adopted Actuals Actuals Actuals Estimated Adopted REVENUESProperty Tax - $ - $ - $ - $ - $ 44,741 $ 38,252 $ 2,406 $ 1,720 $ 1,720 $ VLF Backfill - - - - - - - - - - Sales & Use Tax - - - - - - - - - - Franchise Fees - - - - - - - - - - Transient Occupancy Tax - - - - - - - - - - Other Taxes 14,347 19,586 31,723 27,655 15,000 92,034 101,434 121,625 116,968 126,326 Licenses & Permits - - - - - - - - - - Intergovernmental - - - - - - - - - - Town Services 68,159 82,353 88,232 98,000 99,000 - - - - - Internal Srvc Reimbursement 4,357,464 4,039,222 3,839,607 3,990,199 4,185,401 - - - - - Fines & Forfeitures - - - - - - - - - - Interest 40 39 18 32 32 17,707 11,036 26,364 26,901 17,603 Other Sources 100,682 136,971 153,564 149,404 131,404 32,341 20,738 685,153 16,250 16,500 CIP Proj Reimbursement - - - - - - - - - - SCC RPTTF Reimbursement - - - - - - - - - - Fund Transfers In 20,980 8,990 - - - - - - - - TOTAL REVENUES 4,561,672 4,287,161 4,113,144 4,265,290 4,430,837 186,823 171,460 835,548 161,839 162,149 EXPENDITURESSalaries & Benefits 1,069,437 1,003,584 957,825 1,066,708 1,150,630 - - - - - Operating Expenditures 2,291,088 2,473,434 2,496,405 2,906,651 3,195,400 26,021 24,526 24,983 282,025 218,087 Grants & Awards - - - - - - - - - - Fixed Assets 248,319 376,859 188,939 554,290 675,188 - - - - - Interest - - - - - 50,681 42,930 34,583 25,440 15,701 Internal Service Charges - - - - - - - - - - Capital Projects - - - - - - - - - - Capital Acquisitions - - - - - - - - - - Debt Service - - - - - 95,000 100,000 110,000 120,000 125,000 Transfers 659,804 201,800 194,000 294,000 771,000 - - - - 20,000 TOTAL EXPENDITURES 4,268,648 4,055,677 3,837,169 4,821,649 5,792,218 171,702 167,456 169,566 427,465 378,788 Net Increase (Decrease) 293,024 231,484 275,975 (556,359) (1,361,381) 15,121 4,004 665,982 (265,626) (216,639) Beginning Fund Balance 11,092,171 11,385,195 11,616,679 11,892,654 11,336,295 646,495 661,616 665,620 1,331,602 1,065,976 Ending Fund Balance 11,385,195 $ 11,616,679 $ 11,892,654 $ 11,336,295 $ 9,974,914 $ 661,616 $ 665,620 $ 1,331,602 $ 1,065,976 $ 849,337 $ INTERNAL SERVICE FUNDS TOTAL TOWN REVENUES, EXPENDITURES & FUND BALANCE FIVE-YEAR SUMMARYLIBRARY TRUSTS & PARKING ASSESSMENT FUNDS PROPOSED C - 8 2008/09 2009/10 2010/11 2011/12 2012/13 2008/09 2009/10 2010/11 2011/12 2012/13 Actuals Actuals Actuals Estimated Adopted Actuals Actuals Actuals Estimated Adopted REVENUESProperty Tax - $ - $ - $ - $ - $ 8,574,250 $ 9,022,863 $ 8,577,063 $ 4,186,567 $ - $ VLF Backfill - - - - - - - - - - Sales & Use Tax - - - - - - - - - - Franchise Fees - - - - - - - - - - Transient Occupancy Tax - - - - - - - - - - Other Taxes 14,392 19,586 31,989 26,534 15,000 - - - - - Licenses & Permits 142,143 272,862 525,212 503,684 274,000 - - - - - Intergovernmental 1,366,727 3,154,121 2,281,630 1,325,239 842,290 - - - - 2,196,171 Town Services (10,500) - - 44,450 - - - - - - Internal Srvc Reimbursement - - - - - - - - - - Fines & Forfeitures - - - - - - - - - - Interest 118,620 68,430 46,933 14,467 49,060 700,010 220,129 7,207 7,578 5,000 Other Sources 334,599 16,575,264 292,773 8,248,815 628,000 - 16,044 22 - - CIP Proj Reimbursement - - - - - 929,239 931,371 1,354,882 2,094,727 1,963,971 SCC RPTTF Reimbursement - - - - - - - - - - Fund Transfers In 2,642,933 834,636 986,000 1,400,000 2,604,615 575,000 575,000 600,000 650,000 2,196,171 TOTAL REVENUES 4,608,914 20,924,899 4,164,537 11,563,189 4,412,965 10,778,499 10,765,407 10,539,174 6,938,872 6,361,313 EXPENDITURESSalaries & Benefits 5,513 103,210 149,427 16,178 - 196,441 308,043 342,730 252,869 25,466 Operating Expenditures - 40,186 2,330 - - 4,613,479 7,200,100 17,251,475 1,171,355 226,035 Grants & Awards - - - - - 90,000 412,000 150,000 - - Fixed Assets - - - - - - - - - - Interest - 309,158 20,500 - - 635,075 617,204 1,021,132 1,147,226 1,017,971 Internal Service Charges 239 2,667 - - - 11,354 16,972 19,010 14,446 3,717 Capital Projects 5,084,091 7,390,915 14,870,970 11,637,556 4,653,274 951,833 671,337 519,126 (75,427) 4,172 Capital Acquisitions 900 - - - 1,200,000 135,000 4,285,784 68,001 - - Debt Service - - - - - 1,373,406 1,395,537 1,838,632 3,129,727 2,888,971 Transfers 113,001 250,396 238,835 312,588 218,000 575,000 575,000 600,000 650,000 2,196,171 TOTAL EXPENDITURES 5,203,744 8,096,532 15,282,062 11,966,322 6,071,274 8,581,588 15,481,977 21,810,106 6,290,196 6,362,503 Net Increase (Decrease) (594,830) 12,828,367 (11,117,525) (403,133) (1,658,309) 2,196,911 (4,716,570) (11,270,932) 648,676 (1,190) Beginning Fund Balance 15,625,996 15,031,166 27,859,533 16,742,008 16,338,875 16,487,951 18,684,862 13,968,292 2,697,360 3,346,036 Ending Fund Balance 15,031,166$ 27,859,533 $ 16,742,008 $ 16,338,875 $ 14,680,566 $ 18,684,862 $ 13,968,292 $ 2,697,360 $ 3,346,036 $ 3,344,846 $ TOTAL TOWN REVENUES, EXPENDITURES & FUND BALANCE FIVE-YEAR SUMMARYCAPITAL PROJECT FUNDS SUCCESSOR AGENCY TO THE LOS GATOS RDA PROPOSED C - 9 2008/09 2009/10 2010/11 2011/12 2012/13 Actuals Actuals Actuals Estimated Adopted REVENUESProperty Tax 16,036,052 $ 16,527,245 $ 15,869,430 $ 11,624,114 $ 8,042,807 $ VLF Backfill 2,307,040 2,343,495 2,327,053 2,250,320 2,272,820 Sales & Use Tax 8,486,999 8,317,216 9,971,409 8,610,000 7,859,000 Franchise Fees 1,698,060 1,699,839 1,901,605 1,920,610 1,939,820 Transient Occupancy Tax 966,638 923,783 1,004,659 1,014,710 1,099,860 Other Taxes 1,296,588 1,399,270 1,366,391 1,351,979 1,484,636 Licenses & Permits 1,962,150 2,308,170 2,566,023 2,710,008 2,349,945 Intergovernmental 2,134,353 4,082,722 3,253,303 2,190,614 4,113,712 Town Services 2,247,262 2,782,790 2,895,745 2,922,478 2,756,039 Internal Srvc Reimbursement 4,357,464 4,039,222 3,839,607 3,990,199 4,185,401 Fines & Forfeitures 563,721 571,245 617,779 669,819 644,470 Interest 2,966,836 1,185,277 717,405 660,077 686,878 Other Sources 8,400,760 18,274,271 2,134,274 9,765,757 2,276,681 CIP Proj Reimbursement 1,858,478 1,862,742 2,709,764 4,189,454 3,927,942 SCC RPTTF Reimbursement - - - - - Fund Transfers In 3,676,838 1,858,952 2,023,755 2,561,508 5,337,706 TOTAL REVENUES 58,959,239 68,176,239 53,198,202 56,431,647 48,977,717 EXPENDITURESSalaries & Benefits 21,804,832 20,863,000 21,049,322 21,949,433 22,224,316 Operating Expenditures 12,368,038 15,730,969 25,651,848 10,599,089 10,705,929 Grants & Awards 477,742 1,177,084 612,085 193,884 224,084 Fixed Assets 254,559 401,375 190,839 554,290 675,188 Interest 696,088 970,930 1,076,718 1,172,678 1,033,684 Internal Service Charges 3,591,713 3,276,188 3,073,299 3,188,403 3,389,611 Capital Projects 6,035,924 8,062,252 15,390,096 11,562,129 4,657,446 Capital Acquisitions 665,889 7,402,079 68,001 - 1,200,000 Debt Service 2,397,645 2,426,908 3,303,514 5,344,454 4,977,942 Transfers 3,676,837 1,858,952 2,023,755 2,561,508 5,337,706 TOTAL EXPENDITURES 51,969,267 62,169,737 72,439,477 57,125,868 54,425,906 Net Increase (Decrease) 6,989,972 6,006,502 (19,241,275) (694,221) (5,448,189) Beginning Fund Balance 62,283,427 69,273,399 75,279,901 56,038,626 55,344,405 Ending Fund Balance 69,273,399 $ 75,279,901 $ 56,038,626 $ 55,344,405 $ 49,896,216 $ TOTAL ALL FUNDS PROPOSED C - 10 TOTAL TOWN REVENUES BY FUND (Includes Transfers In) 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13 Change Fund Fund Name Actuals Actuals Actuals Adopted Estimated Adopted from PY General Fund 111 General Fund 38,498,492$ 31,793,466$ 33,233,589$ 33,424,883$ 33,209,640$ 32,789,997$ -1.9% Special Revenue Funds 221 Solid Waste Fund- - - - - - 0.0% 211 Housing Conservation Program 20,454 13,191 20,496 12,500 5,029 5,029 -59.8% 212 Community Dev Block Grant 133,046 49,945 136,960 210,594 113,440 274,079 30.1% 222 Urban Run-Off Source Fund 135,000 135,000 135,000 135,000 135,000 502,000 271.9% 231 Blackwell Assessment District 3,250 3,348 3,252 3,240 3,236 3,236 -0.1% 232 Kennedy Asses s ment District 10,625 10,595 10,498 10,625 10,547 10,547 -0.7% 233 Gemini Assessment District 4,392 4,389 4,285 4,380 4,316 4,316 -1.5% 234 Santa Rosa Assessment District 6,265 5,610 (14,199) 5,950 5,288 5,288 -11.1% 235 Vasona Assessment District 9,935 10,004 9,944 9,935 9,991 9,991 0.6% 236 Hillbrook Asses sment District 1,873 1,763 5,973 6,070 5,970 5,970 -1.6% Internal Service Funds 611 ABAG Self Insurance 540,326 491,082 500,056 532,958 521,657 501,292 -5.9% 612 Worker's Comp Self Ins urance 650,526 648,890 655,734 687,085 683,703 659,429 -4.0% 621 Management Information Systems 1,037,521 1,002,319 984,426 1,001,546 1,012,527 1,020,673 1.9% 622 Office Stores Fund 144,925 119,598 113,541 118,500 111,300 127,500 7.6% 631 Equipment Replacement 427,220 389,675 369,525 319,819 319,819 439,532 37.4% 632 Facilities Maintenance 638,021 624,500 488,689 540,100 546,925 544,325 0.8% 633 Vehicle Maintenance 1,123,133 1,011,096 1,001,173 1,050,300 1,069,359 1,138,086 8.4% Trust & Agency 710 Friends of the Library- - - - - - 0.0% 711 Library Trust 31,931 20,601 16,905 45,800 15,858 15,858 -65.4% 712 Library History Project 1,520 1,076 2,641 3,018 751 1,001 -66.8% 713 Ness Trust Bequest 5,490 3,710 2,461 1,500 1,500 1,500 0.0% 714 Betty McClendon Trust 2,800 1,890 1,251 1,000 700 700 -30.0% 716 Barbara J Cass in Trust- - 666,252 5,000 5,000 5,000 0.0% 721 Parking District #88 145,083 144,182 146,038 141,830 138,030 138,090 -2.6% Capital Projects Funds 411 GFAR 3,035,693 17,807,050 1,236,199 9,844,475 7,982,688 2,657,000 -73.0% 421 Grant Funded CIP Projects 696,557 2,379,704 1,752,253 1,752,862 481,337 227,615 -87.0% 461 Storm Drain #1 163,682 39,962 83,018 48,120 127,899 48,120 0.0% 462 Storm Drain #2 55,208 61,285 85,333 53,420 65,843 53,420 0.0% 463 Storm Drain #3(2,303) 2,665 86 1,000 1,402 1,000 0.0% 471 Traffic Mitigation 46,100 60,429 210,655 2,526,536 2,034,189 540,000 -78.6% 472 Construction Tax-Undergrounding 87,352 68,766 62,652 51,010 35,521 51,250 0.5% 481 Gas Tax 526,622 505,042 734,341 834,310 834,310 834,560 0.0% Successor Agency to the Los Gatos RDA Funds 911 SA - Administration 641,908 580,951 604,250 660,000 654,324 255,000 -61.4% 921 SA - Debt Service 8,145,423 8,313,191 8,222,522 8,810,055 5,443,773 3,910,142 -55.6% 931 SA - Low / Moderate Housing 1,991,169 1,871,264 1,712,402 1,666,032 840,775 - -100.0% 941 SA - Recognized Obligation Retirement- - - - - 2,196,171 0.0% TOTAL Fund Rev & Trans fers-in 58,959,239$ 68,176,239$ 53,198,201$ 64,519,453$ 56,431,647$ 48,977,717$ -24.1% PROPOSED C - 11 TOTAL TOWN REVENUES BY FUND 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13% of Actuals Actuals Actuals Adopted Estimated Adopted Total General Fund 38,498,492$ 31,793,466$ 33,233,589$ 33,424,883$ 33,209,640$ 32,789,997$ 66.9% Special Revenue Funds 324,840 233,845 312,209 398,294 292,817 820,456 1.7% Internal Service Funds 4,561,672 4,287,160 4,113,144 4,250,308 4,265,290 4,430,837 9.0% Trust & Agency Funds 186,824 171,459 835,548 198,148 161,839 162,149 0.3% Capital Project Funds 4,608,911 20,924,903 4,164,537 