MONEY 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 Budget - $ 34. 5M Provide Services Public Safety Parks & Public Works Community Development Library Administrative Services Sales / Property Tax Licenses & Permit Fees Franchise Fees Business License Transient Occupancy Tax Interest Income GF Debt Service - Fund Infrastructure 1. 9M Improvements, i. e. Library Downtown GF Revenue Improvements Capital Budget - Build and Maintain Public 15. 41VI Facilities Infrastructure Improvements 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
GENERAL FUND REVENUES BY TYPE 40, 000,000 35, 000,000 30,000, 000 Fines & Forfeitures 25, 000,000 Intergovernmental Other 20, 000,000 Transient Occupancy Tax Franchise Fees Interest 15, 000,000 Charges for Services Licenses & Permits Property Tax( Including MVL Fee) 10, 000,000 Sales & Use Tax 5, 000,000 2007/ 08 2008/ 09 2009/ 10 2010/ 11 2012/ 13 2013/ 14 2014/ 15 Actual Actual Actual Actual Actual Actual Budgeted M
GENERAL FUND EXPENDITURES BY CATEGORY 40,000,000 35, 000, 000 30, 000,000 25, 000,000 20, 000,000 15, 000,000 10,000,000 Internal Service Charges Debt Service Grants & Awards Fixed Assets Operating Expenditures Salary & Benefits 5, 000, 000 Actual Actual Actual Actual Actual Actual Actual Budgeted
GENERAL FUND EXPENDITURES BY DEPARTMENT 50, 000,000 45, 000,000 40,000,000 35,000, 000 30, 000,000 aafa A OlP CS r J I 4S2lS/ d w4 V Sj TREASURER TOWN COUNCIL TOWN ATTORNEY 25, 000,000 a COMMUNITY SERVICES LIBRARY ADMINISTRATIVE SERVICES 20,000, 000 COMMUNITY DEVELOPMENT PARKS AND PUBLIC WORKS 15, 000, 000 m NON - DEPARTMENTAL POLICE 10, 000,000 5,000,000 2007/08 2008/ 09 2009/ 10 2010/ 11 2011/ 12 2012/ 13 2013/ 14 2014/ 15 Actual Actual Actual Actual Actual Actual Actual Budgeted 5, 000,000) 0
INTERNAL SERVICE FUNDS Equipment Replacement Fund Balance 4, 000,000 3, 500,000 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 6/ 30/ 2014 6/ 30/ 2015 Management Information Systems Fund Balance 3, 000, 000 2, 500, 000 57. 75 oz 52.473. 345 $ 2, 495, 697 $ 2,661_264 523, 778 2, 000,000 N 1, 500,000 1, 000,000 bo 500, 000 6/ 30/ 2011 6/ 30/ 2012 6/ 30/ 2013 6/ 30/ 2014 6/ 30/ 2015 9
oo, INTERNAL SERVICE FUNDS CONT. ABAG Self- Insurance Fund Balance 0o 2, 500,000 2, 066,068 0 2, 000,000 1) 595, 140 1, 500, 000 $ 11352, 035 1, 000, 000 1, 056, 559 799, 651 500, 000-1 6/ 30/ 2011 6/ 30/ 2012 6/ 30/ 2013 6/ 30/ 2014 6/ 30/ 2015 Worker' s Compensation Fund Balance 3, 000, 000 2, 500,000 2, 300,638 $ 2,2-46 945 2, 000,000 1, 500,000 1, 576, 698 1,000, 000 500, 000 6/ 30/ 2011 6/ 30/ 2012 6/ 30/ 2013 6/ 30/ 2014 6/ 30/ 2015 10
INTERNAL SERVICE FUNDS - CONT. 1, 400,000 Facilities Maintenance Fund Balance A+ - - - -.,.,. C1 21Q QFn _. 1, 200,000 1, 000, 000 800, 000 600, 000 400, 000 200,000 6/ 30/ 2011 6/ 30/ 2012 6/ 30/ 2013 6/ 30/ 2014 6/ 30/ 2015 Vehicle Maintenance Fund Balance 800,000 7 700, 000 600, 000 500, 000 400, 000 300, 000 200,000 100,000 Fi 6/ 30/ 2011 6/ 30/ 2012 6/ 30/ 2013 6/ 30/ 2014 6/ 30/ 2015
Questions & Answers
CITIES UNFUNDED PENSION LIABILITY 60, 000, 000. 00 50, 000, 000. 00 46,057, 051 41,279, 836 40, 000, 000.00 35, 709, 341 30, 000, 000.00 C 23, 235, 515 Total Safety Total Misc 20,000,000.00 10, 000, 000.00 Gilroy Campbell Los Gatos Morgan Hill Los Altos
