2 - Financial Summaries Section PROPOSED
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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
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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
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TOTAL BUDGETED FUND ACTIVITY SUMMARY
FY 2013/14
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.
EstimatedRevenues,Expenditures,EstimatedFund Balance
Fund BalancePY CarryfwdsPY CarryfwdsFund BalanceChange
7/1/2013& Transfers& Transfers6/30/2014From PYFund
Operating Funds
Government Funds
General Fund21,682,463$ 33,726,739$ 36,394,937$ 19,014,265$ -12.3%111
Housing Conservation Program37,183 8,689 - 45,872 23.4%211
Community Dev Block Grant2,507 60,000 60,000 2,507 0.0%212
Urban Run-Off Source Fund 248,035 332,000 359,045 220,990 -10.9%222
Blackwell Assessment District6,608 3,214 3,602 6,220 -5.9%231
Kennedy Assessment District30,630 10,541 5,240 35,931 17.3%232
Gemini Assessment District16,548 4,284 2,451 18,381 11.1%233
Santa Rosa Assessment District55,397 5,054 4,137 56,314 1.7%234
Vasona Assessment District28,814 9,975 5,442 33,347 15.7%235
Hillbrook Assessment District7,143 5,986 3,794 9,335 30.7%236
Proprietary Funds - Internal Service Funds
ABAG Self Insurance1,396,050 503,815 699,926 1,199,939 -14.0%611
Worker's Comp Self Insurance2,165,383 655,549 758,607 2,062,325 -4.8%612
Management Information Systems2,339,983 1,023,191 1,140,911 2,222,263 -5.0%621
Office Stores Fund 137,262 117,000 143,150 111,112 -19.1%622
Equipment Replacement3,267,235 473,929 543,304 3,197,860 -2.1%631
Facilities Maintenance533,405 528,600 528,466 533,539 0.0%632
Vehicle Maintenance1,153,527 1,222,014 1,472,018 903,523 -21.7%633
Total Operating Funds33,108,173$ 38,690,580$ 42,125,030$ 29,673,723$ -10.4%
Trust & Agency Funds
Friends of the Library-$ -$ -$ -$ 0.0%710
Library Trust4,048 36,784 28,350 12,482 208.3%711
Library History Project2,780 2,020 2,000 2,800 0.7%712
Ness Trust Bequest190,638 1,500 10,000 182,138 -4.5%713
Betty McClendon Trust99,031 700 10,000 89,731 -9.4%714
Barbara J Cassin Trust465,962 5,000 129,817 341,145 -26.8%716
Parking District #88241,263 - 140,366 100,897 -58.2%721
Total Trust & Agency Funds1,003,722$ 46,004$ 320,533$ 729,193$ -27.4%
Capital Funds
GFAR5,624,839$ 3,333,746$ 3,340,999$ 5,617,586$ -0.1%411
Grant Funded CIP Projects(81,489) 536,869 536,869 (81,489) 0.0%421
Storm Drain #1327,994 48,120 - 376,114 14.7%461
Storm Drain #2796,337 53,000 - 849,337 6.7%462
Storm Drain #3(59,989) 4,000 - (55,989) -6.7%463
Traffic Mitigation152,198 800,000 20,000 932,198 512.5%471
Construction Tax-Undergrounding2,511,322 45,000 - 2,556,322 1.8%472
Gas Tax268,090 833,290 1,041,000 60,380 -77.5%481
Total Capital Projects Funds9,539,302$ 5,654,025$ 4,938,868$ 10,254,459$ 7.5%
Successor Agency of the Los Gatos RDA Funds
SA- Trust Fund3,081,655$ 4,195,209$ 4,195,066$ 3,081,798$ 0.0%942
Total Successor Agency of the Los Gatos RDA Reserve3,081,655$ 4,195,209$ 4,195,066$ 3,081,798$ 0.0%
TOTAL ALL FUNDS46,732,852$ 48,585,818$ 51,579,497$ 43,739,173$ -6.4%
PROPOSED
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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.
RDA Successor Agency Private Purpose Trust Fund – Formerly known as the Redevelopment Agency (RDA), as required a
private purpose trust fund was established to account for the assets and liabilities transferred from the dissolution of the Town’s
former RDA and the continuing operations related to the existing Redevelopment Agency obligations. The Successor
Agency’s Private Purpose Trust Fund has been incorporated into the Town’s operating budget.
*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
2004/05Actuals40,170,433 35,716,244 45,642,187
2005/06Actuals47,575,202 40,769,411 52,447,978
2006/07Actuals57,356,538 50,554,905 59,249,611
2007/08Actuals57,785,654 54,751,838 62,283,427
2008/09Actuals58,959,239 51,969,267 69,273,399
2009/10Actuals68,176,239 62,169,737 75,279,901
2010/11Actuals53,198,202 72,439,477 56,038,626
2011/12Actuals69,593,000 75,659,793 49,971,833
2012/13Estimated49,437,750 52,676,731 46,732,852
2013/14Adopted48,585,818 51,579,497 43,739,173
PROPOSED
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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, and implementing operating efficiencies, 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 2013/14.
The FY 2013/14 budget is a balanced budget and the five-year financial forecast projects one more year of
continued deficits with a positive budget environment forecasted for FY 2015/16. The FY 2013/14 budget has been
balanced largely due to revenue enhancements as the economy is recovering and the Town is experiencing growth in
the economically sensitive revenue sources such as Business Licenses, other Taxes and Licenses and Permits.
However, despite these revenue increases, the Town is still faced with rising costs 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 44% of the Town’s total expenditures and 58% of
General Fund expenditures in FY 2013/14. Delivery of Town services is highly dependent on labor. The single
largest driver of labor cost increases has been the Town’s contribution to the Public Employees Retirement System
(PERS). The Town’s safety retirement contribution rates paid to the PERS have more than doubled in recent years
and are expected to continue to increase over the next several years. In FY 2012/13, the employer PERS
contribution rate for safety employees was 39.31% and is expected to adjust to 40.85% in FY 2013/14. For all other
employees, the rate will increase from 19.62% in FY 2012/13 to 21.9% in FY 2013/14.
In FY 2012/13, a three-tier pension plan was implemented for non-sworn and management employees, changing the
pension formula from 2.5% at 55 to 2% at 60 for new hires after September 15, 2012, or 2% at 62 for “new”
employees hired after January 1, 2013 who were not previously in a public pension system. Similarly, in FY
2012/13 a two-tier pension plan was implemented for safety employees, changing the pension formula for “new”
employees, not previously in a public pension system, from 3% at 50 to 2.7% at 57, effective January 1, 2013.
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 currently underway with the Town Employees Association (TEA) to discuss a successor
Memorandum of Understanding (MOU) since the prior 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 received 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 2013/14. The Town has taken steps to ensure
energy efficiency in new facilities and is looking at ways to reduce fuel costs by utilizing electric vehicles and
installing electric vehicle charging stations throughout the Town. Staff will continue to explore energy alternatives
to reduce costs.
Revenue Recovery – On a positive note, all signs indicate that the economy is making a slow recovery and locally
the Town is experiencing increases in economically sensitive revenues such as business licenses, sales and use tax,
and licenses and permits for FY 2013/14. General Fund Town revenues for FY 2013/14 are 2% greater than
budgeted for the prior fiscal year. This increase is largely due to forecasted increases in business licenses activity,
trending increases in licenses and permits and other taxes, particularly in our Community Development Division.
PROPOSED
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2009/102010/112011/122012/132013/142009/102010/112011/122012/132013/14ActualsActualsActualsEstimatedAdoptedActualsActualsActualsEstimatedAdopted
REVENUESProperty Tax7,465,871$ 7,289,897$ 7,532,073$ 7,868,034$ 7,786,976$ 259$ 64$ 329$ -$ -$
VLF Backfill2,343,495 2,327,053 2,353,158 2,400,000 2,424,000 - - - - -
Sales & Use Tax8,317,216 9,971,409 9,889,100 7,442,856 7,797,615 - - - - -
Franchise Fees1,699,839 1,901,605 1,952,488 2,009,940 2,040,030 - - - - -
Transient Occupancy Tax923,783 1,004,659 1,174,485 1,000,000 1,015,000 - - - - -
Other Taxes1,225,154 1,143,294 1,087,333 1,292,528 1,365,550 33,510 37,760 37,760 37,760 37,760
Licenses & Permits2,035,308 2,040,811 2,361,510 2,597,097 2,577,413 - - - - -
Intergovernmental878,656 834,713 798,258 736,135 739,685 49,945 136,960 - 182,364 60,000
Town Services2,565,437 2,672,513 2,829,124 2,829,121 2,524,258 135,000 135,000 135,000 502,000 332,000
Internal Srvc Reimbursement- - - - - - - - - -
Fines & Forfeitures571,245 617,779 755,444 599,606 669,850 - - - - -
Interest870,512 625,654 259,146 421,656 477,970 15,131 11,229 10,650 10,413 9,983
Other Sources1,525,254 1,011,565 1,142,349 2,142,455 1,556,077 - 10,600 10,312 - -
CIP Proj Reimbursement931,371 1,354,882 2,094,852 1,963,971 1,935,578 - - - - -
SCC RPTTF Reimbursement- - - - - - - - - -
Fund Transfers In440,326 437,755 231,723 592,920 816,737 - - 92,976 - -
TOTAL REVENUES
31,793,467
33,233,589 34,461,043 33,896,319 33,726,739 233,845 331,613 287,027 732,537 439,743
EXPENDITURESSalaries & Benefits19,356,682 19,509,657 20,348,155 20,623,744 21,206,764 91,481 89,683 86,939 92,806 123,124
Operating Expenditures5,940,791 5,828,392 6,194,176 7,636,294 6,914,147 51,932 48,263 31,262 251,192 250,222
Grants & Awards228,850 243,237 168,135 178,420 160,790 536,234 218,848 - 13,094 -
Fixed Assets24,516 1,900 42,612 - - - - - - -
Interest- - - - - 1,638 503 94 - -
Internal Service Charges3,240,600 3,040,852 3,139,280 3,347,926 3,423,258 15,949 13,437 14,411 5,416 5,444
Capital Projects- - - - - - - - - -
Capital Acquisitions3,116,295 - - - - - - - - -
Debt Service931,371 1,354,882 2,094,852 1,963,971 1,935,578 - - - - -
Transfers825,000 786,525 2,292,802 1,951,313 2,754,399 6,756 204,395 4,920 174,190 64,920
TOTAL EXPENDITURES
33,664,105
30,765,445 34,280,012 35,701,668 36,394,936 703,990 575,129 137,626 536,698 443,710
Net Increase (Decrease)
(1,870,638)
2,468,144 181,031 (1,805,349) (2,668,197) (470,145) (243,516) 149,401 195,839 (3,967)
Beginning Fund Balance
22,709,276
20,838,638 23,306,782 23,487,813 21,682,464 801,284 331,139 87,623 237,024 432,863
Ending Fund Balance
20,838,638
$ 23,306,782$ 23,487,813$ 21,682,464$ 19,014,267$ 331,139$ 87,623$ 237,024$ 432,863$ 428,896$
GENERAL FUNDSPECIAL REVENUE FUNDS
PROPOSED
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2009/102010/112011/122012/132013/142009/102010/112011/122012/132013/14ActualsActualsActualsEstimatedAdoptedActualsActualsActualsEstimatedAdopted
REVENUESProperty Tax-$ -$ -$ -$ -$ 38,252$ 2,406$ -$ -$ -$
VLF Backfill- - - - - - - - - -
Sales & Use Tax- - - - - - - - - -
Franchise Fees- - - - - - - - - -
Transient Occupancy Tax- - - - - - - - - -
