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Attachment 1FPROPOSED C - 1 0 50 100 150 200 250 300 FINANCIAL SUMMARIES Total Revenues and Expenditures Summary schedules which provide a high level overview of the entire Town budget, in a fund-type summary, as well as by fund-specific and category-specific summary levels. Total Budgeted Fund Activity ...................................................................................................................... C – 3 Total Revenues, Expenditures, and Fund Balance Trend Information .......................................................... C – 4 Total Revenues, Expenditures, and Fund Balance – 5 Year Summary ......................................................... C – 7 Total Town Revenues – by Fund ................................................................................................................... C – 11 Total Town Expenditures – by Fund ............................................................................................................. C – 13 Total Town Revenues – by Category ........................................................................................................... C – 15 Total Town Expenditures – by Category ....................................................................................................... C – 16 General Fund Revenues and Expenditures Summary schedules which identify the Town’s General Fund operating sources and uses at the department and category levels. The Fund Balance Activity summarizes the General Fund sources and uses which impact the resulting ending fund balance. General Fund Revenues – by Department .................................................................................................... C – 17 General Fund Expenditures – by Department ............................................................................................... C – 18 General Fund Revenues – by Category ......................................................................................................... C – 19 General Fund Expenditures – by Category .................................................................................................... C – 21 General Fund Tax Revenues per Capita – Cities of Santa Clara County ..................................................... C – 22 General Fund Tax Revenues – 10 Year History of Key Tax Revenues ....................................................... C – 23 General Fund – Fund Balance Activity ......................................................................................................... C – 24 Operating Transfers A schedule summarizing activity by fund, of estimated fund transfers for the prior fiscal year and budgeted for the adopted fiscal year. Schedule of Interfund Transfers .................................................................................................................... C – 25 PROPOSED C - 2 FINANCIAL SUMMARIES Fund Balance Fund Balance schedules, one which summarizes activity and ending fund balances to provide a quick look at the ongoing status of the individual funds, and another which provides a 5 year trend. Fund Balance Activity Summary – by Fund ................................................................................................ C – 26 5 Year Comparative Fund Balance – by Fund ............................................................................................... C – 28 Departmental Budgets Department level schedules provide an overview of funding source and expenditure use, by each program within the department. Department Revenues – by Program ............................................................................................................. C – 30 Department Expenditures – by Program........................................................................................................ C – 32 In-Kind Donations In-Kind Donations ......................................................................................................................................... C – 34 Fee Related Project List ................................................................................................................................. C – 35 Staffing The labor position schedules provide a summary level view of operational staffing assignments, funding, and trends. The Personnel Changes Summary discusses staffing levels and labor costs in more detail. Departmental Staff – by Fund ....................................................................................................................... C – 37 Summary of FTEs – by Department .............................................................................................................. C – 38 5 Year History of Funded Positions – by Department .................................................................................. C – 39 Summary of Personnel Changes ................................................................................................................... C – 40 Positions by Home Department ..................................................................................................................... C – 44 PROPOSED C - 3 TOTAL BUDGETED FUND ACTIVITY SUMMARY FY 2016/17 *Major Funds 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. 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. Estimated Revenues, Expenditures,Estimated Fund Balance Fund Balance PY Carryfwds PY Carryfwds Fund Balance Change 7/1/2016 & Transfers & Transfers 6/30/2017 From PY Operating Funds Governmental Funds General Fund *27,919,624$ 37,829,433$ 46,922,242$ 18,826,815$ -32.6% Housing Conservation Program 74,520 - - 74,520 0.0% Community Dev Block Grant 18,315 70,000 70,000 18,315 0.0% Urban Run-Off Source Fund 89,692 367,464 533,935 (76,779) -185.6% Blackwell Assessment District 9,836 3,210 9,852 3,194 -67.5% Kennedy Assessment District 9,644 10,337 8,634 11,347 17.7% Gemini Assessment District 19,808 4,187 11,701 12,294 -37.9% Santa Rosa Assessment District 59,740 4,800 13,255 51,285 -14.2% Vasona Assessment District 42,203 9,885 18,644 33,444 -20.8% Hillbrook Assessment District 12,382 5,997 17,384 995 -92.0% Proprietary Funds - Internal Service Funds ABAG Self Insurance 1,258,800 535,398 808,361 985,837 -21.7% Worker's Comp Self Insurance 1,250,448 934,118 1,258,810 925,756 -26.0% Management Information Systems 2,830,622 1,127,676 1,351,188 2,607,110 -7.9% Office Stores Fund 154,585 95,000 51,000 198,585 28.5% Equipment Replacement 1,859,225 381,322 336,369 1,904,178 2.4% Facilities Maintenance 361,857 573,865 573,866 361,856 0.0% Vehicle Maintenance 273,808 1,381,875 1,381,875 273,808 0.0% Total Operating Funds 36,245,109$ 43,334,567$ 53,367,116$ 26,212,560$ -27.7% Trust & Agency Funds Library Trust 41,680$ 67,400$ 67,000$ 42,080$ 1.0% Library History Project - - - - 0.0% Ness Trust Bequest 38,566 500 - 39,066 1.3% Betty McClendon Trust 86,207 750 - 86,957 0.9% Barbara J Cassin Trust 345,258 500 - 345,758 0.1% Parking District #88 86,858 - - 86,858 0.0% Total Trust & Agency Funds 598,569$ 69,150$ 67,000$ 600,719$ 0.4% Capital Funds GFAR *7,064,193$ 10,972,973$ 13,218,306$ 4,818,860$ -31.8% Grant Funded CIP Projects (318,413) 645,000 645,000 (318,413) 0.0% Storm Drain #1 717,780 49,000 - 766,780 6.8% Storm Drain #2 875,866 53,380 - 929,246 6.1% Storm Drain #3 (48,232) 1,500 - (46,732) -3.1% Traffic Mitigation 204,941 422,869 402,869 224,941 9.8% Construction Tax-Undergrounding 2,836,352 50,000 42,000 2,844,352 0.3% Gas Tax 265,897 631,843 656,000 241,740 -9.1% Total Capital Projects Funds 11,598,384$ 12,826,565$ 14,964,175$ 9,460,774$ -18.4% Successor Agency of the Los Gatos RDA Funds SA- Trust Fund 3,572,969$ 3,872,939$ 3,871,255$ 3,574,653$ 0.0% Total Successor Agency of the Los Gatos RDA Reserves 3,572,969$ 3,872,939$ 3,871,255$ 3,574,653$ 0.0% TOTAL ALL FUNDS 52,015,031$ 60,103,221$ 72,269,546$ 39,848,706$ -23.4% PROPOSED C - 4 TOTAL TOWN REVENUES, EXPENDITURES, & FUND BALANCE TREND INFORMATION \ *Expenditures and Transfers Out may exceed Revenues due to the inclusion of planned and carry-forward capital projects. Year End Reference Revenues & Transfers In Expenditures & Transfers Out Designated Fund Balance 2007/08 Actuals 57,785,657$ 54,751,838$ 52,447,970$ 2008/09 Actuals 58,959,239$ 51,969,267$ 62,283,427$ 2009/10 Actuals 68,176,239$ 62,169,737$ 69,273,396$ 2010/11 Actuals 53,064,630$ 72,439,477$ 75,279,896$ 2011/12 Actuals 69,593,000$ 75,659,793$ 56,038,624$ 2012/13 Actuals 55,847,087$ 53,432,243$ 52,386,676$ 2013/14 Actuals 54,528,656$ 55,545,002$ 51,370,330$ 2014/15 Actuals 63,470,972$ 56,593,416$ 58,247,886$ 2015/16 Estimated 55,044,945$ 61,277,801$ 52,015,032$ 2016/17 Proposed 60,103,221$ 72,269,546$ 39,848,707$ PROPOSED C - 5 TOTAL TOWN REVENUE, EXPENDITURE, & FUND BALANCE TREND INFORMATION The Town continues to focus on priority issues that involve maintaining public safety and Town infrastructure including streets and parks; and providing library, community development, and other services. These priorities are coordinated with other Core Goals that protect the Town’s fiscal health and ensure cost efficient and effective delivery of Townwide administrative services. The Town’s proactive approach to reducing operating expenditures, identifying revenue enhancements, and implementing operating efficiencies has been an effective fiscal approach. Reflecting the positive economy, FY 2016/17 budget is a balanced budget and the five-year financial forecast projects limited surpluses in the next five years. The FY 2016/17 budget has been balanced largely due to revenue enhancements, resulting from the positive economy and the Town’s growth in the economically sensitive revenue sources such as Property Tax, Transient Occupancy Tax, and Licenses and Permits. In regard to expenditures, the Town ’s employer -paid benefits including obligated pension contributions, the pre-funding of premiums for retiree health coverage and the cost of current health plans continue to increase, with expectations that these costs will continue to increase for the foreseeable future. Other key trends affecting the fund balance forecast include: Salaries and Benefits Increases – As in most municipalities, services are provided directly by employees to the Town’s residents, businesses, and visitors. As a result, the cost of salaries and benefits are a significant portion of the budget. Salaries and benefits account for 34.6% of the Town’s total expenditures and 50.2% of General Fund expenditures in FY 2016/17. When fiscal conditions worsened during the recession, employees participated in wage freezes and unpaid furloughs to assist in achieving a balanced budget. After multiple years of such concessions, the Town discontinued the furlough program in FY 2014/15 and implemented a 2% general wage increase for non- sworn employees and a 1.5% cash payment in lieu of an increase on base salary for sworn employees. A 2% increase in salaries was authorized by Council resolution, effective July 1, 2015 for nonsworn groups and effective October 1, 2015 for sworn personnel. Salary adjustments (if any) for FY 2016/17 are not finalized at this time, as this is a matter of collective bargaining with the Town’s three employee unions. The Town’s three bargaining units are: Association of Federal, State, County and Municipal Employees (AFSCME), Town Employees’ Association (TEA) and Los Gatos Police Officers’ Association (LGPOA). Pension contributions are also a significant portion of the Town’s budget, as the Town is obligated to contribute a mandatory amount established by the California Public Employees Retirement System (CalPERS) as a percent of salary. The rates are established by actuarial formula and are controlled by the policies adopted in the Public Employment Retirement Law (PERL). In June 2014 the Town Council authorized the payoff of the Town’s PERS side fund which substantially reduced the increase to the Town’s employer PERS contribution rate. While the rates continue to increase, the side fund payoff has lessened the effects of the increase. For FY 2016/17, the rate for sworn employees will increase from 32.36% in FY 2015/16 to 36.18% in FY 2016/17. For all other employees, the rate will increase from 25.43% in FY 2015/16 to 26.96% in FY 2016/17. The Public Employees’ Pension Reform Act (PEPRA), effective January 1, 2013, implemented lower pension tiers for employees who are new to the PERS pension system. Under PEPRA, the formula is 2% at age 62 for non-sworn and 2.7% at age 57 for sworn employees. While this does not provide immediate cost savings, it is anticipated to reduce future salary and benefit expenditures in the next 10 to 15 years. The Town’s cost to fund current medical plans experienced an increase for FY 2016/17, the prior year experienced an decrease. The rates may continue to be unstable, creating unpredictability for budget projections. To assist with cost-containment, employees are contributing a share of dependent premiums. Other Cost Drivers – A significant cost driver for the Town is energy costs, including fuel for safety and maintenance vehicles, water for parks and landscaping, natural gas and electricity to heat and cool buildings, and lighting for street lights, parking lots, and Town facilities. The Governor has called for a 25% reduction in potable urban water usage in response to the drought that has impacted the entire state. The Town has taken steps to ensure water reduction and energy efficiency in Town facilities and is looking at ways to reduce fuel costs by utilizing electric vehicles and installing electric vehicle charging stations throughout the Town. Staff will continue to explore energy alternatives to reduce costs. PROPOSED C - 6 TOTAL TOWN REVENUE, EXPENDITURE, & FUND BALANCE TREND INFORMATION Revenue Recovery – On a positive note, all signs indicate that the economy remains strong as the Town is experiencing increases in many economically sensitive revenues such as Property Tax, Transient Occupancy Tax (TOT), and franchise fees for FY 2016/17. General Fund revenues for FY 2016/17 (excluding debt payments and fund transfers in) are 1% greater than budgeted prior year revenues. This increase is largely due to forecasted increases in Property Tax, and