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2010051712 - Operating and Capital BudgettoWN of MEETING DATE: 05-17-1 10 ~- ITEM NO: ,~,.Y, , cos Gatos COUNCIL/AGENCY AGENDA REPORT DATE: MAY 13, 2010 TO: MAYOR AND TOWN COUNCIL/ CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY /~ FROM: GREG CARSON, TOWN MANAGER/EXECUTIVE DIRECTOR ~1~1i~-- SUBJECT: OPERATING AND CAPITAL BUDGETS ~~ ~/ A. CONSIDER THE TOWN OF LOS GATOS PROPOSED OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2010-2011 B. CONSIDER THE TOWN OF LOS GATOS PROPOSED CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2010-2015 C. RESCIND RESOLUTION 1995-27 AFFIRMING THE ARCI-IITECTURAL STANDARDS/HILLSIDE COMMITTEE RECOMMENDATION: 1. Consider the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year 2010-2011 2. Consider the Town of Los Gatos Proposed Capital Improvement Program for Fiscal Year 2010-20115 3. Adopt resolution rescinding Resolution 1995-27 affirming the Architectural Standards/Hillside Committee BACKGROUND: The Proposed Operating and Capital Budget for FY 2010/11 (Attachment 1 previously submitted) represents the Town Manager's recommended comprehensive financial plan to provide services to the Town of Los Gatos given limited resources. The Proposed FY 2010-2015 Capital Improvement Program (Attachment 2 previously submitted) is a comprehensive five-year capital improvement plan identifying projects to conshuct and maintain the Town's infrastructure. PREPARED BY: PAMELA JACOBS ASSISTANT TOWN MANAGER N:\MGR\PJacobs110-11 Budgct staff reporLdoc Reviewed by: Assistant Town Manager/ eputy Director Town Attorney/General Counsel Clerk Administrator/Secreta ~ Finance Community Development PAGE 2 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 An~ changes to the proposed operating and/or capital budgets directed by Council at the May 17" budget hearing will be incorporated in the implementing documents to be presented for Council approval on June 7, 2010. DISCUSSION: Overview of Proposed Operating and Capital Budgets The transmittal letter in the FY 2010/11 Proposed Operating Budget provides an executive summary of the budget, including budget development principles and strategies, an overview of revenue and expenditure assumptions, and future challenges affecting the Town's fiscal situation. This staff report provides: a sumrnary of budget balancing actions recommended in the proposed budget; discussion of an updated Five-Year Financial Forecast; presentation of issues for consideration in the proposed budget and to be explored during FY 2010/11; a summary of the proposed Capital hnprovement Program; and, information regarding the budget presentation to be made on May 17, 2010 The slow recovery of the unprecedented economic recession continues to impact the Town's revenues, leading to projections of modest growth in the Town's two largest revenue sowces: property taxes and sales taxes. Projections for other revenue sources, including Transient Occupancy Tax, license and permits, and private development fees, are either flat or show declines. These revenue impacts require adjustments in the Town budget totaling $1.8 million, approximately 5.5% of the General Fund Operating budget. Fortunately, the Town's past conservative financial practices and prompt action in response to the economic crisis positioned the Town relatively well to address the budget shortfall projected for FY 2010/11. Unlike some other local jurisdictions, the Town is not requiring layoffs or sigrrificant public service reductions next year. The outlook for the following year and beyond remains guarded, however, as discussed later in this report. Due to continued reductions in staffing levels, the Town will be limited in its capacity to take on new special projects or initiatives. Longer response times for non-priority calls for service and customer referrals are also expected. Health and safety responses will continue to take priority over aesthetic concerns. Limited workforce furloughs and closures will reduce customers' access to service, as well as employees' salaries. Staff will be available at the budget hearing to address any specific questions regarding impacts of departmental reductions. PAGE 3 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 