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Addendumtow" of MEETING DATE: 6/16/15 ITEM NO: I q Vi4 �os•��tos COUNCIL AGENDA REPORT ADDENDUM DATE: JUNE 15, 2015 TO: MAYOR AND TOWN COUNCIL FROM: LES WHITE, INTERIM TOWN MANA SUBJECT: TOWN OF LOS GATOS FISCAL YEAR 2015/16 OPERATING BUDGET AND FY 2015/16 — FY 2019/20 CAPITAL IMPROVEMENT PROGRAM (CIP), NEW APPROPRIATIONS, AND OTHER APPROVED ADJUSTMENTS AND MINOR CORRECTIONS RECOMMENDATION: 1. Consider the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year 2015/16 2. Provide direction regarding any of the following changes to the Fiscal Year 2015/16 Operating and Capital Budget or the Fiscal Years 2016 -2020 Capital Improvement Budget: a. Authorization to adjust General Fund expenditures and revenues by $164,000 to fund an entry level Officer b. Authorization to create an Operating Budget Reserve with $300,000 on unspent FY 2014/15 dollars. 3. Adopt resolution approving the Operating Budget for Fiscal Year 2015/16 4. Consider the Town of Los Gatos Proposed Capital Budget for Fiscal Years 2016 -2020 5. Adopt Resolution approving the Capital Improvement Program Budget for Fiscal Years 2016 -202 REMARKS: After June 16, 2015 Council agenda was issued, staff received additional questions related to the Proposed FY 2015/16 Operating and Capital Budget. Provided below is further information to clarify previous responses to Council inquiries on this agenda item. Also provided in Attachment 4 is public communication which was received after the Staff Report was distributed. PREPARED BY: S PEP Y Finance and Adni lstrat�ces Director Reviewed by: Assistant Town Manager 1AATown Attorney Finance NAMGRWdminWorkFiles\2015 Council Reponsdune 16 operatmg and Capital Budget 06_16_15. Addendum.dom PAGE MAYOR AND MEMBERS OF THE TOWN COUNCIL SUBJECT: TOWN OF LOS GATOS FISCAL YEAR 2015/16 OPERATING BUDGET AND FY 2015/16 — FY 2019/20 CAPITAL IMPROVEMENT PROGRAM (CIP), NEW APPROPRIATIONS, AND OTHER APPROVED ADJUSTMENTS AND MINOR CORRECTIONS JUNE 15, 2015 1. In Exhibit A are we approving a deficit in the operating budget? For ease of explanation staff has included the original table presented as "Exhibit A" with a modification highlighting the use of other funding sources as an addition to revenue as shown below: EXHIBIT (REVISED) TOTAL TOWN REVENUES BY FUND AND TOTAL TOWN EXPENDITURES BYU FUND (EXCLUDING CAPITAL PROJECTS FUNDS) FY 15/16 FY 15/16 FY 15/16 Proposed Proposed Proposed Operating Other Sources Total Revenues TOWN REVENUES& OTHER FUNDING SOURCES Budget Use of Fund Balance and Other Sources General Fund $ 37,475,461 $ 400,000 $ 37,875,461 Special Revenue Funds 525,622 66,242 591,864 Internal Service Funds 4,963,261 1,418,476 6,381,737 Trust & Agency Funds 59,911 175,840 235,751 Capital Project Funds Successor Agency Funds 3,989,479 3,989,479 TOTALTOWN REVENUES& OTHER FUNDING SOURCES $ 47,013,734 $ 2,060,558 $ 49,074,292 TOTAL TOWN EXPENDITURES INCLUDING TRANSFERS OUT General Fund Special Revenue Funds Internal Service Funds Trust & Agency Funds Capital Project Funds Successor Agency Funds TOTAL TOWN EXPENDITURES & USE OF FUNDS TOTAL SOURCE (USE OF FUND BALANCES) 37,875,462 591,864 6,381,737 235,750 37,875,462 591,864 6,381,737 235,750 3,989,479 3,989,479 $ 49,074,292 $ - $ 49,074,292 $ (2,060,558)x$ 2,060,558 $ - The first column for Total Proposed Operating Budget appears to show a $2.1 M shortfall of revenues above expenditures. Unfortunately, governmental accounting rules state that fiend balances accumulated in prior years are technically not classified as "revenues" so they were historically not included as operating revenues in the original Proposed Operating Budget table (Exhibit A). This classification problem results in a "phantom" shortfall or deficit whereby only one side (expenditures) of the budget table Exhibit A is presented at the full amount, while operating revenues appear short because they lack the proposed authorized use of fund balances to be included as "revenue." The revised table above better indicates the budget reality. The FY 15/16 Proposed Operating Budget is largely balanced with operating revenues matching operating expenditures, but in some cases the appropriate use of fund balance is required to balance total Sources of Funds with the total Uses of Funds. Examples include $400,000 of General Fund capital reserve fund PAGE MAYOR AND MEMBERS OF THE TOWN COUNCIL SUBJECT: TOWN OF LOS GATOS FISCAL YEAR 2015/16 OPERATING BUDGET AND FY 2015/16 — FY 2019/20 CAPITAL IMPROVEMENT PROGRAM (CIP), NEW APPROPRIATIONS, AND OTHER APPROVED ADJUSTMENTS AND MINOR CORRECTIONS JUNE 15, 2015 balances transferred out of the General Fund to support the FY 15/16 Capital Improvement Plan The largest amount of fund balance use occurs in Internal Service Funds, totaling $1.4M. The use of fund balance in the Internal Service Funds included planned uses of accumulated funds in the Management Information Systems Fund, the Equipment Replacement Fund, and Facilities Maintenance Fund for purchases like the IT Master Plan implementation, ($162K), PD patrol vehicles ($240K) the Parks and Public Works Building Replacement Corp. Yard ($200K), respectively. ABAG General Liability and Worker's Comp Internal Service Funds continues to use fund balance ($260K) and ($440K) respectively because of recent years negative experience with workers compensation claims paid from that fund. Staff increased its internal workers compensation rates and may have to raise them more in the future if this adverse claims experience continues the trend of recent years. Council has already approved staff's recommendation to transfer $500,000 of excess funds in the Town's Vehicle Maintenance Fund to the ABAG General Liability Fund. This transfer will be made as part of the FY 2014/15 financial year -end close. 