15,111,733 11,563,189 4,412,965 9.0% Successor AgencyFunds 10,778,500 10,765,406 10,539,174 11,136,087 6,938,872 6,361,313 13.0% Total Rev & Transfers In 58,959,239$ 68,176,239$ 53,198,201$ 64,519,453$ 56,431,647$ 48,977,717$ 100.0% FY 2012/13 Revenues By Fund FY Total Status 2003/04 36,878,439 Actuals 2004/05 40,170,433 Actuals 2005/06 47,575,202 Actuals 2006/07 57,356,538 Actuals 2007/08 57,785,654 Actuals 2008/09 58,959,239 Actuals 2009/10 68,176,239 Actuals 2010/11 53,198,201 Actuals 2011/12 56,431,647 Estimated 2012/13 48,977,717 Projected TOWN REVENUE HISTORICAL TREND (Includes Transfers In) - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 PROPOSED C - 12 TOTAL TOWN EXPENDITURES BY FUND (Includes Transfers Out) 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13 Change Fund Fund Name Actuals Actuals Actuals Adopted Estimated Adopted from PY General Fund 111 General Fund 32,919,093$ 33,664,106$ 30,765,445$ 36,321,937$ 33,450,539$ 35,174,291$ -3.2% Special Revenue Funds 221 Solid Waste Fund 296,554 - - - - - 0.0% 211 Hous ing Conservation Program 157,103 505,823 194,711 5,100 12 12 -99.8% 212 Community Dev Block Grant 134,056 49,498 230,079 216,931 20,464 274,079 26.3% 222 Urban Run-Off Source Fund 203,369 114,977 117,061 135,900 117,357 338,798 149.3% 231 Blackwell Assessment District 2,421 3,420 2,520 3,220 3,690 3,490 8.4% 232 Kennedy Assessment District 6,811 6,859 9,907 7,630 6,463 7,633 0.0% 233 Gemini As sessment Dis trict 3,076 3,076 3,075 5,000 4,767 4,765 -4.7% 234 Santa Rosa Assessment District 8,638 8,638 7,089 7,990 4,795 4,795 -40.0% 235 Vasona Assessment Dis trict 7,601 7,362 5,008 6,670 6,670 6,670 0.0% 236 Hillbrook Assessment District 4,861 4,336 5,679 6,590 5,480 6,590 0.0% Internal Service Funds 611 ABAG Self Insurance 304,071 504,146 512,622 625,224 711,110 652,249 4.3% 612 Worker's Comp Self Insurance 651,301 506,795 571,225 623,097 777,070 718,127 15.3% 621 Management Information Systems 985,886 967,384 929,576 1,056,207 905,662 1,345,488 27.4% 622 Office Stores Fund 119,408 126,686 124,253 134,050 149,050 143,050 6.7% 631 Equipment Replacement 232,049 578,737 372,595 417,893 728,485 689,942 65.1% 632 Facilities Maintenance 600,991 464,303 478,402 536,200 509,251 537,515 0.2% 633 Vehicle Maintenance 1,374,942 907,626 848,496 1,142,733 1,041,021 1,705,847 49.3% Trust & Agency 710 Friends of the Library- - - - - - 0.0% 711 Library Trust 15,628 17,980 18,592 38,155 25,200 58,452 53.2% 712 Library History Project 7,617 3,592 3,434 2,000 - 1,810 -9.5% 713 Ness Trust Bequest- - - 191,750 104,000 45,000 -76.5% 714 Betty McClendon Trust- - - 97,629 - 50,000 -48.8% 716 Barbara J Cassin Trus t- - - 150,000 150,000 80,000 -46.7% 721 Parking District #88 148,457 145,884 147,540 148,265 148,265 143,526 -3.2% Capital Projects Funds 411 GFAR 3,696,382 5,192,284 11,835,099 19,988,103 8,597,113 4,680,589 -76.6% 421 Grant Funded CIP Projects 552,256 1,743,648 2,191,072 1,751,752 574,313 94,685 -94.6% 461 Storm Drain #1 163,890 45,890 - 285,000 - - -100.0% 462 Storm Drain #2- - - - - - 0.0% 463 Storm Drain #3 261,457 17,180 24,690 - - - 0.0% 471 Traffic Mitigation 46,100 60,429 210,655 2,526,536 2,034,189 540,000 -78.6% 472 Construction Tax-Undergrounding- 208,347 - - 4,707 - 0.0% 481 Gas Tax 483,661 828,753 1,020,546 756,000 756,000 756,000 0.0% Successor Agency to the Los Gatos RDA Funds 911 SA - Administration 1,574,059 1,237,563 770,215 754,232 638,996 256,190 -66.0% 921 SA - Debt Service 6,448,985 8,882,082 14,187,434 8,849,535 4,934,282 3,910,142 -55.8% 931 SA - Low / Moderate Housing 558,544 5,362,333 6,852,457 406,091 716,918 - -100.0% 941 SA - Recognized Obligation Retirement- - - - - 2,196,171 0.0% TOTAL Fund Rev & Transfers-in 51,969,267$ 62,169,737$ 72,439,477$ 77,197,420$ 57,125,869$ 54,425,906$ -29.5% PROPOSED C - 13 TOTAL TOWN EXPENDITURES BY FUND 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13 2012/13 Actuals Actuals Actuals Adopted Estimated Adopted% General Fund 32,919,093$ 33,664,106$ 30,765,445$ 36,321,937$ 33,450,539$ 35,174,291$ 64.6% Special Revenue Funds 824,490 703,989 575,129 395,031 169,698 646,832 1.2% Internal Service Funds 4,268,648 4,055,677 3,837,169 4,535,404 4,821,649 5,792,218 10.6% Trust & Agency Funds 171,702 167,456 169,566 627,799 427,465 378,788 0.7% Capital Project Funds 5,203,746 8,096,531 15,282,062 25,307,391 11,966,322 6,071,274 11.2% Successor Agency Funds 8,581,588 15,481,978 21,810,106 10,009,858 6,290,196 6,362,503 11.7% Total Exp & Transfers Out 51,969,267$ 62,169,737$ 72,439,477$ 77,197,420$ 57,125,869$ 54,425,906$ 100.0% FY Total Status 2003/04 42,448,325 Actuals 2004/05 40,696,344 Actuals 2005/06 35,716,244 Actuals 2006/07 40,769,411 Actuals 2007/08 54,751,838 Actuals 2008/09 51,969,267 Actuals 2009/10 62,169,737 Actuals 2010/11 72,439,477 Actuals 2011/12 77,197,420 Estimated 2012/13 54,425,906 Projected (Includes Transfers Out) TOWN EXPENDITURE HISTORICAL TREND - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 PROPOSED C - 14 TOTAL TOWN REVENUES BY CATEGORY FY 2012/13 Budgeted Revenues Total Budgeted Revenues (exclusive of Bond Proceeds and Transfers In) for most revenue categories reflect moderate declines. Key revenue highlights include: Property Tax – Property Tax revenues have declined due to the dissolution of California redevelopment agencies and loss of tax increment revenue. Sales and Use Tax – While the Town only receives 1 cent of the 8.25 cents of sales tax paid per dollar of taxable sales generated in Town, sales and use Tax remains one of the General Fund’s largest revenue sources. The FY 2012/13 budget reflects $7.9 million in sales tax revenue, or a 16% decline compared to the prior year. This is mostly due to a business model change in Netflix, an internet streaming provider, which previously accounted for nearly 40% of all sales tax received by the Town. While lower than the prior year, the FY 2012/13 sales tax revenue reflects some modest growth potential. Licenses and Permits – FY 2012/13 Licenses and Permits reflect an 8% increase as a result of increased building activity. Intergovernmental Revenues – Increases in intergovernmental revenues are due to reimbursement revenues received by the County to fund the Recognized Obligation Retirement Fund (RORF) to pay Successor Agency enforceable obligations and related administrative expenses. Interest – Interest income is forecasted to be lower in FY 2012/13 due to a declining interest rate environment and reduced cash balances than prior years as a result of significant capital expenditures planned for the coming fiscal year. Other Sources – This revenue reflects lease reimbursement revenue received from the Successor Agency to the Los Gatos Redevelopment Agency for 1992, 2002, and 2010 Certificates of Participation (COPs) debt service payments for the bond issues. 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13% of Revenues Actuals Actuals Actuals Adopted Estimated Adopted Total Property Tax 16,036,052$ 16,527,244$ 15,869,429$ 15,692,432$ 11,624,114$ 8,042,807$ 16.4% VLF Backfill Property Tax 2,307,040 2,343,495 2,327,053 2,366,930 2,250,320 2,272,820 4.6% Sales & Use Tax 8,486,999 8,317,216 9,971,409 9,400,000 8,610,000 7,859,000 16.0% Franchise Fees 1,698,060 1,699,839 1,901,605 1,716,830 1,920,610 1,939,820 4.0% Transient Occupancy Tax 966,638 923,783 1,004,659 933,020 1,014,710 1,099,860 2.2% Miscellaneous Other Taxes 1,296,588 1,399,269 1,366,390 1,273,728 1,351,979 1,484,636 3.0% Licenses & Permits 1,962,150 2,308,170 2,566,023 2,176,335 2,710,008 2,349,945 4.8% Intergovernmental Revenues 2,134,353 4,082,722 3,253,303 3,355,489 2,190,614 4,113,712 8.4% Town Services 2,247,261 2,782,789 2,895,745 2,790,951 2,922,478 2,756,039 5.6% Internal Service Reimbursements 4,357,464 4,039,222 3,839,607 4,008,268 3,990,199 4,185,401 8.5% Fines & Forfeitures 563,721 571,245 617,779 597,856 669,819 644,470 1.3% Interes t 2,966,837 1,185,277 717,407 979,849 660,077 686,878 1.4% Miscellaneous Other Sources 10,259,238 20,137,017 4,844,038 14,406,220 13,955,211 6,204,623 12.7% 55,282,401$ 66,317,288$ 51,174,447$ 59,697,908$ 53,870,139$ 43,640,011$ Plus Bond Proceeds:- - - - - - 0.0% Plus Transfers In:3,676,838 1,858,951 2,023,755 4,821,545 2,561,508 5,337,706 10.9% Total Revenues & Other Sources 58,959,239$ 68,176,239$ 53,198,202$ 64,519,453$ 56,431,647$ 48,977,717$ 100% Total Revenues PROPOSED C - 15 TOTAL TOWN EXPENDITURES BY CATEGORY FY 2012/13 Budgeted Expenditures Total Budgeted Expenditures (exclusive of Transfers Out) include budgeted Capital Improvements, which can vary significantly from year to year. Net of Capital Projects, total expenditures reflect a 10% decrease for FY 2012/13 compared to the prior year adopted budget. Expenditures of note include: Salaries and Benefits – Salary and benefit expenditures reflect a 1% increase largely due to increases in PERS employer contribution rates and salary adjustments per the Police Officers Association (POA) labor agreement. The FY 2012/13 operating expenditures also include post retirement expenses related to GASB 45. Fixed Assets – Budgeted fixed asset costs stem primarily from scheduled vehicle and equipment replacements. The variance in expenditures from year to year does not impact current year charges to the departments, only the actual cash out to replace the asset. Internal Service Charges – Internal service charges have increased due to maintenance charges associated with the new Library and other adjustments related to changes in staffing, operating costs, and equipment replacement schedules. Debt Service – Debt service charges reflect the Redevelopment Agency’s three Certificates of Participation (1992, 2002, and 2010) through a leasing expense and reimbursement revenue which nets to zero for the Town, while Successor Agency (SA) to the Los Gatos Redevelopment Agency funds provide the actual debt payment for the bond issues. The SA reimburses the General Fund for the debt service payment. The 1992 COP for Parking Lot #4 will be paid in full in early FY 2012/13. 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13% of Actuals Actuals Actuals Adopted Es timated Adopted Total Salaries and Benefits 21,804,831$ 20,863,000$ 21,049,323$ 22,380,928$ 21,949,433$ 22,224,316$ 40.8% Operating Expenditures 13,265,302 16,376,991 27,665,266 18,003,638 13,947,640 13,705,117 25.2% Grants 477,741 1,177,085 612,085 203,084 193,884 224,084 0.4% Fixed Ass ets 254,559 401,374 190,839 402,800 554,290 675,188 1.2% Interest 696,088 970,930 1,076,717 1,235,266 1,172,678 1,033,684 1.9% Internal Service Charges 3,591,713 3,276,188 3,073,299 3,161,906 3,188,403 3,389,611 6.2% Capital Projects 6,701,813 15,464,326 15,458,096 24,974,472 11,562,129 5,857,446 10.8% Succes sor Agency Pass Thru 961,215 1,216,725 696,347 973,254 840,903 928,754 1.7% Debt Services 539,167 564,167 593,750 1,155,000 1,155,000 1,050,000 1.9% 48,292,429$ 60,310,786$ 70,415,722$ 72,490,348$ 54,564,360$ 49,088,200$ Transfers Out 3,676,838 1,858,951 2,023,755 4,707,070 2,561,508 5,337,706 9.8% Total Uses of Funds 51,969,267$ 62,169,737$ 72,439,477$ 77,197,418$ 57,125,868$ 54,425,906$ 99.9% Total Expenditures Expenditures PROPOSED C - 16 GENERAL FUND REVENUES BY DEPARTMENT FY 2012/13 Departmental Revenues *The Town Manager’s Office, Human Resources, Finance & Administrative Services, Clerk Administration, and Management Information Services Programs are all accounted for within the Administrative Services Department. In FY 2009/10 the Town Treasurer was incorporated into Administrative Services Department. **In FY11/12, the functions of the Community Services Department were incorporated into the Administrative Services Department and other departments. 