Los Gatos City Council
February 18, 2025

ITEM NO. 14.
8 ATTACHMENT 1
Franchise Fees
Franchise fees are collected by the Town for the privilege of operating a utility service within Los Gatos, and as a fee in lieu of a business license tax. Franchise fees are currently received from Comcast for cable television, PG&E for gas and electric services, and AT&T and Comcast for video services. Franchise fees represent 1.1% of projected General Fund revenues in FY 2024-25.

Historically, franchise payments are not remitted equally throughout the fiscal year; therefore, second quarter receipts are not necessarily predictive of future receipts. Total franchise fee revenues are trending higher than those of the second quarter in FY 2024-25.

The Town has a seat on the Board of the West Valley Solid Waste Management Authority (WVSWMA), a Joint Powers Authority (JPA) that manages the solid waste contracts. The JPA recently conducted a Franchise Fee Valuation Study. Based on the study, the new agreement reclassified the Franchise Fee Payment to Encroachment Permit since the collection vehicles utilize Town streets with the FY 2024-25 Adopted Budget. While collections are estimated to stay at prior year levels, the revenue shifted from Franchise Fees to Licenses and Permits.

Comcast franchise fees trending lower than budgeted since streaming services are gaining popularity compared to broadcasting services. Staff is recommending a $28,000 budget decrease in this category.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
2nd Quarter Actual Revenues $ 807,833 $ 968,181 $ 1,044,055 $ 1,079,717 $ 113,842 Fiscal Year Total Actual Revenues $ 2,499,463 $ 2,822,515 $ 3,074,624 $ 2,547,011 Fiscal Year Total Estimated Revenues $ 1,013,330
Fiscal Year Budgeted Revenues $ 2,532,289 $ 2,514,020 $ 2,716,470 $ 3,308,703 $ 1,041,330 2nd Quarter Revenue Percent of Total 32% 34% 34% 42% 11% Recommended Budget Revision $ (28,000)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Franchise Fees - Quarterly and Annual Revenues
5-Year History
2nd Quarter Actual Revenues Fiscal Year Total Actual Revenues Fiscal Year Budgeted Revenues Fiscal Year Total Estimated Revenues

ITEM NO. 14.
9 ATTACHMENT 1
Business License Tax
The Town requires all businesses located within Los Gatos and/or those that operate within Los Gatos to obtain a business license. The amount of business license tax paid by each business is based on its business activity. In November 2022, Los Gatos voters approved Measure J, which modernized the Town’s business license tax program. This was the first update to the program since 1991, strengthening funding for core Town services that are enjoyed by Town businesses. Measure J included a 30% increase on flat rate fees, a 40% increase in retailing gross receipts, and a 120% increase in e-commerce, manufacturing, wholesaling, and jobbing gross receipts. Fees for activities such as wholesale sales and manufacturing are charged on a sliding scale based on gross receipts, as is retail, with retail being capped at $1,365. These gross receipt activities account for approximately 25% of annual business licenses, while the remaining 75% are flat fee businesses. Annual renewal payments are due on January 2 of each year. Payments for new flat-fee-based businesses are prorated by quarter.

The Town is partnering with HdL Companies (HdL) to provide dedicated business license support to Los Gatos businesses. The Town’s business license application and renewal process is now streamlined by offering online business license applications and renewals. FY 2025-26 collection is forecasted at 2.4 million in line with the FY 2022-23 actual collections.

Staff anticipates collecting the majority of the business license revenue during the third quarter.

Business license tax revenue projections provided by HdL are trending higher than the adopted budget due to the timing of the actual business license tax received across fiscal years. Staff is recommending a $418,985 increase to this revenue source.

FY 20-21 FY 21-22 FY 22-23 FY 23-24
2nd Quarter Actual Revenues $ 224,388 $ 167,942 $ 97,974 $ 352,611 $ 153,569** Fiscal Year Total Actual Revenues $ 1,386,943 $ 1,481,667 $ 2,361,862 $ 1,519,960 Fiscal Year Total Estimated Revenues $ 2,839,985
Fiscal Year Budgeted Revenues $ 1,300,000 $ 1,425,000 $ 2,310,110 $ 2,429,419 $ 2,421,000 2nd Quarter Revenue Percent of Total 16% 11% 4% 23% 5%
Recommended Budget Revision $ 418,985
FY 24-25
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
$2,400,000
$2,600,000
$2,800,000
$3,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Business License Tax - Quarterly and Annual Revenues
5-Year History
2nd Quarter Actual Revenues Fiscal Year Total Actual Revenues Fiscal Year Budgeted Revenues Fiscal Year Total Estimated Revenues

ITEM NO. 14.
10 ATTACHMENT 1
Transient Occupancy Tax
TOT is an important revenue source for the Town and comprises approximately 4% of the total Town's estimated revenues in the amount of $2.3 million for FY 2024-25. The Town levies a 12% transient occupancy tax (TOT) on all hotel and motel rooms within the municipal limits of Los Gatos. The 12% rate has been in effect since January 1, 2017, after the voters approved a ballot measure to increase the TOT from 10% to 12% during the November 8, 2016 election.

During the pandemic, TOT experienced the most significant percentage decline relative to historically adopted budgets. Due to a significant rebound in leisure “staycation” travel and modest improvements in business travel, TOT collections are trending slightly higher than the prior year due to the variance in timing of the payment received. Overall revenue collection is trending with budget; staff does not recommend a change to this category this time.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
2nd Quarter Actual Revenues $ 399,620 $ 711,861 $ 875,715 $ 819,683 $ 941,711 Fiscal Year Total Actual Revenues $ 1,044,820 $ 1,895,064 $ 2,228,190 $ 2,367,653 Fiscal Year Total Estimated Revenues $ 2,332,419
Fiscal Year Budgeted Revenues $ 707,723 $ 1,475,000 $ 2,348,547 $ 2,262,528 $ 2,332,419 2nd Quarter Revenue Percent of Total 38% 38% 39% 35% 40% Recommended Budget Revision $ 0
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
TOT - Quarterly and Annual Revenues
5-Year History
2nd Quarter Actual Revenues Fiscal Year Total Actual Revenues Fiscal Year Budgeted Revenues Fiscal Year Total Estimated Revenues

ITEM NO. 14.
11 ATTACHMENT 1
Interest Income
The Town earns interest income by investing monies not immediately required for daily operations in a number of fixed income and money market instruments. These investments are made within the parameters stated in the Town Council’s Investment Policy and State regulation. The Town’s investment goal is to achieve a competitive rate of return while maintaining sufficient liquidity and protecting the safety of its funds. Interest income revenue is primarily dependent on two factors: the cash balance in the Town’s investment portfolio and the yield on those funds.

As of December 31, 2024, the Town’s weighted portfolio yield for investments under management was

4.44%, which was 1 basis point above the Local Agency Investment Fund (LAIF) yield of 4.43% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 257 days versus the Town’s longer WAM of 677 days. The longer WAM for Town assets under management reflects the Town’s strategy to take advantage of higher yields associated with longer maturities balanced with shorter-term yields available on investments held with the State’s LAIF. The Town’s weighted average rate of return on investments under management of 4.44% at the close of December was 1 basis point lower when compared to the prior month’s return of 4.45% reported as of November 30, 2024.

While interest is trending with budget, at the close of the prior fiscal year, the General Fund cash balance was approximately 60% of the total cash balance, 10% lower than prior year. The General Fund proportionate share of interest is decreasing, while other funds interest share is increasing with the same amount. Interest allocations are finalized upon the final close of the fiscal year based on the actual cash balances as of June 30, 2025. Staff is recommending $337,092 revenue budget decrease in the General Fund interest collection.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
2nd Quarter Actual Revenues $ 343,813 $ 227,164 $ 145,003 $ 235,922 $ 358,969 Fiscal Year Total Actual Revenues $ 876,460 $ 610,975 $ 602,592 $ 986,489 Fiscal Year Total Estimated Revenues $ 1,427,333
Fiscal Year Budgeted Revenues $ 626,409 $ 441,233 $ 670,021 $1,566,384 $ 1,764,425 2nd Quarter Revenue Percent of Total 39% 37% 24% 24% 20% Recommended Budget Revision $ (337,092)
* GASB 31 Market Adjustment and GASB 87 Lease Interest are not Included $-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Interest - Quarterly and Annual Revenues
5-Year History
2nd Quarter Actual Revenues Fiscal Year Total Actual Revenues Fiscal Year Budgeted Revenues Fiscal Year Total Estimated Revenues

ITEM NO. 14.
12 ATTACHMENT 1
Charges for Services
Town Service revenues consist primarily of planning, building, inspections, and engineering fees assessed on local building and development activity. Development fees and charges are assessed based on cost recovery formulas, which reflect approximate costs of providing these regulatory services. This category includes charges for the School Resource Officer and crossing guard services.

Second quarter Town Service revenues, specifically Charges for Services, are trending higher than in the second quarter compared to the previous fiscal year. Typically, development fees are collected in advance for projects and recognized as revenue in the fiscal year the work is performed. Fiscal Year estimated revenues includes all revenue line items in this category. Staff recommends a $59,275 budget increase in selected items to reflect increased activities in planning and engineering services as explained in the Budget Adjustment section of this Report.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
2nd Quarter Actual Revenues $ 3,258,027 $ 3,906,577 $ 3,284,766 $ 3,934,979 $ 4,371,480 Fiscal Year Total Actual Revenues $ 4,797,770 $ 5,310,271 $ 4,646,705 $ 5,913,520 Fiscal Year Total Estimated Revenues $ 4,996,598
Fiscal Year Budgeted Revenues $ 4,038,119 $ 4,249,239 $ 5,540,465 $ 4,715,797 $ 4,705,658 2nd Quarter Revenue Percent of Total 68% 74% 71% 67% 87% Recommended Budget Revision $ 59,275
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Charges for Services - Quarterly and Annual Revenues
5-Year History
2nd Quarter Actual Revenues Fiscal Year Total Actual Revenues Fiscal Year Total Estimated Revenues Fiscal Year Total Estimated Revenues

ITEM NO. 14.
13 ATTACHMENT 1
Licenses and Permits
Licenses and Permits consist mainly of planning and building permit fees which are collected by the Town to offset administrative costs associated with evaluating development proposals to ensure compliance with codes and policies.

Second quarter License and Permit revenue is trending 50% of budgeted revenue. Fiscal Year estimated revenues includes all revenue line items in this category. Staff recommends a $254,073 increase in selected items in this category as explained in the next section of this Report.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
2nd Quarter Actual Revenues $ 1,584,098 $ 3,373,287 $ 1,602,633 $ 1,777,085 $ 2,940,729 Fiscal Year Total Actual Revenues $ 1,984,400 $ 4,814,650 $ 3,268,498 $ 3,993,247 Fiscal Year Total Estimated Revenues $ 5,789,497
Fiscal Year Budgeted Revenues $ 2,889,898 $ 3,052,907 $ 2,830,574 $ 3,255,155 $ 5,832,140 2nd Quarter Revenue Percent of Total 80% 70% 49% 45% 50% Recommended Budget Revision $ 254,073
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Licenses & Permits - Quarterly and Annual Revenues
5-Year History
2nd Quarter Actual Revenues Fiscal Year Total Actual Revenues Fiscal Year Total Estimated Revenues Fiscal Year Total Estimated Revenues

ITEM NO. 14.
14 ATTACHMENT 1
GENERAL FUND – EXPENDITURE ANALYSIS
For FY 2024-25, General Fund Operating expenditures (not including debt payments and transfers out) are programmed at $56.6 million. The delivery of Town services is highly dependent on talent which comprises 68.5% of budgeted General Fund operating expenditures for FY 2024-25. During the fiscal year, the Town Council has approved several budget adjustments, which are tracked against the Adopted Budget. The net effect is an Adjusted Budget. General Fund expenditure totals are trending in accordance with the Adjusted Budget, with total operational expenditures at the end of the second quarter at or about 44% of the Adjusted Budget. With six months of data now available, staff expects that the individual Departments’ current expenditure budgets may not be sufficient for the remainder of the year. If needed, staff will recommend the necessary expenditure budget adjustments which may require future Council action.

As with most municipalities, services are provided directly by employees to the Town’s residents, businesses, and visitors. As a service delivery enterprise, the cost of salaries and benefits are a significant portion of the budget. As the table below illustrates, at mid-year, actual salaries are trending at 47% of budgeted salaries, overtime is trending 122% respectively to the adopted budget, while pension benefits and other benefits are trending at 46% and 43% respectively to the Adjusted Budget.

The FY 2024-25 budget was balanced including 4.6% vacancy factor, while Council directed that staff continue to hire for all vacant positions. The 4.6% salary savings represents approximately $1.8 million projected savings. Current year end general Fund salaries and benefits expenditure estimates include about $1.1 million salary savings compared to the adjusted budget that already inlcudes the 4.6% vacancy factor. Fully staffed Departments are trending over budget due to the 4.6% vacancy factor that was built in. Staff will continue to monitor the Salaries and Benefits and request adjustment as needed to ensure that all programs remain within its allocated budget before Fiscal Year end.

FY 2023-24 presented the first year when the budget was balanced with the 4.6% vacancy factor. The final General Fund salaries and benefits budgets of $35,611,692, include a negative $1,670,530 original salary savings and a positive $714,666 budget restoration for Departments that were fully staffed. In addition, the General Fund had $1,041,299 salaries and benefits savings. While individual Departments had various savings, the Townwide General Fund salaries and benefits savings would translate to 5.5% if all positions are budgeted without vacancy savings factors. At this time, staff recommends to keep the

4.6% vacancy factor when building the FY 2025-26 proposed budget and reevaluate the most appropriate factor to use after having two full years of actual data available.

The pie chart below represents the Departmental proportion of the Town’s General Fund estimated operating expenditures. The subsequent pages review program expenditures and any anticipated FY 2023-24
Actuals
FY 2023-24
2Q
2Q % of
FY 2023-24
Actuals
2Q % of
FY 2024-25
Adjusted
Budget
FY 2024-25
2Q
FY 2024-25
Estimated
FY 2024-25
Adjusted
Budget
Salaries $ 21,541,677 $10,306,661 48% 47% $ 10,928,352 $ 22,648,282 $ 23,407,866 Overtime $ 1,322,849 $ 546,899 41% 122% $ 728,999 $ 1,498,641 $ 599,171 Pension Benefits $ 7,431,198 $ 3,652,570 49% 46% $ 4,051,720 $ 8,271,829 $ 8,786,402 Other Benefits $ 4,274,670 $ 2,044,327 48% 43% $ 2,413,604 $ 4,879,094 $ 5,647,633 Total Salaries and Benefits $ 34,570,393 $ 16,550,457 48% 47% $ 18,122,676 $ 37,297,846 $ 38,441,072 General Fund Salaries & Benefits

ITEM NO. 14.
15 ATTACHMENT 1
savings are provided for each program. Also provided are historical program costs, year over year (YOY) percentage changes in actual expenditures, and five-year average changes per the Finance Commission’s suggestion. YOY percentage changes are, in many cases, impacted by the timing of one-time expenditures that occur during the fiscal year. Historical analysis has been provided in selected cases to provide explanations for some of the fluctuations between fiscal years. The FY 2024-25 estimated figures also include analysis on potential salary and other expenditure savings; however, budget adjustments are only recommended as identified in this Report.

Town Council

0.4%
Attorney

1.9%
Administrative
Services

12.1%
Non- Departmental

9.7%
Community
Development

11.6%
Police

38.1%
Parks & Public
Works

19.9%
Library

6.3%

ITEM NO. 14.
16 ATTACHMENT 1
Town Council
The Town Council is the elected legislative body that represents the residents and provides policy direction for the delivery of services and capital improvements for the Town of Los Gatos. Town Council expenditures are trending higher than the same quarter in the prior year. Total estimated expenditures are also trending higher than budget due to the fact that this Department is fully staffed. Staff will monitor this program and request a budget adjustment, if necessary, before Fiscal Year end.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Second Quarter Actual Expenditures $ 99,787 $ 91,800 $ 92,674 $ 98,255 $ 104,604 Fiscal Year Total Actual Expenditures $ 192,280 $ 189,569 $ 186,337 $ 196,368 Fiscal Year Total Estimated Expenditure $ 219,937
Fiscal Year Budgeted Expenditures $ 243,486 $ 202,891 $ 217,238 $ 197,261 $ 210,994 Second Quarter Percentage of Total 52% 48% 50% 50% 50%
Recommended Budget Revision $ -
YOY Percentage Changes -6.62% -1.41% -1.70% 5.38% 12.00% 5-year Average Percentage Change 1.53%
$-
$100,000
$200,000
$300,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Town Council - Quarterly and Annual Expenditures
5-Year History
Second Quarter Actual Expenditures Fiscal Year Total Actual Expenditures Fiscal Year Budgeted Expenditures Fiscal Year Total Estimated Expenditure

ITEM NO. 14.
17 ATTACHMENT 1
Town Attorney
The Town Attorney is the legal advisor to the Town Council, Successor Agency to the former Redevelopment Agency, and Town staff. In this capacity, the office of the Town Attorney provides a wide range of legal services to ensure that Town actions and activities are legally sound. Town Attorney program expenditures are trending at 41% at the second quarter. Staff recommends a $100,000 expenditure budget increase to provide additional legal support anticipated for the Department.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Second Quarter Actual Expenditures $ 311,520 $ 226,377 $ 332,183 $ 336,063 $ 398,950 Fiscal Year Total Actual Expenditures $ 537,296 $ 629,935 $ 699,143 $ 751,614 Fiscal Year Total Estimated Expenditure $1,071,653
Fiscal Year Budgeted Expenditures $ 658,831 $ 669,733 $ 811,426 $ 947,963 $ 978,732 Second Quarter Percentage of Total 58% 36% 48% 45% 41%
Recommended Budget Revision $ 100,000
$-
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Town Attorney - Quarterly and Annual Expenditures
5-Year History
Second Quarter Actual Expenditures
Fiscal Year Total Actual Expenditures
Fiscal Year Budgeted Expenditures

ITEM NO. 14.
18 ATTACHMENT 1
Administrative Services
The Town Manager provides overall management, administration, and direction for the entire Town organization, reporting to the full Town Council. Administrative Services incorporates five key programs:

Town Manager’s Office, Clerk Department, Finance Department, Human Resources Department, and Information Technology.