2. In Exhibit Bare we approving a $2.8M deficit in the capital budget? For ease of explanation staff has included the original table presented as "Exhibit B" with a modification highlighting the use of other funding sources as an addition to revenue as shown below: EXHIBIT A (REVISED) TOTAL TOWN REVENUES BY FUND AND TOTAL TOWN EXPENDITURES BYU FUND (EXCLUDING CAPITAL PROJECTS FUNDS) FY 15/16 FY 15/16 FY 15/16 Proposed Proposed Proposed Operating Other Sources Total Revenues TOWN REVENUES & OTHER FUNDING SOURCES Budget Use (Source) of Fund Balance and Other Sources GFAR $ 1,298,000 $ 2,867,932 $ 4,165,932 Grant Funded Projects Fund 70,000 70,0W Storm Drain Fees Funds 105,120 105,120 Traffic Mitigation 605,000 605,000 Construction Tax Undergrounding Gas Tax TOTAL TOWN REVENUES& OTHER FUNDING SOURCES TOTAL TOWN EXPENDITURES INCLUDING TRANSFERS OUT GFAR Grant Funded Projects Fund Storm Drain Fees Funds Traffic Mitigation Construction Tax Undergrounding Gas Tax TOTAL TOWN EXPENDITURES TOTAL SOURCE (USE OF FUND BALANCES) 60,000 60,000 658,623 47,377 706,000 $ 2,796,743 $ 2,915,309 $ 5,712,052 4,165,932 70,000 4,165,932 70,000 605,000 605,000 28,000 28,000 706,000 706,000 $ 5,574,932 $ - $ 5,574,932 $ (2,778,189) '$ 2,915,309 $ 137,120 PAGE 4 MAYOR AND MEMBERS OF THE TOWN COUNCIL SUBJECT: TOWN OF LOS GATOS FISCAL YEAR 2015/16 OPERATING BUDGET AND FY 2015/16 — FY 2019/20 CAPITAL IMPROVEMENT PROGRAM (CIP), NEW APPROPRIATIONS, AND OTHER APPROVED ADJUSTMENTS AND MINOR CORRECTIONS JUNE 15, 2015 Regarding the original Exhibit B, the revenue shortfall or deficit number of $2.8M results from the use of accumulated fund balance for capital projects. Once again because the use of fund balance in the Capital Projects Funds is technically not a "revenue" but FY 15/16 capital project expenditures are presented in full as 15/16 expenditures in the original Table A it appears that a shortfall or deficit has occurred. The revised table above better indicates a truer picture in that the budgeted capital projects use accumulated fund balances for a funding, which is standard operating procedure for capital projects funds. 3. No specific question received, but staff realized a typographical error occurred in the financial summaries. No financial impact or change to proposed budget numbers is required. The title for Vehicle Maintenance Fund was inadvertently switched to Facilities Maintenance Fund and vice versa affecting three schedules, pages C -3, C -11 and C -13. Corrected revised replacement pages are included in this addendum as Attachment 3. Attachments 1 -2 (Previously received with Staff Report distributed on June 11, 2015): 1. Resolution of the Town Council Approving FY 2015/16 Operating Budget 2. Resolution of the Town Council Approving FY 2015/16 — FY 2019/20 Capital Improvement Program (CIP) Attachments received with this Addendum: 3. Revised Total Budget Activity, Revenues, and Expenditures 4. Public Comments received from 11:01 a.m. June 11, 2015 through 11:00 a.m. June 15, 2015 PROPOSED TOTAL BUDGETED FUND ACTIVITY SUMMARY FY 2015/16 Fstimated Rewnues, Expenditures, Fstinumd Rod Balance nd Balaace PYCarryfndt PYCarryfwds Fund Balance Change 7/1/2015 & Transfers & Transfers 6/30/2016 From PY Operating Funds Governmesual Funds General Fund $ 18,609,197 $ 37,475,461 $ 37,875,462 $ 18,209,196 -2.1% Housing Conservation Program 67,697 - - 67,697 0.0% Conmunily Dev Block Grant - 70,000 70,000 - 0.0% Urban Run -Off Source Fund 82,370 416,684 499,053 1 . 100.0% Blackwell Assessment District 8,265 3,210 2,466 9,009 9.0% Kennedy Assessment District 47,230 10,539 4,719 53,050 12.3% Gemini Assessment District 21,889 4,276 2,166 23,999 9.6% Santa Rosa Assessment District 57,645 4,960 4,200 58,405 1.3% Vasona Assessment District 38,988 9,959 5,466 43,481 11.5% Hillbrook Assessment District 11,367 5,994 3,794 13,567 19.40/a Proprietary Funds - Internal Service Funds ABAG Self Insurance 734,582 529,575 790,094 474,063 -35.5% Worker's Comp Self Insurance 1,107,852 926,884 1,367,951 666,785 -39.8% Management lnforinrion System 2,659,153 1,084,088 1,254,373 2,488,868 -6.40% Office Stores Fund 122,918 95,000 127,150 90,768 -26.2 Equipment Replacement 3,632,677 490,826 739,221 3,384,282 -6.8% Vehicle Maintenance 831,190 571,670 571,670 831,190 0.09/. Facilities Maintenance 444,825 1,265,218 1,531,278 178,765 -59.80/a Total Operating Funds $ 28,477,845 $ 42964,344 $ 44,849,063 $ 26,593,126 -6.6 Trust & Agency Funds Library Trost $ 33,766 $ 57,096 $ 90,750 $ 112 - 99.7% Lbrary History Project - - - - 0.0% Ness Trost Bequest 164,970 1,500 75,000 91,470 44.6% Betty McClendon Trost 86,910 815 10,000 77,725 -10.6% Barbara J Cassin Trust 320,302 500 60,000 260,802 -18.6% Parking District #88 86092 86,492 0.0% Total Trust &Agency Funds $ 692,440 S 59,911 $ 235,750 $ 516,601 -25A% Capital Funds GFAR $ 14,955,113 $ 1,298,000 $ 4,165,932 $ 12,087,181 -19.2% Grant Funded Cm Projects (112,025) 70,000 70,000 (112,025) 0.0% Stonn Drain #1 556,679 48,120 - 604,799 8.6% Storm Drain #2 