Study Session PresentationMONEY MATTERS & MORE
The Town's Budget: Past, Present and Prospective
n Serves as a Financial Plan and Guide
Reflects the Council Priorities and Strategic
Goals
m Establishes Funding Levels for Town Services
GF Operating Provide Services
Budget - $34.5M Public Safety
• Parks & Public Works
• Community Development
• Library
• Administrative Services
GF Debt Service - Fund Infrastructure
$1.9M Improvements, i.e. Library
& Downtown
Improvements
Capital Budget - • Build and Maintain Public
$15.41VI Facilities
• Infrastructure
Improvements
• Sales /Property Tax
• Licenses & Permit Fees
• Franchise Fees
• Business License
• Transient Occupancy Tax
• Interest Income
• GF Revenue
• GF Reserves
• Gas Tax
• State and Federal Grants
• Traffic Impact Fees
• Construction Activity Impact
Mitigation Fees
The budget is made up of several types of "funds"
or "check books" for different types of revenue and
expenditures:
• General Fund
• Special Revenue Fund
• Debt Service Fund
• Capital Project Fund
• Internal Service Funds
• Trust and Agency Funds
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
GENERAL FUND REVENUES BY TYPE
2007/08 2008/09 2009/10 2010/11 2012/13 2013/14 2014/15
Actual Actual Actual Actual Actual Actual Budgeted
• Fines & Forfeitures
• Intergovernmental
• Other
• Transient Occupancy Tax
• Franchise Fees
• Interest
• Charges for Services
• Licenses & Permits
• Property Tax( Including MVL Fee)
• Sales & Use Tax
M
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
GENERAL FUND EXPENDITURES BY CATEGORY
■ -
_., _ - -- _-- -- -. -- _ - _ _ __ - . __ , -_
Actual Actual Actual Actual Actual Actual Actual Budgeted
Internal Service Charges
• Debt Service
• Grants & Awards
• Fixed Assets
Operating Expenditures
Salary & Benefits
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$
$(5,000,000)
GENERAL FUND EXPENDITURES BY DEPARTMENT
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-- - 4S2lS/d
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2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
Actual Actual Actual Actual Actual Actual Actual Budgeted
■TREASURER
■TOWN COUNCIL
■TOWN ATTORNEY
• COMMUNITY SERVICES
• LIBRARY
• ADMINISTRATIVE SERVICES
■ COMMUNITY DEVELOPMENT
■ PARKS AND PUBLIC WORKS
m NON - DEPARTMENTAL
- POLICE
0
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
INTERNAL SERVICE FUNDS
Equipment Replacement — Fund Balance
6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015
57.75 oz
6/30/2011
Management Information Systems — Fund Balance
52.473.345 $2,495,697 $2,661_264
6/30/2012
6/30/2013
6/30/2014
N
b
O
O
523,778
6/30/2015 9
INTERNAL SERVICE FUNDS — CONT.
ABAG Self- Insurance — Fund Balance
$2,500,000
$2,066,068
$2,000,000
$1)595,140
$1,500,000 $11352,035
$1,000,000
$500,000 -1
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
6/30/2011
6/30/2012
6/30/2013
$1,056,559
6/30/2014
Worker's Compensation — Fund Balance
-$2,300,638 $2,2-46 945
$1,576,698
o�
0
oo,
0
$799,651
6/30/2015
6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015 10
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
Fi
INTERNAL SERVICE FUNDS - CONT.
Facilities Maintenance — Fund Balance
A+ - - - -.,.,. C1 21Q QFn _.
