TOWN OF LOS GATOS SPECIAL MEETING OF THE TOWN … · Los Gatos Town Library, located at 100 Villa...
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Page 1 TOWN OF LOS GATOS SPECIAL MEETING OF THE TOWN COUNCIL - STUDY SESSION FEBRUARY 21, 2017 110 EAST MAIN STREET LOS GATOS, CA PARTICIPATION IN THE PUBLIC PROCESS The Town of Los Gatos strongly encourages your acve parcipaon in the public process, which is the cornerstone of democracy. If you wish to speak to an item on the agenda, please complete a “speaker’s card” located on the back of the chamber benches and return it to the Clerk Administrator. If you wish to speak to an item NOT on the agenda, you may do so during the “verbal communicaons” period. The me allocated to speakers may change to beer facilitate the Town Council meeng The purpose of the Town Council meeng is to conduct the business of the community in an effecve and efficient manner. For the benefit of the community, the Town of Los Gatos asks that you follow the Town’s meeng guidelines while aending Town Council meengs and treat everyone with respect and dignity. This is done by following meeng guidelines set forth in State law and in the Town Code. Disrupve conduct is not tolerated, including but not limited to: addressing the Town Council without first being recognized; interrupng speakers, Town Council or Town staff; connuing to speak aſter the alloed me has expired; failing to relinquish the podium when directed to do so; and repeously addressing the same subject. Deadlines for Public Comment and Presentaons are as follows: Persons wishing to make an audio/visual presentaon on any agenda item must submit the presentaon electronically, either in person or via email, to the Clerk’s Office no later than 3:00 p.m. on the day of the Council meeng. Persons wishing to submit wrien comments to be included in the materials provided to Town Council must provide the comments as follows: o For inclusion in the regular packet: by 11:00 a.m. the Thursday before the Council meeng o For inclusion in any Addendum: by 11:00 a.m. the Monday before the Council meeng o For inclusion in any Desk Item: by 11:00 a.m. on the day of the Council Meeng Marico Sayoc, Mayor Rob Rennie, Vice Mayor Marcia Jensen, Council Member Steven Leonardis, Council Member Barbara Spector, Council Member Town Council Meengs Broadcast Live on KCAT, Channel 15 (on Comcast) on the 1st and 3rd Tuesdays at 7:00 p.m. Rebroadcast of Town Council Meengs on the 2 nd and 4 th Mondays at 7:00 p.m. Live & Archived Council Meengs can be viewed by going to: www.losgatosca.gov/Councilvideos IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT THE CLERK DEPARTMENT AT (408) 354-6834. NOTIFICATION 48 HOURS BEFORE THE MEETING WILL ENABLE THE TOWN TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING [28 CFR §35.102-35.104] 1
Transcript of TOWN OF LOS GATOS SPECIAL MEETING OF THE TOWN … · Los Gatos Town Library, located at 100 Villa...
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TOWN OF LOS GATOSSPECIAL MEETING OF THE TOWN COUNCIL - STUDY SESSION
FEBRUARY 21, 2017110 EAST MAIN STREET
LOS GATOS, CA
PARTICIPATION IN THE PUBLIC PROCESS
The Town of Los Gatos strongly encourages your active participation in the public process, which isthe cornerstone of democracy. If you wish to speak to an item on the agenda, please complete a“speaker’s card” located on the back of the chamber benches and return it to the Clerk Administrator. If you wish to speak to an item NOT on the agenda, you may do so during the “verbalcommunications” period. The time allocated to speakers may change to better facilitate the TownCouncil meeting
The purpose of the Town Council meeting is to conduct the business of the community in an effectiveand efficient manner. For the benefit of the community, the Town of Los Gatos asks that you followthe Town’s meeting guidelines while attending Town Council meetings and treat everyone withrespect and dignity. This is done by following meeting guidelines set forth in State law and in theTown Code. Disruptive conduct is not tolerated, including but not limited to: addressing the TownCouncil without first being recognized; interrupting speakers, Town Council or Town staff; continuingto speak after the allotted time has expired; failing to relinquish the podium when directed to do so;and repetitiously addressing the same subject.