Administrative Services program expenditures are trending at 46% at mid-year. Staff estimates approximately $122,568 expenditure savings in this program. Savings are anticipated in mainly staff salaries and benefits, travel and training, and office supplies. Staff requests $10,000 expenditure budget adjustment to Council unhoused initiatives to document prior Council direction.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Second Quarter Actual Expenditures $ 2,467,813 $ 2,583,281 $ 2,435,224 $ 3,144,181 $ 3,163,903 Fiscal Year Total Actual Expenditures $ 4,730,360 $ 5,441,605 $ 5,302,277 $ 5,877,879 Fiscal Year Total Estimated Expenditure $ 6,739,059
Fiscal Year Budgeted Expenditures $ 5,055,847 $ 5,965,801 $ 5,759,393 $ 6,506,131 $ 6,861,627 Second Quarter Percentage of Total 52% 47% 46% 53% 46%
Recommended Budget Revision $ 10,000
YOY Percentage Changes 16.88% 15.04% -2.56% 10.86% 14.65% 5-year Average Percentage Change 10.97%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Administrative Services - Quarterly and Annual Expenditures 5-Year History
Second Quarter Actual Expenditures Fiscal Year Total Actual Expenditures Fiscal Year Budgeted Expenditures Fiscal Year Total Estimated Expenditure

ITEM NO. 14.
19 ATTACHMENT 1
Community Development Services
The Community Development Department works with elected and appointed officials, other Departments, and the community to guide the physical growth, development, and preservation of the Town.

Community Development program expenditures are trending lower than the same quarter expenditures in the prior year due to current development activities in Building and Pass-Through programs. The PassThrough program collects the required developer deposits for various review services. The Town provides those services through consultants and the consultants are paid out of the applicant’s account. At the close of a project, all remaining fees collected will be refunded to the applicant. Staff recommends expenditure budget adjustments for purchase and temporary maintenance of an affordable housing unit in the amount of $345,367 that is offset with dedicated revenue. Staff also recommends an additional $50,000 budget adjustment for contract planner services to assist with the current planning application workload that is offset with additional planning application fees. In addition, staff requests a $40,000 budget decrease for contract building inspection services to reflect current building inspection activity.

Staff will monitor this program and request an additional budget adjustment, if necessary, before Fiscal Year end.

Community Development Department expenditures vary year to year based on the development activity and pass-through services.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Second Quarter Actual Expenditures $ 2,589,502 $ 3,460,301 $ 2,394,537 $ 2,559,684 $ 2,632,401 Fiscal Year Total Actual Expenditures $ 4,994,391 $ 6,313,505 $ 5,365,410 $ 5,246,729 Fiscal Year Total Estimated Expenditure $ 6,491,635
Fiscal Year Budgeted Expenditures $ 5,605,215 $ 5,461,716 $ 6,978,617 $ 5,509,853 $ 6,161,824 Second Quarter Percentage of Total 52% 55% 45% 49% 43%
Recommended Budget Revision $ 355,367
YOY Percentage Changes 8.35% 26.41% -15.02% -2.21% 23.73% 5-year Average Percentage Change 8.25%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Community Development - Quarterly and Annual Expenditures 5-Year History
Second Quarter Actual Expenditures Fiscal Year Total Actual Expenditures Fiscal Year Budgeted Expenditures Fiscal Year Total Estimated Expenditure

ITEM NO. 14.
20 ATTACHMENT 1
Police Services
The Los Gatos-Monte Sereno Police Department provides Police services to the Town of Los Gatos and contractually to the City of Monte Sereno. The Department is committed to ensuring public safety with integrity, compassion, and professionalism, by providing exceptional law enforcement services, building community partnerships, and engaging the community in problem solving.

Staff is continuing to monitor Police service program revenues and expenditures. The Police Department dedicated additional resources for ongoing recruitments for open positions. Whenever feasible, open positions are filled with trainees, per diems, and temporary employees until positions are filled, which contributes to increased costs. Staff recommends $72,130 expenditure budget decrease to match actual grant spending with grant receipts across the fiscal years. Total estimated expenditures are trending lower than budget due to partial vacancies across the Department. Staff is monitoring this program and may request additional budget adjustments, if necessary, before Fiscal Year end.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Second Quarter Actual Expenditures $ 9,041,998 $ 8,266,432 $ 8,957,541 $ 9,732,572 $ 10,268,293 Fiscal Year Total Actual Expenditures $ 16,570,836 $ 16,451,189 $ 18,446,040 $ 20,718,871 * Fiscal Year Total Estimated Expenditure $ 21,300,796
Fiscal Year Budgeted Expenditures $ 17,487,761 $ 17,390,969 $ 19,331,331 $ 21,107,570 $ 22,895,849 Second Quarter Percentage of Total 55% 50% 49% 47% 45%
Recommended Budget Revision $ (72,130)
YOY Percentage Changes 9.79% -0.72% 12.13% 12.32% 2.81% 5-year Average Percentage Change 7.26%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Police - Quarterly and Annual Expenditures
5-Year History
Second Quarter Actual Expenditures Fiscal Year Total Actual Expenditures Fiscal Year Budgeted Expenditures Fiscal Year Total Estimated Expenditure

ITEM NO. 14.
21 ATTACHMENT 1
Parks and Public Works Services
The Parks and Public Works Department constructs and maintains the Town’s public parks, facilities, roadways, right-of-way, and other infrastructure. Six organizational units work in coordination to achieve the Department’s overarching goal of ensuring the Town’s facilities are safe, functional, and attractive.

The Parks and Public Works services program expenditures are trending similar to the prior year same quarter expenditures.

Total Estimated expenditures are trending higher than budget due to the fact that the Department is utilizing temporary per diem employees as needed to fill vacancies. Staff recommends an expenditure budget increase of $139,673 mainly attributed to the additional contractual obligations toward waste management, legal, sidewalk steam cleaning, and street sweeping services. Staff will monitor this program and request an additional budget adjustment, if necessary, before Fiscal Year end.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Second Quarter Actual Expenditures $ 4,185,306 $ 4,010,181 $ 4,215,979 $ 4,589,535 $ 4,927,283 Fiscal Year Total Actual Expenditures $ 8,179,757 $ 8,605,455 $ 8,998,082 $ 9,789,656 Fiscal Year Total Estimated Expenditure $ 11,127,851
Fiscal Year Budgeted Expenditures $ 8,209,850 $ 9,080,662 $ 10,368,194 $ 10,401,796 $ 10,653,984 Second Quarter Percentage of Total 51% 47% 47% 47% 46%
Recommended Budget Revision $ 139,673
YOY Percentage Changes 2.57% 5.20% 4.56% 8.80% 13.67%
5-year Average Percentage Change 6.96%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Parks and Public Works - Quarterly and Annual Expenditures 5-Year History
Second Quarter Actual Expenditures Fiscal Year Total Actual Expenditures Fiscal Year Budgeted Expenditures Fiscal Year Total Estimated Expenditure

ITEM NO. 14.
22 ATTACHMENT 1
Library Services
The Los Gatos Library fosters curiosity and community connection and strives to be at the heart of an engaged and vibrant community.

Library services program expenditures are trending higher than prior year same quarter expenditures.

Staff recommends a $32,188 expenditure budget increase for general collection to match the actual grant receipt spending and other cost neutral temporary employee salary transfers between programs to better align the Department needs with the appropriate personnel. Total Estimated expenditures are also trending higher than budget due to the fact that this Department is fully staffed. Staff will monitor this program and request an additional budget adjustment, if necessary, before Fiscal Year end.

FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Second Quarter Actual Expenditures $ 1,445,899 $ 1,365,415 $ 1,442,417 $ 1,669,629 $ 1,719,732 Fiscal Year Total Actual Expenditures $ 2,828,873 $ 2,752,401 $ 3,096,485 $ 3,253,389 Fiscal Year Total Estimated Expenditure $ 3,542,183
Fiscal Year Budgeted Expenditures $ 2,957,531 $ 3,062,708 $ 3,247,731 $ 3,285,841 $ 3,458,657 Second Quarter Percentage of Total 51% 50% 47% 51% 50%
Recommended Budget Revision $ 32,188
YOY Percentage Changes 11.85% -2.70% 12.50% 5.07% 8.88% 5-year Average Percentage Change 7.12%
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Library - Quarterly and Annual Expenditures
5-Year History
Second Quarter Actual Expenditures Fiscal Year Total Actual Expenditures Fiscal Year Budgeted Expenditures Fiscal Year Total Estimated Expenditure

ITEM NO. 14.
23 ATTACHMENT 1
FY 2024-25 RECOMMENDED BUDGET ADJUSTMENTS
Budget adjustments are recommended for the following revenues and expenditures at the second quarter as described below:

Program Account
1201 411** Property Tax $ (232,691) Based on Santa Clara County Property Tax Estimates February 2025 1201 41141 Motor Vehicle In Lieu Fee (VLF) 130,070 Based on Santa Clara County Property Tax Estimates February 2025 1201 41211 Sales & Use Tax (178,939) Based on MuniServices Most Likely January 2025 Sales Tax Estimates 1221 41214 Measure G - District Sales Tax (44,314) Based on MuniServices Most Likely January 2025 Sales Tax Estimates 1201 41611 Cable Franchise Fee (28,000) Based on Past Receipts and Current Trend 1201 42542 Waste Hauler Encroachment Fees (68,927) Based on current Agreement and Rate 1201 45952 Garbage Solid Waste Agreements (86,404) Based on current Agreement and Rate 1201 43341 State Mandated Cost Reimbursement 95,766 Funds Anticipated 1201 44514 City of San Jose Animal Services Reimbursement (22,225) Based on current Agreement 1201 48219 Unrestricted Fund Tracking - Made Available by ARPA Grant Receipt (33,000) Funds Expended Prior Fiscal Year 1232 45964 Pension Trust Contriubution 300,000 Funds Anticipated from Available Reserves 2101 48219 Unrestricted Fund Tracking - Made Available by ARPA Grant Receipt 9,351 Funds Not Expended Prior Fiscal Year, almost Matching Expenditures 2301 45219 Interest to Other Funds (337,092) Funds partially Received 2301 41411 Business License Tax 418,958 Funds Anticipated 3201 42413 Planning Permits 300,000 Funds Anticipated
3201 42414 Council Appeal Fees 1,000 Funds Anticipated
3201 44214 Other Planning Fees 10,000 Funds Anticipated 3202 44412 Special Project 20,000 Funds Anticipated
3301 44415 Address Processing Fee 15,000 Funds Anticipated 3301 44422 Building Inspections (40,000) Funds are not Received, Matching Expenditures 3301 48427 Building Standards SB 1473 Reimbursement 1,500 Funds Anticipated 3401 45111 Code Complience - Admin Citation 10,000 Funds Anticipated 3501 45921 Sale of Land/Property 344,388 Funds Received, Matching Expenditure 4202 43336 Prop 172 - Public Safety Sales Tax (23,900) Based on MuniServices Most Likely January 2025 Sales Tax Estimates 4301 48218 Measure G - District Sales Tax (22,157) Funds are not Received, Matching Tracking Expenditures 5202 44214 Engineering Development Other Service Fees 20,000 Funds are not Received 5202 44621 Engineering Services 20,000 Funds Anticipated 5202 44625 Grading Inspection 17,000 Funds are not Received 5301 42511 Oak Meadow Park Reservation Fee 10,000 Funds Anticipated 5301 42515 Tree Removal Permit 10,000 Funds Anticipated 5301 42543 Park Vending Permit 3,000 Funds Anticipated
5301 44213 Special Event Reimbursement 17,000 Funds Anticipated 5301 45421 Donation - Benches (3,678) Funds are not Received, Matching Tracking Expenditures 5302 43522 AB 939 Grant (8,634) Funds are not Received
5405 45922 Insurance Claim Reimbursement 16,818 Funds are Received, partially Matching Expenditures 7301 45452 Friends of the Library (10,000) Decrease in Donations 7801 43343 Public Library Fund Grant 32,188 Grant Carryforward TOTAL GENERAL FUND REVENUES $ 662,078
FY2024-25 MID-YEAR BUDGET ADJUSTMENT REQUESTS - GENERAL FUNDS General Fund Revenues

ITEM NO. 14.
24 ATTACHMENT 1
Program Account
1201 62113 Town Share of Retiree Medical 313,938 Funds are Partially Expended 1201 62119 Additional Payment to IRS Pension Trust 300,000 From Available Reserve 1201 62227 Santa Clara County - Election Fees (85,520) Funds are not Expended 1201 62521 Frontier Parking Lot Lease 9,522 Funds are Partially Expended 1201 63114 Animal Services 7,000 Funds are Partially Expended 1221 68218 Measure G Sales Tax - Pass Thru (44,314) Funds are not Expended 1301 63215 Legal Services 100,000 Funds are not Expended 2101 63251 Unhoused Initiatives 10,000 Funds are not Expended 3201 62318 Contract Employee Services 50,000 Funds are not Expended 3301 63381 Building Inspections (40,000) Funds are not Expended 3501 63370 HOA Dues and Services 979 Funds are Expended, Matching Revenue 3501 8**** Sale of Land/Property 344,388 Funds are Expended, Matching Revenue 4817 61142 Police Program Supplies (72,130) Funds are Expended, Matching Revenue 5201 63215 Legal Services 50,000 Funds are Partially Expended 5301 68622 Benches (3,678) Funds are not Received, Matching Tracking Expenditures 5302 63121 SCC- Household Waste Fee 25,343 Funds are Partially Expended 5401 63361 Street Sweeping Services 40,000 Funds are not Expended 5401 63365 Sidewalk Steam Cleaning 15,000 Funds are not Expended 5405 62379 Miscellionous Services and Repairs 13,008 Funds are Partially Expended 5201 5**** Salaries and Benefits (27,101) Transfer Intern Hours From Engineering To Facilities Maintenance Program 5407 5**** Salaries and Benefits 27,101 Transfer Intern Hours From Engineering To Facilities Maintenance Program 7201 5**** Salaries and Benefits 12,913 Transfer Library Clerk Temporary Hours to Library Assistant Hours 7202 5**** Salaries and Benefits 28,661 Transfer Library Page Temporary Hours to Library Assistant Hours 7204 5**** Salaries and Benefits (41,574) Transfer Library Clerk and Page Temporary Hours to Library Assistant Hours 7801 6**** Grant Expenditures 32,188 Match Grant Revenue Carryforward TOTAL GENERAL FUND EXPENDITURES $ 1,065,724
FY2024-25 MID-YEAR BUDGET ADJUSTMENT REQUESTS - GENERAL FUNDS General Fund Expenditures Fund Program Account Other Fund Revenues 251 4508
251 45352 43 N Santa Cruz Ave Rent 60,000 Funds Anticipated $ 60,000
421 421-832-4505
421 43214 MTC - OBAG 421 Match Budget to Actual Grants Received $ 421
TOTAL OTHER FUNDS REVENUES $ 60,421
Fund Program Account Other Fund Expenditures
411 411-811-9903
411 82405 Use of Excess VRF Reserves 397,887 From Available Vehicle Registration Fees Reserves $ 397,887
633 5404
633 62371 Building Maintenance & Repairs 40,000 Funds are not Expended $ 40,000
714 7304
714 61172 Youth Collections 2,000 Funds are not Expended $ 2,000
716 7305
716 61171 General Collections 8,000 Funds are not Expended $ 8,000
TOTAL OTHER FUNDS EXPENDITURES $ 447,887
Facilities Maintenance
Susan Mclendon Trust
Barbara Jones Cassin Trust
GFAR
FY 2024-25 MID-YEAR BUDGET ADJUSTMENT REQUESTS - OTHER FUNDS Los Gatos Theatre
Grants

ITEM NO. 14.
25 ATTACHMENT 1

SUMMARY OF KEY RECOMMENDED BUDGET ADJUSTMENTS
 General Property Tax and Motor Vehicle in Lieu Fee: Staff recommends a decrease in projected revenues of approximately $232,691 in General Property Tax and an increase of $130,070 Motor Vehicle in Lieu fee which are in line with the estimates and forecasts provided to the Town from Santa Clara County.
 Sales and Use Tax: Staff recommends a $178,939 revenue budget decrease to reflect current sales tax trends based on MuniServices’ current projections.  Measure G – District Sales Tax: Staff recommends a $44,314 revenue budget decrease to reflect the current trends of the one-eight cent sales tax based on MuniServices’ projections and the matching $44,314 pass through revenue and expenditure budget adjustments to track the Measure G allocation for police and capital services based on prior Council actions.  Cable Franchise Fee: Staff recommends a decrease in projected revenues of approximately $28,000 in cable franchise fee based on current collection trend.  Waste Hauler Encroachment Fees: Staff recommends a $68,927 revenue budget decrease based on the current agreement terms.
 Other Wastehauler Fee: Staff recommends a decrease in projected revenues of approximately $86,404 to match the current agreement.
 Animal Services: Staff recommends a $22,225 revenue budget decrease and $7,000 expenditure budget increase due to changes with the current agreement.  Unrestricted Fund Tracking - Made Available by ARPA Grant Receipt: Staff recommends a $33,000 revenue budget decrease in the Non-Departmental Program since expenditures incurred in a prior year and a $9,351 revenue budget increase for unhoused services based on the fact that not all dedicated funds for this purpose were expended in the prior year.  Business License Tax: Staff recommends a $418,958 revenue budget increase based on revised estimates that includes one time payments that crossed fiscal years.  Interest to Other Funds: Staff recommends a $337,092 revenue budget decrease due to the fact that the General Fund proportionate share of interest is decreasing, while other funds interest share is increasing with the same amount. Interest allocations are finalized upon the final close of the fiscal year based on the actual cash balances as of June 30, 2025.  Planning Permits and Council Appeal Fees: Staff recommends a $300,000 revenue budget increase to reflect increased planning application activities and a $11,000 budget increase for council appeal based on current receipts.
 Special Project: Staff recommends a $20,000 revenue budget increase based on the current receipts collected.