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13% of Departments Actuals Actuals Actuals Adopted Estimated Adopted Total Town Council 2,456$ 4,000$ 3,195$ -$ 12,349$ -$ 0.0% Town Treasurer 1,957,205 - - - - - 0.0% Non-Departmental 28,375,774 21,822,681 23,545,707 23,320,847 22,636,161 22,197,148 73.3% Administrative Services 1,139,107 1,941,466 1,612,317 1,710,754 1,647,921 1,768,882 5.8% Community Development 2,700,614 3,404,087 3,108,045 2,913,699 3,125,020 3,195,313 10.5% Police Department 1,877,228 2,134,464 2,157,639 1,961,341 2,170,143 2,046,728 6.8% Parks & Public Works 766,363 835,523 853,914 959,745 1,072,974 1,017,735 3.4% Community Services 245,187 207,994 110,033 - - - 0.0% Library Department 67,394 71,555 50,102 46,850 31,813 63,300 0.2% Total General Fund Revenues 37,131,328$ 30,421,770$ 31,440,952$ 30,913,236$ 30,696,381$ 30,289,106$ 100.0% Town Debt Payments:929,239$ 931,371$ 1,354,882$ 2,094,727$ 2,094,727$ 1,963,971$ Fund Transfers In:437,925 440,326 437,755 416,920 418,532 536,920 Net Operating Revenues 38,498,492$ 31,793,467$ 33,233,589$ 33,424,883$ 33,209,640$ 32,789,997$ PROPOSED C - 17 GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2012/13 Departmental Expenditures * The Town Manager’s Office, Human Resources, Finance & Administrative Services, and Clerk Administrator, and Management Information Services programs are all accounted for within the Administrative Services Department. In FY 2009/10 the Town Treasurer was incorporated into Administrative Services Department. ** In FY11/12, the functions of the Community Services Department were incorporated into the Administrative Services Department and other departments. 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13 Departments Actuals Actuals Actuals Adopted Estimated Adopted Police Department 13,055,759$ 12,784,152$ 13,103,808$ 13,435,045$ 13,493,074$ 13,388,959$ Parks & Public Works 5,791,776 5,137,185 5,105,809 5,662,894 5,622,662 5,714,904 Non-Departmental 1,926,496 4,892,280 2,330,255 3,443,204 3,029,144 3,158,219 Community Development 3,297,602 3,405,712 2,991,866 3,173,694 3,003,513 3,518,947 Administrative Services 2,341,696 2,356,686 2,294,655 2,827,498 2,689,558 2,894,736 Library Services 2,018,590 1,994,569 1,817,842 1,903,357 1,802,788 2,192,690 Community Services 1,145,186 925,281 618,641 - - - Town Council 163,365 160,202 163,447 207,655 190,416 213,057 Town Attorney 229,978 251,667 197,716 223,864 224,657 228,809 Treasurer 101,885 - - - - - Clerk - Elected 1,021 - - - - - Total General Fund Exp 30,073,354$ 31,907,734$ 28,624,039$ 30,877,211$ 30,055,812$ 31,310,321$ Town Debt Payments:929,239$ 931,371$ 1,354,882$ 2,094,727$ 2,094,727$ 1,963,971$ Fund Transfers Out:1,916,500 825,000 786,525 3,350,000 1,300,000 1,900,000 Net Operating Expenditures 32,919,093$ 33,664,105$ 30,765,446$ 36,321,938$ 33,450,539$ 35,174,292$ PROPOSED C - 18 GENERAL FUND REVENUES BY CATEGORY FY 2012/13 General Fund revenues and fund transfers are estimated to decrease by 2% from the FY 2012/13 adopted budget. The Town’s operations are funded through a variety of revenue sources as depicted above. Revenues were estimated by trend analysis and historical data as explained below: Sales Tax – While the Town only receives 1 cent of the 8.25 cents of sales tax paid per dollar of taxable sales generated in the Town, Sales and Use Tax remains one of the General Fund’s largest revenue sources. The FY 2012/13 budget reflects $7.9 million in sales tax revenue, or a 16% decline compared to the prior year. This is mostly due to a business model change in Netflix, an internet streaming provider, which previously accounted for nearly 40% of all sales tax received by the Town. While lower than the prior year, the FY 2012/13 sales tax revenue reflects some modest growth potential. Property Tax – Property tax values in Los Gatos continue to remain stable, with moderate growth projected for FY 2012/13. The FY 2012/13 budget reflects a property tax revenue increase of 8% compared to the FY 2011/12 adopted budget. This assumption is based on positive valuations projected by the Santa Clara County Assessor’s Office, given an increase in home sales, coupled with anticipated adjustments in property tax distribution due to the dissolution of California redevelopment agencies. The Town receives 9.5 cents of each property tax dollar paid by property owners. The remaining 90.5 cents of each dollar is distributed to several other taxing jurisdictions, including local schools, community college districts, the County of Santa Clara, Santa Clara County Central Fire Protection District, and other special districts that serve the community. 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13% of Revenue Category Actuals Actuals Actuals Adopted Estimated Adopted Total Sales & Use Tax 8,486,999$ 8,317,216$ 9,971,409$ 9,400,000$ 8,610,000$ 7,859,000$ 24.0% Property Tax 7,417,032 7,465,871 7,289,897 7,466,210 7,435,497 8,041,087 24.5% VLF Backfill Property Tax 2,307,040 2,343,495 2,327,053 2,366,930 2,250,320 2,272,820 6.9% Franchise Fees 1,698,060 1,699,839 1,901,605 1,716,830 1,920,610 1,939,820 5.9% Transient Occupancy Tax 966,638 923,783 1,004,659 933,020 1,014,710 1,099,860 3.4% Other Taxes 1,142,305 1,225,154 1,143,294 1,089,000 1,143,062 1,290,550 3.9% Licenses & Permits 1,820,007 2,035,308 2,040,811 1,902,335 2,206,324 2,075,945 6.3% Intergovernmental 634,580 878,656 834,713 739,893 844,911 801,172 2.4% Town Services 2,054,603 2,565,437 2,672,513 2,571,951 2,645,028 2,155,039 6.6% Fines & Forfeitures 563,721 571,245 617,779 597,856 669,819 644,470 2.0% Interest 2,107,205 870,512 625,654 717,981 604,812 608,566 1.9% Other Sources 8,862,377 2,456,625 2,366,447 3,505,957 3,446,015 3,464,748 10.6% Total Revenues 38,060,567$ 31,353,141$ 32,795,834$ 33,007,963$ 32,791,108$ 32,253,077$ Fund Transfers In:437,925$ 440,326$ 437,755$ 416,920$ 418,532$ 536,920$ 1.6% Total Revenues & Transfers In 38,498,492$ 31,793,467$ 33,233,589$ 33,424,883$ 33,209,640$ 32,789,997$ 100% PROPOSED C - 19 GENERAL FUND REVENUES BY CATEGORY Town Services – Charges for Town Services have decreased by 16% or $416,912 largely because of the loss of redevelopment reimbursement revenue for administrative and housing support. Town Services revenues are projected to remain flat and take in account CPI adjustments adopted by Council in April 2012. Licenses & Permits – Licenses and Permits reflect a projected 9% increase FY 2012/13 as a result of increased building activity. Intergovernmental Revenues – Intergovernmental revenues are various local, state, and federal grants and reimbursements for police, library, and general funding purposes. The 8% increase in revenue is due to changes in available funding. Interest Earnings – Interest income is forecasted to be 15% lower in FY 2012/13 due to a declining interest rate environment and reduced cash balances from prior years. Franchise Fees – Compared to the prior fiscal year, franchise fees, including cable television, electric utility and solid waste have increased by 13%. Transient Occupancy Tax – Estimates for Transient Occupancy Tax (TOT) reflects an 18% increase as personal and business related travel is gaining strength. This projection is supported by FY 2011/12 actual collections, which are trending higher than the adopted budget. Transfers In – Compared to the prior fiscal year, transfers in have increased by $120,000. Other Sources – Other sources reflect a 1% decrease compared to the prior fiscal year. This change is because the 1992 COP for Parking Lot #4 will be paid in full in early FY 2012/13. Fines and Forfeitures – These revenues include library and traffic fines and administrative citations which are expected to increase by 8%, primarily due to parking enforcement efficiencies. PROPOSED C - 20 GENERAL FUND EXPENDITURES BY CATEGORY The FY 2012/13 General Fund Operating Budget (net of transfers out) represents a 1% increase compared to the net FY 2011/12 adopted operating expenditures budget of $32,971,937. Salary & Benefits – The delivery of Town services are highly dependent on labor and comprise 60% of budgeted General Fund Expenditures for FY 2012/13. Despite strategic reductions made in staffing, overtime, and operating expenditures, salary and benefits continue to be the largest portion of the Town costs. Compared to the prior year, salary and benefits increased less than 1% or $183,000, largely due to changes in PERS rates, coupled with the last scheduled Police Officers’ Association (POA) salary increase. Health care costs for active and retired employees coupled with actuarial requirements continue to grow, exacerbating the gap between revenue and expenditures in the 5-year forecast. Operating Expenses – The FY 2012/13 operating expenditures represents a 0.1% increase when compared to the FY 2012/13 adopted budget. Town-wide efforts continue to emphasize the important of containing operating costs while maintaining core services; however, factors such as escalating energy costs, rising intergovernmental fees, and general cost increases have offset many departmental reductions. Grants & Awards –The Town provides General Fund grants and awards to local nonprofit organizations for a variety of human, art, and educational services. FY 2012/13 grants and awards reflect the same level of funding as in the prior year. Internal Service Charges – This expense represents the service program costs charged back to the operational programs for Workers Compensation Insurance, Liability Insurance, Office Equipment, Management Information Services, Vehicle Maintenance, and Building Maintenance services. The FY 2012/13 reflects a 7.7% increase in the Internal Service Fund. Debt Service – The Town facilitates the Successor Agency (SA) to the Los Gatos Redevelopment Agency’s three Certificates of Participation (COPs) through a leasing expense and reimbursement revenue which nets to zero for the Town, while SA funds provide the actual debt payment for the bond issues. Transfers Out – The General Fund transfer to the Capital Projects Fund is $1.9 