967,500 53,000 - 1,020,500 5.5% Storm Grant #3 (53,818) 4,000 - (49,818) -7.49/o Traffic Mitigation 178,226 605,000 605,000 178,226 0.0% Construction Tax-Undergmunding 2,747,790 60,000 28,000 2,779,790 1.2% Gas Tax 290,302 658,623 706,000 242,925 - 16.3% Total Capital Projects Funds $ 19,529,767 S 29796,743 $ 5,574,932 $ 16,751,578 -14.2 SuceessorAgency ofthe Los Gatos RDA Funds SA -Trust Fund $ 3,598,283 $ 3,989,479 $ 3,989,479 $ 3,598,283 0.0% Total Successor Agency of the Los Gatos RDA Reserves $ 3,598,283 $ 3,989,479 $ 3,989,479 $ 3,598,283 0.0% TOTALALLFLNDS S 52,298,335 S 49,810,477 $ 54,649,224 $ 47,459,588 -9.3 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. ATTACHMENT Replacement C - 3 PROPOSED TOTAL TOWN REVENUES, EXPENDITURES, & 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 -e- Revenues $80,000,000 — - - -- — -- � $60,000,000 -- - -- - - -- -- - - - - $40,000,000 $20,000,000 $- 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 $80,000,000 $60,000,000 - $40,000,000 $20,000,000 — — 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12'2012/13'2013/14 2014/15 2015/16 Revenues & Expenditures & Designated Year End Reference Transfers In Transfers Out FundBalance 2006107 Actuals $ 57,356,538 $ 40,769,411 $ 52,447,970 2007/08 Actuals $ 57,785,654 $ 54,751,838 $ 62,283,427 2008/09 Actuals $ 58,959,239 $ 51,969,267 $ 69,273,396 2009/10 Actuals $ 68,176,239 $ 62,169,737 $ 75,279,896 2010/11 Actuals $ 53,064,630 $ 72,439,477 $ 56,038,624 2011/12 Actuals $ 69,593,000 $ 75,659,793 $ 49,971,833 2012/13 Actuals $ 55,847,087 $ 53,432,243 $ 52,386,677 2013/14 Actuals $ 54,528,656 $ 55,545,002 $ 51,370,331 2014 /15 Estimated $ 57,134,333 $ 56,206,329 $ 52,298,335 2015/16 Adopted $ 49,810,477 $ 54,649,224 $ 47,459,588 *Expenditures and Transfers Out may exceed Revenues due to the inclusion of planned and carry - forward capita! projects. Replacement C - 4 PROPOSED TOTAL TOWN REVENUES BY FUND (Includes Transfers In) 2011/12 2012/13 2013/14 2014/15 2014/15 2015116 Change Nod Fumd Name Actuals Actuals Actuals Adopted Fadomted Adopted from PY Gemem/Fund Ill General Fund S 34,461,043 S 37,900,802 S 38,686,493 S 36,129,725 S 37,036,404 $ 37,475,461 3.7% Special Revenue Funds 221 Solid Waste Fond - - - - - - 0.0% 211 Housing Conservation Program 19,720 19,762 20,006 - - - 0.0% 212 Consnmrty Dev Block Grant 92,976 169,270 19,360 70,000 187,292 70,000 0.7A 222 Urban Run -Off Source Fund 135,000 403,294 328,648 336,684 366,684 416,684 23.8% 231 Blackwell Assessoxsa District 3,215 3,192 3,310 3,210 3,210 3,210 0.0%. 232 Kennedy Assessment District 10,741 13,174 11,132 10,539 10,539 10,539 0.0% 233 Crenuni Assessment District 4,278 4,226 4,595 4,276 4,276 4,276 0.7/0 234 Santa Rosa Assessment District 5,053 4,844 5,485 4,%0 4,%D 4,960 0.0% 235 Vasona Assessment District 10,055 10,616 10,656 9,959 9,959 9,959 0.0% 236 HdOorook Assessment District 5,989 5,973 6,223 5,994 5,994 5,994 0.0% Internal Service Funds 611 ABAGSelflnsurance 513,165 486,986 497,185 527,683 460,384 529,575 0.4% 612 Worker's Coup SeVlnsurance 841,678 691,718 835,409 687,833 631,614 926,884 34.8% 621 Managens nt Infomution System 1,031,659 1,039,540 1,038,393 1,051,339 1,081,339 1,084,088 3.1% 622 Office Stores Fund 91,756 88,616 98,057 85,000 92,125 95,000 11.80/0 631 Equipment Replacement 536,004 528,775 506,979 430,243 469,625 490,826 14.1% 632 Vehkk Maintenance 540,731 537,448 578,887 569,300 569,300 571,670 0.4% 633 Facilities Maintenance 1,09,219 1,240,338 1,320,023 1,215,317 1,212,239 1,265,218 4.1% Truss AAgency Funds 710 Friends ofthe library - - - - - - 0.wo 711 library Trust 886 26,501 36,797 35,784 37,628 57,096 59.6% 712 Libray History Project 695 1,962 97 500 1,378 - - 100.0% 713 Ness Trost Bequest 1,959 1,179 3,741 1,500 1,500 1,500 0.0% 714 Bony McClendon Trost 1,011 613 1,867 815 815 815 0.0% 716 Barbara ] Cassin Trost 32,379 3,408 7,382 500 500 500 0.7/0 721 Parking District #88 135,074 56,089 2,703 - - - 0.0% Capitol Projeers Funds 411 GFAR 2,574,474 4,178,189 4,182,948 7,961,491 9,490,735 1$98,000 483.7% 421 Grant Funded CIP Projects (14,895) 790,772 507,181 70,OOD 293,594 701000 0.0% 461 Sto.Dnun #1 157,078 106,754 144,872 48,120 105,914 48,120 0.7/0 462 Storm Drain #2 92,622 110,388 74,709 53,000 32,466 53,000 0.0% 463 Storm Drain #3 916 18,911 473 4,000 1,086 4,000 0.0% 471 Traffic Mitigation 1,178,657 1,152,480 505,005 291,299 30,982 605,000 107.7% 472 Construction Tas- Undergrounding 69,363 69,226 168,242 60,00D 60,000 60,000 0.0% 481 Gas Tax 876,036 732,046 946,246 792,000 888,213 658,623 -16.8% Successor Agency to the Los Gatos RDA Funds 911 SA - Athinistration 780,753 - - - - - 0.0% 921 SA - Debt Service 5,719,849 - - - - - 0.0% 931 SA - Low /Moderate Housing 1,948,527 - - - - - 0.7/e 941 SA- Recognised Obligation Retterner - 538 - - - - 0.0% 942 SA- Recognsed Obligation Retberter 16,644,334 5,449,457 4,024,552 4,047,182 4,043,578 3,989,479 -1.4% 943 SA -Trust Fund 0.0% TOTAL Rod RevA Transfers M S 69,593,000 S 55,847,087 S 54,528,656 $ 54$08,253 S 57,134,333 S 49,810877 -8b% Plus Fsttruted PY Carryforwarzl Cnent Revenue for Captal Projects Total FumdRewoues, Transfers -in, And Prior Year Cerrsdoreards S 49,810,477 Replacement C - I I Geuerel 75.21 TOTAL Towle REVENUES BY FUND Special aeveme Foods SuccessmApmcyFunds SA% FY 2015/16 Revenues By Fund PROPOSED 'mds Funds mds TOWN REVE\L'E HISTORICAL TREND FY 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16 % of Actuals Actuals Actuals Actuals Adopted Estimated Adopted Total General Fund $ 34,461,043 $ 37,900,802 $ 38,686,493 $ 36,129,725 $ 37,036,404 $ 37,475,461 75.2% Special Revenue Funds 287,027 634,351 409,415 445,622 592,914 525,622 1.1% Internal Service Funds 4,645,212 4,613,421 4,824,933 4,566,715 4,516,626 4,963,261 10.09/ Trust & Agency Funds 172,004 89,752 52,587 39,099 41,821 59,911 0.1% Capeal Project Funds 4,934,251 7,158,766 6,530,676 9,279,910 10,902,990 2,796,743 5.6% Successor Agency Funds 25,093,463 5,449,995 4,024,552 4,047,182 4,043,578 3,989,479 8.0% Total Rev& Transfers In $ 69,593,000 $ 55,847,087 $ 54 ,528,656 $ 54,508,253 $ 57,134,333 $ 49,810,477 100.0% TOWN REVE\L'E HISTORICAL TREND FY Total Status 20 7 3 Ads 2007/08 57,785,654 Actuals 2008109 58,959,239 Actuals 2009/10 68,176,239 Actuals 2010/11 53,064,630 Actuals 2011/12 69,593,000 Actuals 2012/13 55,847,087 Actuals 2013/14 54,528,656 Actuals 2014/15 57.134.333 Estimated 2015/16 49,830,477 Projected (Includes Transfers In) Replacement C - 12 80,000,000 70,0DQ000 60,00Q0D0 50,004000 40,000,000 34004000 20,000,000 1%000,000 Replacement C - 12 PROPOSED TOTAL TOWN EXPENDITURES BY FUND (Includes Transfers Out) Replacement C - 13 2011/12 2012/13 2013/14 2014/15 2014115 2015/16 Change Food Fund Name Acmda Artuals Around, Adopted Fsdonted Adopted from PY General Fund III General Food S 34,280,012 $ 35,411,559 $ 41,484,431 S 43,493,413 S 41,606 ,325 $ 37,875,462 -12.9% Special Rewme Funds 221 Solid Waste Food - - - - - - 0.0% 211 Housing Conservation Program 94 135 - - - - 0.0'4 212 Constantly Dev Block Grant - 182,364 19,360 70,000 176,705 70,000 0.0% 222 Urban Run- OHSoume Fund 116,607 359,728 322,814 404,616 410250 499,053 23.3% 231 Black cn Assessment DutnM 2,905 2,316 2,411 2,466 2,466 2,466 0.0% 232 Kennedy Assessment District 4,658 4,552 4,557 4,719 4,719 4,719 0.0% 233 Ge ®i Assessment District 1,851 1,905 1,851 2,166 2,166 2,166 0.0% 234 Santa Rosa Assessment District 3,837 3,891 3,837 4 ,200 4,200 41W 0.0% 235 Vasom Assessment District 4,178 5,670 5,306 5,466 5,466 5,466 0.0% 236 Hillbrook Assessment District 3,494 3,761 4,026 3,794 3,794 3,794 0.0% lnternal Servlee Funds fill ABAGSelfbrsuraoce 984,093 730,092 792,660 784,592 782,361 790,094 O.W. 612 Worker's Cow Selflusuwnce U50,924 745,442 1,505,626 1,060,179 1,100,460 1,367,951 29.04/6 621 Management Information System 823,816 1,017,187 972,826 1,188,825 1,083,450 1,254,373 5.5% 622 Office Stores Fund 130830 135,973 107,977 127,150 118,500 127,150 0.0% 631 Equipment Replacement 496,494 401,643 337,867 617,160 266,591 739,221 19.8% 632 Vehicle Maintenance 457,838 457,363 389,820 569,252 478,971 571,670 0.4% 633 Facilities Maintenance 1,022,978 1,005,315 1,255,868 1,334,394 2,087,278 1531,278 14.8% T,"A Age "y Funds 710 Friends ofthe Library, - - - - - - 0.0-A 711 Library Trust 22,103 43 ,225 18,812 30,709 35,843 90,750 195.6% 712 Library History Project - 1,957 2$33 - - - 0.0% 713 Ness Trust Bequest 4,000 - 5,638 10,000 24,950 75,000 650.0-6 714 Betty McClendon Trust - - 4,716 10,000 10,000 10,000 0.0% 716 Barbara l Cassin Trust 158,340 90,449 80,829 60,000 60,000 60,000 0.0% 721 Padding District 988 148,209 143,655 140,366 - - - 0.0% Capital Projects Funds 411 C,FAR 8,664,048 4,777,049 2,493,749 6,954,450 2,837,958 4,165,932 40.1% 421 Giant Funded CB Projects 692$13 761,467 153,935 70,000 116,889 70,090 0.0% 461 Storm Drain 01 440 241,845 - - - - 0.0% 462 Son. Drain p2 - - - - - - 0.0% 463 Storm Drain#3 - - - - - - 0.0% 471 Traffic MOligation 1,131,857 1,152,480 453,811 291 ,299 30,982 605,090 107.7% 472 Constructions Tax- Undergr000ding 4,707 - - - - 28,090 00% 481 Gas Tea 756,000 756,000 818,290 806,W0 895,214 706,010 -12.4% Successor Agency to the Los Gatos RDA Funds 911 SA - Ad ®titration 2,023,801 - - - - - 0.0% 921 SA -Debt Service 7,174,160 - - - - - 0.0% 931 SA- Low /Moderate Housing 1,948,527 - - - - - 0.0% 941 SA- Recognized Obligation Rat6eorent - - - - - - 0.096 942 SA -Trust Fund 13,246,779 4,995,220 4,261,386 4,W,766 4,060)91 3,989,479 TOTAL Food Up& Transfers Out S 75,659,793 S 53,432243 $ 55545,002 $ 61,945,607 $ 56106,329 S 54,649124 -11.8% Replacement C - 13 General 69.3' PROPOSED TOTAL TOWN EXPENDITURES BY FUND FY 2015/16 Expenditures by Fund vice Funds 7% Agency Funds 0.4% Project Funds 10.2% _ icy Funds 7.3% Replacement C - 14 2011/12 2012/13 2013/14 2014/15 2014/15 2015/16 % Actuals Actuals Actuals Adopted Estimated Adopted of Total General Fund $ 34,280,012 $ 35,411,559 S 41,484,431 $ 43,493,413 $ 41,606,325 $ 37,875,462 69.3% Special Revenue Funds 137,624 564,322 364,162 497,427 609,766 591,864 1.1% Internal Service Funds 5,266,973 4,493,015 5,262,644 5,681,552 5,917,611 6,381,737 11.7% Trust & Agency Funds 332,652 279,286 252,594 110,700 130,793 235,750 0.4% Capital project Funds 11,249,265 7,688,841 3,919,785 8,121,749 3,881,043 5,574,932 10.2% Successor Agency Funds 24,393,267 4,995,220 4,261,386 4,040,766 4,060,791 3,989,479 7.3% Total Exp & Transfers Out $ 75,659,793 $ 53,432,243 $ 55,545,002 $ 61,945,607 $ 56,206,329 $ 54,649,224 100.0% Replacement C - 14 TOWN EXPENDITURE HISTORICAL TREND (Includes Transfers Out) 100,000,000 80,000,000 FY Total Status 2006'07 S 40,769,411 Actuals 2007 08 5 54,751,838 Actuals 2008109 $ 51.969.267 Actuals 60,0D0,000 fl 2009/10 2010/11 S 62,169,737 $ 72,439,477 Actuak Actuals 40,000,000 -- 2011/12 S 75.659,793 