ITEM NO. 14.
26 ATTACHMENT 1
 Address Processing Fee: Staff recommends a $15,000 revenue budget increase based on the current receipts collected.
 Building Inspections: Staff recommends a $40,000 revenue and expenditure budget decrease based on current receipts collected; and a $1,500 revenue budget increase for reimbursement from Building Standards SB 1473.
 Code Compliance – Admin Citations: Staff recommends a $10,000 revenue budget increase based on the current receipts collected.
 Affordable Housing Program: Staff recommends a $344,388 expenditure and revenue budget increase to accommodate to resell and temporary maintain the 137 Bersano Lane unit. All sale proceeds are redeposited to the Town’s Below Market Housing Program fund.  Prop 172 – Public Safety Sales Tax: Staff recommends a $23,900 revenue budget decrease to reflect the current trends of the tax based on MuniServices’ current projections.  Oak Meadow Park Reservation Fee: Staff recommends a $10,000 revenue budget increase based on the current receipts collected.
 Tree Removal Permit: Staff recommends a $10,000 revenue budget increase based on the current receipts collected.
 Park Vending Fee: Staff recommends a $3,000 revenue budget increase based on estimated activity in new park vendor program.
 Special Event Reimbursement: Staff recommends a $17,000 revenue budget increase based on the current receipts collected.
 Benches: Staff recommends a $3,678 revenue and expenditure budget decrease due to placement of memorial bench program on hold.
 AB 939 Grant: Staff recommends a $8,634 revenue budget decrease due to funds not expected to be received.
 Contract Employee Services: Staff recommends a $50,000 expenditure budget increase for a contract Senior Planner.
 Police Program Supplies: Staff recommends a $72,130 expenditure budget decrease for previously allocated/spent funds.
 Legal Services: Staff recommends a $50,000 expenditure budget increase based on investigative needs.
 SCC Household Waste Fee: Staff recommends $25,353 expenditure budget increase due to changes in billing.

ITEM NO. 14.
27 ATTACHMENT 1
 Street Sweeping Services: Staff recommends a $40,000 expenditure budget increase for an emergency street sweeping contract.
 Sidewalk Steam Cleaning Staff recommends a $15,000 expenditure budget increase due to a prevailing wage increase in the sidewalking steam cleaning contract.  PPW Salaries and Benefits Reclassification: Staff recommends a $27,101 expenditure budget transfer to reclassify salaries and benefits for an Intern from the Engineering program to a temporary Facilities Maintenance Worker in the Facilities program.  Engineering Development Other Service Fees: Staff recommends $20,000 revenue budget increase based on the current trends in miscellanious engineering service fees.  Engineering Service: Staff recommends a $20,000 revenue budget increase based on the current trends for engineering services.
 Grading Inspection: Staff recommends a $17,000 revenue budget increase based on the current trends for engineering services.
 Library Salaries and Benefits Reclassification: Staff recommends a $41,574 expenditure budget transfer to reclassify salaries and benefits for temporary employees across Library Programs for actual program expenses due to changes in workforce and training requirements.  Insurance Claim Reimbursement: Staff recommends a $16,818 revenue budget increase to recognize the reimbursement received for damaged retaining walls and a $13,008 expenditure budget increase for misc. service and repairs.
 Library Operating Grants: Staff recommends a $32,188 revenue and expenditure budget increase based on use of deferred grant receipts.
 Friends of the Library: Staff recommends a $10,000 revenue budget decrease to recognize a decrease in anticipated donations.
 Retiree Medical: Staff recommends a $313,938 expenditure budget increase based on current estimates.
 IRS Pension Trust: Staff recommends a revenue and expenditure budget increase of $300,000 to make an additional payment to the IRS Pension Trust from the available Pension/OPEB Reserve.  Legal Services Support: Staff recommends a $100,000 expenditure budget increase based on hiring a firm to assist with part-time legal support.
 SCC Election Fees: Staff recommends a budget expenditure decrease of $85,520 for elections not held.
 Frontier Parking Lot Lease: Staff recommends a $9,522 expenditure budget increase for commissions paid.

ITEM NO. 14.
28 ATTACHMENT 1
 Unhoused Initiatives: Staff recommends a $10,000 expenditure budget increase from prior Council direction.

Other Fund Revenues and Expenditures
 Theatre Tenant Rent: Staff recommends a $60,000 revenue budget increase based on anticipated rent payments.
 Grant Funded Projects: Staff recommends a $421 revenue budget increase to match budget to actual grant receipts.
 Susan McLendon Trust: Staff recommends a $2,000 expenditure budget increase to recognize use of interest earned.
 Barbara Jones Cassin Trust: Staff recommends a $8,000 expenditure budget increase to recognize use of interest earned.
 GFAR Project Costs: Staff recommends a $397,887 expenditure budget increase to use available excess VRF funds in reserves.
 Facilities Maintenance: Staff recommends a $40,000 expenditure budget to repair the blinds in parts of the Civic Center.

ITEM NO. 14.
29 ATTACHMENT 1

FINANCIAL SUMMARIES OF OTHER FUNDS
The group of financial summaries on the following pages present data by governmental, proprietary, and fiduciary fund types. For each, the fund information starts with a beginning fund balance, adds current year revenues, and subtracts current year expenditures, resulting in an ending fund balance. Adopted budget amounts are provided as a basis for comparison of actuals to date.

Special Revenue Funds (Governmental Fund Type)
Special Revenue Funds account for the proceeds derived from specific revenue sources that are legally restricted or assigned to special purposes. The Town’s Special Revenue Funds are the Community Development Block Grant Fund, Housing Conservation Program Fund, Urban Runoff Source Fund (NonPoint Source), several Landscaping Lighting District (LLD) Funds, Theatre Fund, and Library Trusts Funds.

Staff also recommends a $60,000 revenue budget increase adjustment to recognize the Theatre tenant lease payments, a $10,000 revenue budget decrease in donations, and a $10,000 expenditure budget adjustment in the Library trust funds to utilize prior year interest proceeds for general and youth collection items.

CDBG Non-Point LIBRARY
Grants Source LLD's THEATRE TRUSTS
Beginning Fund Balance $ 166,653 $ 754,134 $ 182,625 $ 171,035 $ 556,848 Budgeted Revenues - 163,690 39,230 57,960 76,400
Total Actual Revenues - 2nd Qtr $ - $ 68,204 $ - $ 153,718 $ 60,272 Budgeted Expenditures - 284,429 40,401 55,814 108,002
Total Actual Expenditures - 2nd Qtr - 137,476 11,793 31,727 19,975 2nd Quarter Ending Fund Balance $ 166,653 $ 684,862 $ 170,832 $ 293,026 $ 597,145 Special Revenue Funds
Budget to Actuals Comparisons

ITEM NO. 14.
30 ATTACHMENT 1
Capital Projects Funds (Governmental Fund Type)
Capital Projects Funds account for resources used for the acquisition and construction of capital facilities by the Town. Funds in this category are the GFAR (General Fund Appropriated Reserve) Fund, Community Center Development Fund, Traffic Mitigation Fund, Grant Funded CIP Projects Fund, Utility Underground Fund, Gas Tax Fund, and three Storm Drain Funds. Staff recommends $397,887 expenditure budget adjustments to utilize the excess Vehicle Registration Fee reserve for additional street work and a $421 revenue adjustment in the grant fund to match the revenue budget with the actual grant receipts. The Grant Funded CIP fund displays a deficit balance because this grant fund expends Town dollars first, then provides documentation of these expenditures to the State of California or other granting agencies and is reimbursed for those costs. The reimbursements eventually result in the fund “breaking even” or a zero-fund balance.

Community
GFAR* Center Traffic * Grant Funds* Storm Utility Gas
Fund Development Mitigation CIP Drains Undergd Tax
Beginning Fund Balance $ 20,253,302 $ 866,281 $ 509,491 $ (2,563,504) $ 3,531,248 $ 3,584,251 $ 1,928,167 Budgeted Revenues 5,305,867 - 213,380 15,928,718 106,830 45,590 1,784,585 Total Actual Revenues - 2nd Qtr 711,831 - - 2,883,522 27,775 7,967 734,964 Budgeted Expenditures 22,153,916 866,281 255,265 12,782,685 1,859,938 299,574 3,404,619 Total Actual Expenditures - 2nd Qtr 2,669,477 - 720 2,210,933 54,193 - 1,620,034 2nd Quarter Ending Fund Balance $ 18,295,656 $ 866,281 $ 508,771 $ (1,890,915) $ 3,504,830 $ 3,592,218 $ 1,043,097 Capital Project Funds
Budget to Actuals Comparisons
* GFAR, Community Center Development, Traffic Mitigation, and Grant Funds balances are combined in the FY 2024 ACFR. The combined balance of $19,065,570 is presented as an Appropriated Reserve.

ITEM NO. 14.
31 ATTACHMENT 1
Internal Service Funds (Proprietary Fund Type)
Internal Service Funds finance and account for special activities and services performed by a designated Town Department for other Town Departments on a cost reimbursement basis. Included in this fund type are the Equipment Replacement Fund, Workers’ Compensation Fund, Joint Powers Authority Pooled Liability Network (PLAN) Self-Insurance Fund, Information Technology Fund, and the Facilities Maintenance Fund.

The Self-Insurance Fund displays a deficit balance because insurance premiums are paid at the beginning of the fiscal year. However, Department reimbursements are posted on a bi-monthly basis. In addition, increased premium rates and increased claim activities required the Town to increase its Liability Internal Service charges in the FY 2024-25 budget. Staff continues to monitor the insurance rates and is considering alternative insurances that can provide potential savings for the Town.

Equipment Workers Self Information Facility
Replacemt Compensation Insurance Technology Maint.

Beginning Fund Balance $ 3,286,552 $ 586,247 $ 177,877 $ 2,523,349 $ 960,525 Budgeted Revenues 1,123,659 1,905,154 1,507,436 914,114 1,396,548 Total Actual Revenues - 2nd Qtr 561,910 799,845 646,317 412,119 683,466 Budgeted Expenditures 2,105,937 1,826,050 1,540,481 1,118,348 1,445,325 Total Actual Expenditures - 2nd Qtr 372,460 931,916 1,341,650 582,395 540,081 2nd Quarter Ending Fund Balance $ 3,476,002 $ 454,176 $ (517,456) $ 2,353,073 $ 1,103,910 Internal Service Funds
Budget to Actuals Comparisons

ITEM NO. 14.
32 ATTACHMENT 1
Trust and Agency Funds (Fiduciary Fund Type)
AB1x26 is the “Dissolution Bill” that eliminated the Town’s Redevelopment Agency effective February 1, 2012. AB 1484 is the “clean-up” bill that revised and attempted to clarify AB1x26. In accordance with the law, the Successor Agency continues to wind down the affairs and operations of the former Redevelopment Agency by implementing programs and activities in accordance with the State-approved Recognized Obligation payment Schedule (ROPS). The Successor Agency monies are now accounted for in a Private Purpose Trust fund and no longer part of the Town’s Financial Statements. The fund balance reported is the actual fund balance that incorporated the full accrual of long-term debt related to the outstanding bonds payable to the 2002 and 2010 Certificates of Participations. The approved ROPS schedule includes full funding related to the obligation for this debt.

SA
Trust
Beginning Fund Balance $ (4,632,040)
Budgeted Revenues 3,828,264
Total Actual Revenues - 2nd Qtr -
Budgeted Expenditures 3,816,144
Total Actual Expenditures - 2nd Qtr 1,715,878
2nd Quarter Ending Fund Balance $ (6,347,918)

ITEM NO. 14.

PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, and Assistant Town Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov ATTACHMENT 2

TOWN OF LOS GATOS

FINANCE COMMISSION AGENDA REPORT
MEETING DATE: 02/10/2025
ITEM NO: 4
DATE: February 7, 2025
TO: Finance Commission
FROM: Chris Constantin, Town Manager
SUBJECT: Review and Make a Recommendation to the Town Council on the FY 2025-26 Five-Year Forecast and Supporting Work Product
RECOMMENDATION:

Review and provide recommendations to the Town Council regarding the Five-Year Forecast (Fiscal Years 2025-26 – 2029-30), assumptions, and scenarios, and provide input for the FY 2025-26 budget direction.

EXECUTIVE SUMMARY:

The base case Five-Year Forecast (FY2025-26 – 2029-30) (Exhibit B) identifies deficits for all future years, using already negotiated salary cost increases (FY 2025-26 and FY 2026-27) and 2% salary increase assumption (beyond FY 2027-28), 4.6% vacancy saving factor and other assumptions (see Exhibits C and D to Attachment 2). The projected deficits start at $5.6M in FY 2025-26 and can be mitigated in the short term by expenditure controls and using one-time funds. Revenue projections are not keeping pace with rising costs. Future discussions of revenue capacity to match expenditures and service levels will need to occur to address increasing pressure on Town finances.

This report demonstrates the forecast sensitivity. The Finance Commission can provide recommendations on the assumptions for Council consideration for the FY 2025-26 budget and provide other budget direction as appropriate.

BACKGROUND:

With the passage of Measure A, the Finance Commission has been tasked with several mandated duties as described in the provisions of the adopted Ordinance. Section 2.50.225. – Duties states that:

ITEM NO. 14.

PAGE 2 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
(a) The Finance Commission shall:

Serve as an on-going substantive and expert advisory body to the Town and Town Council so that the Town and Town Council can make informed decisions about the Town's financial, budgetary and investment matters and operations related thereto.

On February 20, 2025, the Town Council is scheduled to consider the FY 2025-26 Five Year Forecast which is an important component of the annual budget cycle (Exhibit A).

The Commission is welcome to provide comments on the Forecast, its assumptions, and scenarios as well as any comments for consideration in the preparation of the FY 2025-26 Operating Budget.

Forecasting Approach Consistent with Government Finance Officers Association (GFOA) A "conservative" forecast as described by GFOA is conservative with revenue assumptions and builds in a layer of contingencies for expenditures. This approach might make it harder to balance the budget but reduces the risk of an actual shortfall. The Town’s past forecasting practice represented this conservative approach.

During the last couple of years, staff changed elements of the budgeting and forecasting methodology. Starting FY 2020-21, the salaries are budgeted and forecasted at actual salary plus one step higher. Beginning in FY 2023-24, the budget and the forecast included a 4.6% vacancy savings factor, moving toward a less conservative approach.

An "objective" forecast as described by GFOA seeks to estimate revenues and expenditures as accurately as possible, making it easier to balance the budget, yet increasing the risk of an actual shortfall.

It is very important that the approach to the forecast and the underlying assumptions are clear, analyzing the risk between being objective versus conservative. While one-time solutions can solve near term shortfalls, the best practice is to build a structurally balanced forecast where recurring revenues (the portion of the Town’s revenues that can reasonably be expected to continue year to year with some degree of predictability) equal or exceed recurring expenditures (salaries, benefits, and other operational expenditures).

DISCUSSION:

An important aspect of the Town’s budget development process is taking a multi-year approach to understand revenue and expenditure trends over time. Serving as the foundation of the budget planning process (Exhibit A), the Town develops a Five-Year Financial Forecast (“Forecast”) beginning in the winter of each year. The Forecast enables the Town to evaluate its fiscal condition and to help guide policy, programmatic planning, and budget decisions.

ITEM NO. 14.

PAGE 3 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
Developing a financial forecast as part of the budget development process has been identified as a best practice by the Government Financial Officers Association (GFOA).

This process helps to provide a snapshot of what the future may look like as a result of the decisions made to date.

The initial Forecast (FY 2025-26 – 2029-30) is predicated on estimates derived from the FY 2024-25 Mid-Year review and includes updates to Town revenues and expenditures based on the end of year estimates projected at mid-year. Like any forecast, the Forecast’s revenue estimates for the first year are the most critical in the process as they ultimately define the expenditure limitations for the upcoming budget year.

This report contains detailed information that contributes to the preparation of the annual budget, including the Town’s “Base Case” Five-Year Forecast, its data sources, and budget assumptions. It also provides two additional forecast scenarios utilizing a sensitivity analysis for four of the major revenue assumptions. These additional forecast scenarios illustrate the effects on future budgets of a 1% higher revenue growth scenario (“Greater Growth”) and a 1% lower revenue growth scenario (“Lower Growth”).

The Five-Year Financial Forecast is not a budget, nor a proposed plan. The Five-Year Financial Forecast sets the stage for the upcoming budget process and is a tool in facilitating both the Town Council and Town Manager in establishing priorities and allocating resources appropriately.

National and Local Economic Backdrop
The UCLA Anderson School of Business publishes a quarterly economic forecast for the nation and California. The results of this forecast are used as part of the macroeconomic foundation for the Five-Year Forecast development. The Winter 2024 (December 2024) UCLA Anderson Report predicts that the incoming administration’s policies, including tariffs on major trading partners (China, Mexico, and Canada), mass deportations, and tax cuts, will have a negative impact on the U.S. economy. These measures are anticipated to increase the cost of living by raising the prices of various goods and services and creating labor shortages in the agriculture, hospitality, manufacturing, and construction sectors. Consequently, while the U.S. economy is expected to outperform other countries, GDP growth is projected to fall below 2% in 2025, with only a partial rebound in 2026.

The US economy’s resiliency is demonstrated by the Gross Domestic Product (GDP) increase of

3.1% in the third quarter and 2.3% in the fourth quarter of 2024 (Advance Estimate). As the graph below illustrates, the 2.3% increase in GDP is comprised of positive gains in consumer and government spending offset by decreases in investment and imports (positive value is subtracted from GDP).

ITEM NO. 14.

PAGE 4 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
The UCLA forecast anticipates that California’s economy will mirror U.S. growth rates, as the State faces .

Operating Revenue Trends and Five-Year Forecast Scenarios The Town is highly dependent on four economically sensitive revenues comprising 65% of General Fund forecasted revenues. Following are summaries of the Town’s major revenues, including property tax, sales tax, business license tax, and transient occupancy tax (TOT).

Updated growth assumptions are provided for each revenue source and the resultant projected revenues for the new Forecast period. The revenue assumptions provided are informed by the County Tax Assessor, the Town’s sales tax consultant, and direct communication with the Town’s hospitality industry. In addition, alternative forecast scenarios for these four revenue streams are discussed in this report. Please see Exhibit C for a description of all revenue categories with a comprehensive listing of revenue forecast assumptions.

Property Tax
As the following table illustrates, Los Gatos has benefited from the economic expansion as evidenced by year-over-year (YOY) total property assessment roll growth since 2018. For the 7- year period, the average annual growth rate was 6.3%.

Property tax is the single largest revenue source for the Town and comprised approximately 42% of total Town estimated General Fund revenues for FY 2024-25. Secured Property Tax, 2018 2019 2020 2021 2022 2023 2024
Seven Year
Average Growth
Total Assesment Roll
(Values in Billions) 13.15 13.84 14.9 15.6 16.8 18.1 18.8 Percent Growth 6.95% 5.23% 7.70% 4.33% 7.77% 7.72% 4.10%

6.3%

ITEM NO. 14.

PAGE 5 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
Motor Vehicle in Lieu (VLF), and Excess Education Revenue Augmentation Fund (ERAF) constitute 90% of the current year's property tax proceeds. The following table and graphs illustrate how the actual year-over-year (YOY) performance for the different property tax categories varies from fiscal year to fiscal year.

The following chart illustrates the FY 2024-25 Estimated Property Tax categories.

The following graph illustrates the historical amounts based on the major categories and their YOY growth.