Other Taxes19,586 31,723 44,387 40,500 20,000 101,434 121,625 132,996 71,626 -
Licenses & Permits- - - - - - - - - -
Intergovernmental- - - - - - - - - -
Town Services82,353 88,232 126,115 118,558 95,000 - - - - -
Internal Srvc Reimbursement4,039,222 3,839,607 3,936,406 4,094,459 4,214,098 - - - - -
Fines & Forfeitures- - - - - - - - - -
Interest39 18 30 - - 11,036 26,364 11,766 9,429 7,704
Other Sources136,971 134,162 538,273 259,072 195,000 20,738 685,153 27,241 28,095 38,300
CIP Proj Reimbursement- - - - - - - - - -
SCC RPTTF Reimbursement- - - - - - - - - -
Fund Transfers In8,990 - - - - - - - - -
TOTAL REVENUES
4,287,161
4,093,742 4,645,211 4,512,589 4,524,098 171,460 835,548 172,003 109,150 46,004
EXPENDITURESSalaries & Benefits1,003,584 957,825 1,075,759 1,040,605 1,144,930 - - - - -
Operating Expenditures2,473,434 2,496,405 3,613,260 3,217,619 3,113,968 24,526 24,983 187,213 115,679 125,350
Grants & Awards- - - - - - - - - -
Fixed Assets376,859 188,939 504,409 407,187 528,484 - - - - -
Interest- - - - - 42,930 34,583 25,440 15,701 5,366
Internal Service Charges- - - - - - - - - -
Capital Projects- - - - - - - - - -
Capital Acquisitions- - - - - - - - - -
Debt Service- - - - - 100,000 110,000 120,000 125,000 135,000
Transfers201,800 194,000 73,546 105,820 499,000 - - - 20,000 54,817
TOTAL EXPENDITURES
4,055,677
3,837,169 5,266,974 4,771,231 5,286,382 167,456 169,566 332,653 276,380 320,533
Net Increase (Decrease)
231,484
256,573 (621,763) (258,642) (762,284) 4,004 665,982 (160,650) (167,230) (274,529)
Beginning Fund Balance
11,385,195
11,616,679 11,873,252 11,251,489 10,992,847 661,616 665,620 1,331,602 1,170,952 1,003,722
Ending Fund Balance
11,616,679
$ 11,873,252$ 11,251,489$ 10,992,847$ 10,230,563$ 665,620$ 1,331,602$ 1,170,952$ 1,003,722$ 729,193$
INTERNAL SERVICE FUNDSLIBRARY TRUSTS & PARKING ASSESSMENT FUNDS
PROPOSED
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2009/102010/112011/122012/132013/142009/102010/112011/122012/132013/14ActualsActualsActualsEstimatedAdoptedActualsActualsActualsEstimatedAdopted
REVENUESProperty Tax-$ -$ -$ -$ -$ 9,022,863$ 8,577,063$ 4,186,567$ -$ -$
VLF Backfill- - - - - - - - - -
Sales & Use Tax- - - - - - - - - -
Franchise Fees- - - - - - - - - -
Transient Occupancy Tax- - - - - - - - - -
Other Taxes19,586 31,989 44,387 35,000 15,000 - - - - -
Licenses & Permits272,862 525,212 625,211 471,655 277,000 - - - - -
Intergovernmental3,154,121 2,281,630 856,576 2,146,130 1,469,159 - - 16,644,334 200 200
Town Services- - 44,450 - - - - - - -
Internal Srvc Reimbursement- - - - - - - - - -
Fines & Forfeitures- - - - - - - - - -
Interest68,430 46,933 40,257 29,400 41,120 220,129 7,207 (25,210) - -
Other Sources16,575,264 292,772 1,399,944 1,218,225 898,000 16,044 22 1,100,000 - -
CIP Proj Reimbursement- - - - - 931,371 1,354,882 2,094,852 4,160,142 4,124,356
SCC RPTTF Reimbursement- - - - - - - - - -
Fund Transfers In834,636 986,000 1,923,428 2,076,878 2,953,746 575,000 600,000 1,092,920 49,525 70,653
TOTAL REVENUES
20,924,899
4,164,536 4,934,253 5,977,288 5,654,025 10,765,407 10,539,174 25,093,463 4,209,867 4,195,209
EXPENDITURESSalaries & Benefits103,210 149,427 241,129 - - 308,043 342,730 246,305 23,062 13,171
Operating Expenditures40,186 2,330 - - - 7,200,100 17,251,475 14,457,189 321,124 57,780
Grants & Awards- - - - - 412,000 150,000 - - -
Fixed Assets- - - - - - - - - -
Interest309,158 20,500 - - - 617,204 1,021,132 1,148,185 1,018,971 980,578
Internal Service Charges2,667 - 3,806 - - 16,972 19,010 13,976 3,640 2,958
Capital Projects7,390,915 14,870,970 10,684,546 6,646,986 4,720,871 671,337 519,126 (75,428) - -
Capital Acquisitions- - - - - 4,285,784 68,001 - - -
Debt Service- - - - - 1,395,537 1,838,632 3,129,019 2,908,971 2,890,578
Transfers250,396 238,835 319,779 218,000 218,000 575,000 600,000 5,474,022 250,000 250,000
TOTAL EXPENDITURES
8,096,532
15,282,062 11,249,260 6,864,986 4,938,871 15,481,977 21,810,106 24,393,268 4,525,768 4,195,065
Net Increase (Decrease)
12,828,367
(11,117,526) (6,315,007) (887,698) 715,154 (4,716,570) (11,270,932) 700,195 (315,901) 144
Beginning Fund Balance
15,031,166
27,859,533 16,742,007 10,427,000 9,539,302 18,684,862 13,968,292 2,697,360 3,397,555 3,081,654
Ending Fund Balance
27,859,533
$ 16,742,007$ 10,427,000$ 9,539,302$ 10,254,456$ 13,968,292$ 2,697,360$ 3,397,555$ 3,081,654$ 3,081,798$ CAPITAL PROJECT FUNDSSUCCESSOR AGENCY TO THE LOS GATOS RDA
PROPOSED
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2009/102010/112011/122012/132013/14ActualsActualsActualsEstimatedAdopted
REVENUESProperty Tax16,527,245$ 15,869,430$ 11,718,969$ 7,868,034$ 7,786,976$
VLF Backfill2,343,495 2,327,053 2,353,158 2,400,000 2,424,000
Sales & Use Tax8,317,216 9,971,409 9,889,100 7,442,856 7,797,615
Franchise Fees1,699,839 1,901,605 1,952,488 2,009,940 2,040,030
Transient Occupancy Tax923,783 1,004,659 1,174,485 1,000,000 1,015,000
Other Taxes1,399,270 1,366,391 1,346,863 1,477,414 1,438,310
Licenses & Permits2,308,170 2,566,023 2,986,721 3,068,752 2,854,413
Intergovernmental4,082,722 3,253,303 18,299,168 3,064,829 2,269,044
Town Services2,782,790 2,895,745 3,134,689 3,449,679 2,951,258
Internal Srvc Reimbursement4,039,222 3,839,607 3,936,406 4,094,459 4,214,098
Fines & Forfeitures571,245 617,779 755,444 599,606 669,850
Interest1,185,277 717,405 296,639 470,898 536,777
Other Sources18,274,271 2,134,274 4,218,119 3,647,847 2,687,377
CIP Proj Reimbursement1,862,742 2,709,764 4,189,704 6,124,113 6,059,934
SCC RPTTF Reimbursement- - - - -
Fund Transfers In1,858,952 2,023,755 3,341,047 2,719,323 3,841,136
TOTAL REVENUES
68,176,239
53,198,202 69,593,000 49,437,750 48,585,818
EXPENDITURESSalaries & Benefits20,863,000 21,049,322 21,998,287 21,780,217 22,487,989
Operating Expenditures15,730,969 25,651,848 24,483,100 11,541,908 10,461,467
Grants & Awards1,177,084 612,085 168,135 191,514 160,790
Fixed Assets401,375 190,839 547,021 407,187 528,484
Interest970,930 1,076,718 1,173,719 1,034,672 985,944
Internal Service Charges3,276,188 3,073,299 3,171,473 3,356,982 3,431,660
Capital Projects8,062,252 15,390,096 10,609,118 6,646,986 4,720,871
Capital Acquisitions7,402,079 68,001 - - -
Debt Service2,426,908 3,303,514 5,343,871 4,997,942 4,961,156
Transfers1,858,952 2,023,755 8,165,069 2,719,323 3,841,136
TOTAL EXPENDITURES
62,169,737
72,439,477 75,659,793 52,676,731 51,579,497
Net Increase (Decrease)
6,006,502
(19,241,275) (6,066,793) (3,238,981) (2,993,679)
Beginning Fund Balance
69,273,399
75,279,901 56,038,626 49,971,833 46,732,852
Ending Fund Balance
75,279,901
$ 56,038,626$ 49,971,833$ 46,732,852$ 43,739,173$
TOTAL ALL FUNDS
PROPOSED
C - 10
TOTAL TOWN REVENUES
BY FUND
(Includes Transfers In)
2009/102010/112011/122012/132012/132013/14Change
FundFund NameActualsActualsActualsAdoptedEstimatedAdoptedfrom PY
General Fund
111General Fund31,793,466$ 33,233,589$ 34,461,043$ 32,804,598$ 33,896,319$ 33,726,739$ 2.8%
Special Revenue Funds
221Solid Waste Fund- - - - - - 0.0%
211Housing Conservation Program13,191 20,496 19,720 5,029 9,119 8,689 72.8%
212Community Dev Block Grant49,945 136,960 92,976 274,079 182,364 60,000 -78.1%
222Urban Run-Off Source Fund 135,000 135,000 135,000 502,000 502,000 332,000 -33.9%
231Blackwell Assessment District3,348 3,252 3,215 3,236 3,214 3,214 -0.7%
232Kennedy Assessment District10,595 10,498 10,741 10,547 10,541 10,541 -0.1%
233Gemini Assessment District4,389 4,285 4,278 4,316 4,284 4,284 -0.7%
234Santa Rosa Assessment District5,610 5,204 5,053 5,288 5,054 5,054 -4.4%
235Vasona Assessment District10,004 9,944 10,055 9,991 9,975 9,975 -0.2%
236Hillbrook Assessment District1,763 5,973 5,989 5,970 5,986 5,986 0.3%
Internal Service Funds
611ABAG Self Insurance491,082 500,056 513,165 501,292 487,061 503,815 0.5%
612Worker's Comp Self Insurance648,890 655,734 841,678 659,429 640,638 655,549 -0.6%
621Management Information Systems1,002,319 984,426 1,031,659 1,020,673 1,045,673 1,023,191 0.2%
622Office Stores Fund 119,598 113,541 91,756 127,500 64,400 117,000 -8.2%
631Equipment Replacement389,675 369,525 536,004 439,532 528,780 473,929 7.8%
632Facilities Maintenance624,500 488,689 540,731 544,325 544,325 528,600 -2.9%
633Vehicle Maintenance1,011,096 981,771 1,090,219 1,138,086 1,201,712 1,222,014 7.4%
Trust & Agency
710Friends of the Library- - - - - - 0.0%
711Library Trust20,601 16,905 886 15,858 26,579 36,784 132.0%
712Library History Project1,076 2,641 695 1,001 2,028 2,020 101.8%
713Ness Trust Bequest3,710 2,461 1,959 1,500 1,500 1,500 0.0%
714Betty McClendon Trust1,890 1,251 1,011 700 700 700 0.0%
716Barbara J Cassin Trust- 666,252 32,379 5,000 5,672 5,000 0.0%
721Parking District #88144,182 146,038 135,074 138,090 72,671 - -100.0%
Capital Projects Funds
411GFAR17,807,050 1,236,199 2,574,474 4,523,668 2,432,527 3,333,746 -26.3%
421Grant Funded CIP Projects2,379,704 1,752,253 (14,895) 2,274,861 1,316,517 536,869 -76.4%
461Storm Drain #139,962 83,018 157,078 48,120 128,855 48,120 0.0%
462Storm Drain #261,285 85,333 92,622 53,420 46,400 53,000 -0.8%
463Storm Drain #32,665 86 916 1,000 14,300 4,000 300.0%
471Traffic Mitigation60,429 210,655 1,178,657 1,936,474 1,146,899 800,000 -58.7%
472Construction Tax-Undergrounding68,766 62,652 69,363 51,250 61,000 45,000 -12.2%
481Gas Tax505,042 734,341 876,036 834,560 830,790 833,290 -0.2%
Successor Agency to the Los Gatos RDA Funds
911SA - Administration580,951 604,250 780,753 255,000 - - -100.0%
921SA - Debt Service 8,313,191 8,222,522 5,719,849 3,910,142 - - -100.0%
931SA - Low / Moderate Housing 1,871,264 1,712,402 1,948,527 - - - 0.0%
941SA - Recognized Obligation Retiremen- - - 2,196,171 - - -100.0%
942SA - Recognized Obligation Retiremen- - 16,644,334 - 4,209,867 4,195,209 0.0%
943SA- Trust Fund- - - - - - 0.0%
TOTAL Fund Rev & Transfers-in68,176,239$ 53,198,202$ 69,593,000$ 54,302,706$ 49,437,750$ 48,585,818$ -10.5%
Plus Estimated PY Carryforward Grant Revenue for Capital Projects-
Total Fund Revenues, Transfers-in, and Prior Year Carryforwards48,585,818$
PROPOSED
C - 11
TOTAL TOWN REVENUES
BY FUND
2009/102010/112011/122012/132012/132013/14% of
ActualsActualsActualsAdoptedEstimatedAdoptedTotal
General Fund31,793,466$ 33,233,589$ 34,461,043$ 32,804,598$ 33,896,319$ 33,726,739$ 69.3%
Special Revenue Funds233,845 331,612 287,027 820,456 732,537 439,743 0.9%
Internal Service Funds4,287,160 4,093,742 4,645,212 4,430,837 4,512,589 4,524,098 9.3%
Trust & Agency Funds171,459 835,548 172,004 162,149 109,150 46,004 0.1%
Capital Project Funds20,924,903 4,164,537 4,934,251 9,723,353 5,977,288 5,654,025 11.6%
Successor AgencyFunds10,765,406 10,539,174 25,093,463 6,361,313 4,209,867 4,195,209 8.6%
