Los Gatos City Council
June 2, 2026

ITEM NO. 7.

ICC-Certified Inspector of Record with extensive experience enforcing municipal and California Building Codes to ensure compliance and safety. Skilled in construction inspections, blueprint interpretation, and regulatory enforcement, with a strong ability to collaborate with contractors to achieve compliance. Holds multiple ICC certifications, including 81, 82, Combination, E1, M1, and P1. Adept at issuing Stop Work Orders, performing zoning compliance reviews, and guiding construction teams through code requirements. Committed to upholding safety standards and streamlining the inspection process for municipalities and private projects.

Construction Inspections
IOR Oversight
Code Compliance
Plan Review Support
Code Enforcement
Specialized Projects
Field Documentation
Project Coordination
Quality Assurance
Urban37, Inc.

Inspector of Record
Serving as the Inspector of Record (IOR) for the Larkspur Public Library & Community Center project, ensuring compliance with approved plans, California Building Codes, and regulatory standards. Provides onsite inspections, documentation, and coordination with project stakeholders to maintain safety and structural integrity.

Accomplishments:

City of Belmont
Building Inspector
Highly skilled Building Inspector responsible for ensuring compliance with California Building Codes, zoning regulations, and approved plans. Conducted thorough residential, commercial, and mixed-use inspections, verifying safety and structural integrity at every stage of construction. Collaborated with municipal departments to streamline enforcement and resolve compliance issues.

Accomplishments:

Conducts daily inspections to verify structural, electrical, mechanical, plumbing, and fire/life safety compliance throughout all construction phases.

Maintains detailed field reports and inspection logs, ensuring documentation meets jurisdictional and project-specific requirements.

Collaborates with project teams, including City officials, engineers, contractors, and design professionals, to proactively resolve compliance issues and facilitate project progress.

Performed comprehensive inspections for remodels, additions, and new single-family residences, verifying foundation, underground utilities, framing, shear nailing, rough electrical, plumbing, and mechanical systems through final occupancy.

Oversaw inspections for bio-med facilities, multi-story mixed-use developments, photovoltaic systems, and tenant improvements for restaurants, schools, and commercial properties.

Investigated complaints and worksite incidents, ensuring adherence to safety protocols and municipal codes while coordinating with fire prevention, planning, public works, code enforcement, and engineering departments as needed.

February 2025 - Present
May 2018 - December 2023

BUILDING INSPECTOR, INSPECTOR OF RECORD
[email protected]
Jeanne Mangerich

PROFESSIONAL EXPERIENCE

KEY COMPETENCIES

ITEM NO. 7.

City of Novato
Building Inspector
March 2017 - September 2018
Conducted inspections for major commercial and municipal projects in the City of Fremont, City of San Pablo, City of Hayward, Town of Tiburon, and Union City.

Provided full-scope inspection services for structural, electrical, mechanical, plumbing, and life safety systems across residential, commercial, and mixed-use developments.

Performed inspections at the Apple Campus construction site, verifying compliance with engineering specifications, structural integrity requirements, and safety protocols.

San Francisco State University
Bachelor of Arts in Geography

EDUCATION & CERTIFICATIONS
Municipal Building Inspector responsible for ensuring compliance with California Building Codes and local regulations across a wide range of residential construction and renovation projects.

Accomplishments:

Conducted inspections for HVAC systems, solar installations, kitchen and bath remodels, roofing, and accessibility and egress requirements in residential properties.

Verified compliance with structural, electrical, mechanical, and energy efficiency standards, ensuring safe and code-compliant construction.

Worked closely with contractors and homeowners, providing guidance on code requirements and necessary corrections to streamline project approvals.
4LEAF, Inc.

Building Inspector
January 2016 - January 2017
Contract Building Inspector providing inspection services for multiple jurisdictions, ensuring compliance with California Building Codes and municipal regulations. Gained valuable experience working on large-scale, high-profile projects, including the Apple Campus construction in Cupertino.

Accomplishments:

Certifications
Combination Inspector
Electrical Inspector
Mechanical Inspector
Plumbing Inspector
California Residential Building Inspector
California Commercial Building Inspector
Certificate of Achievement - Building Inspection Technology

ITEM NO. 7.

Municipal processes
Strategic planning
Client relationships
Permit applications and intake
Negotiations
Business development
Team leadership
Communication
Operations management
4LEAF, Inc.

Permitting Manager | 01/2022 - May 2024
Senior Project Coordinator | 12/2019 - 01/2022
Project Coordinator | 08/2017 - 12/2019
Intern | 05/2017 - 08/2017
Extensive experience managing a team of project coordinators, overseeing plan reviews, and handling special projects for municipal agencies. Excelled in training, performance evaluations, and communication with government personnel. Expertise includes creating client contracts, representing the firm at various conferences, and implementing operational improvements.