million for FY 2012/13. Of the $1.9 million, approximately $1.3 million is dedicated to the Creekside Sports Park. $0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.0$18.0$20.0 Grants & Awards Fixed Assets Fund Transfers Out Debt Service Operating Expenses Salary & Benefits $0.2 $- $1.9 $2.0 $3.4 $6.8 $20.9 $35.2 Million 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13% of Expenditure Category Actuals Actuals Actuals Adopted Estimated Adopted Total Salary & Benefits 20,403,015$ 19,356,682$ 19,509,657$ 20,762,989$ 20,526,875$ 20,945,917$ 59.5% Operating Expenses 5,385,817 5,940,791 5,828,392 6,797,795 6,196,068 6,806,907 19.4% Fixed Assets 536,229 3,140,811 1,900 - - - 0.0% Grants & Awards 208,240 228,850 243,237 177,620 173,420 177,620 0.5% Debt Service 929,239 931,371 1,354,882 2,094,727 2,094,727 1,963,971 5.6% Internal Service Charges 3,540,053 3,240,600 3,040,852 3,138,806 3,159,448 3,379,876 9.6% Total Expenditures 31,002,593$ 32,839,105$ 29,978,920$ 32,971,937$ 32,150,538$ 33,274,291$ Fund Transfers Out:1,916,500$ 825,000$ 786,525$ 3,350,000$ 1,300,000$ 1,900,000$ 5.4% Total Exp & Transfers Out 32,919,093$ 33,664,105$ 30,765,445$ 36,321,937$ 33,450,538$ 35,174,291$ 100.0% PROPOSED C - 21 GENERAL FUND TAX REVENUES CITIES OF SANTA CLARA COUNTY – TAX REVENUES PER CAPITA TO BE UPDATED FY 2090/10 Tax Revenue Amounts and Per Capita * * Latest fiscal year for which data is available Cities Population Amount Per Capita Amount Per Capita Amount Per Capita Amount Per Capita Campbell 40,420 8,761,390$ 217$ 9,494,403$ 234.89$ 1,267,573$ 31.36$ 214,198$ 5$ Cupertino 55,840 10,439,000 187 9,931,000 178 2,142,000 38 694,000 12 Gilroy 52,027 9,553,656 184 11,539,468 222 829,901 16 525,020 10 Los Altos 28,863 13,051,308 452 2,255,526 78 1,345,854 47 413,053 14 Los Altos Hills 8,889 3,205,734 361 58,593 7 - - 108,152 12 LOS GATOS 30,802 9,809,365 318 8,317,217 270 923,783 30 1,220,802 40 M ilpitas 70,817 17,146,082 242 15,267,613 216 4,234,489 60 389,025 5 M onte Sereno 3,800 1,171,038 308 11,146 3 - - 41,925 11 M organ Hill 40,246 6,865,673 171 4,514,936 112 772,864 19 157,651 4 M ountain View 74,762 26,017,000 348 15,242,000 204 3,267,000 44 2,206,000 30 Palo Alto 65,408 26,004,000 398 17,991,000 275 6,858,000 105 - - San Jose 1,023,000 498,973,000 488 123,312,000 121 17,250,000 17 34,952,000 34 Santa Clara 118,830 29,110,000 245 32,232,000 271 8,514,000 72 856,000 7 Saratoga 31,997 8,194,364 256 954,574 30 144,151 5 303,990 10 Sunnyvale 138,826 43,699,859 315 26,590,337 192 5,578,196 40 1,365,638 10 Average 118,968 47,466,765$ 399$ 18,514,121$ 156$ 3,541,854$ 30$ 2,896,497$ 24$ Property Tax Sales Tax Occupancy Tax Business License Tax PROPOSED C - 22 GENERAL FUND TAX REVENUES BUDGET WITH 10 YEAR HISTORY Sum of Key Change from Revenues Prior Year 2001/02 Actuals 4,784,476$ 6,953,880$ 788,408$ 986,525$ 13,513,289$ (16.5%) 2002/03 Actuals 4,977,119$ 6,928,817$ 713,064$ 1,003,014$ 13,622,014$ 0.8% 2003/04 Actuals 5,207,381$ 6,914,526$ 829,026$ 1,071,865$ 14,022,798$ 2.9% 2004/05 Actuals 5,302,061$ 7,904,130$ 868,908$ 1,015,000$ 15,090,099$ 7.6% 2005/06 Actuals 5,831,822$ 8,655,566$ 1,028,664$ 1,058,642$ 16,574,694$ 9.8% 2006/07 Actuals 7,036,876$ 9,345,432$ 1,245,078$ 1,176,422$ 18,803,808$ 13.4% 2007/08 Actuals 7,417,030$ 8,486,999$ 966,638$ 1,138,057$ 18,008,724$ (4.2%) 2008/09 Actuals 7,057,258$ 8,317,217$ 923,783$ 1,139,107$ 17,437,365$ (7.3%) 2009/10 Actuals 7,057,258$ 8,317,217$ 923,783$ 1,220,802$ 17,519,060$ (2.7%) 2010/11 Actuals 7,289,897$ 9,971,409$ 1,004,659$ 1,136,511$ 19,402,476$ 11.3% 2011/12 Estimated 7,435,497$ 8,610,000$ 1,014,710$ 1,136,510$ 18,196,717$ 3.9% 2012/13 Budgeted 8,041,087$ 7,859,000$ 1,099,860$ 1,286,510$ 18,286,457$ -6% Business License Tax Occupancy Tax Sales Tax Property TaxFiscal Year PROPOSED C - 23 GENERAL FUND ESTIMATED FUND BALANCE ACTIVITY Fund Balance Activity includes:  FY 2012/13 Budgeted Revenue and Expenditure appropriations, and transfers to and from the General Fund.  Although repaid by the former Los Gatos Redevelopment Agency in January 2012, the Advance to SA is reflected on the estimated fund balance given the uncertainty surrounding the dissolution of redevelopment agencies, including the ongoing audit conducted by the State and County of Santa Clara.  FY 2012/13 authorized Carryovers reflect operating appropriations that were brought forward as a funding source. The actual carryover amount will be determined at FY 2011/12 year-end, with funding offset by undesignated reserves.  In FY 2011/12, Council adopted a General Fund Reserve Policy that maintains a minimum of 25% of General Fund expenditures equally divided between the Budget Stabilization Reserve and Catastrophic Reserve.  Undesignated Fund Balance is year-end fund balance not previously identified for a specific purpose; therefore, it can be reprogrammed as appropriations or designated reserves by Council. Town policy designates all year-end fund balance to the Budget Stabilization and Capital/Special Project Reserve, eliminating undesignated fund balance. However, year-end fund balance is currently being distributed to the Capital Improvement and Special Projects Reserve as the Catastrophic and Budget Stabilization Reserves are fully funded. Estimated Revenues &Expenditures &Estimated July 1, 2012 Fund Balance Fund Balance June 30, 2013 Balance Sources Uses Balance Reserved Fund Balance Reserve for Long Term Notes-$ -$ -$ -$ Advance to RDA 1,500,000$ - - 1,500,000 Unreserved Fund Balance Undesignated Reserves Plus Appropriated Designated Reserves 32,789,997 32,784,291 5,706 Undesignated /Available Designated Reserves Manager's Contingency- - - - Designated Productivity 100,000 - - 100,000 Open Space Reserve 562,000 - - 562,000 GASB Market Fluctuations 247,705 - - 247,705 Sustainability Reserve- - - - Economic Uncertainty Reserve 3,678,001 - 3,678,001 YE Savings- - - - Capital / Special Projects 5,778,098 - (700,000) 5,078,098 Authorized Carryovers 5,815 - - 5,815 Actuarial 400,000 - 400,000 Operating Grants 140,553 140,553 Special Studies 255,000 255,000 Revenue Stabilization Reserve 7,863,931 - (490,000) 7,373,931 Vasona Land Sale 2,534,779 - (1,200,000) 1,334,779 23,065,882$ 32,789,997$ 30,394,291$ 20,681,588$ General Fund Estimated Fund Balance Activity FY 2012/13 Use of / Addition to GF Reserves: Total Use of and Addition To Reserves PROPOSED C - 24 SCHEDULE OF INTERFUND TRANSFERS FISCAL YEAR 2011/12 Estimated Adopted Budget 2011/12 2011/12 2012/13 2012/13 Fund Description Transfers In Transfers Out Transfers In Transfers Out General Funds General Fund 418,532$ 1,300,000$ 536,920$ 1,900,000$ Special Revenue Funds Solid Waste Management- - - - HCD Housing Rehabilitation- - - - HCD-Community Dev Block Grant 92,976 - - 227,615 Urban Run-Off Program- - - - Landscape & Lighting Districts Blackwell District- 460 - 460 Kennedy Meadows District- 1,510 - 1,510 Gemini Court District- 610 - 610 Santa Rosa Heights District- 660 - 660 Vasona Heights District- 1,430 - 1,430 Hillbrook District- 250 - 250 Arroyo Del Rancho District- - - - Internal Service Funds Self Insurance Fund- - - - Worker's Comp Self Insurance- - - 100,000 Management Information Systems- - - - Office Stores Fund- - - - Equipment Fund- 194,000 - 194,000 Vehicle Maintenance Fund- - - - Facilities Maintenance Fund- 100,000 - 477,000 Trust & Agency Funds Barbara J. Cassin Trust- - - 20,000 Capital Project Funds GFAR 1,400,000 102,000 2,377,000 102,000 Grant Funded CIP Projects- 92,976 227,615 - Storm Drain #1- - - - Storm Drain #2- - - - Storm Drain #3- - - - Traffic Mitigation- 11,612 - 10,000 Construction Utility Underground- - - - Gas Tax - Street & Signal- 106,000 - 106,000 Successor Agency of the Los Gatos RDA Funds SA - Administration 650,000 - 250,000 - SA - Debt Service - 650,000 1,946,171 - SA - Low / Moderate Housing - - - - SA - Recognized Obligation Retirement- - - 2,196,171 Total Transfers 2,561,508$ 2,561,508$ 5,337,706$ 5,337,706$ PROPOSED C - 25 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2012/13 6/30/11 Plus Less 6/30/12 Es timated Revenues &Transfer Expenditures &Transfers Us e of Estimated Fund Bal ance Carryforwards In Carryforwards Out Res erves Fund Balance GENERAL FUND Unreserved Fund Balances Undesignated Reserv es Available to b e A ppropriated-$ 32,253,077$ 536,920$ 33,274,291$ 1,900,000$ 2,390,000$ 5,706$ Reserved Fund Balances Res erve for Encumbrances- - - - - - - Res erve for Long Term Notes- - - - - - - A d vance to RDA 1,500,000 - - - - - 1,500,000 A ctuarial- - - - - - - Designated Reserves A u thorized Carryforwards 5,815 - - - - - 5,815 Manager's Contingency- - - - - - - Designated Produ ctivity 100,000 - - - - - 100,000 Catastrophic Reserv e 3,678,001 - - - - - 3,678,001 Budg et Stabilization Res erve 7,863,931 - - - - (490,000) 7,373,931 Capital / Special Projects 5,778,098 - - - - (700,000) 5,078,098 Open Space Reserve 562,000 - - - - - 562,000 GABS M arket Flucation 247,705 - - - - - 247,705 YE Savin gs- - - - - - - Pos t Retirement Medical 400,000 - - - - - 400,000 Vas ona Land Sale 2,534,779 - - - - (1,200,000) 1,334,779 Operating Grants 140,553 - - - - - 140,553 Secial Studies 255,000 - - - - - 255,000 Tota l General Fund 23,065,882$ 3 2,25 3,077$ 536,920$ 33,274,291$ 1,9 00,0 00$ -$ 20,681,5 88$ SPECIAL REVENUE FUNDS Solid Waste Fund-$ -$ -$ -$ -$ -$ -$ Hous ing Cons ervation Program 13,455 5,029 - 12 - - 18,472 Community Dev Block Grant 2,506 274,079 - 46,464 227,615 - 2,506 Urban Run-Off So urce Fund 75,786 502,000 - 338,798 - - 238,988 Blackwell Assessmen t District 4,983 3,236 - 3,030 460 - 4,729 Kenn edy Assessment Dis trict 24,215 10,547 - 6,123 1,510 - 27,129 Gemini Assessment District 11,837 4,316 - 4,155 610 - 11,388 Santa Rosa Assessment District 53,561 5,288 - 4,135 660 - 54,054 Vas ona A ss es sment Dis trict 21,644 9,991 - 5,240 1,430 - 24,965 Hillbrook Assessment Dis trict 2,754 5,970 - 6,340 250 - 2,134 Tota l Special Revenue F unds 210,741$ 820,456$ -$ 414,297$ 2 32,5 35$ -$ 3 84,3 65$ Fis cal Year 20 1 2/13 Adopted Budg et General Fund Undesignated Reserves reflects ongoing revenue, carryforward, transfer, and expenditure activity, the net effect of t he cha nge in Designat ed Re serves, and t he use of Undesigna ted Reserves. General Fund Designated Reserve changes refl ect: the Mana ger Contingency Reserve utilized each yea r to fund unbudgeted approp riatio ns demeed worthwhile (reserve is rep lenished at the end of the fisca l year as funding all ows), a transfer fro m Capital and Special Projects Reserve to the Capital Improvement Program. Year-end excess of revenues over expenditures a re programmed equally to the Designated for Capital a nd Special Projects Reserve and the Revenue Stabilization Reserves. PROPOSED C - 26 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2012/13 6/30/11 Plus Less 6/30/12 Es timated Revenues &Transfer Expenditures &Transfers Us e of