Of persistent concern, however, is the long-term fiscal outlook, largely due to rapidly rising employee pension and medical costs. Even with a continued modest recovery, additional budget and service reductions are anticipated every year for the foreseeable future. These fuhu~e reductions will likely directly impact Town residents, visitors, and businesses in significant ways. The inevitable loss of Netflix sales tax revenue and potential infrastructure failure will only exacerbate these difficulties in the years ahead. Nonetheless, the core assets of Los Gatos remain strong, including an enviable downtown, a beautiful environmental setting, proximity to Silicon Valley, fundamentally strong real estate, and an active and engaged population. Further, the economic crisis has not impacted special one-time projects with separate funding sources, including the new Library, the General Plan Update, new Townwide sports facilities, and significant street projects. These all will contribute to Los Gatos' high quality of life. Recommended Budget Balancing Actions The proposed operating budget incorporates reductions in staffing and other expenses and revenue enhancements totaling approximately $2.0 million, sufficient to cover the $1.8 million necessary to balance the FY 2010/11 budget.. Attachment 3 is a listing of all the recommended budget balancing actions, which include: • the elimination of eight full-time-equivalent positions and other staffmg, salary and benefit reductions for a cost savings of more than $1.1 million; • reductions in operating expenses for a cost savings of approximately $200,000, and; fund transfers, cost recovery fee increases, and other revenue totaling nearly $650,000. While the majority of the budget balancing actions will result in ongoing cost savings and ongoing revenue enhancements, approximately $340,000 of the total savings are one-time or temporary adjustments. One-time savings do not help to correct the structural imbalance between ongoing revenues and expenditures, and thus, do not contribute to a long-term fiscal solution. Five-Year Forecast The Five-Year Financial Plan is an independent financial tool that is based on current and projected costs and revenues. It is designed to be fluid in natm~e, allowing staff to build various funding scenarios and test "what if' assumptions. Staff has updated the forecast last prepared in February, 2010 to incorporate the FY 2010/11 proposed budget changes. The information presented in the forecast on page 5 includes conservative estimates of revenues, based on generally flat growth for FY 2010/11 with low growth of 0 to 3% for most major revenue categories in FY's 2011/12 through 2014/15. The forecast continues to set aside half of Netflix revenues for reserves and future capital and one-time projects. However, we no longer show an elimination of Netflix revenues during the next five years due to a recent lease renewal, pending approval of potential expansion opportunities. PAGE 4 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 The expenditure forecast includes reductions made in the FY 2010/11 proposed budget and carries these forward in future years. The five-year forecast assumes no employee COLA increases or furlough savings, with the exception of FY 10/11 and FY 2011/12, which include scheduled 2% and 4% salary increases for sworn police employees. Beginning in FY 2011/12, the Financial Plan reflects significant increases in PERS employer contribution rates (rising from 14% to 19 % of "miscellaneous" covered payroll and from 34% to 39% for "public safety") to fund substantial investment losses sustained in FY 2008/09. The Financial Plan reviewed by Council in early 2010 reflected a projected deficit of approximately $1.8 million for FY 2010/11. The proposed FY 2010/11 budget now projects a balanced budget, eliminating the projected deficit due to staffing and salary reductions and revenue enhancements. A deficit of approximately $1.6 million was projected for FY 2011/12, but is now anticipated to be $1.3 million as a result of action taken during the FY 2010/11 budget development process. Balancing the FY 2011/12 budget will likely include layoffs and service reductions unless a dramatic