The following table illustrates the historical YOY growth based on the major categories.

ITEM NO. 14.

PAGE 6 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
The staff analysis includes the three most significant property tax categories – Secured Property Tax and VLF Property Tax generally increase alongside the growth of the Total Assessment Rolls.

The Total 2024 Assessment Roll will be published in July 2025 by the Santa Clara Assessor’s Office.

In addition to the annual assessment increases and the reassessments of Proposition 13 properties as they change ownership, historical growth encompasses the annexation of 24 pockets from Santa Clara County and property sales from the First Phase of the North Forty development. The VLF Property Tax in Lieu collection, based on the assessed roll, is also included.

ERAF, as the table illustrates above, can vary yearly, and it is not tied to the Total Assessment Roll. A portion of property tax revenue goes to the ERAF to support local school districts. When the amount contributed to ERAF exceeds the minimum cost of funding local schools, excess funds have traditionally been returned to the county, cities, and special districts. Santa Clara County has only provided projections for the current fiscal year. FY 2025-26 Excess ERAF projections will not be available until March 2025. The Town has been monitoring ongoing developments regarding the distribution of excess ERAF funds. A portion of property tax revenue goes to the ERAF to support local school districts. When the amount contributed to ERAF is more than the minimum cost of funding local schools, excess funds have traditionally been returned to the counties, cities, and special districts.

During the last couple of years, the Santa Clara County redistribution formula was contested by the State, and additional risk raised from State Controller’s audit findings for Marin County. The Town received the full amount since FY 2021-22; however, the Santa Clara County Assessor’s Office recommended reserving a certain percentage based on the risk. According to the most recent (January 2025) communication from the Santa Clara State Controller Office the risk remains for the State Controller Office Audit findings that varies from 20% to 22% for the Town.

Estimated at risk amounts and the Town Actual and Estimates ERAF Risk Reserves are presented below.

Percentage
of Total
Proceeds
Property Tax Categories
FY 2018-19
Actuals
FY 2019-20
Actuals
FY 2020-21
Actuals
FY 2021-22
Actuals
FY 2022-23
Actuals
FY 2023-24
Actuals
FY 2024-25
Estimates
Average
YOY
Growth
60% Secured Property Tax 6.9% 5.6% 1.6% 6.1% 12.3% 7.0% 4.9% 6.3% 20% Motor Vehicle in Lieu (VLF) 6.9% 5.2% 4.6% 4.4% 7.7% 7.7% 4.1% 5.8% 10% ERAF 90.5% 46.1% 41.4% 16.1% -3.1% 8.8% 3.2% 29.2%
4% Unsecured Property Tax 16.4% -5.1% 6.9% -7.8% 8.8% 6.1% -0.5% 3.9% 2% Property Transfer Tax -21.8% -9.2% 76.0% 17.0% -37.8% -23.2% -32.9% 1.3% 2% Other Property Tax -11.1% -0.2% 10.7% 1.0% -2.6% 4.1% 28.1% 5.0% 2% Supplemental Property Tax 17.7% -31.8% 40.3% -9.0% 61.1% -40.5% -37.4% 3.3%

ITEM NO. 14.

PAGE 7 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
The Town Estimated ERAF Risk Reserve is $1,215,154 as of June 30, 2025. With the FY 2024-25 budget adoption Council action $1,000,000 of the ERAF Risk Reserve was transferred to the Pension/OPEB Reserve. The total reserve amount of $2,215,154 is still below the Town’s estimated risk amount of $2,558,139, therefore, staff recommends continuing to reserve 30% of the anticipated FY 2024-25 ERAF proceeds.

Staff recommendations for property tax growth assumptions are listed below based on the above information.

Secured Property Tax:

Staff recommends growing the secured property tax by 4.1%.

Motor Vehicle in Lieu (VLF):

Staff recommends growing the VLF by 4.1%.

Excess ERAF:

Staff recommends the assumption that the Town will receive 100% of the ERAF proceeds; however, per prior Council direction and the Santa Clara County Assessor’s Office advice, 30% is set aside until the audit findings are resolved.

Unsecured, Supplemental, Other Property Tax, and Property Transfer Tax:

Staff recommends increasing the rest of the property taxes (Unsecured, Supplemental, Other Property Tax, and Property Transfer Tax), which represents 10% of the current proceeds, by 3%.

For purposes of the Forecast, the “Base Case” utilizes staff recommendations. “Higher Growth” and “Lower Growth” scenarios represent 1% above and below the recommended growth to illustrate the forecast sensitivity. The following tables display three cases related to all property tax and vehicle license fee.

FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Total $ Actual Actual Actual Actual Estimated
Excess ERAF $ 2,043,321 $ 2,371,984 $ 2,298,692 $ 2,534,820 $ 2,617,000 According to Santa Clara County State Controller Office January 2025 Communication State Controller Audit Finding Risk % 22% 22% 22% 22% 20% State Controller Audit Finding Risk ($) $ 449,531 $ 521,836 $ 505,712 $ 557,660 $ 523,400 $ 2,558,139 Town ERAF Risk Reserve as of 6/30/2024 $ 1,430,054
Estimated Addition to the Reserve - 30% of the FY 2024-25 proceeds $ 785,100.00 Allocation of the ERAF Risk Reserve to Pension/OPEB Reserve per June 4, 2024 Council Action $ (1,000,000.00) Town Estimates ERAF Risk Reserve as of 6/30/2025 $ 1,215,154.00 2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Lower Growth (1% Lower) $25.70 $26.30 $27.10 $27.80 $28.60 Base Case $25.90 $26.80 $27.80 $28.80 $29.80
Greater Growth (1% Higher) $26.10 $27.20 $28.50 $29.80 $31.20 Property Tax
(Property Tax & VLF)

ITEM NO. 14.

PAGE 8 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
Sales Tax
Sales tax is the second largest revenue source for the Town’s General Fund, accounting for 15% of budgeted General Fund projected revenues for FY 2024-25. The Town currently receives

1.125 cents for every 9.125 cents of sales tax paid per dollar on retail sales and taxable services transacted within Los Gatos, including the Town of Los Gatos residents’ approved ballot Measure G in 2018 enacting a one-eighth cent (0.125%) district sales tax for 20 years.

Sales tax estimates are based on actual sales tax data and annual sales tax estimates for five years provided by the Town’s consultant, MuniServices. In addition to brick-and-mortar sales tax generation, the MuniServices estimates include several online sales tax projections. The 2018 Wayfair Decision resulted in e-commerce vendors utilizing the Amazon platform to collect sales tax based on destination; however, items shipped directly from Amazon fulfillment centers are collecting sales tax based on the point of distribution. Regular sales tax collected through online transactions are distributed through the Santa Clara County pool for which the Town receives a pro rata share of the sales tax generated in Santa Clara County for that particular quarter. The Town directly receives the one-eighth district tax portion of the sales tax generated by the residents of Los Gatos. Most recent estimates for FY 2024-25 are estimating declining sales tax collection comparing the FY 2024-25 adopted budget, a $223,253 decrease for the current fiscal year
The following tables display MuniService's Most Likely scenario relative to their “Conservative” and “Optimistic” scenarios for the forecast period. As illustrated below even the optimistic scenario is presenting modest growth in this category.

Staff recommends forecasting the sales tax according to the Most Likely assumption. 2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Conservative $6.28 $6.39 $6.52 $6.64 $6.74
Most Likely $6.50 $6.62 $6.76 $6.88 $6.98
Optimistic $6.74 $6.85 $7.00 $7.22 $7.23
Base Sales Tax
Measure G
1/8 District Tax
2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Conservative $1.24 $1.27 $1.37 $1.34 $1.37
Most Likely $1.27 $1.30 $1.34 $1.37 $1.40
Optimistic $1.29 $1.33 $1.36 $1.40 $1.43

ITEM NO. 14.

PAGE 9 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
Transient Occupancy Tax
TOT is an important revenue source for the Town and comprises approximately 4% of the total Town's estimated revenues in the amount of $2.3 million for FY 2024-25. The Town levies a 12% transient occupancy tax (TOT) on all hotel and motel rooms within the municipal limits of Los Gatos. The 12% rate has been in effect since January 1, 2017, after the voters approved a ballot measure to increase the TOT from 10% to 12% during the November 8, 2016 election. During the pandemic, TOT experienced the most significant percentage decline relative to historically adopted budgets. Due to a significant rebound in leisure “staycation” travel and modest improvements in business travel, TOT collections are trending slightly higher than the prior year due to the variance in the timing of the payment received. Overall revenue collection is trending within the budget with no significant change from the prior year's actual collection. Staff anticipates a modest growth in TOT collection and recommends a 2% growth assumption in this category.

For purposes of illustrating the Forecast sensitivity, the “Base Case” utilizes a growth factor of 2% recommended by staff as illustrated above, and the “Greater Growth” and “Lower Growth” scenarios utilize a 1% differential from the Base Case.

Business License Tax
Business License Tax is an important revenue source for the Town and comprises approximately 4% of the total Town's estimated revenues in the amount of $2.3 million for FY 2024-25. The Town requires all businesses located within Los Gatos and/or those that operate within Los Gatos to obtain a business license. The amount of business license tax paid by each business is based on its business activity.

In November 2022, Los Gatos voters approved Measure J, which modernized the Town’s business license tax program. This was the first update to the program since 1991, strengthening funding for core Town services that are enjoyed by Town businesses. Measure J included a 30% increase on flat rate fees, a 40% increase in retailing gross receipts, and a 120% 2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Proposed Growth 2% 2% 2% 2% 2%
Estimated Revenues $2.39 M $2.42 M $2.47 M $2.52 M $2.57 M TOT
2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Lower Growth (1% Lower) $2.36 $2.38 $2.40 $2.43 $2.45
Base Case 2% $2.39 $2.42 $2.47 $2.52 $2.63
Greater Growth (1% Higher) $2.40 $2.47 $2.55 $2.63 $2.70 TOT

ITEM NO. 14.

PAGE 10 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
increase in e-commerce, manufacturing, wholesaling, and jobbing gross receipts. Fees for activities such as wholesale sales and manufacturing are charged on a sliding scale based on gross receipts, as is retail, with retail being capped at $1,365. These gross receipt activities account for approximately 25% of annual business licenses, while the remaining 75% are flat fee businesses.

Payments for new flat-fee-based businesses are prorated by quarter. Current year business license tax revenue projections provided by HdL, the Town third party business license processor, are trending higher than the adopted budget due to the timing of business license tax received across fiscal years. FY 2025-26 collection is forecasted at 2.4 million in line with the FY 2022-23 actual collections. Staff recommends 3% growth in this category.

For purposes of the Forecast, the “Base Case” utilizes a 3% growth factor as illustrated above and the “Greater Growth” and “Lower Growth” scenarios utilize a 1% differential from the Base Case.

Operating Expense Trends and Five-Year Forecast Scenarios Forecasts of future operating expenditures consider two key factors: cost escalation and new operating expenditures. New operating expenditures refer to costs created by new or enhanced service programs approved during the annual budget process. Exhibit D contains the expenditure assumptions.

Cost escalation refers to largely unavoidable increases in the cost of doing business. It includes inflation, multi-year contract costs, health care costs, and unfunded State mandates. Cost escalation also includes other unavoidable cost increases to a government organization, such as a rise in wages consistent with collective bargaining agreements and annual pension payments mandated by CalPERS. The Town has three bargaining units, including the Town Employees’ Association (TEA), the American Federation of State, County and Municipal Employees (AFSCME), and the Police Officers’ Association (POA). The unrepresented groups are Management, Confidential, and Temporary.
2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Proposed Growth 3% 3% 3% 3% 3%
Estimated Revenues $2.29 $2.57 $2.65 $2.72 $2.81
Business License Tax
2023/24
Forecast
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast
($M) ($M) ($M) ($M) ($M)
Lower Growth (1% Lower) $2.47 $2.52 $2.57 $2.62 $2.67
Base Case 3% $2.29 $2.57 $2.65 $2.72 $2.81
Greater Growth (1% Higher) $2.52 $2.62 $2.72 $2.83 $2.95 Business License Tax

ITEM NO. 14.

PAGE 11 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
For FY 2024-25, General Fund Operating expenditures (not including debt payments and transfers out) are programmed at $56.6 million. The delivery of Town services is highly dependent on talent which comprises 68.5% of budgeted General Fund operating expenditures for FY 2024-25. Given the high dependence on labor for service delivery, the Town has helped manage salary escalation (and benefits) through the maintenance of lower staffing levels.

Mandated pension payments to CalPERS have consistently been one of the major cost drivers for the Town over the past decade with persistent unanticipated increases in pension costs. The Town’s plans over the past several decades, like all other CalPERS participants, have experienced unfavorable investment returns, changes in actuarial assumptions, and demographic changes which have outweighed any positive plan experiences. The outcome of these unfavorable economic and demographic results is the development of unfunded pension and Other Post-Employment Benefit (OPEB) obligations for the Town. Previously, the Town has allocated additional discretionary pension funding to address the escalation in pension costs.

The Town and its bargaining groups have also worked to contain benefit costs. The Town closed the CalPERS retiree Tier 1 benefit for non-safety employees and created a new Tier 2 for nonsafety new employees in 2012, implemented the Public Employees’ Pension Reform Act (PEPRA) for all new non-classic employees starting in 2013, and participates in the CalPERS discounted prepayment option.

In addition to the management of the Town’s pension obligations, the Town and the Town’s bargaining groups have worked to curb cost escalation in OPEB. In 2009, the Town initiated prefunding of the retiree healthcare benefit and has since established approximately $29.2 million in OPEB assets (as of 9/31/2024) from zero in 2009. In 2016, the Town’s bargaining groups approved the introduction of dependent cost sharing and a reimbursement cap to Medicare-eligible employees, and in 2018, the elimination of the Town's existing retiree healthcare benefit prospectively.

While these collective measures have helped to slow the growth in salary and benefit expenses, the forecast anticipates continued increases in the Town’s pension obligations.

Provided below are the expense assumptions for salary and benefits and alternate case scenarios for pension contributions. Most other expenses are assumed to increase at 3% per annum. Detailed expenditure assumptions and factors can be found in Exhibit D to Attachment

2.

ITEM NO. 14.

PAGE 12 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
Salary and Benefits
Salary
The Town has historically budgeted vacant and non-sworn positions at the top step of the range for the position. Sworn and management positions were budgeted at one step higher than the current step in anticipation of any merit increases expected to be awarded in the upcoming fiscal year. Based on Council’s direction from FY 2021-22, salaries were budgeted at actual salary plus a one step increase, which was a significant budgeting methodology change from previous practice. In addition, the FY 2023-24 budget built in a 4.6% vacancy factor. These methodologies will be continued in the FY 2025-26 budget development, unless modified by the Town Council.

For the forecast, positions are budgeted at the actual rate of pay of employees, including benefits, as of January 2024. Then, by position, salary costs are updated in accordance with the applicable Memorandum of Understanding (MOU) between the Town and its bargaining units.

The Memoranda of Understanding that outline the individual agreements between the Town and each unit related to compensation, health benefits, leave time, and grievance procedures will expire with POA, TEA, and AFSCME on June 30, 2026. The Management, Confidential, and Temporary groups are unrepresented, but all salary schedules were approved through June 30, 2026 for these groups as well.

In addition to the economic terms of the MOUs, the forecast assumes step and merit increases for employees in applicable positions. In addition, based on prior Council guidance, 2% cost of living wage adjustments (COLA) are included in the forecast for each year starting in FY 2026-

27. Pension and Other Benefits
The Town’s required employer contribution rate estimates were developed using data provided by each plan’s most recent CalPERS actuarial valuation. The employer contribution rates reflect percentages of covered payroll. Rates shown for FY 2024-25 are actual rates as prescribed by CalPERS. Forecasted rates for FY 2025-26 and subsequent years are based on the most recent CalPERS actuarial valuation Reports as adjusted by the impact related to the FY 2022-23 CalPERS

6.1% investment return and forecasted payroll.

Salaries
Current Agreements

4.6% Vacancy Factor
2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Base Case $24.72 $25.85 $26.27 $26.81 $27.37

ITEM NO. 14.

PAGE 13 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
Beginning in FY 2021-22, the estimates of employer contributions were credited with an anticipated reduction associated with the approximate $4.8 million additional discretionary payment (ADP) toward the 2016 unfunded amortization base paid off in October 2019 and the total of approximately $5.8 million in ADPs toward unfunded 2013 and 2015 amortization bases that were paid off in FY 2020-21. Other Benefits include health insurance, life insurance, and workers’ compensation insurance premiums.

Given that investment returns have one of the largest impacts on contribution variability, CalPERS provides projected employer Unfunded Actuarial Liability (UAL) contributions under alternate investment returns. Analysis using the investment return scenarios from the Asset Liability Management process completed in 2023 was performed to determine the effects of various future investment returns on required employer contributions.

The projections below reflect the impact of the CalPERS Funding Risk Mitigation policy. The projected normal cost rates reflect that the rates are anticipated to decline over time as new employees are hired into lower-cost benefit tiers. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur. The table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between these levels over the 20-year period ending June 30, 2043.

CalPERS Actuarial Valuations as of June 30, 2023.

For the year ending June 30, 2024, the Public Employees Retirement Fund (PERF) preliminary investment return was 9.3%. The table below illustrates the historic investment returns for five years, ten years, twenty years, and thirty years.

Pension
Benefits
2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Base Case $9.55 $10.69 $10.92 $11.89 $12.09
Other Benefits 2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
($M) ($M) ($M) ($M) ($M)
Base Case $6.03 $6.30 $6.45 $6.59 $6.82
UAL Town Contributions
(Misc & Safety)
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Greater Investment Return Scenario (10.8%) $6,329,000 $6,398,000 $6,519,000 $6,047,000 $4,020,000 Base Investment Return Case (3.0%) $6,647,000 $7,344,000 $8,427,000 $9,262,000 $10,241,000

ITEM NO. 14.

PAGE 14 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
Five-Year Financial Forecast Alternative Scenarios
The tables below present the “Base Case” forecast contrasted against the two alternative revenue scenarios of “Greater Growth” and “Lower Growth.” All scenarios include a 4.6% salary saving factor, the approved salary increases and assume a 2% cost of living adjustment beyond FY 2026-27.