Transient Occupancy Tax (TOT) as a result of strong travel and tourism offset by declines in forecasted Sales Tax. PROPOSED C - 7 20 1 2 / 1 3 2 0 1 3 / 1 4 2 0 1 4 / 1 5 2 0 1 5 / 1 6 2 0 1 6 / 1 7 2 0 1 2 / 1 3 2 0 1 3 / 1 4 2 0 1 4 / 1 5 2 0 1 5 / 1 6 2 0 1 6 / 1 7 Ac t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d Ac t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d RE V E N U E S P r o p e r t y T a x 9, 4 7 7 , 0 4 3 $ 9, 0 5 4 , 9 0 8 $ 10 , 1 1 3 , 2 8 7 $ 10 , 1 0 2 , 9 6 0 $ 10 , 4 5 8 , 6 3 3 $ 15 $ 36 $ 17 $ - $ - $ VL F B a c k f i l l 2, 4 3 7 , 4 8 9 2, 6 5 7 , 4 0 4 2, 8 1 8 , 3 1 6 2, 9 8 4 , 0 0 0 3, 0 1 3 , 8 4 0 - - - - - Sa l e s & U s e T a x 8, 7 5 7 , 4 2 8 8, 0 2 9 , 5 7 1 8, 2 0 2 , 6 7 8 8, 0 7 8 , 8 1 2 8, 1 6 4 , 4 0 3 - - - - - Fr a n c h i s e F e e s 2, 0 2 8 , 9 0 3 2, 0 6 3 , 7 5 6 2, 2 1 5 , 4 3 0 2, 1 2 7 , 6 6 0 2, 1 9 1 , 1 2 0 - - - - - T r a n s i e n t O c c u p a n c y T a x 1, 2 9 5 , 8 8 7 1, 5 1 2 , 8 4 6 1, 8 9 6 , 7 2 1 1, 8 0 0 , 0 0 0 1, 9 0 0 , 0 0 0 - - - - - Ot h e r T a x e s 1, 1 6 3 , 5 4 5 1, 1 5 5 , 8 0 2 1, 8 0 9 , 6 2 0 1, 3 0 7 , 0 0 0 1, 3 0 7 , 0 0 0 41 , 2 3 8 38 , 1 4 2 37 , 7 2 3 27 , 4 8 5 37 , 7 7 5 Li c e n s e s & P e r m i t s 3, 0 6 0 , 9 4 8 3, 2 3 5 , 1 2 2 3, 6 8 7 , 3 9 3 3, 1 1 6 , 7 8 0 2, 9 4 6 , 5 8 3 - - - 30 , 0 0 0 30 , 7 8 0 In t e r g o v e r n m e n t a l 92 4 , 6 5 7 81 7 , 6 9 9 1, 0 0 4 , 6 6 1 91 8 , 0 5 8 71 7 , 6 8 4 16 9 , 2 7 0 19 , 3 6 0 17 6 , 7 0 5 10 1 , 8 5 4 70 , 0 0 0 T o w n S e r v i c e s 3, 0 7 0 , 1 2 7 2, 6 8 4 , 1 2 6 2, 6 4 3 , 2 7 6 2, 8 1 8 , 5 5 1 2, 3 7 0 , 0 7 0 40 3 , 2 9 4 32 8 , 6 4 8 32 8 , 8 6 8 33 6 , 6 8 4 33 6 , 6 8 4 In t e r n a l S r v c R e i m b u r s e m e n t - - - - - - - - - - Fi n e s & F o r f e i t u r e s 64 8 , 9 3 9 76 8 , 4 6 7 83 9 , 6 7 0 65 1 , 6 2 5 64 7 , 8 0 0 - - - - - In t e r e s t (1 6 3 , 0 7 0 ) 62 5 , 2 9 8 43 0 , 4 7 6 31 9 , 5 9 0 33 1 , 1 9 3 9, 0 2 1 10 , 8 7 0 2, 6 3 5 1, 0 9 1 64 1 Ot h e r S o u r c e s 2, 6 6 8 , 1 3 6 3, 8 1 6 , 9 7 8 3, 0 3 3 , 6 0 0 3, 0 2 5 , 2 5 8 1, 4 9 4 , 3 7 6 11 , 5 1 3 12 , 3 5 8 3, 3 5 0 - - De b t S e r v i c e R e i m b u r s e m e n t 1, 9 6 3 , 9 7 1 1, 9 3 5 , 5 7 8 1, 9 2 8 , 0 5 6 1, 9 2 2 , 3 9 8 1, 9 2 3 , 3 0 3 - - - - - T r a n s f e r s I n 56 6 , 7 9 9 32 8 , 9 3 8 31 1 , 8 1 0 2, 4 5 0 , 5 3 4 36 3 , 4 2 8 - - 10 0 , 0 0 0 50 , 0 0 0 - TO T A L R E V E N U E S 37 , 9 0 0 , 8 0 2 $ 38 , 6 8 6 , 4 9 3 $ 40 , 9 3 4 , 9 9 4 $ 41 , 6 2 3 , 2 2 6 $ 37 , 8 2 9 , 4 3 3 $ 63 4 , 3 5 1 $ 40 9 , 4 1 4 $ 64 9 , 2 9 8 $ 54 7 , 1 1 4 $ 47 5 , 8 8 0 $ EX P E N D I T U R E S Sa l a r i e s & B e n e f i t s 20 , 6 3 4 , 8 3 5 $ 25 , 0 3 6 , 7 0 2 $ 20 , 6 5 8 , 1 7 3 $ 20 , 9 1 6 , 7 5 9 $ 23 , 5 1 9 , 9 3 9 $ 93 , 1 0 1 $ 65 , 1 6 3 $ 10 8 , 5 5 6 $ 10 9 , 1 6 1 $ 15 4 , 2 5 6 $ Op e r a t i n g E x p e n d i t u r e s 7, 2 3 0 , 3 2 9 8, 0 2 0 , 3 7 2 8, 4 6 0 , 6 8 5 8, 3 6 9 , 0 1 2 7, 7 8 9 , 6 9 3 27 8 , 3 8 6 27 1 , 5 8 1 31 9 , 4 6 8 37 5 , 3 9 9 39 3 , 5 2 1 Gr a n t s & A w a r d s 16 0 , 2 1 6 16 0 , 6 0 7 17 6 , 5 2 6 17 4 , 8 0 0 18 4 , 8 0 0 13 , 0 9 4 - - - - Fi x e d A s s e t s 30 , 6 2 9 62 , 7 5 6 75 , 4 4 2 36 0 , 8 7 7 - - - - 30 , 0 0 0 52 , 5 0 0 In t e r e s t - - - - - 13 5 - - - - In t e r n a l S e r v i c e C h a r g e s 3, 3 4 7 , 8 8 4 3, 3 7 7 , 0 3 1 3, 3 2 5 , 3 7 3 3, 5 3 4 , 3 2 6 3, 6 4 4 , 5 3 4 5, 4 1 6 3, 1 3 9 4, 8 6 7 5, 6 2 5 8, 2 0 8 Ca p i t a l P r o j e c t s - - - - - - - - - - Ca p i t a l A c q u i s i t i o n s - - - - - - - - - - De b t S e r v i c e 1, 9 6 3 , 9 7 1 1, 9 3 5 , 5 7 8 1, 9 2 8 , 0 5 6 1, 9 2 2 , 3 9 8 1, 9 2 3 , 3 0 3 - - - - - T r a n s f e r s O u t 2, 0 4 3 , 6 9 5 2, 8 9 1 , 3 8 4 7, 3 8 6 , 4 9 1 52 8 , 7 9 4 9, 8 5 9 , 9 7 3 17 4 , 1 9 0 24 , 2 8 0 18 1 , 6 2 5 77 , 8 7 2 74 , 9 2 0 TO T A L E X P E N D I T U R E S 35 , 4 1 1 , 5 5 9 $ 41 , 4 8 4 , 4 3 0 $ 42 , 0 1 0 , 7 4 6 $ 35 , 8 0 6 , 9 6 6 $ 46 , 9 2 2 , 2 4 2 $ 56 4 , 3 2 2 $ 36 4 , 1 6 3 $ 61 4 , 5 1 6 $ 59 8 , 0 5 7 $ 68 3 , 4 0 5 $ Ne t I n c r e a s e ( D e c r e a s e ) 2, 4 8 9 , 2 4 3 (2 , 7 9 7 , 9 3 7 ) (1 , 0 7 5 , 7 5 2 ) 5, 8 1 6 , 2 6 0 (9 , 0 9 2 , 8 0 9 ) 70 , 0 2 9 45 , 2 5 1 34 , 7 8 2 (5 0 , 9 4 3 ) (2 0 7 , 5 2 5 ) Be g i n n i n g F u n d B a l a n c e 23 , 4 8 7 , 8 1 1 25 , 9 7 7 , 0 5 4 23 , 1 7 9 , 1 1 7 22 , 1 0 3 , 3 6 5 27 , 9 1 9 , 6 2 5 23 7 , 0 2 3 30 7 , 0 5 2 35 2 , 3 0 3 38 7 , 0 8 5 33 6 , 1 4 2 E n d i n g F u n d B a l a n c e 25 , 9 7 7 , 0 5 4 $ 23 , 1 7 9 , 1 1 7 $ 22 , 1 0 3 , 3 6 5 $ 27 , 9 1 9 , 6 2 5 $ 18 , 8 2 6 , 8 1 6 $ 30 7 , 0 5 2 $ 35 2 , 3 0 3 $ 38 7 , 0 8 5 $ 33 6 , 1 4 2 $ 12 8 , 6 1 7 $ TO T A L T O W N RE V E N U E S , E X P E N D I T U R E S & F U N D B A L A N C E F I V E - Y E A R S U M M A R Y GE N E R A L F U N D S P E C I A L R E V E N U E F U N D S PROPOSED C - 8 20 1 2 / 1 3 2 0 1 3 / 1 4 2 0 1 4 / 1 5 2 0 1 5 / 1 6 2 0 1 6 / 1 7 2 0 1 2 / 1 3 2 0 1 3 / 1 4 2 0 1 4 / 1 5 2 0 1 5 / 1 6 2 0 1 6 / 1 7 Ac t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d Ac t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d RE V E N U E S Pr o p e r t y T a x - $ - $ - $ - $ - $ 1, 2 1 8 $ 61 $ - $ - $ - $ VL F B a c k f i l l - - - - - - - - - - Sa l e s & U s e T a x - - - - - - - - - - Fr a n c h i s e F e e s - - - - - - - - - - T r a n s i e n t O c c u p a n c y T a x - - - - - - - - - - Ot h e r T a x e s 53 , 7 5 5 11 6 , 0 2 0 13 5 , 9 5 9 40 , 0 0 0 40 , 0 0 0 53 , 4 1 7 - - - - Li c e n s e s & P e r m i t s - - - - - - - - - - In t e r g o v e r n m e n t a l - - - - - - - - - - T o w n S e r v i c e s 14 2 , 2 8 2 16 2 , 8 8 4 16 2 , 9 9 9 11 2 , 0 0 0 95 , 0 0 0 - - - - - In t e r n a l S r v c R e i m b u r s e m e n t 4, 0 7 9 , 6 2 7 4, 1 0 6 , 2 1 9 4, 1 0 6 , 9 5 5 4, 5 3 2 , 0 6 1 4, 6 7 6 , 9 1 6 - - - - - Fi n e s & F o r f e i t u r e s - - - - - - - - - - In t e r e s t 10 10 5 - - 6, 9 6 8 14 , 3 2 8 (1 , 8 6 9 ) 2, 6 5 0 2, 1 5 0 Ot h e r S o u r c e s 33 7 , 7 4 8 43 9 , 7 9 8 73 3 , 8 7 8 30 7 , 1 2 8 21 7 , 3 3 8 28 , 1 5 0 38 , 2 0 0 37 , 3 0 4 71 , 4 5 0 67 , 0 0 0 CI P P r o j R e i m b u r s e m e n t - - - - - - - - - - T r a n s f e r s I n - - 53 1 , 0 6 6 - - - - - 1, 3 8 0 - TO T A L R E V E N U E S 4, 6 1 3 , 4 2 2 $ 4, 8 2 4 , 9 3 1 $ 5, 6 7 0 , 8 6 2 $ 4, 9 9 1 , 1 8 9 $ 5, 0 2 9 , 2 5 4 $ 89 , 7 5 3 $ 52 , 5 8 9 $ 35 , 4 3 5 $ 75 , 4 8 0 $ 69 , 1 5 0 $ EX P E N D I T U R E S Sa l a r i e s & B e n e f i t s 1, 0 4 7 , 2 6 9 $ 1, 0 5 0 , 0 9 2 $ 1, 1 9 2 , 2 1 4 $ 1, 2 6 6 , 8 2 9 $ 1, 3 5 8 , 7 7 8 $ - $ 12 3 $ - $ - $ - $ Op e r a t i n g E x p e n d i t u r e s 3, 0 5 5 , 3 1 2 3, 7 0 5 , 7 5 7 3, 1 0 6 , 7 0 2 3, 8 1 1 , 9 0 8 3, 9 2 7 , 1 2 7 11 8 , 5 8 4 11 2 , 1 0 5 87 , 7 4 4 16 9 , 6 3 5 32 , 0 0 0 Gr a n t s & A w a r d s - - - - - - - - - - Fi x e d A s s e t s 38 4 , 5 7 6 33 6 , 7 0 9 28 0 , 3 5 7 81 9 , 4 7 8 47 5 , 5 6 5 - - - - - In t e r e s t - - - - - 14 0 , 7 0 1 14 0 , 3 6 6 - - - In t e r n a l S e r v i c e C h a r g e s 38 1, 1 2 9 - - - - - - - - Ca p i t a l P r o j e c t s - - - - - - - - - - Ca p i t a l A c q u i s i t i o n s - - - - - - - - - - De b t S e r v i c e - - - - - - - - - - T r a n s f e r s O u t 5, 8 2 0 16 8 , 9 5 6 1, 4 4 0 , 7 1 4 1, 6 8 8 , 6 8 7 - 20 , 0 0 0 - - 36 , 3 8 0 35 , 0 0 0 TO T A L E X P E N D I T U R E S 4, 4 9 3 , 0 1 5 $ 5, 2 6 2 , 6 4 3 $ 6, 0 1 9 , 9 8 7 $ 7, 5 8 6 , 9 0 2 $ 5, 7 6 1 , 4 7 0 $ 27 9 , 2 8 5 $ 25 2 , 5 9 4 $ 87 , 7 4 4 $ 20 6 , 0 1 5 $ 67 , 0 0 0 $ Ne t I n c r e a s e ( D e c r e a s e ) 12 0 , 4 0 7 (4 3 7 , 7 1 2 ) (3 4 9 , 1 2 5 ) (2 , 5 9 5 , 7 1 3 ) (7 3 2 , 2 1 6 ) (1 8 9 , 5 3 2 ) (2 0 0 , 0 0 5 ) (5 2 , 3 0 9 ) (1 3 0 , 5 3 5 ) 2, 1 5 0 Be g i n n i n g F u n d B a l a n c e 11 , 2 5 1 , 4 8 7 11 , 3 7 1 , 8 9 4 10 , 9 3 4 , 1 8 2 10 , 5 8 5 , 0 5 7 7, 9 8 9 , 3 4 4 1, 1 7 0 , 9 5 3 98 1 , 4 2 1 78 1 , 4 1 6 72 9 , 1 0 7 59 8 , 5 7 2 E n d i n g F u n d B a l a n c e 11 , 3 7 1 , 8 9 4 $ 10 , 9 3 4 , 1 8 2 $ 10 , 5 8 5 , 0 5 7 $ 7, 9 8 9 , 3 4 4 $ 7, 2 5 7 , 1 2 8 $ 98 1 , 4 2 1 $ 78 1 , 4 1 6 $ 72 9 , 1 0 7 $ 59 8 , 5 7 2 $ 60 0 , 7 2 2 $ IN T E R N A L S E R V I C E F U N D S TO T A L T O W N RE V E N U E S , E X P E N D I T U R E S & F U N D B A L A N C E F I V E - Y E A R S U M M A R Y LI B R A R Y T R U S T S & P A R K I N G A S S E S S M E N T F U N D S PROPOSED C - 9 20 1 2 / 1 3 20 1 3 / 1 4 2 0 1 4 / 1 5 2 0 1 5 / 1 6 2 0 1 6 / 1 7 2 0 1 2 / 1 3 2 0 1 3 / 1 4 2 0 1 4 / 1 5 2 0 1 5 / 1 6 2 0 1 6 / 1 7 Ac t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d Ac t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d RE V E N U E S P r o p e r t y T a x - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ VL F B a c k f i l l - - - - - - - - - - Sa l e s & U s e T a x - - - - - - - - - - Fr a n c h i s e F e e s - - - - - - - - - - T r a n s i e n t O c c u p a n c y T a x - - - - - - - - - - Ot h e r T a x e s 53 , 8 4 5 11 6 , 0 2 0 13 5 , 9 5 9 30 , 0 0 0 30 , 0 0 0 - - - - - Li c e n s e s & P e r m i t s 63 5 , 0 7 7 95 6 , 7 8 0 1, 2 3 0 , 0 6 8 61 8 , 5 0 0 52 0 , 5 0 0 - - - - - In t e r g o v e r n m e n t a l 1, 5 2 1 , 2 6 4 1, 6 0 3 , 0 6 8 1, 7 3 9 , 6 3 6 1, 6 3 1 , 2 2 4 1, 3 6 5 , 8 4 3 25 0 , 0 0 0 11 0 , 6 3 5 10 3 , 0 0 9 87 , 7 9 8 21 , 1 6 3 T o w n S e r v i c e s - 13 , 8 0 0 - - - - - - - - In t e r n a l S r v c R e i m b u r s e m e n t - - - - - - - - - - Fi n e s & F o r f e i t u r e s - - - - - - - - - - In t e r e s t 20 , 6 6 8 13 5 , 9 9 6 (4 , 3 7 6 ) 51 , 1 2 0 52 , 3 8 0 1, 0 8 4 22 4 3, 5 4 4 1, 6 6 0 1, 6 5 0 Ot h e r S o u r c e s 2, 7 0 9 , 1 2 4 64 7 , 0 0 0 66 8 , 9 5 6 78 2 , 5 7 2 92 7 , 8 6 9 - - - - - CI P P r o j R e i m b u r s e m e n t - - - - - 3, 9 2 1 , 8 4 9 3, 8 9 2 , 0 0 6 3, 8 9 2 , 5 3 0 3, 8 4 8 , 3 1 6 3, 8 5 0 , 1 2 6 SC C R P T T F R e i m b u r s e m e n t - - - - - - - - - - T r a n s f e r s I n 2, 2 1 8 , 7 8 5 3, 0 5 8 , 0 1 3 8, 4 1 1 , 0 5 7 75 6 , 7 4 6 9, 9 2 9 , 9 7 3 1, 2 7 7 , 0 6 3 21 , 6 8 7 - - - TO T A L R E V E N U E S 7, 1 5 8 , 7 6 3 $ 6, 5 3 0 , 6 7 7 $ 12 , 1 8 1 , 3 0 0 $ 3, 8 7 0 , 1 6 2 $ 12 , 8 2 6 , 5 6 5 $ 5, 4 4 9 , 9 9 6 $ 4, 0 2 4 , 5 5 2 $ 3, 9 9 9 , 0 8 3 $ 3, 9 3 7 , 7 7 4 $ 3, 8 7 2 , 9 3 9 $ EX P E N D I T U R E S Sa l a r i e s & B e n e f i t s - $ - $ - $ - $ - $ 24 , 1 0 5 $ 12 , 0 3 2 $ 13 , 4 5 5 $ 14 , 1 2 5 $ 1, 4 3 5 $ Op e r a t i n g E x p e n d i t u r e s - - - 10 , 6 6 2 - 60 7 , 4 5 6 26 4 , 6 4 8 5, 5 6 5 5, 3 5 7 15 , 4 5 8 Gr a n t s & A w a r d s - - - - - - - - - - Fi x e d A s s e t s - - - - - - - - - - In t e r e s t - - - - - 96 6 , 0 0 0 95 5 , 0 0 0 99 0 , 0 0 0 1, 0 2 5 , 0 0 0 1, 0 6 5 , 0 0 0 In t e r n a l S e r v i c e C h a r g e s - - - - - 3, 6 3 5 2, 9 1 5 55 2 - 56 Ca p i t a l P r o j e c t s 6, 1 6 5 , 8 1 4 3, 7 0 6 , 4 0 3 3, 6 3 9 , 6 3 8 12 , 2 8 2 , 9 9 3 14 , 6 4 8 , 3 6 6 - - - - - Ca p i t a l A c q u i s i t i o n s - - - - - - - - - - De b t S e r v i c e - - - - - 3, 0 9 8 , 1 1 1 2, 9 1 6 , 1 5 6 2, 8 6 6 , 1 1 1 2, 8 1 9 , 7 9 6 2, 7 8 1 , 6 0 6 T r a n s f e r s O u t 1, 5 2 3 , 0 2 8 21 3 , 3 8 3 21 9 , 9 3 3 80 7 , 6 7 3 31 5 , 8 0 8 29 5 , 9 1 3 11 0 , 6 3 5 12 5 , 1 6 9 11 4 , 2 5 4 7, 7 0 0 TO T A L E X P E N D I T U R E S 7, 6 8 8 , 8 4 2 $ 3, 9 1 9 , 7 8 6 $ 3, 8 5 9 , 5 7 1 $ 13 , 1 0 1 , 3 2 8 $ 14 , 9 6 4 , 1 7 4 $ 4, 9 9 5 , 2 2 0 $ 4, 2 6 1 , 3 8 6 $ 4, 0 0 0 , 8 5 2 $ 3, 9 7 8 , 5 3 2 $ 3, 8 7 1 , 2 5 5 $ Ne t I n c r e a s e ( D e c r e a s e ) (5 3 0 , 0 7 9 ) 2, 6 1 0 , 8 9 1 8, 3 2 1 , 7 2 9 (9 , 2 3 1 , 1 6 6 ) (2 , 1 3 7 , 6 0 9 ) 45 4 , 7 7 6 (2 3 6 , 8 3 4 ) (1 , 7 6 9 ) (4 0 , 7 5 8 ) 1, 6 8 4 Be g i n n i n g F u n d B a l a n c e 10 , 4 2 7 , 0 0 5 9, 8 9 6 , 9 2 6 12 , 5 0 7 , 8 1 7 20 , 8 2 9 , 5 4 6 11 , 5 9 8 , 3 8 0 3, 3 9 7 , 5 5 3 3, 8 5 2 , 3 2 9 3, 6 1 5 , 4 9 5 3, 6 1 3 , 7 2 6 3, 5 7 2 , 9 6 8 E n d i n g F u n d B a l a n c e 9, 8 9 6 , 9 2 6 $ 12 , 5 0 7 , 8 1 7 $ 20 , 8 2 9 , 5 4 6 $ 11 , 5 9 8 , 3 8 0 $ 9, 4 6 0 , 7 7 1 $ 3, 8 5 2 , 3 2 9 $ 3, 6 1 5 , 4 9 5 $ 3, 6 1 3 , 7 2 6 $ 3, 5 7 2 , 9 6 8 $ 3, 5 7 4 , 6 5 2 $ TO T A L T O W N RE V E N U E S , E X P E N D I T U R E S & F U N D B A L A N C E F I V E - Y E A R S U M M A R Y C A P I T A L P R O J E C T F U N D S S U C C E S S O R A G E N C Y T O T H E L O S G A T O S R D A PROPOSED C - 10 20 1 2 / 1 3 2 0 1 3 / 1 4 2 0 1 4 / 1 5 2 0 1 5 / 1 6 2 0 1 6 / 1 7 Ac t u a l s A c t u a l s A c t u a l s Es t i m a t e d Pr o p o s e d RE V E N U E S Pr o p e r t y T a x 9, 4 7 8 , 2 7 6 $ 9, 0 5 5 , 0 0 5 $ 10 , 1 1 3 , 3 0 4 $ 10 , 1 0 2 , 9 6 0 $ 10 , 4 5 8 , 6 3 3 $ VL F B a c k f i l l 2, 4 3 7 , 4 8 9 2, 6 5 7 , 4 0 4 2, 8 1 8 , 3 1 6 2, 9 8 4 , 0 0 0 3, 0 1 3 , 8 4 0 Sa l e s & U s e T a x 8, 7 5 7 , 4 2 8 8, 0 2 9 , 5 7 1 8, 2 0 2 , 6 7 8 8, 0 7 8 , 8 1 2 8, 1 6 4 , 4 0 3 Fr a n c h i s e F e e s 2, 0 2 8 , 9 0 3 2, 0 6 3 , 7 5 6 2, 2 1 5 , 4 3 0 2, 1 2 7 , 6 6 0 2, 1 9 1 , 1 2 0 T r a n s i e n t O c c u p a n c y T a x 1, 2 9 5 , 8 8 7 1, 5 1 2 , 8 4 6 1, 8 9 6 , 7 2 1 1, 8 0 0 , 0 0 0 1, 9 0 0 , 0 0 0 Ot h e r T a x e s 1, 3 6 5 , 8 0 0 1, 4 2 5 , 9 8 4 2, 1 1 9 , 2 6 1 1, 4 0 4 , 4 8 5 1, 4 1 4 , 7 7 5 Li c e n s e s & P e r m i t s 3, 6 9 6 , 0 2 5 4, 1 9 1 , 9 0 2 4, 9 1 7 , 4 6 1 3, 7 6 5 , 2 8 0 3, 4 9 7 , 8 6 3 In t e r g o v e r n m e n t a l 2, 8 6 5 , 1 9 1 2, 5 5 0 , 7 6 2 3, 0 2 4 , 0 1 1 2, 7 3 8 , 9 3 4 2, 1 7 4 , 6 9 0 T o w n S e r v i c e s 3, 6 1 5 , 7 0 3 3, 1 8 9 , 4 5 8 3, 1 3 5 , 1 4 3 3, 2 6 7 , 2 3 5 2, 8 0 1 , 7 5 4 In t e r n a l S r v c R e i m b u r s e m e n t 4, 0 7 9 , 6 2 7 4, 1 0 6 , 2 1 9 4, 1 0 6 , 9 5 5 4, 5 3 2 , 0 6 1 4, 6 7 6 , 9 1 6 Fi n e s & F o r f e i t u r e s 64 8 , 9 3 9 76 8 , 4 6 7 83 9 , 6 7 0 65 1 , 6 2 5 64 7 , 8 0 0 In t e r e s t (1 2 5 , 3 1 9 ) 78 6 , 7 2 6 43 0 , 4 1 5 37 6 , 1 1 1 38 8 , 0 1 4 Ot h e r S o u r c e s 5, 7 5 4 , 6 7 1 4, 9 5 4 , 3 3 4 4, 4 7 7 , 0 8 8 4, 1 8 6 , 4 0 8 2, 7 0 6 , 5 8 3 CI P P r o j R e i m b u r s e m e n t 5, 8 8 5 , 8 2 0 5, 8 2 7 , 5 8 4 5, 8 2 0 , 5 8 6 5, 7 7 0 , 7 1 4 5, 7 7 3 , 4 2 9 SC C R P T T F R e i m b u r s e m e n t - - - - - T r a n s f e r s I n 4, 0 6 2 , 6 4 7 3, 4 0 8 , 6 3 8 9, 3 5 3 , 9 3 3 3, 2 5 8 , 6 6 0 10 , 2 9 3 , 4 0 1 TO T A L R E V E N U E S 55 , 8 4 7 , 0 8 7 $ 54 , 5 2 8 , 6 5 6 $ 63 , 4 7 0 , 9 7 2 $ 55 , 0 4 4 , 9 4 5 $ 60 , 1 0 3 , 2 2 1 $ EX P E N D I T U R E S Sa l a r i e s & B e n e