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Attachment 1NPROPOSED G - 1 LIST OF FUNDS GENERAL FUND ....................................................................................................................................... 111 SPECIAL REVENUE FUNDS HCD – Housing Rehabilitation Fund (Administrative Services) ...................................................... 211 HCD – CDBG Fund (Administrative Services) ................................................................................. 212 Non-Point Source Maintenance Fund (Parks and Public Works) ...................................................... 222 Assessment District Funds (Parks and Public Works) ................................................................ 231-237 INTERNAL SERVICE FUNDS ABAG Self-Insurance Fund (Administrative Services) ..................................................................... 611 Workers’ Compensation Fund (Administrative Services) .................................................................. 612 Management Information Fund (Administrative Services) ................................................................ 621 Office Stores Fund (Administrative Services).................................................................................... 622 Equipment Replacement Fund (Parks and Public Works) ................................................................ 631 Vehicle Maintenance Fund (Parks and Public Works) ....................................................................... 632 Facilities Maintenance Fund (Parks and Public Works) .................................................................... 633 TRUST AND AGENCY FUNDS Library Trust (Library) ....................................................................................................................... 711 History Project Trust (Library) ........................................................................................................... 712 Clelles Ness Trust (Library) ............................................................................................................... 713 Susan McClendon Trust (Library) ...................................................................................................... 714 Barbara J Cassin Trust Fund............................................................................................................... 716 Downtown Parking District Assessment (Administrative Services) .................................................. 721 Successor Agency to the Town of Los Gatos RDA trust Fund (Administrative Services) ................ 942 CAPITAL PROJECT FUNDS General Fund Appropriated Reserves (GFAR) .................................................................................. 411 Grant Funded Projects Fund ............................................................................................................... 421 Storm Drain Basin Project Funds ................................................................................................ 461-463 Traffic Mitigation Fund ...................................................................................................................... 471 Utility Undergrounding Fund ............................................................................................................. 472 Gas Tax .............................................................................................................................................. 481 SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY FUNDS Successor Agency to the Town of Los Gatos RDA Trust Fund (Administrative Services) ............... 942 PROPOSED G - 2 LIST OF PROGRAMS GENERAL FUND Town Offices Town Council ................................................................................................................................... 1101 Town Attorney ................................................................................................................................. 1301 Administrative Services Department Non-Departmental ............................................................................................................................ 1201 Town Manager’s Office ................................................................................................................... 2101 Human Resources ............................................................................................................................. 2201 Finance and Administrative Services ............................................................................................... 2301 Clerk Administration ....................................................................................................................... 2401 Operating Grants .............................................................................................................................. 2801 Community Development Department Administration .................................................................................................................................. 3101 Development Review ....................................................................................................................... 3201 Advanced Planning ........................................................................................................................... 3202 Inspection Services ........................................................................................................................... 3301 Code Compliance ............................................................................................................................. 3401 BMP Housing ................................................................................................................................... 3501 Police Department Administration .................................................................................................................................. 4101 Records & Communication .............................................................................................................. 4201 Personnel & Community Services ................................................................................................... 4202 Patrol ............................................................................................................................................... 4301 Traffic .............................................................................................................................................. 4302 Investigations ................................................................................................................................... 4303 Parking Management ........................................................................................................................ 4304 Operating Grants ................................................................................................................... 4803 - 4810 Parks & Public Works Department Administration ................................................................................................................................. 5101 Engineering Program ........................................................................................................................ 5201 Engineering Development Services ................................................................................................. 5202 Parks & Forestry ............................................................................................................................... 5301 Conservation, Recycling and Sustainability ..................................................................................... 5302 Streets & Signals ............................................................................................................................. 