economic turnaround occurs and/or there are significant reductions in ongoing retirement and benefit costs. The forecast continues to reflect ongoing challenges in the future with deficits projected to reach a combined total of nearly $3 million in FY 2014/15. The forecast also includes no provision for a dedicated source of funding for ongoing infrastructure needs. This means that the Town can expect not only service level challenges for the future, but also infrastructure challenges, barring a robust recovery in the local economy. PAGES MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 Town of Los Gatos General Fund Updated Five-Year Financial Plan ($ millions) FYI FY2 FY3 FY4 FYS 2009110 " 2010(11 30(1112 2012/13 2013114 V 2014115 Revenue Category ~.~_ _- -- Estimated Budget Foreefls[ Forecast Forecast _. ::Forecast Property Taz $ 7.2 $ 7.3 $ 7.4 $ 7.4 $ 7.5 $ 7.6 VLF Backfill Property Tax 2.3 2.4 2.4 2.4 2.4 2.5 Sales & Use Tax 8.4 8.4 8.4 8.5 8.6 S.7 Franchise Fees 1.7 1.9 2.0 2.0 2.0 2.0 Transient Occupancy Tax 1.0 1.0 1.0 1.0 1.0 1.0 Business License Tax LI 1.1 1.1 LI L1 1.1 Licenses & Permits 1.8 2.1 2.1 2.1 2.1 2.1 Intergovernmental 0.7 0.7 0.7 0.7 0.7 0.7 Charge far Services 2.4 2.3 2.2 2.2 2.2 2.2 Fines&Porfcitures 0.6 0.6 0.7 0.7 0.7 0.7 !merest 1.3 1.2 1.2 1.2 1.2 1.2 Other Sources 2.1 3.8 3.8 3.8 3.9 3.9 TOTAL REVENUES $ 30.6 $ 32.8 $ 32.8 $ 33.1 $ 33.4 $ 33.8 Adopted Use of Reserves 1.0 1.0 0.6 0.6 0.6 0.4 Fund Transfers in 0.3 0.4 0.3 0.3 0.3 0.3 'TOTAL REVENUES&TRANSFERS '. $ 31.9 $ 34.2 $ 33.8 $ 34.1 $ 34.4 $ 34.1 - .2009/10 =2010/11 201]112 2012/13 2013!14 + 1014/15 Expenditure Catcgoq• !; Estmlated Budget $drecas[ Forecast Forecast -Forecast Salary $ 13.0 $ 13.1 $ 13.3 $ 13.3 $ 13.3 $ 13.3 Temporary Employees 0.5 0.6 0.5 0.5 0.5 D.5 Overtime 0.5 0.5 0..5 0.5 0.5 D.5 Other Salap~ 0.3 0.1 0.3 0.3 0.3 0.3 Benefits 5.3 5.6 6.0 G.1 G.2 6.3 Supplies, Materials, & Services 5.0 5.5 .5.5 5.8 6.0 6.2 Grants & Awards 0.3 0.2 0.2 0.2 0.2 0.2 Utilities 0.3 0.4 0.4 0.4 0.5 0.5 internal Service Charges 3.2 3.1 3Z 3.G 3.7 3.8 Debt Service 0.9 2.2 2.2 2.2 2.2 2.0 TOTAL EXPENDITURES $ 29.3 $ 31.3 $ 32.1 $ 32.9 $ 33.3 $ 33.5 GASB 45 Retiree Medical Acmmial 0.6 0.8 1.1 1.4 1.6 1.7 Capital'fransfers rotund GFAR O.S 0.9 0.6 0.6 0.6 0.4 Capital and Future Projects Reserve 0.5 0.6 0.6 0.7 0.8 - 0.8 Transfer to GF Reserves 0.5 0.6 0.6 0.7 0.8 O.S T41`AL EXPENDITURES&T1tANSFER9 $ 31.7 $ 34.2 $ 35.1 $ 3fi.3 $ 3Zl $ 37.3 BEVENUES LESSEXYENDiTURE5 $ 0.2 $ 0.0 $ (1.3) $ (2.3) $ (2.7) $ (3.2) ONGOING SHORTFALL MIT1GATlON (0:0) 1.3 0.9 1.8 NETAEYENUES LToSS EXPEY])ITPRi];SE $ 0.2 $ 0.0 (1.3) $ . (0.9) $ (1.8) $ (1.8) PAGE 6 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 Issues for Consideration Following are a number of issues addressed in or raised by the proposed budget. They are highlighted here because they maybe of special interest to Council. Management and Non-Management Salarv Actions The FY 2010/11 proposed operating budget does not include a cost of living increase for employees, with the exception of sworn police personnel inthe POA bargaining group. The POA is scheduled to receive a 2% salary increase effective July 1, 2010 and 4% the following year. FY 2010/11 will be the third year in a row with no cost of living increase for management staff, while the bargaining groups each received minimal increases the past two years. The long term management pay freeze is leading to compaction with hourly employees. One of the temporary adjustments proposed in the FY 2010/11 budget is a reduction of $175,000 in staff costs (1 % of payroll) achieved tlu~ough three days of workforce fuloughs in FY 2010/11. The unpaid furloughs for most employees would occur in connection with national holidays, and non-essential Town services (with the exception of the library) would be closed on the furlough days: Jtdy 2, September 3, and November 11. All staff, including management, would be subject to the furloughs and the loss of pay. For certain operations (i.e., police patrol, dispatch, library and parks), an equivalent reduction in pay will be achieved tlu~ough individually- scheduled unpaid furlough hours. In the case of POA, an alternative approach to achieving a 1 reduction could be considered. If needed