f i t s 21 , 7 9 9 , 3 1 0 $ 26 , 1 6 4 , 1 1 2 $ 21 , 9 7 2 , 3 9 8 $ 22 , 3 0 6 , 8 7 4 $ 25 , 0 3 4 , 4 0 8 $ Op e r a t i n g E x p e n d i t u r e s 11 , 2 9 0 , 0 6 7 12 , 3 7 4 , 4 6 3 11 , 9 8 0 , 1 6 4 12 , 7 4 1 , 9 7 3 12 , 1 5 7 , 7 9 9 Gr a n t s & A w a r d s 17 3 , 3 1 0 16 0 , 6 0 7 17 6 , 5 2 6 17 4 , 8 0 0 18 4 , 8 0 0 Fi x e d A s s e t s 41 5 , 2 0 5 39 9 , 4 6 5 35 5 , 7 9 9 1, 2 1 0 , 3 5 5 52 8 , 0 6 5 In t e r e s t 1, 1 0 6 , 8 3 6 1, 0 9 5 , 3 6 6 99 0 , 0 0 0 1, 0 2 5 , 0 0 0 1, 0 6 5 , 0 0 0 In t e r n a l S e r v i c e C h a r g e s 3, 3 5 6 , 9 7 3 3, 3 8 4 , 2 1 4 3, 3 3 0 , 7 9 2 3, 5 3 9 , 9 5 1 3, 6 5 2 , 7 9 8 Ca p i t a l P r o j e c t s 6, 1 6 5 , 8 1 4 3, 7 0 6 , 4 0 3 3, 6 3 9 , 6 3 8 12 , 2 8 2 , 9 9 3 14 , 6 4 8 , 3 6 6 Ca p i t a l A c q u i s i t i o n s - - - - - D eb t S e r v i c e 5, 0 6 2 , 0 8 2 4, 8 5 1 , 7 3 4 4, 7 9 4 , 1 6 7 4, 7 4 2 , 1 9 4 4, 7 0 4 , 9 0 9 T r a n s f e r s O u t 4, 0 6 2 , 6 4 6 3, 4 0 8 , 6 3 8 9, 3 5 3 , 9 3 2 3, 2 5 3 , 6 6 0 10 , 2 9 3 , 4 0 1 TO T A L E X P E N D I T U R E S 53 , 4 3 2 , 2 4 3 $ 55 , 5 4 5 , 0 0 2 $ 56 , 5 9 3 , 4 1 6 $ 61 , 2 7 7 , 8 0 0 $ 72 , 2 6 9 , 5 4 6 $ Ne t I n c r e a s e ( D e c r e a s e ) 2, 4 1 4 , 8 4 4 (1 , 0 1 6 , 3 4 6 ) 6, 8 7 7 , 5 5 6 (6 , 2 3 2 , 8 5 5 ) (1 2 , 1 6 6 , 3 2 5 ) Be g i n n i n g F u n d B a l a n c e 49 , 9 7 1 , 8 3 2 52 , 3 8 6 , 6 7 6 51 , 3 7 0 , 3 3 0 58 , 2 4 7 , 8 8 6 52 , 0 1 5 , 0 3 1 E n d i n g F u n d B a l a n c e 52 , 3 8 6 , 6 7 6 $ 51 , 3 7 0 , 3 3 0 $ 58 , 2 4 7 , 8 8 6 $ 52 , 0 1 5 , 0 3 1 $ 39 , 8 4 8 , 7 0 6 $ TO T A L A L L F U N D S PROPOSED C - 11 TOTAL TOWN REVENUES BY FUND (Includes Transfers In) 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Change Fund Fund Name Actuals Actuals Actuals Adopted Estimated Proposed from PY General Fund 111 General Fund 37,900,802$ 38,686,493$ 40,934,994$ 37,473,951$ 41,623,226$ 37,829,433$ 0.9% Special Revenue Funds 221 Solid Waste Fund - - - - - - 0.0% 211 Housing Conservation Program 19,762 20,006 6,823 - - - 0.0% 212 Community Dev Block Grant 169,270 19,360 176,705 70,000 101,854 70,000 0.0% 222 Urban Run-Off Source Fund 403,294 328,648 428,868 416,684 416,684 367,464 -11.8% 231 Blackwell Assessment District 3,192 3,310 3,113 3,210 3,210 3,210 0.0% 232 Kennedy Assessment District 13,174 11,132 10,089 - 276 10,337 0.0% 233 Gemini Assessment District 4,226 4,595 3,936 4,276 4,261 4,187 -2.1% 234 Santa Rosa Assessment District 4,844 5,485 4,305 4,960 4,912 4,800 -3.2% 235 Vasona Assessment District 10,616 10,656 9,570 9,959 9,967 9,885 -0.7% 236 Hillbrook Assessment District 5,973 6,223 5,887 5,994 5,950 5,997 0.1% Internal Service Funds 611 ABAG Self Insurance 486,986 497,185 985,397 529,575 489,856 535,398 1.1% 612 Worker's Comp Self Insurance 691,718 835,409 1,004,574 926,884 961,264 934,118 0.8% 621 Management Information Systems 1,039,540 1,038,393 1,089,254 1,084,088 1,101,088 1,127,676 4.0% 622 Office Stores Fund 88,616 98,057 147,983 95,000 95,000 95,000 0.0% 631 Equipment Replacement 528,775 506,979 536,018 490,826 501,093 381,322 -22.3% 632 Facilities Maintenance 537,448 528,887 570,003 571,670 571,670 573,865 0.4% 633 Vehicle Maintenance 1,240,338 1,320,023 1,337,633 1,265,218 1,271,218 1,381,875 9.2% Trust & Agency Funds 710 Friends of the Library - - - - - - 0.0% 711 Library Trust 26,501 36,797 37,357 57,096 71,850 67,400 18.0% 712 Library History Project 1,962 97 (2) - 1,380 - 0.0% 713 Ness Trust Bequest 1,179 3,741 (851) 1,500 1,000 500 -66.7% 714 Betty McClendon Trust 613 1,867 (309) 815 750 750 -8.0% 716 Barbara J Cassin Trust 3,408 7,382 (1,125) 500 500 500 0.0% 721 Parking District #88 56,089 2,703 365 - - - 0.0% Capital Projects Funds 411 GFAR 4,178,189 4,182,948 9,946,793 1,434,000 1,929,642 10,972,973 665.2% 421 Grant Funded CIP Projects 790,772 507,181 870,911 70,000 510,765 645,000 821.4% 461 Storm Drain #1 106,754 144,872 218,895 48,120 48,120 49,000 1.8% 462 Storm Drain #2 110,388 74,709 37,833 53,000 53,000 53,380 0.7% 463 Storm Drain #3 18,911 473 5,172 4,000 1,500 1,500 -62.5% 471 Traffic Mitigation 1,152,480 506,005 90,612 605,000 591,852 422,869 -30.1% 472 Construction Tax-Undergrounding 69,226 168,242 126,561 60,000 50,000 50,000 -16.7% 481 Gas Tax 732,046 946,246 884,525 658,623 685,283 631,843 -4.1% Successor Agency to the Los Gatos RDA Funds 911 SA - Administration - - - - - - 0.0% 921 SA - Debt Service - - - - - - 0.0% 931 SA - Low / Moderate Housing - - - - - - 0.0% 941 SA - Recognized Obligation Retiremen - - - - - - 0.0% 942 SA - Recognized Obligation Retiremen 5,449,995 4,024,552 3,999,083 3,989,479 3,937,774 3,872,939 -2.9% 943 SA- Trust Fund - - - - - - 0.0% TOTAL Fund Rev & Transfers In 55,847,087$ 54,528,656$ 63,470,972$ 49,934,428$ 55,044,945$ 60,103,221$ 20.4% PROPOSED C - 12 TOTAL TOWN REVENUES BY FUND 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Actuals Actuals Actuals Adopted Estimated Proposed Total General Fund 37,900,802$ 38,686,493$ 40,934,994$ 37,473,951$ 41,623,226$ 37,829,433$ 62.9% Special Revenue Funds 634,351 409,415 649,296 515,083 547,114 475,880 0.8% Internal Service Funds 4,613,421 4,824,933 5,670,862 4,963,261 4,991,189 5,029,254 8.4% Trust & Agency Funds 89,752 52,587 35,435 59,911 75,480 69,150 0.1% Capital Project Funds 7,158,766 6,530,676 12,181,302 2,932,743 3,870,162 12,826,565 21.3% Successor Agency Funds 5,449,995 4,024,552 3,999,083 3,989,479 3,937,774 3,872,939 6.4% Total Rev & Transfers In 55,847,087$ 54,528,656$ 63,470,972$ 49,934,428$ 55,044,945$ 60,103,221$ 100.0% FY 2016/17 Revenues By Fund PROPOSED C - 13 TOTAL TOWN EXPENDITURES BY FUND (Includes Transfers Out) 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Change Fund Fund Name Actuals Actuals Actuals Adopted Estimated Proposed from PY General Fund 111 General Fund 35,411,559$ 41,484,431$ 42,010,746$ 37,876,373$ 35,806,966$ 46,922,242$ 23.9% Special Revenue Funds 221 Solid Waste Fund - - - - - - 0.0% 211 Housing Conservation Program 135 - - - - - 0.0% 212 Community Dev Block Grant 182,364 19,360 176,705 70,000 72,952 70,000 0.0% 222 Urban Run-Off Source Fund 359,728 322,814 411,861 499,053 469,935 533,935 7.0% 231 Blackwell Assessment District 2,316 2,411 1,987 2,466 2,022 9,852 299.5% 232 Kennedy Assessment District 4,552 4,557 3,348 4,719 38,783 8,634 83.0% 233 Gemini Assessment District 1,905 1,851 6,767 2,166 1,401 11,701 440.2% 234 Santa Rosa Assessment District 3,891 3,837 3,107 4,200 3,255 13,255 215.6% 235 Vasona Assessment District 5,670 5,306 4,504 5,466 7,325 18,644 241.1% 236 Hillbrook Assessment District 3,761 4,026 6,238 3,794 2,384 17,384 358.2% Internal Service Funds 611 ABAG Self Insurance 730,092 792,660 474,795 790,094 798,218 808,361 2.3% 612 Worker's Comp Self Insurance 745,442 1,505,626 1,066,415 1,367,951 1,225,673 1,258,810 -8.0% 621 Management Information Systems 1,017,187 872,826 901,293 1,254,373 1,103,625 1,351,188 7.7% 622 Office Stores Fund 135,973 107,977 109,320 127,150 128,371 51,000 -59.9% 631 Equipment Replacement 401,643 337,867 306,698 739,221 2,316,897 336,369 -54.5% 632 Facilities Maintenance 457,363 389,820 987,999 571,670 532,678 573,866 0.4% 633 Vehicle Maintenance 1,005,315 1,255,868 2,173,467 1,531,278 1,481,440 1,381,875 -9.8% Trust & Agency Funds 710 Friends of the Library - - - - - - 0.0% 711 Library Trust 43,225 18,812 30,018 90,750 69,490 67,000 -26.2% 712 Library History Project 1,957 2,233 - - - - 0.0% 713 Ness Trust Bequest - 5,638 15,978 75,000 134,025 - -100.0% 714 Betty McClendon Trust - 4,716 7,829 10,000 2,500 - -100.0% 716 Barbara J Cassin Trust 90,449 80,829 33,918 60,000 - - -100.0% 721 Parking District #88 143,655 140,366 - - - - 0.0% Capital Projects Funds 411 GFAR 4,777,049 2,493,749 2,717,504 4,165,934 10,397,073 13,218,306 217.3% 421 Grant Funded CIP Projects 761,467 153,935 952,169 70,000 459,190 645,000 821.4% 461 Storm Drain #1 241,845 - - - - - 0.0% 462 Storm Drain #2 - - - - 150,000 - 0.0% 463 Storm Drain #3 - - - - - - 0.0% 471 Traffic Mitigation 1,152,480 453,811 83,897 605,000 571,852 402,869 -33.4% 472 Construction Tax-Undergrounding - - - 28,000 28,000 42,000 50.0% 481 Gas Tax 756,000 818,290 106,000 706,000 1,495,214 656,000 -7.1% Successor Agency to the Los Gatos RDA Funds 911 SA - Administration - - - - - - 0.0% 921 SA - Debt Service - - - - - - 0.0% 931 SA - Low / Moderate Housing - - - - - - 0.0% 941 SA - Recognized Obligation Retirement - - - - - - 0.0% 942 SA- Trust Fund 4,995,220 4,261,386 4,000,853 3,989,479 3,978,532 3,871,255 TOTAL Fund Exp & Transfers Out 53,432,243$ 55,545,002$ 56,593,416$ 54,650,137$ 61,277,801$ 72,269,546$ 32.2% PROPOSED C - 14 TOTAL TOWN EXPENDITURES BY FUND 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % Actuals Actuals Actuals Adopted Estimated Proposed of Total General Fund 35,411,559$ 41,484,431$ 42,010,746$ 37,876,373$ 35,806,966$ 46,922,242$ 64.9% Special Revenue Funds 564,322 364,162 614,517 591,864 598,057 683,405 0.9% Internal Service Funds 4,493,015 5,262,644 6,019,987 6,381,737 7,586,902 5,761,469 8.0% Trust & Agency Funds 279,286 252,594 87,743 235,750 206,015 67,000 0.1% Capital Project Funds 7,688,841 3,919,785 3,859,570 5,574,934 13,101,329 14,964,175 20.7% Successor Agency Funds 4,995,220 4,261,386 4,000,853 3,989,479 3,978,532 3,871,255 5.4% Total Exp & Transfers Out 53,432,243$ 55,545,002$ 56,593,416$ 54,650,137$ 61,277,801$ 72,269,546$ 100.0% PROPOSED C - 15 TOTAL TOWN REVENUES BY CATEGORY FY 2016/17 Budgeted Revenues Total Budgeted Revenues (exclusive of Transfers In) has increased from prior year budgeted, as the Town will be experiencing revenue growth in some of the key economically sensitive revenue categories of Property Tax, Transient Occupancy Tax, VLF Backfill, Business License Tax. Key revenue highlights include: Property Tax – Property Tax revenues have increased by 15% as home sales continue to rise with the improving economy and low interest rates. Sales and Use Tax – While the Town only receives 1 cent of the 8.75 cents of sales tax paid per dollar of taxable sales generated in Town, Sales and Use Tax remains one of the General Fund’s largest revenue sources. The FY 2016/17 budget reflects $8.2 million in sales tax revenue, or a 2% decrease compared to the prior year budgeted amount. The negative impact is associated in part with increased online versus local brick and mortar shopping. Licenses and Permits – FY 2016/17 Licenses and Permits reflect a 4% decrease as development permits are projected to be decreasing due to the slowing down of large scale building projects. Intergovernmental Revenues –Increases in intergovernmental revenues are due to the several anticipated capital grant in next fiscal year. Transient Occupancy Tax– Transient Occupancy Tax (TOT) is expected to increase by 27% from FY 2015/16 budgeted amount of $1.5 million as travel and tourism has increased and is projected to continue increasing with the positive economy. Other Sources – This revenue reflects lease reimbursement revenue received from the Successor Agency to the Los Gatos Redevelopment Agency for 2002 and 2010 Certificates of Participation (COPs) debt service payments for the bond issues. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Revenues Actuals Actuals Actuals Adopted Estimated Proposed Total Property Tax 9,478,275$ 9,055,004$ 10,113,303$ 9,127,537$ 10,102,960$ 10,458,633$ 17.4% VLF Backfill Property Tax 2,437,489 2,657,404 2,818,316 2,833,750 2,984,000 3,013,840 5.0% Sales & Use Tax 8,757,428 8,029,571 8,202,678 8,337,029 8,078,812 8,164,403 13.6% Franchise Fees 2,028,903 2,063,756 2,215,430 2,127,660 2,127,660 2,191,120 3.6% Transient Occupancy Tax 1,295,887 1,512,846 1,896,721 1,500,000 1,800,000 1,900,000 3.2% Miscellaneous Other Taxes 1,365,799 1,425,984 2,119,260 1,354,485 1,404,485 1,414,775 2.4% Licenses & Permits 3,696,025 4,191,902 4,917,461 3,638,662 3,765,280 3,497,863 5.8% Intergovernmental Revenues 2,865,191 2,550,762 3,024,011 1,770,347 2,738,934 2,174,690 3.6% Town Services 3,615,704 3,189,458 3,135,143 2,800,908 3,267,235 2,801,754 4.7% Internal Service Reimbursements 4,079,627 4,106,219 4,106,955 4,622,207 4,532,061 4,676,916 7.8% Fines & Forfeitures 648,939 768,467 839,670 663,300 651,625 647,800 1.1% Interest (125,320) 786,726 430,414 365,035 376,111 388,014 0.6% Miscellaneous Other Sources 11,640,493 10,781,919 10,297,678 9,558,127 9,957,122 8,480,012 14.1% 51,784,440$ 51,120,018$ 54,117,040$ 48,699,047$ 51,786,285$ 49,809,820$ Plus Transfers In:4,062,647 3,408,638 9,353,932 1,235,381 3,258,661 10,293,401 17.1% Total Revenues & Other Sources 55,847,087$ 54,528,656$ 63,470,972$ 49,934,428$ 55,044,946$ 60,103,221$ 100% Total Revenues PROPOSED C - 16 TOTAL TOWN EXPENDITURES BY CATEGORY FY 2016/17 Budgeted Expenditures Total Budgeted Expenditures (exclusive of Transfers Out) include budgeted Capital Improvements, which can vary significantly from year to year. Net of Capital Projects, total expenditures reflect a 1.7% decrease for FY 2016/17 compared to the prior year adopted budget. Expenditures of note include: Salaries and Benefits – Salary and benefit expenditures reflect a 1.4% increase largely due to previously negotiated salary increases and increased workers’ compensation rates. Staffing augmentations, both permanent and one-time, are limited with the elimination of two prior year one-time funded positons in both the Police Department and Community Development Departments and the addition of one new permanent project manager position within the Parks and Public Works Department. The FY 2016/17 operating expenditures also include post-retirement health benefit expenditures related to GASB 45. Fixed Assets – Budgeted fixed asset costs stem primarily from scheduled vehicle and equipment replacements. The variance in expenditures from year to year does not impact current year charges to the departments, only the actual cash out to replace the asset. Internal Service Charges – Internal service charges have increased by 1.3% largely due to changes in operating costs, cost allocation and equipment replacement schedules. Debt Service – Debt service charges reflect the Redevelopment Agency’s two outstanding Certificates of Participation (2002 and 2010) through a leasing expenditure and reimbursement revenue which nets to zero for the Town, while Successor Agency (SA) to the Los Gatos Redevelopment Agency funds provide the actual debt payment for the bond issues. The SA reimburses the General Fund for the debt service payment. The 1992 COP for Parking Lot #4 was paid in full in early FY 2012/13. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Actuals Actuals Actuals Adopted Estimated Proposed Total Salaries and Benefits 21,799,310$ 26,164,113$ 21,972,399$ 24,686,699$ 22,306,874$ 25,034,409$ 34.6% Operating Expenditures 13,729,928 14,094,865 13,524,829 14,883,459 15,000,130 15,312,704 21.2% Grants 173,310 160,607 176,526 179,000 174,800 184,800 0.3% Fixed Assets 415,205 399,465 355,799 921,068 1,210,355 528,065 0.7% Interest 1,106,837 1,095,366 990,000 1,025,000 1,025,000 1,065,000 1.5% Internal Service Charges 3,356,973 3,384,215 3,330,792 3,605,323 3,539,951 3,652,799 5.1% Capital Projects 6,165,811 3,706,400 3,639,640 5,259,126 12,282,993 14,648,371 20.3% Successor Agency Pass Thru 1,467,082 2,150,755 2,311,444 1,956,172 1,586,638 691,694 1.0% Debt Services 1,155,140 980,578 938,055 897,398 897,398 858,303 1.2% 49,369,596$ 52,136,364$ 47,239,484$ 53,413,245$ 58,024,139$ 61,976,145$ Transfers Out 4,062,647 3,408,638 9,353,932 1,236,891 3,253,661 10,293,401 14.2% Total Uses of Funds 53,432,243$ 55,545,002$ 56,593,416$ 54,650,136$ 61,277,800$ 72,269,546$ 100% Total Expenditures Expenditures PROPOSED C - 17 GENERAL FUND REVENUES BY DEPARTMENT FY 2016/17 Departmental Revenues *The Town Manager’s Office, Human Resources, Finance & Administrative Services, and Clerk Administration, Programs are all accounted for within the Administrative Services Department. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Departments Actuals Actuals Actuals Adopted Estimated Proposed Total Town Council 4,385$ 4,251$ 19,736$ 18,000$ 100$ -$ 0.0% Non-Departmental 25,151,204 24,571,629 26,064,222 24,703,031 26,559,294 26,483,091 74.5% Administrative Services*1,227,920 1,763,942 2,211,587 1,576,784 1,625,784 1,639,387 4.6% Community Development 4,660,284 5,166,693 5,038,975 3,562,177 3,987,164 3,280,665 9.2% Police Department 2,523,314 3,230,589 3,529,909 3,505,392 3,115,618 2,421,015 6.8% Parks & Public Works 1,732,189 1,618,436 1,773,515 1,605,731 1,863,756 1,631,584 4.6% Library Services 70,736 66,437 57,184 106,220 98,578 86,960 0.2% Total General Fund Revenues 35,370,032$ 36,421,977$ 38,695,128$ 35,077,335$ 37,250,294$ 35,542,702$ 100% Town Debt Payments:1,963,971$ 1,935,578$ 1,928,056$ 1,922,398$ 1,922,398$ 1,923,303$ Transfers In:566,799 328,938 311,810 474,218 2,450,534 363,428 Net Operating Revenues 37,900,802$ 38,686,493$ 40,934,994$ 37,473,951$ 41,623,226$ 37,829,433$ PROPOSED C - 18 GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2016/17 Departmental Expenditures * The Town Manager’s Office, Human Resources, Finance & Administrative Services, and Clerk Administrator, and Management Information Services programs are all accounted for within the Administrative Services Department. In FY 2009/10 the Town Treasurer was incorporated into Administrative Services Department. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Departments Actuals Actuals Actuals Adopted Estimated Proposed Total Police Department 13,403,435$ 13,673,270$ 13,862,029$ 14,910,621$ 13,354,791$ 13,895,495$ 39.5% Parks & Public Works 5,565,529 5,580,769 5,690,355 6,370,221 6,432,418 6,452,518 18.4% Non-Departmental 3,086,929 7,817,184 3,287,386 3,999,653 3,902,270 4,108,723 11.7% Community Development 4,235,832 4,320,634 4,233,465 4,046,424 3,944,695 4,127,341 11.7% Administrative Services*2,664,269 2,707,809 2,884,889 3,219,106 2,905,992 3,313,613 9.4% Library Services 2,055,069 2,131,438 2,268,844 2,463,638 2,326,934 2,691,849 7.7% Town Council 185,084 188,111 208,491 184,557 164,033 202,421 0.6% Town Attorney 207,746 238,253 260,740 268,592 324,641 347,006 1.0% Total General Fund Exp 31,403,893$ 36,657,468$ 32,696,199$ 35,462,812$ 33,355,774$ 35,138,966$ 100% Town Debt Payments:1,963,971$ 1,935,578$ 1,928,056$ 1,922,398$ 1,922,398$ 1,923,303$ Transfers Out:2,043,695 2,891,384 7,386,491 491,163 528,794 9,859,973 Net Operating Expenditures 35,411,559$ 41,484,430$ 42,010,746$ 37,876,373$ 35,806,966$ 46,922,242$ PROPOSED C - 19 GENERAL FUND REVENUES BY CATEGORY * To comply with the requirements of GASB 31, the Town marks down the value of its investment portfolio at year end to current market value to reflect the current interest rate environment. If rates rise, the value of investments with lower stated interest rates will fall. The mark down is taken against current year interest earnings, resulting in a negative balance in interest earnings for the FY. Because the Town holds its investment to maturity, no actual losses to investments were sustained; the markdown against interest is a “paper loss “only. FY 2016/17 General Fund revenues and fund transfers are estimated to increase by 1% from the FY 2015/16 adopted budget. The Town’s operations are funded through a variety of revenue sources as depicted above. Revenues were estimated by trend analysis and historical data as explained below: Sales Tax – While the Town only receives 1 cent of the 8.75 cents of sales tax paid per dollar of taxable sales generated in Town, Sales and Use Tax remains one of the General Fund’s largest revenue sources. The FY 2016/17 budget reflects $8.2 million in sales tax revenue, or a 2.1% decrease compared to the prior year budgeted amount. The negative impact is associated in part with increased on-line versus local brick and mortar shopping. Property Tax – Property Tax receipts in Los Gatos are expected to increase from the budgeted FY 2015/16 amount by 15% totaling $10.5 million, as homes sales continue to rise with the positive economy and low interest rates. Property Tax budget projections are based on valuations projected by the Santa Clara County Assessor’s Office, given increased home sales, coupled with anticipated adjustments in property tax distribution due to the dissolution of California redevelopment 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Revenue Category Actuals Actuals Actuals Adopted Estimated Proposed Total Sales & Use Tax 8,757,428$ 8,029,571$ 8,202,678$ 8,337,029$ 8,078,812$ 8,164,403$ 21.6% Property Tax 9,477,043 9,054,908 10,113,287 9,127,537 10,102,960 10,458,633 27.6% VLF Backfill Property Tax 2,437,489 2,657,404 2,818,316 2,833,750 2,984,000 3,013,840 8.0% Franchise Fees 2,028,903 2,063,756 2,215,430 2,127,660 2,127,660 2,191,120 5.8% Transient Occupancy Tax 1,295,887 1,512,846 1,896,721 1,500,000 1,800,000 1,900,000 5.0% Other Taxes 1,163,545 1,155,802 1,809,620 1,257,000 1,307,000 1,307,000 3.5% Licenses & Permits 3,060,948 3,235,122 3,687,393 2,987,662 3,116,780 2,946,583 7.8% Intergovernmental 924,657 817,699 1,004,661 782,724 918,058 717,684 1.9% Town Services 3,070,127 2,684,126 2,643,276 2,369,224 2,818,551 2,370,070 6.3% Fines & Forfeitures 648,939 768,467 839,670 663,300 651,625 647,800 1.7% Interest (163,070) 625,298 *430,476 319,590 319,590 331,193 0.9% Other Sources 4,632,107 5,752,556 4,961,656 4,694,257 4,947,656 3,417,679 9.0% Total Revenues 37,334,003$ 38,357,555$ 40,623,184$ 36,999,733$ 39,172,692$ 37,466,005$ Transfers In:566,799$ 328,938$ 311,810$ 474,218$ 2,450,534$ 363,428$ 1.0% Total Revenues & Transfers In 37,900,802$ 38,686,493$ 40,934,994$ 37,473,951$ 41,623,226$ 37,829,433$ 100% PROPOSED C - 20 GENERAL FUND REVENUES BY CATEGORY agencies. The Town receives 9.3 cents of each property tax dollar paid by property owners. The remaining 90.7 cents of each dollar is distributed to several other taxing jurisdictions, including local schools, community college districts, the County of Santa Clara, Santa Clara County Central Fire Protection District, and other special districts that serve the community. Town Services – Charges for Town Services remained flat as recent large scale development projects are winding down. Licenses & Permits – Licenses and Permits reflect a projected 1.0% decrease reflecting a decrease in permits associated with large scale building projects as mentioned above. Intergovernmental Revenues – Intergovernmental revenues reflect an 8% decrease since less grant revenue is anticipated to receive than submitted and approved for the prior fiscal year. Franchise Fees – Compared to the prior fiscal year, Franchise Fees, including cable television, electric utility and solid waste have increased by 3.0%. The increase is based on analysis of current year rends in fees collected and the improving local economy. Transient Occupancy Tax –Transient Occupancy Tax (TOT) is expected to increase by 27% as both personal and business related travel is gaining strength as the economy continues its positive growth from the recent recessing years. Fines and Forfeitures – Fines and Forfeitures include library and traffic fines and administrative citations which are expected to decrease by 2%. Transfers In – Compared to the prior fiscal year, transfers in have decreased by $110,790 due to the winding down of legal and administrative costs associated with the Successor Agency to the Town of Los GATOS Redevelopment Agency. Other Sources – Other sources reflects an 27.0% decrease compared to the prior fiscal year because of the reduction occurring in Town “pass Through” law enforcement grants. PROPOSED C - 21 GENERAL FUND EXPENDITURES BY CATEGORY The FY 2015/16 General Fund Operating Budget of $37,062,269 (net of transfers out) represents a 0.9% decrease compared to the net FY 2015/16 adopted operating expenditures budget of $37,385,209. Salaries & Benefits – The delivery of Town services is highly dependent on labor which comprises 51.3% of budgeted General Fund expenditures for FY 2016/17. Salaries and benefits continue to be the largest portion of the Town costs and continue to rise. The FY 2016/17 budget reflects a 1.5% increase in salaries and benefits attributed to increased PERS, benefit and worker’s compensation rates. Salary increases are not reflected in the proposed budget and labor negotiations with the Town’s unions are pending. Operating Expenditures – The FY 2016/17 operating expenditures represents a 8.4% decrease when compared to the FY 2015/16 adopted budget. Townwide efforts continue to emphasize the importance of containing operating costs while maintaining core services; however, factors such as drought measures, cut-through traffic, escalating energy costs and general cost increases have offset many departmental reductions. Grants & Awards –The Town provides General Fund grants and awards to local nonprofit organizations for a variety of human, art, and educational services. FY 2016/17 grants and awards reflects only a 3.2% increase in grant funding from the prior year. Internal Service Charges – These expenditures represent the service program costs charged back to the operational programs for Liability Insurance, Office Equipment, Management Information Services, Vehicle Maintenance, and Building Maintenance services. The FY 2016/17 budget reflects a 7.8% increase in the Internal Service Charges reflecting general increased cost for providing these services and negative claim experiences. Debt Service – The Town facilitates the Successor Agency (SA) to the Los Gatos Redevelopment Agency’s two Certificates of Participation (COPs) through a leasing expense and reimbursement revenue which nets to zero for the Town, while SA funds provide the actual debt payment for the bond issues. Transfers Out – The General Fund transfer to the Capital Projects Fund is $9,859,973 for FY 2016/17 a substantial increase from Almond Grove Street rehabilitation project. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Expenditure Category Actuals Actuals Actuals Adopted Estimated Proposed Total Salaries & Benefits 20,634,835$ 25,036,702$ 20,658,173$ 23,179,753$ 20,916,759$ 23,519,939$ 50.2% Operating Expenditures 7,230,329 8,020,372 8,460,686 8,508,183 8,369,012 7,789,693 16.6% Fixed Assets 30,629 62,756 75,442 - 360,877 - 0.0% Grants & Awards 160,216 160,607 176,526 179,000 174,800 184,800 0.4% Debt Service 1,963,971 1,935,578 1,928,056 1,922,398 1,922,398 1,923,303 4.1% Internal Service Charges 3,347,884 3,377,031 3,325,373 3,595,875 3,534,326 3,644,534 7.7% Total Expenditures 33,367,864$ 38,593,046$ 34,624,256$ 37,385,209$ 35,278,172$ 37,062,269$ Transfers Out 2,043,695$ 2,891,384$ 7,386,491$ 491,163$ 528,794$ 9,859,973$ 21.0% Total Exp & Transfers Out 35,411,559$ 41,484,430$ 42,010,747$ 37,876,372$ 35,806,966$ 46,922,242$ 100.0% PROPOSED C - 22 GENERAL FUND TAX REVENUES CITIES OF SANTA CLARA COUNTY – TAX REVENUES PER CAPITA (LATEST DATA AVAILABLE AT THE TIME OF PUBLICATION) FY 2015/16 Budgeted Tax Revenue Amounts and Per Capita* Cities Population Amount Per Capita Amount Per Capita Amount Per Capita Amount Per Capita Campbell 41,871 12,006,000$ 287 $ 14,850,000$ 355 $ 4,300,000$ 103 $ 663,000$ 16 $ Cupertino 59,777 16,055,000 269 20,360,000 341 5,072,000 85 847,070 14 Gilroy 52,264 6,926,034 133 17,339,818 332 1,361,844 26 615,865 12 Los Altos 29,884 17,718,514 593 2,993,834 100 2,345,600 78 475,000 16 Los Altos Hills 8,330 4,672,500 561 75,200 9 - - 211,000 25 LOS GATOS 30,443 11,961,287 393 8,337,029 274 1,500,000 49 1,250,000 41 Milpitas 69,903 24,680,000 353 21,490,000 307 8,018,000 115 349,000 5 Monte Sereno 3,439 1,268,967 369 10,000 3 - - 38,000 11 Morgan Hill 41,079 8,770,418 214 8,753,849 213 1,991,850 48 186,783 5 Mountain View 76,582 35,932,400 469 19,379,690 253 6,486,000 85 274,000 4 Palo Alto 66,682 35,067,000 526 27,630,000 414 18,791,000 282 - - San Jose 1,002,274 253,210,000 253 190,260,000 190 14,700,000 15 44,425,000 44 Santa Clara 120,942 37,550,000 310 52,690,000 436 17,300,000 143 953,700 8 Saratoga 30,798 10,475,350 340 1,060,000 34 310,000 10 575,000 19 Sunnyvale 146,724 56,487,757 385 31,947,169 218 11,397,216 78 1,734,000 12 Average 118,733 35,518,748$ 299 $ 27,811,773$ 234 $ 6,238,234$ 53 $ 3,506,495$ 30 $ Property Tax Sales Tax Occupancy Tax Business License Tax PROPOSED C - 23 GENERAL FUND TAX REVENUES BUDGET WITH 10 YEAR HISTORY Sum of Key Change from Revenues Prior Year 2006/07 Actuals 7,036,876$ 9,253,891$ 1,108,257$ 1,176,422$ 18,575,446$ 12.1% 2007/08 Actuals 7,417,030$ 9,345,432$ 1,245,078$ 1,138,057$ 19,145,597$ 3.1% 2008/09 Actuals 7,057,258$ 8,487,000$ 966,638$ 1,139,107$ 17,650,003$ (7.8%) 2009/10 Actuals 7,465,871$ 8,317,217$ 923,783$ 1,122,000$ 17,828,871$ 1.0% 2010/11 Actuals 7,289,897$ 9,971,409$ 1,004,659$ 1,136,511$ 19,402,476$ 8.8% 2011/12 Actuals 7,532,073$ 9,889,100$ 1,174,485$ 1,077,320$ 18,196,717$ (6.2%) 2012/13 Actuals 9,477,043$ 8,757,428$ 1,295,887$ 1,151,579$ 20,681,937$ 6.6% 2013/14 Actuals 9,054,908$ 8,029,571$ 1,512,846$ 1,130,020$ 19,727,345$ 8.4% 2014/15 Actuals 10,113,287$ 8,202,678$ 1,896,721$ 1,779,407$ 21,992,093$ 20.9% 2015/16 Estimated 10,102,960$ 8,078,812$ 1,800,000$ 1,300,000$ 21,281,772$ 2.9% 2016/17 Budgeted 10,458,633$ 8,164,403$ 1,900,000$ 1,300,000$ 21,823,036$ 5.5% Business License Tax Occupancy Tax Sales Tax Property TaxFiscal Year PROPOSED C - 24 GENERAL FUND ESTIMATED FUND BALANCE ACTIVITY Fund Balance Activity includes: • FY 2016/17 Budgeted revenue and expenditure appropriations, and transfers to and from the General Fund. • FY 2015/16 authorized carryovers reflect operating appropriations that were brought forward as a funding source. The actual carryover amount will be determined at FY 2015/16 year-end, with funding offset by undesignated reserves. • In FY 2011/12, Council adopted a General Fund Reserve Policy that maintains a minimum of 25% of General Fund expenditures equally divided between the Budget Stabilization Reserve and Catastrophic Reserve. • Undesignated Fund Balance is year-end fund balance not previously identified for a specific purpose; therefore, it can be reprogrammed as appropriations or designated reserves by Council. Town policy designates all year-end fund balance to the Budget Stabilization and Capital/Special Project Reserve, eliminating undesignated fund balance. However, year-end fund balance is currently being distributed to the Capital Improvement since Special Projects Reserve as the Catastrophic and Budget Stabilization Reserves are fully funded. Estimated Revenues Expenditures Fund Balance Estimated July 1, 2016 Sources June 30, 2017 Balance (Uses)Balance Reserved Fund Balance Reserve for Long Term Notes -$ -$ -$ -$ -$ Unreserved Fund Balance Undesignated Reserves Plus Appropriated Designated Reserves 3,699,466 37,829,433 46,922,242 9,859,973 4,466,630 Undesignated /Available - Designated Reserves - Designated Productivity 100,000 - - - 100,000 Open Space Reserve 562,000 - - - 562,000 Catastrophic Reserve 4,389,911 - - - 4,389,911 Budget Stabilization Reserve 4,389,911 - - - 4,389,911 Capital / Special Projects 5,841,527 - - (1,400,000) 4,441,527 Authorized Carryovers 99,284 - - - 99,284 Operating Grants 140,553 - - - 140,553 Special Studies 237,000 - - - 237,000 Almond Grove Reserve 8,459,973 - - (8,459,973) - 27,919,625$ 37,829,433$ 46,922,242$ -$ 18,826,816$ Use of / Addition to GF Reserves: Total Use of and Addition To Reserves PROPOSED C - 25 SCHEDULE OF INTERFUND TRANSFERS FISCAL YEAR 2015/16 & 2016/17 Estimated Proposed Budget 2015/16 2015/16 2016/17 2016/17 Fund Description Transfers In Transfers Out Transfers In Transfers Out General Funds General Fund 2,450,534$ 528,794$ 363,428$ 9,859,973$ Special Revenue Funds Solid Waste Management - - - - HCD Housing Rehabilitation - - - - HCD-Community Dev Block Grant - 72,952 - 70,000 Urban Run-Off Program 50,000 - - - Landscape & Lighting Districts Blackwell District - 460 - 460 Kennedy Meadows District - 1,510 - 1,510 Gemini Court District - 610 - 610 Santa Rosa Heights District - 660 - 660 Vasona Heights District - 1,430 - 1,430 Hillbrook District - 250 - 250 Internal Service Funds Self Insurance Fund - - - - Worker's Comp Self Insurance - - - - Management Information Systems - - - - Office Stores Fund - - - - Equipment Fund - 1,488,687 - - Vehicle Maintenance Fund - - - - Facilities Maintenance Fund - 200,000 - - Trust & Agency Funds Barbara J. Cassin Trust - - - - History Project Trust Fund 1,380 - - - Library Trust Fund - 36,380 - 35,000 Capital Project Funds GFAR 678,794 691,673 9,859,973 199,808 Grant Funded CIP Projects 77,952 - 70,000 - Storm Drain #1 - - - - Storm Drain #2 - - - - Storm Drain #3 - - - - Traffic Mitigation - 10,000 - 10,000 Construction Utility Underground - - - - Gas Tax - Street & Signal - 106,000 - 106,000 Successor Agency of the Los Gatos RDA Funds SA - Administration - - - - SA - Debt Service - - - - SA - Low / Moderate Housing - - - - SA - Recognized Obligation Retirement - - - - SA - General Fund - 114,254 - 7,700 Total Transfers 3,258,660$ 3,253,660$ 10,293,401$ 10,293,401$ PROPOSED C - 26 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2016/17 7/1/16 Plus Less 6/30/17EstimatedRevenues &Transfers Expenditures &Transfers Use of Estimated Fund Balance Carryforwards In Carryforwards Out Reserves Fund Balance GENERAL FUND Unreserved Fund Balances Undesignated Reserves Available to be Appropriated 3,699,466$ 37,466,005$ 363,428$ 37,062,269$ 9,859,973$ 9,859,973$ 4,466,630$ Reserved Fund Balances Reserve for Encumbrances - - - - - - - Reserve for Long Term Notes - - - - - - - Advance to RDA - - - - - - - Actuarial - - - - - - - Designated Reserves Authorized Carryforwards 99,284 - - - - - 99,284 Manager's Contingency - - - - - - - Designated Productivity 100,000 - - - - - 100,000 Catastrophic Reserve 4,389,911 - - - - - 4,389,911 Budget Stabilization Reserve 4,389,911 - - - - 4,389,911 Capital / Special Projects 5,841,527 - - - - (1,400,000) 4,441,527 Open Space Reserve 562,000 - - - - - 562,000 GABS Market Flucation - - - - - - - YE Savings/Budget Amendment - - - - - - - Post Retirement Medical - - - - - - - Almond Grove Reserve 8,459,973 - - - - (8,459,973) - Operating Grants 140,553 - - - - - 140,553 Special Studies 237,000 - - - - - 237,000 Total General Fund Reserves 27,919,625$ 37,466,005$ 363,428$ 37,062,269$ 9,859,973$ -$ 18,826,816$ SPECIAL REVENUE FUNDS Solid Waste Fund -$ -$ -$ -$ -$ -$ -$ Housing Conservation Program 74,520 - - - - - 74,520 Community Dev Block Grant 18,315 70,000 - - 70,000 - 18,315 Urban Run-Off Source Fund 89,692 367,464 - 533,935 - - (76,779) Blackwell Assessment District 9,836 3,210 - 9,392 460 - 3,194 Kennedy Assessment District 9,644 10,337 - 7,124 1,510 - 11,347 Gemini Assessment District 19,808 4,187 - 11,091 610 - 12,294 Santa Rosa Assessment District 59,740 4,800 - 12,595 660 - 51,285 Vasona Assessment District 42,203 9,885 - 17,214 1,430 - 33,444 Hillbrook Assessment District 12,382 5,997 - 17,134 250 - 995 Total Special Revenue Funds Reserves 336,140$ 475,880$ -$ 608,485$ 74,920$ -$ 128,615$ Fiscal Year 2016/17 Adopted Budget General Fund Undesignated Reserves reflect ongoing revenue, carryforward, transfer, and expenditure activities, the net effect of the change in Designated Reserves, and the use of Undesignated Reserves. General Fund Designated Reserve changes reflect: the Manager Contingency Reserve utilized each year to fund unbudgeted appropriations demeed worthwhile (reserve is replenished at the end of the fiscal year as funding allows), a transfer from Capital and Special Projects Reserve to the Capital Improvement Program. Year-end excess of revenues over expenditures are programmed equally to the Designated for Capital and Special Projects Reserve and the Budget Stabilization Reserves. PROPOSED C - 27 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2016/17 7/1/16 Plus Less 6/30/17EstimatedRevenues &Transfers Expenditures &Transfers Use of Estimated Fund Balance Carryforwards In Carryforwards Out Reserves Fund Balance INTERNAL SERVICE FUNDS ABAG Self Insurance 1,258,800$ 535,398$ -$ 808,361$ -$ -$ 985,837$ Worker's Comp Self Insurance 1,250,448 934,118 - 1,258,810 - - 925,756 Management Information Systems 2,830,622 1,127,676 - 1,351,188 - - 2,607,110 Office Stores Fund 154,585 95,000 - 51,000 - - 198,585 Equipment Replacement 1,859,225 381,322 - 336,369 - - 1,904,178 Vehicle Maintenance 361,857 573,865 - 573,866 - - 361,856 Facilities Maintenance 273,808 1,381,875 - 1,381,875 - - 273,808 Total Internal Service Funds Reserves 7,989,345$ 5,029,254$ -$ 5,761,469$ -$ -$ 7,257,130$ TRUST & AGENCY Friends of the Library -$ -$ -$ -$ -$ -$ -$ Library Trust 41,680 67,400 - 32,000 35,000 - 42,080 Library History Project - - - - - - - Ness Trust Bequest 38,566 500 - - - - 39,066 Betty McClendon Trust 86,207 750 - - - - 86,957 Barbara J Cassin Trust 345,258 500 - - - - 345,758 Parking District #88 86,858 - - - - - 86,858 Total Trust & Agency Funds Reserves 598,569$ 69,150$ -$ 32,000$ 35,000$ -$ 600,719$ CAPITAL PROJECTS FUNDS GFAR 5,603,983$ 1,113,000$ 9,859,973$ 13,018,498$ 199,808$ -$ 3,358,650$ GFAR - Designated for Parking 1,460,210 - - - - - 1,460,210 Grant Funded CIP Projects (318,413) 575,000 70,000 645,000 - - (318,413) Storm Drain #1 717,780 49,000 - - - - 766,780 Storm Drain #2 875,866 53,380 - - - - 929,246 Storm Drain #3 (48,232) 1,500 - - - - (46,732) Traffic Mitigation 204,941 422,869 - 392,869 10,000 - 224,941 Construction Tax-Undergrounding 2,836,352 50,000 - 42,000 - - 2,844,352 Gas Tax 265,897 631,843 - 550,000 106,000 - 241,740 Total Capital Projects Funds Reserves 11,598,384$ 2,896,592$ 9,929,973$ 14,648,367$ 315,808$ -$ 9,460,774$ Successor Agency of the Los Gatos RDA Funds SA- Trust Fund 3,572,969$ 3,872,939$ -$ 3,863,555$ 7,700$ -$ 3,574,653$ Total SA of the Los Gatos RDA Funds Reserves 3,572,969$ 3,872,939$ -$ 3,863,555$ 7,700$ -$ 3,574,653$ TOTAL RESERVES 52,015,032$ 49,809,820$ 10,293,401$ 61,976,145$ 10,293,401$ -$ 39,848,707$ Equipment Replacement Fund Balance is the accumulation of replacement funding-to-date for assets. Revenues are the pro-rated annual charges to departments for asset replacement, and expenditures reflect the cost of equipment up for replacement in this fiscal year. The Fund will continue to reallocate Fund Balance as a transfer to the General Fund for assets that have accumulated replacement costs and have been identified as no longer being part of the Replacement Schedule. Fiscal Year 2016/17 Adopted Budget GFAR. Grant Fund, Storm Drain Funds, and Gas Tax Fund Balances reflect the spending down of available funds in FY 2015/16 in line with the planned Capital Improvement Program. The GFAR and Grant Funds also include transfers-in to fund these planned projects. Traffic Mitigation Fund reflects a transfer out of $10,000 for estimated annual administration fees. Grant Funded Projects Fund Balance reflects appropriations for incoming revenues and prior year carryforwards, which will result in either positive or negative fund balance depending on timing of receipts and budget. All grant projects net to zero at completion. PROPOSED C - 28 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Actual Actual Actual Estimated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance GENERAL FUND Reserved Fund Balances Unreserved Fund Balances Undesignated Reserves Available to be Appropriated - - - 12,537,003 3,844,194 Designated Reserves Authorized Carryforwards 56,741 56,741 99,284 99,284 99,284 Productivity Contingency 100,000 100,000 100,000 100,000 100,000 Catastrophic Reserves 4,178,192 4,178,192 4,178,192 4,178,192 4,178,192 Budget Stabilization Reserve 6,721,808 6,621,808 6,621,808 6,621,808 6,621,808 Capital / Special Projects 12,427,161 10,218,579 9,511,527 2,790,784 2,390,784 Open Space Reserve 562,000 562,000 562,000 562,000 562,000 YE Savings/Budget Amendment 490,000 - - - - Post Retirement Medical 400,000 400,000 400,000 400,000 400,000 Vasona Land Sale 410,599 411,245 - - - Operating Grants 140,553 140,553 140,553 140,553 140,553 Special Studies 490,000 490,000 490,000 490,000 490,000 Total General Fund Reserves 25,977,054$ 23,179,118$ 22,103,364$ 27,919,624$ 18,826,815$ SPECIAL REVENUE FUNDS Housing Conservation Program 47,691$ 67,697$ 74,520$ 74,520$ 74,520$ Community Dev Block Grant (10,587) (10,587) (10,587) 18,315 18,315 Urban Run-Off Source Fund 120,102 125,936 142,943 89,692 (76,779) Blackwell Assessment District 6,623 7,521 8,648 9,836 3,194 Kennedy Assessment District 34,836 41,410 48,151 9,644 11,347 Gemini Assessment District 17,035 19,779 16,948 19,808 12,294 Santa Rosa Assessment District 55,237 56,885 58,083 59,740 51,285 Vasona Assessment District 29,145 34,495 39,561 42,203 33,444 Hillbrook Assessment District 6,971 9,167 8,816 12,382 995 Total Special Revenue Funds Reserves 307,053$ 352,303$ 387,082$ 336,140$ 128,615$ INTERNAL SERVICE FUNDS ABAG Self Insurance 1,352,035$ 1,056,559$ 1,567,162$ 1,258,800$ 985,837 Worker's Comp Self Insurance 2,246,915 1,576,698 1,514,857 1,250,448 925,756 Management Information Systems 2,495,697 2,661,264 2,833,159 2,830,622 2,607,110 Office Stores Fund 159,213 149,293 187,956 154,585 198,585 Equipment Replacement 3,260,531 3,429,643 3,675,029 1,859,225 1,904,178 Vehicle Maintenance 601,794 740,861 322,865 361,857 361,856 Facilities Maintenance 1,255,709 1,319,864 484,030 273,808 273,808 Total Internal Service Funds Reserves 11,371,894$ 10,934,182$ 10,585,058$ 7,989,345$ 7,257,130$ PROPOSED C - 29 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Actual Actual Actual Estimated Budgeted Fund Balance Reserves YE Balance YE Balance YE Balance YE Balance YE Balance TRUST & AGENCY Library Trust 13,996$ 31,981$ 39,320$ 41,680$ 42,080$ Library History Project 757 (1,378) (1,380) - - Ness Trust Bequest 190,317 188,420 171,591 38,566 39,066 Betty McClendon Trust 98,944 96,095 87,957 86,207 86,957 Barbara J Cassin Trust 453,249 379,802 344,758 345,258 345,758 Parking District #88 224,156 86,492 86,858 86,858 86,858 Total Trust & Agency Funds Reserves 981,419$ 781,412$ 729,104$ 598,569$ 600,719$ CAPITAL PROJECTS FUNDS GFAR 5,152,923$ 6,842,125$ 14,071,414$ 5,603,983$ 3,358,650 GFAR - Designated for Parking 1,460,210 1,460,210 1,460,210 1,460,210 1,460,210 Grant Funded CIP Projects (641,976) (288,730) (369,988) (318,413) (318,413) Storm Drain #1 305,893 450,765 669,660 717,780 766,780 Storm Drain #2 860,325 935,034 972,866 875,866 929,246 Storm Drain #3 (55,377) (54,904) (49,732) (48,232) (46,732) Traffic Mitigation 126,032 178,226 184,941 204,941 224,941 Construction Tax-Undergrounding 2,519,548 2,687,790 2,814,352 2,836,352 2,844,352 Gas Tax 169,347 297,303 1,075,828 265,897 241,740 Total Capital Projects Funds Reserves 9,896,925$ 12,507,819$ 20,829,551$ 11,598,384$ 9,460,774$ SUCCESSOR AGENCY TO THE LOS GATOS RDA SA - Trust Fund 3,852,331$ 3,615,496$ 3,613,727$ 3,572,969$ 3,574,653$ Total Successor Agency Funds Reserves 3,852,331$ 3,615,496$ 