6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015
Vehicle Maintenance — Fund Balance
- $7
6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015
Questions &Answers
lkR
CITIES UNFUNDED PENSION LIABILITY
$60,000,000.00
$50,000,000.00
$40,000,000.00
$30,000,000.00
$20,000,000.00
$10, 000,000.00
Gilroy
$46,057,051
.- $41,279,836
$35,709,341
C
Campbell Los Gatos Morgan Hill
$23,235,515
. —
Los Altos
Total Safety
Total Misc
Gilroy
Los Gatos
Morgan
Hill
Campbell
Los Altos
64.0%
CITIES FUNDED PENSION RATIO
70.3%
71.4%
71.8%
72.2%
70.7%
73.4%
oa
M
74.9%
Q 76.0%
0 77.3%
66.0% 68.0% 70.0% 72.0% 74.0% 76.0% 78.0% 80.0% 82.0%
Safety Funded Ratio
Misc Funded Ratio
Pension Liability —
Other Post Employment
Benefits Liability (OPEB) -
Total Unfunded liability -
$411279,836
$13,530,792
$54,810,628
Purchase Price: $1,400,000
Down Payment: $280,000
Original Loan: $1,120,000
Mortgage Term: 30 Years
Interest Rate: 3.78%
Years Remaining on Mortgage: 27
Unfunded Liability: $2,008,022
Home Budget
Income — Expenses = $ Available for
Future Savings
Rainy Day
College
Home Improvements
Retirement
GF Budget
On -Going Expenditures
Revenue — Expenditures = $ Available
in Fund Balance
(Reserve)
One -Time Expenditures
Capital Funding
Economic Downturns
Unexpected Expenditures
One -time Expenditures
Questions &Answers
n
WORKLOAD ANALYSIS & COST SAVINGS STRATEGIES
1:111
160.00
140.00
120.00
100.00
1 11
.1 11
[[11111:
20.00
1 11
TOWN OF LOS GATOS FTE STAFFING TRENDS
2005/06 2006/07 2007/08 2008/09 2009/10 2010111 2011/12 2012/13 2013/14 2014/15
■ Temporary Hours
• Permanent Positions
20
WON
16.00
14.00
12.00
10.00
W
[mile]
HI
2.00
M
LIBRARY STAFFING COMPARED TO ANNUAL CIRCULATION AND DOOR COUNT
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
750000
650000
550000
`Temporary Employees
450000 —ow Permanent Employees
�DoorCount
Annual Circulation
350000
250000
150000
POLICE STAFFING COMPARED TO CALLS FOR SERVICE
70.00
63.25 FTE
40.00
30.00
20.00
24401
10.00
59
W.
36247
AP 36000
0.91 FTE 34000
24000
22000
0.00 I F 20000
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
32000
30000
Temporary Employees
� Permanent Non -Sworn
28000
� Permanent Sworn
y =Los Gatos Calls for Service
s?Rt
26000
24000
22000
0.00 I F 20000
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
CDD STAFFING COMPARED TO BUILDING & PLANNING PERMIT REVENUE
GENERATED
25.00
20.00
15.00 $ 1,4281073
Lu.
10.00 ~ —
tl
O
$751,625
$1,985,125 2,150,000
N71,950,000
1,750,000
1,550,000
W
Temporary Employees
LL
1,350,000 � permanent Employees
N
lf1
rt.Building Permits
O
1,150,000 .,Rmplanning Permits
N
oo 950,000
r+ $782,905
5.00 - — — 750,000
$401,845 550,000
$476,969
0.00 - — - -- 350,000
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
1:1 11
2.50
2.00
1.50
1.00
0.50
FACILITIES STAFFING COMPARED TO SQUARE FOOTAGE OF FACILITIES
MAINTAINED
2008/09 2009/10 2010111 2011/12 2012/13 2013/14 2014/15
165,000
155,000
145,000
135,000
125,000
Facilities Staffing
115,000
memSquare footage of
7ownwide properties
maintained
105,000
95,000
85,000
75,000
• Side -Fund Payoff — approximately $700,000 annually
• Furloughs
— 2009/10 — 40 hours (3 bargaining groups)
— 2010/11— 24 hours (all)
— 2011/12 — 40 hours (all non - sworn)
— 2012/13 — 40 hours — Rescinded
— POA deferred increases in lieu
• Vacancies through Attrition (reduced staffing by 11 permanent
positons)
• Salary Freezes
— Mgmt — 7 year salary freeze
— Non -Sworn —5 year salary freeze
• Organizational Restructures
• Retiree Health Cost Containment— negotiated
with labor unions to save approximately
$300,000 annually
• Implemented three -tier non -sworn and two-
tiered sworn pension plans
• Extended Equipment Life —All Departments
• Parks reservations available on -line 24/7
• Laptops for Field Inspectors to limit return trips to Town Hall
• Electronic paystubs issued vs. printed stubs
• Town Code available on -line
• Building Permit applications available on -line
• Crime statistics & mapping on -line
• Wads for staff & council with paperless agenda packets
• Police in -car video upgrades
• Fiber optic internet connections — 20x faster internet
• Laserfiche document management, scanning and automatic
filing
• Website redesign
• Automated license plate reading and ticketing system for
parking control
• Further Benefit Cost Containment
• Explore New Revenue Opportunities
• Revenue Measures
• Business License Amnesty Program /Audit
• Promote /encourage Economic Vitality and local brick and
mortar shopping
Public /Private Collaborations
• Grant Utilization
• Strategic Outsourcing /Insourcing
Questions &Answers
1710
• No standard of comparison — leaves a sense of
mystery
• How well is PPW performing?
