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