Desk Item bDATE:
TO:
10-c S
MAY 19, 2014
MAYOR AND TOWN COUNCIL
GREG LARSON, TOWN MANAGER
MEETING DATE: 05/19/14
ITEM NO: 6
DESK ITEM b
Vii, l
SUBJECT: OPERATING AND CAPITAL BUDGETS
A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND
CAPITAL BUDGET FOR FISCAL YEAR 2014/15
B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL
IMPROVEMENT PROGRAM FOR FISCAL YEARS 2014 -2019
C. PROVIDE DIRECTION REGARDING ANY CHANGES TO THE FISCAL
YEAR 2014/15 OPERATING AND CAPITAL BUDGET OR THE 2014 -2019
CAPITAL IMPROVEMENT PROGRAM BUDGET
REMARKS:
After the staff report, Addendum, and Desk Item were prepared and distributed, staff received the
attached additional public comment.
Attachments 1 — 8 Previously Received with Staff Report:
1. FY 2014/15 Proposed Operating and Capital Budget (Previously Submitted)
2. FY 2013 — 2019 Proposed Capital Improvement Program Budget (Previously Submitted)
3. Memorandum from Los Gatos Chamber of Commerce dated May 1, 2014
4. Code Compliance Quarterly Report
5. Code Compliance Performance Measures
6. Letter from Silicon Valley Housing Trust, the Silicon Valley Leadership Group, and the
Cities Association of Santa Clara County Requesting Housing Funds
7. Letter from Housing Trust of Silicon Valley Requesting Housing Funds
8. FY 2014/15 List of Town Needs
Attachment 9 Previously Received with prior Desk Item
9. Pass - through Detail
Attachment 10 Received with Desk Item `b':
10. Public Comment
PREPARED BY: GREG LARSON
Town Manager
Reviewed by: Assistant Town Manager Town Attorney Inance
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From: Shiloh Ballard [mailto:sballardasvla.ora]
Sent: Monday, May 19, 2014 12:40 PM
To: Steven Leonardis
Cc: Greg Larson; steveCcbblvdfinancial.com; Carl Guardino; Kevin Zwick
Subject: Boomerang
Hi Steve,
Hope you are well.
I wanted to follow up with you on an item that we talked about briefly during the trip to Washington DC a while
back.
If you recall, I mentioned to you that we are working with a coalition of nonprofits to encourage cities to
dedicate their "one- time" boomerang funds to affordable housing today and to consider the ongoing boomerang
funds as well. These are the former redevelopment agency funds that used to be spent on affordable housing
but were swept by the State.
Our focus today is on the one -time funds because the County will match those funds IF the decision is made
before June 17th. They will also match ongoing boomerang funds but there is no deadline on making a
decision.
One more important point is that the decision the Council makes can be a pledge at this point. The check does
not have to be written today however by making the commitment, the door is kept open for the County to put
that money aside to then be spent in your town on affordable housing purposes.
I plan to be there tonight along with Kevin Zwick of the Housing Trust so we'll see you then. If you have any
questions in the interim, feel free to float them in advance of the meeting.
Thanks!
Shiloh Ballard
Senior Vice President, Housing & Community Development
Silicon Valley Leadership Group
408 -501 -7859
www.svlg.org
Silicon Valley Leadership Group
2001 Gateway Place, Suite 101E
San Jose, CA 95110
Interested in housing advocacy?
Join the HAC!
HOUSING
ACTION COALITION
www.hacscc.ore
ATTACHMENT 10
From: Jane Le Fevre [mailto:Jane.LeFevre(Ouwsv.org]
Sent: Sunday, May 18, 2014 6:20 PM
To: Council
Subject: Please allocate 'boomerang funds'
Dear Mayor Leonardis and Town Councilmembers:
As a concerned Los Gatos resident, I am urging you to allocate your one -time boomerang funds or another funding
source not already dedicated to housing for affordable housing as part of the Fiscal Year 2014 -15 budget. Doing so
would enable Los Gatos to receive one -time matching funds from the County for affordable housing, helping to mitigate
the housing crisis we are currently experiencing locally.
Thank you for your leadership and service to the residents of Los Gatos.
Sincerely,
Jane Le Fevre / Director, Marketing & Communications 1 United Way Silicon Valley
Sobrato Center for Nonprofits — San Jose, 1400 Parkmoor Avenue, Suite 250, San Jose, CA 95126
office: (408) 345-4310 / fax: (408) 345-4301
www.uwsv.org / Facebook / Twitter / Linkedln / YouTube
Be a Part of Visible Change. Get Involved in DAY OF ACTION — JUNE 20, 2014.
On Saturday JUNE 28th, California Clasico: SJ Earthquakes VS LA Galax v. Buy Tickets, Support United Way, Enter to Win a
Signed Jersey!