Deadlines for Public Comment and Presentations are as follows: Persons wishing to make an audio/visual presentation on any agenda item must submit the
presentation electronically, either in person or via email, to the Clerk’s Office no later than 3:00p.m. on the day of the Council meeting.
Persons wishing to submit written comments to be included in the materials provided to TownCouncil must provide the comments as follows:o For inclusion in the regular packet: by 11:00 a.m. the Thursday before the Council meetingo For inclusion in any Addendum: by 11:00 a.m. the Monday before the Council meetingo For inclusion in any Desk Item: by 11:00 a.m. on the day of the Council Meeting
Marico Sayoc, MayorRob Rennie, Vice Mayor
Marcia Jensen, Council MemberSteven Leonardis, Council MemberBarbara Spector, Council Member
Town Council Meetings Broadcast Live on KCAT, Channel 15 (on Comcast) on the 1st and 3rd Tuesdays at 7:00 p.m.Rebroadcast of Town Council Meetings on the 2nd and 4th Mondays at 7:00 p.m.
Live & Archived Council Meetings can be viewed by going to:www.losgatosca.gov/Councilvideos
IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING,PLEASE CONTACT THE CLERK DEPARTMENT AT (408) 354-6834. NOTIFICATION 48 HOURS BEFORE THE MEETING WILL ENABLE THE
TOWN TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING [28 CFR §35.102-35.104]
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TOWN OF LOS GATOSSPECIAL MEETING OF THE TOWN COUNCIL - STUDY SESSION
FEBRUARY 21, 2017
6:00 PM
SPECIAL MEETING CALLED TO ORDER
ROLL CALL
VERBAL COMMUNICATIONS (Members of the public may address the Town Council on anymatter that is not listed on the agenda. Unless additional time is authorized by the Town Council,remarks shall be limited to three minutes.)
STUDY SESSION
Building the Town's Budget: Budget Principles and Financial Update Staff ReportBudget Presentation
ADOURNMENT
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Writings related to an item on the Town Council meeting agenda distributed to members of theCouncil within 72 hours of the meeting are available for public inspection at the front desk of theLos Gatos Town Library, located at 100 Villa Avenue, and are also available for review on theofficial Town of Los Gatos website. Copies of desk items distributed to members of the Council atthe meeting are available for review in the Town Council Chambers
Note: The Town of Los Gatos has adopted the provisions of Code of Civil Procedure §1094.6;litigation challenging a decision of the Town Council must be brought within 90 days after the
decision is announced unless a shorter time is required by State or Federal law.
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PREPARED BY: STEPHEN CONWAY Finance Director Reviewed by: Town Manager and Town Attorney
TOWN OF LOS GATOS
STUDY SESSION REPORT
MEETING DATE: 02/21/2017
DATE: FEBRUARY 15, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: BUILDING THE TOWN’S BUDGET: BUDGET PRINCIPLES AND FINANCIAL UPDATE
REMARKS: The study session, entitled “Building the Town’s Budget: Budget Principles and Finance Update,” provides an opportunity for the Town Council to ask questions regarding the Town’s budget and financial reports. Staff will make a brief presentation, providing an opportunity for Council questions and discussion, as well as community comments. The staff presentation is based on inquiries received by the public to give the Council similar information that has been provided to the community, including:
What are the Town’s Current Financial Strengths?
Budget Principles and Five Year Forecast
Overview of budget performance over the past ten years
Review of Town Fund Types, Internal Service Funds, and fund balances How is the Town Preparing to Address Future Challenges?
