Addendum Ad Hoc
PREPARED BY : JENNIFER CALLAWAY CHRISTINA GILMORE
Assistant Town Manager Assistant to the Town Manager
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Reviewed by: Assistant Town Manager Town Attorney Finance
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N:\MGR \AdminWorkFiles \2016 Council Reports \03 -15 -16 \06 Ad Hoc Citizen Committee \Addendum Ad Hoc.FINAL.doc
MEETING DATE: 0 3 /15 /16
ITEM NO : 6
ADDENDUM
COUNCIL AGENDA REPORT
DATE: MARCH 14 , 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI , TOWN MANAGER
SUBJECT: REPORT FROM AD HOC CITIZEN COMMITTEE REGARDING PLACING
POTENTIAL REVENUE GENERATING MEASURES ON THE NOVEMBER
2016 GENERAL ELECTION BALLOT
REMARKS :
After the initial staff report was distributed, staff received questions fr om a Council Member . T he
Counc il inquir ies have been identified below, followed by staff’s response.
Question 1: What is the Town’s “anticipated year -end excess ?”
Answe r: At the March 1, 2016 Council meeting, the Council approved a revenue budget
adjustment to increase general f und revenues by $1.7 million. Additional expenditure adjustments
were authorized increasing expenditures by $700,000 . "A nticipated year -end excess" is the
difference between these two adjustments, net available revenues of approximately $1 million.
Ques tion 2: Has any use of those funds already been discussed and/or determined?
Answe r: Budget adjustments were discussed at the March 1, 2016 as part of the mid -year budget
review process. Of the $1.7 million authorized in revenue increases, approximately $700,000 in
expenditure increases were discussed and authorized by Council. The remaining $1 million in
available revenues w ere not discussed or appropriated. In addition to the $113,700 for consultant
services related to a potential revenue measure for the November 2016 ballot, s taff is requesting
$20,000 from the $1 million in anticipated year e nd surplus to retain consultant services to assist
with analysis and other tasks associated with negotiations for a p otential public -private partnership
for dow ntown parking under Agenda Item 7 .
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MAYOR AND TOWN COUNCIL
SUBJECT: REPORT FROM AD HOC CITIZEN COMMITTEE
MARCH 1 4 , 2016
REMARKS (cont’d):
Question 3: What is the estimated TOT annual revenue under the C ommittee’s recommendation?
W hat is the increase from current TOT?
Answer: The Committee recommended increasing TOT by 2%. The curre nt TOT rate in Los
Gatos is 10% and the Committee's recommendation would increase the Town's rate to 12%. Staff
estimates that each 1% of sales tax increase will generate approximately $150,000 in additional
revenue for the Town. Therefore, it is estimat ed that a 2% increase would result in approximately
$300 ,000 in additional revenue each year.