5401 Property Damage .............................................................................................................................. 5405 PROPOSED G - 3  LIST OF PROGRAMS  GENERAL FUND CONTINUED Library Services Department Administration ................................................................................................................................. 7101 Adult Services / Reference ............................................................................................................... 7201 Youth Services ................................................................................................................................. 7202 Acquisitions / Cataloging ................................................................................................................. 7203 Circulation / Systems Administration .............................................................................................. 7204 INTERNAL SERVICE FUNDS ABAG – Self Insurance .......................................................................................................................... 1302 Workers Compensation ........................................................................................................................... 2202 Office Stores ........................................................................................................................................... 2302 Management Information Systems ......................................................................................................... 2501 Equipment Replacement ........................................................................................................................ 5402 Vehicle Maintenance ............................................................................................................................. 5403 Building Maintenance ............................................................................................................................. 5404 SPECIAL REVENUE FUNDS Parking Management Program................................................................................................................ 4304 Non-Point Source Program ..................................................................................................................... 5203 HCD – Housing Rehabilitation ............................................................................................................... 6501 HCD – CDBG Reimbursable Administration ......................................................................................... 6502 HCD – Community Development Block Grant ...................................................................................... 6503 Assessment Districts Blackwell District ............................................................................................................................... 5501 Kennedy Meadows District ................................................................................................................. 5502 Gemini Court District ......................................................................................................................... 5503 Santa Rosa Heights District ................................................................................................................ 5504 Vasona Heights District ...................................................................................................................... 5505 Hillbrook District ................................................................................................................................ 5506 TRUST AND AGENCY FUNDS Parking District Assessment ................................................................................................................... 2303 Library Trust ........................................................................................................................................... 7301 Clelles Ness Trust ................................................................................................................................... 7302 History Project Trust ............................................................................................................................... 7303 Susan McClendon Trust .......................................................................................................................... 7304 Barbara J Cassin Trust Fund ................................................................................................................... 7305 Successor Agency to the Town of Los Gatos RDA Trust Fund ............................................................. 9403 CAPITAL PROJECT FUNDS GFAR GFAR Administration ......................................................................................................................... 8011 Almond Grove Street Rehabilitation Project ........................................................................ 411-811-0003 Hillside Road Repair & Resurfacing .................................................................................... 411-811-0007 Street Repair & Resurfacing ................................................................................................. 411-811-9901 Annual Street Restriping ...................................................................................................... 411-811-9902 Pavement Rehabilitation – Crack Seal .................................................................................. 411-811-9903 Guardrails Replacement Projects .......................................................................................... 411-812-0120 PROPOSED G - 4  LIST OF PROGRAMS  CAPITAL PROJECT FUNDS CONTINUED Electrical Panel Replacement on Pageant Way .................................................................... 411-812-0122 Crosswalk Improvements at Santa Cruz Avenue/Blossom Hill Road .................................. 411-812-0125 Crosswalk Lighting Upgrade ................................................................................................ 411-812-0126 Traffic Around the Schools ................................................................................................... 411-812-0127 Traffic Calming ..................................................................................................................... 411-812-9910 Monument Control Network Update .................................................................................... 411-813-0214 Downtown Parking Signs Enhancements ............................................................................. 411-813-0216 Sidewalk Improvements for Shannon/Los Gatos Blvd/ Cherry Blossom ............................. 411-813-0218 Stonybrook and Kennedy Sidewalk Improvements .............................................................. 411-813-0219 Intersection Safety & Traffic Flow Improvements .............................................................. 411-813-0220 Sidewalk Improvements – Multiple Locations .................................................................... 411-813-0221 Montebello Way Island Removal ........................................................................................ 411-813-0223 LED Streetlights ................................................................................................................... 411-813-0224 Bicycle and Pedestrian Master Plan ..................................................................................... 411-813-0226 Traffic Signal Modernization ............................................................................................... 411-813-0227 Intelligent Parking Infrastructure ......................................................................................... 411-813-0228 Curb, Gutter, & Sidewalk Maintenance ................................................................................ 