Total Rev & Transfers In68,176,239$ 53,198,202$ 69,593,000$ 54,302,706$ 49,437,750$ 48,585,818$ 100.0%
FY 2013/14 Revenues By Fund
PROPOSED
C - 12
TOTAL TOWN EXPENDITURES
BY FUND
(Includes Transfers Out)
2009/102010/112011/122012/132012/132013/14Change
FundFund NameActualsActualsActualsAdoptedEstimatedAdoptedfrom PY
General Fund
111General Fund33,664,106$ 30,765,445$ 34,280,012$ 35,280,287$ 35,701,668$ 36,394,937$ 3.2%
Special Revenue Funds
221Solid Waste Fund- - - - - - 0.0%
211Housing Conservation Program505,823 194,711 94 12 - - -100.0%
212Community Dev Block Grant49,498 230,079 - 273,973 182,364 60,000 -78.1%
222Urban Run-Off Source Fund 114,977 117,061 116,607 338,798 330,501 359,045 6.0%
231Blackwell Assessment District3,420 2,520 2,905 3,490 2,353 3,602 3.2%
232Kennedy Assessment District6,859 9,907 4,658 7,633 6,124 5,240 -31.4%
233Gemini Assessment District3,076 3,075 1,851 4,765 2,451 2,451 -48.6%
234Santa Rosa Assessment District8,638 7,089 3,837 4,795 3,941 4,137 -13.7%
235Vasona Assessment District7,362 5,008 4,178 6,670 5,361 5,442 -18.4%
236Hillbrook Assessment District4,336 5,679 3,494 6,590 3,602 3,794 -42.4%
Internal Service Funds
611ABAG Self Insurance504,146 512,622 984,093 652,249 686,151 699,926 7.3%
612Worker's Comp Self Insurance506,795 571,225 1,350,924 742,411 775,893 758,607 2.2%
621Management Information Systems967,384 929,576 823,816 1,370,665 1,179,035 1,140,911 -16.8%
622Office Stores Fund 126,686 124,253 130,830 143,050 133,708 143,150 0.1%
631Equipment Replacement578,737 372,595 496,494 714,201 394,945 543,304 -23.9%
632Facilities Maintenance464,303 478,402 457,838 540,532 532,629 528,466 -2.2%
633Vehicle Maintenance907,626 848,496 1,022,978 1,715,544 1,068,870 1,472,018 -14.2%
Trust & Agency
710Friends of the Library- - - - - - 0.0%
711Library Trust17,980 18,592 22,103 58,452 53,250 28,350 -51.5%
712Library History Project3,592 3,434 - 1,810 - 2,000 10.5%
713Ness Trust Bequest- - 4,000 45,000 - 10,000 -77.8%
714Betty McClendon Trust- - - 50,000 - 10,000 -80.0%
716Barbara J Cassin Trust- - 158,340 80,000 80,000 129,817 62.3%
721Parking District #88145,884 147,540 148,209 143,526 143,130 140,366 -2.2%
Capital Projects Funds
411GFAR5,192,284 11,835,099 8,664,048 14,815,244 4,019,684 3,340,999 -77.4%
421Grant Funded CIP Projects1,743,648 2,191,072 692,213 1,655,593 726,725 536,869 -67.6%
461Storm Drain #145,890 - 440 284,560 241,845 - -100.0%
462Storm Drain #2- - - - - - 0.0%
463Storm Drain #317,180 24,690 - - - - 0.0%
471Traffic Mitigation60,429 210,655 1,131,857 1,983,274 1,120,733 20,000 -99.0%
472Construction Tax-Undergrounding208,347 - 4,707 - - - 0.0%
481Gas Tax828,753 1,020,546 756,000 756,000 756,000 1,041,000 37.7%
Successor Agency to the Los Gatos RDA Funds
911SA - Administration1,237,563 770,215 2,023,801 304,470 - - -100.0%
921SA - Debt Service 8,882,082 14,187,434 7,174,160 3,910,142 - - -100.0%
931SA - Low / Moderate Housing 5,362,333 6,852,457 1,948,527 - - - 0.0%
941SA - Recognized Obligation Retirement- - - 2,196,171 - - -100.0%
942SA- Trust Fund- - 13,246,779 - 4,525,768 4,195,066
TOTAL Fund Rev & Transfers-in62,169,737$ 72,439,477$ 75,659,793$ 68,089,907$ 52,676,731$ 51,579,497$ -24.2%
PROPOSED
C - 13
TOTAL TOWN EXPENDITURES
BY FUND
2009/102010/112011/122012/132012/132013/142013/14
ActualsActualsActualsAdoptedEstimatedAdopted%
General Fund33,664,106$ 30,765,445$ 34,280,012$ 35,280,287$ 35,701,668$ 36,394,937$ 70.6%
Special Revenue Funds703,989 575,129 137,624 646,726 536,697 443,711 0.9%
Internal Service Funds4,055,677 3,837,169 5,266,973 5,878,652 4,771,231 5,286,382 10.2%
Trust & Agency Funds167,456 169,566 332,652 378,788 276,380 320,533 0.6%
Capital Project Funds8,096,531 15,282,062 11,249,265 19,494,671 6,864,987 4,938,868 9.6%
Successor Agency Funds15,481,978 21,810,106 24,393,267 6,410,783 4,525,768 4,195,066 8.1%
Total Exp & Transfers Out62,169,737$ 72,439,477$ 75,659,793$ 68,089,907$ 52,676,731$ 51,579,497$ 100.0%
FY 2013/14 Expenditures by Fund
PROPOSED
C - 14
TOTAL TOWN REVENUES
BY CATEGORY
FY 2013/14
Budgeted Revenues
Total Budgeted Revenues (exclusive of Bond Proceeds and Transfers In) has decreased from prior year budgeted,
however, FY 2013/14 is the first year since the economic downtown that the Town will be experiencing revenue growth in
some of the key economically sensitive revenue categories of Business License, Licenses and Permits and other Taxes.
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 8.375 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 2013/14 budget
reflects $7.8 million in sales tax revenue, or a 1% decline compared to the prior year budgeted amount of $7.9 million.
This is mostly due to a business model change in Netflix, an internet streaming provider, which previously accounted for
nearly 40% of all sales tax received by the Town. While lower than the prior year, the FY 2013/14 sales tax revenue
reflects some modest growth potential as many other businesses in the Los Gatos area are reporting higher revenues.
Licenses and Permits – FY 2013/14 Licenses and Permits reflect an 24% increase as a result of increased building
activity.
Intergovernmental Revenues – Decreases in intergovernmental revenues are due to the dissolution of the Redevelopment
Agency and reduction in money received by the County to fund the Recognized Obligation Retirement Fund (RORF) to
pay Successor Agency enforceable obligations and related administrative expenses.
Interest – Interest income is forecasted to be lower in FY 2013/14 due to a declining interest rate environment and reduced
cash balances than prior years as a result of the dissolution of the Redevelopment Agency and capital expenditures planned
for the coming fiscal year.
Other Sources – This revenue reflects lease reimbursement revenue received from the Successor Agency to the Los Gatos
Redevelopment Agency for 2002, and 2010 Certificates of Participation (COPs) debt service payments for the bond issues.
2009/102010/112011/122012/132012/132013/14% of
RevenuesActualsActualsActualsAdoptedEstimatedAdoptedTotal
Property Tax16,527,244$ 15,869,429$ 11,718,969$ 8,042,807$ 7,868,034$ 7,786,976$ 16.0%
VLF Backfill Property Tax2,343,495 2,327,053 2,353,158 2,272,820 2,400,000 2,424,000 5.0%
Sales & Use Tax8,317,216 9,971,409 9,889,100 7,859,000 7,442,856 7,797,615 16.0%
Franchise Fees1,699,839 1,901,605 1,952,488 1,939,820 2,009,940 2,040,030 4.2%
Transient Occupancy Tax923,783 1,004,659 1,174,485 1,099,860 1,000,000 1,015,000 2.1%
Miscellaneous Other Taxes1,399,269 1,366,390 1,346,864 1,484,636 1,477,414 1,438,310 3.0%
Licenses & Permits2,308,170 2,566,023 2,986,721 2,349,945 3,068,752 2,854,413 5.9%
Intergovernmental Revenues4,082,722 3,253,303 18,299,169 6,327,633 3,064,829 2,269,044 4.7%
Town Services 2,782,789 2,895,745 3,134,689 2,756,039 3,449,679 2,951,258 6.1%
Internal Service Reimbursements4,039,222 3,839,607 3,936,406 4,185,401 4,094,459 4,214,098 8.7%
Fines & Forfeitures571,245 617,779 755,444 644,470 599,606 669,850 1.4%
Interest1,185,277 717,407 296,639 686,878 470,898 536,777 1.1%
Miscellaneous Other Sources20,137,012 4,844,038 8,407,824 7,701,097 9,771,958 8,747,311 18.0%
66,317,283$ 51,174,447$ 66,251,956$ 47,350,406$ 46,718,425$ 44,744,682$
Plus Bond Proceeds:- - - - - - 0.0%
Plus Transfers In:1,858,951 2,023,755 3,341,047 6,952,298 2,719,323 3,841,136 7.9%
Total Revenues & Other Sources68,176,234$ 53,198,202$ 69,593,003$ 54,302,704$ 49,437,748$ 48,585,818$ 100%
Total Revenues
PROPOSED
C - 15
TOTAL TOWN EXPENDITURES
BY CATEGORY
FY 2013/14 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 24% decrease for FY 2013/14
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 the rising cost of benefits. The FY 2013/14 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 two outstanding Certificates of Participation
(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 was paid in full in early FY
2012/13.
2009/102010/112011/122012/132012/132013/14% of
ActualsActualsActualsAdoptedEstimatedAdoptedTotal
Salaries and Benefits20,863,000$ 21,049,323$ 21,998,286$ 22,229,083$ 21,780,217$ 22,487,990$ 43.6%
Operating Expenditures16,376,991 27,665,266 27,801,575 13,863,028 13,874,345 13,364,869 25.9%
Grants1,177,085 612,085 168,135 228,978 191,514 160,790 0.3%
Fixed Assets401,374 190,839 547,020 699,447 407,187 528,484 1.0%
Interest970,930 1,076,717 1,173,718 1,033,684 1,034,672 985,944 1.9%
Internal Service Charges3,276,188 3,073,299 3,171,473 3,389,496 3,356,982 3,431,661 6.7%
Capital Projects15,464,326 15,458,096 10,609,130 19,319,124 6,646,988 4,720,869 9.2%
Successor Agency Pass Thru1,216,725 696,347 871,220 939,362 1,595,503 967,754 1.9%
Debt Services564,167 593,750 1,154,167 1,050,000 1,070,000 1,090,000 2.1%
60,310,786$ 70,415,722$ 67,494,724$ 62,752,202$ 49,957,408$ 47,738,361$
Transfers Out1,858,951 2,023,755 8,165,069 5,337,706 2,719,323 3,841,136 7.4%
Total Uses of Funds62,169,737$ 72,439,477$ 75,659,793$ 68,089,908$ 52,676,731$ 51,579,497$ 100%
Total Expenditures
Expenditures
PROPOSED
C - 16
GENERAL FUND REVENUES
BY DEPARTMENT
FY 2013/14 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 FY 2011/12, the functions of the Community Services Department were incorporated into the Administrative Services
Department and other departments.
2009/102010/112011/122012/132012/132013/14% of
DepartmentsActualsActualsActualsAdoptedEstimatedAdoptedTotal
Town Council4,000$ 3,195$ 12,943$ -$ 3,707$ 5,000$ 0.0%
Town Treasurer- - - - - - 0.0%
Non-Departmental 21,822,681 23,545,707 23,478,703 22,197,148 21,246,994 21,563,794 69.6%
Administrative Services1,941,466 1,612,317 1,375,155 1,783,483 1,855,529 1,860,734 6.0%
Community Development3,404,087 3,108,045 3,460,347 3,195,313 3,978,618 3,751,079 12.1%
Police Department2,134,464 2,157,639 2,422,695 2,046,728 2,831,504 2,315,357 7.5%
Parks & Public Works835,523 853,914 1,345,907 1,017,735 1,355,823 1,375,628 4.4%
Community Services207,994 110,033 - - - - 0.0%
Library Department71,555 50,102 38,718 63,300 67,253 102,832 0.3%
Total General Fund Revenues30,421,770$ 31,440,952$ 32,134,468$ 30,303,707$ 31,339,428$ 30,974,424$ 99.9%
Town Debt Payments:931,371$ 1,354,882$ 2,094,852$ 1,963,971$ 1,963,971$ 1,935,578$
Fund Transfers In:440,326 437,755 231,723 536,920 592,920 816,737
Net Operating Revenues 31,793,467$ 33,233,589$ 34,461,043$ 32,804,598$ 33,896,319$ 33,726,739$
PROPOSED
C - 17
GENERAL FUND EXPENDITURES
BY DEPARTMENT
FY 2013/14 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 FY 2011/12, the functions of the Community Services Department were incorporated into the Administrative Services
Department and other departments.