Actuak 20,000,000 2012/13 S 53.432.243 Actuals 2013/14 2014/15 2015/16 $ 55,545,002 S 56,206,329 $ 54,649,224 Actuals Estimated Projected 41 Replacement C - 14 \`h Replacement C - 14 Lynn Brandhorst 93 Broadway Los Gatos, CA 95030 408- 395 -6920 June 11, 2015 Mayor Jensen and Honorable Members ofthe Los Gatos Town Council 110 E. Main Street Los Gatos, CA 95030 RE: Town of Los Gatos Proposed Capital Improvement Program PPW Job No. 13-31 Almond Grove Rehabilitation Project Phase 1A Dear Mayor Jensen and Honorable Council Members: I am writing on behalf of the owners and residents of Broadway, and surrounding Broadway neighbors, i.e., owners and residents of Clifton and Broadway Extension. We will be presenting information to the Town Council at the June 16 meeting. In addition, this letter and attachments provide historical context and background material on the reconstruction of Broadway, its longstanding deteriorated condition, and particularly the unified desires of its owners, residents, and neighbors to have the street rebuilt to reflect its heritage and beauty as a historical concrete street We have wanted to have our 90 year old concrete repaved for a long time, and continue to want that We have been very patient because of downturns in Town ofLos Gatos financial resources, including the Loma Preita earthquake and subsequent local, state, and national economic downtums in the past The Town survey showed that at least eighty percent of the owners specifically want concrete pavement to continue, as they responded, and we will present even more unified results. In addition, the Town's pavement condition of historic concrete streets shows Broadway to be in the worst condition. We are currently hopeful, and do request, that the Town Council will hold the Town to the same building and historical preservation standards as the Town has demanded from the Broadway Historic District members, and uphold the same laws and regulations that help to preserve the attraction and character of our town. Thank you for your consideration of our needs. Los Gatos, CA 95030 phone: 408 -373 -3409 Attachments: Broadway Chronology Council Agenda Report & Broadway Petition, January 8, 1988 ATTACHMENT BROADWAY CHRONOLOGY 11 NN 2015 Compiled by Lynn Brandhorst, 93 Broadway, with material from newspaper accounts, town records, and from much research accumulated by Bill Wulf, a long -time local historian, and Mary Durham, a previous resident of the Broadway Extension and a vocal Broadway advocate for many years. The Los Gatos Library has much additional information on individual residences and previous notable residents of Broadway, some compiled by the Los Gatos Historical Society. It is kept in a locked history office that can be accessed upon request. 1881 SEP 24 The (John W.) Lyndon Subdivision is surveyed with 48 lots, selling from $125 up. 1883 JAN 05 John W. Lyndon opened up Broadway in his subdivision. Scattered houses and businesses such as Forbes Mill preceded Broadway, but this subdivision marked the beginnings of a formally laid -out Town. Broadway was the first designated residential street in Los Gatos. 1887 APR 08 Mr. Hayselton let a contract for four cottages to Mr. Warwick (who was also the builder of James Lyndon's home on Broadway). This includes 81, 85, 89 and 93 Broadway above Clifton. From the Los Gatos News, August 19,1887: "The block of cottages being erected by Mr. Thos. Hayselton on West Broadway are an ornament to that part of town, and will bring in a good rental. The location is high and dry, and the view is s good as could be wished, and being on the north east slope of the hill they get good morning sun. The buildings are all set on high foundations and are built of the best material throughout. They have five rooms each besides closets and hall, and a nice large bathroom with plumbing complete for hot and cold water. The water is pumped by a windmill into a tank above the block and is pure mountain water. The enterprise of Mr. Hayselton, in building such nice residences to rent to those who wish to make long stops in our town, but do not wish to buy real estate will be appreciated by those who occupy the houses, and the nice block will add to the beauty of the town." 1894 APR 13 Broadway was a dirt road up until this rime. The Town Board reviewed the Broadway street improvement that had then been contracted: "Not as much gravel on the streets as the contract calls for; that Broadway is filled with large stones instead of gravel, and the work is the shabbiest ever done." 1921 FEB 03 "At the meeting of the city trustees the previous Monday, the following streets were renamed: Market Street to Mariposa St. Johnson Avenue to El Monte St. Wheeler Avenue to Wheeler St. Wilder Street to Monterey Ave. Tait Street to San Benito Ave. Broadway to San Juan St. Sixth Street to High School Court." 