PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Town Attorney, and Assistant Town Manager 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/20/2025
ITEM NO: 17
ADDENDUM
DATE: May 19, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Conduct a Public Hearing on the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year 2025-26 and on the Proposed Capital Improvement Program for FY 2025-26 – FY 2029-30
REMARKS:
After the publication of the Staff Report, staff identified an arithmetic discrepancy in the total expenditure reduction options presented. The report references $1.07 million in reductions; however, the actual total of the recommended options is $0.8 million. The difference is due to the inclusion of $255,000 in CalPERS pension benefit savings, which had already been reflected under a different category. As a result of this adjustment, the projected deficit increases from approximately $700,000 to $955,000. The staff recommendation with the revised figures is as follows:
Staff recommends that the Town Council accept the list of $810,000 in expenditure reductions for implementation in the 2025-26 proposed budget. The anticipated 2025-26 operational deficit will be reduced from $1.8 million to approximately $1.0 million, some of which will likely be improved throughout the year with additional reductions, efficiencies, and revenue options.
Attachment 8 contains Public Comment received before 11:00 a.m., Monday, May 19, 2025.
Attachments previously distributed with the Staff Report:
1. Finance Commission Identified Areas for Review in the Five-Year Forecast
2. Forecast History including the Updated Forecast
3. Budget Study Session – Deficit Reduction Staff Report
4. Budget Study Session – Capital Improvement Program Staff Report
5. Town of Los Gatos Donation Policy
6. Town of Los Gatos Donation Opportunities: FY 2025-26 PAGE 2 OF 2
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
7. Public Comment Received Before 11 a.m. on May 16, 2025 Attachment distributed with this Desk Item:
8. Public Comment Received Before 11 a.m. on May 19, 2025