Estimated Fund Balance Carryforwards In Carryforwards Out Res erves Fund Balance INTERNAL SERVICE FUNDS A BAG Self Insuran ce 1,876,615$ 501,292$ -$ 652,249$ -$ -$ 1,725,658$ Worker's Comp Self Ins urance 2,716,517 659,429 - 618,127 100,000 - 2,657,819 Management In formation Systems 2,372,367 1,020,673 - 1,345,488 - - 2,047,552 Office Sto res Fund 207,895 127,500 - 143,050 - - 192,345 Equipmen t Replacement 2,685,224 439,532 - 495,942 194,000 - 2,434,814 Vehicle Maintenance 476,490 544,325 - 537,515 - - 483,300 Facilities Maintenan ce 981,783 1,138,086 - 1,228,847 477,000 - 414,022 Tota l Interna l Service Reserves 11,316,891$ 4,430,837$ -$ 5,021,218$ 7 71,0 00$ -$ 9,9 55,5 10$ TRUST & AGENCY Friends of the Library-$ -$ -$ -$ -$ -$ -$ Lib rary Tru st 42,595 15,858 - 58,452 - - 1 Lib rary History Project 809 1,001 - 1,810 - - - Ness Trust Bequest 88,679 1,500 - 45,000 - - 45,179 Betty McClendon Trust 98,020 700 - 50,000 - - 48,720 Barbara J Cas sin Trust 521,252 5,000 - 60,000 20,000 - 446,252 Parking District #88 314,622 138,090 - 143,526 - - 309,186 Tota l Trust & Agency Reserves 1,065,977$ 162,149$ -$ 358,788$ 20,0 00$ -$ 8 49,3 38$ CAPITAL PROJECTS F UNDS GFAR 11,226,931$ 280,000$ 2,377,000$ 4,578,589$ 102,000$ -$ 9,203,342$ GFAR - Designated for Parkin g 1,460,210 - - - - - 1,460,210 Grant Fun d ed CIP Projects(57,149) - 227,615 94,685 - - 75,781 Storm Drain #1 412,245 48,120 - - - - 460,365 Storm Drain #2 723,157 53,420 - - - - 776,577 Storm Drain #3(73,802) 1,000 - - - - (72,802) Traffic Mitigation 79,232 540,000 - 530,000 10,000 - 79,232 Construction Tax-Undergrounding 2,416,480 51,250 - - - - 2,467,730 Gas Tax 151,574 834,560 - 650,000 106,000 - 230,134 Tota l Capital Pro jects Funds 16,338,878$ 1,808,350$ 2,604,615$ 5,853,274$ 2 18,0 00$ -$ 14,6 80,5 69$ Successor Agency of the Los Gatos RDA Funds SA - Adminis tration 1,258,376$ 5,000$ 250,000$ 256,190$ -$ -$ 1,257,186$ SA - Debt Service 1,963,801 1,963,971 1,946,171 3,910,142 - - 1,963,801 SA - Lo w / M oderate Hous ing 123,857 - - - - - 123,857 SA - Recognized Ob ligation Retirement- 2,196,171 - - 2,196,171 - - Total Successor Agency of the Los Gatos RDA Reserves 3,346,034$ 4,165,142$ 2,196,171$ 4,166,332$ 2,1 96,1 71$ -$ 3,3 44,8 44$ TOTAL RESERVES 55,344,403$ 4 3,64 0,011$ 5,337,706$ 49,088,200$ 5,3 37,7 06$ -$ 49,8 96,2 14$ Equipment Rep lacement F und Balance is the accumulation of replacement funding-to-date for assets. Revenues are the pro-rated annual charges to departments for asset replacement, and exp enditures reflect the cost of equipment up for replacement in this fiscal year. The Fund will continue to reallocate Fund Balance as a transfer to the General Fund for assets that have accumulated rep lacement costs and have been identified as no longer b eing part o f the Replacement Schedule. Trust and Agency Fund Bala nces reflect the spending down of Fund Balance for new Lib ra ry Facility. Fis cal Year 20 1 2/13 Adopted Budg et GFAR. Grant Fund, St orm Drain Funds, and Gas Tax Fund Balances reflect the spending down of available funds in FY 2011/1 2, in l ine with the planned Capit al Imp ro vement Pro gram. The GFAR a nd Grant Funds also include transfers-in to fund these p lanned p rojects. Traffic Mi tigation Fund reflect s a transfer out of $10,000 for estimated annual administration fees. Grant Funded Proj ects Fund Balance reflect s approp riatio ns for incoming revenues and prior year carryforwards, which will result in eit her positive or negative fund balance depending on timing of receipt s and budget. All grant projects net to zero at compl etion. PROPOSED C - 27 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 Actual Actual Actual Es timated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance GENERAL FUND Reserved Fund Balances Reserve for Encumbrances-$ -$ -$ -$ -$ Reserve for Long Term Notes 586,640 - - - - Advance to RDA 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Actuarial- - - Unreserved Fund Balances Undesignated Reserves Available to be Appropriated- - - - 5,706 Designated Reserves Authorized Carryforwards 139,610 127,340 5,815 5,815 5,815 Manager's Contingency 100,000 - - - - Des ignated Productivity 100,000 100,000 100,000 100,000 100,000 Catastrophic Reserves 3,678,001 3,678,001 3,678,001 3,678,001 3,678,001 Budget Stabilization Reserve 4,692,516 6,217,532 7,863,931 7,863,931 7,373,931 Capital / Special Projects 3,670,083 4,545,098 5,718,997 5,778,098 5,078,098 Open Space Reserve 562,000 562,000 562,000 562,000 562,000 GABS Market Flucation 785,908 526,525 247,705 247,705 247,705 YE Savings 175,000 - - - - Post Retirement Medical 400,000 400,000 400,000 400,000 400,000 Vasona Land Sale 6,078,967 2,991,589 2,834,779 2,534,779 1,334,779 Operating Grants 240,553 190,553 140,553 140,553 140,553 Special Studies- - 255,000 255,000 255,000 Total General Fund Reserves 22,709,278$ 20,838,638$ 23,306,781$ 23,065,882$ 20,681,588$ SPECIAL REVENUE FUNDS Solid Waste Fund-$ -$ -$ -$ - Housing Conservation Program 675,286 182,654 8,438 13,455 18,472 Community Dev Block Grant 2,202 2,650 (90,470) 2,506 2,506 Urban Run-Off Source Fund 20,181 40,204 58,143 75,786 238,988 Blackwell Assessment District 4,777 4,705 5,437 4,983 4,729 Kennedy Asses s ment District 15,804 19,539 20,131 24,215 27,129 Gemini Assessment District 9,766 11,078 12,288 11,837 11,388 Santa Rosa Assessment District 57,981 54,953 53,068 53,561 54,054 Vasona Assessment District 10,745 13,387 18,323 21,644 24,965 Hillbrook Asses s ment District 4,543 1,969 2,264 2,754 2,134 Total Special Revenue Funds 801,285$ 331,139$ 87,622$ 210,741$ 384,365$ INTERNAL SERVICE FUNDS ABAG Self Insurance 2,091,698$ 2,078,635$ 2,066,068$ 1,876,615$ 1,725,658 Worker's Comp Self Insurance 2,583,280 2,725,375 2,809,884 2,716,517 2,657,819 Management Information Systems 2,175,716 2,210,653 2,265,502 2,372,367 2,047,552 Office Stores Fund 263,443 256,357 245,645 207,895 192,345 Equipment Replacement 3,286,022 3,096,960 3,093,890 2,685,224 2,434,814 Vehicle Maintenance 268,331 428,529 438,816 476,490 483,300 Facilities Maintenance 716,699 820,170 953,445 981,783 414,022 Total Internal Service Reserves 11,385,189$ 11,616,679$ 11,873,250$ 11,316,891$ 9,955,510$ PROPOSED C - 28 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 Actual Actual Actual Estimated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance TRUST & AGENCY Friends of the Library-$ -$ -$ -$ - Library Trust 51,002 53,623 51,937 42,595 1 Library History Project 3,366 851 58 809 - Nes s Trust Beques t 185,008 188,718 191,179 88,679 45,179 Betty McClendon Trust 94,179 96,069 97,320 98,020 48,720 Barbara J Cassin Trust- - 666,252 521,252 446,252 Parking District #88 328,060 326,358 324,857 314,622 309,186 Total Trust & Agency Reserves 661,615$ 665,619$ 1,331,603$ 1,065,977$ 849,338$ CAPITAL PROJECTS FUNDS GFAR 9,528,699$ 22,440,258$ 11,841,355$ 11,226,931$ 9,203,342 GFAR - Designated for Parking 1,757,000 1,460,210 1,460,210 1,460,210 1,460,210 Grant Funded CIP Projects(161,410) 474,646 35,827 (57,149) 75,781 Storm Drain #1 207,256 201,328 284,346 412,245 460,365 Storm Drain #2 510,697 571,981 657,314 723,157 776,577 Storm Drain #3(36,086) (50,600) (75,204) (73,802) (72,802) Traffic Mitigation 79,233 79,232 79,232 79,232 79,232 Construction Tax-Undergrounding 2,462,596 2,323,015 2,385,666 2,416,480 2,467,730 Gas Tax 683,181 359,469 73,264 151,574 230,134 Total Capital Projects Funds 15,031,166$ 27,859,539$ 16,742,010$ 16,338,878$ 14,680,569$ SUCCESSOR AGENCY TO THE LOS GATOS RDA SA - Administration 2,065,624$ 1,409,012$ 1,243,048$ 1,258,376$ 1,257,186 SA - Debt Service 7,988,113 7,419,222 1,454,310 1,963,801 1,963,801 SA - Low / Moderate Housing 8,631,126 5,140,056 - 123,857 123,857 SA - Recognized Obligation Retirement- - - - - Total Redevelopment Reserves 18,684,863$ 13,968,290$ 2,697,358$ 3,346,034$ 3,344,844$ TOTAL RESERVES 69,273,396$ 75,279,904$ 56,038,624$ 55,344,403$ 49,896,214$ PROPOSED C - 29 DEPARTMENT REVENUES BY PROGRAM 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13 Actuals Actuals Actuals Adopted Es timated Adopted Town Offices 1101 Town Council-$ -$ -$ -$ -$ -$ 1102 Town Clerk - Elected- - - - - - 1103 Town Treasurer 1,957,205 - - - - - 1055 Town Clerk- - - - - - 1301 Town Attorney 2,455 4,000 3,195 - 12,349 - 1302 ABAG - Self Ins urance Fund 540,326 491,082 500,056 532,958 521,657 501,292 Total Town Offices 2,499,986$ 495,082$ 503,251$ 532,958$ 534,006$ 501,292$ Administrative Services Department 1201 Non-Departmental 29,305,014$ 22,754,051$ 24,900,589$ 25,415,574$ 24,730,888$ 24,181,119$ 2101 Town Manager Administration- - - 5,500 5,500 5,500 2103 Hous ing Program 20,454 13,191 20,496 12,500 5,029 5,029 2104 HCD Housing Rehab 133,046 49,945 136,960 210,594 20,464 274,079 2201 Human Resources- - - - 2,845 - 2202 Workers' Compens ation Fund 650,526 648,890 655,734 687,085 683,703 659,429 2301 Finance & Adminis trative Services 1,139,107 1,941,466 1,612,317 1,652,981 1,591,322 1,745,076 2302 Office Stores Fund 123,944 119,598 113,541 118,500 111,300 127,500 2303 Parking Ass essment District 145,082 144,182 146,039 141,830 138,030 138,090 2401 Clerk Administation- - - - - - 2501 Management Information Sys tems 1,037,521 1,002,319 984,426 1,001,546 1,012,527 1,020,673 2801 Operating Grant- - - 39,013 20,000 - 2802 Obesity Grant- - - - 15,000 5,052 2999 Pass Thru Accounts- - - 13,260 13,254 13,254 Total Administrative Services 32,554,694$ 26,673,642$ 28,570,102$ 29,298,383$ 28,349,862$ 28,174,801$ Community Development 3101 Administration-$ -$ -$ -$ -$ -$ 3201 Developmental Review 538,887 761,510 629,647 562,500 712,500 599,570 3202 Advanced Planning 236,298 411,148 303,105 299,000 308,000 340,000 3301 Inspection Services 1,144,379 1,279,819 1,454,572 1,274,000 1,555,000 1,456,000 3401 Code Compliance 400 1,900 63,303 1,000 800 1,000 3501 BMP Housing Program 120,691 107,186 71,367 107,699 105,220 128,243 3999 Pass Thru Accounts 780,649 949,711 586,052 669,500 443,500 670,500 Total Community Development 2,821,304$ 3,511,274$ 3,108,046$ 2,913,699$ 3,125,020$ 3,195,313$ Police Department 4101 Administration 81,716$ 29,332$ 60,201$ 8,500$ 47,700$ 10,000$ 4201 Records & Communication 22,359 12,221 21,583 14,500 12,600 12,200 4202 Personnel & Community Services 267,543 246,943 281,875 341,210 376,720 352,450 4301 Patrol 628,332 686,259 711,187 573,700 603,750 598,710 4302 Traffic 328,968 531,554 417,270 386,216 393,263 388,453 4303 Investigations 3,649 10,482 10,666 575 26,219 575 4304 Parking Program 520,547 590,405 636,278 626,640 688,490 675,340 4800 Grants Program - Police- 17,130 - - 12,401 - 4999 Pass Thru Accounts 24,114 10,140 18,580 10,000 9,000 9,000 Total Police Department 1,877,228$ 2,134,466$ 2,157,640$ 1,961,341$ 2,170,143$ 2,046,728$ PROPOSED C - 30 DEPARTMENT REVENUES BY PROGRAM 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13 Actuals Actuals Actuals Adopted Es timated