CalPERS Pension Rates/Unfunded Liabilities
Other Post-Employment Benefits
Infrastructure Investments In addition to the FY 2016/17 Mid-Year Budget Update report that is scheduled for the Council’s consideration at the regular meeting, other financial reports are available at the following links: Town of Los Gatos Operating Budget FY 2016/17 Town of Los Gatos Capital Improvement Plan FY 2016/17 through FY 20/21 Town of Los Gatos Comprehensive Annual Financial Report dated June 30, 2016
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Building the Town’s Budget: Budget Principles and Financial Update
February 21, 2017
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Budget Principles Operating and Capital Budgets
Town Operating Budget Principles:
1. Operating Revenues Equal Operating Expenditures
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3. Capital Budgets are Funded by Accumulated FY Savings
2. Balanced Budget (no deficit)
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Budget Process Operating and Capital Budgets
Operating Budget are Developed with Updated Town Five Year Forecasts
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Capital Budgets are Developed by Systematic Allocation of Available General Fund Reserve Dollars (Savings) Over Five Years
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General Fund Results Last 11 Yrs.
Land Purchase University Sports Park $3.1M
Capital Transfers $33.6M
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General Fund Balances Last 11 Yrs.
PERS Reserve $300,000
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What are the Town’s funds?
• General Fund - “All Government Services”
• Special Revenue Fund - “Special Use”
• Debt Service Fund - “Debt Service”
• Capital Project Fund - “Infrastructure”
• Trust and Agency Funds - “Held in custody or trust”
• Internal Service Funds - “Services to Support Government Services”
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INTERNAL SERVICE FUND
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General Liability Workers Compensation Information Technology Facilities Maintenance Equipment Replacement Vehicle Maintenance
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GENERAL FUND PAYS FOR INTERNAL SERVICES
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• In General:
– Revenue for Internal Services
=
– Expenditures for General Fund
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Statement of Net Position
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$112.5M Net Position or “Net Worth” June 30, 2016
<$93.4M of this balance is Capital Assets>
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Net Pension Liability
Net Position
OPEB
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CITIES UNFUNDED PENSION LIABILITY
$-
$10,000,000.00
$20,000,000.00
$30,000,000.00
$40,000,000.00
$50,000,000.00
$60,000,000.00
$70,000,000.00
Gilroy Campbell Los Gatos Morgan Hill Los Altos
$25.5M $21.3M $24.5M
$20.7M $14.9M
$40.5M
$22.7M $16.3M
$14.3M
$11.7M
Total Safety
Total Misc
$58,480,495
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$46,057,051 $41,279,836
$35,709,341
$23,235,515
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CITIES FUNDED PENSION RATIO
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66.0% 68.0% 70.0% 72.0% 74.0% 76.0% 78.0% 80.0%
Los Altos
Campbell
MorganHill
Los Gatos
Gilroy
76.1%
76.9%
75.5%
73.0%
72.9%
77.2%
71.5%
72.9%
78.2%
70.6%
Safety Funded Ratio
Misc Funded RatioN
atio
nal
Ave
rage
– 7
2%
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TOWN’S TOTAL UNFUNDED LIABILITY
Pension Liability – $41,279,836 Other Post Employment Benefits Liability (OPEB) - $12,610,000
Total Unfunded Liability - $53,889,836
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LOS GATOS LEADS IN ADDRESSING OPEB
14 Bartel Associates Database
Los Gatos=48%
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Questions & Answers
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INTERNAL SERVICE FUNDS
$3,133,400 $3,260,531 $3,429,643 $3,675,029
$2,148,005
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Equipment Replacement – Fund Balance
$2,473,345 $2,495,697 $2,661,264 $2,747,342
$2,904,373
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Management Information Systems – Fund Balance
CAFR NP $2.1M
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INTERNAL SERVICE FUNDS – CONT.
$1,595,140 $1,352,035
$1,056,559
$1,535,300 $1,409,360
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
ABAG Self-Insurance – Fund Balance
CAFR NP $1.1M
$2,300,638 $2,246,915
$1,576,698 $1,492,508
$1,217,470
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Worker’s Compensation – Fund Balance
CAFR NP $1.0M
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INTERNAL SERVICE FUNDS – CONT.
$521,709 $601,794
$740,861
$283,740 $417,131
$(200,000)
$(100,000)
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Vehicle Maintenance – Fund Balance
CAFR NP $.08M
$1,020,685
$1,255,709 $1,319,864
$418,929 $425,808
$(400,000)
$(200,000)
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Facilities Maintenance – Fund Balance
CAFR NP -$.1M
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