2009/102010/112011/122012/132012/132013/14% of
DepartmentsActualsActualsActualsAdoptedEstimatedAdoptedTotal
Police Department12,784,152$ 13,103,808$ 13,441,194$ 13,338,758$ 14,143,458$ 13,492,115$ 42.6%
Parks & Public Works5,137,185 5,105,809 5,440,168 5,675,240 5,577,108 5,899,428 18.6%
Non-Departmental 4,892,280 2,330,254 2,919,839 3,438,834 3,164,282 3,026,693 9.5%
Community Development3,405,712 2,991,866 3,235,675 3,477,286 3,676,772 3,885,380 12.3%
Administrative Services2,356,686 2,294,655 2,641,458 2,874,922 2,738,623 2,768,759 8.7%
Library Services1,994,569 1,817,842 1,810,809 2,174,308 2,073,707 2,201,153 6.9%
Community Services925,281 618,641 (1,025) - - - 0.0%
Town Council160,202 163,447 188,334 211,516 185,313 201,104 0.6%
Town Attorney251,667 197,716 215,794 225,451 227,121 230,327 0.7%
Treasurer- - 112 - - - 0.0%
Clerk - Elected- - - - - - 0.0%
Total General Fund Exp31,907,734$ 28,624,038$ 29,892,358$ 31,416,315$ 31,786,384$ 31,704,959$ 99.9%
Town Debt Payments:931,371$ 1,354,882$ 2,094,852$ 1,963,971$ 1,963,971$ 1,935,578$
Fund Transfers Out:825,000 786,525 2,292,802 1,900,000 1,951,313 2,754,399
Net Operating Expenditures33,664,105$ 30,765,445$ 34,280,012$ 35,280,286$ 35,701,668$ 36,394,936$
PROPOSED
C - 18
GENERAL FUND REVENUES
BY CATEGORY
FY 2013/14 General Fund revenues and fund transfers are estimated to increase by 3% 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 8.375 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 2013/14 budget
reflects $7.8 million in sales tax revenue, or a 1% decline compared to the prior year. This is mostly due to a business
model change in Netflix, an internet streaming provider, which previously accounted for nearly 40% of all sales tax
received by the Town. While lower than the prior year, the FY 2013/14 sales tax revenue reflects some modest growth
potential as other businesses within Los Gatos are reporting increased revenues.
Property Tax – Property tax receipts in Los Gatos are expected to decrease slightly from the budgeted FY 2012/13.
Property tax budget projections are based on valuations projected by the Santa Clara County Assessor’s Office, given
increased home sales, coupled with anticipated adjustments in property tax distribution due to the dissolution of California
redevelopment agencies. In FY 2012/13 the County overestimated property tax receipts and therefore the 2013/14 budget
projection reflects the revised base. Property tax values reflect an approximate 4% growth from FY 2012/13 estimates.
The Town receives 9.3 cents of each property tax dollar paid by property owners. The remaining 90.7 cents of each dollar
is distributed to several other taxing jurisdictions, including local schools, community college districts, the County of
Santa Clara, Santa Clara County Central Fire Protection District, and other special districts that serve the community.
2009/102010/112011/122012/132012/132013/14% of
Revenue CategoryActualsActualsActualsAdoptedEstimatedAdoptedTotal
Sales & Use Tax8,317,216$ 9,971,409$ 9,889,100$ 7,859,000$ 7,442,856$ 7,797,615$ 23.1%
Property Tax7,465,871 7,289,897 7,532,073 8,041,087 7,868,034 7,786,976 23.1%
VLF Backfill Property Tax2,343,495 2,327,053 2,353,158 2,272,820 2,400,000 2,424,000 7.2%
Franchise Fees1,699,839 1,901,605 1,952,488 1,939,820 2,009,940 2,040,030 6.0%
Transient Occupancy Tax923,783 1,004,659 1,174,485 1,099,860 1,000,000 1,015,000 3.0%
Other Taxes1,225,154 1,143,294 1,087,333 1,290,550 1,292,528 1,365,550 4.0%
Licenses & Permits2,035,308 2,040,811 2,361,510 2,075,945 2,597,097 2,577,413 7.6%
Intergovernmental878,656 834,713 798,258 815,773 736,135 739,685 2.2%
Town Services 2,565,437 2,672,513 2,829,124 2,155,039 2,829,121 2,524,258 7.5%
Fines & Forfeitures571,245 617,779 755,444 644,470 599,606 669,850 2.0%
Interest870,512 625,654 259,146 608,566 421,656 477,970 1.4%
Other Sources 2,456,625 2,366,447 3,237,201 3,464,748 4,106,426 3,491,655 10.4%
Total Revenues 31,353,141$ 32,795,834$ 34,229,320$ 32,267,678$ 33,303,399$ 32,910,002$
Fund Transfers In:440,326$ 437,755$ 231,723$ 536,920$ 592,920$ 816,737$ 2.4%
Total Revenues & Transfers In31,793,467$ 33,233,589$ 34,461,043$ 32,804,598$ 33,896,319$ 33,726,739$ 100%
PROPOSED
C - 19
GENERAL FUND REVENUES
BY CATEGORY
Town Services – Charges for Town Services have increased by 17% or $369,219 largely due to an increase in Community
Development related activities. Such activities are projected to continue to rise in light of the recovering economy.
Licenses & Permits – Licenses and Permits reflect a projected 24% increase FY 2013/14 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 9% decrease in revenue is due to changes in
available funding.
Interest Earnings – Interest income is forecasted to be 21% lower in FY 2013/14 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 5%.
Transient Occupancy Tax – Estimates for Transient Occupancy Tax (TOT) reflects an 8% decrease. While personal and
business related travel is gaining strength as the economy recovers, TOT tax is trending lower than originally budgeted in
FY 2012/13. During FY 2013/14 the Town plans to begin audits of local hotels to ensure all revenue is being reported.
Transfers In – Compared to the prior fiscal year, transfers in have increased by $279,817.
Other Sources – Other sources reflect a 1% increase compared to the prior fiscal year.
Fines and Forfeitures – These revenues include library and traffic fines and administrative citations which are expected to
increase by 4%, primarily due to parking enforcement efficiencies.
PROPOSED
C - 20
GENERAL FUND EXPENDITURES
BY CATEGORY
The FY 2013/14 General Fund Operating Budget (net of transfers out) represents a 1% increase compared to the net FY
2012/13 adopted operating expenditures budget of $33,380,288.
Salary & Benefits – The delivery of Town services are highly dependent on labor and comprise 58% of budgeted General
Fund Expenditures for FY 2013/14. 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 $256,080, largely due to changes in PERS rates. Health care costs for active and retired
employees coupled with actuarial requirements continue to grow, are exacerbating the gap between revenue and
expenditures in the 5-year forecast. With anticipated changes to PERS being adopted, it is forecasted that PERS costs will
continue to increase substantially beginning in FY 2015/16.
Operating Expenses – The FY 2013/14 operating expenditures represents a 0.78% increase when compared to the FY
2012/13 adopted budget. Town-wide efforts continue to emphasize the importance of containing operating costs while
maintaining core services; however, factors such as escalating energy costs, 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 2013/14 grants and awards reflects only decrease in grant funding of $21,830
from 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 2013/14 reflects a 1.3% increase in the Internal Service Fund.
Debt Service – The Town facilitates the Successor Agency (SA) to the Los Gatos Redevelopment Agency’s two
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 $2.8 million for FY 2013/14.
2009/102010/112011/122012/132012/132013/14% of
Expenditure CategoryActualsActualsActualsAdoptedEstimatedAdoptedTotal
Salary & Benefits19,356,682$ 19,509,657$ 20,348,155$ 20,950,684$ 20,623,744$ 21,206,764$ 58.3%
Operating Expenses5,940,791 5,828,392 6,194,176 6,903,251 7,636,294 6,914,147 19.0%
Fixed Assets 3,140,811 1,900 42,612 - - - 0.0%
Grants & Awards 228,850 243,237 168,135 182,620 178,420 160,790 0.4%
Debt Service931,371 1,354,882 2,094,852 1,963,971 1,963,971 1,935,578 5.3%
Internal Service Charges 3,240,600 3,040,852 3,139,280 3,379,762 3,347,926 3,423,258 9.4%
Total Expenditures 32,839,105$ 29,978,920$ 31,987,210$ 33,380,288$ 33,750,355$ 33,640,537$
Fund Transfers Out:825,000$ 786,525$ 2,292,802$ 1,900,000$ 1,951,313$ 2,754,399$ 7.6%
Total Exp & Transfers Out33,664,105$ 30,765,445$ 34,280,012$ 35,280,288$ 35,701,668$ 36,394,936$ 100.0%
PROPOSED
C - 21
GENERAL FUND TAX REVENUES
CITIES OF SANTA CLARA COUNTY – TAX REVENUES PER CAPITA
TO BE UPDATED
FY 2010/11 Tax Revenue Amounts and Per Capita*
* Latest fiscal year for which data is available
CitiesPopulationAmountPer CapitaAmountPer CapitaAmountPer CapitaAmountPer Capita
Campbell39,66415,836,085$ 399$ 10,524,344$ 265$ 2,031,585$ 51.22$ 218,253$ 6$
Cupertino58,30212,954,000 222 14,539,000 249 2,537,000 44 686,000 12
Gilroy52,0279,097,823 175 12,820,172 246 889,124 17 543,142 10
Los Altos28,86312,793,603 443 2,587,889 90 1,517,579 53 399,461 14
Los Altos Hills7,9223,393,604 428 60,608 8 - - 173,669 22
LOS GATOS29,4137,270,325 247 9,971,409 339 923,783 31 1,136,511 39
Milpitas66,79016,654,635 249 16,994,002 254 6,253,501 94 311,451 5
Monte Sereno3,9001,137,621 292 10,079 3 - - 43,501 11
Morgan Hill38,3096,334,456 165 5,604,863 146 937,616 24 165,451 4
Mountain View74,72325,141,877 336 15,501,602 207 3,913,357 52 244,825 3
Palo Alto64,41729,156,000 453 20,746,000 322 8,082,000 125 - -
San Jose959,000194,814,000 203 137,970,000 144 18,102,000 19 36,811,000 38
Santa Clara118,16920,867,045 177 35,884,898 304 9,910,031 84 812,895 7
Saratoga30,1958,026,659 266 990,579 33 184,362 6 310,273 10
Sunnyvale141,09942,356,100 300 29,228,078 207 6,589,447 47 1,494,340 11
Average114,186 27,055,589$ 237$ 20,895,568$ 183$ 4,124,759$ 36$ 2,890,051$ 25$
Property TaxSales TaxOccupancy TaxBusiness License Tax
PROPOSED
C - 22
GENERAL FUND TAX REVENUES
BUDGET WITH 10 YEAR HISTORY
Sum of Key Change from
RevenuesPrior Year
2002/03Actuals4,977,119$ 6,928,817$ 713,064$ 1,003,014$ 13,622,014$ 0.8%
2003/04Actuals5,207,381$ 6,914,526$ 829,026$ 1,071,865$ 14,022,798$ 2.9%
2004/05Actuals5,302,061$ 7,904,130$ 868,908$ 1,015,000$ 15,090,099$ 7.6%
2005/06Actuals5,831,822$ 8,655,566$ 1,028,664$ 1,058,642$ 16,574,694$ 9.8%
2006/07Actuals7,036,876$ 9,253,891$ 1,108,257$ 1,176,422$ 18,575,446$ 12.1%
2007/08Actuals7,417,030$ 9,345,432$ 1,245,078$ 1,138,057$ 19,145,597$ 3.1%
2008/09Actuals7,057,258$ 8,487,000$ 966,638$ 1,139,107$ 17,650,003$ (7.8%)
2009/10Actuals7,465,871$ 8,317,217$ 923,783$ 1,122,000$ 17,828,871$ 1.0%
2010/11Actuals7,289,897$ 9,971,409$ 1,004,659$ 1,136,511$ 19,402,476$ 8.8%
2011/12 Actuals7,532,073$ 9,889,100$ 1,174,485$ 1,077,320$ 18,196,717$ (6.2%)
2012/13Estimated7,868,034$ 7,442,865$ 1,000,000$ 1,286,510$ 17,597,409$ (9.3%)
2013/14Budgeted7,786,976$ 7,797,615$ 1,015,000$ 1,361,510$ 17,961,101$ (1.3%)
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.