Adopted Parks & Public Works 5101 Administration-$ -$ -$ -$ -$ -$ 5201 Engineering Program Services- - - - - - 5202 Engineering Development Srvcs 295,304 415,297 466,075 427,100 407,020 499,800 5203 Non-Point Source Fund 135,000 135,000 135,000 135,000 135,000 502,000 5301 Park Services 207,174 198,742 237,006 201,985 190,529 187,275 5302 Environmental Services 32,177 48,891 30,739 50,660 50,660 50,660 5401 Street & Signals 372 9,943 2,602 - 1,477 - 5402 Equipment Replacement 427,220 380,685 369,525 319,819 319,819 439,532 5403 Vehicle Maintenance 638,021 624,500 488,689 540,100 546,925 544,325 5404 Facilities Maintenance 1,123,134 1,011,096 981,771 1,050,300 1,069,359 1,138,086 5405 Property Damage 117,117 82,107 56,747 - 57,139 50,000 5501 Lighting & Landscape Districts 36,340 35,709 39,158 40,200 39,348 39,348 5999 Pass Thru Accounts 146,397 129,432 91,483 280,000 366,149 230,000 8011 GFAR 480,371 16,974,248 449,670 6,280,000 6,582,688 280,000 8021 Grant Funded CIP Projects 608,948 2,377,868 1,552,778 1,562,712 481,337 - 8031 Storm Drain #1 163,682 39,962 83,018 48,120 127,899 48,120 8032 Storm Drain #2 55,208 61,285 85,333 53,420 65,843 53,420 8033 Storm Drain #3(2,303) 2,665 86 1,000 1,402 1,000 8041 Traffic Mitigation 46,100 60,429 210,655 2,526,536 2,034,189 540,000 8042 Utility Undergrounding 87,352 68,766 62,652 51,010 35,521 51,250 8051 Gas Tax - Street & Signals 526,622 505,042 734,341 834,310 834,310 834,560 Total Park s & Public Works 5,124,236$ 23,161,667$ 6,077,328$ 14,402,272$ 13,346,614$ 5,489,376$ Community Services 6101 Administration-$ -$ -$ -$ -$ -$ 6201 Neighborhood Center 26,106 14,555 65,203 - - - 6204 Arts & Culture 52,470 31,108 5,746 - - - 6205 Community Grants 2,975 - - - - - 6303 AB2020 Beverage Container 7,714 5,000 8,344 - - - 6999 Pass Thru Accounts 3,054 1,255 - - - - Total Community Services 92,319$ 51,918$ 79,293$ -$ -$ -$ Library 7101 Administration 12,744$ 15,413$ 12,056$ 7,050$ 2,913$ 7,800$ 7201 Adult Services- - - - - - 7202 Children's Services- - - - - - 7203 Acquisitons & Cataloging 4,558 4,813 3,391 4,000 1,900 3,000 7204 Circulation Services 50,092 51,330 34,655 35,800 27,000 32,500 7301 Library Trust 31,931 20,601 16,905 45,800 15,858 15,858 7302 Clelles Ness Bequest Trust 5,490 3,710 2,461 1,500 1,500 1,500 7303 Library History Project 1,520 1,076 2,641 3,018 751 1,001 7304 Betty McClendon Trust 2,800 1,890 1,251 1,000 700 700 7305 Barbara J Cassin Trust- - 666,252 5,000 5,000 5,000 Total Library 109,135$ 98,833$ 739,612$ 103,168$ 55,622$ 67,359$ Successor Agency to the Los Gatos RDA 9101 SA - Administration 66,908$ 5,951$ 4,250$ 10,000$ 4,324$ 5,000$ 9201 SA - Debt Service 7,214,256 7,381,820 6,867,638 6,714,128 3,349,046 - 9202 DEBT FOR 1992 COPs 251,210 249,271 253,149 253,000 252,000 21,000 9204 DEBT FOR 2002 COPs 679,956 682,100 678,575 679,476 679,276 679,146 9205 DEBT TO 2010 COPS- - 423,161 1,163,451 1,163,451 1,263,825 9301 SA - Low / Moderate Housing 1,991,169 1,871,264 1,712,380 1,666,032 837,313 - 9302 Ditto Lane- - 22 - 3,462 - 9401 SA - Recognized Obligation Retirement- - - - - 2,196,171 Total S A to the Los Gatos RDA 10,203,499$ 10,190,406$ 9,939,175$ 10,486,087$ 6,288,872$ 4,165,142$ Trans fers In 3,676,838 1,858,951 2,023,755 4,821,545 2,561,508 5,337,706 Carryforward of CIP Grant Revenue Total Revenues by Department:58,959,239$ 68,176,239$ 53,198,202$ 64,519,453$ 56,431,647$ 48,977,717$ PROPOSED C - 31 DEPARTMENTAL EXPENDITURES BY PROGRAM 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13 Actuals Actuals Actuals Adopted Estimated Adopted Town Offices 1101 Town Council 163,365$ 160,202$ 163,447$ 207,655$ 190,416$ 213,057$ 1102 Town Clerk - Elected 1,021 - - - - - - 1103 Town Treasurer 101,885 - - - - - - 1055 Town Clerk- - - - - - - 1301 Town Attorney 229,978 251,667 197,716 223,864 - 224,657 228,809 1302 ABAG - Self Insurance Fund 304,071 504,147 512,623 625,224 711,110 652,249 Total Town Offices 800,320$ 916,016$ 873,786$ 1,056,743$ 1,126,183$ 1,094,115$ Administrative Services Department 1201 Non-Departmental 2,855,735$ 5,823,651$ 3,685,138$ 5,537,931$ 5,123,871$ 5,122,190$ 2101 Town Manager Administration 452,185 673,498 640,189 1,031,808 949,555 1,103,514 2102 Community Grants- - - 99,090 98,490 111,520 2103 HCD Housing Rehab 157,104 505,823 194,711 5,100 12 12 2104 Comm. Development Block Grant 46,447 47,662 30,604 26,781 20,464 46,464 2201 Human Resources 545,066 390,688 384,982 392,698 425,888 400,597 2301 Finance & Administrative Services 1,060,473 1,062,106 1,044,287 1,091,714 1,013,676 1,099,055 2401 Clerk A dministration 283,973 230,394 225,196 159,920 156,558 160,795 2402 Clerk Services- - - - - - 2801 Tobacco Prevention Initiatitves- - - 39,013 22,783 - 2802 Obesity Grant- - - - 9,354 6,000 2999 Pas s Through- - - 13,254 13,254 13,254 2202 Workers' Compensation Fund 651,302 506,795 571,225 623,097 777,070 618,127 2302 Office Stores Fund 119,408 126,686 124,253 134,050 149,050 143,050 2501 Management Information Systems 780,615 967,384 929,576 1,056,207 905,662 1,345,488 2303 Parking Assessment District 148,457 145,884 147,540 148,265 148,265 143,526 Total Administrative Services 7,100,765$ 10,480,571$ 7,977,701$ 10,358,928$ 9,813,952$ 10,313,592$ Community Development 3101 Administration 89,769$ 106,347$ 133,613$ 140,974$ 138,545$ 155,818$ 3201 Developmental Review 846,854 792,228 843,378 822,397 875,309 990,914 3202 Advanced Planning 324,709 371,140 295,937 348,942 330,789 381,165 3301 Ins pection Services 1,201,569 1,159,387 1,018,560 1,039,891 1,064,158 1,143,966 3401 Code Compliance 54,048 26,904 42,958 45,590 45,992 48,342 3501 BMP Housing Program 120,691 107,187 71,367 106,400 105,220 128,243 3999 Pas s Thru Accounts 780,654 949,706 586,052 669,500 443,500 670,500 Total Community Development 3,418,294$ 3,512,899$ 2,991,865$ 3,173,694$ 3,003,513$ 3,518,948$ Police Department 4101 Administration 500,754$ 488,663$ 480,932$ 486,244$ 490,684$ 497,856$ 4201 Records & Communication 1,566,102 1,693,890 1,697,338 1,833,832 1,799,824 1,916,307 4202 Pers onnel & Community Services 603,670 822,623 811,631 843,443 909,103 709,624 4301 Patrol 6,992,385 6,297,791 6,492,809 6,558,930 6,574,958 6,504,667 4302 Traffic 719,597 769,632 799,574 870,101 850,451 864,893 4303 Investigations 2,153,801 2,138,493 2,175,508 2,214,700 2,184,681 2,239,028 4304 Parking Program 495,338 548,421 627,244 617,793 661,972 647,585 4800 Grants Program - Police- 14,047 164 - 12,401 - 4999 Pas s Thru Accounts 24,114 10,592 18,608 10,000 9,000 9,000 Total Police Department 13,055,761$ 12,784,152$ 13,103,808$ 13,435,043$ 13,493,074$ 13,388,960$ PROPOSED C - 32 DEPARTMENTAL EXPENDITURES BY PROGRAM 2008/09 2009/10 2010/11 2011/12 2011/12 2012/13 Actuals Actuals Actuals Adopted Estimated Adopted Parks & Public Works 5101 Administration 375,737$ 260,813$ 248,423$ 273,000$ 237,002$ 277,232$ 5201 Engineering Program Services 787,382 688,241 676,311 833,866 816,127 858,587 5202 Engineering Development Srvcs 769,054 674,246 637,226 605,060 615,988 617,588 5203 Non-Point Source Fund 179,919 114,978 117,061 135,900 117,357 338,798 5301 Park Services 2,194,914 1,532,274 1,672,635 1,632,071 1,592,875 1,539,872 5302 Environmental Services 196,078 202,880 177,337 207,459 192,268 219,144 5401 Street & Signals 1,436,054 1,762,184 1,671,062 1,831,438 1,792,149 1,922,479 5402 Equipment Replacement 211,069 384,737 178,595 223,893 534,485 495,942 5403 Vehicle Maintenance 600,991 464,303 478,401 536,200 509,251 537,515 5404 Facilities Maintenance 941,388 899,826 848,496 1,042,733 941,021 1,228,847 5405 Property Damage 82,237 89,996 108,669 - 10,103 50,000 5501 Lighting & Landscape Districts 28,488 28,771 28,358 32,180 26,945 29,023 5999 Pass Thru Accounts 146,397 129,432 91,482 280,000 366,149 230,000 8011 GFAR 3,696,381 5,051,708 11,734,453 19,886,103 8,495,113 4,578,589 8021 Grant Funded CIP Projects 552,256 1,743,648 2,191,072 1,751,752 481,337 94,685 8031 Storm Drain #1 163,890 45,890 - 285,000 - - 8032 Storm Drain #2- - - - - - 8033 Storm Drain #3 261,457 17,180 24,690 - - - 8041 Traffic Mitigation 39,099 56,604 178,465 2,516,536 2,022,577 530,000 8042 Utility Undergrounding- 208,347 - - 4,707 - 8051 Gas Tax - Street & Signals 377,661 722,753 914,546 650,000 650,000 650,000 Total Parks & Public Works 13,040,452$ 15,078,811$ 21,977,282$ 32,723,191$ 19,4 05,454$ 14,198,301$ Community Services 6101 Administration 126,227$ 109,276$ 134,428$ -$ -$ -$ 6201 Neighborhood Center 458,854 292,002 101,650 - - - 6204 Arts & Culture 94,888 68,004 95,069 - - - 6205 Community Grants 145,147 130,063 110,157 - - - 6303 AB2020 Grants 245 15,155 - - - - 6999 Pass Thru Accounts 3,054 716 - - - - Total Community Services 828,415$ 615,216$ 441,304$ -$ -$ -$ Library 7101 Administration 310,562$ 306,663$ 319,672$ 319,095$ 282,822$ 355,703$ 7201 Adult Services 559,681 564,512 496,928 442,424 451,114 491,299 7202 Children's Services 408,925 374,579 369,331 420,566 360,846 447,303 7203 Acquisitons & Cataloging 224,883 205,435 152,106 180,935 155,716 207,265 7204 Circulation Services 514,539 543,381 479,806 540,337 552,290 691,120 7301 Library Trust 15,628 17,980 18,592 38,155 25,200 58,452 7302 Clelles Nes s Bequest Trust- - - 191,750 104,000 45,000 7303 Library His tory Project 7,617 3,592 3,434 2,000 - 1,810 7304 Betty McClendon Trust- - - 97,629 - 50,000 7305 Barbara J Cass in Trust- - - 150,000 150,000 60,000 Total Library 2,041,835$ 2,016,142$ 1,839,869$ 2,382,891$ 2,081,988$ 2,407,952$ Successor Agency to the Los Gatos RDA 911 SA - Administration 1,574,058$ 1,237,563$ 770,215$ 754,232$ 638,996$ 256,190$ 921 SA - Debt Service 5,873,985 8,307,082 13,587,435 8,199,535 4,284,282 3,910,142 931 SA - Low / Moderate Hous ing 558,544 5,362,334 6,852,457 406,091 716,918 - Total SA to the Los Gatos RDA 8,006,587$ 14,906,979$ 21,210,107$ 9,359,858$ 5,640,196$ 4,166,332$ Total Operating Expenditures 48,292,429$ 60,310,786$ 70,415,722$ 72,490,348$ 54,5 64,360$ 49,088,200$ Transfers Out 3,676,838 1,858,951 2,023,755 4,707,070 2,561,508 5,337,706 Carryforward CIP Projects Total Expenditures by Department:51,969,267$ 62,169,737$ 72,439,477$ 77,197,418$ 57,1 25,868$ 54,425,906$ PROPOSED C - 33 SUMMARY OF POSITIONS DEPARTMENTAL STAFF BY FUND Authorized 2008/09 2009/10 2010/11 2011/12 2012/13 Positions Funded Funded Funded Funded Funded General Fund Town Council 0.85 0.95 0.85 0.85 0.85 0.85 Town Attorney 0.85 0.90 0.90 0.90 0.85 0.85 Administrative Services 15.20 13.85 12.50 12.25 15.10 15.20 Community Development 17.50 17.80 17.00 15.05 15.45 17.50 Police Department 57.00 61.00 60.00 59.50 59.50 57.00 Parks & Public Works 26.10 31.50 29.50 26.80 26.30 26.10 Community Services - 5.15 5.15 3.20 - - Library 8.60 10.35 10.35 8.60 8.60 8.60 Total General Fund Staff 126.10 141.50 136.25 127.15 126.65 126.10 Special Revenue Funds Parks & Public Works 1.00 1.00 1.00 1.00 1.00 1.00 Community Services - 0.05 0.05 0.05 - - Total