CONCLUSION:

The Finance Commission should review and discuss the elements and confirm the assumptions of the initial Five-Year Forecast and other budget considerations. All forecast scenarios estimate deficits at this time. Staff looks forward to answering the Finance Commission questions and CalPERS Compound Annual Rates of Return
(as of June 30, 2023) 5 Years 10 Years 20 Years 30 Years Compound Annual Return 6.1% 9.5% 7.1% 7.8% 7.0% 8.4% 7.5% 8.8% 5 Year Forecast
"Base Case"
with 4.6% Vacancy Factor
70% of ERAF
2025-26
Forecast
($M)
2026-27
Forecast
($M)
2027-28
Forecast
($M)
2028-29
Forecast
($M)
2030-31
Forecast
($M)
Total Revenues &
Transfers and Use of Reserves
$56.2 $57.8 $59.2 $60.5 $60.9
Total Expenditures &
Reserve Allocations $61.8 $65.0 $66.2 $68.7 $68.9
Surplus/Deficit ($5.6) ($7.2) ($7.0) ($8.2) ($8.0)
Alternative Scenario
"Greater Growth"
with 4.6% Vacancy Factor
70% of ERAF
2025-26
Forecast
($M)
2026-27
Forecast
($M)
2027-28
Forecast
($M)
2028-29
Forecast
($M)
2030-31
Forecast
($M)
Total Revenues &
Transfers and Use of Reserves $56.5 $58.2 $60.0 $61.7 $62.4 Total Expenditures &
Reserve Allocations $61.8 $65.0 $66.2 $68.7 $68.9
Surplus/Deficit ($5.3) ($6.8) ($6.2) ($7.0) ($6.5)
Alternative Scenario
"Lower Growth"
with 4.6% Vacancy Factor
70% of ERAF
2025-26
Forecast
($M)
2026-27
Forecast
($M)
2027-28
Forecast
($M)
2028-29
Forecast
($M)
2030-31
Forecast
($M)
Total Revenues &
Transfers and Use of Reserves $56.0 $57.1 $58.4 $59.2 $59.3 Total Expenditures &
Reserve Allocations $61.8 $65.0 $66.2 $68.7 $68.9
Surplus/Deficit ($5.8) ($7.9) ($7.8) ($9.5) ($9.6)

ITEM NO. 14.

PAGE 15 OF 15
SUBJECT: Five-Year Forecast (FY 2025-26 – 2029-30)
DATE: February 6, 2024
receiving any recommendations for Council consideration for the preparation of the proposed FY 2025-26 Operating Budget that results from the discussion.

The preparation of the FY 2025-26 Operating and Capital Budgets is taking into account the Town’s current economic reality and long term fiscal picture, as well as maintaining the Town’s high level of municipal services. Key budget principles include:
 Develop and recommend a balanced budget that maintains service levels;  Address projected deficits;
 Continue to make progress on Strategic Priorities identified by the Town Council; and  Identify opportunities to maintain or enhance service delivery through new revenue sources and technology.

The Finance Commission may also discuss budget assumptions. The Draft FY 2025-26 Operating and Capital Budgets will be available in April for the Finance Commission elaboration with the budget hearing tentatively scheduled for May 20, 2025.

COORDINATION:

This Report was prepared by the Finance Department and the Town Manager’s Office.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Exhibits:

1. Annual Budget Process

2. Base Case Five-Year Forecast

3. Forecast Revenue Assumptions

4. Forecast Expense Assumptions

ITEM NO. 14.

December
February
May
June
July
December
Prior FY
(2023-24)
June 30, 2024 ACFR finalized and
presented for Council approval.

ACFR surpluses assigned per the
Council Reserve Policy as of June 30,
2024
Council deliberates Strategic
Priorities and Budget direction for FY
2025-26.

Review of Five-year Forecast and
assumptions.

Council determines if previously
assigned surpluses should be
reallocated for FY 2025-26.

Council adoption of the FY 2025-26
Operating & Capital Budgets End of June 30, 2025 ACFR period June 30, 2025 ACFR finalized and
presented for Council approval.

ACFR surpluses assigned per the Council
Reserve Policy as of June 30, 2024
Exhibit A to Attachment 2
All Council deliberations and actions include opportunities for public input Current FY
(2024-25)
Next FY
(2025-26)
Start of new FY 2025-26 Operating
Budget year
Council considers Mid-Year Budget
adjustments through 12/31/2024 for
FY 2024-25 Budget.
͌
Public hearing on FY 2025-26
Operating & Capital Budgets

Finance Commission review and
comment on Proposed FY 2025-26
Operating & Capital Budgets.

April

ITEM NO. 14.

Exhibit B to Attachment 2
General Fund 5-Year Forecast
(in $ million)
Revenue Category
FY 2023-24
Actuals
FY 2024-25
Adjusted
Budget
FY 2024-25
Estimates
FY 2025-26
Forecast
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
Property Tax $ 19.3 $ 20.2 $ 20.0 $ 20.6 $ 21.3 $ 22.0 $ 22.8 $ 23.6 VLF Backfill Property Tax 4.9 5.0 5.1 5.3 5.5 5.8 6.0 6.2 Sales & Use Tax 6.8 6.6 6.4 6.6 6.6 6.8 7.0 7.0
Measure G District Sales Tax 1.3 1.3 1.3 1.2 1.3 1.3 1.3 1.4 Franchise Fees 2.5 1.0 1.0 1.0 1.1 1.1 1.1 1.2
Transient Occupancy Tax 2.4 2.3 2.3 2.4 2.5 2.5 2.6 2.7 Business License Tax 1.5 2.4 2.8 2.5 2.6 2.6 2.7 2.8
Licenses & Permits 3.3 3.5 3.5 3.1 3.2 3.2 3.3 3.4
Intergovernmental 1.2 1.1 1.1 0.8 0.9 0.9 0.9 0.9
Town Services 6.6 7.0 7.3 6.6 6.7 6.8 6.9 7.0
Fines & Forfeitures 0.5 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Interest 2.6 1.8 1.4 1.0 1.0 1.0 0.7 0.7
Other Sources 5.0 4.1 4.6 3.1 3.1 3.2 3.2 2.0
Fund Transfers In 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
$ 58.5 $ 57.2 $ 57.7 $ 55.1 $ 56.7 $ 58.1 $ 59.4 $ 59.8 Use of Capital/Special Projects Reserve $ 1.6 $ 2.7 $ 2.7 $ 1.1 $ 1.1 $ 1.1 $ 1.1 $ 1.1 Use of Measure G Sales Tax - Operating - 0.6 0.6 - - - - - Use of Pension/OPEB Reserve 0.3 - 0.3 - - - - -
Use of Council Priorites - Economic Recovery 1.5 - - - - - - - $ 61.9 $ 60.5 $ 61.3 $ 56.2 $ 57.8 $ 59.2 $ 60.5 $ 60.9 Expenditure Category FY 2023-24
Actuals
FY 2024-25
Adjusted
Budget
FY 2024-25
Estimates
FY 2025-26
Forecast
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
Salary $ 21.5 $ 25.2 $ 22.6 $ 26.0 $ 27.2 $ 27.7 $ 28.3 $ 28.9 Overtime 1.3 0.6 1.5 0.6 0.7 0.7 0.7 0.7
CalPERS Benefits 7.4 8.8 8.3 9.5 10.7 10.9 11.9 12.1
All Other Benefits 4.3 5.6 4.9 6.0 6.3 6.5 6.6 6.8

4.6% Salary and Benefits Savings - (1.8) - (1.9) (2.1) (2.1) (2.2) (2.2) OPEB Pay as You Go 1.6 1.7 2.0 2.3 2.4 2.5 2.6 2.7
Operating Expenditures 9.8 9.2 8.8 8.2 8.5 8.6 9.0 9.1
Grants & Awards 0.7 0.7 0.7 0.3 0.3 0.3 0.3 0.3
Utilities 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.8
Internal Service Charges 3.2 4.4 4.1 4.7 4.9 5.1 5.3 5.5 Debt Service 2.1 2.1 2.1 2.1 2.1 2.1 2.1 0.8
$ 52.9 $ 57.2 $ 55.7 $ 58.5 $ 61.7 $ 62.9 $ 65.3 $ 65.5 Additional Discretionary Payment - Pension 0.7 0.4 0.7 0.4 0.4 0.4 0.4 0.4 $ 53.6 $ 57.6 $ 56.4 $ 58.9 $ 62.1 $ 63.3 $ 65.7 $ 65.9 Capital Transfers Out to GFAR $ 1.6 $ 1.1 $ 1.1 $ 1.1 $ 1.1 $ 1.1 $ 1.1 $ 1.1 Transfer to General Liability 0.4 - - - - - - -
GASB 65 0.6 - - - - - - -
Fixed Assets/ Equipment 0.1 0.5 0.9 - - - - -
1/2 of Measure G Proceeds to Capital 0.7 0.6 0.6 0.6 0.6 0.6 0.7 0.7 Allocate to ERAF Risk Reserve 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.8 Allocate to Pension Trust 0.7 0.4 0.7 0.4 0.4 0.4 0.4 0.4 $ 57.7 $ 60.5 $ 60.5 $ 61.8 $ 65.0 $ 66.2 $ 68.7 $ 68.9 $ 4.2 $ - $ 0.8 $ (5.6) $ (7.2) $ (7.0) $ (8.2) $ (8.0) * Due to rounding of individual categories total revenues, expenditures, and reserve allocations may include $0.1 million.

NET REVENUES , TRANSFERS IN, USE OF RESERVES

LESS EXPENDITURES, TRANSFERS IN, AND RESERVE

ALLOCATIONS

TOTAL REVENUES, TRANSFERS, AND USE OF
RESERVES*
TOTAL EXPENDITURES & RESERVE ALLOCATIONS*

TOTAL OPERATING REVENUES & TRANSFERS

TOTAL OPERATING EXPENDITURES

TOTAL OPERATING & DISCRETIONARY

EXPENDITURES

ITEM NO. 14.

Revenue Baselines and Projection Factors
Exhibit C to Attachment 2
Type of
Revenues
FY 2024-25
Estimates
Baseline
FY 2025-26
Forecast
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
Property
Tax/VLF
Backfill
Current
baseline set by
SCC Assessor
Office February
2025 report

4.1% 4.1% 4.1% 4.1% 4.1%
Motor
Vehicle
License in
Lieu (VLF)
Current
baseline set by
SCC Assessor
Office February
2025 report

4.1% 4.1% 4.1% 4.1% 4.1%
ERAF
Current
baseline set
100% of SCC
Assessor Office
February 2024
Update
Reserving 30%
to ERAF Risk
Reserve
$1.83 million $1.83 million $1.83 million $1.83 million $1.83 million Sales Tax
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
Sales Tax -
Measure G
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January 2025
Most Likely
Estimates
Franchise Fee
Current
baseline set by
FY2024-25
Estimates
3% 3% 3% 3% 3%
Transient
Occupancy
Tax
Current
baseline set by
FY 2024-25
Estimates
2% 2% 2% 2% 2%
Business
License Tax
Current
baseline set by
FY 2024-25
Estimates
3% 3% 3% 3% 3%
License &
Permits
Current
baseline set by
FY 2024-25
Estimates
3% 3% 3% 3% 3%

ITEM NO. 14.

Revenue Baselines and Projection Factors
Exhibit C to Attachment 2
Town
Services
Current
baseline set by
FY 2024-25
Estimates
3% 3% 3% 3% 3%
Fine &
Forfeitures
Current
baseline set by
FY 2024-25
Estimates
Varies Varies Varies Varies Varies
Yield to
Maturity
Assumptions
Current
baseline set by
FY 2024-25
Actuals

3.51% 3.45% 3.37% 3.31% 3.28%
Other Sources
Current
baseline set by
FY 2024-25
Estimates
Varies Varies Varies Varies Varies

ITEM NO. 14.

Exhibit D to Attachment 2

EXPENDITURE BASELINE AND PROJECTION FACTORS
Beginning in FY 2020-21, the Town started budgeting salaries at the actual salary plus a one-step increase. In the FiveYear Forecast, positions are forecasted at the actual rate of pay including salaries and benefits as of December 31, 2024. Beginning FY 2023-24 the total salaries and benefits budget includes 4.6% vacancy factor. *Salary increases are based on actual step increases and approved Memoranda of Understanding with the bargaining units from FY 2024-25 through FY 2026-27. Beyond FY 2027-28 the assumption is 2% per year cost of living adjustment. ** Benefit increase estimates are provided by CalPERS/Public Employees’ Medical and Hospital Care Act (PEMHCA) *** Based on historical trends.

Type of
Expenditures
FY 2024-25
Budget
FY 2025-26
Forecast
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
Salaries*(TEA) 5% 3% 3% 2% 2% 2%
Salaries *(POA) 6.5% 5% 4% 2% 2% 2%
Salaries*(AFSCME) 4% 4% 4% 2% 2% 2%
Salaries *
(Management,
Confidential,
Temp)
5% 3% 3% 2% 2% 2%
Benefit -
Medical** 4% 4% 4% 4% 4% 4%
Operating
Expenditures*** 3% 3% 3% 3% 3% 3%
Grants & Awards 0% 0% 0% 0% 0% 0%
Utilities*** Varies 3% 3% 3% 3% 3%
Workers Comp
Charges
Based on
projected
payroll
3% 3% 3% 3% 3%
General Liability
Charges
Based on
projected
payroll
3% 3% 3% 3% 3%
Other Internal
Service
Charges***
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Debt Service Debt Service Schedules

ITEM NO. 14.

Exhibit D to Attachment 2
The Town’s required employer contribution rate estimates were developed using data provided by each plan’s most recent CalPERS actuarial valuation. The employer contribution rates reflect percentages of covered payroll. Rates shown for FY 2024-25 are actual rates as prescribed by CalPERS. Forecasted rates for FY 2025-26 and subsequent years are based on the most recent CalPERS actuarial valuation Reports as adjusted by the impact related to the FY 2022-23 CalPERS 6.1% investment return and forecasted payroll.

Beginning in FY 2021-22, the estimates of employer contributions were credited with an anticipated reductions associated with the approximate $4.8 million additional discretionary payment (ADP) toward the 2016 unfunded amortization base paid off in October 2019 and the total of approximately $5.8 million in ADPs toward unfunded 2013 and 2015 amortization bases that were paid off in FY 2020-21.

Type of
Expenditures
FY 2024-25
Budget
FY 2025-26
Forecast
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
Safety
POA

94.98% 98.72% 102.27% 106.14% 115.00% 117.32%
Safety
Management
POA

97.98% 101.72% 105.27% 109.14% 118.00% 120.32%
Safety

POA - PEPRA

15.56% 15.56% 15.68% 15.69% 16.32% 16.61%
Miscellaneous
TEA/AFSCME/Con
fidential/
Management

30.62% 29.65% 31.01% 32.28% 33.81% 34.49%
Miscellaneous
TEA/AFSCME/Con
fidential/
Management
PEPRA
Separate PEPRA
rate for
Miscellaneous has
not been
established yet by
CalPERS.

30.62% 29.65% 31.01% 32.28% 33.81% 34.49%

ITEM NO. 14.

PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney, Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 02/18/2025
ITEM NO: 15
ITEM NO: 10
DATE: February 13, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Adopt a Resolution Modifying the Comprehensive Fee Schedule for Fiscal Year (FY) 2024-25 Amending Certain Fees, Rates, and Charges for FY 2024-25.

RECOMMENDATION:

Adopt a resolution modifying the Comprehensive Fee Schedule for FY 2024-25 amending certain fees, rates, and charges for FY 2024-25.

BACKGROUND:

The Town’s financial policies require that certain fees, rates, and charges for services be maintained to allow for cost recovery based on the actual cost to provide Town services. “Fee” activities are services and functions provided by the Town to individuals who receive some direct material benefit above and beyond services offered to residents at general taxpayer expense. Staff periodically reviews the cost of providing such services and recommends appropriate adjustments in fees when supported by actual cost data.

The current fee schedule became effective on July 1, 2024. The fee schedule was developed based on a comprehensive evaluation of Town fees completed in 2019. The fees established in the 2019 study are increased each year based on the Consumer Price Index. The current fee schedule calls for Parks and Public Works to charge $4,948 for new multi-family residential applications.

On December 3, 2024, the Town Council adopted amendments to Town Code Section 14 regarding sidewalk and park vending. The updated code eliminates reference to pushcart permits. The current fee schedule (line 207) references an application fee for a pushcart permit that no longer exists as of January 3, 2025.

ITEM NO. 15.

PAGE 2 OF 3
SUBJECT: Fee Schedule for Fiscal Year 2024-25
DATE: February 13, 2025
DISCUSSION:

The proposed FY 2024/25 Comprehensive Fee Schedule accounts for modifications to fees as explained below:

1. Sidewalk Vending Permit (Line 207 page 21) – Effective January 3, 2025, the pushcart ordinance was repealed and replaced with a sidewalk vending ordinance. This modification updates the name of the permit fee to reflect the new permit program.

2. Encroachment Permit - Consultant Plan Review and Inspection Services for serial applications (10+ per year) or specialty applications (page 26) – Provides clarity with regard to use of Parks and Public Works use of consultant services to review encroachment permit applications and inspect work performed in the right of way.

Parks and Public Works (PPW) receives, reviews, and issues approximately 700 encroachment permits every calendar year. Each of these permits receives field inspection to ensure the permittee is complying with the permit requirements.

Throughout 2024, PPW has been seeing a dramatic increase in high-volume encroachment permit applications from telecom, digital, electric service, and other utility providers. With only one staff member in the encroachment permit program, the use of a third-party consultant to review applications and perform field observations of work associated with these high-volume applicants (e.g., Comcast, PG&E) is required.

This change in the fee schedule provides PPW the authority to use third-party consultants to support the review of these applications.

3. Entitlement Application - Consultant Plan Review – 10+ Units (page 30) – Provides the authority for staff to require applicants of large land use entitlement projects to pay for consulting costs associated with review of the application at the time the application is made. This change is proposed because the current fee schedule allows for Parks and Public Works to charge approximately $4,950 for entitlement applications. That fee is not adequate to cover staff costs associated with the review of the larger mult-family applications the Town has been receiving in recent years.

With only two engineers in the PPW land use review team, the volume and size of applications through 2024 is not something staff can complete with their own resources; a fact that is exacerbated when paid leaves occur. The proposed change will keep the application fee and add a requirement for applicants to pay for third-party consultant review fees. The application fee will pay for staff time associated with processing the application; processing consultant agreements; coordinating comments between the consultant, the Community Development Department, and the applicant; and meeting with the applicant. At an average staff billing rate of $176.15 per hour, the

ITEM NO. 15.

PAGE 3 OF 3
SUBJECT: Fee Schedule for Fiscal Year 2024-25
DATE: February 13, 2025
$4,950 fee covers 28 hours of staff time, which is the minimum amount of staff time spent reviewing large planning applications.