• How efficient is the police department?
• Is our Library doing a good job?
• Public organizations lack a single standard of
achievement — public entities lack the profit
measure
AVERAGE GF EXPENDITURES BY DEPARTMENT FOR 31
CALIFORNIA CITIES
COMMUNITY CITY COUNCIL
DEVELOPMENT �1 /� OTHER
5% 9%
rTvl]Tklffkqn- mom 1191A
11%
PUBLIC WORKS
12%
FIRE
PARKS & 14%
RECREATION
6%
1001410:
42%
GENERAL FUND BUDGET ALLOCATIONS BY DEPARTMENT
42%
Police 46%
mm"i6mmilim
41.1%
PPW
CDD
Administrative Services
Library
Town Attorney
Town Council
& Community Services
Fire
_1
�.-- -- 12.2%
218%
16.9%
17.5%
4.7%
13.1%
11.8%
11.5
10.6%
8.6%
13.8%
11.9°/1
6.8%
717
1.4%
0.8%
1.0%
1
0.9%
0.7%
0.6%
6.0%
15.6%
12.1%
13.9%
13.4%
16.6
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
■ 31 Cities Average
. Saratoga
a Los Altos
■ Morgan Hill
a Campbell
■ Los Gatos
32
GENERAL FUND BUDGET ALLOCATIONS BY DEPARTMENT - NEUTRAL BASE
Police
25.6%
18.0%
PoVd
- - - 17.5%
11.4%
Cl 18.5%
11.8%
11.4%
Administrative
Services - 10.8%
8.6%
14.8%
12.7%
Library
8.6%
6.8
Town Attorney 1.9%
0.8%
1.0%
Town Council ,� 1.0%
0.6%
0.0% 10.0% 20.0% 30.0%
41.1%
49.1%
48.3%
45.7%
40.0% 50.0% 60.0%
• Saratoga
• Los Altos
• Morgan Hill
• Campbell
• Los Gatos
33
Questions &Answers
fA
How is our Budget Developed?
• Increased Revenues
— Property Tax Revenue
— TOT Revenue
— Albright Settlement Money
— Pass Through Revenues
• Limited Expenditure Adds
— $100,000 one -time expenditures (unfunded mandates)
— Utility increases
— Contract increases
— Membership increases
— Uniforms
— Employee training
• Minimal Increased Salaries & Expenditures
— Salary increases per contract negotiations
— Increased workers compensation rates
— Eliminated one -time funded positions in FY 14/15
— One position add — Project Manager
1. The budget is a representation of the Council and
community's strategic goals and priorities.
2. The General Fund is essentially the Town's main checking
account.
3. Reserves are the GF fund balance, or money deposited into
the Town's savings account.
4. Over the last ten years staffing has been reduced by 11
permanent positons.
5. With the corresponding reduction in staffing, workload
measures indicate an overall increase in services provided.
6. Benchmarking cities is challenging given the various needs
and goals of each individual community.
Questions &Answers
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