Loading...
Addendum B�owx of MEETING DATE: 06/02/15 ITEM NO: 8 !p8 GA��S COUNCIL AGENDA REPORT ADDENDUM B DATE: JUNE 1, 2015 TO: MAYOR AND TOWN COUNCIL FROM: LES WHITE, INTERIM TOWN MANA SUBJECT: OPERATING AND CAPITAL BUDGETS A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUGDET FOR FISCAL YEAR 2015/16 B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2015 -2020 C. PROVIDE DIRECTION REGARDING ANY OF THE FOLLOWING CHANGES TO THE FISCAL YEAR 2015/16 OPEARTING AND CAPITAL BUDGET OR THE 2016 -2020 CAPITAL IMPROVEMENT PROGRAM BUDGET: 1. TRANSFER OF $100,000 IN YEAR -END GENERAL FUND SURPLUS TO THE NPDES FUND 2. TRANSFER OF $500,000 FROM THE TOWN'S VEHICLE MAINTENANCE FUND TO THE TOWN'S GENERAL LIABILITY ABAG FUND 3. INCREASE VEHICLE IMPACT FEE REVENUE IN THE GENERAL FUND APPROPRIATED RESERVE (GFAR) BY $136,000 4. ALLOCATION OF ONE -TIME ADDITIONAL FY 2014/15 YEAR END GENERAL FUND SURPLUS TO OFFSET HUMAN SERVICES GRANTS FUNDING GAP OF $31,294 5. ALLOCATION OF ADDITIONAL ONE -TIME FUNDING OF $1,000 FROM FY 2014/15 YEAR END GENERAL FUND SURPLUS TO FUND THE ART DOCENTS OF LOS GATOS 6. ALLOCATION OF ADDITIONAL ONE -TIME FUNDING OF $2,000 FROM FY 2014/15 YEAR END GENERAL FUND SURPLUS TO FUND THE NEW MUSEUMS OF LOS GATOS 7. ALLOCATION OF ADDITIONAL ONE -TIME FUNDING OF $5,600 FROM FY 2014/15 YEAR END GENERAL FUND SURPLUS TO FUND THE ARTS AND CULTURE COMMISSION 8. AUTHORIZATION TO ASSIST THE ARTS AND CULTURE COMMISSION IN DEVELOPING AN UPDATED ARTS PLAN FOR COUNCIL REVIEW AND CONSIDERATION AND FOR STAFF TO Reviewed by: Assistant Town Manager Town Attorney Finance NAMGRWdminWorkFiles\2015 Council ReportsUune 21Budget Addendum B.docx PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: OPERATING AND CAPITAL BUDGETS DATE: JUNE 2, 2015 EXPLORE ALTERNATIVE OPTIONS FOR ONGOING REVENUE SOURCES FOR PUBLIC ART FUNDING 9. AUTHORIZATION TO ADJUST GENERAL FUND EXPENDITURES AND REVENUES BY $164,000 TO FUND AN ENTRY LEVEL OFFICER 10. ALLOCATION OF $300,000 IN FY 2014/15 YEAR END GENERAL FUND SURPLUS TO FUND RESTORATION OF SERVICES AND /OR FUTURE SALARY AND BENEFIT AUGMENTATIONS REMARKS: Over the weekend ending May 31, 2015 staff received a number of additional questions related to the Proposed FY 2015/16 Operating and Capital Budgets. Provided below are responses to Council inquiries for this agenda item. 1. Confirm $2.7 million GFAR funds anticipated at end of this (14/15) fiscal year. Answer: Staff anticipates $2.7 million in General Fund FY 2014115 year -end excess that by Policy would roll into GFAR for allocation during the FY2016117- 2020121 Capita1Improvement Program Budget. Staff recommends that the Town reserve some of this money for future operating costs. 2. Is the 2014/15 GFAR funding included in this coming year's (15/16) CIP funding? Answer: Yes, carryforward funds not expended during the FY 2014115 budget are included in the proposed FY 2015116 budget. 3. Which of the proposed CIP projects for this coming year constitute emergency health and safety issues through June, 2016? Answer: Emergency health and Safety issues are addressed in the retaining walls, street resurfacing and sidewalks, street lights and parking lots projects. Council could elect to reprogram money from the two park projects as well as the PPW Corp yard building which in total would be about $1 million. 