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May 14, 2014
Mayor Steven Leonardis and Members of the Town Council
Town of Los Gatos
110 E Main St.
Los Gatos, CA 95030
Re:, Fiscal Year 2014 -15 — Housing Boomerang Funds
Dear Mayor Leonardis and Members of the Town Council:
On behalf of those who care about affordable housing, we are writing to enlist your
support in seeking a solution to the affordable housing funding that was lost due to the
elimination of redevelopment. We respectfully request that you set aside a portion of
former redevelopment agency funding for affordable housing, called "boomerang
funds."
As you are well aware, the lack of affordable housing continues to constrain our ability
to create, maintain and grow a healthy and sustainable community. A recently released
report by the National Low Income Housing Coalition says that the hourly wage
needed to rent a two- bedroom apartment in the region is $30. Hourly wages for food
service workers and office support workers is between $10- 20/hour making it
abundantly clear that together, we must continue to find ways to fund and build
affordable homes. Unfortunately, with the dissolution of Redevelopment Agencies
(RDA), the State of California has deprived our communities of a significant funding
source to support the creation of affordable housing. That funding source generated
approximately $1 billion across the State and approximately $64 million in Santa Clara
County.
Cities in Santa Clara County have a long and admirable track record on affordable
housing issues. Policy makers, both present and past, have understood and continue to
recognize affordable housing needs and have responded through progressive housing
policies that provide incentives, advantages, and funding for affordable housing. Sadly,
the regulatory and fiscal environment has changed and we're all now working to cobble
together different methods of regaining the ground that has been lost.
Towards that end, the Cities Association, in partnership with several stakeholder
groups, has put forward the idea of setting aside former redevelopment money for
affordable housing. Of note, this same request was made of the County first and after a
concerted effort by housing advocates, the County agreed, contingent upon a match
from the cities.
There are two sources of funding from redevelopment:
1) Former Redevelopment Tax Increment: Under former redevelopment law,
redevelopment agencies were required to set aside 20% of redevelopment revenues for
affordable housing. We encourage your city to dedicate the equivalent share of former
redevelopment agency property tax revenues to affordable housing along with a factor
that incorporates property tax growth over time. The City of San Francisco, for
example, has already taken this step along with Los Angeles and Fremont. This source
of funds is called "residual" payments and for many cities with redevelopment debt,
does not amount to much in the near term. However, over the long term (10 years and
out) it can begin to add up and provide a significant source of funding for affordable
homes, especially when combined with other strategies already in place or under
consideration.
2) Unencumbered Housing Funds: When redevelopment was eliminated, many cities
had collected redevelopment housing funds that were intended to be spent on
housing. However, some cities had not yet encumbered those funds although they had
every intention of spending them to meet their affordable housing needs. As a one -time
action, a policy should be adopted that returns what were the unencumbered low and
moderate income housing funds. Of the cities that had redevelopment agencies, only 5
had unencumbered funds. Together, when coupled with the County's match, cities
could return almost $20 million to affordable housing, the vast majority of which would
be returned to the City of Santa Clara.
Cities have many critical needs, including affordable housing. The ability to meet these
needs has been made more difficult by the dissolution of redevelopment. We deeply
sympathize with cities that have built the affordable homes to serve the most needy in
our communities. The best way to move forward is for all local governments to commit
resources to this urgent task.
At the upcoming May 19th Town Council budget meeting, we hope you will move
forward with a proposal to use your boomerang funds, or a similar eligible source, for
affordable housing. If the Council agrees to dedicate your one time - boomerang funds or
another reserve fund or funding source not already dedicated to housing, in the amount
of $578,298 for affordable housing, this would enable affordable housing programs in
Los Gatos to access $754,322 in County matched one -time boomerang funds. We urge
you to make boomerang funds one of your priorities and add them to the FY14 -15
budget.
Once again, thank you for your ongoing commitment to affordable housing and we
look forward to working with you to recreate the funding streams and policy tools
needed to meet our housing needs.
Respectfully,
/s/
Shiloh Ballard, Silicon Valley Leadership Group
Kevin Zwick, Housing Trust Silicon Valley
Raania Mohsen, Cities Association of Santa Clara County
Darrell Evora, EMQ Families First
Bob Brownstein, Working Partnerships
Carole Leigh Hutton, United Way Silicon Valley
Patricia Gardner, Silicon Valley Council of Nonprofits
Jenny Niklaus, HomeFirst
Karae Lisle, Innvision Shelter Network
Greg Kepferle, Catholic Charities
Dan Wu, Charities Housing
Jennifer Loving, Destination: Home
Jeff Oberdorfer, First Community Housing
Matt Franklin, MidPen Housing
Dianne Spaulding, Nonprofit Housing of Northern California
Naomi Nakano - Matsumoto, West Valley Community Services
Melissa Morris, Law Foundation of Silicon Valley
Michele Beasley, Greenbelt Alliance
Chris Lepe, TransForm
Tom Myers, Community Service Agency — Mountain View