to address revenue shortfalls at mid-year, up to an additional three days of furloughs maybe scheduled for the second half of the year. One-Time Use of Reserves In addition to the budget balancing actions noted above, staff is recommending that Council consider authorizing the use of reserves in the amount of $357,000 for the following one-time funding requests. These expenditures would be used to continue established Council initiatives and to evaluate Town wide and department specific organizational change opportunities to balance the budget in fuhire years. Library Consolidation ($30,000) - An analysis of the potential consolidation of library services with the County of Santa Clara. • New Library Transition ($40,000) -Professional librarian support as needed for new library preparations as well as a $7,500 matching grant to the Friends of the Library for engagement ofthe retired Library Director for community ouheach and support. Benefits Restructm~ing ($40,000) -Actuarial, financial and legal analysis required to restructure employee and retiree benefits to reduce or eliminate rapidly rising costs. Police Services Consolidation ($30,000) - An analysis of potential police service consolidafion opporhrnities, including but not limited to: dispatch, records management and property evidence, PAGE 7 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 • Police Alternative Work Schedule Study ($30,000) -Consideration of a 12-hour police schedule to minimize overtime, future staffing needs, and other related costs. ^ Police Overtime ($72,000) - A special one-time allocation pending identification and implementation of other ongoing police staffing cost savings. • Space Reuse Plan/Implementation ($75,000) -Funding to plan for and undertake space reconfiguration for the existing library space and associated downstairs space. ^ Emergency Preparedness ($40,000) -The continuation of an initiative to empower the community to be self-sufficient in the event of a disaster or flu pandemic. Support ofNon-Profits and ht-Kind Donations The Town's proposed operating budget includes continued support of local non-profits and community events through nearly $140,000 in direct grant funds. The Town also provides in-kind donations through subsidized leases to tlu~ee agencies: A Place for Teens, the Los Gatos Museum Association and Los Gatos-Saratoga Community Education and Recreation (LGS Recreation) at the following annual amounts (based on $2.50 per sq. ft. less any direct rent paid by the organization): The Venue/A Place for Teens LGS Recreation Headquarters Tait & Forbes Mill Museums 3,260 sq ft $ 97,799 6,479 sq ft $178,725 5,160 sq ft $151,799 In addition to the above, beginning in January 2010, Los Gatos Saratoga Recreation (LGS) entered into a lease with the Town for the Neighborhood Center, renamed the Adult Recreation Center (ARC). In exchange for providing and expanding senior services, the facility is leased to LGS at below market rate. The net estimated value of this in-kind donation is $270,000. Staff is cuilently negotiating a lease extension with LGS for their headquarters facility at 123 Main St. Staff has prepared an amendment to the lease agreement with the Los Gatos Museum Association (LGMA), extending the contract one year to end June 30, 2011 with the same terms. Dining next fiscal year, staff will negotiate a new lease agreement with LGMA representatives. It is anticipated that a new lease agreement will be presented to the LGMA Board and Council for approval in Spring 2011. Regarding A Place for Teens (APFT), $40,000 remains from the $88,000 grant provided to the organization last year. The agreement stipulates that the $40,000 as a matching grant for other funds raised by APFT. Depending on the success of the Venue-a-thon scheduled for May 15t~', staff, APFT and LGS may re-evaluate the use of the grant. In addition, over the next fiscal year, staff, APFT and LGS will consider options reguding the organization and the lease of the facility, which is set to expire in March 2012. PAGE8 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 Staff is currently working with KCAT to modify the existing contract between the Town and KCAT for services. The purpose of these modifications is to