1921 FEB 10 "Residents of Broadway, Oak Street and Johnson Avenue have sent remonstrations to the city trustees against changing the names of their streets. Market Street residents have expressed a preference for the name Loma Alta Street. Consequently, the trustees, Monday evening, heeded the wishes of the citizens concerned. The names of the following will be changed, however: Sixth Street to High School Court; Tait Street to San Benito Avenue; Wilder Street to Monterey Avenue; Market Street to Loma Alta Street " 1924 FEB 07 Broadway residents petition the city trustees asking for paving of Broadway (initially with asphaltic pavement). After discussions with Town Engineer Fisher, residents rescinded and repetitioned to pave the street with a Portland cement concrete pavement. The plans and specifications for the paving of Broadway were adopted, and the street was subsequently paved. THAT WAS 90 YEARS AGO. 1976 SEP 22 Lynn Brandhorst bought and moved into 93 Broadway. At that time some parts of Broadway were already in such disrepair from construction and utility work damage that neighborhood discussions were being held about it. 1983 Broadway celebrated its Centennial year. William A. Wulf (Bill Wulf), a historian of Los Gatos and Santa Clara Valley, wrote and presented a paper on the history of Broadway, beginning with the Quiroste Tribelet of Ohlone Indians who populated the Los Gatos area, with the last Indians leaving in the early 1860's as Los Gatos started to develop. 1987 OCT 08 Formal petition from the Broadway residents is presented to the Town Council for repaving Broadway. 1988 JAN 08 Town Council Agenda Report: "Broadway is an old Portland cement concrete street adjacent to the downtown area. Cracks, utility patches, vertical displacements, and localized failures have occurred." (Some long timers may recall that we actually had a large sinkhole in the middle of Broadway for a while.) Attached to the report was a priority list of Los Gatos concrete streets on a scale of 0 to 10, with 10 being the best. The lowest rating, 3, was for Broadway, Bayview, Glenridge, and portions of Bean and Tait. 1988 JUN 06 Letters sent from the Town Manager to Broadway residents stated: "1988 -89 Capital Improvement Budget includes the concrete reconstruction of Broadway, but does not include funding for this project in 1988 -89." 1988 JUN 08 A report from the Town Engineer to the Town Manager also noted that Town Ordinance No. 1643 stated "HISTORICAL CONCRETE ROADS SHOULD BE REPAIRED OR PAVED WITH CONCRETE IN ORDER TO MAINTAIN APPEARANCE." 1989 OCT 17 The Loma Prieta Earthquake. The future of downtown Los Gatos and many historic structures was in doubt and needed to be rebuilt. Civic and private resources were spread very thin. Broadway residents understood, repaired, rebuilt as necessary, and remained patient 2008 OCT 20 Ordinance 2166 (amending # 1921) designating the Broadway Historic District states: "Listed below are Town features recommended for preservation. Review by the Historic Preservation Committee is required for any changes to these features: #1. ROADS ARE CONCRETE AND SHOULD BE REPAIRED TO MAINTAIN APPEARANCE AS OF THE YEAR 1992" Council Members voting Ayes: Steve Glickman, Diane McNutt, Joe Pirzynski, Mike Wasserman and Mayor Barbara Spector. Council members voting Nays: None. Later, the national, state, and local economic downturns all created fiscal problems for the Town as well, with significant downsides to Los Gatos' resources. We have remained patient for a very long time. We have always wanted our street rebuilt to reflect its heritage and beauty as a historical concrete street. We continue to want that. The town survey and our neighborhood consensus that we want concrete rather than asphalt, make that clear. We are currently hopeful that the Los Gatos Town Council members recognize the value of the building and historical preservation standards when it comes to the street itself and join us to the same degree that the Broadway Historic District properties have done to uphold the same laws and regulations that help to preserve the attraction and character of our town. We ask that the Town of Los Gatos approve a budget appropriation and direct a bidding process for the reconstruction of Broadway, Los Gatos' first residential street and the historic concrete street that is now in the worst condition of all in Los Gatos. r Council Agenda Y Date: 2!19!8 Item No...- 's- TOWN OF LOS GATOS Council Agenda Report DATE: JANUARY 8, 1988 T0: MAYOR AND TOWN COUNCIL FROM: DEBORAH SWARTFAGER, TOWN MANAGE SUBJECT: PETITION! REQUESTING THE REPAVING OF BROADWAY FROM SANTA CRUZ AVENUE TO WEST MAIN STREET RECOMMENDATION Consider reconstruction of Broadway during the 1988 -89 Capital Improvement Budget Hearing in June. Direct staff to return to Council with definitive recommendations on Lhe Town's policy related to responsibility for replacement of residential sidewalk, curb and gutter. The replacement of sidewalk, curb and gutter an Broadway would then be considered in relationship to the formal Town -wide policy. BACKGROUND This report has been prepared in response to a petition signed by residents of Broadway and Clifton Avenue requesting that Broadway be repaved from Santa Cruz Avenue to West Main Street. While attending a public meeting with residents on November 17, 1987, the need for sidewalk, curb and gutter repairs was also discussed. ANALYSIS /DESCP,IPTION Broadway is an old Portland cement concrete street adjacent to the Downtown area. Cracks, utility patches, vertical displacements, a d localized failures have occurred. PREPARED BY: RONALD J. ZAPF R. RY N J T, Director Town Engineer Par , Forestry and Maintenance Services cc. Regular Distribution Special Distribution Reviewed TOWN COUNCIL ACTION DIRECTED TO: ACTION OF COUNCIL: COMMENTS: PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: PETITION REQUESTING THE P.EPAVING OF BROADWAY FROM SANTA CRUZ AVENUE TO WEST MAIN STREET JANUARY 8, 1488 ANALYSIS /DESCRIPTION tcontinued) Staff recently met with residents of Broadway and Clifton Avenue to discuss possible repair methods. At this meeting the following options were discussed: 1. Replace the whole street in Portland cement concrete. 