3,613,727$ 3,572,969$ 3,574,653$ TOTAL RESERVES 52,386,676$ 51,370,330$ 58,247,886$ 52,015,031$ 39,848,706$ PROPOSED C - 30 DEPARTMENT REVENUES BY PROGRAM 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adopted Estimated Proposed Town Offices 1101 Town Council -$ -$ -$ -$ -$ -$ 1103 Town Treasurer - - - - - - 1301 Town Attorney 4,385 4,251 19,736 18,000 100 - 1302 ABAG - Self Insurance Fund 486,986 497,185 485,397 529,575 489,856 535,398 Total Town Offices 491,371$ 501,436$ 505,133$ 547,575$ 489,956$ 535,398$ Administrative Services Department 1201 Non-Departmental 27,135,175$ 26,507,206$ 27,992,277$ 26,778,237$ 28,541,144$ 28,539,202$ 2101 Town Manager Administration 217,245 6,452 1,179 - - 1,000 2102 Community Grants - 1,869 - - - - 2103 Housing Program 19,762 20,006 6,823 - - - 2104 HCD Housing Rehab 169,270 19,360 176,705 70,000 101,854 70,000 2201 Human Resources - - - - - - 2202 Workers' Compensation Fund 691,718 835,410 1,004,574 926,884 961,264 934,118 2301 Finance & Administrative Services 989,177 1,755,621 2,210,409 1,569,590 1,619,590 1,631,193 2302 Office Stores Fund 88,616 98,057 147,983 95,000 95,000 95,000 2303 Parking Assessment District 56,090 2,704 365 - - - 2401 Clerk Administation 126 - - - - - 2501 Management Information Systems 1,039,540 1,038,393 1,089,254 1,084,088 1,101,088 1,127,676 2801 Operating Grant - - - - - - 2802 Obesity Grant 15,312 - - - - - 2999 Pass Thru Accounts 6,060 - - 7,194 6,194 7,194 Total Administrative Services 30,428,091$ 30,285,078$ 32,629,569$ 30,530,993$ 32,426,134$ 32,405,383$ Community Development 3101 Administration -$ -$ -$ -$ -$ -$ 3201 Developmental Review 931,432 880,388 1,062,532 620,000 660,000 610,000 3202 Advanced Planning 164,281 251,974 262,328 171,000 199,042 121,000 3301 Inspection Services 2,175,885 2,794,383 2,477,969 1,953,000 1,956,003 1,878,000 3401 Code Compliance 500 3,700 2,800 3,000 6,500 3,100 3501 BMP Housing Program 179,836 35,990 170,455 154,677 537,119 158,065 3999 Pass Thru Accounts 1,208,350 1,200,257 1,062,891 660,500 628,500 510,500 Total Community Development 4,660,284$ 5,166,692$ 5,038,975$ 3,562,177$ 3,987,164$ 3,280,665$ Police Department 4101 Administration 17,772$ 11,383$ 46,415$ 46,000$ 54,265$ 20,500$ 4201 Records & Communication 12,608 13,185 46,526 11,800 9,050 11,800 4202 Personnel & Community Services 368,721 492,608 546,314 294,640 296,840 295,640 4301 Patrol 906,753 661,589 481,967 694,550 827,228 855,740 4302 Traffic 485,262 453,803 451,065 440,323 438,348 434,301 4303 Investigations 9,361 6,889 3,066 232,576 182,900 164,084 4304 Parking Program 598,409 738,112 825,449 621,461 621,461 624,566 4800 Grants Program - Police 114,831 80,398 10,307 40,564 121,361 5,384 4999 Pass Thru Accounts 9,596 772,624 1,118,802 1,123,478 564,165 9,000 Total Police Department 2,523,313$ 3,230,591$ 3,529,911$ 3,505,392$ 3,115,618$ 2,421,015$ PROPOSED C - 31 DEPARTMENT REVENUES BY PROGRAM 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adopted Estimated Proposed Parks & Public Works 5101 Administration -$ 1,322$ 1,931$ 1,200$ 1,200$ 1,200$ 5201 Engineering Program Services - - - - - - 5202 Engineering Development Srvcs 857,782 734,890 952,138 729,750 770,470 727,860 5203 Non-Point Source Fund 403,294 328,648 328,868 366,684 366,684 367,464 5301 Park Services 251,607 298,314 323,259 271,803 312,440 285,703 5302 Environmental Services 147,821 162,487 159,309 150,930 159,496 158,470 5401 Street & Signals 143,611 191,087 187,654 189,240 194,272 195,543 5402 Equipment Replacement 528,775 506,979 504,952 490,826 501,093 381,322 5403 Vehicle Maintenance 537,448 528,887 570,003 571,670 571,670 573,865 5404 Facilities Maintenance 1,240,338 1,320,023 1,337,633 1,265,218 1,271,218 1,381,875 5405 Property Damage 98,615 52,244 24,029 - 17,452 - 5501 Lighting & Landscape Districts 42,025 41,401 36,901 28,399 28,576 38,416 5999 Pass Thru Accounts 232,755 178,092 125,195 165,000 383,974 165,000 8011 GFAR 2,128,672 1,144,294 1,712,434 834,000 1,250,848 1,113,000 8021 Grant Funded CIP Projects 621,502 487,821 694,207 - 432,813 575,000 8031 Storm Drain #1 106,754 144,872 218,896 48,120 48,120 49,000 8032 Storm Drain #2 110,388 74,709 37,833 53,000 53,000 53,380 8033 Storm Drain #3 18,911 473 5,172 4,000 1,500 1,500 8041 Traffic Mitigation 1,152,480 506,005 90,612 605,000 591,852 422,869 8042 Utility Undergrounding 69,226 168,242 126,562 60,000 50,000 50,000 8051 Gas Tax - Street & Signals 732,046 946,246 884,525 658,623 685,283 631,843 Total Parks & Public Works 9,424,050$ 7,817,036$ 8,322,113$ 6,493,463$ 7,691,961$ 7,173,310$ Library 7101 Administration 5,979$ 6,451$ 6,507$ 6,720$ 6,820$ 6,960$ 7201 Adult Services - 2,000 - - 4,250 - 7202 Children's Services 200 - - - - - 7203 Acquisitons & Cataloging 4,468 3,404 5,271 4,500 4,800 5,000 7204 Circulation Services 40,089 54,582 45,407 40,000 47,708 40,000 7301 Library Trust 26,501 36,797 37,357 57,096 71,850 67,400 7302 Clelles Ness Bequest Trust 1,179 3,741 (851) 1,500 1,000 500 7303 Library History Project 1,962 97 (2) - 1,380 - 7304 Betty McClendon Trust 613 1,867 (309) 815 750 750 7305 Barbara J Cassin Trust 3,408 7,382 (1,125) 500 500 500 Total Library 84,399$ 116,321$ 92,255$ 111,131$ 139,058$ 121,110$ Successor Agency to the Los Gatos RDA 9101 SA - Administration -$ -$ -$ -$ -$ -$ 9201 SA - Debt Service - - - - - - 9202 DEBT FOR 1992 COPs - - - - - - 9204 DEBT FOR 2002 COPs - - - - - - 9205 DEBT TO 2010 COPS - - - - - - 9301 SA - Low / Moderate Housing - - - - - - 9302 Ditto Lane - - - - - - 9401 SA - Recognized Obligation Retireme - - - - - - 9402 SA- Housing Trust Others 538 - - - - - 9403 SA- Admin Services 250,000 110,635 106,517 100,000 89,398 22,763 9404 SA- Debt to 2002 COP 1,364,727 1,362,306 1,363,717 1,359,456 1,359,516 1,352,566 9405 SA-Debt to 2010 COP 2,536,251 2,529,802 2,507,849 2,488,860 2,488,860 2,497,610 9406 SA- Debt to 1992 COP 21,416 122 21,000 - - - Total SA to the Los Gatos RDA 4,172,932$ 4,002,865$ 3,999,083$ 3,948,316$ 3,937,774$ 3,872,939$ Transfers In 4,062,647 3,408,637 9,353,933 1,235,381 3,257,280 10,293,401 Carryforward of CIP Grant Revenue Total Revenues by Department:55,847,087$ 54,528,656$ 63,470,972$ 49,934,428$ 55,044,945$ 60,103,221$ PROPOSED C - 32 DEPARTMENTAL EXPENDITURES BY PROGRAM 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adopted Estimated Proposed Town Offices 1101 Town Council 185,084$ 188,110$ 208,491$ 184,557$ 164,033$ 202,420$ 1103 Town Treasurer - - - - - - - 1301 Town Attorney 207,746 238,253 260,740 268,591 - 324,641 347,006 1302 ABAG - Self Insurance Fund 730,092 792,660 474,795 790,094 798,218 808,361 Total Town Offices 1,122,922$ 1,219,023$ 944,026$ 1,243,242$ 1,286,892$ 1,357,787$ Administrative Services Department 1201 Non-Departmental 5,050,899$ 9,752,762$ 5,230,442$ 5,922,051$ 5,824,668$ 6,032,025$ 2101 Town Manager Administration 1,094,791 999,601 1,059,703 1,094,358 1,004,372 1,009,703 2102 Community Grants 99,470 99,849 114,522 109,800 109,800 119,800 2103 HCD Housing Rehab 135 - - - - - 2104 Comm. Development Block Grant 13,094 - - - - - 2201 Human Resources 359,984 423,843 484,291 524,391 564,052 601,545 2301 Finance & Administrative Services 955,586 1,021,792 1,057,993 1,193,796 951,476 1,263,974 2401 Clerk Administration 133,696 162,723 168,379 289,566 269,098 311,397 2402 Clerk Services - - - - - - 2801 Tobacco Prevention Initiatitves - - - - - - 2802 Obesity Grant 14,683 - - - - - 2999 Pass Through 6,060 - - 7,194 7,194 7,194 2202 Workers' Compensation Fund 745,441 1,505,626 1,066,415 1,367,951 1,225,673 1,258,810 2302 Office Stores Fund 135,973 107,977 109,320 127,150 128,371 51,000 2501 Management Information Systems 1,017,188 872,826 901,293 1,254,373 1,103,625 1,351,188 2303 Parking Assessment District 143,655 140,366 - - - - Total Administrative Services 9,770,655$ 15,087,365$ 10,192,358$ 11,890,630$ 11,188,329$ 12,006,636$ Community Development 3101 Administration 138,611$ 159,401$ 125,087$ 183,992$ 146,065$ 237,742$ 3201 Developmental Review 1,043,216 1,072,640 1,146,692 1,289,682 1,122,851 1,429,728 3202 Advanced Planning 305,119 303,893 243,737 360,673 213,583 335,439 3301 Inspection Services 1,078,904 1,183,058 1,178,836 1,212,268 1,113,642 1,274,612 3401 Code Compliance 93,527 144,241 160,414 184,631 182,935 181,256 3501 BMP Housing Program 368,102 257,147 315,807 154,677 537,119 158,065 3999 Pass Thru Accounts 1,208,350 1,200,257 1,062,891 660,500 628,500 510,500 Total Community Development 4,235,829$ 4,320,637$ 4,233,464$ 4,046,423$ 3,944,695$ 4,127,342$ Police Department 4101 Administration 489,787$ 561,900$ 789,187$ 969,454$ 908,640$ 992,203$ 4201 Records & Communication 1,784,877 1,607,418 1,756,928 1,988,164 1,823,594 2,196,149 4202 Personnel & Community Services 792,275 576,204 362,987 714,204 705,120 584,629 4301 Patrol 6,716,137 6,518,339 6,256,175 6,168,363 5,849,047 6,366,657 4302 Traffic 865,367 942,247 816,227 859,184 614,246 869,904 4303 Investigations 2,015,927 1,884,190 2,107,270 2,374,823 2,164,061 2,210,203 4304 Parking Program 630,591 732,415 649,866 672,387 604,557 661,364 4800 Grants Program - Police 98,879 78,235 30 40,564 121,361 5,384 4999 Pass Thru Accounts 9,596 772,325 1,123,359 1,123,478 564,165 9,000 Total Police Department 13,403,436$ 13,673,273$ 13,862,029$ 14,910,621$ 13,354,791$ 13,895,493$ PROPOSED C - 33 DEPARTMENTAL EXPENDITURES BY PROGRAM 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adopted Estimated Proposed Parks & Public Works 5101 Administration 253,326$ 264,694$ 307,031$ 296,610$ 328,281$ 313,250$ 5201 Engineering Program Services 829,061 739,658 902,915 997,500 1,027,524 1,031,612 5202 Engineering Development Srvcs 658,729 638,721 640,975 719,984 664,421 753,496 5203 Non-Point Source Fund 359,728 322,813 411,860 499,053 469,935 533,935 5301 Park Services 1,497,243 1,561,076 1,496,032 1,743,910 1,620,655 1,739,562 5302 Environmental Services 167,878 171,123 280,035 387,699 405,783 428,674 5401 Street & Signals 1,853,340 2,016,963 1,920,447 2,034,518 1,946,642 1,995,924 5402 Equipment Replacement 401,643 337,867 290,633 739,221 828,210 336,369 5403 Vehicle Maintenance 457,363 389,821 487,999 571,670 532,678 573,866 5404 Facilities Maintenance 999,494 1,086,911 1,248,819 1,331,278 1,281,440 1,381,875 5405 Property Damage 73,199 10,442 17,726 25,000 55,138 25,000 5501 Lighting & Landscape Districts 17,175 17,068 21,031 17,891 50,250 74,550 5999 Pass Thru Accounts 232,755 178,092 125,195 165,000 383,974 165,000 8011 GFAR 3,392,791 2,388,043 2,609,078 3,966,126 9,705,399 13,018,502 8021 Grant Funded CIP Projects 761,467 153,935 952,169 70,000 459,190 645,000 8031 Storm Drain #1 241,845 - - - - - 8032 Storm Drain #2 - - - - 150,000 - 8033 Storm Drain #3 - - - - - - 8041 Traffic Mitigation 1,119,708 452,132 78,393 595,000 561,852 392,869 8042 Utility Undergrounding - - - 28,000 28,000 42,000 8051 Gas Tax - Street & Signals 650,000 712,290 - 600,000 1,389,214 550,000 Total Parks & Public Works 13,966,745$ 11,441,649$ 11,790,338$ 14,788,460$ 21,888,586$ 24,001,484$ Library 7101 Administration 129,303$ 318,819$ 328,008$ 370,226$ 418,732$ 482,926$ 7201 Adult Services 635,950 503,080 608,632 627,342 575,305 654,119 7202 Children's Services 436,956 424,874 458,744 565,456 450,320 527,602 7203 Acquisitons & Cataloging 180,346 170,905 155,622 116,822 117,014 120,796 7204 Circulation Services 672,515 713,761 717,837 783,793 765,563 906,405 7301 Library Trust 43,225 18,812 30,018 35,750 33,110 32,000 7302 Clelles Ness Bequest Trust - 5,638 15,978 75,000 134,025 - 7303 Library History Project 1,957 2,233 - - - - 7304 Betty McClendon Trust - 4,716 7,829 10,000 2,500 - 7305 Barbara J Cassin Trust 70,449 80,829 33,918 60,000 - - Total Library 2,170,701$ 2,243,667$ 2,356,586$ 2,644,389$ 2,496,569$ 2,723,848$ Successor Agency to the Los Gatos RDA 911 SA - Administration -$ -$ -$ -$ -$ -$ 921 SA - Debt Service - - - - - - 931 SA - Low / Moderate Housing - - - - - - 9401 SA - Recognized Obligation Retirem - - - - - - 9402 SA- Housing Trust Others 582,359 254,674 - - - - 9403 SA- Admin Services 47,888 21,721 16,052 41,163 - 15,962 13,429 9404 SA- Debt to 2002 COP 1,359,892 1,357,905 1,354,570 1,359,456 1,359,456 1,352,516 9405 SA-Debt to 2010 COP 2,531,000 2,516,451 2,505,061 2,488,860 2,488,860 2,497,610 9406 SA- Debt to 1992 COP 178,169 - - - - - Total SA to the Los Gatos RDA 4,699,308$ 4,150,751$ 3,875,683$ 3,889,479$ 3,864,278$ 3,863,555$ Total Operating Expenditures 49,369,596$ 52,136,365$ 47,254,484$ 53,413,244$ 58,024,140$ 61,976,145$ Transfers Out 4,062,647 3,408,637 9,338,932 1,236,891 3,253,660 10,293,401 Total Expenditures by Department:53,432,243$ 55,545,002$ 56,593,416$ 54,650,135$ 61,277,800$ 72,269,546$ PROPOSED C - 34 IN-KIND DONATIONS FY 2016/17 SUMMARY The information below provides an estimated value of in-kind support the Town provides annually to three local non-profit organizations, in addition to contribution of funds as described elsewhere in this budget, Town events, etc. The in-kind support consists of Town facilities leased to these programs at rates substantially below present market rates. Los Gatos Museum Association - The Town and Los Gatos Museum Association (LGMA) have entered into an agreement in which LGMA leases 11,604 square feet in the former library. LGMA has occupied the new space since the beginning FY 2015/16. Los Gatos-Saratoga Recreation - Beginning January 2010, Los Gatos Saratoga (LGS) Recreation entered into a 20-year lease with the Town for the former Neighborhood Center, renamed the Adult Recreation Center. In exchange for providing and expanding senior services, the facility is leased at a below market rate. LGS Recreation also leases the Town-owned facility located at 123 E. Main Street, on a month to month basis. In addition to providing subsidized leases, the Town provides in-kind staffing support for the Holiday Tree Lighting and the Children’s Holiday Parade. Costs to provide maintenance and public safety services for the Holiday Tree Lighting are estimated to be $1,600; the Children’s Holiday Parade costs are estimated to be $25,000. These estimates only include expenses that occur at the event and do not include time dedicated to event planning and logistics. The estimated total of all in-kind expenses is $813.696. Organization LGMA LGS Recreation LGS Recreation Location 