establish a protocol for disbursement of P.E.G. funds directly to KCAT while finding ways to reduce Town costs. Annually, the Town has issued a $31,000 grant to KCAT and paid $40,000 for cable casting services. Through the proposed five-year contract, the Town will appropriate all of the P.E.G funds that have been collected by the Town up to June 30, 2010 to KCAT with the exception of $22,000 to be retained by the Town. KCAT will continue to receive PEG funding from the Town on a quarterly basis thereafter with the exception of the Town retaining 15% of those funds over the next two years of P.E.G. payments, or until a P.E.G. reserve fund of $50,000 is created for the Town. From that point onwards 100% of P.E.G. funds will be paid to KCAT. Overall, the Town will reduce its current contribution to KCAT by $51,000 in a phased plan over the life of the contract beginning with reducing the annual grant by one-half in 2010/2011. The grant will phase out entirely in fiscal year 2011/2012 and over the remaining tlu~ee years of the contract, costs to the Town for cable casting services will be incrementally reduced fi~om $40,000 to $20,000. Staff will bring the proposed contract forward for Council consideration in June. One grant request not included in the proposed budget is from TeenSource, a start-up teen jobs program being launched in Los Gatos. John Hogan, CEO of TeenSource has requested $25,000 in start-up funding from Los Gatos, and has asked staff to take his request forward to the Council. While the concept has merit, staff is not recommending finding at this time. As Council is aware, the Town has a defined process for non-profits to apply for the Town's limited community grants. In addition, the Town does not typically fund start-up organizations. Staff has advised Mr. Hogan that he is welcome to apply for a community grant in the next cycle if his program can demonstrate a customer base and results. Staff has assisted Mr. Hogan with identifying office space and in suggesting other organizations with whom he may be able to partner. Priorities The proposed budget includes the identification of key projects in each department for FY 2010/1 ]. These projects are in addition to the core services provided by the department to the community on an ongoing basis. The key projects include the "Strategic Goals" for 2010-2012 identified by Council (Attachment 4). Given the large number of special projects on the departmental work plans, it will be necessary to reprioritize projects should new initiatives, projects, or analyses be requested during the course of next year. A significant impact of reduced staffing over the past five years and proposed for next fiscal year is decreased management capacity. The Town's management staff has traditionally served roles as both managers leaders and "doers," having responsibility to do substantial amounts of direct staff work. With fewer employees, management staff often must absorb more direct staff work as well as manage department or division services and prof ects. As a result, the capacity to respond to unanticipated service requests or take on new projects is limited. PAGE 9 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 Ongoing responsibilities are also affected by the limitations on staff capacity. One of these responsibilities is the management of board and commission meetings. These meetings require staff resources to prepare for and support the meetings. Actions were taken last year to reduce some of the regularly-scheduled board and commission meetings to address this capacity issue. For next year, staff is recommending that the Council dissolve the Architectural Standards/Hillside Committee, which has not been active. This would reduce the effort associated with recnriting for the committee and maintaining the roster. The Hillside Committee was created in the 1980's to review the rezoning of all hillside properties. Subsequently, the Architectural Standards Committee was created to review Town architectural design policies. Due to work priorities and limited staff, hillside policy became a low priority and the Hillside Committee was first put into abeyance in early 1996 and then merged with the Architectural Standards Committee in late 