3�ov+ro 0 MEETING DATE: 05 -28 -13
ITEM NO:
$y iWIUi
`fy 1 s COUNCIL AGENDA REPORT
°s ea�o
DATE: MAY 22, 2013
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER f
SUBJECT: OPERATING AND CAPITAL BUDGETS
A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND
CAPITAL BUDGET FOR FISCAL YEAR 2013/14
B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL
IMPROVEMENT PROGRAM FOR FISCAL YEARS 2013 -2018
C. PROVIDE DIRECTION REGARDING INCLUSION OF THE FOLLOWING
IN THE FISCAL YEAR 2013/14 OPERATING AND CAPITAL BUDGET:
1. ALLOCATION OF FUNDING FOR ARTS ORGANIZATIONS
2. FUNDING FOR COMMUNITY RESOURCE OFFICER INTERN PILOT
PROGRAM FOR LIBRARY
3. FUNDING FOR CUP TRACKING AND STORY POLE
COMMUNICATIONS
4. OTHER CHANGES OR DIRECTION
RECOMMENDATION:
1. Consider the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year
2013/14
2. Consider the Town of Los Gatos Proposed Capital Improvement Program for Fiscal Year
2013 -2018
3. Provide Direction Regarding Inclusion of the Following in the Fiscal Year 2013/14
Operating And Capital Budget:
a. Allocation of Funding for Arts Organizations
b. Funding for Community Resource Officer Intern Pilot Program for Library
c. Funding for CUP Tracking and Story Pole Communication
d. Other Changes or Direction
BACKGROUND:
The Proposed Operating and Capital Budget for FY 2013/14 (Attachment 1, previously
submitted) represents the Town Manager's recommended comprehensive financial plan to
provide services to the Town of Los Gatos given limited resources. The Proposed FY 2013 -2018
PREPARED BY: PAMELA JACOBS
Assistant Town Manager
Reviewed by: Assistant Town Manager (- \2 Town Attorney inance
NAMGR\AdminWorkFiles\2013 Council Reports \5.28.13 Operating and Capital Budget .docx
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
Capital Improvement Program (Attachment 2, previously submitted) is a comprehensive five -
year capital improvement plan identifying projects to construct and maintain the Town's
infrastructure over an extended period.
Any changes to the proposed operating and /or capital budgets directed by Council at the May 28
budget hearing will be incorporated into the implementing documents to be presented for
Council approval in June.
DISCUSSION:
Overview of Proposed Operating and Capital Budgets
The transmittal letter in the FY 2013/14 Proposed Operating Budget provides an executive
summary of the budget, including budget development principles and strategies, an overview of
revenue and expenditure assumptions, and future challenges affecting the Town's fiscal
situation.
This staff report provides:
• summary of budget balancing actions recommended in the proposed budget;
• discussion of an updated Five -Year Financial Forecast;
• discussion of possible additions to the FY 2013/14 budget;
• discussions of issues with budget implications for the future;
• proposed 2013 — 2015 Strategic Goals;
• a summary of the proposed Capital Improvement Program;
• FY 2013/14 List of Town Needs for donation opportunities; and
• information regarding the budget presentation to be made on May 28, 2013
With the local economy showing continuing signs of improvement, the FY 2013/14 budget
reflects approximately $32.9 million in total revenue, a 2% increase compared to the prior year.
This is primarily due to forecasted increases in Vehicle License Fee (VLF) backfill property tax,
franchise fees, business license tax, licenses and permits, and Town Services fees. Sales and use
tax is projected to decrease slightly due to a continuing decline in Netflix sales tax revenue given
the company's change to its business model. These revenue impacts, combined with continuing
increases in employee benefit costs and PERS rates, require adjustments in the Town budget
totaling $800,000 after assuming continued prior year cost savings (e.g., furloughs, management
reductions, etc.). The previously projected $800,000 shortfall represents approximately 2.4% of
the General Fund Operating budget.