4. Building Permit Application - Consultant Plan Review and Inspection Services - 10+ units (page 30) – Provides the authority for staff to require applicants of large building permit projects to pay for consulting costs associated with review of the application at the time the application is made. At present PPW does not charge a fee for the review of building permit applications. This change will allow PPW to use third-party consultants to review larger multi-family building permit applications. In the future, following a more detailed study, PPW may seek the charge staff time associated with this review.

CONCLUSION:

For the reasons stated in this report, staff recommends that the Town Council adopt a resolution amending the Comprehensive Fee Schedule for Fiscal Year 2024-25 amending certain fees, rates, and charges for Fiscal Year 2024-25.

FISCAL IMPACT:

The proposed Encroachment Permit, Entitlement Application, and Building Permit fees have no fiscal impact on this action, as costs for the Engineering consulting services for Pass-Through Accounts (program 5999) are paid by applicants of development proposals. The proposed Sidewalk Vendor Permit application fee will provide for cost recovery of administrative costs.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachment:

1. Resolution approving Comprehensive Fee Schedule FY 2024-25, including Exhibit A Proposed FY 2024-25 Comprehensive Fee Schedule – (Redline)

ITEM NO. 15.
1 of 2
Draft Resolution Date

DRAFT RESOLUTION

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS

CONTINUING DEPARTMENT FEES, RATES, AND CHARGES, AND
AMENDING CERTAIN FEES FOR SERVICE FOR FY 2024-25

WHEREAS, The Town of Los Gatos follows best municipal financial practices that require the Town to establish and maintain all user charges and fees based on the cost of providing services; and
WHEREAS, the last update of the Town of Los Gatos Comprehensive Fee Schedule was adopted on April 2, 2024; and
WHEREAS, those fees currently in effect will remain in effect without interruption, certain of these shall be increased, and certain new services shall have fees; and WHEREAS, in accordance with Government Code Section 66018, information regarding the proposed changes to the fees for service and facilities fees was made available to the public in the Office of the Town Clerk; and
WHEREAS, these fee changes to provide for cost recovery are not a project subject to CEQA.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE:

1. That Resolution 2024-013, “Resolution of the Town Council of the Town of Los Gatos Continuing Department Fees, Rates, and Charges, and Amending Certain Fees, Rates, and Charges for FY 2024/25” is hereby rescinded; and

2. The Town of Los Gatos Comprehensive Fee Schedule, attached hereto as Exhibit A, is adopted and shall become effective February 18, 2025.

ATTACHMENT 1

ITEM NO. 15.
2 of 2
Draft Resolution Date
PASSED AND ADOPTED at a regular meeting of the Town Council held on the _____ day of _______, 2025 by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA

ITEM NO. 15.

T O W N O F L O S G A T O S

C A L I F O R N I A

COMPREHENSIVE FEE

SCHEDULE (REDLINED)
FISCAL YEAR 2024-25

ITEM NO. 15.

Cover Photos: Ken Benjamin, Scott Anderson, and Evie Julian

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule

TOWN OF LOS GATOS FEE SCHEDULE
The following Fee Schedule is effective July 1, 2024 through June 30, 2025, unless updated by the Town Council. The Fee Schedule will be adjusted annually by the average Consumer Price Index (Bureau of Labor Statistics, U.S. Department of Labor for the San Francisco/Oakland/San Jose Metropolitan Statistical Area) for the calendar year and/or by the percentage increase in actual operating costs for the current year – whichever is greater. For FY 2024-2025, the fees are adjusted by 3.5% CPI. This Fee Schedule also provides for minimum annual adjustments for those fees that are directly related to personnel costs. Other adjustments may be made to maintain consistency with the surrounding municipalities within the Town of Los Gatos region but in no case are fees charged in excess of service delivery costs.

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule

TABLE OF CONTENTS
Administrative Services......................................................................................................... 1 Attorney Services.................................................................................................................. 4 Development Services
General Development Fees ............................................................................................................ 5 Building Division Fees ..................................................................................................................... 7 Building Permit Fees....................................................................................................................... 7 Electrical Permit Fees.................................................................................................................... 10 Mechanical Permit Fees................................................................................................................ 12 Plumbing Permit Fees................................................................................................................... 13 Other Fees..................................................................................................................................... 14 Planning Division Fees......................................................................................................……………16 Zoning Approvals .......................................................................................................................... 17 Subdivisions .................................................................................................................................. 20 Miscellaneous Application Fees.................................................................................................... 21 Environmental Assessment Fees.................................................................................................. 21 Other Fees..................................................................................................................................... 23 Engineering Division Fees............................................................................................................. 25 Library Services ................................................................................................................... 31 Parks and Public Works Services
Parks Division Fees........................................................................................................................ 32 Oak Meadow Park Fees ................................................................................................................ 32 Creekside Sports Park Fees........................................................................................................... 33 Belgatos, Blossom Hill, La Rinconada, and Live Oak Manor Park Fees......................................... 34 Turf Maintenance Fee................................................................................................................... 34 Tree Related Fees.......................................................................................................................... 34 Equipment Hourly Rates............................................................................................................... 35 Street Division Fees....................................................................................................................... 35 Police Services..................................................................................................................... 37 Parking Permit Fees...................................................................................................................... 38

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 1

ADMINISTRATIVE SERVICES
Civic Center Facilities Use
Town approved non-profit fundraising activities are allowed in/on Civic Center facilities with an appropriate permit, or license issued by the Town, or provided in an agreement or Conditional Use Permit with the Town. Private events are not allowed, including in the Council Chambers, with the exception of approved events hosted by the tenants of 106 and 108 East Main Street as stated in tenant lease agreements. Large scale special events may be required to provide a deposit prior to the event. The available Town facilities at the Civic Center are listed below:
• Civic Center Lawn, Deck and Stairs
• Civic Center West Patio
• Council Chambers
• Council Chambers Lobby (as a stand-alone facility)
Copy and Printing Charges
Special Events
1 Fee for Town Hall Facilities Use Non Profit: $0.00 per hour For Profit: $55.00 per hour
2 Building Attendant $20.00 per hour
3 Copy of Town Code Actual Cost
4 8 1/2 x 11 and 8 1/2 x 14 $.25 per page
5 11 x 17 $.35 per page
6 Oversized or Large Productions Actual Cost
7 Annual Subscription for Town Code Supplements Actual Cost 8 Copying of Zoning Ordinance Actual Cost
9 Annual Subscription for Zoning Ordinance
Supplements Actual Cost
10 Certification of Town Records $2.00
11 Annual Financial Report Actual Cost
12 Annual Budget Actual Cost
13 Capital Improvement Plan Actual Cost
14 Special Event Application Fee, For-Profit New Event $910.00 Repeat Event $680.00
15 Special Event Application Fee, Not-For Profit New Event $227.00 Repeat Event $170.00
16 Special Event Road Closure Review Fee $225.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 2

ADMINISTRATIVE SERVICES
Special Events (continued)
Business License
Other Services
17 Special Event N. Santa Cruz Avenue Road Closure Fee Actual Cost 18 Block Party Permit $55.00
19 Temporary Encroachment Permit $173.00
20 Police Officer $251.55 per hour
21 Lead Parks and Public Works Maintenance Worker $130.17 per hour 22 Parks and Public Works Maintenance Worker $108.55 per hour 23 Anti-Vehicle Barrier, Special Event Road Closure Actual Cost 24 Temporary No Parking Signs $1.00
25 Temporary Alcohol Restricted Signs $1.00
26 Temporary Banner Permit $105.00
27 Use of the Civic Center lawn, deck and stairs for
approved special events coordinated by a for-profit
organization
$55 per hour
28 Use of Town Plaza Park for approved special events $55 per hour 29 Facility Deposit $500
30 Street Pole Banner Program $220 per banner (includes install and removal)
31 Business License Processing Fee - New Out of Town $20.00 In Town $40.00
32 Business License Processing Fee - Renewal Out of Town and In Town $30.00 33 Compact Disk or Tape of Council and Planning
Commission Meetings (plus actual mailing costs, if
applicable)
$20.00 per DVD for meetings under 2
hours
$30.00 per DVD for meetings over 3
hours
34 Copy - Digital $10 per device
35 Initial Returned Check Fee $25.00
36 Subsequent Return Check Fees [CA Civil Code Section
1719(a) (1)] $35.00
37 Election Filing Fee $25.00
38 Town Credit Card Processing Fee 2.40%

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 3

ADMINISTRATIVE SERVICES
Other Services
Credit and Debit Card Processing

2.9% of transaction amout, minimum
of $2.00
ACH/eCheck $1.25 per transaction
Returned Payments/NSF $25.00
40 Third Party Vendor Parking Citations and Permits
Electronic Payment Processing Fee $3.95
41 Request for Service Not Covered by any Other Fee Fully allocated hourly rates for all personnel
42 Initiative/Referendum Petition Filings Fee $200.00
39 Third Party Vendor Business License Electronic
Payment Processing Fees

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 4

ATTORNEY SERVICES
1 Conditions, Covenants & Restrictions (CC&R) Review
and Approval
Fully allocated hourly rates for all
personnel
2 Simple Covenant/Deed Restriction Fully allocated hourly rates for all personnel
3 Subdivision Improvement Agreements Fully allocated hourly rates for all personnel
4 Encroachment Agreements Fully allocated hourly rates for all personnel
5 Miscellaneous (Legal Agreements, Real Property, etc.) Fully allocated hourly rates for all personnel

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 5

DEVELOPMENT SERVICES
General Development Fees
Reports, Agendas, and Minutes
1 Reproduction (sent out) plus actual mailing costs, as applicable. Maps, plans, etc. (larger than 11" x 17")
Actual Cost - sent to San Jose
Blueprint
2 Data Duplication service and fee for partial or full
copies of each digital standard Town data file on onetime request basis. 8 1/2" x 11" copy, standard i
$.25 per page
3 Document Storage Fee - Laserfiche Actual Cost
4 Duplicate Plans Set $154.00/hr. (1/2 hr. minimum)
5 Research Records Charge for Staff Research beyond
30 minutes
Fully allocated hourly rate for all
personnel
6 Address Processing Fee - per address $190.00
7 Computer Surcharge on all
Building/Plumbing/Mechanical/Electrical/Grading/En
croachment/Planning Permits/Applications and any
other Permits/ Applications except Park
Permit/Applications
4% of development application fee
8 Engineering Development Review Service Fee -
Building Permit and Building Plan Check*
5% of permit or plan check
9 Request for Service Not Covered by Any Other Fee Actual Cost 10 Pre-application Conference Fee Courtesy meeting
11 Applications for Work Unlawfully Completed Double current application fee 12 BMP Document Processing Fee $686.00
13 Public Art In-Lieu Fee 1% of building permit valuation *These fees are applied to permits or plan checks that require engineering services. 14 Development Review Committee Agendas $37.00
15 Planning Commission Agendas $25.00
16 Planning Commission Minutes Actual Cost
17 Plan Copies - microfiche or other reprints sent to an outside firm
$31.00 plus costs
18 Plan Copies - blueprint reproduction in house $3.00 per page 19 Copy of Subdivision Ordinance $26.00
20 General Plan (including maps) $26.00
21 Hillside Specific Plan $5.80
22 Hillside Development Standards and Design
Guidelines
$19.45

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 6

DEVELOPMENT SERVICES
Reports, Agendas, and Minutes (continued)
Landscape
Final occupancy clearance (new construction or remodel) Basis:

Development Review Committee Meetings – 1.5 hrs. (estimate) Site Visits – 4.0 hrs. (estimate)
Review Plan – 4.0 hrs. (estimate)
*Note: Time spent over and above the initial application fee will be billed at the current employee billing rate plus equipment hourly rate.

Annexation Fees
Any remaining deposit will be refunded to the applicant and amounts exceeding the deposit amount will be paid by applicant.
23 Commercial Design Guidelines $20.50
24 Subdivision Ordinance $26.00
25 General Plan/Zoning Maps (24" x 36") - Black & White $9.00 26 General Plan/Zoning Maps (24" x 36") - Color $42.00
27 Blossom Hill Open Space Study $14.00
28 Commercial Specific Plan Report $12.00
29 Residential Design Guidelines $21.50
30 Housing Element Technical Appendix $24.75
31 2015-2023 Housing Element $39.00
32 Los Gatos Boulevard Plan $9.50
33 North Forty Specific Plan (adopted June 2015) $45.25 34 Park Staff Time Spent for Major Development
Applications
$543.00*
35 1 Lot $3,590.00
36 2 Lots $1,795.00
37 3 Lots $1,199.00
38 4 Lots $900.00
39 5 Lot or more $715.00
*Annexation Advertising Deposit (varies as to size of map) - $1,000.00 to $2,200.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 7

DEVELOPMENT SERVICES
Seismic Hazards Mapping Program Fee (SMIP)
For residential construction of three stories and less (Category 1), the permit fee is $13.00 per $100,000. For all other construction (Category 2), the permit fee is $28.00 per $100,000. This fee is required by the State of California to identify and map zones of particular seismic hazards.

Five percent of the fee is retained by the Town to be used solely for earthquake preparedness.

Capital Improvement Tax (Construction)
Based on $0.18 for each square foot of building addition or alteration, which increases floor area of an existing building.

Underground Utility Tax (Utilities)
Based on $0.18 for each square foot of building addition or alteration, which increases floor area of existing building.

Park Fund Tax (Parks)
Based on $0.04 for each square foot of building addition or alteration, which increases floor area of an existing building.

Building Division
Building Permit Fees
Building Permit Fees for New Construction and Addition
The fee for each building permit shall be based upon the 1997 Uniform Building Code as amended by the 2010 California Building Code.

A building valuation regional modifier of 2.32 shall be used in conjunction with the Building Valuation Data provided in the publication, Building Valuation Data, published by the International Code Council – February 2012. Hillside Homes shall use a modifier of 3.246 and Commercial Office Tenant Improvements shall use a modifier of 1.16. The Building Valuation Data will be increased yearly by the Engineering News Record (ENR) Annual Building Cost Index (BCI) for every year thereafter.
40 Fee for issuing/reinstating a Building Permit $65.00 41 Additional Building Permit Fee $36.00
42 Demolition Permit Residential: $317.00
Commercial: $554.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 8

DEVELOPMENT SERVICES
Building Permit Fees for New Construction and Addition
Total Valuation Fee
43 $1.00 to $500.00 $39.00
44 $501.00 to $2,000.00 $39.00 for the first $500.00 plus $5.10 for each additional $100.00 or
fraction thereof, to and including
$2,000.00
45 $2,001.00 to $25,000.00 $116.00 for the first $2,000.00 plus $23.44 for each additional $1,000.00
or fraction thereof, to and including
$25,000.00
46 $25,001.00 to $50,000.00 $655.00 for the first $25,000.00 plus $16.91 for each additional $1,000.00
or fraction thereof, to and including
$50,000.00
47 $50,001.00 to $100,000.00 $1,077.00 for the first $50,000.00 plus $11.73 for each additional
$1,000.00 or fraction thereof, to and
including $100,000.00
48 $100,001.00 to $500,000.00 $1,664.00 for the first $100,000.00 plus $9.37 for each additional
$1,000.00 or fraction thereof, to and
including $500,000.00
49 $500,001.00 to $1,000,000.00 $5,414.00 for the first $500,000.00 plus $7.95 for each additional
$1,000.00 or fraction thereof, to and
including $1,000,000.00
50 $1,000,001.00 and over $9,391.00 for the first $1,000,000.00 plus $5.27 for each additional
$1,000.00 or fraction thereof

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 9

DEVELOPMENT SERVICES
Building Permit Fees for Remodels, Alterations, and Repairs The Building Official shall establish the valuation of said improvements, and fees will be assessed as per Valuation Schedule above.

Special Services & Inspections
Plan Review Fee
A plan review fee shall be charged at the time of filing application. This fee is separate from and shall be in addition to the building permit fee. This fee is calculated at sixty-five percent (65%) of the building permit fee as per the valuation schedule starting on page 6.

Other Miscellaneous Factors to Determine Construction Valuation 51 Inspection outside normal business hours (4 hr.
minimum)
$229.00/hr.
52 Re-inspection fees $190.00/hr.
53 Inspections for which no fee is specifically indicated (2 hr. minimum)
$190.00/hr.
54 Additional plan review required by changes, additions or revisions to plans (1 hr. minimum)
$181.00/hr.
55 For use of outside consultants for plan checking
and/or inspections Actual Cost
56 Services for which no fee is specifically indicated (1/2 hr. minimum)
$190.00/hr.
57 Permit/Plan check time extension (per permit)
(applies to permits that have not expired)
$93.00
58 Express plan review or initial review (1 hr. minimum) $190.00/hr. 59 Application for the Appeals Building Board Review $325.00 60 Temporary Certificate of Occupancy $1,306.00
61 Convert Garage to habitable space $140.00/sq.ft.
62 Convert unfinished basement or attic to habitable $151.00/sq.ft. 63 Pools/Spas (gunite) $90.00/sq.ft.
64 Siding - aluminum/vinyl/wood $38.00/sq.ft.
65 Antennas & Towers Const.Value As Applied under
valuation schedule on page 6
66 Commercial Awning or Canopy Aluminum $38.00/sq.ft.

Canvas $28.00/sq.ft.

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 10

DEVELOPMENT SERVICES
Other Miscellaneous Factors to Determine Construction Valuation (continued) Special Systems Fees
Electrical Permit Fees
Plan Review & Re-inspection Fees
67 Fence or Freestanding Wall (over 6" high) Wood or metal $59.00/sq.ft.

Masonry $101.00/sq.ft.
68 Decks/Balcony $56.00/sq.ft.
69 Wood Deck $24.00/sq.ft.
70 Re-roofs $3.37/sq.ft.
71 Retaining Walls $127.00/sq.ft.
72 Emergency generation, wind power, special HVAC
systems, etc.

Plan Review (1 hr. minimum)
$181.00/hr.

Field Inspection (2 hr. minimum)
$190.00/hr.
73 Photovoltaic - Roof & Ground Mounted - Residential Plan Review (1/4 hr. minimum) $181.00/hr.

Field Inspection (1 hr. minimum)
$190.00/hr.
74 Photovoltaic - Roof & Ground Mounted - Commercial Plan Review (1 hr. minimum) $181.00/hr.

Field Inspection (2 hr. minimum)
$190.00/hr.
75 Fee for issuing/reinstating an Electrical Permit $65.00 76 Additional Electrical Permit Fee $29.00
77 New Residential Construction (new buildings only,
including garages)
$.12 sq. ft
78 Commercial Construction $.09 sq. ft
79 Plan review fee 25% of Electrical Permit Fee
80 Additional plan review $181.00/hr.
81 Re-inspection fee $190.00/hr.