EstimatedRevenues Expenditures Fund Balance Estimated
July 1, 2013SourcesJune 30, 2014
Balance(Uses)Balance
Reserved Fund Balance
Reserve for Long Term Notes-$ -$ -$ -$ -$
Advance to RDA-$ - - - -
Unreserved Fund Balance
Undesignated Reserves
Plus Appropriated Designated Reserves 1,640,890 33,726,739 36,394,936 1,113,510 86,204
Undesignated /Available-
Designated Reserves-
Manager's Contingency- - - - -
Designated Productivity100,000 - - - 100,000
Open Space Reserve562,000 - - - 562,000
GASB Market Fluctuations- - - -
Sustainability Reserve- - - - -
Economic Uncertainty Reserve4,178,192 - - - 4,178,192
Year End Savings/Budget Amendments490,000 - - 490,000
Capital / Special Projects5,313,691 - - (1,113,510) 4,200,181
Authorized Carryovers- - - - -
Actuarial400,000 - - - 400,000
Operating Grants140,553 - - - 140,553
Special Studies490,000 - - - 490,000
Budget Stabilization Reserve6,721,808 - - - 6,721,808
Vasona Land Sale1,645,329 - - 1,645,329
21,682,463$ 33,726,739$ 36,394,936$ -$ 19,014,267$
Use of / Addition to GF Reserves:
Total Use of and Addition To Reserves
PROPOSED
C - 24
SCHEDULE OF INTERFUND TRANSFERS
FISCAL YEAR 2012/13 & 2013/14
EstimatedAdopted Budget
2012/132012/132013/142013/14
Fund DescriptionTransfers InTransfers OutTransfers InTransfers Out
General Funds
General Fund592,920$ 1,951,313$ 816,737$ 2,754,399$
Special Revenue Funds
Solid Waste Management- - - -
HCD Housing Rehabilitation- - - -
HCD-Community Dev Block Grant- 169,270 - 60,000
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 - 90,000
Management Information Systems- - - 5,000
Office Stores Fund- - - -
Equipment Fund- - - 194,000
Vehicle Maintenance Fund- - - -
Facilities Maintenance Fund- 5,820 - 210,000
Trust & Agency Funds
Barbara J. Cassin Trust- 20,000 - 54,817
Capital Project Funds
GFAR1,907,608 102,000 2,893,746 102,000
Grant Funded CIP Projects169,270 - 60,000 -
Storm Drain #1- - - -
Storm Drain #2- - - -
Storm Drain #3- - - -
Traffic Mitigation- 10,000 - 10,000
Construction Utility Underground- - - -
Gas Tax - Street & Signal- 106,000 - 106,000
Successor Agency of the Los Gatos RDA Funds
SA - Administration- - - -
SA - Debt Service - - - -
SA - Low / Moderate Housing - - - -
SA - Recognized Obligation Retirement- - - -
49,525 250,000 70,653 250,000
- - - -
Total Transfers 2,719,323$ 2,719,323$ 3,841,136$ 3,841,136$
PROPOSED
C - 25
FUND BALANCE ACTIVITY SUMMARY
FISCAL YEAR 2013/14
6/30/13PlusLess6/30/14
EstimatedRevenues &TransferExpenditures &TransfersUse of Estimated
Fund BalanceCarryforwardsInCarryforwardsOutReservesFund Balance
GENERAL FUND
Unreserved Fund Balances
Undesignated Reserves
Available to be Appropriated1,640,890$ 32,910,002$ 816,737$ 33,640,538$ 2,754,399$ 1,113,510$ 86,204$
Reserved Fund Balances
Reserve for Encumbrances- - - - - - -
Reserve for Long Term Notes- - - - - - -
Advance to RDA- - - - - - -
Actuarial- - - - - - -
Designated Reserves
Authorized Carryforwards- - - - - - -
Manager's Contingency- - - - - - -
Designated Productivity100,000 - - - - - 100,000
Catastrophic Reserve4,178,192 - - - - - 4,178,192
Budget Stabilization Reserve6,721,808 - - - - 6,721,808
Capital / Special Projects5,313,691 - - - - (1,113,510) 4,200,181
Open Space Reserve562,000 - - - - - 562,000
GABS Market Flucation- - - - - - -
YE Savings/Budget Amendment490,000 - - - - - 490,000
Post Retirement Medical400,000 - - - - - 400,000
Vasona Land Sale1,645,329 - - - - 1,645,329
Operating Grants140,553 - - - - - 140,553
Secial Studies490,000 - - - - - 490,000
Total General Fund21,682,463$ 32,910,002$ 816,737$ 33,640,538$ 2,754,399$ -$ 19,014,267$
SPECIAL REVENUE FUNDS
Solid Waste Fund-$ -$ -$ -$ -$ -$ -$
Housing Conservation Program37,183 8,689 - - - - 45,872
Community Dev Block Grant2,507 60,000 - - 60,000 - 2,507
Urban Run-Off Source Fund 248,035 332,000 - 359,045 - - 220,990
Blackwell Assessment District6,608 3,214 - 3,142 460 - 6,220
Kennedy Assessment District30,630 10,541 - 3,730 1,510 - 35,931
Gemini Assessment District16,548 4,284 - 1,841 610 - 18,381
Santa Rosa Assessment District55,397 5,054 - 3,477 660 - 56,314
Vasona Assessment District28,814 9,975 - 4,012 1,430 - 33,347
Hillbrook Assessment District7,143 5,986 - 3,544 250 - 9,335
Total Special Revenue Funds432,865$ 439,743$ -$ 378,791$ 64,920$ -$ 428,897$
Fiscal Year 2013/14 Adopted Budget
General Fund Undesignated Reserves reflects ongoing revenue, carryforward, transfer, and expenditure activity, the net effect of the change in Designated Reserves, and the use of Undesignated
Reserves.
General Fund Designated Reserve changes reflect: the Manager Contingency Reserve utilized each year to fund unbudgeted appropriations demeed worthwhile (reserve is replenished at the end of the
fiscal year as funding allows), a transfer from Capital and Special Projects Reserve to the Capital Improvement Program. Year-end excess of revenues over expenditures are programmed equally to the
Designated for Capital and Special Projects Reserve and the Revenue Stabilization Reserves.
PROPOSED
C - 26
FUND BALANCE ACTIVITY SUMMARY
FISCAL YEAR 2013/14
INTERNAL SERVICE FUNDS
ABAG Self Insurance1,396,050$ 503,815$ -$ 699,926$ -$ -$ 1,199,939$
Worker's Comp Self Insurance2,165,383 655,549 - 668,607 90,000 - 2,062,325
Management Information Systems2,339,983 1,023,191 - 1,135,911 5,000 - 2,222,263
Office Stores Fund 137,262 117,000 - 143,150 - - 111,112
Equipment Replacement3,267,235 473,929 - 349,304 194,000 - 3,197,860
Vehicle Maintenance533,405 528,600 - 528,466 - - 533,539
Facilities Maintenance1,153,527 1,222,014 - 1,262,018 210,000 - 903,523
Total Internal Service Reserves10,992,845$ 4,524,098$ -$ 4,787,382$ 499,000$ -$ 10,230,561$
TRUST & AGENCY
Friends of the Library-$ -$ -$ -$ -$ -$ -$
Library Trust4,048 36,784 - 28,350 - - 12,482
Library History Project2,780 2,020 - 2,000 - - 2,800
Ness Trust Bequest190,638 1,500 - 10,000 - - 182,138
Betty McClendon Trust99,031 700 - 10,000 - - 89,731
Barbara J Cassin Trust465,962 5,000 - 75,000 54,817 - 341,145
Parking District #88241,263 - - 140,366 - - 100,897
Total Trust & Agency Reserves1,003,722$ 46,004$ -$ 265,716$ 54,817$ -$ 729,193$
CAPITAL PROJECTS FUNDS
GFAR4,164,629$ 440,000$ 2,893,746$ 3,238,999$ 102,000$ -$ 4,157,376$
GFAR - Designated for Parking 1,460,210 - - - - - 1,460,210
Grant Funded CIP Projects(81,489) 476,869 60,000 536,869 - - (81,489)
Storm Drain #1327,994 48,120 - - - - 376,114
Storm Drain #2796,337 53,000 - - - - 849,337
Storm Drain #3(59,989) 4,000 - - - - (55,989)
Traffic Mitigation152,198 800,000 - 10,000 10,000 - 932,198
Construction Tax-Undergrounding2,511,322 45,000 - - - - 2,556,322
Gas Tax268,090 833,290 - 935,000 106,000 - 60,380
Total Capital Projects Funds9,539,302$ 2,700,279$ 2,953,746$ 4,720,868$ 218,000$ -$ 10,254,459$
Successor Agency of the Los Gatos RDA Funds
SA- Trust Fund3,081,655 4,124,556 70,653 3,945,066 250,000 - 3,081,798
Total Successor Agency of the Los Gatos RDA Reserv3,081,655$ 4,124,556$ 70,653$ 3,945,066$ 250,000$ -$ 3,081,798$
Equipment Replacement Fund Balance is the accumulation of replacement funding-to-date for assets. Revenues are the pro-rated annual charges to departments for asset replacement, and expenditures
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 replacement
costs and have been identified as no longer being part of the Replacement Schedule.
Trust and Agency Fund Balances reflect the spending down of Fund Balance for new Library Facility.
GFAR. Grant Fund, Storm Drain Funds, and Gas Tax Fund Balances reflect the spending down of available funds in FY 2011/12, in line with the planned Capital Improvement Program. The GFAR
and Grant Funds also include transfers-in to fund these planned projects.
Traffic Mitigation Fund reflects a transfer out of $10,000 for estimated annual administration fees.
Grant Funded Projects Fund Balance reflects appropriations for incoming revenues and prior year carryforwards, which will result in either positive or negative fund balance depending on timing of
receipts and budget. All grant projects net to zero at completion.