As in prior years, the Town's conservative financial practices and prompt action in response to
the economic recession positioned the Town relatively well to address the budget shortfall
projected for FY 2013/14. Once again, the administration is not proposing layoffs or significant
public service reductions next year. The outlook for the following years remains guarded given
anticipated increases in health and pension costs.
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
Due to continued reductions in staffing levels through attrition, the Town will remain limited in
its capacity to take on new special projects or initiatives. Longer response times for non - priority
calls for service and customer referrals will continue. Health and safety responses will continue
to take priority over referrals related solely to aesthetics or convenience. Workforce furloughs
and closures will reduce customers' access to services, as well as employees' salaries; however,
the recommended holiday schedule for furloughs and closures will minimize the impact to the
public. It must be noted that rising service demands combined with decreased staffing and
stagnant compensation are creating workforce concerns and requests. Staff will be available at
the budget hearing to address any specific questions regarding impacts of continuing
departmental reductions.
Although other cities in the region are beginning to forecast budget surpluses for next fiscal year
as compared to the forecasted shortfall in Los Gatos, it should be noted that Los Gatos
experienced a lesser degree of deficits and reductions than many of these cities during the Great
Recession. The economic contributions of Netflix, the Town's largest tax payer, were a key
factor in the relatively lower impact of the recession on Los Gatos. Similarly, however, the
change in this company's business model is a key factor in the relatively lower increase in tax
revenues expected in Los Gatos as compared to other communities for next year. The impact of
one company's performance on the Town's fiscal situation points out the need to diversify the
Town's economic base to provide funding stability for continuing to provide quality municipal
services.
A common issue for most of the communities in the region and state is the expected increases to
employer pension costs due to the recent Ca1PERS proposal to implement changes to its
smoothing and amortization policies. If approved, these changes will require Los Gatos and
other PERS cities to pay significantly higher rates. Given these expected increases, the Town
will continue to work with the bargaining groups to address rising retirement and health care
costs.
Notwithstanding the challenges noted above, Los Gatos remains a highly desirable community,
with a strong downtown and neighborhood centers, high quality schools, a lovely hillside setting,
proximity to Silicon Valley, and fundamentally solid real estate. The Town's past prudent fiscal
practices have helped to preserve the core services that support these enviable qualities, and the
proposed FY 2013/14 budget does the same.
Recommended Budget Balancing Actions
The proposed operating budget incorporates revenue increases and expense reductions totaling
$800,000, sufficient to balance the FY 2013/14 budget. The major expense adjustments are
summarized in the transmittal letter, and are discussed in more detail in the departmental budget
sections, as are proposed revenue increases. Recommended budget balancing actions include:
0 staffing, salary and benefit reductions for a cost savings of approximately $500,000;
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
fund transfers, cost recovery fee increases, and other revenues totaling approximately
$600,000.
Increased Operating Costs due primarily to the increase in health care benefits and PERS
rates ($300,000)
In addition, the one time use of reserves approved a year ago to balance the current year's budget
has not been needed given reduced expenditures and increased revenues as reported at the Mid -
Year Budget Review. Consequently, those fiends remain available to meet other Town priorities
as discussed later in this report.
Expense Reductions
Expense reductions include several adjustments to better align staff resources with work
demands while achieving necessary reductions. Staffing adjustments are proposed in
Administrative Services, Police, Library, and Parks and Public Works. In general, the focus has
been on reducing management positions and /or position levels to increase or maintain front line
staffing.
Continued 40 hours of unpaid furloughs for non -sworn and management staff is also included in
the proposed budget, providing a savings of $200,000, equivalent to a 1.8% pay reduction for
affected non -sworn employees and managers. The furloughs would occur during the annual
holiday closure in late December to minimize the impact on Town customers. The furloughs
will be adjusted for certain Town operations, such as dispatch, parks and the library. Sworn
employees will not participate in FY 2013 /14 furloughs as the Police Officers' Association
(POA) has extended its prior agreement which expressly excluded them from furloughs.