Special Revenue Fund Staff 1.00 1.05 1.05 1.05 1.00 1.00 CIP Library Project Funds PPW Manager- - - 1.00 1.00 - Total CIP Library Proj Funds Staff- - - 1.00 1.00 - Internal Service Funds Town Attorney 0.65 0.65 0.65 0.65 0.65 0.65 Administrative Services 3.65 3.80 3.65 3.65 3.70 3.65 Parks & Public Works 3.90 4.50 4.50 3.70 3.70 3.90 Total Internal Services Funds Staff 8.20 8.95 8.80 8.00 8.05 8.20 Successor Agency to the Los Gatos RDA Administrative Services- 0.80 0.80 0.80 0.80 - Community Development 0.20 1.00 0.80 0.75 0.75 0.20 Community Services - 0.05 0.05 - - - Total SA to the Los Gatos RDA Staff 0.20 1.85 1.65 1.55 1.55 0.20 Total Town FTEs 135.50 153.35 147.75 138.75 138.25 135.50 Administrative Services Department staffing numbers include the following programs: Town Manager's Office; Human Resources; Finance & Administrative Services; Clerk Administration; and Management Information Services PROPOSED C - 34 SUMMARY OF POSITIONS BUDGETED FTES BY DEPARTMENT Blue Bar Shading – Town Staff Purple Bar Shading – Hourly Employees FY 2012/13 Budgeted FTEs by Department (Includes Converted Hourly Employees) Administrative Services Department staffing numbers include the following six programs: Town Manager’s Office; Human Resources; Finance & Administrative Services; Clerk Administration; Management Information Services; and several programs prevailing provided in the Community Services Department. Hourly Employee positions result from seasonal, temporary, and part-time labor needs. - 10.00 20.00 30.00 40.00 50.00 60.00 Town Council Town Attorney Administrative Services Community Development Police Department Parks & Public Works Library Authorized/Hourly Emp Funded Staff Total Town Staff converted Budgeted Departments Positions to FTEs Positions Town Council 0.85 0.08 0.93 Town Attorney 1.50 - 1.50 Administrative Services 18.05 0.88 18.93 Community Development 17.50 0.40 17.90 Police Department 58.00 1.40 59.40 Parks & Public Works 31.00 4.23 35.23 Library 8.60 6.79 15.39 Total Positions 135.50 13.79 149.29 PROPOSED C - 35 SUMMARY OF POSITIONS FUNDED FTES BY DEPARTMENT Five Year Staffing Trend Note – FTEs represent Town staff positions funded in annual budgets. Numbers do not include temporary hours or the filled or unfilled status of the positions. - 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 Town Council Town Attorney Administrative Services Commun ity Development Police Department Parks & Public Works Commun ity Services Library 2008/09 2009/10 2010/11 2011/12 2012/13 Departments Funded Funded Funded Funded Funded Town Council 0.85 0.85 0.85 0.85 0.85 Town Attorney 1.50 1.50 1.50 1.50 1.50 Administrative Services 18.80 17.20 16.95 18.80 18.05 Community Development 18.60 17.60 15.60 16.00 17.50 Police Department 61.00 60.00 59.50 60.50 58.00 Parks & Public Works 37.00 35.00 32.50 32.00 31.00 Community Services 5.25 5.25 3.25 - - Library 10.35 10.35 8.60 8.60 8.60 Total Budgeted FTEs 153.35 147.75 138.75 138.25 135.50 PROPOSED C - 36 SUMMARY OF PERSONNEL CHANGES FY 2012/13 he Town’s total budgeted labor and benefit costs for FY 2012/13 decreased to $22.2 million ($22.3 million in FY 2011/12). Of this amount, labor and benefit costs in the General Fund account for nearly $20.9 million ($20.7 million in FY 2011/12) or 60% of the Town’s General Fund expenditures. Contractually obligated salary adjustments and rising health and pension rates have significantly increased labor costs; however, reduction strategies including vacancy eliminations have helped to mitigate growing personnel expenses. The following discussion describes some of the staffing expenditures, savings, and budget impacts. Employee Compensation and Benefits Personnel costs represent salaries of full and part-time personnel (including vacation, holiday, and sick leave compensation) and benefits, including health coverage, life and disability insurance, and retirement contributions. For represented positions, annual wage increases and benefit adjustments are negotiated under each bargaining unit’s Memorandum of Understanding (MOUs). Wage increases and benefit adjustments for unrepresented positions are determined under the Council’s authority and are not subject to bargaining. Memorandums of Understanding/Wages The FY 2012/13 budget assumes that the Town will achieve savings of approximately $652,000 through personnel cost containment strategies, which include 40 hours of unpaid furloughs for non-sworn employees (pro-rated for part-time employees). Sworn employees will not participate in FY 2012/13 furloughs as the Police Officers’ Association (POA) re-negotiated its union agreement to achieve savings for the Town in the prior year. Discussions with the bargaining units are underway regarding the specific terms affecting represented employees. The status of current or anticipated future labor actions are as follows:  A two-tier retirement plan was implemented, changing the retirement age and formula from 2.5% at 55 to 2% at 60 for non-sworn employees hired after August 1, 2012.  Negotiations are underway with the Town Employees Association (TEA) to discuss a successor Memorandum of Understanding (MOU). The TEA labor agreement expires on June 30, 2012.  By resolution, the salaries for confidential employees mirror the TEA contract.  In accordance with its existing MOU, Park and Public Works maintenance employees, represented by the American Federation of State, County and Municipal Employees (AFSCME) will not receive an increase for FY 2012/13.  The existing Police Officers’ Association (POA) agreement was restructured to delay scheduled salary adjustments and extend the contract for a longer term. Under the restructured agreement, the POA will receive a 2% increase effective January 1, 2013. This is the last wage adjustment under the existing contract.  Management salary and benefit terms are reflected in the Town’s Management Compensation Plan, which is approved by Council. Management employees have not received a salary adjustment since 2008. Benefits The Town contracts for medical coverage through CalPERS and rates are adjusted each January for the calendar year. Kaiser, which serves as the Town’s benchmark plan, has increased its annual rates by 7% over the last two years. It is anticipated that this trend will continue, adversely impacting the Town budget. Past negotiations with non-sworn labor groups have resulted in cost sharing of dependent coverage for medical premiums; however, the cost burden remains significant for the Town. Dental, vision and life insurance rates are expected to remain relatively stable. Conversely, short and long-term disability insurance costs are increasing significantly due to changes in the market and an increase in claims. Efforts are underway to identify measures to control and/or reduce costs. It is important to note that changes in health coverage are generally subject to negotiations with affected employee groups. T PROPOSED C - 37 SUMMARY OF PERSONNEL CHANGES FY 2012/13 Pension Plan The Town’s two pension plans are 2.5% at 55 (effective July 1, 2008, prior formula was 2% at 55) for "Miscellaneous Employees” (non-safety and management) personnel and 3% at 50 for “Safety Employees” (sworn personnel). A two-tier pension plan was negotiated for miscellaneous employees and will change the formula to 2% at 60 for new hires after August 1, 2012. Pension reform continues to be an important topic in regard to cost-containment and staff is monitoring a number of state-wide initiatives that may impact future pension costs. More recently, however, due to the low interest rate climate, PERS has been compelled to significantly increase contribution rates to cover rising retiree costs and PERS investment losses sustained in the down economy. In FY 2012/13, the Town’s miscellaneous employee rate will increase to 19.62%; the safety rate will increase to 39.31%. A portion of the PERS rate adjustment will be offset by drawing down on the Town PERS liability account which has a current balance of $2.8 million. In prior years, specifically from FY 1998/99 through FY 2003/04, retirement costs for miscellaneous and safety employees were negligible due to PERS “super funding” calculations from prior investment boom years. Following conservative practices, the Town continued to charge itself a PERS retirement expense (based on the average PERS employer rates of years past) during these low-rate years and set aside the savings in a liability account. The strategic use of this financial resource is anticipated to smooth the effects of any future rate increases, should they occur. Approximately $400,000 will be used as part of the FY 2012/13 budget. This reflects a $100,000 increase compared to prior years. Issued by CalPERS in October 2011, the following schedule reflects the Town’s PERS pension rate for FY 2012/13 and expected rate for FY 2013/14. All other future rates are based on the Town’s five-year forecast model. PERS Pension Plan FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Safety 3% @ 50 33.60%33.84%33.58%38.65%39.31%41.06%42.81%44.56%46.31%48.06% Misc 2.5% @ 55 15.18%14.60%14.43%18.49%19.62%20.62%21.62%22.62%23.62%24.62% *Based on estimates received from PERS Actuarials in Oct 2011 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Safety 3% @ 50 Misc 2.5% @ 55 PROPOSED C - 38 SUMMARY OF PERSONNEL CHANGES FY 2012/13 Budget Management Strategies A number of strategies have been implemented to mitigate rising personnel costs. These include adjusting user fees to recover staff time costs for Town services, focusing staff time on core services to maintain planned reductions in budgeted overtime, reducing hourly staffing use, and eliminating vacant, benefited positions. Overtime Overtime expenditures continue to be assessed and adjusted when needed to reduce expenses. While unpredictable or non-controllable events will impact the Town’s limited public safety and public works maintenance resources, continued adjustments to schedules and workload have been successful in reducing budgeted overtime. Although some non-critical Town services have experienced moderate service level reductions, scheduling restrictions have not seriously impacted routine operations. In FY 2010/11, the patrol staffing schedule was modified from a combination 10-hour and 12-hour schedule with five patrol teams to a straight 12-hour schedule with four patrol teams. This new structure provided increased patrol staffing levels across the shifts; however, the department is evaluating the impact of increased time off levels. The department will be exploring alternative shift structures to address these issues and report back in FY 2012/13. Staffing Changes The FY 2012/13 Operating Budget has 149.29 budgeted positions, including temporary staff. This reflects a decrease of 1.58 FTE compared to the prior year. The recommended FY 2012/13 staffing levels reflect the following changes from the prior year’s adjusted budget:  Administrative Services –The Administrative Services budget reflects the addition of .10 FTE. This change is due to the reallocation of the Economic Vitality Manager (.80 FTE) to the Town Manager’s Office as a result of the dissolution of the Los Gatos Redevelopment Agency. The remaining .20 FTE will continue to be funded through the Community Development Department. The budget also reflects the elimination of a vacant Staff Technician position (.70 FTE).  