1996. The Architectural Standards/Hillside Conunittee (ASHC) has not met regularly since adoption of the Hillside Development Standards & Guidelines (HDS&G) in January 2004. The Committee last met on January 20, 2005 to consider amendments to the HDS&G. Review of subsequent draft documents such as the Commercial and Residential Design Guidelines has been done by the General Plan Committee. Staff recommends that the ASHC be eliminated as it has served its purpose and has not been an active committee for more than five years (Attachment 5). Revenue Enhancements The proposed budget includes increases in or new fees and charges to recover costs for private development and other user fee supported services, which Council approved in April, 2010. Also included in the budget is approximately $525,000 in revenue expected to be generated from funding transfers, scheduling modifications in the parking citations program, an increase in the Solid Waste Franchise Fee, and the long-term lease with Los Gatos Recreation. The Police tow franchise fee proposed last year is not included at this time but could generate up to $20,000 in ongoing revenue and improved service management, whether pursued solely by Los Gatos or jointly with Campbell. Donation Opportunities - FY 2010/11 List of Town Needs As part of the budget development process, the Donation and Solicitation Policy List of Town Needs is updated to reflect goods, services, and other contributions that would help enhance Town services, programs, and events. The attached FY 2010/11 list (Attachment 6) has been updated to include contributions that support efforts to market and promote the Town and its businesses. PAGE 10 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 State Budget Impacts The May Revised Governor's budget is expected to be released on May 14`h. Staff will continue to monitor state actions to identify any potential impacts to the Town's budget. If the revised budget includes additional takes from local government, and the League's ballot measure slated for the November election passes, those takes would be reversed. FY 2010-2015 Capital Improvement Program The FY 2010-2015 Capital hmprovement Program will also be presented at the May 17`x' Town Council meeting. The five-year plan sets forth the schedule for street-related, parks and public facility projects to be completed during this period. Only the first year of the plan is formally adopted with funds appropriated by the Town Council as part of the budget process. The CIP transmittal letter includes a summary of the significant projects recommended for FY 2010/11. Of those significant projects, staff would like to highlight the following: Street Program Projects: • Blossom Hill Road improvement design far the widening of the roadway and construction of sidewalks and bicycle laces. • Wedgewood Avenue street improvement design, including a storm drain system, sidewalks, and bicycle lanes. • Highway 9/CTniversity Avenue traffic system improvement design, including dedicated left turn lanes, and sidewalk and ADA improvements. Public Facilities Projects: • Approximately $16 million of funds allocated for the final construction of the new Library project. • Planning, design and construction of improvements for the new Los Gatos Creelcside Sports Park. Approximately 43% of the proposed FY 2010-15 CIP funding is allocated to street reconstruction and maintenance projects. This level of funding reflects the Town Council's priority to address street maintenance needs. The goal is for Town streets to be at an average Pavement Condition Index (PCI) of 75 (100 being the highest rating possible). The Tovm's cumulative investment in its streets has resulted in raising the PCI from a low of 64 in 2002 to the level of 75 in 2006. The current value of PCI as of Spring 2010 is 69. While the overall PCI for Town streets has been rated at 69, the ratings for each category of street are as follows: • Arterials street -PCI 85 • Collector streets -PCI 70 • Residential streets -PCI 64 PAGE 11 MAYORAND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 The decline in PCI from 75 to its current value of 69 confirms that a significantly higher investment is required to maintain the PCI at a level of 75. While