108 E. Main St 123 E. Main St.208 E. Main St. Lease Terms 10-Year Lease Month to Month 20-Year Lease Market Price Per Square Foot/Month*$2.5 $2.8 $2.8 Square Footage 11,604 6,479 12,000 Value of Rent/Year $348,120 $217,694 $403,200 Rent Paid/Year $0 $22,361 $186,157 Net Estimated Value of Donation/Year $348,120 $195,333 $217,043 *The original Market Price Per Square Foot/Month was set at $2.50/square footage by contract. The agreement(s) calls for fair market value adjustments annually each January 1st based on the State of California Department of Industrial Relations, Division of Labor Statistics and Research's Consumer Price Index, All Urban Consumers, All Items, San Francisco-Oakland - San Jose, California. The contract with LGS Recreation requires a fair market rate reappraisal every five years. PROPOSED C - 35 FEE RELATED PROJECT LISTS Under California law, cities and other local agencies may exact Development Impact Fees on proposed development which must be paid as a condition of development approval. Development Impact Fees (“DIFs”) were enacted under Assembly Bill 1600 by the California Legislature in 1987 and codified under California Government Code §66000 et. seq., also referred to as the Mitigation Fee Act (the Act or AB 1600). Development Impact Fees are not ongoing fees or taxes; they are one-time fees, paid at the time of construction. Impact fees are not special assessments, nor are they permitted to cover ongoing operations and maintenance costs. By definition, “a fee is voluntary and must be reasonably related to the cost of the service provided by the local agency.” The fees are collected by local governmental agencies to pay for infrastructure or capital facilities needed to serve new development. Because impact fees are collected during the development approval process, the fees are typically paid by developers, builders, or other property owners who are seeking to develop property as a way of paying their “fair share” of needed capital facilities. The Town collects three Development Impact Fees that meet the reporting requirements of AB 1600: the Traffic Impact Mitigation Fee, Below-Market Priced Housing Program In-Lieu Fee, and the Construction Activity Impact Fee. The following tables provide potential project lists. Source Description Estimated Project Cost (2016 $) BMP Fee Eligible Cost BMP Extremely Low Income Housing Projects $ 1,100,000 $ 1,100,000 BMP Reacquisition of Distressed /Foreclosed Properties 700,000 700,000 BMP Hello Housing Program Services 40,000 40,000 Total $ 1,840,000 $ 1,840,000 Notes: BMP- Below Market Housing Program Below Market Price (BMP) Housing Program Potential Project List Source Description Estimated Project Cost (2016 $) Construction Impact Fee Eligible Cost CIP Streeet Repair and Resurfacing Projects ( 5 year-plan) $ 5,197,482 $ 5,197,482 Total $ 5,197,482 $ 5,197,482 Notes: Construction Impact Activity Potential Project List CIP - Town of Los Gatos, Capital Improvement Program PROPOSED C - 36  Fee Related Project Lists  Source Description Estimated Project Cost (2014 $) Mitigation Impact Fee Eligible Cost GP/VTP 2035 Blossom Hill Rd and Union Ave Intersection Improvements $ 1,200,000 $ 1,080,000 GP/VTP 2035 Los Gatos - Almaden Rd Improvements 3,000,000 1,500,000 GP/VTP 2035 Los Gatos Blvd Widening - Samaritan Dr to Camino Del Sol - Road widening, new sidewalks and bike lanes 4,000,000 2,000,000 GP/VTP 2035 Union Ave Widening and Sidewalks - complete ped and bike routes 3,000,000 1,500,000 GP/VTP 2035 Wood Rd Gateway on Santa Cruz Ave - roundabout 1,200,000 600,000 GP/VTP 2035 Central Traffic Signal Control System 750,000 72,600 GP/VTP 2035 Hwy 9 Los Gatos Creek Trail connector - new path and bridge for ped/bike 1,000,000 500,000 GP/VTP 2035 Hwy 9/N. Santa Cruz Ave Intersection Improvements 1,400,000 1,260,000 CIP Roberts Road Improvements from bridge to University 600,000 300,000 CIP Pollard Road Widening from Knowles to York Avenue 2,500,000 1,250,000 CIP Sidewalks infill - Van Meter, Fischer and Blossom Hill Schools 1,000,000 500,000 CIP Winchester Blvd/Lark Avenue Intersection Improvements 850,000 765,000 CIP Westbound Lark to Hwy 17 northbound ramps - add two right-turn lanes 3,750,000 3,375,000 CIP Unfunded Deferred Street Maintenance (Annual PMS Survey)10,500,000 1,016,400 GP Lark/Los Gatos Intersection Improvements - Add Third Left Turn Lanes for Eastbound and Northbound Approaches 1,200,000 1,080,000 GP Complete Street Improvements - Lark from Garden Hill to Los Gatos Blvd 2,100,000 1,050,000 GP Complete Street Improvements - SR 9 from University to Los Gatos Blvd 650,000 325,000 GP Complete Street Improvements - Blossom Hill Road from Old Blossom Hill Road to Regent Drive 3,000,000 1,500,000 GP Complete Street Improvements - Knowles from Pollard to Winchester 2,000,000 1,000,000 GP Complete Street Improvements - Winchester from Blossom Hill to Lark 1,500,000 750,000 GP Blossom Hill Road widening over Highway 17 2,000,000 1,000,000 GP Local Bikeway Improvements 750,000 375,000 Total $ 47,950,000 $ 22,799,000 Notes: VTP - Valley Transportation Plan, 2035 by Santa Clara Valley Transportation Authority. CIP - Town of Los Gatos Capital Improvement Program and pending construction project list GP - Town of Los Gatos General Plan Town of Los Gatos Traffic Mitigation Improvements Potential Project List PROPOSED C - 37 SUMMARY OF POSITIONS DEPARTMENTAL STAFF BY FUND 2012/13 2013/14 2014/15 2015/16 2016/17 Funded Funded Funded Funded Funded General Fund Town Council 0.85 0.85 0.85 0.50 0.50 Town Attorney 0.85 0.85 0.85 0.85 1.04 Administrative Services 15.20 15.48 15.98 16.33 16.28 Community Development 17.50 17.65 19.78 19.28 19.99 Police Department 57.00 56.50 59.00 58.00 58.00 Parks & Public Works 26.10 26.60 27.10 28.40 28.40 Library 8.60 10.30 10.80 11.00 12.25 Total General Fund Staff 126.10 128.23 134.35 134.35 136.45 Special Revenue Funds Parks & Public Works 1.00 1.00 1.00 1.00 1.00 Total Special Revenue Fund Staff 1.00 1.00 1.00 1.00 1.00 Internal Service Funds Town Attorney 0.65 0.65 0.65 0.65 0.71 Administrative Services 3.65 3.65 3.90 3.90 3.70 Parks & Public Works 3.90 3.90 3.90 4.10 4.10 Total Internal Services Funds Staff 8.20 8.20 8.45 8.65 8.51 Successor Agency to the Los Gatos RDA Administrative Services - - - - - Community Development 0.20 0.10 0.10 0.10 0.01 Total Redevelopment Agency Staff 0.20 0.10 0.10 0.10 0.01 Total Town FTEs 135.50 137.53 143.90 144.10 145.98 Full Time Equipvalent (FTE) Administrative Services Department staffing numbers include the following programs: Town Manager's Office; Human Resources; Finance & Administrative Services; Clerk Administration; Management Information Services; and Workers Compensation. PROPOSED C - 38 SUMMARY OF POSITIONS BUDGETED FTES BY DEPARTMENT Blue Bar Shading – Town Staff Purple Bar Shading – Hourly Employees FY 2016/17 Budgeted FTEs by Department (Includes Converted Hourly Employees) Administrative Services Department staffing numbers include the following six programs: Town Manager’s Office; Human Resources; Finance & Administrative Services; Clerk Administration; Management Information Services; Workers’ Compensation. Hourly Employee positions result from seasonal, temporary, and part-time labor needs. - 10.00 20.00 30.00 40.00 50.00 60.00 70.00 Town Council Town Attorney Administrative Services Community Development Police Department Parks & Public Works Library Authorized/Hourly Emp Funded Staff Total Town Staff converted Budgeted Departments Positions to FTEs Positions Town Council 0.63 0.08 0.71 Town Attorney 1.63 - 1.63 Administrative Services 19.35 1.06 20.41 Community Development 19.63 0.44 20.06 Police Department 59.00 1.46 60.46 Parks & Public Works 33.50 4.12 37.62 Library 12.25 4.59 16.84 Total Positions 145.98 11.75 157.72 PROPOSED C - 39 SUMMARY OF POSITIONS FUNDED FTES BY DEPARTMENT Five Year Staffing Trend FTEs represent Town staff positions funded in annual budgets. Numbers do not include temporary hours or the filled or unfilled status of the positions. - 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 Town Council Town Attorney Administrative Services Community Development Police Department Parks & Public Works Library 2012/13 2013/14 2014/15 2015/16 2016/17 Departments Funded Funded Funded Funded Funded Town Council 0.85 0.85 0.85 0.50 0.63 Town Attorney 1.50 1.50 1.50 1.50 1.63 Administrative Services 18.05 18.38 19.25 19.60 19.35 Community Development 17.50 17.50 19.50 19.00 19.63 Police Department 58.00 57.50 60.00 59.00 59.00 Parks & Public Works 31.00 31.50 32.00 33.50 33.50 Library 8.60 10.30 10.80 11.00 12.25 Total Budgeted FTEs 135.50 137.53 143.90 144.10 145.98 PROPOSED C - 40 SUMMARY OF PERSONNEL CHANGES FY 2016/17 he Town’s total budgeted personnel costs for FY 2016/17 increased to $25 million ($24.7 million in FY 2015/16) and accounts for 36.4% of the total Town’s expenditures. Rising health and pension rates have increased labor costs; however, reduction strategies including vacancy eliminations, structural reorganization, and realignments have helped to mitigate growing personnel expenditures. The following discussion describes some of the staffing expenditures, savings, and budget impacts. Employee Compensation Personnel costs represent salaries of full-time and part-time personnel (including vacation, holiday, and sick leave compensation) and benefits, including health coverage, life and disability insurance, and retirement contributions. For represented positions, annual salary increases and benefit adjustments are negotiated under each bargaining unit’s Memorandum of Understanding (MOUs). Salary increases and benefit adjustments for unrepresented positions are determined under the Council’s authority and are not subject to bargaining. Memorandums of Understanding (MOUs) The FY 2016/17 budget does not reflect potential salary changes that may result from the agreements that currently are in negotiation. Negotiations with all three unions are expected to be underway in spring 2016. The status of current or anticipated future labor actions are as follows: • In compliance with the California Public Employees’ Pension Reform Act (PEPRA), an additional pension tier was implemented for all non-sworn and management employees, changing the pension formula to 2% at 62 for employees hired after January 1, 2013 who were not previously in a public pension system. • For sworn employees, the pension formula under PEPRA changed to 2.7% at 57 for safety employees hired after January 1, 2013 who were not previously in a public pension. • The Police Officers’ Association (POA) MOU agreement expires on September 30, 2016. • The TEA and AFSCME labor agreements expire on June 30, 2016. Benefits The Town contracts for medical coverage through CalPERS and rates are adjusted each January for the calendar year. During 2014 Kaiser, which serves as the Town’s benchmark plan, surpassed the actuarial estimates and increased its annual rates by 11% over the prior year, in 2015 Kaiser rates decreased reducing benefit costs to the Town, however in 2016 Kaiser rates increased 4.5% from the prior year. As evidenced by this fluctuation, this is an area of continuing concern and volatility. Dental, vision and life insurance rates are expected to remain relatively stable. Conversely, short and long-term disability insurance costs are increasing significantly due to changes in the market and an increase in claims. Efforts are underway to identify measures to control and/or reduce costs. It is important to note that changes in health coverage are generally subject to negotiations with affected employee groups. Pension Plan In FY 2012/13, a three-tier pension plan was implemented for non-sworn, changing the pension formula from 2.5% at 55 to 2% at 60 for new hires after September 15, 2012 or 2% at 62 for “new” employees hired after January 1, 2013 who have not previously worked in a public pensions system. Similarly, in FY 2012/13 the State implemented a new tier for safety employees, changing the pension formula for “new” employees from 3% at 50 to 2.7% at 57, effective January 1, 2013. While this does not provide immediate cost savings, it is anticipated to reduce future salary and benefit expenditures in the next 10-15 years. Pension reform continues to be an important topic in regard to cost-containment and staff is monitoring a number of state-wide initiatives that may impact future pension costs. T PROPOSED C - 41 SUMMARY OF PERSONNEL CHANGES FY 2016/17 More recently, however, CalPERS has significantly increased contribution rates to cover rising retiree costs and CalPERS investment losses sustained in the down economy. In FY 2014/15, the Town’s miscellaneous employee rate was projected to increase to 23.45% and the safety rate was projected to increase to 43.87%. However, by Council authority in June 2014, the Town paid off its CalPERS side fund liability of $4.5M which substantially decreased PERS sworn rates in future years. As a result of this payoff, the FY 2014/15 Town’s miscellaneous employee rate was 22.38% and the safety rate was 29.56%, a sworn rate reduction of 14.31% from previously forecasted. In FY 2016/17, the Town’s miscellaneous employee rate is projected to increase to 26.96%; the safety rate is projected to increase to 36.18%; and the PEPRA safety rate is projected to be 12.25%. In April 2013, the CalPERS Pension and Health Benefits Committee adopted recommendations to modify both the smoothing and amortization policies and implement these changes going forward with an impact to employer rates beginning in FY 2015/16. As a result of this change, the smoothing period will change from a 15-year rolling period to a five-year direct smoothing rate. The amortization period changed from a 30-year rolling period to a 30-year fixed rate. These changes will require the Town to pay significantly more into the system. Estimates indicated that these changes would result in the Town paying 32% more over 10 years. Issued by CalPERS in November 2015, the following schedule reflects the Town’s PERS pension rate for FY 2016/17 and expected rate for FY 2017/18. All other future rates are based on the Town’s five-year forecast model. Management Strategies A number of strategies have been implemented to mitigate rising