PROPOSED
C - 27
FUND BALANCE RESERVES
5 YEAR COMPARATIVE BALANCES
6/30/20106/30/20116/30/20126/30/20136/30/2014
ActualActualActualEstimatedBudgeted
Fund Balance ReservesYE BalanceYE BalanceYE BalanceYE BalanceYE Balance
GENERAL FUND
Reserved Fund Balances
Reserve for Encumbrances-$ -$ -$ -$ -$
Reserve for Long Term Notes- - - - -
Advance to RDA1,500,000 1,500,000 - - -
Actuarial- - -
Unreserved Fund Balances
Undesignated Reserves
Available to be Appropriated- - 1,494,926 1,640,890 86,204
Designated Reserves
Authorized Carryforwards127,340 5,815 - -
Manager's Contingency- - - - -
Designated Productivity100,000 100,000 100,000 100,000 100,000
Catastrophic Reserves3,678,001 3,678,001 4,178,192 4,178,192 4,178,192
Budget Stabilization Reserve6,217,532 7,863,931 6,721,808 6,721,808 6,721,808
Capital / Special Projects4,545,098 5,718,997 7,265,004 5,313,691 4,200,181
Open Space Reserve562,000 562,000 562,000 562,000 562,000
GABS Market Flucation526,525 247,705 - - -
YE Savings/Budget Amendment- - 490,000 490,000 490,000
Post Retirement Medical400,000 400,000 400,000 400,000 400,000
Vasona Land Sale2,991,589 2,834,779 1,645,329 1,645,329 1,645,329
Operating Grants190,553 140,553 140,553 140,553 140,553
Special Studies- 255,000 490,000 490,000 490,000
Total General Fund Reserves20,838,638$ 23,306,781$ 23,487,812$ 21,682,463$ 19,014,267$
SPECIAL REVENUE FUNDS
Solid Waste Fund-$ -$ -$ -$ -
Housing Conservation Program182,654 8,438 28,064 37,183 45,872
Community Dev Block Grant2,650 (90,470) 2,507 2,507 2,507
Urban Run-Off Source Fund 40,204 58,143 76,536 248,035 220,990
Blackwell Assessment District4,705 5,437 5,747 6,608 6,220
Kennedy Assessment District19,539 20,131 26,213 30,630 35,931
Gemini Assessment District11,078 12,288 14,715 16,548 18,381
Santa Rosa Assessment District54,953 53,068 54,284 55,397 56,314
Vasona Assessment District13,378 18,323 24,200 28,814 33,347
Hillbrook Assessment District1,969 2,264 4,759 7,143 9,335
Total Special Revenue Funds331,130$ 87,622$ 237,025$ 432,865$ 428,897$
INTERNAL SERVICE FUNDS
ABAG Self Insurance2,078,635$ 2,066,068$ 1,595,140$ 1,396,050$ 1,199,939
Worker's Comp Self Insurance2,725,375 2,809,884 2,300,638 2,165,383 2,062,325
Management Information Systems2,210,653 2,265,502 2,473,345 2,339,983 2,222,263
Office Stores Fund 256,357 245,645 206,570 137,262 111,112
Equipment Replacement3,096,960 3,093,890 3,133,400 3,267,235 3,197,860
Vehicle Maintenance428,529 438,816 521,709 533,405 533,539
Facilities Maintenance820,170 953,445 1,020,685 1,153,527 903,523
Total Internal Service Reserves11,616,679$ 11,873,250$ 11,251,487$ 10,992,845$ 10,230,561$
PROPOSED
C - 28
FUND BALANCE RESERVES
5 YEAR COMPARATIVE BALANCES
6/30/20106/30/20116/30/20126/30/20136/30/2014
ActualActualActualEstimatedBudgeted
Fund Balance ReservesYE BalanceYE BalanceYE BalanceYE BalanceYE Balance
TRUST & AGENCY
Friends of the Library-$ -$ -$ -$ -
Library Trust53,623 51,937 30,719 4,048 12,482
Library History Project851 58 752 2,780 2,800
Ness Trust Bequest188,718 191,179 189,138 190,638 182,138
Betty McClendon Trust96,069 97,320 98,331 99,031 89,731
Barbara J Cassin Trust- 666,252 540,290 465,962 341,145
Parking District #88326,358 324,857 311,722 241,263 100,897
Total Trust & Agency Reserves 665,619$ 1,331,603$ 1,170,952$ 1,003,722$ 729,193$
CAPITAL PROJECTS FUNDS
GFAR21,928,473$ 11,841,357$ 5,751,786$ 4,164,629$ 4,157,376
GFAR - Designated for Parking 1,972,000 1,460,210 1,460,210 1,460,210 1,460,210
Grant Funded CIP Projects474,646 35,827 (671,281) (81,489) (81,489)
Storm Drain #1201,328 284,346 440,984 327,994 376,114
Storm Drain #2571,981 657,314 749,937 796,337 849,337
Storm Drain #3(50,600) (75,204) (74,289) (59,989) (55,989)
Traffic Mitigation79,233 79,232 126,032 152,198 932,198
Construction Tax-Undergrounding2,323,015 2,385,666 2,450,322 2,511,322 2,556,322
Gas Tax359,469 73,264 193,300 268,090 60,380
Total Capital Projects Funds27,859,545$ 16,742,012$ 10,427,001$ 9,539,302$ 10,254,459$
SUCCESSOR AGENCY TO THE LOS GATOS RDA
SA - Administration1,409,012$ 1,243,048$ -$ -$ -$
SA - Debt Service 7,419,222 1,454,310 - - -
SA - Low / Moderate Housing 5,140,056 - - - -
SA - Trust Fund- - 3,397,556 3,081,655 3,081,798
Total Redevelopment Reserves 13,968,290$ 2,697,358$ 3,397,556$ 3,081,655$ 3,081,798$
TOTAL RESERVES75,279,901$ 56,038,626$ 49,971,833$ 46,732,852$ 43,739,175$
PROPOSED
C - 29
DEPARTMENT REVENUES
BY PROGRAM
2009/102010/112011/122012/132012/132013/14
ActualsActualsActualsAdoptedEstimatedAdopted
Town Offices
1101Town Council-$ -$ -$ -$ -$ -$
1102Town Clerk - Elected- - - - - -
1103Town Treasurer- - - - - -
1055Town Clerk- - - - - -
1301Town Attorney4,000 3,195 12,943 - 3,707 5,000
1302ABAG - Self Insurance Fund491,082 500,056 513,165 501,292 487,061 503,815
Total Town Offices495,082$ 503,251$ 526,108$ 501,292$ 490,768$ 508,815$
Administrative Services Department
1201Non-Departmental22,754,051$ 24,900,589$ 25,573,554$ 24,181,119$ 23,230,966$ 23,559,189$
2101Town Manager Administration- - 12,377 5,500 118,774 -
2103Housing Program13,191 20,496 19,720 5,029 9,119 8,689
2104HCD Housing Rehab49,945 136,960 - 274,079 182,364 60,000
2201Human Resources- - 6,635 - - -
2202Workers' Compensation Fund648,890 655,734 841,678 659,429 640,638 655,549
2301Finance & Administrative Services1,941,466 1,612,317 1,338,604 1,745,076 1,708,189 1,839,480
2302Office Stores Fund119,598 113,541 91,755 127,500 64,400 117,000
2303Parking Assessment District144,182 146,039 135,074 138,090 72,671 -
2401Clerk Administation- - - - - -
2501Management Information Systems1,002,319 984,426 1,031,659 1,020,673 1,045,673 1,023,191
2801Operating Grant- - 17,539 - - -
2802Obesity Grant- - - 19,653 15,312 -
2999Pass Thru Accounts- - - 13,254 13,254 21,254
Total Administrative Services26,673,642$ 28,570,102$ 29,068,595$ 28,189,402$ 27,101,360$ 27,284,352$
Community Development
3101Administration-$ -$ -$ -$ -$ -$
3201Developmental Review761,510 629,647 800,726 599,570 741,166 687,000
3202Advanced Planning411,148 303,105 306,522 340,000 340,000 341,000
3301Inspection Services1,279,819 1,454,572 1,573,207 1,456,000 1,894,637 1,825,000
3401Code Compliance1,900 63,303 600 1,000 100 500
3501BMP Housing Program107,186 71,367 96,231 128,243 376,215 190,079
3999Pass Thru Accounts949,711 586,052 683,061 670,500 626,500 707,500
Total Community Development3,511,274$ 3,108,046$ 3,460,347$ 3,195,313$ 3,978,618$ 3,751,079$
Police Department
4101Administration29,332$ 60,201$ 37,217$ 10,000$ 37,310$ 16,700$
4201Records & Communication12,221 21,583 13,319 12,200 10,500 10,500
4202Personnel & Community Services246,943 281,875 325,666 352,450 379,450 449,450
4301Patrol686,259 711,187 711,322 598,710 623,593 679,817
4302Traffic531,554 417,270 464,252 388,453 392,589 405,350
4303Investigations10,482 10,666 31,519 575 4,402 3,700
4304Parking Program590,405 636,278 759,101 675,340 614,819 678,340
4800Grants Program - Police17,130 - 70,038 - 93,643 62,500
4999Pass Thru Accounts10,140 18,580 10,262 9,000 675,198 9,000
Total Police Department2,134,466$ 2,157,640$ 2,422,696$ 2,046,728$ 2,831,504$ 2,315,357$
PROPOSED
C - 30
DEPARTMENT REVENUES
BY PROGRAM
2009/102010/112011/122012/132012/132013/14
ActualsActualsActualsAdoptedEstimatedAdopted
Parks & Public Works
5101Administration-$ -$ -$ -$ -$ -$
5201Engineering Program Services- - - - - -
5202Engineering Development Srvcs415,297 466,075 759,472 499,800 613,538 614,800
5203Non-Point Source Fund135,000 135,000 135,000 502,000 502,000 332,000
5301Park Services198,742 237,006 256,963 187,275 187,707 203,275
5302Environmental Services48,891 30,739 39,296 50,660 130,211 135,154
5401Street & Signals9,943 2,602 2,119 - 142,812 137,399
5402Equipment Replacement380,685 369,525 536,004 439,532 528,780 473,929
5403Vehicle Maintenance624,500 488,689 540,731 544,325 544,325 528,600
5404Facilities Maintenance1,011,096 981,771 1,090,219 1,138,086 1,201,712 1,222,014
5405Property Damage82,107 56,747 112,434 50,000 1,005 50,000
5501Lighting & Landscape Districts35,709 39,158 39,331 39,348 39,054 39,054
5999Pass Thru Accounts129,432 91,483 175,624 230,000 280,551 230,000
8011GFAR16,974,248 449,670 651,047 532,073 524,917 440,000
8021Grant Funded CIP Projects2,377,868 1,552,778 (14,895) 2,047,247 1,147,247 476,869
8031Storm Drain #139,962 83,018 157,078 48,120 128,855 48,120
8032Storm Drain #261,285 85,333 92,622 53,420 46,400 53,000
8033Storm Drain #32,665 86 916 1,000 14,300 4,000
8041Traffic Mitigation60,429 210,655 1,178,657 1,936,474 1,146,899 800,000
8042Utility Undergrounding68,766 62,652 69,363 51,250 61,000 45,000
8051Gas Tax - Street & Signals505,042 734,341 876,036 834,560 830,790 833,290
Total Parks & Public Works23,161,667$ 6,077,328$ 6,698,017$ 9,185,170$ 8,072,103$ 6,666,504$
Community Services
6101Administration-$ -$ -$ -$ -$ -$
6201Neighborhood Center14,555 65,203 - - - -
6204Arts & Culture31,108 5,746 - - - -
6205Community Grants- - - - - -
6303AB2020 Beverage Container5,000 8,344 - - - -
6999Pass Thru Accounts1,255 - - - - -
Total Community Services51,918$ 79,293$ -$ -$ -$ -$
Library
7101Administration15,413$ 12,056$ 2,741$ 7,800$ 5,953$ 6,015$
7201Adult Services- - - - - -
7202Children's Services- - - - - -
7203Acquisitons & Cataloging4,813 3,391 3,095 3,000 4,000 4,000
7204Circulation Services51,330 34,655 32,882 32,500 37,300 38,000
7301Library Trust20,601 16,905 886 15,858 26,579 36,784
7302Clelles Ness Bequest Trust3,710 2,461 1,959 1,500 1,500 1,500
7303Library History Project1,076 2,641 695 1,001 2,028 2,020
7304Betty McClendon Trust1,890 1,251 1,011 700 700 700
7305Barbara J Cassin Trust- 666,252 32,379 5,000 5,672 5,000
Total Library98,833$ 739,612$ 75,648$ 67,359$ 83,732$ 94,019$
Successor Agency to the Los Gatos RDA
9101SA - Administration5,951$ 4,250$ 3,598$ 5,000$ -$ -$
9201SA - Debt Service 7,381,820 6,867,638 3,336,122 - - -
9202 DEBT FOR 1992 COPs249,271 253,149 252,125 21,000 - -
9204 DEBT FOR 2002 COPs682,100 678,575 656,769 679,146 - -
9205 DEBT TO 2010 COPS- 423,161 1,163,451 1,263,825 - -
9301SA - Low / Moderate Housing 1,871,264 1,712,380 1,945,064 - - -
9302Ditto Lane- 22 3,462 - - -
9401SA - Recognized Obligation Retirem- - - 2,196,171 - -
9402SA- Housing Trust Others- - 16,644,334 - - -
9403SA- Admin Services- - - - 250,000 250,000
9404SA- Debt to 2002 COP- - - - 1,360,092 1,358,104
9405SA-Debt to 2010 COP- - - - 2,529,250 2,516,452
9406SA- Debt to 1992 COP- - - - 21,000 -
Total SA to the Los Gatos RDA10,190,406$ 9,939,175$ 24,004,925$ 4,165,142$ 4,160,342$ 4,124,556$
Transfers In1,858,951 2,023,755 3,336,664 6,952,298 2,719,323 3,841,136
Carryforward of CIP Grant Revenue
Total Revenues by Department:68,176,239$ 53,198,202$ 69,593,000$ 54,302,704$ 49,437,750$ 48,585,818$
PROPOSED
C - 31
DEPARTMENTAL EXPENDITURES
BY PROGRAM
2009/102010/112011/122012/132012/132013/14
ActualsActualsActualsAdoptedEstimatedAdopted
Town Offices
1101Town Council160,202$ 163,447$ 188,334$ 211,516$ 185,313$ 201,104$
1102Town Clerk - Elected- - - - - - -
1103Town Treasurer- - 112 - - - -
1055Town Clerk- - - - - - -
1301Town Attorney251,667 197,716 215,794 225,452 - 227,121 230,327
1302ABAG - Self Insurance Fund504,147 512,623 984,093 652,249 686,151 699,926
Total Town Offices916,016$ 873,786$ 1,388,333$ 1,089,217$ 1,098,585$ 1,131,357$
Administrative Services Department
1201Non-Departmental5,823,651$ 3,685,138$ 5,014,690$ 5,402,805$ 5,128,253$ 4,962,271$
2101Town Manager Administration673,498 640,189 986,319 1,085,918 1,097,666 1,026,098
2102Community Grants- - 95,253 116,520 115,420 93,590
2103HCD Housing Rehab505,823 194,711 94 12 - -
2104Comm. Development Block Grant47,662 30,604 - 46,358 13,094 -
2201Human Resources390,688 384,982 402,341 396,067 375,445 390,740
2301Finance & Administrative Services1,062,106 1,044,287 994,896 1,083,903 992,546 1,068,347
2401Clerk Administration230,394 225,196 143,443 159,608 139,912 168,729
2402Clerk Services- - - - - -
2801Tobacco Prevention Initiatitves- - 18,808 - - -
2802Obesity Grant- - 399 19,653 4,380 -
2999Pass Through- - - 13,254 13,254 21,254
2202Workers' Compensation Fund506,795 571,225 1,350,924 642,411 675,893 668,607