The proposed budget also includes a $200,000 cost - saving placeholder for an expected alignment
of the Town's medical premium contributions to match Ca1PERS' Medicare- supplemented plan
rates for retirees who reach Medicare eligibility. This alignment is being discussed with the
Town's bargaining units, and if restricted or reduced, will have to be offset by other Mid -Year
Budget reductions or adjustments.
Revenue Enhancements
Proposed revenue increases are primarily due to the projected growth in private development
activity, resulting in higher levels of fees and charges for services requiring cost - recovery. An
addition of funds for the Police Department's participation in a regional crime task force and
more effective parking enforcement also contribute to proposed increases in revenue.
It should be noted that Los Gatos remains a relatively "low tax" city in Silicon Valley without
either a utility users tax or a locally increased sales tax rate.
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
Five -Year Forecast
The Five -Year Financial Plan is an independent financial tool that is based on current and
projected costs and revenues. It is designed to be fluid in nature, allowing staff to build various
funding scenarios and test "what if' assumptions. Staff has updated the forecast last prepared for
the Council Retreat earlier this year to now incorporate the FY 2013/14 proposed budget
changes.
The information presented in the forecast on page 6 includes conservative estimates of revenues,
with the current economic recovery in mind, assuming varying growth rates, both for tax
revenues and for fees for services, including overhead charges. Expenditures were projected
using a database of prior year actual costs adjusted for future known increases in employee
benefit costs, and actuarial updates for post - retirement benefits. The expenditure forecast
includes permanent reductions made in the FY 2013/14 proposed budget and carries those
forward in future years. The five -year forecast assumes no employee COLA increases or
ongoing furlough savings.
The Forecast assumes a previously -known increase in PERS employer contribution rates in FY
2014/15, contributing to a $700,000 projected shortfall. Beginning in FY 2015/16, the forecast
assumes significant increases in PERS rates and modest increases thereafter based on a number
of factors, including Ca1PERS recent decisions to modify the investment smoothing and
amortization rates and anticipated decisions to modify investment discount rates and mortality
assumptions. The Town's sworn rate is projected to rise from 40.85% of covered payroll in FY
2013/14 to 48.67% in FY 2015/16, and the rate for other Town employees is projected to rise
from 21.9% to 27.71 %. These increases result in a newly projected deficit in FY 2015/16 of
$400,000, even assuming a continued economic recovery. Shortfalls are now projected in the
out -years as well. The Town will consider over the next year how to strategically use prior
PERS reserves accumulated during low PERS rate years to smooth the effects of these
anticipated steep rate increases.
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
Town of Los Gatos General Fund
Updated Five -Year Financial Plan
FYI FY2 FY3 FY4 FY5
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4400 Licenses & Permits
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4600 Charge for Services
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4700 Fines& Forfeitures
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4800 Interest
4850 Other Sources
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4900 Fund Transfers In
TOTALREVENUES
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5140 Overtime
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5200 Benefits
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7200 Grants & Awards
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7700 Fixed Assets
8060 Internal Service Charges
8900 Debt Service
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$ 31.4
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$ 33.1
$ 34.0
$ 34.7
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EXPENDITURES
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35.3
1 34.5
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35.3
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36.4
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9900 Transfer to Stabilization Reserve
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$ 36.3
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$ 37.6
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$ 0.2
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Town Salaries
Sworn police officers last received a 2% pay increase on Jan. 1, 2013, TEA and Confidential
employees last received a pay increase on November 1, 2009, AFSCME employees last received
an increase on July 1, 2009, and management staff last received a pay increase on November 1,
2007. No salary increases are assumed in the proposed budget or five -year forecast, which may
PAGE 7
MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
need to be re- evaluated based on budget impacts, regional salary surveys, and employee
expectations.
State Budget Impacts
The May Revised Governor's budget was released May 14. Staff reviewed the Governor's
budget and did not identify any immediate potential impacts to the Town's budget that were not
expected. Staff will continue to monitor State actions for future impacts to the budget.
