Desk ItemMEETING DATE: 06/2/14
ITEM NO: 14
DESK ITEM
DATE: JUNE 2, 2014
TO: MAYOR AND TOWN COUNCIL v7
G �/
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION APPROVING THE TOWN OF LOS GATOS FISCAL
YEAR 2014/15 OPERATING BUDGET AND FY 2014/15 — 2018/19 CAPITAL
IMPROVEMENT PROGRAM (CIP), NEW APPROPRIATIONS, AND OTHER
APPROVED ADJUSTMENTS AND MINOR CORRECTIONS.
REMARKS:
After the June 2 Town Council meeting agenda packet was distributed, staff received additional
public comment (attached) and Council questions which are presented and responded to below:
1. Please clarify the difference between the $6.5 million former affordable housing
funds and the $1.2 million returned funds. Is $6.5 the total amount taken and $1.2
the total amount returned? Is the $1.2 all from affordable housing?
The dissolution of redevelopment took reserves from the Town of $6.5 million of 20%
affordable housing funds and $6.8 million of general redevelopment funds, for a total of
$13.3 million. $1.2 million of those total funds (9 %) were subsequently returned to the
Town as General Fund property tax revenues. Only $578,000 of the $1.2 million returned
to the Town is attributable to the $6.5 million of 20% affordable housing funds taken from
the Town.
2. Is $578,000 the maximum amount set by the County that it will match? Confirm
that if the town designates $578,000 the County will match with $754,000 for a total
of $1.332 million.
The County has included up to $754,000 in a designated reserve for affordable housing
projects in Los Gatos. $754,000 represents the County's 12% share that the County .
received of the $6.5 million in former Los Gatos 20% affordable housing taken from Los
Gatos. The combined total for future affordable housing projects in Los Gatos would be
1.3 million.
Reviewed by: _Assistant Town Manager -Wo1'own Attorney
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION APPROVING THE TOWN OF LOS GATOS FISCAL
YEAR 2014/15 OPERATING BUDGET AND FY 2014/15 — 2018/19 CAPITAL
IMPROVEMENT PROGRAM (CIP), NEW APPROPRIATIONS, AND OTHER
APPROVED ADJUSTMENTS AND MINOR CORRECTIONS.
JUNE 2, 2014
3. Confirm that if the town designates $237,000 the County will match with $309,000
for a total of $546,000 designates for affordable housing in LG.
Correct. The County has confirmed that it will proportionately match any Los Gatos
designation of General Funds for affordable housing up to $578,000 for the Town with
$754,000 from the County. If the Town designates $237,000, County staff has indicated
the County will match $309,000, for a combined total of $546,000 available for future
affordable housing projects in Los Gatos.
4. Where is the $1.2 million returned funds (or whatever remains if any of it is set aside
in the special affordable housing account) being deposited? Are there any
restrictions on its use? Please clarify why some of this money would not be used for
the match rather than funds from another account (special studies).
The $1.2 million in total returned funds from the dissolution of redevelopment were
returned to the Town as General Fund revenues without any local or state restrictions for
affordable housing or any other purposes or uses. Pursuant to Council direction at the
January 2013 Capital Projects Funding and Priorities Study Session, all of the returned
one -time redevelopment and other funds were allocated for future high priority capital
projects. The highest priority project specified by Council was the first phase of the $4
million Almond Grove street reconstruction project now scheduled for next year.
This entire project was previously planned to be funded by redevelopment; but after the
dissolution of redevelopment and loss of that funding, the project has now been re-
established through a variety of one -time funds previously presented to Council, including
the $1.2 million of redevelopment funds returned to the town.
The Town could use a portion of the $1.2 million in redevelopment funds returned to the
Town for affordable housing by transferring funding from the Almond Grove or other
capital projects, or from reserves.
In addition, staff has responded to the prior public communications received regarding
pedestrian improvements to Kennedy Road (Staff Report, attachment 3), as follows:
Minor repairs to the walkways and guard rails systems were completed. The walkway is
adjacent to a functional creek and will require a retaining wall element in order for the
sidewalk to match the elevation of Kennedy Road. Therevore, the project design will be
completed next fiscal year (FY 2014/15) with construction occurring in the summer of
2015.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT A RESOLUTION APPROVING THE TOWN OF LOS GATOS FISCAL
YEAR 2014/15 OPERATING BUDGET AND FY 2014/15 — 2018/19 CAPITAL
IMPROVEMENT PROGRAM (CIP), NEW APPROPRIATIONS, AND OTHER
APPROVED ADJUSTMENTS AND MINOR CORRECTIONS.
JUNE 2, 2014
Attachments 1 -3 (previously received with Staff Report)
L Resolution of the Town Council Approving FY 2014 /15 Operating Budget and FY 2014/15 —
FY 2018/19 Capital Improvement Program (CIP)
2. E -mail from Kevin Zwick, Housing Trust Silicon Valley, dated May 29, 2014
3. Public communications received through 12:00 pm, May 29, 2014
Attachment 4
4. Public communications received through 3:00 pm, June 2, 2014
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Greg Larson
From: Shiloh Ballard <sballard @svlg.org>
Sent: Monday, June 02, 2014 8:19 AM
To: Joe Pirzynski; Joe Pircynski; BSpector; Diane McNutt; Steven Leonardis; Marcia Jensen
Cc: Carl Guardino; Greg Larson
Subject: Affordable Housing Dollars - Tonight's Hearing
Dear Mayor and Town Council,
Thank you for your support thus far to allocate boomerang redevelopment funds for affordable housing. As you
know, the need for affordable housing is increasingly acute while our tools for addressing the issue continue to
shrink. County wide efforts such as these to recapture lost dollars for affordable housing are much appreciated.
I won't be able to be at the Council meeting tonight as the same discussion is occurring in Campbell at the same
time, however, a few of our coalition partners plan to be in attendance.
Please let me know if you have any questions in advance. Otherwise, thank you again for your consideration of
this item.
Shiloh Ballard
Senior Vice President, Housing & Community Development
Silicon Valley Leadership Group
408 -501 -7859
www.svlg.or¢
Silicon Valley Leadership Group
2001 Gateway Place, Suite 101 E
San Jose, CA 95110
Interested in housing advocacy?
Join the HAC!
HOUSING
ACTION COALITION
www.haescc.ore
ATTACHMENT 4
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