2302Office Stores Fund126,686 124,253 130,830 143,050 133,708 143,150
2501Management Information Systems967,384 929,576 823,816 1,370,665 1,179,035 1,135,911
2303Parking Assessment District145,884 147,540 148,209 143,526 143,130 140,366
Total Administrative Services10,480,571$ 7,977,701$ 10,110,022$ 10,623,750$ 10,011,736$ 9,819,063$
Community Development
3101Administration106,347$ 133,613$ 139,105$ 153,655$ 141,370$ 213,391$
3201Developmental Review792,228 843,378 874,081 975,195 1,036,655 1,094,554
3202Advanced Planning371,140 295,937 327,132 375,315 303,718 353,919
3301Inspection Services1,159,387 1,018,560 1,068,606 1,127,180 1,094,199 1,191,987
3401Code Compliance26,904 42,958 46,086 47,572 98,115 133,949
3501BMP Housing Program107,187 71,367 96,230 126,261 376,215 190,079
3999Pass Thru Accounts949,706 586,052 684,433 672,108 626,500 707,500
Total Community Development3,512,899$ 2,991,865$ 3,235,673$ 3,477,286$ 3,676,772$ 3,885,379$
Police Department
4101Administration488,663$ 480,932$ 501,637$ 490,740$ 476,388$ 497,890$
4201Records & Communication1,693,890 1,697,338 1,759,534 1,893,735 1,826,168 1,892,670
4202Personnel & Community Services822,623 811,631 851,330 707,190 812,354 565,091
4301Patrol6,297,791 6,492,809 6,530,522 6,499,684 6,671,309 6,891,440
4302Traffic769,632 799,574 834,912 864,326 825,181 863,216
4303Investigations2,138,493 2,175,508 2,146,303 2,230,287 2,107,976 2,031,764
4304Parking Program548,421 627,244 682,732 643,799 651,536 678,545
4800Grants Program - Police14,047 164 123,291 - 97,348 62,500
4999Pass Thru Accounts10,592 18,608 10,932 9,000 675,198 9,000
Total Police Department12,784,152$ 13,103,808$ 13,441,193$ 13,338,761$ 14,143,458$ 13,492,116$
PROPOSED
C - 32
DEPARTMENTAL EXPENDITURES
BY PROGRAM
2009/102010/112011/122012/132012/132013/14
ActualsActualsActualsAdoptedEstimatedAdopted
Parks & Public Works
5101Administration260,813$ 248,423$ 235,284$ 273,844$ 252,906$ 281,773$
5201Engineering Program Services688,241 676,311 806,250 844,964 824,993 865,209
5202Engineering Development Srvcs674,246 637,226 609,870 608,428 658,011 629,549
5203Non-Point Source Fund114,978 117,061 116,608 338,798 330,501 359,045
5301Park Services1,532,274 1,672,635 1,648,261 1,524,715 1,486,826 1,575,917
5302Environmental Services202,880 177,337 158,733 236,531 219,443 297,096
5401Street & Signals1,762,184 1,671,062 1,795,141 1,906,757 1,795,835 1,969,884
5402Equipment Replacement384,737 178,595 496,494 520,201 394,945 349,304
5403Vehicle Maintenance464,303 478,401 457,838 540,532 532,629 528,466
5404Facilities Maintenance899,826 848,496 949,433 1,238,544 1,063,050 1,262,018
5405Property Damage89,996 108,669 11,002 50,000 58,542 50,000
5501Lighting & Landscape Districts28,771 28,358 16,003 29,023 18,912 19,746
5999Pass Thru Accounts129,432 91,482 175,624 230,000 280,551 230,000
8011GFAR5,051,708 11,734,453 8,556,450 14,713,245 3,917,685 3,239,000
8021Grant Funded CIP Projects1,743,648 2,191,072 599,237 1,655,593 726,725 536,869
8031Storm Drain #145,890 - 440 284,560 241,845 -
8032Storm Drain #2- - - - - -
8033Storm Drain #317,180 24,690 - - - -
8041Traffic Mitigation56,604 178,465 1,118,658 1,973,274 1,110,733 10,000
8042Utility Undergrounding208,347 - 4,707 - - -
8051Gas Tax - Street & Signals722,753 914,546 650,000 650,000 650,000 935,000
Total Parks & Public Works15,078,811$ 21,977,282$ 18,406,033$ 27,619,009$ 14,564,132$ 13,138,876$
Community Services
6101Administration109,276$ 134,428$ -$ -$ -$ -$
6201Neighborhood Center292,002 101,650 - - - -
6204Arts & Culture68,004 95,069 (1,025) - - -
6205Community Grants130,063 110,157 - - - -
6303AB2020 Grants15,155 - - - - -
6999Pass Thru Accounts716 - - - - -
Total Community Services615,216$ 441,304$ (1,025)$ -$ -$ -$
Library
7101Administration306,663$ 319,672$ 286,554$ 351,489$ 131,208$ 322,149$
7201Adult Services564,512 496,928 464,878 486,785 650,462 482,598
7202Children's Services374,579 369,331 355,078 441,878 431,753 450,822
7203Acquisitons & Cataloging205,435 152,106 157,653 205,564 180,647 150,193
7204Circulation Services543,381 479,806 546,646 688,593 679,637 795,392
7301Library Trust17,980 18,592 22,103 58,452 53,250 28,350
7302Clelles Ness Bequest Trust- - 4,000 45,000 - 10,000
7303Library History Project3,592 3,434 - 1,810 - 2,000
7304Betty McClendon Trust- - - 50,000 - 10,000
7305Barbara J Cassin Trust- - 158,340 60,000 60,000 75,000
Total Library2,016,142$ 1,839,869$ 1,995,252$ 2,389,571$ 2,186,957$ 2,326,504$
Successor Agency to the Los Gatos RDA
911SA - Administration1,237,563$ 770,215$ 674,163$ 304,470$ -$ -$
921SA - Debt Service 8,307,082 13,587,435 4,282,782 3,910,142 - -
931SA - Low / Moderate Housing 5,362,334 6,852,457 715,520 - - -
9401SA - Recognized Obligation Retirem- - - - - -
9402SA- Housing Trust Others- - 13,246,779 - 295,101 -
9403SA- Admin Services- - - - - 49,525 70,709
9404SA- Debt to 2002 COP- - - - 1,359,892 1,357,904
9405SA-Debt to 2010 COP- - - - 2,529,250 2,516,452
9406SA- Debt to 1992 COP- - - - 42,000 -
Total SA to the Los Gatos RDA14,906,979$ 21,210,107$ 18,919,244$ 4,214,612$ 4,275,768$ 3,945,065$
Total Operating Expenditures60,310,786$ 70,415,722$ 67,494,725$ 62,752,206$ 49,957,408$ 47,738,360$
Transfers Out1,858,951 2,023,755 8,165,068 5,337,706 2,719,323 3,841,136
Carryforward CIP Projects
Total Expenditures by Department:62,169,737$ 72,439,477$ 75,659,793$ 68,089,912$ 52,676,731$ 51,579,496$
PROPOSED
C - 33
SUMMARY OF POSITIONS
DEPARTMENTAL STAFF BY FUND
Authorized2009/102010/112011/122012/132013/14
PositionsFundedFundedFundedFundedFunded
General Fund
Town Council0.85 0.85 0.85 0.85 0.85 0.85
Town Attorney0.85 0.90 0.90 0.85 0.85 0.85
Administrative Services15.23 12.50 12.25 15.10 15.20 15.23
Community Development17.65 17.00 15.05 15.45 17.50 17.65
Police Department56.50 60.00 59.50 59.50 57.00 56.50
Parks & Public Works26.60 29.50 26.80 26.30 26.10 26.60
Community Services - 5.15 3.20 - - -
Library10.30 10.35 8.60 8.60 8.60 10.30
Total General Fund Staff127.98 136.25 127.15 126.65 126.10 127.98
Special Revenue Funds
Parks & Public Works1.00 1.00 1.00 1.00 1.00 1.00
Community Services - 0.05 0.05 - - -
Total Special Revenue Fund Staff1.00 1.05 1.05 1.00 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 Attorney0.65 0.65 0.65 0.65 0.65 0.65
Administrative Services3.65 3.65 3.65 3.70 3.65 3.65
Parks & Public Works3.90 4.50 3.70 3.70 3.90 3.90
Total Internal Services Funds Staff8.20 8.80 8.00 8.05 8.20 8.20
Successor Agency to the Los Gatos RDA
Administrative Services- 0.80 0.80 0.80 - -
Community Development0.10 0.80 0.75 0.75 0.20 0.10
Community Services - 0.05 - - - -
Total Redevelopment Agency Staff0.10 1.65 1.55 1.55 0.20 0.10
Total Town FTEs 137.28 147.75 138.75 138.25 135.50 137.28
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 2013/14
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.
Authorized/Hourly Emp
FundedStaffTotal
Town Staffconverted Budgeted
DepartmentsPositionsto FTEsPositions
Town Council0.85 0.08 0.93
Town Attorney1.50 - 1.50
Administrative Services 18.13 0.66 18.78
Community Development17.50 1.60 19.10
Police Department57.50 1.40 58.90
Parks & Public Works31.50 4.23 35.73
Library10.30 4.42 14.72
Total Positions137.28 12.39 149.67
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.
FY
2009/10
FY
2010/11
FY
2011/12
FY
2012/13
FY
2013/14
Library10.35 8.60 8.60 8.60 10.30
Community Services 5.25 3.25 - - -
Parks & Public Works35.00 32.50 32.00 31.00 31.50
Police Department60.00 59.50 60.50 58.00 57.50
Community Development17.60 15.60 16.00 17.50 17.50
Administrative Services17.20 16.95 18.80 18.05 18.13
Town Attorney1.50 1.50 1.50 1.50 1.50
Town Council0.85 0.85 0.85 0.85 0.85
Total Budgeted FTEs147.75 138.75 138.25 135.50 137.28
PROPOSED
C - 36
SUMMARY OF PERSONNEL CHANGES
FY 2013/14
he Town’s total budgeted labor and benefit costs for FY 2013/14 increased to $22.5 million ($22.2 million
in FY 2012/11) and accounts for 58% of the Town’s General Fund expenditures. Rising health and pension
rates have significantly increased labor costs; however, reduction strategies including vacancy eliminations
and structural reorganization and realignments 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 2013/14 budget assumes that the Town will achieve savings of approximately $326,000 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 2013/14 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 three-tier pension plan was implemented for non-sworn and management employees, changing the
pension formula from 2.5% at 55 to 2% at 60 for new hires after September 15, 2012 or 2% at 62 for “new”
employees hired after January 1, 2013 who were not previously in a public pension system.
A two-tier pension plan was implemented for safety employees, by state law, changing the pension formula
for “new” employee, with no prior service in a public pension system, from 3% at 50 to 2.7% at 57,
effective January 1, 2013.
Negotiations are underway with the Town Employees Association (TEA) to discuss a successor
Memorandum of Understanding (MOU). The TEA labor agreement expired 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 2013/14. Negotiations are underway to do a one-year extension of the existing AFSCME
agreement.
Negotiations are underway to do a one-year extension of the existing Police Officers’ Association (POA)
agreement.
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 2013/14
Pension Plan
In FY 2012/13, a three-tier pension plan was implemented for non-sworn, changing the pension formula from 2.5%
at 55 to 2% at 60 for new hires after September 15, 2012 or 2% at 62 for “new” employees hired after January 1,
2013 who have not previously worked in a public pensions system. Similarly, in FY 2012/13 the State implemented
a new tier for safety employees, changing the pension formula for “new” employees from 3% at 50 to 2.7% at 57,
effective January 1, 2013. While this does not provide immediate cost savings, it is anticipated to reduce future
salary and benefit expenses in the next 10-15 years. 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, PERS has significantly increased contribution rates to cover rising retiree costs and PERS
investment losses sustained in the down economy. In FY 2013/14, the Town’s miscellaneous employee rate will
increase to 21.90%; the safety rate will increase to 40.85%. 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.
In April 2013 the CalPERS Pension and Health Benefits Committee adopted recommendations to modify both the
smoothing and amortization policies and implement these changes going forward with an impact to employer rates
beginning in FY 2015/16. As a result of this change, the smoothing period will change from a 15-year rolling period
to a five-year direct smoothing rate. The amortization period will go from a 30-year rolling period to a 30-year fixed
rate. These changes will require the Town to pay significantly more into the system. Estimates indicate that these
changes will result in the Town paying 34% more in 10 years than it is currently costing the Town today. The Town
will see the highest increase in the first year of implementation (FY 2015/16), with slight increases in year seven and
10. These increased rates will remain at those levels from 2020 on for decades. In addition to these changes,
CalPERS is considering discount rate changes and actuarial assumption changes relating to mortality assumptions.
While these changes are still under consideration, if adopted would be on top of the smoothing and amortization
policy changes.
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
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
FY
18/19
Safety 3% @ 50 33.84%33.58%38.65%39.31%40.85%42.70%44.45%46.20%47.95%48.55%
Misc 2.5% @ 55 14.60%14.43%18.49%19.62%21.89%23.45%25.00%26.55%27.55%28.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
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
FY
18/19
Safety 3% @ 50
Misc 2.5% @ 55
PROPOSED
C - 38
SUMMARY OF PERSONNEL CHANGES
FY 2013/14
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.