CITIES FUNDED PENSION RATIO Gilroy 70. 3% 71. 4% Los Gatos 71. 8% 72. 2% Morgan Hill Campbell 70. 7% oa M 73. 4% 74.9% Q 76. 0% Safety Funded Ratio Misc Funded Ratio Los Altos 0 77. 3% 64.0% 66. 0% 68.0% 70. 0% 72. 0% 74.0% 76. 0% 78.0% 80. 0% 82. 0%
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 GF Budget On -Going Expenditures Revenue Expenditures = $ Available in Fund Balance Reserve) Rainy Day College Home Improvements Retirement One -Time Expenditures Capital Funding Economic Downturns Unexpected Expenditures One -time Expenditures
Questions & Answers
n WORKLOAD ANALYSIS & COST SAVINGS STRATEGIES
TOWN OF LOS GATOS FTE STAFFING TRENDS 1: 111 160. 00 140. 00 120. 00 100. 00 Temporary Hours Permanent Positions 1 11 1 11 11111: 20.00 1 11 2005/ 06 2006/ 07 2007/ 08 2008/ 09 2009/ 10 2010111 2011/ 12 2012/ 13 2013/ 14 2014/ 15 20
LIBRARY STAFFING COMPARED TO ANNUAL CIRCULATION AND DOOR COUNT WON 750000 16. 00 650000 14. 00 12. 00 550000 10.00 Temporary Employees 450000 ow Permanent Employees W DoorCount Annual Circulation mile] 350000 HI 250000 2. 00 M 2005/ 06 2006/ 07 2007/ 08 2008/ 09 2009/ 10 2010/ 11 2011/ 12 2012/ 13 2013/ 14 2014/ 15 150000
POLICE STAFFING COMPARED TO CALLS FOR SERVICE 70. 00 W. 63. 25 FTE 36247 AP 36000 0. 91 FTE 34000 32000 40. 00 30000 Temporary Employees 59 Permanent Non -Sworn 30. 00 28000 Permanent Sworn y =Los Gatos Calls for Service s?rt 26000 20. 00 24401 24000 24000 10.00 22000 22000 0. 0. 00 00 I FF 20000 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 1, 985, 125 2, 150,000 20.00 N71,950,000 1, 750,000 15. 00 $ Lu. 10. 00 ~ tl 1, 4281073 O 751, 625 oo r+ $ 782, 905 1, 550,000 W Temporary Employees LL 1, 350,000 permanent Employees N lf1 rt.building Permits O 1, 150,000., N Rmplanning Permits 950, 000 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
FACILITIES STAFFING COMPARED TO SQUARE FOOTAGE OF FACILITIES MAINTAINED 1: 1 11 165, 000 155, 000 2. 50 145, 000 2. 00 135, 000 125,000 Facilities Staffing 1. 50 115, 000 memsquare footage of 7ownwide properties 1. 00 105, 000 maintained 95, 000 0. 50 85, 000 75,000 2008/ 09 2009/ 10 2010111 2011/ 12 2012/ 13 2013/ 14 2014/ 15
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
1710 Questions & Answers
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 DEVELOPMENT 5% CITY COUNCIL 1 / OTHER 9% rtvl]tklffkqn- mom 1191A 11% 1001410: 42% PARKS & RECREATION 6% PUBLIC WORKS 12% FIRE 14%
1 GENERAL FUND BUDGET ALLOCATIONS BY DEPARTMENT Police 46% mm" i6mmilim 41. 1% PPW 12. 2% 16. 9% 218% 42% 4. 7% 17. 5% CDD 13. 1% 11. 8% 11. 5 Administrative Services 10. 6% 8. 6% 31 Cities Average Saratoga Library Town Attorney 717 1. 4% 6. 8% 13. 8% 11. 9 / 1 a Los Altos Morgan Hill a Campbell Los Gatos 0. 8% Town Council 1.0% 10. 9% 0. 7% 0. 6% 6.0% Community Services 12. 1% 15. 6% 13. 9% Fire 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% 32
GENERAL FUND BUDGET ALLOCATIONS BY DEPARTMENT - NEUTRAL BASE 49. 1% Police 41. 1% 45. 7% 48. 3% PoVd 18. 0% 25. 6% 17. 5% 11.4% Cl 18.5% 11.8% Administrative Services - 8. 6% 11.4% 10. 8% Saratoga Los Altos Morgan Hill 14. 8% Campbell Library 8. 6% 12.7% Los Gatos 6. 8 Town Attorney 1. 9% 0. 8% 1. 0% Town Council, 1. 0% 0. 6% 0. 0% 10. 0% 20. 0% 30. 0% 40. 0% 50. 0% 60. 0% 33
fa Questions & Answers
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.
g R' Questions & Answers