Accomplishments:

Urban37, Inc.

Municipal Operations Manager
Provides lead direction to technical and support staff and perform complex paraprofessional and technical work involved in the receipt, processing and review of building permit applications and in the issuing of building and related permits, and performs other related work as required.

Accomplishments:

Provides lead direction to the Permit Technicians by planning and assigning the workload of the unit, and distributing and reviewing work, while also performing the work of permit processing.

Provides training to both new, existing, and municipal staff to ensure effective service delivery to permit center customers.

Assists with the implementation of new permitting software systems and establishes standard operating procedures for the permitting process.

Oversaw the team of project coordinators (which included training, work assignments, performance evaluations, development, and disciplinary action) in HQ and satellite offices Managed hundreds of plan reviews, special projects, and assignments for municipal government agencies Assigned all reviews to a team of 30+ plans examiners
Communicated weekly with different levels of government personnel June 2024 - Present
May 2017 - June 2024

OPERATIONS MANAGER
Accomplished manager of municipal operations with a proven background in community development and project management. Demonstrates excellent technology skills, exceptional customer service, and a keen attention to detail. Highly organized with the ability to lead teams effectively and streamline operations to achieve departmental goals.
(925) 324-5272 | [email protected]
Caitlin Roeder

PROFESSIONAL EXPERIENCE

KEY COMPETENCIES

ITEM NO. 7.

Town of Danville
Clerical Assistant
Created contracts/proposals for potential new clientele Attended local/state/national conferences to create connections/enhanced the reputation of the firm Periodically acted as Counter Manager in municipal government agencies Implemented new tactics to improve day-to-day operations Worked in the Planning Division and developed strong problem-solving skills and adaptability. Adept at managing administrative tasks and contributing to efficient office operations through innovative solutions and keen attention to detail.

Accomplishments:

Assisted on clerical projects (specifically with the implementation of new software)
Redesigned mapping system for zoning purposes
May 2016 - September 2016
Sonoma State University
B.A., Criminology & Criminal Justice

EDUCATION & CERTIFICATIONS

ITEM NO. 7.

Dedicated and results-driven Code Enforcement Manager and Planning Technician with extensive experience in municipal code enforcement, planning, zoning compliance, and program development. Adept at training staff, managing enforcement operations, and ensuring adherence to local and state regulations.

Highly proficient in case management, permit compliance, and cross-departmental coordination to maintain public safety and community integrity. Served as a Code Enforcement professional in the following jurisdictions: Rohnert Park, Richmond, Sausalito, Pinole, Foster City, Santa Rosa, Vallejo, Mill Valley, Union City, Livermore, and Modesto.

Code Enforcement Program Dev.

Municipal & Zoning Compliance
Inspection & Investigations
Staff Supervision & Training
Community Relations & Outreach
Permit Review & Processing
Case Management
GIS Mapping & Data Analysis
Cross-Departmental Collaboration
4LEAF, Inc.

Code Enforcement Supervisor
Lead and mentored a team of code enforcement officers across multiple jurisdictions, ensuring effective enforcement strategies and regulatory compliance. Oversaw program development and implementation, working closely with municipal agencies to establish enforcement frameworks that uphold community standards and safety. Served as a key liaison between departments, promoting efficiency and consistency in enforcement efforts.

Develop and implement municipal code enforcement and planning strategies to ensure regulatory compliance and streamline processes.

Conduct site inspections, zoning evaluations, and permit reviews to support municipalities in land use planning and enforcement efforts.

Collaborate with city officials, planning departments, and legal teams to refine policies, resolve violations, and enhance public safety.

Provide training and mentorship to municipal staff on enforcement procedures, inspection protocols, and best practices.

Utilize GIS mapping and data analysis to assess zoning compliance, inform planning decisions, and improve case management.

Engage with the community through education programs, public meetings, and outreach initiatives to promote awareness of codes and regulations.

December 2023 - March 2025

CODE ENFORCEMENT MANAGER, PLANNING TECHNICIAN
(707) 695-5759 | [email protected]
JorDann Crawford

PROFESSIONAL EXPERIENCE
Urban37, Inc. March 2025 - Present
Code Enforcement Manager
Provide specialized consulting services to municipalities, assisting in the development and improvement of enforcement and planning policies. Conduct comprehensive reviews of land use regulations, zoning ordinances, and permit applications to support compliance efforts. Collaborate with city officials to refine best practices and streamline coordination between planning, building, and enforcement departments.

Accomplishments:

KEY COMPETENCIES

ITEM NO. 7.
4LEAF, Inc.