411-813-9921 Retaining Wall Repairs ......................................................................................................... 411-815-9930 224 W Main Property Acquisition (Parking Lot 6) .............................................................. 411-817-0704 Downtown Parking Lots Seal Coat & Restriping ................................................................. 411-817-0705 Parking Lot 4 Repair & Waterproofing ................................................................................ 411-817-0706 Pageant Way Parking Lot Reconstruction ............................................................................ 411-817-0707 Quito Road - Bridge Replacement ........................................................................................ 411-818-0801 Town Beautification Improvements ...................................................................................... 411-821-2002 Energy Efficiency Upgrades – Town-wide .......................................................................... 411-821-2008 HVAC Upgrades – Old Library ........................................................................................... 411-821-2103 Old Library Reuse Project .................................................................................................... 411-821-2105 Former Library Roof Improvements .................................................................................... 411-821-2109 Civic Center Building Energy Efficiency Measures ............................................................. 411-821-2110 Civic Center Improvements ................................................................................................. 411-821-2111 Exterior Lighting Replacement – Civic Center .................................................................... 411-821-2112 Civic Center – Fountain Modification ................................................................................. 411-821-2113 HVAC System Upgrade – Civic Center ............................................................................... 411-821-2114 Building Replacement at Corporation Yard .......................................................................... 411-821-2302 Fuel Systems Enhancement .................................................................................................. 411-821-2304 Engineering Document Archiving ....................................................................................... 411-821-2305 PPW Interoperability Radio Project ...................................................................................... 411-821-2306 Police Interoperability Radio Project .................................................................................... 411-821-2402 Park Rehabilitation – Bachman Park .................................................................................... 411-831-3104 Blossom Hill Park Restroom Rehabilitation ......................................................................... 411-831-3406 Blossom Hill Park Little League Backstop ........................................................................... 411-831-3407 Oak Meadow Park Upgrades ................................................................................................ 411-831-4004 Plaza Park Improvements ..................................................................................................... 411-831-4203 Worcester Park ...................................................................................................................... 411-831-4301 Parks Playground Fibar Project............................................................................................. 411-831-4605 Tennis Courts Resurfacing – Various Town Locations ........................................................ 411-831-4608 Open Space Trail Upgrades .................................................................................................. 411-832-4504 Los Gatos Creek Trail Improvements at Charter Oaks ......................................................... 411-832-4506 PROPOSED G - 5  LIST OF PROGRAMS  CAPITAL PROJECT FUNDS CONTINUED Audio/Video System Upgrade .............................................................................................. 411-841-6001 Town-wide Document Imaging Project ................................................................................ 411-841-6003 Information System Upgrade ................................................................................................ 411-841-6101 Tiburon/CAD RMS Upgrade ................................................................................................ 411-841-6302 Silicon Valley Radio Interoperability Project (SVRIP) - Service ......................................... 411-841-6305 Traffic Mitigation Traffic Mitigation Administration ...................................................................................................... 8041 Crosswalk Improvements at Santa Cruz Avenue/Blossom Hill Road .................................. 471-812-0125 Crosswalk Lighting Upgrade ................................................................................................ 471-812-0126 Highway 9/University Intersection ....................................................................................... 471-813-0202 Winchester Blvd/ Lark Ave Intersection .............................................................................. 471-813-0203 Blossom Hill Road / Cherry Blossom Lane Intersection ...................................................... 471-813-0212 LG Boulevard / Shannon Improvements .............................................................................. 471-813-0213 Monument Control Network Update .................................................................................... 471-813-0214 Intersection Safety & Traffic Flow Improvements .............................................................. 471-813-0220 Bicycle and Pedestrian Master Plan ..................................................................................... 471-813-0226 Cut-Through Traffic Mitigation ........................................................................................... 471-813-0229 Grant Funded CIP Projects Grant Administration Program............................................................................................................ 8021 Hillside Road Repair & Resurfacing Project ........................................................................ 421-811-0007 Highway 9/University Intersection ....................................................................................... 421-813-0202 Public Access Infrastructure Improvement Project ............................................................... 421-821-2102 Bicycle and Pedestrian Master Plan ..................................................................................... 421-813-0226 Traffic Signal Modernization ............................................................................................... 421-813-0227 Storm Drain Basin Projects Storm Drain #1Administration Program ............................................................................................. 8031 Storm Drain #2Administration Program ............................................................................................. 8032 Storm Drain #3Administration Program ............................................................................................. 8033 Hernandez Avenue Storm Drain Improvements ................................................................... 463-816-0409 Utility Undergrounding Projects Utility Undergrounding Administration .............................................................................................. 8042 Utility Undergrounding ......................................................................................................... 472-813-0225 Gas Tax Fund Projects Gas Tax Administration ...................................................................................................................... 