Issues for Consideration
Following are a number of issues for consideration by Council for inclusion in the FY 2013/14
budget, or having budget implications for the future.
FY 2013114 Consideration
Community Resource Officer Intern Pilot Program for the Library
By every measure, the new Los Gatos library has exceeded expectations regarding increased
usage. While the vast majority of patrons are responsible and well - mannered, the considerable
rise in patronage has increased the number of incidents of disruptions, property damage, safety
concerns and conflicts. The teen area in particular has experienced an extraordinary increase in
use. The disruptions have often required the assistance of the Police Department, either directly
or as advisors to library staff.
The Library and Police Department propose to undertake a collaborative pilot program modeled
on a successful Mountain View library program, whereby a Community Resource Officer (CSO)
Intern would be assigned to work in the library during peak hours (19 hours per week). The CSO
Intern would be trained by the Police Department, and would address problematic behavior,
provide a security presence, and build relationships with patrons, the teens in particular. The role
would be similar to that of the School Resource Officer.
Current CSO Intern staffing would not accommodate this additional assignment; thus, it is
proposed to utilize approximately $30,000 in funding from the funds previously allocated, but no
longer needed, to balance this year's budget, to cover the costs of the pilot program for one
year. If the program proves to be successful, alternatives will be explored for continued
funding.
Conditional Use Permit (CUP) Tracking
As part of the enhanced focus on code compliance undertaken in the current fiscal year, staff has
begun to catalog all CUPs electronically. This project is approximately 75% complete; however,
the remainder of the effort will be resource intensive as multiple paper files must be searched
manually to capture the information. Once that is complete, staff will need to develop a system
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
to allow for easier public access on the Town's website. There are currently no resources
identified to address this portion of the work. It is estimated that approximately $30,000 in
additional resources would be required to complete this project next fiscal year, and staff
requests to utilize funding from the previously - allocated reserves noted above to cover the costs
associated with this project.
Online Development Activity ystem
In April, 2013, the Council discussed a draft story pole policy. As part of that discussion,
Council concurred with staff s recommendation to include funding to implement an online
development activity system in the proposed budget. Additional resources are needed to fund a
temporary part -time planner, overtime, and /or consultant assistance to establish the online
system. It is recommended that up to $25,000 be allocated from the previously - allocated
reserves noted above to cover the costs associated with this project.
Human Services Grants
With last year's change in CDBG funding policies, staff no longer needs to bring forward
recommendations for community grants prior to Council consideration of the proposed budget.
Thus, the funding recommendations from the Community and Senior Services Commission
(CSSC) are included for the first time as part of the proposed budget hearing. The
recommendations are included on page D -34 of the proposed budget, with a revision as
discussed in the following.
The CSSC is recommending the allocation of approximately $90,000 in community grant funds,
and also recommends that the grants be for one year rather than two years as initiated two years
ago. A one -year funding cycle will enable the CSSC to conduct needs assessments during the
fiscal year to identify funding priorities for the future.
If the CSSC reconunendations are approved by Council, many of the agencies will receive the
same grant amount as last year. However, there are some changes to the recommended grant
awards because several previously - funded agencies either no longer provide services to Town
residents or declined to apply for funding. Agencies that are no longer providing services to
Town residents include: A Place for Teens, SJSJ /The Health Place and Teen Force. Santa Clara
Health Foundation declined to apply for funding in FY 2013/14.
Due to the reallocation of funds from the above agencies, the CSSC is recommending increasing
funding for four agencies (Next Door Solutions for Domestic Violence, Parents Helping Parents,
Support Network, and Counseling and Support Services for Youth), continuing funding for LGS
Recreation Senior Case Management, and including two additional agencies in the FY 2013/14
proposed funding recommendations. The additional agencies include: Live Oak Adult Day
Services, previously eligible for CDBG funds, in the amount of $13,094 for its senior services;
and West Valley Community Services, in the amount of $3,146 for food pantry assistance for
PAGE 9
MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
Town residents. The latter two recommendations were inadvertently left off the chart on page
D -34 of the proposed budget.