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 11

DEVELOPMENT SERVICES
System Fee Schedule
For alterations to existing pools, use Unit Fee Schedule fees listed on page 10.

Unit Fee Schedule
82 Private swimming pools $76.00
83 Public swimming pools $137.00
84 Temporary power poles $93.00
85 Temporary distribution system & temporary lighting $46.00 86 Installation of illuminated signs (each) $120.00
87 Receptacle, switch and lights $2.26
88 Residential appliances/new circuits (cook top, oven, range, disposals, clothes dryers, or other motor
operated appliances not exceeding one horsepower)
$7.25
89 Nonresidential appliances/new circuits (medical &
dental devices, food, beverage, drinking fountains,
laundry machines, or other similar equipment) NOTE:
for other types of air conditioners and other motordriven appliances having larger electrical ratings, see Generators/Motors
$9.32
90 Photovoltaic system (residential) $90.00
91 Solar systems (including controls) $90.00
92 Power apparatus (generators, transformers, A/C, heat pumps, baking equipment)
Up to 10 KV, each $19.00
Over 10 KV not over 50 KV, each
$38.00
Over 50 KV and not over 100 KV, each
$76.00
Over 100 KV, each $100.00
93 Motors Up to 10 hp $19.00
Up to 25 hp $38.00
Up to 55 hp $76.00
Over 55 hp $110.00
94 Transformers Up to 5 KVA $19.00
Up to 10 KVA $38.00
Up to 50 KVA $63.00
Over 50 KVA $92.00
95 Busways/conduits (per 100 ft) $9.32

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 12

DEVELOPMENT SERVICES
Unit Fee Schedule (continued)
Other Electrical Fees
Mechanical Permit Fees
Plan Review & Re-inspection Fees
Unit Fee Schedule
96 Service equipment 200 amps or less $93.00
201 to 999 amps $128.00
Sub-panels $46.00
97 Installation of spas or saunas $46.00
98 Duplicate job card $29.00
99 Permit extension (applies to permits that have not
expired)
$93.00
100 Fee for issuing/reinstating a Mechanical Permit $65.00 101 Additional Mechanical Permit Fee $29.00
102 New Residential Construction (new buildings only,
including garages)
$.12 sq. ft
103 Commercial Construction $.09 sq. ft
104 Plan review fee 25% of Mechanical Permit Fee
105 Additional plan review $181.00/hr.
106 Re-inspection fee $190.00/hr.
107 Installation, of each heating system, A/C, boiler,
compressor or air handler
$46.00
108 Each duct repair or alteration $13.46
109 Each fireplace appliance $38.00
110 Each ventilating fan $13.46
111 Installation of separate flue or vents not included with the installation of an appliance
$13.46
112 Installation of each hood with mechanical exhaust Residential $38.00 Commercial $137.00
113 Each new or repair of gas piping system $84.00
114 Each additional gas outlet $27.00
115 Installation of evaporative cooler $38.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 13

DEVELOPMENT SERVICES
Other Mechanical Fees
Plumbing Permit Fees
Plan Review & Re-inspection Fees
System Fee Schedule
Unit Fee Schedule
116 Duplicate job card $29.00
117 Permit extension (applies to permits that have not
expired)
$93.00
118 Fee for issuing/reinstating a Plumbing Permit $65.00 119 Additional Plumbing Permit Fee $29.00
120 New Residential Construction (new buildings only,
including garages)
$.12 sq. ft
121 Commercial Construction $.09 sq. ft
122 Plan review fee 25% of Plumbing Permit Fee
123 Additional plan review $181.00/hr.
124 Re-inspection fee $190.00/hr.
125 Private swimming pools (including heater, water
piping, gas piping)
$110.00
126 Public swimming pools (including heater, water
piping, gas piping)
$165.00
127 Lawn sprinkler system on one meter $46.00
128 Each new or repair of gas piping system $84.00
129 Each drainage, sewer system $46.00
130 Radiant floor heating system $137.00
131 Each plumbing fixture or trap or set of fixtures on one trap
$13.46
132 Each sewer cleanout, backflow device $13.46
133 Each septic system abatement $137.00
134 Rainwater systems - per drain (inside building) $13.46 135 Each water heater, water softener $38.00
136 Each grease interceptor (750 gallon capacity) $93.00 137 Each grease trap (1-4 fixtures) $53.00
138 Residential water re-piping $137.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 14

DEVELOPMENT SERVICES
Unit Fee Schedule (continued)
Other Plumbing Fees
Other Building Fees
Building Fee Refunds
Request must be received within 1 year of original payment date. Subject to approval by the Chief Building Official.
• Building Permit - 80% provided no work or inspections have been completed; 0% if any work or inspections have been completed.
• Subtrade Permit - 80% provided no work or inspections have been completed; 0% if any work or inspections have been completed.
• PV Permits - 80% provided no work or inspections have been completed; 0% if any work or inspections have been completed.
• Building Plan Check - 80% if cancelled or withdrawn before any plan check review has begun.
• Microfilm/Laserfiche - 80% of actual cost minus refund request page. • Planning Plan Check - 0%
• Computer services (4%) - 0%
• Issuance Fee - 0%
• Credit Card processing fee - 0%
• Title 24 Fee - 0%
• Capital Improvement Tax - 100%
• Utility Tax - 100%
139 Each ejector/sump pump $46.00
140 Each vacuum breaker/hose bib $13.46
141 Each water piping system repair or replacement $28.00 142 Each additional gas outlet $28.00
143 Duplicate job card $29.00
144 Permit extension (applies to permits that have not
expired)
$93.00
145 Duplicate Inspection Card $36.00
146 NPDES Inspection Fee (Charged on all building
permits with the potential to generate non-point
source storm water runoff during construction)
$84.00
147 SB 1186 Accessibility Fee $4.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 15

DEVELOPMENT SERVICES
Building Fee Refunds (continued)
• Park Tax - 100%
• Storm Drain (ENG) - 100%
• Road Impact Basin - 100%
• Seismic Tax (SMIP) 5% - 100%
• Seismic Tax (SMIP) 95% - 100%
• General Plan Update - 100%
• NPDES - 80% provided no work or inspections have been completed; 0% if any work or inspections have been completed.
• Building Standards - 0%
• Itemized items - 100%
• Online permits such as water heaters, furnace, and electrical permits - 100% State of California Title 24 Part 2 Energy and Accessibility Code and Regulation Plan Review and Inspection Fees
A surcharge shall be added to the building permit fee for the cost to plan review and inspect for compliance with State of California Title 24 Regulations. This fee is calculated at fifteen percent (15%) of the building permit fee. This fee is applied whenever a plan review is assessed.

State of California Mandated Building Standards Fee – SB 1473 A surcharge shall be added to all building permits at the rate of four dollars ($4) per one hundred thousand dollars ($100,000) in valuation, with appropriate fractions thereof, but not less than one dollar ($1). These funds will be available to the California Building Standards Commission, the Department of Housing and Community Development, and the Office of the State Fire Marshall for expenditure in carrying out the provisions of the State Building Standards Law and provisions of State Housing Law that relate to building standards. Up to ten percent (10%) shall be retained for related administrative costs and for code enforcement education.

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 16

DEVELOPMENT SERVICES
Planning Division
The fees listed below constitute all fees imposed by the Planning Division. Certain types of applications must be reviewed / processed by other departments/agencies, which may impose separate fees. Applicants are advised that the fees for those services are not included in the Planning Department's fees. Where the term "actual cost" is used here, it shall mean:
materials, supplies (including any costs of noticing or publication), outside consultants, employee cost will be billed at the top step, plus benefits, plus overhead. The following fee schedule is established for applications filed pursuant to the Town Code. The fees are collected by the Community Development Department at the time the application is filed unless otherwise noted.
• Fees for Additional Processing - In the event additional processing services by the Town are required due to changes, modifications, additions, errors, omissions, or discrepancies caused by the applicant or his/her agents or representatives, the applicant shall pay an additional fee as determined by the Director of Community Development to cover the actual cost.
• Fees for Lack of Progress - If additional information is required by the Town for an application and the requested information is not submitted within 180 days, the applicant will be required to pay a fee of 10 percent of the current application fee at the time the requested information is submitted. Any re-submittal after one year will be processed as a new application, subject to new fees.
• Fees for Major Projects - If it is anticipated that the application processing costs of selected major projects will significantly exceed the following fees, the Director of Community Development may collect a deposit and charge actual time spent to process the applications based upon current hourly rates.
• Surcharges - All of the following applications are subject to the surcharge fees as set forth in General Development Services and in the Zoning Research section of Planning Division.

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 17

DEVELOPMENT SERVICES
Zoning Approvals - Architecture and Site Applications – Development Review Committee (DRC) Approval
Zoning Approvals – Architecture and Site Applications – Planning Commission Approval 148 New single family detached (HR and RC zones) $10,707.00 Engineering Development Review Service Fee $4,950.00
149 New non-custom single family detached (HR and RC
zones) per unit/model, as part of a Planned
Development**
$7,435.00
Engineering Development Review Service Fee $4,947.00
150 New single family or two family units $7,379.00
Engineering Development Review Service Fee $4,948.00
151 New single family or two family (any other zone) per unit/model new nonresidential or multiple family per
building as part of a Planned Development**
$5,272.00
Engineering Development Review Service Fee $4,952.00
152 Minor projects (a development proposal that does not significantly change the size, mass, appearance or
neighborhood impact of a structure, property or
parking lot i.e. minor grading permit)
$2,674.00
Engineering Development Review Service Fee $3,799.00
153 Supplemental fee DRC applications as determined
with fee #146 or minor residential development
applications or applications that are part of a Planned Development that require Planning Commission
approval
$3,778.00
Engineering Development Review Service Fee $1,380.00
154 New two family unit $11,254.00
Engineering Development Review Service Fee $4,950.00
155 New nonresidential (includes conceptual Planned
Development elevations and mixed use that includes
two or fewer buildings)
$12,917.00
Engineering Development Review Service Fee $4,950.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 18

DEVELOPMENT SERVICES
Zoning Approvals – Architecture and Site Applications – Planning Commission Approval (continued)
Conditional Use Permits
Rezoning (other than Planned Development)
156 New multiple family (includes conceptual Planned
Development elevations that include two or fewer
buildings)
$11,743.00
Engineering Development Review Service Fee $4,948.00
157 New multiple family, mixed use, or non residential
project with more than two buildings
Actual Cost and minimum $20,000
deposit
*Aside from the fees noted above, no additional Architecture and Site application fees will be assessed for projects that involve a historic structure or site. **Any changes proposed to model homes, nonresidential, or multiple family buildings, a supplemental fee shall be based on a time and materials basis to review the changes. 158 Conditional Use Permit (PC Approval) $7,574.00
Engineering Development Review Service Fee $1,611.00
159 Conditional Use Permit (when consolidated with
another application for new development)
$1,259.00
Engineering Development Review Service Fee $923.00
160 Conditional Use Permit (DRC Approval) $4,609.00
Engineering Development Review Service Fee $1,383.00
161 Applications that require Town Council Approval
(these fees supplement the above established fees)
$3,592.00
Engineering Development Review Service Fee $1,381.00
Transcription of Planning Commission
minutes - Actual cost and minimum
$500.00 deposit
162 Without General Plan or Specific Plan Amendment Actual Cost ($5,000.00 minimum) 163 With General Plan or Specific Plan Amendment Actual Cost ($7,000.00 minimum) 164 Transcription fee of Planning Commission minutes Actual Cost and minimum $500.00 deposit

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 19

DEVELOPMENT SERVICES
Planned Development
Planning Division Certificates of Use and Occupancy
Sign Application
Administrative Land Use Permit
165 Without General Plan or Specific Plan Amendment Actual Cost 166 Without General Plan or Specific Plan Amendment
(HR or RC Underlying Zone)
Actual Cost
167 With General Plan or Specific Plan Amendment Actual Cost 168 With General Plan or Specific Plan Amendment (HR or RC Underlying Zone)
Actual Cost
169 Town Council Modification to a Planned Development Actual Cost ($5,000.00 minimum) 170 DRC Modification to a Planned Development Actual Cost ($3,000.00 minimum) 171
172 Transcription fee of Planning Commission minutes Actual Cost and minimum $500.00 deposit
Publication costs for the planned development ordinance shall be paid by the applicant 173 Change of use $274.00
174 Change of occupancy (excluding change of proprietor of a continuing business enterprise)
$184.00
175 Use/occupancy clearance if Conditional Use Permit is required or occupancy of a new accessory dwelling
unit
No fee
176 New permanent sign $369.00
177 Temporary nonresidential sign $118.00
178 Change of face only $184.00
179 Sign program $2,474.00
180 Minor telecommunications facility (i.e. microcell,
8,021 lb. or equivalent)
$1,831.00
181 Major telecommunications facility which do not
require a Conditional Use Permit
$4,389.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 20

DEVELOPMENT SERVICES
Other Zoning Approvals Fees
Subdivisions
182 Variance $5,570.00
Engineering Development Review Service Fee $1,611.00
183 Minor Residential Development (see #151) $2,674.00
184 Agricultural Preserve Withdrawal $4,544.00
185 Hazardous Materials Storage Facility Application Fully allocated rate of all personnel, plus noticing fees
186 Home Occupation Permit $184.00
187 SB 330 Preliminary Application Actual Cost ($500 minimum deposit) 188 SB 35 Preliminary Application Actual Cost ($500 minimum deposit) 189 Two-Unit Housing Development $1,598.00
190 Urban Lot Split $1,598.00
191 Mobile Home Park Conversion Permit Fully allocated rate of all personnel with initial deposit of $5,000.00
192 General Plan/Town Code Amendments Fully allocated rate of all personnel with initial deposit of $5,000.00 plus
additional fees
193 Lot Line Adjustment (DRC Approval) $2,538.00
Engineering Development Review Service Fee $4,259.00
194 4 Lots or Less (DRC Approval) $10,226.00
Engineering Development Review Service Fee $4,723.00
195 4 Lots or Less (as part of a Planned Development)
(DRC Approval)
$4,223.00
Engineering Development Review Service Fee $4,952.00
196 5 Lots or More $11,520.00
Engineering Development Review Service Fee $6,100.00
197 5 Lots or More (as part of a Planned Development)
(DRC Approval)
$4,951.00
Engineering Development Review Service Fee $6,103.00
198 Vesting Tentative Map (VTM) Actual Cost plus $500.00 deposit and additional fees

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 21

DEVELOPMENT SERVICES
Subdivisions (continued)
Miscellaneous Application Fees
Environmental Assessment Fees
199 Lot Merger and Reversion to Acreage (DRC Approval) $1,258.00 Engineering Development Review Service Fee $4,258.00
200 Condominium $8,878.00
201 Condominium (as part of a Planned Development) $4,223.00 202 Certificate of Compliance (DRC Approval) $3,668.00
Engineering Development Review Service Fee $2,646.00
203 VTM applications that require Town Council approval, Subdivision and/or DRC applications that require
Planning Commission approval. This fee supplements
the above-established fees.
$3,368.00
204 Time Extensions to Approved Application 50% of current fee (excluding fees based on actual cost)
205 Modification to Approved Application 75% of current fee (excluding fees based on actual cost)
206 Conceptual Development Advisory Committee Review $2,966.00 Special Noticing - Actual Cost
(minimum $500.00 deposit)
207 Push Cart Permit Sidewalk Vending Permit $587.00
208 Auto Dealer Events Smaller Promotional Events $98.00 Large Promotional Events $478.00
209 News rack Permit Fee $465.00
210 Firearms Dealer Permit (Town Ordinance 2217 dated
6/17/2013)
Fully allocated hourly rate of all
personnel plus any necessary outside
costs and initial $2,000.00 deposit
211 Categorical Exemption No fee
212 Initial Study Deposit*** Fully allocated hourly rate of all personnel with initial $5,000.00
deposit

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 22

DEVELOPMENT SERVICES
Environmental Assessment Fees (continued)
Surcharges
Appeals
213 Draft Initial Study Review Fee (or actual cost if part of a Planned Development, General Plan and/or Town
Code Amendment
$3,322.00
Engineering Development Review Service Fee $2,303.00
214 Environmental Impact Report Consultant's fee
215 Draft EIR Review Fee Fully allocated hourly rate of all personnel plus any necessary outside
costs
216 Impact Monitoring Program (AB3180) Fully allocated hourly rate of all personnel plus any necessary outside
costs
***The $5,000 fee is a deposit only. The specific cost of the Initial Study and any required special studies shall be borne by the applicant. The deposit shall be increased before the Town will authorize work exceeding the amount on deposit. Any deposit balance will be refunded. 217 General Plan update surcharge .5% of building valuation for new construction and additions/10% of
zone change and subdivision fee
218 Advanced Planning projects 10% of application fee
219 Administrative Fee 10% of development application fees 220 Fee to appeal Planning Commission decision to Town
Council
Per Residential $523.00
Per Commercial, multi-family or
tentative map $2,102.00
221 Fee to remand applications from Town Council to
Planning Commission
Fully allocated hourly rate for all
personnel plus additional fees

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 23

DEVELOPMENT SERVICES
Appeals (continued)
Zoning Research
Other Planning Division Fees
222 Fee to appeal Director of Community Development,
Development Review
Committee, Historic Preservation Committee, or Santa
Clara County Fire Department Exception Request
(PRC 4290) decision to Planning Commission
Per Residential $264.00
Per Commercial $1,052.00
223 Tree appeals $107.00
224 Appeal transcription fee of Planning Commission
minutes (only applies to appeals from Planning
Commission to Town Council)
Actual Cost - minimum $500.00
deposit
225 Basic Zoning Letter $184.00
226 Legal non-conforming verification $775.00
227 Reconstruction of legal non-conforming structures
(Burndown Letter)
$329.00
228 Fence Height Exceptions $329.00
229 Peer/Technical Review - any remaining deposit will
be refunded to the applicant and amounts exceeding
the deposit amount will be paid by applicant
Fully allocated hourly rate of all
personnel plus any necessary outside
costs and initial $2,000.00 deposit
230 Fees For Additional Tech Review and/or DRC Review - DRC beyond three meetings, Planning Commission
hearing beyond two meetings, Town Council hearing
beyond one meeting
Fully allocated hourly rate of all
personnel involved plus additional
fees
231 Consultation Actual cost on an hourly basis
232 Research Services Minimum Charge Fully allocated hourly rate for all personnel with initial $200.00 deposit
233 Building Permit Plan Check Fee 20% of building fee
234 Below Market Price Housing Program In-Lieu Fee 6% of the building permit valuation for the entire project

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 24

DEVELOPMENT SERVICES
Other Planning Division Fees (continued)
Payment of Application Fees
All application fees are to be paid at the time the applications are submitted to the Community Development Department. If the applicant withdraws an application, which requires a hearing by the Planning Commission, prior to processing the application for the hearing, 40% of the paid application fee shall be refunded to the applicant at the discretion of the Director of Community Development. All other fees are non-refundable. 235 Outdoor Seating Permit Fully allocated hourly rate for all personnel with initial $1,000.00
deposit
236 Valet Parking Permit Fully allocated hourly rate for all personnel with initial $1,000.00
deposit
237 Parklet Program Fully allocated hourly rate for all personnel with initial $1,000.00
deposit
238 Shared Parking Permit Actual Cost ($1,000 deposit)

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 25

DEVELOPMENT SERVICES
Engineering Division
The following fees constitute a comprehensive listing of the various fees charged by the Engineering Program. Certain types of application/permits must be reviewed and/or processed by other Town departments or public agencies, which may charge separate fees. Applicants are advised that the fees for those services are not included in the Engineering Program's fees.