8051 Street Repair & Resurfacing ................................................................................................. 481-811-9901 SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY FUNDS Successor Agency to the Los Gatos RDA Capital Projects Other ................................................................................................................................................... 9402 Program Administration ...................................................................................................................... 9403 Successor Agency (SA) to the Los Gatos RDA Debt Service program SA Debt for 2002 COPs ...................................................................................................................... 9404 PROPOSED G - 6  LIST OF PROGRAMS  SUCCESSOR AGENCY TO THE LOS GATOS REDEVELOPMENT AGENCY FUNDS CONTINUED SA Debt for 2010 COPs ...................................................................................................................... 9405 Successor Agency Affordable Housing Program Program Administration ...................................................................................................................... 9301 PROPOSED G - 7 GLOSSARY Accounting System - The set of records and procedures that are used to record, classify, and report information on the financial status and operations of the Town. Accrual Basis Accounting - Under this accounting method, transactions are recognized when they occur, regardless of the timing of related cash receipts and disbursements. Ad Valorem - Latin for “in proportion to the value”. This refers to property taxes levied on value and includes the General Obligation (G.O.) Bond rates added to the 1% rate allowed by Prop. 13. These rates are applied to the secured, unsecured, supplemental, and other miscellaneous tax rolls. Adoption - Formal action by the Town Council, which sets the spending limits for the fiscal year. The town's budget is adopted by Council resolution. Agency Fund - A fund used to account for assets held by the Town in the capacity of an agent for individuals, organizations, or other governmental entities. Annual Budget - A budget applicable to a single fiscal year. Appropriation - An authorization made by the Town Council, which permits officials to incur obligations against and to make expenditures of government resources. Appropriations are typically granted for a one-year period. Assessed Valuation - A value established for real property for use as a basis in levying property taxes. For all agencies in the State of California, the County for the secured and unsecured property tax rolls establishes assessed value; the utility property tax roll is valued by the State Board of Equalization. Under Article XIII of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. Proposition 13 also modified the value of real taxable property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change of ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal. Assessment Fund - A fund used to account for special levies made against certain properties to defray part or all of the costs of a specific improvement or service deemed to primarily benefit those parties. Audit - Prepared by an independent Certified Public Accountant (CPA), the primary objective of an audit is to determine if the Town's Financial Statements present fairly the Town's financial position and results of operations in conformity with generally accepted accounting principles. In conjunction with their performance of an audit, it is customary for an independent auditor to issue a Management Letter stating the adequacy of the Town's internal controls as well as recommending improvements to the Town's financial management practices. Balanced Budget – Balanced budget is a budget with operating revenues equal to operating expenditures and neither a budget deficit nor a budget surplus. More generally, it refers to a budget with no deficit, but possible with surplus. Bonds - A bond is a written promise to pay a specified sum of money (called the face value or principle amount) at a specified date or dates in the future (called the maturity date) together with period interest at a specified rate. Bonds are typically used to finance capital facilities. PROPOSED G - 8  GLOSSARY  Budget - As the Town's financial operating plan for the fiscal year, the budget displays the estimated expenditures (costs) for providing services and the estimated sources of revenue (income) to pay for them. Once the Town Council adopts the budget, the total becomes the maximum spending limit. Los Gatos' budget encompasses fiscal year (July 1, through June 30). Budget Amendment - The Council has the sole responsibility for adopting the Town's budget, and may amend or supplement the budget at any time after adoption. The Town Manager has the authority to approve administrative adjustments to the budget as outlined in the Financial and Administrative Policies set by Council. Budget Calendar - The schedule of key dates which the Town follows in the preparation and adoption of the budget. Budget Document - The official financial spending and resource plan submitted by the Town Manager and adopted by the Town Council explaining the approved budget to the public and Town Council. Budget Message - Included in the opening section of the budget, the Budget Message provides the Council and the Public with a general summary of the most important aspects of the budget, comparative data from previous fiscal years, goals and objectives, and the views and recommendations of the Town Manager. Budget Overview - This section provides an overview of the changes adopted in the budget. Additionally, the significant impacts of budgetary changes are outlined along with dollar amounts (increase/decrease). Budget Policies - General and specific guidelines adopted by the Council that governs the financial plan's preparation and administration. Building Permit - Fee required for new construction or for any alteration or addition to a residence or commercial building. The fee is based on square footage and valuation. Electrical or plumbing/mechanical work will require a similar permit. Business License Tax - A tax imposed on those conducting business within the Town limits. Business License Tax is a non-regulatory tax implemented for the purpose of raising revenue to support General Fund activities. Capital Acquisitions/Assets – See “Fixed Assets.” Capital Expenditures - Funds spent for the construction, improvement, or rehabilitation of Town infrastructure. Capital Improvement Program (CIP) - The plan or schedule of expenditures for major construction of roads, sidewalks, Town facilities and/or park improvements and for the purchase of equipment. The Town of Los Gatos' CIP follows a five-year schedule. Although the Town adopts the CIP budget in a process that is separate from the adoption of the budget, the budget incorporates the first-year of the five- year CIP. PROPOSED G - 9  GLOSSARY  Capital Projects - Expenditures that have a value of $25,000 or more which result in the acquisition of, construction of, rehabilitation of or additions to, infrastructure and fixed assets with a useful life of at least 5 years at a fixed location. Capital Projects - Expenditures that have a value of $25,000 or more which result in the acquisition of, construction of, rehabilitation of or additions to, infrastructure and fixed assets with a useful life of at least 5 years at a fixed location. Depreciation – The process of allocating the total cost of fixed assets over each period of their usefulness to the government. Capital Projects Fund - In governmental accounting, a fund that accounts for financial resources to be used for the acquisition or construction of capital facilities. The total cost of a capital project is accumulated in a single expenditure account which accumulates until the project is completed, at which time the fund ceases to exist. Cash Basis Accounting - A basis of accounting under which transactions are recognized only when cash is received or disbursed. Certificate of Participation (COP) - A type of financing in which investors purchase a share of the lease revenues of a program rather than the bond being secured by those revenues. The authority usually uses the proceeds to construct a facility that is leased to the municipality, releasing the municipality from restrictions on the amount of debt that they can incur. Community Development Block Grant (CDBG) - Federal grant funds distributed from the U.S. Department of Housing and Urban Development that are passed through to the Town. The Town primarily uses these funds for housing rehabilitation, public improvements and local social programs. Comprehensive Annual Financial Report (CAFR) - The official financial report of the Town. It includes an audit opinion as well as basic financial statements and supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions. Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contingent Liabilities - Items which may become liabilities of the Town but are undetermined at a given date, such as pending lawsuits, unsettled disputed claims, unfilled purchase orders and uncompleted contracts. Contract Services - Services provided to the Town from the private sector or other public agencies. Debt Service - Payment of the principal and interest on an obligation resulting from the issuance of bonds, notes, or Certificates of Participation (COPs). Debt Service Fund - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Deficit - The excess of liabilities over assets. Department - A major organizational unit of the Town, which has been assigned overall management responsibility for an operation, or a group of related operations within a functional area. In Los Gatos, Department Heads are the chief administrators within a department. PROPOSED G - 10  GLOSSARY  Encumbrances - Commitments against an approved budget for unperformed (executory) contracts for goods or services. They cease to be encumbrances when the obligations are paid or otherwise terminated. Enterprise Funds - Established to account for the financing of self-supporting activities of governmental units, which render services on a user charge basis to the general public. Equipment Replacement Fund - This fund is used to account for the replacement of existing fixed assets as equipment, machinery or building improvements become unserviceable or obsolete. Expenditure - The outflow of funds paid or to be paid for an asset obtained or goods and services obtained. Note: An encumbrance is not expenditure; an encumbrance reserves funds to be expended. (See encumbrances.) Fiduciary Funds - Used to account for assets held by the Town acting in a fiduciary capacity for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances and other governing regulations. There are two categories of fiduciary funds: Trust and Agency. Fiscal Year - A 12-month period to which the annual operating budget applies and at the end of which the Town determines its financial position and results of its operations. The Town’s fiscal year runs from July 1st to June 30th. Fixed Assets - Non-consumable assets of long-term nature such as land, buildings, machinery, furniture, and the other equipment. The Town has defined such assets as those with an expected life in excess of one year and value in excess of $10,000. Franchise Fees - Imposed on utility companies for the privilege of doing business in the Town. Fees are usually based upon a percentage of gross revenue derived from business conducted in the Town. Full-time Equivalents (FTE) - The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year. Full-time employees are paid for 2,080 hours in a year equating 1.0 FTE. Correspondingly, a part-time employee who worked 1,040 hours would equate to 0.5 FTE. Fund - An independent fiscal and accounting entity with a self-balancing set of accounts in which cities record financial transactions relating to revenues, expenditures, assets and liabilities. Each fund type typically has a unique funding source and purpose. Establishing funds enables the town to account for the use of restricted revenue sources and carry on specific activities or pursue specific objectives. Fund Accounting - System used by non-profit organizations, particularly governments. Since there is no profit motive, accountability is measured instead of profitability. The main purpose is stewardship of financial resources received and expended in compliance with legal requirements. Fund Balance - Also known as financial position, fund balance is the excess of current assets over current liabilities, and represents the cumulative effect of revenues and other financing sources over expenditure and other financing uses. GAAP (Generally Accepted Accounting Principles) - Uniform minimum standards for financial accounting and reporting. They govern the form and content of the basic financial statements of the Town. PROPOSED G - 11  GLOSSARY  Gann Appropriation Limit - This is the common name of Proposition 4, approved by voters on November 6, 1979 which mandated an appropriation limit on the amount of tax revenues that government jurisdictions may appropriate within a fiscal year. This bill was named after Paul Gann, who was a co- sponsor of the famous Proposition 13 initiative enacted by the voters of California on June 6, 1978 which resulted in a cap on property tax rates in the state, and a prominent author and advocate of this subsequent spending limitation bill. Gas Tax Fund - The Gas Tax Fund is used to account for revenues and expenditures apportioned under the Streets and Highways Code of the State of California. Expenditures may be made for any street related purpose in the Town’s system of streets. General Fund - In governmental accounting, fund used to account for all assets and liabilities of a non- profit entity, except those particularly assigned for other purposes in another more specialized fund. It is the primary operating fund of the Town. General Government - Town Council, Town Manager, Town Clerk’s Office, Town Attorney, Town Treasurer, Personnel, Finance, Planning, Police, Parks and Public Works, and Library. General Liability Self Insurance Fund - The General Liability Self Insurance Fund is used to provide the Town with liability and property insurance. Coverage is provided through the Town’s participation in a joint powers agreement through (ABAG) Associations of Bay Area Governments. General Obligation Bond - A municipal bond backed by the credit and "taxing power" of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. No assets are used as collateral. Government Finance Officers Association (GFOA) - GFOA is the professional association of state/provincial and local finance officers in the United States and Canada, and has served the public finance profession since 1906. Approximately 16,000 GFOA members are dedicated to the sound management of government financial resources. Governmental Funds - the fund used to account for all assets and liabilities of a government agency, except those particularly assigned for other purposes in another more specialized fund. There are five different types of governmental funds: the general fund (which is the primary operating fund), special revenue funds, debt service funds, capital project funds, and permanent funds. Grant - External contributions, and/or gifts of cash, or other assets typically from another governmental entity to be used or expended for a specific purpose, activity, or facility. An example is Community Development Block grant funding from the Federal Government. Housing Fund (RDA) - Fund is used to account for the 20% set aside property tax increment revenues and the associated expenditures to be used for increasing or improving low and