Art /Education Grants
The Arts Commission is recommending approximately $7,400 in community grant funds, and is
also recommending a one -year funding cycle. If the recommendations reflected on page D -34 of
the proposed budget are approved by Council, two of the agencies will receive the same funding
as last year (Los Gatos Community Concert and St. Luke's Sunset Concert Series). The Art
Docents of Los Gatos is recommended to be funded at the FY 2011/12 level of $4,000 and the
Festival Theatre Ensemble is recommended for an increase of funding in the amount of
$1,400. The Photographic Guild of Los Gatos declined to apply for funding for the FY 2013/14
year.
In previous years, the Town contributed $12,430 annually to the Los Gatos Museum Association
to help support art and history programs. Beginning in FY 2013/14, the Town will be providing
premium space for Museum operations in the former library at a nominal rate and thus will no
longer allocate the annual grant to the organization. The Museum will be eligible to compete for
grants -based arts funding in the future, however.
Staff recommends that this funding continue to be available for arts and cultural purposes. For
next year, staff supports an ACC request to allocate $8,000 to fund projects identified in the Arts
Plan. Approximately $5,000 would be allocated to the Cat Walk art installation, with the
remainder of the funds allocated to the additional projects including Phase 2 of the Forbes Mill
Footbridge Revitalization Project and the Banner Program.
Staff also recommends that the remaining $4,430 be available for the ACC to fund either
community arts projects or public arts projects as identified during the year subject to ACC
recommendation and Council approval.
Future Budget Implications
Code Compliance Program
During FY 2012/13, the Community Development Department re- initiated the Code Compliance
Program on a part -time basis. Using a combination if in- house, part-time resources and
contractual services, the program is now operating four days per week. Since re- establishing this
program in October 2012, staff has been able to fully address most of the pre- existing issues and
has moved on to addressing neighborhood issues more pro - actively and with increased
responsiveness. With few exceptions, most issues can be addressed and resolved within several
business days.
Moving forward into FY 2013/14, staff reconunends continuing the program using the same
service delivery model. It is staff's expectation that this model will allow for the majority of
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
neighborhood and zoning code issues to be resolved within a seven -day period. Once staff fully
addresses the backlog of community concerns, Code Compliance staff will transition into a more
pro- active role and address specific types of issues before they cause conununity
concerns. Based on the success of this model over the next fiscal year, staff may return to
Council as part of next year's budget process with recommendations to change the service
delivery model.
ABAG Membership
Public concerns have been raised about the Town's membership in ABAG due the state regional
housing needs allocation (RHNA) process. The proposed budget includes a Town contribution
of $6,000 to pay for next year's membership in ABAG. Should the Town wish to suspend its
membership in ABAG, then formal Council action would be required by the end of June to be
effective the following fiscal year, FY 2014/15. Suspension of ABAG membership would not
change or reduce ABAG's role in establishing RHNA allocations for Los Gatos, unless all other
Santa Clara County cities were also willing to establish a separate County agency to receive and
allocate State - mandated housing production and planning targets. Only one jurisdiction
throughout the 9 county ABAG region has taken action to proactively suspend its membership in
ABAG.
Non -Point Source Discharge Elimination System (NPDES)
Due to more stringent NPDES Municipal Storm Water permit requirements, the existing revenue
source collected by the West Valley Sanitation District through property tax is no longer
sufficient to meet growing administrative and programmatic costs. It is anticipated that in the
near future, the NPDES program will need to be supplemented with an additional revenue source
to be sustainable.
Further expansion of and funding options to meet NPDES requirements will be presented to
Council in early 2014, per the Mayor's request.
SVRIA
The Town of Los Gatos, as a member of the Silicon Valley Regional Interoperability Authority
(SYRIA), expects to transition over the next 5 -8 years from a Town -wide public safety radio
system to a regional system supporting all public safety entities within the County. As a first
element, the Police Department proposed budget includes a purchase of two new dispatch radios
to replace aging equipment using existing equipment replacement funds. Additional funding is
likely to be needed in the future, and SVRIA and the Police Department will present an overview
of future costs during next fiscal year.