Community Development – The Community Development Department budget reflects the addition of 1.50 FTE, which includes the reclassification of a temporary Associate Planner to a Senior Planner, and a Building Inspector that was previously shared with the Parks and Public Works Department. Although positions are fee supported, the department has reduced temporary hours to reduce expenses. Anticipated increases in building inspection and code compliance activity necessitate full staffing of the department’s four Building Inspector positions.  Police –The Police Department budget reflects a reduction of 2.50 FTE. This reduction includes the previously approved elimination of a Sergeant vacancy that occurred in early FY 2011/12. Subsequent to the Sergeant vacancy, a police captain retired and through a series of promotion within the department, a new officer vacancy was created that was previously filled as a Corporal. This position has been eliminated in the FY 2012/13 budget. The budget also reflects a .50 FTE Administrative Sergeant reduction due to a planned retirement. It is anticipated that this position will be eliminated, providing an opportunity to consolidate selected police units.     PROPOSED C - 39 SUMMARY OF PERSONNEL CHANGES FY 2012/13   Parks & Public Works (PPW) –The Parks and Public Works budget reflects a reduction of 1 FTE. This reduction includes the elimination of a PPW Manager that will be funded through the Capital Improvement Program (CIP) for a period of six months to complete the Creekside Sports Park. Engineering and inspection personnel expenses will also be charged to the Capital Improvement Program (CIP) as appropriate. Internal Service Fund Allocations In addition to direct personnel expenditures, departments are charged for internal support services and employee insurance costs through payroll allocation charges. Appropriate charge-back rates are established based on either employee group historical costs or through a flat surcharge per employee. Annual reviews of these funds may result in adjustments to the rates. Liability Insurance Self-Insurance Fund rates (liability claim insurance premiums) for FY 2012/13 remain at the prior year rates as the Self-Insurance Fund Balance continues to be more than sufficient, and revenues are keeping pace with expenditures. Workers Compensation The Workers Compensation fund balance also continues to be healthy. The program’s allocation charges are adjusted as needed to keep pace with insurance premiums and other related expenditures. Management Information The Management Information Systems (MIS) program is funded through two different charge-backs to the departments. One charge is based on a percentage of salary to fund the salaries and operating expenses of the MIS program. The second allocation charge is based on the department’s computer and printer equipment, established to fund the replacement cost of current technology equipment. PROPOSED C - 40 TOWN STAFF POSITIONS BY HOME DEPARTMENT Authorized 2008/09 2009/10 2010/11 2011/12 2012/13 Positi ons Funded Funded Funded Funded Funded Comments Town Attorney 1.00 1.00 1.00 1.00 1.00 1.00 Deputy Town Attorney 0.50 - - - 0.50 0.50 Position shared with .50 Clerk Administor position Legal Admin Assistant- - 0.50 0.50 - - Legal Assistant- 0.50 - - - - TOTAL FTEs 1.50 1.50 1.50 1.50 1.50 1.50 Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 Deputy Town Manager 1.00 - - - 1.00 1.00 Administrative Programs Mgr.- 1.00 - - - - Executive Asst. to Town Mgr.1.00 1.00 1.00 1.00 1.00 1.00 Economic Vitality Manager 1.00 1.00 1.00 1.00 1.00 1.00 Office Assistant 1.65 - - - 1.65 CY add 1.65 FTE Office Clerk- 0.90 0.90 0.90 1.65 - CY delete 1.65 FTE Staff Technician- - - - 0.75 - CY delete .75 FTE TOTAL FTEs 6.65 5.90 4.90 4.90 7.40 6.65 Community Services Director- 1.00 1.00 1.00 - - Administrative Analyst- 0.50 0.45 0.50 - - Administrative Secretary- 1.00 1.05 1.00 - - Senior Coordinator- 1.00 1.00 - - - Volunteer Coordinator- 0.75 0.75 0.75 - - Secretary I - 1.00 1.00 - - - TOTAL DEPARTMENT FTEs- 5.25 5.25 3.25 - - Human Resources Director 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Human Resources Specialist- 0.25 0.25 - - - TOTAL FTEs 2.00 2.25 2.25 2.00 2.00 2.00 Finance & Admin. Director 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Budget/Finance Director 1.00 - - - 1.00 1.00 Finance Manager- 1.00 1.00 1.00 - - Accountant/Finance Analyst 1.00 1.40 1.40 1.40 1.00 1.00 Payroll Specialist 1.00 1.00 1.00 1.00 1.00 1.00 Budget Analyst 0.50 - - - 0.50 0.50 Account Technician 2.00 2.60 2.00 2.00 2.00 2.00 TOTAL FTEs 6.50 7.00 6.40 6.40 6.50 6.50 Clerk Administrator 0.50 1.00 1.00 1.00 0.50 0.50 Position shared with .50 FTE Deputy Town Attorney position Deputy Clerk 0.50 0.75 0.75 0.75 0.50 0.50 TOTAL FTEs 1.00 1.75 1.75 1.75 1.00 1.00 MIS Manager 1.00 1.00 1.00 1.00 1.00 1.00 Network Administrator 1.00 1.00 1.00 1.00 1.00 1.00 IT Technician 0.75 0.75 0.75 0.75 0.75 0.75 TOTAL FTEs 2.75 2.75 2.75 2.75 2.75 2.75 TOWN MANAGER'S OFFICE HUMAN RESOURCES FINANCE & ADMINISTRATIVE SERVICES TOWN ATTORNEY'S OFFICE COMMUNITY SERVICES MANAGEMENT INFORMATION SERVICES CLERK ADMINISTRATION PROPOSED C - 41 TOWN STAFF POSITIONS BY HOME DEPARTMENT Authorized 2008/09 2009/10 2010/11 2011/12 2012/13 Positions Funded Funded Funded Funded Funded Comments Community Development Dir.1.00 1.00 1.00 1.00 1.00 1.00 Asst. Community Dev. Dir.- 1.00 1.00 - - - Deputy Town Manager- - 1.00 - - - Planning Manager 1.00 - - 1.00 1.00 1.00 Building Official 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Analyst 1.00 0.60 0.60 0.60 1.00 1.00 Executive Assistant 1.00 - - - - 1.00 CY add 1.0 FTE Administrative Secretary- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE Administrative Assistant 1.00 - - - - 1.00 CY add 1.0 FTE Secretary III- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE Senior Planner 3.00 1.00 1.00 2.00 2.00 3.00 CY add 1.0 FTE Associate Planner 2.00 3.00 2.00 1.00 2.00 2.00 Planner- 1.00 1.00 1.00 - - Assistant Planner- 1.00 1.00 - - - Planning Technician 0.50 - - 0.50 0.50 0.50 Building Inspector 4.00 4.00 4.00 3.50 3.50 4.00 CY add .50 FTE Code Compliance Officer- 1.00 - - - - Counter Technician 2.00 2.00 2.00 2.00 2.00 2.00 TOTAL FTEs 17.50 18.60 17.60 15.60 16.00 17.50 Chief of Police 1.00 1.00 1.00 1.00 1.00 1.00 Police Captain 2.00 2.00 2.00 2.00 2.00 2.00 Police Sergeant 6.50 9.00 8.00 8.00 8.00 6.50 CY delete 1.50 FTE Police Corporal 5.00 5.00 5.00 6.00 6.00 5.00 CY delete 1.0 FTE Police Officer 24.00 25.00 26.00 24.00 24.00 24.00 Community Outreach 1.00 - - - 1.00 1.00 Community Services Officer 4.00 4.00 4.00 4.00 4.00 4.00 Police Admin Services Mgr.1.00 1.00 1.00 1.00 1.00 1.00 Executive Assistant to Chief 1.00 1.00 1.00 1.00 1.00 1.00 Communications Dispatcher 7.50 7.00 7.00 7.50 7.50 7.50 Parking Control Officer 2.00 2.00 2.00 2.00 2.00 2.00 Police Records Specialist 3.00 4.00 3.00 3.00 3.00 3.00 TOTAL FTEs 58.00 61.00 60.00 59.50 60.50 58.00 COMMUNITY DEVELOPMENT POLICE PROPOSED C - 42 TOWN STAFF POSITIONS BY HOME DEPARTMENT Authorized 2008/09 2009/10 2010/11 2011/12 2012/13 Positions Funded Funded Funded Funded Funded Comments Parks & Public Works Director 1.00 1.00 1.00 1.00 1.00 1.00 Asst PPW Dir/Town Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Superintendent 2.00 2.00 1.00 2.00 2.00 2.00 PPW Manager- - 1.00 1.00 1.00 - CY delete 1.0 FTE PPW Supervisor- 1.00 1.00 - - - Administrative Analyst 1.00 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 - - - - 1.00 CY add 1.0 FTE Administrative Specialist- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE Public Works Specialist- 2.00 - - - - Administrative Assistant 2.00 - - - - 2.00 CY add 2.0 FTE Administrative Secretary- 1.00 2.00 1.00 1.00 - CY delete 1.0 FTE Secretary III- - - 1.00 1.00 - CY delete 1.0 FTE Environmental Service Coordinator 0.50 - - - 0.50 0.50 Associate Civil Engineer 3.00 3.00 3.00 3.00 3.00 3.00 Assistant Civil Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Engineering Technician 1.00 1.00 1.00 1.00 1.00 1.00 Sr Engineering Inspector 1.00 1.00 1.00 1.00 1.00 1.00 Engineering Inspector- 1.00 2.00 - - - Building Inspector 0.50 - - 0.50 0.50 0.50 Parks Service Officer 1.00 2.00 1.00 1.00 1.00 1.00 Town Arborist 1.00 1.00 1.00 1.00 1.00 1.00 Tree Trimmer/High Climber 1.00 1.00 1.00 1.00 - 1.00 CY add 1.0 FTE Lead Parks & Maint. Worker 3.00 2.00 2.00 3.00 3.00 3.00 Sr. Parks & Maintenance Worker- 1.00 - - - - Parks & Maintenance Worker 8.00 9.00 9.00 8.00 9.00 8.00 CY delete 1.0 FTE Sweeper Operator 1.00 1.00 1.00 1.00 1.00 1.00 Equipment Mechanic 1.00 2.00 1.00 1.00 1.00 1.00 Apprentice Mechanic- - 1.00 - - - Facility Technician- 1.00 1.00 1.00 - - TOTAL DEPARTMENT FTEs 31.00 37.00 35.00 32.50 32.00 31.00 PARKS and PUBLIC WORKS DEPARTMENT PROPOSED C - 43 TOWN STAFF POSITIONS BY HOME DEPARTMENT Authorized 2008/09 2009/10 2010/11 2011/12 2012/13 Positions Funded Funded Funded Funded Funded Library Director 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Library Director- 1.00 1.00 - - - Library Manager*2.00 - - - 2.00 2.00 Principal Librarian- 2.00 2.00 2.00 - - Librarian 2.25 2.25 2.25 2.25 2.25 2.25 Circulation Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 Library Assistant 1.75 2.50 2.50 1.75 1.75 1.75 Administrative Assistant 0.60 - - - - 0.60 CY add .60 FTE Secretary III- 0.60 0.60 0.60 0.60 - CY delete .60 FTE TOTAL DEPARTMENT FTEs 8.60 10.35 10.35 8.60 8.60 8.60 TOTAL TOWN FTEs 135.50 153.35 147.75 138.75 138.25 135.50 2008/09 2009/10 2010/11 2011/12 2012/13 Funded Funded Funded Funded Funded Town Council 5.00 5.00 5.00 5.00 5.00 Town Clerk 1.00 - - - - Town Treasurer 1.00 - - - - TOTAL ELECTED OFFICIALS 7.00 5.00 5.00 5.00 5.00 2008/09 2009/10 2010/11 2011/12 2012/13 Temporary Hours by Department Funded Funded Funded Funded Funded Town Council 175 175 175 175 175 Administrative Services 1,425 1,621 2,346 1,848 1,836 Community Development - - - 1,620 832 Police Department 3,640 2,920 2,920 2,920 2,920 Parks & Public Works 5,184 6,780 7,412 8,791 8,791 Community Services 470 470 255 - - Library Department 10,093 10,093 11,150 10,896 14,120 Total Temporary Hours by Department 20,987 22,059 24,258 26,250 28,674 CONVERTED HOURLY EMPLOYEES 10.09 10.61 11.66 12.62 13.79 (1.00 FTE = 2080 hours) ELECTED OFFICIALS HOURLY EMPLOYEES LIBRARY PROPOSED C - 44