moderate-income housing. Infrastructure - The basic facilities, services, and installations needed for the functioning of a community or society, such as streets and roads, sidewalks, bridges, communications systems, water and power lines, and public institutions including schools, police stations, libraries, and post offices. Interest Income - The prudent investment of idle funds. The types of investments that can be made are limited by the Government Code to protect the safety of taxpayers' money. PROPOSED G - 12  GLOSSARY  Intergovernmental Revenue - Revenue received from other governmental agencies and municipalities, such as grants from the State or Federal government. Internal Services Fund - The Internal Service Funds are used to finance and account for special activities and services performed by a designated Town department for other departments on a cost reimbursement basis. Inter-Fund Transfers - When the Town moves money between its various funds, it makes an inter-fund transfer, referred to as transfers-in and transfers-out. In aggregate, transfers in and out offset each other for the fiscal year. Landscape and Lighting Fund - The Town has formed six landscape and lighting district funds established by written consent of the property owners owning all of the property within the boundaries of the district. Levy - To impose taxes, special assessments or service charges for the support of governmental activities. The total amount of taxes, special assessments or service charges imposed by Santa Clara County levying property taxes. Licenses and Permits - Revenues earned by the issuance of licenses or permits levied in accordance with the benefits conferred by the license or permit. Limited Obligation Bond - A bond sold by a municipality to finance projects which are secured by the revenue generated by those projects. Line-Item Budget - A budget that lists detailed expenditure categories (salaries & benefits, office supplies, travel, dues, rents, etc.) separately, along with the amount budgeted for each specified category. The Summary Budget reflects the program rather than line item budgets. The Detail Budget reflects the line-item detail. Major Fund – Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds for the same item The General Fund is always a major fund. The Town may also select other funds it believes should be presented as major funds. Management Information Services Fund - The Management Information Services Fund is used to account for the costs associated with the Town’s centralized computer system and to distribute these costs to departments using the system on a pro rata basis. Included are costs for hardware and software maintenance and development, computer training and staff support. Modified Accrual Basis - Under this accounting method, revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures for the most part are recognized when the related fund liability is incurred except for prepayments, accumulated employee leave and long-term debt. All governmental funds and expendable trust funds are accounted for using the modified accrual basis of accounting. Motor Vehicle in Lieu Fee - A State fee charged for the privilege of operating a vehicle on public streets. A VLF is levied annually against the market value of a motor vehicle and is imposed by the State “in lieu” of local property taxes. PROPOSED G - 13  GLOSSARY  Non-Departmental - This program has the sole purpose of accounting for all expenditures that the Town cannot specifically designate to any operating department within the General Fund. Non-major Fund – Non-major funds are all governmental and enterprises funds that are not classified as major funds. Objective - A statement of specific direction, purpose, or intent based on the needs of the community and the goals established for a specific program or service level. Ordinance - A formal legislative enactment by the Town Council. It has the full force and effect of law within Town boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal standing than a Resolution and is typically codified in a Town's municipal code. Operating Budget - The operating budget is the primary means by which most of the financing of acquisition, spending and service delivery activities of a government are controlled. The use of annual operating budgets is required by law. Other Revenues - Revenues from sources other than those specifically identified that are too immaterial in amount to justify the creation of new revenue account line items Performance Measure - Sets forth a performance objective and a goal for achieving the objective. Personnel Benefits - Those benefits paid by the Town as conditions of employment. Personnel - Town employees. Present Value - The amount that a future sum of money is worth today given a specified rate of return. Proposition 218 - A statewide initiative passed by the voters of California on November 5, 1996. The initiative provided voters with the right to vote on new taxes. Program - As subdivisions of departments, programs are budgetary or organizational units of government with limited sets of work responsibilities within their respective departments. Programs also serve to increase budgetary accountability. Los Gatos' budget is compiled on a program basis. Property Tax - Imposed on real property (land and permanently attached improvements). The tax is based upon the assessed value of such property. The tax rate may not exceed 1% of assessed value. Proprietary Funds - Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. Public Employees’ Retirement System (PERS) - Provided for the Town's employees, by the State of California. RDA - Redevelopment Agency, while a component unit, the Agency is a legal entity separate from the Town. Redevelopment Agency Fund - Fund is used to account for the proceeds of notes, advances and other forms of indebtedness, and the expenditure of these funds for improvement, reconstruction and redevelopment projects within the specified boundaries of the Town of Los Gatos Redevelopment Agency. PROPOSED G - 14  GLOSSARY  Reserve - An account used to indicate that a portion of fund equity is legally restricted for a specific purpose. Resolution - A special order of the Town Council which has a lower legal standing than an ordinance. Resources - Total amounts available for appropriation including estimated revenues, inter-fund transfers, and beginning fund balances. Revenue - Sources of income, which the Town receives during a fiscal year. Examples of revenue include taxes, intergovernmental grants, charges for services, resources forward from the prior year, operating transfers for other funds, and other financing sources such as the proceeds derived from the sales of fixed assets. Road Impact Fees - Pursuant to Article III of Chapter 15 of the Town Code, the Town collects road impact fees in order to finance road construction and maintenance projects throughout the Town. Article IX of Chapter 15 authorizes the establishment of special fund accounts known as Road Impact #1, Road Impact #2, and Road Impact #3, into which all such fees are deposited. Because the road systems generally follow drainage patterns, the existing drainage basin map boundaries are used to track and expend funds for road construction and maintenance. The amount of each fee collected is based on an estimate of the weight of the loads to be hauled to or from the project and the weight of heavy vehicles to be used in connection with the project. The fee is collected for: Building Permits, Grading and Landscape Permits, Improvement Contracts, and Encroachment permits. Money collected from such fees is to be used solely for design, construction, and repair of town streets and installation of sidewalk curb cut ramps when the level of work as triggers such a requirement provided by the Americans with Disabilities Act, within the prescribed area. Projects will be brought forward on an as needed basis. Sales Tax - 