Where the term "actual cost (s)" is used here it shall mean: materials, supplies (including any costs of noticing or publication), outside consultants and employee cost, (including salary, benefits and overhead).

Engineering Plan Check Fee (Public Improvements & Grading Permits) * Inspection Fee (Public Improvements & Grading Permits)
239 Application Fee $585.00
240 Under $20,000.00 15.5% of valuation
241 $20,001.00 to $80,000.00 $3,697.00 plus 9% of valuation 242 Greater than $80,001.00 $10,137.00 plus 8.5% valuation 243 Each additional plan check beyond three reviews Fully allocated hourly rate for all personnel
* Work done at night or on weekends shall be charged the actual costs of staff 244 Under $20,000.00 7.5% of valuation
245 $20,001.00 to $80,000.00 $1,790.00 plus 6.5% of valuation 246 Greater than $80,001.00 $6,440.00 plus 4.0% of valuation

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 26

DEVELOPMENT SERVICES
Work In or Use of Public Right-of-Way *
NPDES
247 Encroachment Permit - Residential Work up to $4,000.00 - $363.00 Each additional $2,000.00 - $190.00
248 Encroachment Permit - Collector/Arterial Streets** Work up to $4,000.00 - $1,884.00 Each additional $2,000.00 - $411.00
Encroachment Permit - Consultant Plan Review and
Inspection Services for serial applications (10+ per year) or specialty applications
Consultant fee based on scope, plus
the base encroachment fee in the
Engineering Division Fees 247 and
248, depending on street type.
249 Outside contractor underground utility locating
surcharge (actual cost for outside contractor
inspection fee may change)
$95.00
250 Temporary Encroachment Permit $179.00
251 Dumpster Permit $179.00
252 Storage Permit $179.00***
* Work done at night or on weekends shall be charged the actual costs of staff ** Single-family residences located along collector and arterial streets to be charged the residential fees above
*** $500.00 refundable Storage Unit Removal Deposit, to cover cost of removal, if abandoned 253 Inspection Fee - Grading Permits Single Family Residential $870.00 Commercial or Multi Family
Residential $1,354.00
254 Inspection Fee - Encroachment Permits and Some
Storage Permits
Single Family Residential $239.00
Commercial or Multi Family
Residential $387.00
Plus $579.00 per LID facility
255 Inspection of Storm Water Treatment Measures $597.00 per facility 256 Annual Stormwater/Limited Impact Development (LID)
Permit
Per Visit and 1st facility inspection
$579.00
Every additional facility inspection
$190.00
257 C-3 Permit Hydrologic Calculation Consultant fee deposit of $3,750.00 plus 25% administrative fee

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 27

DEVELOPMENT SERVICES
Engineering Subdivision Map Checking
Traffic Impact Analysis or Parking Study
$3,404.00*
Certificate of Correction $1,000.00
plus 25% administrative fee
$4,764.00*
Certificate of Correction $1,000.00
plus 25% administrative fee
*Plus, initial $3,000 surveyor deposit. Additional deposit(s) of actual surveyor costs may be required for larger projects than 5 or more lots, additional map check review(s), or overall complexity of the map.
258 1-4 lots
259 5 or more lots
260 Development Review (staff traffic impact analysis or Parking Study)
Actual Cost
Consultant Report - Consultant Fee
261 Staff Review Fee $792.00 plus 10% of the traffic
consultant report cost
262 Site Distance Analysis $213.00 per review not to exceed two hours. Actual cost for staff time when
analysis exceeds two hours.
263 Traffic Impact Mitigation Fee $1,104.00 per new average daily trip generated

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 28

DEVELOPMENT SERVICES
Storm Drainage Fees
Street Improvement In-Lieu Fee
Other In-Lieu Fee
Hauling Permits
264 Development Projects Single family lots Section

24.60.035(b) (3): For subdivisions
with lots that exceed one acre, the
fee shall not exceed that of one acre
per lot $5,041.00/ac.

Multiple family dwelling units - initial
unit $5,041.00/ac.

Multiple family dwelling units - each
unit after initial (not to exceed
$5,205.00/ac.) $189.00
Commercial, industrial, hospitals,
churches, schools, and others
$6,304.00/ac.
265 Building/Grading Permits (Building, Structures, &
impervious areas)
New impervious surface area, per sq.
ft. $2.00/sq. ft.
266 Sidewalks $20.00/sq.ft.
267 Curb and Gutter $125.00/lf.
268 Trail Improvements $16.00/per sq. ft. or determined by Director
269 House Moving Fee $4,162.00*
270 Hauling (Overweight Vehicle) Permit Daily $16.00**
Annual $90.00
*Plus initial deposit of $5,000 for facilities damage
**The current State mandated fee is $16.00 for Hauling Permit. If the State fee changes, the Hauling Permit fee will change to reflect the same.

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 29

DEVELOPMENT SERVICES
Construction Activities Mitigation Fee (Ordinance 2189) 271 New Buildings and Additions Residential (per square foot added) $1.48/sq.ft.*
Non-residential (per square foot
added) $1.48/sq.ft.*
*These two fees are adjusted based on the Building Cost Index

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 30

DEVELOPMENT SERVICES
Other Engineering Fees
Other Engineering Fees
272 Engineering Reversion to Acreage $2,856.00 plus initial deposit of $2,500 for surveyor
273 Engineering Lot Merger $4,149.00 plus surveyor deposit 274 Engineering Lot Line Adjustments $4,149.00 plus surveyor deposit 275 Certificate of Compliance $4,149.00 plus surveyor deposit 276 Abandon Excess Public Right-of-Way or Public
Easement
$5,181.00 plus surveyor and
valuation consultant and planning
services
277 Geotechnical Peer Review Fees Consultant fee deposit of $3,000 plus 25% administrative fee. Larger
projects require an initial deposit of
$4,500 (plus 25% administrative fee)
to allow for a site visit by the
geotechnical peer review consultant.
278 Separate Instrument Dedication Fee (for dedication
via grant deeds and not maps)
$858.00 plus initial deposit of $2,500
for surveyor
279 Slurry Seal Fee $3.00/sq. yd.
280 Flood Review Fee Consultant Cost plus 25% Admin Fee 281 Miscellaneous Review Fee* Actual Cost (including staff and consultant time)
Entitlement Application - Consultant Plan Review –
10+ Units
Engineering Development Review
Service fees listed in the Planning
Division Fees (Fees 148-238), plus all
outside consultant costs, with
$10,000 initial deposit paid at time of
application.

Building Permit Application - Consultant Plan Review
and Inspection Services - 10+ units
All outside consultant costs, with
$10,000 initial deposit paid at time of
application.
*This fee will be implemented for services including, but not limited to, wet weather inspections, annual inspections, review of operations and maintenance reports, coordination with property owner(s) and/or homeowner associations, etc.

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 31

LIBRARYSERVICES
Lost or Damaged Items
In lieu of above, account holder may replace lost/damage item with new identical copy plus $2.00 processing fee.

Internet printing and copies
History Project Digital Image
1 Replacement of Adult book/AV item Cost of item plus $10.00 processing fee
2 Replacement of Teen/Children’s book/AV item Cost of item plus $5.00 processing fee
3 Replacement of Adult paperback Cost of item plus $5.00 processing fee
4 Replacement of magazine Cost of item plus $5.00 processing fee
5 Printing per page - Black and White Copies $0.15
6 Printing per page - Color Copies $0.25
7 Fair Use Fees (for personal use only) Free – Downloaded via History Website
8 Commercial Use Fees $25.00 per high resolution image

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 32

PARKS AND PUBLIC WORKS SERVICES
Parks Division
Oak Meadow Park – Picnic Areas (1 through 9 )
Other Oak Meadow Park Fees
Oak Meadow Park – Bandstand/Gazebo – Special Use Permit – Minimum two-hour reservation required
Belgatos, Blossom Hill, La Rinconada, and Live Oak Manor Resident $125.00 per site
Non-Resident $175.00 per site
Resident $250.00 per site
Non-Resident $350.00 per site
3 Park Reservation Cancellation Fee $25 per park reservation 2 Picnic Area Reservation Fee w/Jump House
1 Picnic Area Reservation Fee
Resident $125.00 per day
Non-Resident $175.00 per day
Resident $6.00 per vehicle
Non-Resident $6.00 per vehicle
6 Annual Parking Pass $95.00 per vehicle
7 Senior Annual Parking Pass $48.00 per vehicle (60 years or older) Resident $100.00
Non-Resident $125.00
8 Vehicle Escort Fee
4 Bocce Ball Court Fee
5 Parking Fee
9 Special Use Permit Application Administrative Fee $25 per application Resident $75.00 per hour
Non-Resident $130.00 per hour
Resident $125.00 per hour
Non-Resident $175.00 per hour
12 Deposit (refundable) $600.00
Resident $75.00 per hour
Non-Resident $130.00 per hour
10 Non-Profit Event
11 Public Event
13 Bandstand/Gazebo Lawn Fee Non-Profit/Public
Resident $125.00 per site
Non-Resident $175.00 per site
Resident $250.00 per site
Non-Resident $350.00 per site
16 Park Reservation Cancellation Fee $25 per park reservation 15 Picnic Area Reservation Fee w/Jump House
14 Picnic Area Reservation Fee

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 33

PARKS AND PUBLIC WORKS SERVICES
Oak Meadow Park – Special Use Permit – Single Use
Oak Meadow Park – Special Use Permit – Multi- Use Permit – Recreational/educational purposes only
Creekside Sports Park – Special Use Permit – Single Use Creekside Sports Park – Special Use Permit – Multi-Use – Recreational/educational purposes only
17 Special Use Permit Application Administrative Fee $25 per application Resident $35.00 per hour
Non-Resident $45.00 per hour
$200.00 attendees of 150-300
$500.00 attendees over 300
18 Permit Fee
19 Damage Deposit (refundable)
20 Special Use Permit Application Administrative Fee $25 per application Resident $25.00 per hour
Non-Resident $35.00 per hour
Resident $25.00 per hour
Non-Resident $35.00 per hour
$200.00 attendees of 150-300
$500.00 attendees over 300
23 Damage Deposit (refundable)
21 Non Profit
22 Additional Day
24 Special Use Permit Application Administrative Fee $25 per application Resident $45.00 per hour
Non-Resident $55.00 per hour
26 Damage Deposit (refundable) $600.00
25 Permit Fee
27 Special Use Permit Application Administrative Fee $25 per application Resident $35.00 per hour
Non-Resident $45.00 per hour
Resident $35.00 per hour
Non-Resident $45.00 per hour
30 Damage Deposit (refundable) $600.00
28 Non Profit
29 Additional Day

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 34

PARKS AND PUBLIC WORKS SERVICES
Belgatos, Blossom Hill, La Rinconada, and Live Oak Manor (Groups of 25+ and/or Jump House) Special Use Permit – Single Use Permit
Belgatos, Blossom Hill, La Rinconada, and Live Oak Manor (Groups of 25+ and/or Jump House) Special Use Permit – Multi-Use Permit – Recreational/educational purposes only Turf Maintenance Fee
Additional fee added to any Park Use, when a permit's scheduled activity or event will negatively impact the park turf, (locations including but not limited to Oak Meadow, Town Plaza, and Civic Center lawn areas). The fee amount is to be based upon best estimate of turf repair cost, as determined by the Director of Parks and Public Works and/or Maintenance Superintendent.

Tree Related Fees
31 Special Use Permit Application Administrative Fee $25 per application Resident $35.00 per hour
Non-Resident $45.00 per hour
$200.00 attendees of 150-300
$500.00 attendees over 300
33 Damage Deposit (refundable)
32 Permit Fee
34 Special Use Permit Application Administrative Fee $25 per application Resident $25.00 per hour
Non-Resident $35.00 per hour
Resident $25.00 per hour
Non-Resident $35.00 per hour
$200.00 attendees of 150-300
$500.00 attendees over 300
37 Damage Deposit (refundable)
35 Non Profit
36 Additional Day
24 Tree Removal Permit Application* One Tree $250.00
Additional Tree $125.00/each
If application is denied 50% refund
25 Illegal Tree Removal Administrative Fee $330.00
26 Replacement Trees - Town Forestry Fund Per Tree
Ordinance Section 29.10.0985
Tree cost for each 24”,36", and/or
48" box size will be the Market Price
plus the installation cost, determined
by the Director
*Fee will be waived if tree removal is done to implement or maintain Defensible Space.

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 35

PARKS AND PUBLIC WORKS SERVICES
Equipment Hourly Rates as Follows
Streets Division
Hazard and/or Debris Removal
27 Pick-up Truck $32.00
28 1 Ton Flatbed Truck $42.00
29 Utility Truck $57.00
30 Dump Truck (10 Wheel) $85.00
31 Dump Truck (Bobtail) $63.00
32 Paint Truck $85.00
33 Line Remover $26.00
34 Tractor Loader $63.00
35 Backhoe $85.00
36 Rubber-tired Loader $85.00
37 Roller $63.00
38 Van $37.00
39 Concrete Saw $32.00
40 Air Compressor $32.00
41 Arrowboard $32.00
42 Generator $26.00
43 Chainsaw $20.00
44 Blower $10.00
45 Paving Box $63.00
46 Rodder $63.00
47 High Pressure Sewer Cleaner $117.00
48 Brush Chipper $42.00
49 Chipper Truck $63.00
50 Aerial Unit $92.00
51 Street Sweeper $92.00
52 Forklift $42.00
53 Trailer $42.00
54 Message Board $10.81
55 Barricades $0.23
56 Cones $0.15
57 Portable Generators $28.04
58 Staff time spent to conduct hazard and or debris
removal caused by citizen negligence
Fully allocated hourly rate of all
personnel plus any outside costs

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 36

PARKS AND PUBLIC WORKS SERVICES
Special Events Fees
Electric Vehicle Charging Fee
59 Staff and equipment for special event requests Fully allocated hourly rate of all personnel
60 System Connection Fee $1.00
61 Hourly Charge - 1- 4 hours $1.00/hour
62 Hourly Charge - after 4 hours $5.00/hour

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 37

POLICESERVICES
Printing and Copying Charges
Photographs
Concealed Weapons
Tow Trucks
Massage Permit Fees
Fee covers staff time to process application, review pertinent documents and obtain all necessary approvals.

Special Events
Other Special Police Services – Pursuant to Agreement between Police Chief and Requestor. 1 8 1/2" x 11 and 8 1/2" x 14 $.25 per page
2 Copy - Digital $10.00 per device
3 For the first 3 $42.00
4 Each Additional $13.00
5 Permit Fee, DOJ Fee, and Admin Fee $100.00
6 Renewal Permit $25.00
7 Amended Permit $10.00
8 Tow Permit $95.00
9 Driver Permit $290.00
10 Massage Establishment Permit (initial and
subsequent renewals) (Ord 14.110.075)
$335.00
11 ABC Application No charge
12 No Parking Signs/Required Event Signage $1.00/each
13 Officer Staffing Fully allocated hourly rate of all
personnel
14 Bingo Permit $50.00

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 38

POLICESERVICES
Motion Picture/Television/Commerical Still Photo
Emergency Response Caused By
Alarm Fees
Citation issued for failure to display appropriate Permit or placard. Dismissal fee in lieu of full Bail Amount
Parking Permit Fees
Residential Parking Permit
15 For-Profit Groups (each) $1,609.00
16 Non-For-profit Groups (each) $579.00
17 DUI Emergency Accident Response (Government
Code Section 53155)
Actual costs incurred up to
$12,000.00
18 Second Response due to Disturbances At current billing rate 19 Commercial Alarm Registration Fee $95.00
20 Second False Alarm* $170.00
21 Third False Alarm* $170.00
22 Fourth False Alarm* $170.00
23 Fifth False Alarm* No response, no charge, at the
Chief’s discretion
*Within a six-month period within a calendar year
24 Handicap CVC22507.8/22500(1) $37.00
Vehicle 1: $52.00
Vehicle 2: $72.00
Vehicle 3: $92.00
Vehicle 4: $112.00
26 Visitor guest passes Two (2) complimentary with the
purchase of the primary permit
27 Special Event Permit -First permit (one day) $10.00
28 Special Event Permit -Each Additional (one day) $2.00 29 Lost permit replacement $37.00
30 Damaged permit or vehicle change (within calendar
year)
$18.00
25 Annual residential parking permit (Limit 4 per
residence)

ITEM NO. 15.

Town of Los Gatos FY 2024-2025 Comprehensive Fee Schedule 39

POLICESERVICES
Parking Permit Fees (continued)
Business Parking Permit
Construction Parking Permit
Other Police Fees
31 Standard Employee annual $0.00
32 Lost permit replacement $37.00
33 Damaged permit replacement (with return of permit) $18.00 34 One day parking permit per construction vehicle $32.00 35 Each additional day per vehicle $5.00
36 Subpoena Duces Tecum Per California Evidence Code Section 1563
37 Solicitor/Peddler's Permit (need to obtain
fingerprinting
$55.00
38 Taxicabs Permit $185.00 per business
39 Clearance Letter $25.00
40 Horse Drawn Vehicle Permit $270.00
41 Firearms Storage Fee $245.00 Admin Fee plus $1.00 per firearm per day for storage
42 Vehicle Release $235.00
43 Vehicle Repossession Release Fee (Government
Code Section 26751)
$15.00
44 Non-Los Gatos Cite Sign Off $27.00
45 Feral Cat Feeder/Trap Permit $42.00

ITEM NO. 15.

ITEM NO. 15.