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
Dispatch Consolidation
The Town Council previously approved staff's recommendation to study potential consolidation
of the Los Gatos and Campbell dispatch centers for operational effectiveness and
efficiencies. That study is now complete and both agencies have determined that the initial costs
and operational challenges outweigh any potential long term efficiencies and savings. However,
the Town is continuing to pursue potential broader dispatch partnerships that may have increased
benefits for the Town. Specifically, the joint acquisition of a common dispatch system with the
City of Sunnyvale has led directly to reduced up -front system costs and accelerated system
upgrades with fixed annual costs, as well as redundant capacity in Sunnyvale should the Civic
Center dispatch center ever be temporarily incapacitated or overwhelmed. In addition, further
consolidations may be possible as regional interoperability moves forward over the next decade.
Police Equipment and Personnel
In the first quarter of the new fiscal year, staff will bring forward for Council consideration
funding proposals to address Police staffing and equipment needs. Staffing needs are associated
with recurring absences due to retirements and prolonged medical leaves, resulting in inadequate
shift coverage. The previously budgeted "hire ahead" program for new officers may be
expanded to provide additional staffing year -round if reallocated funding can be identified. In
addition, there are some one -time police equipment needs that will be considered based on
available funding carried forward from the current fiscal year.
Redevelopment Dissolution Status
As of February 1, 2012 the Los Gatos Redevelopment Agency was dissolved pursuant to
Assembly Bill (AB) 1X26. On January 9, 2012 the Town Council elected to become the
Successor Agency for the former Redevelopment Agency in accordance with AB 1X26.
Since that time, staff has worked diligently to complete all requirements called for in AB 1X26,
subject to the approval of the Agency's Oversight Board. Town staff has worked with and
successfully concluded independent reviews and audits conducted by Santa Clara County, the
State Department of Finance, and the State Controller's Office
As a result of staff's efforts, repayment of the Town's original loan of $1.5 million to the
Redevelopment Agency and reimbursement of approximately $900,000 in library construction
costs were protected. In addition, staff has secured recognition from the Department of Finance
that a reserve to cover future debt service obligations associated with the 2010 Certificates of
Participation to build the library is a valid enforceable obligation, protecting future Town
Council's from unexpected General Fund expenditures without Redevelopment tax increment
reimbursement.
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
The Town has returned over $12 million in former Redevelopment Agency cash assets, resulting
in one -time payments this past year to our local partner agencies as follows:
Los Gatos Union School District $2,941,749
Los Gatos Saratoga Union High School District $2,834,828
West Valley Cormnunity College District $ 922,525
Santa Clara County Central Fire District $1,680,468
The extensive staff work associated with the dissolution of redevelopment over the past two
years is expected to reduce during the next fiscal year.
2013 — 2015 Strategic Goals
In February 2013, the Town Council reviewed the 2012 — 2014 Strategic Goals along with a
work plan of current issues that were either on the 2012 -2013 Strategic Goal matrix and were
underway or pending, or special issues that had been identified as priorities although they were
not on the Strategic Goal matrix.
At the February meeting, Council gave direction to remove completed goals and goals that were
general in nature, add specific goals associated with the general goals where appropriate, and
merge the items on the work plan with the Strategic Goal matrix. Attachment 3 is a proposed
2013 — 2015 Strategic Goal matrix incorporating the changes directed by Council. For reference,
the 2012 -201 Strategic Goal matrix is included as Attachment 4.
Staff recommends that Council adopt the proposed 2013 -2015 Strategic Goal matrix as part of its
adoption of the FY 2013 /14 Operating and Capital Budget. As the Council has previously
identified the projects on the matrix as priorities, the projects are included as key projects in the
departmental sections of the budget. The strategic goals, along with ongoing core services which
account for roughly 80% of Town resources, provide the framework for resource allocation
reflected in the proposed budget.