1% is returned to the Town by the State Board of Equalization on a monthly direct deposit basis. Self-Insurance Fund - The Self-Insurance Fund (General Liability) is used to finance and account for the Town’s general liability self-insurance program. Special Assessment Bonds - Bonds payable from the proceeds of special assessment. Special Revenue Fund - In governmental accounting, fund used to account for the proceeds of special revenue sources (other than special assessments, expandable trusts, or for major capital projects) that are legally restricted to expenditure for specified purpose. Service Charge - Charges for specific services rendered. Services and Supplies - Expenditures for services and supplies which are directly related to a department's primary service activities. Sewer Service Charge - Sanitary Sewer Taxes are collected by the West Valley Sanitation District to maintain the Sanitary Sewer Collection System in District's Service Area. The Parks, Forestry and Maintenance Department provide sanitary Sewer collection maintenance within the Town limits. These operating costs are reimbursed to the Town from Sanitary Sewer fees. Successor Agency to the Town of Los Gatos RDA – Effective February 1, 2012, all redevelopment agencies in the State of California were dissolved pursuant to AB 1X 26. Following the provisions of the Dissolution Act, the Town Council of the Town of Los Gatos adopted a resolution accepting for the Town role of Successor Agency to the Redevelopment Agency of the Town of Los Gatos. PROPOSED G - 15  GLOSSARY  Supplies - An expenditure classification for articles and commodities purchased for consumption or resale. Taxes - Compulsory charges levied by the Town, County and State for the purpose of financing services performed for the common benefit. Town Code - A book that contains the Town Council approved ordinances currently in effect. The code defines Town policy with respect to areas such as planning, etc. Transient Occupancy Tax - Imposed on hotels, motels, inns or other lodging facilities. The rate in Los Gatos is 10%. Transfers In/Out - Money transferred from one Town fund to another. Differs from revenues and expenses - see definition of these terms. Workers’ Compensation Fund - The Worker’s Compensation Fund accounts for the cost to provide worker’s compensation insurance coverage to all Town employees in compliance with State of California requirements. PROPOSED G - 16 LIST OF ACRONYMS Following is a list of acronyms common to local government terminology: AB Assembly Bill ABAG Association of Bay Area Governments ADA Americans with Disabilities Act AFIS Automated Fingerprint Identification System AFSCME American Federation of State, County, and Municipal Employees Union ARS Automated Reporting System BMP Below Market Price (Housing) CAFR Comprehensive Annual Financial Report CDBG Community Development Block Grant CEQA California Environmental Quality Act CERT Community Emergency Response Team CLEEP California Law Enforcement Equipment Program CIP Capital Improvement Program COP Certificates of Participation COPS Community Oriented Policing Services CPUC California Public Utilities Commission CSMFO California Society of Municipal Finance Officers CSO Community Services Officer CY Current Year DARE Drug Awareness Resistance Education DART Disaster Aid Response Team DOJ Department of Justice DUI Driving Under the Influence EOC Emergency Operations Center ERAF Educational Revenue Augmentation Fund FEMA Federal Emergency Management Agency FTE Full-Time Equivalent (2080 annual work hours) FY Fiscal Year GAAP Generally Accepted Accounting Principles GASB Governmental Accounting Standards Board GFAR General Fund Appropriated Reserve GFOA Government Finance Officers Association GIS Geographical Information System GO General Obligation (Bond) HCD Housing and Community Development PROPOSED G - 17  ACRONYMS  HHW Household Hazardous Waste HUD Housing & Urban Development HVAC Heating / Ventilation & Air Conditioning IT Information Technology JPA Joint Powers Authority LAIF Local Agency Investment Fund LAWCX Local Agency Workers Compensation Excess (JPA) LLD Landscaping & Lighting District LT Long-Term (as in Long-Term Notes Receivable) MIS Management Information Systems MOU Memorandum of Understanding MVLF Motor Vehicle in Lieu Fee (see also VLF) NPDES National Pollutant Discharge Elimination System OCJP Office of Criminal Justice Planning OES Office of Emergency Services PCI Pavement Condition Index PERS Public Employees’ Retirement System POA Police Officers Association POST Peace Officers Standard Training PPW Parks & Public Works Department PSAP Public Safety Answering Point PY Prior Year RATTF Regional Auto Theft Task Force RDA Redevelopment Agency SB SA Senate Bill Successor Agency SCC Santa Clara County SCCET Santa Clara County Enforcement Team SLESF Supplemental Law Enforcement Services Fund Grant SWAT Special Weapons and Tactics TDA Transportation Development Act TEA Town Employees Association TFCA Transportation Fund for Clean Air TOT Transient Occupancy Tax VLF Motor Vehicles In Lieu Fee (see also MVLF) VIP Volunteers in Policing VTA Valley Transportation Agency WVSD West Valley Sanitation District PROPOSED G - 18 INDEX Acronyms .................................................................................................................................................... G – 17 Administrative Services Department Overview .......................................................................................... D – 19 Annual Budget Resolution .......................................................................................................................... A – 34 Budget Award .............................................................................................................................................. A – 10 Budget Calendar .......................................................................................................................................... A – 29 Budget Message ......................................................................................................................................... A – 1 Budget Process Overview ............................................................................................................................ A – 27 Capital Improvement Program General Fund Appropriated Reserve Fund (GFAR) ............................................................................. E – 7 Traffic Mitigation Fund ......................................................................................................................... E – 13 Grants and Awards Project Fund .......................................................................................................... E – 17 Storm Drain Funds ................................................................................................................................ E – 21 Utility Underground Fund ..................................................................................................................... E – 27 Gas Tax Fund ........................................................................................................................................ E – 31 Clerk Administration .................................................................................................................................. D – 49 Community Development Department ....................................................................................................... D – 73 Core Goals and Strategic Priorities ............................................................................................................ A – 11 Department / Program List .......................................................................................................................... D – 1 Equipment Replacement Fund..................................................................................................................... D – 203 Facilities Maintenance Program .................................................................................................................. D – 211 Fee Related Project List ............................................................................................................................... C – 35 Finance & Administrative Services ............................................................................................................. D – 41 Financial Policies ........................................................................................................................................ A – 17 Financial Summaries ................................................................................................................................... C – 1 Total Revenues and Expenditures ........................................................................................................... C – 4 General Fund Revenues and Expenditures ............................................................................................. C – 17 Operating Transfers ............................................................................................................................... C – 25 Fund Balance ......................................................................................................................................... C – 24 Departmental Budget Revenues & Expenditures .................................................................................... C – 30 Staffing.................................................................................................................................................... C – 37 Fund Descriptions ........................................................................................................................................ A – 13 Gann Appropriation Limit ........................................................................................................................... A – 31 Gann Appropriation Limit Resolution ........................................................................................................ A – 33 Glossary ....................................................................................................................................................... G – 7 History and Culture of Los Gatos ................................................................................................................ B – 1 Human Resources ........................................................................................................................................ D – 35 PROPOSED G - 19 INDEX Index ............................................................................................................................................................ G – 18 In-Kind Donations ....................................................................................................................................... C– 34 Investment Policy ........................................................................................................................................ A – 21 Liability Self-Insurance Fund ...................................................................................................................... D – 15 Library Department ..................................................................................................................................... D – 235 Library Trust Fund ...................................................................................................................................... D – 263 List of Funds ................................................................................................................................................ G – 1 List of Programs .......................................................................................................................................... G – 2 Long-Term Debt Policies ............................................................................................................................ A – 20 Management Information Systems .............................................................................................................. D – 61 Non-Departmental Budget ........................................................................................................................... D – 55 Non-Point Source Program .......................................................................................................................... D – 215 Office Stores Fund ....................................................................................................................................... D – 71 Organizational Structure Chart .................................................................................................................... B – 15 Parks & Public Works Department ............................................................................................................. D – 161 Police Department ...................................................................................................................................... D – 107 Special Assessment Districts Blackwell Drive Assessment District ...................................................................................................... D – 223 Kennedy Meadows Assessment District .................................................................................................. D – 225 Gemini Court Assessment District .......................................................................................................... D – 227 Santa Rosa Heights Assessment District ................................................................................................ D – 229 Vasona Heights Assessment District ...................................................................................................... D – 231 Hillbrook Drive Assessment District ...................................................................................................... D – 233 Successor Agency to the Los Gatos RDA Debt Administration Fund 2002 COP Debt Schedule ......................................................................................................................... F – 8 2010 COP Debt Schedule ......................................................................................................................... F – 10 Computation of Legal Debt Margin ......................................................................................................... F – 11 Successor Agency to the Los Gatos Redevelopment Agency Overview ...................................................... F – 1 Town Commissions, Committees, and Advisory Boards ............................................................................ B – 16 Town Management Team List ..................................................................................................................... B – 14 Town Offices Town Council Administration ................................................................................................................. D – 7 Town Attorney Administration ................................................................................................................ D – 11 Town Demographics ................................................................................................................................... B – 8 Town Economic Statistics ........................................................................................................................... B – 12 Vehicle Maintenance Program .................................................................................................................... D – 207 Workers’ Compensation Fund ..................................................................................................................... D – 67 PROPOSED G - 20