4. The budget identifies two head librarians which have been identified as Heidi and Henry. However, I thought that Heidi was employed, at least part-time, in other departments (i.e., personnel). Please clarify. Answer: Ms. Murphy has been assigned to work out -of class on an interim basis assuming the duties of Communications Director on a half -time basis. While still working at the Library, Ms. Murphy is partially funded out of the Manager's Office doing assignments related to communications, social media policy, and Friends of the Library. The Proposed FY 2015116 budget funds two full -time Town Librarians and a Communications Coordinator position. PAGE MAYOR AND TOWN COUNCIL SUBJECT: OPERATING AND CAPITAL BUDGETS DATE: JUNE 2, 2015 5. Police expenditures are increasing approximately $1.8 million (please confirm accuracy). Can you please provide mea (simple) list of where those increased funds are being spent. Answer: The $1.8 million difference referenced is the difference between the forecasted FY 2014/15 year -end estimate and the proposed FY 2015/16 budget. The majority of this, $1.5 million, is in salary savings due to the large number of vacancies in the department. There were at least two significant workers comp injuries leaving staff out for about a year and several positions that were not filled. The Department has had some difficulty recruiting with the on- going discussions of outsourcing. A final piece of this is the Chiefs focus and efforts at reducing and controlling overtime. The actual increase in the PD budget from budgeted FY 2014/15 to Proposed for FY 2015/16 is about $700,000. This includes the 2% negotiated salary increases, an increase of 1.5% in our workers' compensation rates that are charged to the departments, and about $130,000 increase in internal services for things such as our ABAG liability, MIS fund, vehicle maintenance, etc. The proposed budget for PD also shows an increase of $382,000 in operating expenditures. This is almost entirely due to an increase in the realignment pass thru money which the town serves as the fiscal agent for. The offsetting increase in revenue is under "other revenue." The difference in "other revenue" from budgeted FY 2014/15 to the amount we expect to receive in FY 2015/16 is $365,000. It is important to compare FY 2014/15 Adopted Budget to FY 2015/16 Proposed Budget figures to have an equal comparison base. 6. We have a $309,000 affordable housing set aside waiting County buy -in. We have been waiting more than a year. Answer: Staff recommends waiting until the mid -year budget process at which point staff will check project status with the County. 7. I do recall placing the Vasona sale monies in reserve so that they would not be spent as part of the operating budget. Any thoughts on using those funds for Almond Grove? Or? Answer: Staff is concerned that the timing of the project is being pushed in the wet season and therefore potentially may need to be delayed until next spring. The decision to proceed with concrete or change to asphalt may greatly impact the timing of this project and when the work can be scheduled. 8. [Chamber of Commerce] How can we appropriate funds las part of the consent calendar] when we have not adopted the budget? Answer: Item #6 on the June 2, 2015 Council Agenda asks Council to give the Town Manager authority to execute an agreement between the Town and Los Gatos Chamber of Commerce. In PAGE MAYOR AND TOWN COUNCIL SUBJECT: OPERATING AND CAPITAL BUDGETS DATE: JUNE 2, 2015 the Fiscal Impact section of the staff report, staff indicates that funds are available in the Proposed FY 2015116 Budget. If the proposed budget for 2015116 were to be adopted without funds for this agreement with the Chamber, The Manager could choose to not execute the agreement due to lack of sufficient funding. In that event, the Town Manager could bring the agreement forward in FY 15116 with a separate budget amendment as a proposed add to the newly adopted FY 2015116 budget. 9. [Venue] The Boy Scouts want the town to pay for "deferred maintenance." I do not recall any other group making that request. However, any idea if deferred maintenance is necessary and, if so, cost? Answer: In discussions with KCAT, the intent was for KCAT to fund raise at least $300,000 or more to repair the inside of the Venue.