Donation Opportunities - FY 2013/14 List of Town Needs
As part of the budget development process, the Donation and Solicitation Policy List of Town
Needs is updated to reflect goods, services, and other contributions that would help enhance
Town services, programs, and events. The attached FY 2013 /14 list (Attachment 5) has been
updated to include a new specific donation opportunity for the library related to the Community
Service Officer Intern position; donation of public art; and donation of land. Funding to support
public art for the new library has been removed as the project has been completed and the listing
related to re- purposing the former library space has been revised to be consistent with the
project's current status.
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
FY 2013 -2018 Capital Improvement Program
The FY 2013 -2018 Capital Improvement Program will also be presented at the May 28 Town
Council meeting. The five -year plan sets forth the schedule for street - related, parks and public
facility projects to be completed during this period. In January 2013, the Town Council
identified priorities for the allocation of one -time funds for capital projects. The five -year plan
reflects the Council's priorities for use of these funds, as well as other projects using other
funding sources. Only the first year of the plan is formally adopted with funds appropriated by
the Town Council as part of the budget process.
The CIP transmittal letter includes a summary of the significant projects recommended for FY
2013/14. Of those significant projects, staff would like to highlight the following:
Street Program Projects:
■ Almond Grove Street rehabilitation project, including the design and community
outreach regarding the reconstruction of neighborhood streets after funding has been
allocated.
Highway 9 /University Avenue intersection traffic system improvements, including
dedicated left turn lanes, new traffic signal and sidewalks, and ADA improvements.
Winchester Boulevard /Lark Avenue intersection improvement project to add a receiving
lane northbound on Winchester from Lark Avenue, in addition to traffic signal
improvements
Winchester Boulevard and Knowles intersection improvement project with an additional
turning lane, new sidewalks and traffic signal improvements.
Parks Projects:
• Town Park lighting project, including installation of new outdoor lighting in three Town
Parks — Blossom Hill Park, Howe's Play Lost and Live Oak Manor Park.
• Pedestrian Bridge to the sports park, specifically the design and development phase for
the construction of a pedestrian bridge from Los Gatos Creek Trail to the Creekside
Sports Park, subject to public review and Council approval.
• Open space trail upgrades, with the design and development phase being initiated in FY
13/14 to reconstruct a section of Los Gatos Creek Trail along Charter Oak Drive.
Public Facilities Project:
■ Civic Center Reuse project to replace the elevator and make ADA improvements to the
restrooms to support the repurposing of the former library for the Museums of Los Gatos
and the Friends of the Los Gatos Library.
Budget Presentation
At the May 28, 2013 Town Council meeting, the Council will consider the proposed Operating
and Capital Improvement Program budgets. The review and discussion of the proposed budgets
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MAYOR AND TOWN COUNCIL
SUBJECT: OPERATING AND CAPITAL BUDGETS
May 22, 2013
will occur following the format outlined below:
• Opening Comments
• Operating Budget Overview
• Operating Budget Highlights
• Capital Budget Overview
• Public Comment
• Council direction
Town Manager
Town Manager
Finance and Budget Manager
Parks & Public Works Director
Public
Town Council
Departmental staff will be available to respond to specific Council questions. Any changes to
the proposed operating and /or capital budget directed by Council and /or identified by staff as a
"clean -up" item will be included for Council consideration in the resolution formally adopting
the budget to be considered by Council in June.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no farther action is required.
FISCAL IMPACT:
The fiscal impact is presented in summary form in the Financial Summaries chapter of the
Proposed Operating and Capital Budget for FY 2013/14.
Attachments:
1. FY 2013/14 Proposed Operating and Capital Budget (Previously Submitted)
2. FY 2013 — 2018 Proposed Capital Improvement Program Budget (Previously Submitted)
3. Draft 2013- 2015 Strategic Goals
4. Adopted 2012 — 2014 Strategic Goals
5. FY 2013/14 List of Town Needs