sufficient fording is anticipated to restore the Town's PCI to 70 or above in the short term, new funding will be required to maintain that level in the later years of the CIP. The Town received some positive news following preparation of the proposed CIP that the Town's application for Proposition 1B funds was approved by the State. The Town submitted a plan to request $437,175 to supplement the Curb, Gutter and Sidewalk Program, which is intended to improve the safety and appearance of neighborhood srieets .and sidewalks. Construction for this project is projected to begin in July 2010 and end in August/September 2010. This funding will be incorporated in the final CIP presented to Council on June 7`h. The challenge of finding a reliable ongoing revenue stream available for capital projects continues to be a Town priority. Recognizing the realties of funding challenges and uncertain local economic trends, the Town's Proposed FY 2010/11-2014/15 Capital Improvement Program continues a shategy of funding the Town's most urgent capital needs using prior fund balance allocations. Budget Presentation At the May 18, 2009 Town Council meeting, the Council will consider the proposed Operating and Capital Improvement Program budgets. The review and discussion of the proposed budgets will occur following the format outlined below: • 'Opening Comments • Operating Budget Overview Operating Budget Highlights Capital Budget Overview Public Comment Council direction Town Manager Finance Director Assistant Finance/Budget Director Parks & Public Works Director Public Town Council Departmental staff will be available to respond to specific Council questions. Any changes to the proposed operating and/or capital budget directed by Council and/or identified by staff as a "clean-up" item will be included for Council consideration in the resolution formally adopting the budget to be considered by Council on June 7, 2010. ENVIRONMENTAL ASSESSMENT: Is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: The fiscal impact is presented in summary form in the Financial Srunmaries chapter of the Proposed Operating and Capital Budget for FY 2010/11. PAGE 12 MAYOR AND TOWN COUNCIL/CHAIR & MEMBERS OF THE RDA SUBJECT: OPERATING AND CAPITAL BUDGETS FOR FY 2009/10 MAY 13, 2010 Attachments: 1. FY 2010/11 Proposed Operating and Capital Budget (Previously Submitted) 2. FY 2010 - 2015 Proposed Capital Improvement Program Budget (Previously Submitted) 3. Budget Balancing Recommendations 4. FY 2010 - 2012 Core Values and Strategic Goals 5. Resolution 1995-27 affirming Architectural Standards/Hillside Committee (recommended to be rescinded by Council action) 6. FY 2010/11 List of Town Needs Summary of FY 2010/11 Budget Adjustments .- CDD . *North Forty Project Specific Plan Funding ~ $110,000 CSD Solid Waste Franchise Fee (approved by JPA) $100,000 PD Parking Citation Revenue (based on current year actuals) ~ $125,000 PPW Private Development Arborist Fees $25,000 PPW Capital Projects Funding $100,000 Town-wide Increased Fees for services (from fee study) $100,000 Town-wide Neighborhood Center Lease with Los Gatos Recreation Department $87,000 .- CDD .50 Engineering Inspector (share w/PPW) ($62,500) CDD CDD Reorganization/Eliminate Deputy Town Manager ($84,200) CSD Eliminate Senior Coordinator, Secretary II and add Temporary Hours ($207,000) LIB Library Reorganization/Elimination of Assistant Director Position ($180,000) PD Eliminate Vacant Police O~cer ($184,000) PD Add .50 Dispatcher with Overtime Reduction $50,000 PD Eliminate Police Off cer Hire Ahead 40 000 PPW .50 Engineering Inspector (share w/CDD) ($62,500) PPW Department Reorganization/Eliminate vehicle maintance worker ($178,515) Town-wide *Furloughs (3 days planned through 2010) ($175,000) Siiltotal - ~- Admin _ ~~ Financial Services __ _ (~1,iZ3,715~ . ($15,000) Admin *Special Studies/Recruitment ($55,000) Admin Travel and Training ($8,200) Admin HR Reductions ($20,000) CSD - Materials-Furniture/Equipment ($9,000) PD Training and Supplies ($14,000) PPW Street Lights/Signals-LEDS/Timers ($40,000) PPW Engineering Consultant Services - ($22,500) PPW - Maintenance, Supplies, Utilities, Janitorial Services - - ($15,000) - . ($14;700) * Reflects Temporary Budget Adjustments, Transfers, andlor Reductions totalling $340,000 C:\DOCUMI:-1~PSACOB-1.LOSVLOCALS-1\TemplXPgrpwise~Pinal PY 2010-11 Budget Adjnstments.xls ATT`~CHMENT 3 0 w rt O Vl n tQ aC} mnmi yo ~~ ooa o'~~ 30 '°000 om~a _ °m~~ ~ ~m ~ - ~~m'w ,mm ~m C N ~.W j N N N chi ] _ d a y ~ I y SD ~ O - ~ O N to A'3. m p~~ N O ' ' W 3' Q ~ ° 2 y y ! ], a ~ m ] ^ n'3 a N tp _ ~o. ~ ~ m -p a ~ ~. N. ~ m ° m ~. r d j Q .y 3 ~ ~ a ~, r! ~' 0<; ~ y W a ~. T j i m C ~ d : . 