Code Enforcement Officer
Enforced municipal codes and zoning regulations through field inspections and investigations, addressing violations and ensuring corrective action. Engaged with property owners, businesses, and local agencies to resolve compliance issues while maintaining detailed case records. Contributed to legal proceedings by providing thorough documentation and expert testimony when necessary.

Accomplishments:

Conducted field inspections to investigate municipal code violations, zoning infractions, and permit issues.

Responded to public complaints regarding property maintenance, unauthorized construction, and illegal land use.

Issued Stop Work Orders for non-compliant construction and prepared Notices of Violation for property owners.

Performed re-inspections to verify compliance and assisted in abatement efforts when necessary.

Developed case reports with supporting photographic evidence and legal documentation for enforcement actions.

Assisted in counter services, guiding the public through permit applications and compliance processes.

August 2022 - December 2023
Certifications:

Property Maintenance & Housing Inspector – ICC
PC 832 Laws of Arrest – Santa Rosa Junior College
Code Enforcement Inspection Protocols – ICC
Bed Bug Enforcement – ICC
Lead Safety RRP Certification
Software Experience: TRAKiT, Accela, GoGov, RealQuest, GIS

CERTIFICATIONS & TECHNICAL SKILLS
Supervise and manage a team of 11 code enforcement officers across multiple jurisdictions.

Develop and implement enforcement procedures for municipalities lacking formal programs.

Provide advanced enforcement support, ensuring compliance with municipal, zoning, and state codes.

Train officers on inspection protocols, legal noticing, and research methodologies.

Facilitate professional development by guiding staff toward relevant certifications and specialized training.

Collaborate with local planning and building departments to streamline compliance efforts.

Accomplishments:

ITEM NO. 7.

Seasoned Case Management & Code Enforcement professional with 10+ years of experience supporting diverse communities through social services, housing programs, inspections, and behavioral health. Skilled in coordinating across departments and agencies, training staff, and managing high caseloads while ensuring compliance and client care. Adept at conflict resolution, process improvement, and building strong relationships with stakeholders. Committed to enhancing community safety, supporting vulnerable populations, and fostering collaborative, service-oriented environments.

Case Management
Conflict Resolution
Process Improvement
Code Enforcement
Client Advocacy
Crisis Intervention
Problem Solving
Multidisciplinary Collaboration
Bilingual Communication
Urban37, Inc.

Code Enforcement Officer
Conduct residential and commercial inspections to ensure compliance with municipal codes and ordinances. Partner with city staff and outside agencies to address violations, enhance public safety, and educate property owners on corrective measures. Balance fieldwork, case documentation, and customer service to support fair and consistent enforcement practices.

Accomplishments:
4LEAF, Inc.

Code Enforcement Officer
Provide residential and commercial inspections in support of municipal code enforcement, ensuring community safety and regulatory compliance. Specialize in the City of Modesto’s Rental Housing Safety Inspection Program, with a focus on protecting public welfare.

Accomplishments:

Performed inspections for building, housing, zoning, and nuisance violations, issuing correction notices and follow-up reports to maintain compliance.

Collaborated with planning, building, and public safety departments to resolve complex code enforcement cases efficiently.

Delivered clear communication to property owners and contractors, fostering voluntary compliance and reducing repeat violations.

Enforced compliance with municipal regulations and ordinances, promoting community safety.

Partnered with city departments to implement and monitor rental housing safety standards.

Balanced field inspections and office responsibilities to meet deadlines and maintain compliance reporting.

September 2025 - Present
October 2023 - September 2025

CODE ENFORCEMENT OFFICER
[email protected]
Leslie Mangskau

PROFESSIONAL EXPERIENCE

KEY COMPETENCIES

ITEM NO. 7.

Tracy Community Connections
Director of Case Management
February 2021 - September 2025
Heald College
A.A. in Criminal Justice

EDUCATION & CERTIFICATIONS
Led case management services for at-risk individuals and families, including housing navigation, healthcare coordination, and community partnerships. Oversaw staff training, outreach efforts, and event planning for non-profit programs.

Accomplishments:

Increased referral rates through strong client service and strategic partnerships.

Expanded outreach and service delivery to homeless populations through coordinated programs.

Developed and implemented individualized care plans in collaboration with hospitals, social workers, and mental health providers.

Languages
Spanish - Fluent

ITEM NO. 7.

Dedicated Community Development Representative with experience in front counter operations, permit processing, and administrative support within municipal and construction environments. Skilled in assisting with permit applications, coordinating with multiple departments, and providing exceptional customer service.

Adept at utilizing permitting software, supporting code enforcement efforts, and ensuring smooth office operations. Committed to facilitating efficient development processes and delivering high-quality service to both internal teams and the public.