2. Dig out failed areas and replace with asphaltic concrete. 3. Overlay the street with asphaltic concrete. 4. Dig out local areas and replace with Portland cement concrete. tepai -' a�7or re— p�acemen� o� SiBewaTYs, curb and gutters. Staff's analysis of the four alternatives is as follows: A. Street Repairs 1. Because the majority of the street is not in need of repair and because of the high cost involved, replacing the whole street with Portland cement concrete it not recommended. The estimated cost of the option is $200,000. _. Digging out the failed areas and replacing them with asphalt concrete is the most economical of the alkternatives and should provide good serviceability. However, such a procedure would result in a patchwork appearance unless the entire street was subsequently overlaid with asphalt concrete. The estimated cost of this option is $20,000. 3. Overlaying Broadway with asphaltic concrete would still require repair'�o:�f local failures prior to overlay.' Because Broadway is comprised of concrete slabs which tend to move under wheel loads, these slabs would have to be stabilized to prevent from_r-p-flzctiac,- thLqugb –the n w-._QV� r ay,__._T general _ consensus of the residents who met with staff seems to be against this type of treatment for aesthetic reasons. The estimated cost of this option is $80,000. 4. Digging out the failed areas and replacing them with Portland cement concrete is the most attractive of the four alternatives. Although it would be more costly than replacing with asphaltic concrete, replacing with concrete would better stabilize the roadway thus reducing the potential for reflective cracking in the event that the roadway is overlaid: This option represents the optimum balance between cost, serviceability, and aesthetics. The estimated cost of this option is $40,000. The correct approach will need to be confirmed by materials testing to ensure adaquate life For the proposed solution. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: PETITION REQUESTING THE REPAVING OF BROADWAY FROM SANTA CRUZ AVENUE TO WEST MAIN STREET JANAURY 8, 1985 ANALYSIS /DESCRIPTION (continued) Broadway is one of several concrete streets in Los Gatos (list attached). These streets are also in need of various degrees of repair. A full analysis of the specific needs of each of these streets has not yet been completed, but will be incorporated in FY 1988 -89 Capital Improvement recommendation=_. It is Tawn policy to schedule and undertake roadway repair anal /or replacement based an priority or need. Prioritization is done annually through the Capital improvement Program. Multi -year planning will be available when the Town's pavement management system is in place. Cost of roadway repairs are funded by the Town. B. Sidewalks, - _,Curbs and -Butters 'There are sidewalks, curb and gutters on the north and south side of Broadway. Portions of these facilities are in disrepair primarily due to aqe. Staff's survey shows that there are 11,000 square feet of sidewalks and 2,100 lineal feet of curb and gutter. Approximately 2,300 square feet (21 %) of sidewalk is in need of replacement. Of this amount, 200 square feet of needed repair is related to tree damage. The remainder 2,100 square feet is in need of replacement due to deterioration caused by age. Because of the age and nature of construction of curbs and gutters on Broadway, Full replacement would be required rather than remedial repairs. The estimated cost for this work is $70,000. It has been the Town's practice to make sidewalk, curb and gutter repairs where street trees have caused uplifting or damage. These repairs are budgeted For and approved by Council on a yearly basis. (appropriation. FY 1987 -88 $177,600.00) When repairs are needed related to sidewalk, curb and gutter deterioration due to age, the property owner has been responsible for improvements. In 1985, Council did, however, appropriate funding for a section of sidewalk, curb and gutter restoration in the Central Business District in conjunction with the Villa Hermosa project. Although repairs have been made related to specific conditions, i.e. street tree damage, etc., there is no specific policy defining where responsibility lies for replacement. It is recommended that Council further define the Town's policy related to sidewalk, curb and gutter replacement before moving foreward with any proposed project. Staff should be directed to return to Council with a formal policy for Council review and adoption. Once policy is established, Town residents would be notified of the program and where responsibility lies. FISCAL IMPACT Unknown EXHIBITS 1. Petition from residents of Broadway and Clifton Avenue 2. Special distribution map. EXHIBITA October 15, 198 -7 LOS GATOS TOWN COUNCIL Broadway, a residential street in a designated historical district, has deteriorated to a point where 8'.�sr- d.o -u -s— �T- 4849�En F�fEIf$9 ji-t am Broadway is used on a regular basis for rerouting traffic through downtown, therefore it is receiving heavy traffic. _ Attached is a petition requesting the repaving of Broadway from Santa Cruz Avenue to West Main Street. ct�cCe.L . 