Desk Item
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL REPORT
MEETING DATE: 02/20/18
ITEM NO: 9
DESK ITEM
DATE: FEBRUARY 20, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: FISCAL YEAR 2017/18 MID-YEAR BUDGET PERFORMANCE AND STATUS
REPORT – SIX MONTHS ENDING DECEMBER 31, 2017
REMARKS:
After distribution to the Town Council, staff noticed that the staff report should have projected
Fiscal Year 2017/18 year-end balance of $0.4 million on pages 2, 5, and 6. The five year forecast
on page 5 of the original report should be replaced with the updated five year forecast on the
next page.
In addition, staff received a public comment (Attachment 2) inquiring about differences in
presentation of actuals for FY 2016/17 Comprehensive Annual Financial Report (CAFR) versus
the Town’s financial summary mid-year budget report. The differences are due to the fact that
each report has a unique purpose, different requirements, and basis of presentation. While
differences exist, there is no effect or difference on year-end results as both the audited CAFR
and mid-year financial summaries reflect $4,203,521 in total increase to General Fund final fund
balances reported for the fiscal year ending June 30, 2017.
PAGE 2 OF 2
SUBJECT: FISCAL YEAR 2017/18 MID-YEAR BUDGET PERFORMANCE AND STATUS
REPORT – SIX MONTHS ENDING DECEMBER 31, 2017
DATE: FEBRUARY 20, 2018
S:\COUNCIL REPORTS\2018\02-20-18\09 Mid-Year\Desk Item FINAL.doc
Account Revenue Category
2017/18
Adjusted
2017/18
Forecast
2018/19
Forecast
2019/20
Forecast
2020/21
Forecast
2021/22
Forecast
2022/23
Forecast
4100 Property Tax 11.4$ 11.9$ 12.3$ 12.6$ 13.0$ 13.4$ 13.8$
4110 VLF Backfill Property Tax 3.3 3.4 3.5 3.5 3.6 3.6 3.6
4200 Sales & Use Tax 8.0 7.7 7.7 7.8 8.0 8.2 8.4
4250 Franchise Fees 2.3 2.3 2.4 2.5 2.5 2.6 2.7
4251 Transient Occupancy Tax 2.1 2.3 2.3 2.3 2.3 2.3 2.4
4400 Business License Tax 1.6 1.7 1.7 1.7 1.7 1.7 1.7
4400 Licenses & Permits 2.9 2.9 3.0 3.1 3.2 3.3 3.4
4500 Intergovernmental 0.7 0.7 0.7 0.7 0.7 0.7 0.7
4600 Charge for Services 2.5 2.6 2.6 2.6 2.7 2.8 2.9
4700 Fines & Forfeitures 0.7 0.7 0.7 0.7 0.8 0.8 0.8
4800 Interest 0.3 0.3 0.3 0.3 0.3 0.3 0.3
4850 Other Sources 3.0 2.9 2.8 2.8 2.9 2.9 2.9
4900 Fund Transfers In 0.6 0.6 0.6 0.6 0.6 0.6 0.6
TOTAL REVENUES 39.4$ 40.0$ 40.6$ 41.2$ 42.3$ 43.2$ 44.2$
Use of Reserves Capital Reserve 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Use of CalPERS/OPEB Reserve
Use of Budget Strategy/Almond Grove Reserve 3.1 3.1
42.9$ 43.5$ 41.0$ 41.6$ 42.7$ 43.6$ 44.6$
Account Expenditure Category
2017/18
Adjusted
2017/18
Forecast
2018/19
Forecast
2019/20
Forecast
2020/21
Forecast
2021/22
Forecast
2022/23
Forecast
5110 Salary 16.6$ 16.5$ 16.3$ 16.4$ 16.5$ 16.6$ 16.6$
5200 Benefits 8.9 9.0 9.7 10.4 10.9 11.4 11.7
6000 Operating Expenditures 6.1 6.3 6.1 6.1 6.3 6.5 6.7
7200 Grants & Awards 0.2 0.2 0.2 0.2 0.2 0.2 0.2
7400 Utilities 0.5 0.5 0.6 0.6 0.6 0.6 0.6
8060 Internal Service Charges 4.0 4.0 4.1 4.2 4.3 4.5 4.6
8900 Debt Service 1.9 1.9 1.9 1.9 1.9 1.9 1.9
TOTAL EXPENDITURES 38.2$ 38.4$ 38.9$ 39.8$ 40.7$ 41.7$ 42.3$
9900 Capital Transfers Out to GFAR 2.5 2.5 0.4 0.4 0.4 0.4 0.4
9900
Budget Strategy Reserve to Internal Service
Funds 0.6 0.6
9900 GASB 45 Retiree Medical Actuarial 1.6 1.6 1.6 1.6 1.7 1.7 1.8
TOTAL BUDGETED EXPENDITURES 42.9$ 43.1$ 40.9$ 41.8$ 42.8$ 43.8$ 44.5$
42.9$ 43.1$ 40.9$ 41.8$ 42.8$ 43.8$ 44.5$
NET REVENUES LESS EXPENDITURES -$ 0.4$ 0.1$ (0.2)$ (0.1)$ (0.2)$ 0.1$
Town of Los Gatos General Fund
TOTAL REVENUES & TRANSFERS
TOTAL EXPENDITURES & ALLOCATIONS
Attachment (Previously received with Staff Report):
1. Budget Performance Report for the six months ending December 31, 2017
Attachment received with this Desk Item:
2. Public Comment