personnel costs. These include adjusting user fees to recover the cost of staff time to provide Town services, focusing staff time on core services to maintain planned reductions in budgeted overtime, reducing hourly staffing use, and eliminating vacant, benefited positions. In light of limited available resources and uncertain economic trends in revenues sources such as Sales Tax, limited staffing augmentations have been included in the FY 2016/17 budget. During FY 2015/16 mid-year budget adjustments Council approved one time Town-wide hire ahead funding utilizing a pilot program. The possibility of a hire ahead pilot program continuing for FY 2016/17 remains. Hire ahead opportunities for any Department are within the existing budget authority of the Town Manager. Hire ahead allows the Town to hire in advance of known separations using salary savings from specific Department budgets. PERS Pension Plan FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 Safety 3% @ 50 38.65% 39.31% 40.85% 29.56% 32.36% 36.18% 39.36% 42.86% 46.36% 46.36% Misc 2.5% @ 55 18.49% 19.62% 21.90% 22.38% 25.43% 26.96% 28.90% 30.80% 32.36% 37.11% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 Safety 3% @ 50 Misc 2.5% @ 55 PROPOSED C - 42 SUMMARY OF PERSONNEL CHANGES FY 2016/17 Overtime Overtime expenditures continue to be assessed and adjusted when appropriate. While unpredictable or non- controllable events will impact the Town’s limited public safety and public works maintenance resources, continued adjustments to schedules and workload have been successful in reducing budgeted overtime. Although some non- critical Town services have experienced moderate service level reductions, scheduling restrictions have not seriously impacted routine operations. In FY 2010/11, the patrol staffing schedule was modified from a combination 10-hour and 12-hour schedule with five patrol teams to a straight 12-hour schedule with four patrol teams. This new structure provided increased patrol staffing levels across the shifts; however, the department is evaluating the impact of increased time off levels. Staffing Changes The FY 2016/17 Operating Budget has 157.72 budgeted FTEs, including temporary staff. This reflects a decrease of 0.58 FTE compared to the prior year. The recommended FY 2016/17 staffing levels reflect the following changes from the prior year’s adjusted budget:  Administrative Services and Town Offices – Staffing reallocations occurred between the Administrative Services, Town Offices, and Library programs; however total FTEs between the programs decreased. The budget also reflects Council action in October 2015 to reinstate a full-time Assistant Town Manager position and the reclassification of the Administrative Technician position to Administrative Analyst position to align the job class more closely to the works as assigned. In addition, a 0.63 FTE Office Assistant positon was increased to a 1.0 FTE position to provide administrative support to the Human Resources, Town Attorney and Management Information Systems Departments.  Police –The FY 2016/17 budget includes an operational restructure and reorganization of non-sworn positions which best meets the demands within the Department. The reorganization resulted in a reclassification of a 1.0 FTE Records Specialist within Property and Evidence Investigation Program, reduction of temporary hours for Communication Dispatcher and addition of a 1.0 FTE Communications Dispatcher within the Records and Communication Program. Due to the workload, expertise required, and additional duties of managing Property and Evidence, the Department has recognized the need to reclassify the 1.0 FTE Property and Evidence Records Specialist back to its previous classification as a Community Service Officer, this 1.0 FTE Community Service Officer will be funded from Investigations. In addition, the Records and Evidence Manager has been reclassified to a Police Records Manager. This restructure allowed for improved alignment around departmental effectiveness and vision. These modifications were made without fiscal impact. The part-time Community Services Officer will be eliminated from the Community Development and Police Departments’ budgets due to lack of nighttime complaints. In addition to the operational reorganization, temporary staff funding is proposed to the FY 2016/17 budget for technology support, background investigations, and parking control officers. The temporary hour increase is funded from one-time funding. Staff anticipates bringing forward an ongoing funding source for this temporary hour increase at the FY 2016/17 mid-year review for Council consideration, after the completion of the bargaining unit agreements and other fiscal decisions.  Community Development Department (CDD) – Budgeted salary and benefit expenditures reflect the addition of a 0.125 FTE one-time funding for an Associate Planner position. Staff anticipates bringing forward an ongoing funding source for this FTE increase at the FY 2016/17 mid-year review. The part- time Community Services Officer will be eliminated due to lack of nighttime complaints. The budget also reflects Council action in October 2015 to reinstate a full-time Community Development Director position  Parks & Public Works (PPW) – The Parks and Public Works budget reflects a status quo budget no changes in FTEs and a small reduction in temporary hours.  Library - The FY 2016/17 Library budget increased moderately to reflect the new Library Management Team structure. Additionally, some temporary hours have been converted into permanent positions to increase stability in staffing and continuity in service delivery. The temporary Senior Page hours were PROPOSED C - 43 SUMMARY OF PERSONNEL CHANGES FY 2016/17 converted to 1.0 FTE Senior Library Page for better oversight and efficiency of the check-in and shelving functions at the Library. In addition to direct personnel expenditures, departments are charged for internal support services and employee insurance costs through payroll allocation charges. Appropriate charge-back rates are established based on either employee group historical costs or through a flat surcharge per employee. Annual reviews of all funds may result in adjustments to the rates as needed. Liability Insurance Self-Insurance Fund rates (liability claim insurance premiums) for FY 2016/17 remain at the prior year rates. The Self-Insurance Fund Balance is declining as a result of adverse claims against the Town over the last several years. Staff will be recommending a transfer into this fund to restore this fund to an appropriate funding level. Workers’ Compensation The Workers’ Compensation fund balance is declining as a result of several injuries keeping employees out of work for extensive periods of time. The FY 2016/17 Workers’ Compensation rates remain the prior year level. Long-term job related injuries have resulted in a rapid decline in fund balance in the Workers’ Compensation fund and therefore 1.5% increases in rates for FY 2015/16 were programmed to offset the declining fund balance. Management Information The Management Information Systems (MIS) program is funded through two different charge-backs to the departments. One charge is based on a percentage of salary to fund the salaries and operating expenditures of the MIS program. The second allocation charge is based on the department’s computer and printer equipment, established to fund the replacement cost of current technology equipment. PROPOSED C - 44 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2012/13 2013/14 2014/15 2015/16 2016/17 Funded Funded Funded Funded Funded Comments Town Attorney 1.00 1.00 1.00 1.00 1.00 Deputy Town Attorney 0.50 0.50 0.50 0.50 0.63 CY add 0.125 FTE TOTAL DEPARTMENT FTEs 1.50 1.50 1.50 1.50 1.63 Town Manager 1.00 1.00 1.00 1.00 1.00 Assistant Town Manager 1.00 1.00 - - 1.00 CY add 1.0 FTE Asst. Town Manager/CDD Director - - 0.50 0.50 - CY delete 0.50 FTE Deputy Town Manager 1.00 - - - - Assistant to Town Manager - 1.00 1.00 1.00 1.00 Executive Asst. to Town Mgr.1.00 1.00 1.00 1.00 1.00 Economic Vitality Manager 1.00 - - - - Economic Vitality Coordinator - 0.50 0.63 0.63 0.63 Communications Coordinator - - 1.00 1.00 - CY delete 1.0 FTE Office Assistant 1.65 1.63 1.63 0.63 - CY delete 0.625 FTE Administrative Technician - 0.50 - - - TOTAL DEPARTMENT FTEs 6.65 6.63 6.75 5.75 4.63 Human Resources Director 1.00 1.00 1.00 1.00 1.00 Administrative Analyst 1.00 1.00 1.00 1.00 1.00 Human Resources Specialist - 0.50 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 2.00 2.50 3.00 3.00 3.00 Finance & Admin. Director 1.00 1.00 1.00 1.00 1.00 Assistant Budget/Finance Director 1.00 - - - - Finance Manager - 1.00 1.00 1.00 1.00 Accountant/Finance Analyst 1.00 1.00 1.00 1.00 1.00 Payroll Specialist 1.00 1.00 1.00 1.00 1.00 Budget Analyst 0.50 - - - - Administrative Analyst - - - - 1.00 CY add 1.0 FTE Administrative Technician - 1.00 1.00 1.00 - CY delete 1.0 FTE Account Technician 2.00 1.35 1.35 1.35 1.35 TOTAL DEPARTMENT FTEs 6.50 6.35 6.35 6.35 6.35 Clerk Administrator 0.50 0.50 1.00 1.00 1.00 Deputy Clerk 0.50 0.50 - - - Office Assistant - - - 1.00 2.00 CY add 1.0 FTE TOTAL DEPARTMENT FTEs 1.00 1.00 1.00 2.00 3.00 MIS Manager 1.00 1.00 1.00 1.00 1.00 Network Administrator 1.00 1.00 1.00 1.00 1.00 IT Technician 0.75 0.75 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 2.75 2.75 3.00 3.00 3.00 CLERK ADMINISTRATION TOWN MANAGER'S OFFICE HUMAN RESOURCES FINANCE & ADMINISTRATIVE SERVICES TOWN ATTORNEY'S OFFICE MANAGEMENT INFORMATION SERVICES PROPOSED C - 45 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2012/13 2013/14 2014/15 2015/16 2016/17 Funded Funded Funded Funded Funded Comments Asst. Town Manager/CDD Director - - 0.50 0.50 - CY delete 0.50 FTE Community Development Dir.1.00 1.00 - - 1.00 CY add 1.0 FTE Asst. Community Dev. Dir.- 1.00 - - - Planning Manager 1.00 1.00 1.00 1.00 1.00 Building Official 1.00 1.00 1.00 1.00 1.00 Administrative Analyst 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Senior Planner 3.00 2.00 2.00 2.00 2.00 Associate Planner 2.00 2.00 2.00 2.50 2.63 CY add 0.125 FTE Assistant Planner - - 1.00 1.00 1.00 Planning Technician 0.50 0.50 2.00 1.00 1.00 Building Inspector 4.00 4.00 4.00 4.00 4.00 Counter Technician 2.00 2.00 2.00 2.00 2.00 Code Enforcement Officer - - 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 17.50 17.50 19.50 19.00 19.63 Chief of Police 1.00 1.00 1.00 1.00 1.00 Police Captain 2.00 2.00 2.00 1.00 1.00 Police Lieutenant - - - 2.00 2.00 Police Sergeant 6.50 6.00 6.00 6.00 6.00 Police Corporal 5.00 5.00 5.00 4.00 4.00 Police Officer 24.00 24.00 26.00 25.00 25.00 Community Outreach 1.00 1.00 1.00 1.00 1.00 Community Services Officer 4.00 4.00 2.00 2.00 2.00 Police Admin Services Mgr.1.00 1.00 - - - Records & Evidence Manager - - 1.00 1.00 - CY delete 1.0 FTE Police Records Manager - - - - 1.00 CY add 1.0 FTE Administrative Analyst - - 1.00 1.00 1.00 Executive Assistant to Chief 1.00 1.00 1.00 1.00 1.00 Communications Dispatcher Lead - - - 1.00 1.00 Communications Dispatcher 7.50 7.50 7.00 6.00 7.00 CY add 1.0 FTE Parking Control Officer 2.00 2.00 2.00 2.00 2.00 Police Records Specialist 3.00 3.00 5.00 5.00 4.00 CY delete 1.0 FTE TOTAL DEPARTMENT FTEs 58.00 57.50 60.00 59.00 59.00 COMMUNITY DEVELOPMENT POLICE PROPOSED C - 46 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2012/13 2013/14 2014/15 2015/16 2016/17 Funded Funded Funded Funded Funded Comments Parks & Public Works Director 1.00 1.00 1.00 1.00 1.00 Asst PPW Dir/Town Engineer 1.00 1.00 - - - Town Engineer - - 1.00 1.00 1.00 Superintendent 2.00 1.00 1.00 1.00 1.00 Facilities & Environmental Services Mgr - 1.00 1.00 1.00 1.00 Senior Civil Engineer - - - 1.00 1.00 Administrative Analyst 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 2.00 2.00 Administrative Assistant 2.00 2.00 2.00 2.00 2.00 Office Assistant - - - 0.50 0.50 Environmental Service Coordinator 0.50 0.50 1.00 - - Associate Engineer 3.00 3.00 3.00 2.00 2.00 Assistant Engineer 1.00 1.00 1.00 1.00 1.00 Capital Project Manager - - - 1.00 1.00 Engineering Technician 1.00 1.00 1.00 1.00 1.00 Sr Engineering Inspector 1.00 1.00 1.00 1.00 1.00 Engineering Inspector - 1.00 1.00 1.00 1.00 Building Inspector 0.50 - - - - Parks Service Officer 1.00 1.00 1.00 1.00 1.00 Town Arborist 1.00 1.00 1.00 1.00 1.00 Tree Trimmer/High Climber 1.00 1.00 1.00 1.00 1.00 Lead Parks & Maint. Worker 3.00 3.00 3.00 3.00 3.00 Sweeper Operator 1.00 1.00 1.00 - - Parks & Maintenance Worker 8.00 8.00 8.00 9.00 9.00 Equipment Mechanic 1.00 1.00 1.00 1.00 1.00 TOTAL DEPARTMENT FTEs 31.00 31.50 32.00 33.50 33.50 Library Director 1.00 - - - 1.00 CY add 1.0 FTE Town Librarian - 2.00 2.00 2.00 - CY delete 2.0 FTE Library Manager 2.00 - - - - Division Manager - - - - 2.00 CY add 2.0 FTE Librarian 2.25 2.55 3.55 3.75 3.00 CY delete 0.75 FTE Circulation Supervisor 1.00 - - - - Library Technology Specialist - 1.00 1.00 1.00 1.00 Library Assistant 1.75 1.50 1.00 1.00 1.00 Library Technician - 0.75 0.75 0.75 0.75 Administrative Assistant 0.60 - - - - Customer Service Supervisor - 1.00 1.00 1.00 1.00 Customer Servicer Specialist - 1.50 1.50 1.50 1.50 Sr Library Page - - - - 1.00 CY add 1.0 FTE TOTAL DEPARTMENT FTEs 8.60 10.30 10.80 11.00 12.25 TOTAL TOWN FTEs 135.50 137.53 143.90 144.10 145.98 LIBRARY PARKS and PUBLIC WORKS DEPARTMENT PROPOSED C - 47 TOWN STAFF POSITIONS BY HOME DEPARTMENT 2012/13 2013/14 2014/15 2015/16 2016/17 Funded Funded Funded Funded Funded Town Council 5.00 5.00 5.00 5.00 5.00 TOTAL ELECTED OFFICIALS 5.00 5.00 5.00 5.00 5.00 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Hours by Department Funded Funded Funded Funded Funded Town Council 175 175 175 175 175 Administrative Services 1,836 1,370 1,370 1,476 2,196 CY 720 hours increase Community Development 832 3,328 2,130 1,165 915 CY 250 hours reduction Police Department 2,920 2,920 3,977 4,504 3,032 CY 1,472 hours reduction Parks & Public Works 8,791 8,791 10,754 9,566 8,567 CY 999 hours reduction Library Department 14,120 10,237 10,237 10,237 9,546 CY 691 hours reduction Total Temporary Hours by Department 28,674 26,821 28,643 27,123 24,431 CONVERTED HOURLY EMPLOYEES 13.79 12.89 13.77 13.04 11.75 (1.00 FTE = 2080 hours) ELECTED OFFICIALS HOURLY EMPLOYEES PROPOSED C - 48