14 -14-87 f7 i, l/ �t THIS PAGE INTENTIONALLY LEFT BLANK From: John Shepardson <shepardsonlaw @me.com> Sent: Saturday, June 13, 2015 3:00 PM To: Marcia Jensen; BSpector; Steven Leonardis; Marico Sayoc; Rob Rennie; Council; Les White; Laurel Prevetti; Matt Frisby; Matt Morley, Lisa Petersen; Mike Wasserman; Carl Guardino; Barry Chang 4 Cupertino City Council; bloventhal @cityofmontesereno.org; whuff @cityofmontesereno.org; lallan @cityofmontesereno.org; manstandig @cityofmontesereno.org; bcraig @cityofmontesereno.org; sgarner @cityofmontesereno.org; hmiller @saratoga.ca.us; mcappello @saratoga.ca.us; elo @saratoga.ca.us; mlbernald @saratoga.ca.us; rkumar @saratoga.ca.us; City Council; rsinks @cupertino.org; gwong @cupertino.org; svaidhyanathan @cupertino.org; dpaul @cupertino.org; pierluigi .oliverio @sanjoseca.gov, Rick Sung; manager @cupertino.org; Debbie Bretschneider Subject: Re: While America Aged ROGER LOWENSTEIN Mart of Its batsHnng ways curis !+fret bed OrIghis of Of Crush 1 1 Alm Now Pension Debts Ruined General Motors, Stopped the NYC Subways, Bankrupted San Diego. and Loom as the Neat financial Crisis On Jun 13, 2015, at 11:49 AM, John Shepardson <shepardsonlawAme.com> wrote: 1 ATTACHMENT 4 "Grand Jury Report: Santa Cruz County, cities need to reduce unfunded pension liability" at http: / /www.santacruzsentinel.com /government- and - politics/ 20150611 /¢rand -jury- report- santa -cruz- county- cities- need -to- reduce - unfunded- pension - liability Actual GJ Report at httv://www.co.santa- cruz.ca.us /Portals /0 /County /GrandJury /GJ2015 final /FundedForTheFuture.pdf Please add as desk item for Budget agenda item. JS:) Subject: FW: Grand Jury in Cruz: Reduce Pension Liab From: John Shepardson [mailto:shepardsonlaw(abme.com] Sent: Saturday, June 13, 2015 11:49 AM To: Marcia Jensen; BSpector; Steven Leonardis; Marico Sayoc; Rob Rennie; Council; Les White; Laurel Prevetti; Matt Frisby; Matt Morley; Lisa Petersen; Mike Wasserman; Carl Guardino; Barry Chang 4 Cupertino City Council; bloventhal (abcitvofmontesereno.org; whuff(&cityofmontesereno.oro; lallan(ocityofmontesereno.org; manstandia (i:bcitvofmontesereno.oro; bcraig(a)citvofmontesereno.oro; sgarnercd )citvofmontesereno.ora; hmiller(absaratoaa.ca.us; mcappello@saratooa.ca.us; elo@saratoga.ca.us; mlbernald(nlsaratoga.ca.us; rkumamIsaraWga.ca.us; City Council; rsinks cbcupertino.ora; gwono(@cuPertino.org; svaidhvanathanCa cupertino.org; dpaul(c cupertino.org; pierluioi .oliverioaasanjoseca.00v; Rick Sung; manager(alcupertino.org; Debbie Bretschneider; Council Subject: Grand Jury in Cruz: Reduce Pension Liab "Grand Jury Report: Santa Cruz County, cities need to reduce unfunded pension liability" at http: / /www santacruzsentinel.com /government- and - politics/ 20150611 /grand- jury - report- santa -cruz- county- cities- need -to- reduce - unfunded - pension - liability Actual GJ Report at http://www.co.santa - cruz.ca.us /Portals /0 /County /GrandJury /GJ2015 final /FundedForTheFuture.pdf Please add as desk item for Budget agenda item. JS:) Subject: FW: Howard Miller on Unfunded Liabilities From: John Shepardson [mailto:sheoardsonlaw(alme.com] Sent: Sunday, June 14, 2015 10:47 PM To: Marcia Jensen; BSpector; Steven Leonardis; Marico Sayoc; Rob Rennie; Council; Les White; Laurel Prevetti; Matt Frisby; Matt Morley; Lisa Petersen; Mike Wasserman; Carl Guardino; Barry Chang 4 Cupertino City Council; bloventhal @cityofmontesereno.org; whuff @cityofmontesereno.org; Iallanncitvofmontesereno.oro; manstandia @citvofmontesereno.ora; bcraig @citvofmontesereno.org; sgarner@cityofmontesereno.org; hmiller(alsaratoaa.ca.us; mca)i)ello @saratoga.ca.us; elo @saratoga.ca.us; mlbernald(alsaratoaa.ca.us; rkumar @saratoga.ca.us; City Council; rsinks@cupertino.org; gwona@cuoertino.oro; svaidhyanathan @cupertino.org; dpaul @cupertino.org; pierluiai .oliverio (cbsanioseca.00v; Rick Sung; manaoer@cupertino.org; Debbie Bretschneider Subject: Howard Miller on Unfunded Liabilities Please add this informative email from Saratoga Mayor Howard Miller to the Budget agenda item. JS:) From: Howard Miller <hmiller@sarato ag ca.us> Date: June 13, 2015 at 3:31:21 PM PDT To: John Shepardson <shenardsonlaw c,me.com> Subject: Re: Grand Jury in Cruz: Reduce Pension Liab Saratoga was the first city in the county and one of the first in the state to take on paying down 1/2 of our liability. We got a report in October (so did all of the west side cities) with that analysis as of July'14. By Spring we raided some of our reserves and paid down half of it. For the remaining balance we budgeted this year to pay it off over 15 years rather than the 30 years proposed by Cal Pers. The effective interest rate is 7.5% on this "loan" (our share of the unfunded accrued liability), so by pre - paying half with money that was yield less than 0.5% and paying the remainder over 15 years, we are saving Saratoga citizen millions! Which is likely the confusion with the other west valley cities: They have a payment play from CalPers and they are not thinking about payoff the already accrued liability... but rather are just accepting the 30 year payment terms put forth. No other west valley city has made advanced payments on the July 2014 data that came to each city in a reported dated October. Thanks! Howard... On Jun 13, 2015, at 11:49 AM, John Shepardson <shepardsonlaw0.me.com> wrote: Sent from my iPhone