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V f°+ Q RESOLUTION 1995-27 RESOLUTION OF THE TOWN OF LOS GATOS AFFIRMING ARCHITECTURAL STANDARDS/IiILLSIDE COMMITTEE OF THE PLANNING COMMISSION AND ADDING A LICENSED ARCHITECT AS A MEMBER WITH ALTERNATE WHEREAS, the Town Planning Commission has created and appointed an Architectural Standards Subcommittee consisting of three (3) serving Planning Commissioners to review and recommend policies and procedures related to architectural design issues in the Town, and WHEREAS, the Town Council determined that appointment of a licensed architect to the Architectural Standards Subcommittee and an alternate licensed architect who could serve in case of the primary member's absence would enhance the Subcommittee's abilities and proceedings, NOW, THEREFORE, BE IT RESOLVED: 1. The creation and appointment of the Architectural Standards Subcommittee by the Planning Commission consisting of three (3) serving Planning Commissioners is affirmed, with the addition of a subcommittee position held by a licensed architect. In addition, appointment of an alternate licensed architect is affirmed to serve in case of absence of the primary member. 2. The licensed architect and the alternate shall be appointed by the Council. It shall not be necessary that the licensed architect or the alternate be residents of the Town at the time of the appointment or thereafter. However, each appointee shall demonstrate to the Council's satisfaction that each is familiar with the planning policies and procedures of the Town and understand the goals of the Town General Plan. -The term of the licensed architect and alternate on the Subcotmittee shall be for a period of two years, and each may be appointed for additional tenns as the Council may determine. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 21st day of February, 1995 by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Linda Lubeck, Mayor Patrick O'Laughlin NAYS: None ABSENT: None ABSTAIN: None SIGNED:/s/Patrick O'Laughlin MAYOR OF THE TOWN OF LOS GATOS ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS ATTACHMENT 5 TOWN OF LOS GATOS DONATION OPPORTUNITIES FY 2010111 LIST OF TOWN NEEDS To ensure that all donations and contributions are sought and accepted in an ethical manner, the Council established a Donation and Solicitation Policy. A list of Town needs was developed to identify goods, services, and other contributions to enhance Town services, programs, and events. The recommended needs for FY 2010/11 are: PUBLIC SAFETY • Volunteer Program Materials and Equipment • Specialized Public Safety Equipment and Supplies, including Support for Canine Program • Training Support for Public Safety Staff and Volunteers Equipment for New Police Operations Headquarters • Community Outreach Program Supplies LIBRARY SERVICES Children, Youth, and Adult Program Materials, Supplies and Services Library Book and Audio/Visual Collections - Funding to Support Technological Enhancements - Equipment and Services to Support Historical Preservation Efforts - Funding to Support Public art for the New Library COMMUNITY EVENTS - Supplies, Materials, and Services for Special Community and Volunteer Events and Activities TOWN PARKS AND FACILITIES - Beautification Materials and Services for Town Parks, Open Space, and Infrastructure • Contributions that Support Recreation or Expansion of Athletic Fields SUSTAINABILITY • Contributions that would help minimize impacts on local, regional, and global ecosystems through conservation, reduced pollution, increased efficiency, efficiency, and protection of wildlife, vegetation, and other ecosystems. ECONOMIC VITALITY - Supplies, materials and services to support Town and business marketing and promotional events, activities and collateral. ATTACHMENT 6