Staffing Changes
The FY 2013/14 Operating Budget has 149.67 budgeted positions, including temporary staff. This reflects an
increase of .38 FTE compared to the prior year. The recommended FY 2013/14 staffing levels reflect the following
changes from the prior year’s adjusted budget:
Administrative Services –The Administrative Services budget reflects the net addition of .65 FTE. This
change is due to the reduction and reallocation of the Economic Vitality Coordinator (.50 FTE) to the Town
Manager’s Office as a result of the dissolution of the Los Gatos Redevelopment Agency. However, a
portion of this position will continue to be funded through the Community Development Department. The
budget also reflects the elimination of a vacant Deputy Town Manager position which was under filled by
an Assistant to the Town Manager. In addition, the Assistant Budget/Finance Director position was
vacated and filled at a lower level Finance & Budget Manager level resulting in a cost savings to the Town.
Other organizational restructurings within the Administrative Services Department include the transfer of
.25 FTE hours from the Finance Department to the Human Resources Department to provide Human
Resources with much needed additional staff hours. Also, the Finance Department consolidated a .50 FTE
Budget Analyst position and .65 FTE Account Technician position into a 1.0 FTE Administrative
Technician. Finally, in the Town Manager’s Office a .50 FTE Administrative Technician position was
created, and .02 FTE hours were eliminated from the Office Assistant position.
Library – The Library budget reflects a comprehensive reorganization to realign staffing to meet
dramatically increased customer service use and demands at the new Library, yet still achieves salary,
benefit and operating expenditure savings of $30,000. Specifically, five legacy positions and
classifications are being eliminated, as well as 2.37 FTE’s of temporary staff, to create 10.30 permanent
positions to improve customer service, staff scheduling, and continuity.
Police –The Police Department budget reflects the elimination of the remaining half of a Sergeant position
eliminated mid-way this fiscal year as part of last year’s budget approval. The retired Sergeants duties
have been re-assigned to County Fire, non-sworn staff, and the remaining Sergeants.
PROPOSED
C - 39
SUMMARY OF PERSONNEL CHANGES
FY 2013/14
Parks & Public Works (PPW) – The Parks and Public works budget reflects an increase of .50 FTE’s which
includes the reclassification of the Parks and Facilities Superintendent Position to a Facilities and
Environmental Services Manager position which is a lower level management position. In addition, and a
.50 FTE Building Inspector position was restored to a 1.0 FTE Engineering Inspector. The .50 FTE
increase is a result of increased revenues from the West Valley Solid Waste Management Authority’s
(WVSWMA) administrative fees. The Engineering inspector will primarily be monitoring stormwater
compliance issues and performing inspections related to private development construction projects.
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 2013/14 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
Authorized2009/102010/112011/122012/132013/14
PositionsFundedFundedFundedFundedFundedComments
Town Attorney1.00 1.00 1.00 1.00 1.00 1.00
Deputy Town Attorney0.50 - - 0.50 0.50 0.50 Position shared with .50 Clerk
Administor position
Legal Admin Assistant- 0.50 0.50 - - -
TOTAL FTEs1.50 1.50 1.50 1.50 1.50 1.50
Town Manager1.00 1.00 1.00 1.00 1.00 1.00
Assistant Town Manager1.00 1.00 1.00 1.00 1.00 1.00
Deputy Town Manager- - - 1.00 1.00 - CY delete 1.0 FTE
Assistant to Town Manager1.00 - - - - 1.00 CY add 1.0 FTE
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 - CY delete 1.0 FTE
Economic Vitality Coordinator0.50 - - - - 0.50 CY add .50 FTE
Office Assistant1.63 - - - 1.65 1.63 CY delete .02 FTE
Office Clerk- 0.90 0.90 1.65 - -
Administrative Technician0.50 - - - - 0.50 CY add .50 FTE
Staff Technician- - - 0.75 - -
TOTAL FTEs6.63 4.90 4.90 7.40 6.65 6.63
Community Services Director- 1.00 1.00 - - -
Administrative Analyst- 0.50 0.50 - - -
Administrative Secretary- 1.00 1.00 - - -
Senior Coordinator- 1.00 - - - -
Volunteer Coordinator- 0.75 0.75 - - -
Secretary I - 1.00 - - - -
TOTAL DEPARTMENT FTEs- 5.25 3.25 - - -
Human Resources Director1.00 1.00 1.00 1.00 1.00 1.00
Administrative Analyst1.00 1.00 1.00 1.00 1.00 1.00
Human Resources Specialist0.25 0.25 - - - 0.25 CY add .25 FTE
TOTAL FTEs2.25 2.25 2.00 2.00 2.00 2.25
Finance & Admin. Director1.00 1.00 1.00 1.00 1.00 1.00
Assistant Budget/Finance Director- - - 1.00 1.00 - CY delete 1.0 FTE
Finance Manager1.00 1.00 1.00 - - 1.00 CY add 1.0 FTE
Accountant/Finance Analyst1.00 1.40 1.40 1.00 1.00 1.00
Payroll Specialist1.00 1.00 1.00 1.00 1.00 1.00
Budget Analyst- - - 0.50 0.50 - CY delete .50 FTE
Administrative Technician 1.00 - - - - 1.00 CY add 1.0 FTE
Account Technician1.35 2.00 2.00 2.00 2.00 1.35 CY delete .65 FTE
TOTAL FTEs6.35 6.40 6.40 6.50 6.50 6.35
TOWN MANAGER'S OFFICE
HUMAN RESOURCES
FINANCE & ADMINISTRATIVE SERVICES
TOWN ATTORNEY'S OFFICE
COMMUNITY SERVICES
PROPOSED
C - 41
TOWN STAFF
POSITIONS BY HOME DEPARTMENT
Authorized2009/102010/112011/122012/132013/14
PositionsFundedFundedFundedFundedFundedComments
Clerk Administrator0.50 1.00 1.00 0.50 0.50 0.50 Position shared with .50 FTE Deputy
Town Attorney position
Deputy Clerk- 0.75 0.75 0.50 0.50 - CY delete .50 FTE
Administrative Technician0.50 - - - - 0.50 CY add .50 FTE
TOTAL FTEs1.00 1.75 1.75 1.00 1.00 1.00
MIS Manager1.00 1.00 1.00 1.00 1.00 1.00
Network Administrator1.00 1.00 1.00 1.00 1.00 1.00
IT Technician0.75 0.75 0.75 0.75 0.75 0.75
TOTAL FTEs2.75 2.75 2.75 2.75 2.75 2.75
Community Development Dir.1.00 1.00 1.00 1.00 1.00 1.00
Asst. Community Dev. Dir.1.00 1.00 - - - 1.00 CY add 1.0 FTE
Deputy Town Manager- 1.00 - - - -
Planning Manager1.00 - 1.00 1.00 1.00 1.00
Building Official1.00 1.00 1.00 1.00 1.00 1.00
Administrative Analyst1.00 0.60 0.60 1.00 1.00 1.00
Executive Assistant1.00 - - - 1.00 1.00
Administrative Secretary- 1.00 1.00 1.00 - -
Administrative Assistant1.00 - - - 1.00 1.00
Secretary III- 1.00 1.00 1.00 - -
Senior Planner2.00 1.00 2.00 2.00 3.00 2.00 CY delete 1.0 FTE
Associate Planner2.00 2.00 1.00 2.00 2.00 2.00
Planner- 1.00 1.00 - - -
Assistant Planner- 1.00 - - - -
Planning Technician 0.50 - 0.50 0.50 0.50 0.50
Building Inspector 4.00 4.00 3.50 3.50 4.00 4.00
Counter Technician 2.00 2.00 2.00 2.00 2.00 2.00
TOTAL FTEs17.50 17.60 15.60 16.00 17.50 17.50
Chief of Police1.00 1.00 1.00 1.00 1.00 1.00
Police Captain2.00 2.00 2.00 2.00 2.00 2.00
Police Sergeant6.00 8.00 8.00 8.00 6.50 6.00 CY delete .50 FTE
Police Corporal 5.00 5.00 6.00 6.00 5.00 5.00
Police Officer24.00 26.00 24.00 24.00 24.00 24.00
Community Outreach 1.00 - - 1.00 1.00 1.00
Community Services Officer4.00 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 Chief1.00 1.00 1.00 1.00 1.00 1.00
Communications Dispatcher7.50 7.00 7.50 7.50 7.50 7.50
Parking Control Officer2.00 2.00 2.00 2.00 2.00 2.00
Police Records Specialist 3.00 3.00 3.00 3.00 3.00 3.00
TOTAL FTEs57.50 60.00 59.50 60.50 58.00 57.50
MANAGEMENT INFORMATION SERVICES
COMMUNITY DEVELOPMENT
POLICE
CLERK ADMINISTRATION
PROPOSED
C - 42
TOWN STAFF
POSITIONS BY HOME DEPARTMENT
Authorized2009/102010/112011/122012/132013/14
PositionsFundedFundedFundedFundedFundedComments
Parks & Public Works Director1.00 1.00 1.00 1.00 1.00 1.00
Asst PPW Dir/Town Engineer1.00 1.00 1.00 1.00 1.00 1.00
Superintendent1.00 1.00 2.00 2.00 2.00 1.00 CY delete 1.0 FTE
Facilities & Environmental Services Mgr1.00 - - - - 1.00 CY add 1.0 FTE
PPW Manager- 1.00 1.00 1.00 - -
PPW Supervisor- 1.00 - - - -
Administrative Analyst1.00 1.00 1.00 1.00 1.00 1.00
Executive Assistant1.00 - - - 1.00 1.00
Administrative Specialist- 1.00 1.00 1.00 - -
Administrative Assistant 2.00 - - - 2.00 2.00
Administrative Secretary- 2.00 1.00 1.00 - -
Secretary III- - 1.00 1.00 - -
Environmental Service Coordinator0.50 - - 0.50 0.50 0.50
Associate Civil Engineer 3.00 3.00 3.00 3.00 3.00 3.00
Assistant Civil Engineer1.00 1.00 1.00 1.00 1.00 1.00
Engineering Technician1.00 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 Inspector1.00 2.00 - - - 1.00 CY add 1.0 FTE
Building Inspector- - 0.50 0.50 0.50 - CY delete .50 FTE
Parks Service Officer1.00 1.00 1.00 1.00 1.00 1.00
Town Arborist1.00 1.00 1.00 1.00 1.00 1.00
Tree Trimmer/High Climber1.00 1.00 1.00 - 1.00 1.00
Lead Parks & Maint. Worker3.00 2.00 3.00 3.00 3.00 3.00
Parks & Maintenance Worker8.00 9.00 8.00 9.00 8.00 8.00
Sweeper Operator1.00 1.00 1.00 1.00 1.00 1.00
Equipment Mechanic1.00 1.00 1.00 1.00 1.00 1.00
Apprentice Mechanic- 1.00 - - - -
Facility Technician- 1.00 1.00 - - -
TOTAL DEPARTMENT FTEs31.50 35.00 32.50 32.00 31.00 31.50
Library Director- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE
Assistant Library Director- 1.00 - - - -
Town Librarian2.00 - - - - 2.00 CY add 2.0 FTE
Library Manager- - - 2.00 2.00 - CY delete 2.0 FTE
Principal Librarian- 2.00 2.00 - - -
Librarian2.55 2.25 2.25 2.25 2.25 2.55 CY add .30 FTE
Circulation Supervisor- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE
Library Technology Specialist1.00 - - - - 1.00 CY add 1.0 FTE
Library Assistant1.50 2.50 1.75 1.75 1.75 1.50 CY delete .25 FTE
Library Speciialist0.75 - - - - 0.75 CY add .75 FTE
Administrative Assistant- - - - 0.60 - CY delete .60 FTE
Customer Service Supervisor1.00 - - - - 1.00 CY add 1.0 FTE
Customer Servicer Specialist1.50 - - - - 1.50 CY add 1.50 FTE
Secretary III- 0.60 0.60 0.60 - -
TOTAL DEPARTMENT FTEs10.30 10.35 8.60 8.60 8.60 10.30
TOTAL TOWN FTEs137.28 147.75 138.75 138.25 135.50 137.28
LIBRARY
PARKS and PUBLIC WORKS DEPARTMENT
PROPOSED
C - 43
TOWN STAFF
POSITIONS BY HOME DEPARTMENT
2009/102010/112011/122012/132013/14
FundedFundedFundedFundedFunded
Town Council5.00 5.00 5.00 5.00 5.00
TOTAL ELECTED OFFICIALS5.005.005.005.005.00
2009/102010/112011/122012/132013/14
Temporary Hours by DepartmentFundedFundedFundedFundedFunded
Town Council175 175 175 175 175
Administrative Services 1,621 2,346 1,848 1,836 1,370 CY 466 hours reduction
Community Development - - 1,620 832 3,328 CY 2496 hours increase
Police Department2,920 2,920 2,920 2,920 2,920
Parks & Public Works 6,780 7,412 8,791 8,791 8,791
Community Services- 255 - - -
Library Department10,093 11,150 10,896 14,120 9,197 CY 4923 hours reduction
Total Temporary Hours by Department21,589 24,258 26,250 28,674 25,781
CONVERTED HOURLY EMPLOYEES10.38 11.66 12.62 13.79 12.39 (1.00 FTE = 2080 hours)
HOURLY EMPLOYEES
ELECTED OFFICIALS
PROPOSED
C - 44