Permit Processing
Front Counter Support
Problem Solving
Customer Service
Permitting Software
Municipal Administration
Records Management
Regulatory Compliance
Code Enforcement
Urban37, Inc.

Development Services Coordinator
Experienced Community Development Representative with a strong foundation in front counter operations, permit processing, and customer service within a municipal setting. Skilled in assisting with minor over-thecounter permits, navigating permitting software, and providing support to various departments to ensure efficient service delivery.

Accomplishments:

New Key Construction
Administrative Assistant
Provided administrative and permitting support to ensure the efficient operation of the construction office. Assisted with project coordination, permitting processes, and client communications to facilitate smooth operations.

Accomplishments:

Processed minor over-the-counter permits and effectively utilized iWORQ permitting software to track applications and approvals.

Provided code enforcement support, reviewing complaints, coordinating inspections, and ensuring compliance with municipal regulations.

Assisted the Planning Department with administrative tasks while acting as a key point of contact for inquiries, directing applicants to appropriate departments for streamlined service.

Assisted in preparing and submitting permit applications, coordinating with local jurisdictions to track approvals and ensure compliance with regulations.

Managed contractor and subcontractor documentation, ensuring all licenses, insurance, and permits were up to date for active projects.

Answered phone calls, scheduled meetings, and provided customer support to clients, vendors, and city officials regarding construction projects and permit status.

September 2024 - Present
September 2023 - September 2024

COMMUNITY DEVELOPMENT COORDINATOR
[email protected]
Casey Silveira

PROFESSIONAL EXPERIENCE

KEY COMPETENCIES

ITEM NO. 7.

Diablo Valley College
Associate of Arts, Communications

EDUCATION & CERTIFICATIONS
Moss Construction
Administrative Assistant
Provided administrative support to ensure the efficient operation of the construction office. Assisted with day-to-day tasks, coordinated communications, and maintained office organization to support project teams.

Accomplishments:

Answered phone calls, scheduled meetings, and assisted visitors, ensuring clear communication between clients, contractors, and project managers.

Retrieved and organized records, emails, meeting minutes, and other documents to support office operations and project documentation.

Responded to administrative inquiries and assisted with various office tasks as needed to maintain workflow efficiency.

December 2018 - September 2023

ITEM NO. 7.

With a B.A. degree in Planning for Sustainable Communities and experience as an Assistant Planner and Permit Technician, Brandi is passionate about making positive contributions to public sector municipalities.

She specializes in planning and building codes and processes. Proven multitasker and efficient communicator, adept in permit processing and has the demonstrated ability to manage high-volume tasks, ensuring seamless building and planning application processes.

Permit processing
Customer service
Computer software
Multi-tasking
Attention to detail
Problem solving
Team player
Communication
Administrative tasks
Urban37, Inc.

Assistant Planner
Supports the planning and development process by assisting with research, data analysis, and project management on municipal planning projects. Help prepare and review planning documents, conduct site inspections, and gather input from stakeholders. Key responsibilities include updating zoning maps, analyzing land use patterns, and assisting in the preparation of reports and presentations. Additional responsibilities include coordinating with various departments and ensuring that planning activities comply with regulatory standards and community needs.

Accomplishments:

Conduct research on land use, zoning regulations, and demographic data to support planning projects and decision-making.

Assist in preparing and reviewing planning documents, reports, and presentations for internal and external stakeholders.

Conduct site visits and inspections to assess land use, zoning compliance, and development proposals.

Update and maintain zoning maps, land use databases, and other planning records.

Collaborate with community members, developers, and government officials to gather input and provide information on planning initiatives.

Ensure that planning activities adhere to local, state, and federal regulations and standards.

Assist in the management and coordination of planning projects, including tracking progress and managing timelines.

Support public meetings and hearings by preparing materials and assisting with communication and outreach efforts.

Perform administrative duties such as organizing files, scheduling meetings, and handling correspondence related to planning activities.

June 2024 - Present

ASSISTANT PLANNER
(707) 338-6343 | [email protected]
Brandi Caulfield

PROFESSIONAL EXPERIENCE

KEY COMPETENCIES

ITEM NO. 7.

City of San Rafael
Permit Technician II
Worked in the Planning Division and developed strong problem-solving skills and adaptability. Adept at managing administrative tasks and contributing to efficient office operations through innovative solutions and keen attention to detail.

Accomplishments:

Reviewed planning and building permit applications and routed submittals to the appropriate department/ agency for processing.

Provided written and verbal information to the public regarding procedures pertaining to topics such as permits, building code requirements, zoning, application procedure, and current projects.

Plans examiner for the planning department for building permits.

Utilized a variety of software programs such as GIS, permit tracking software, digital archiving software, word processing, spreadsheets, and a majority of programs within Microsoft Office.

Developed strong relationships with contractors, architects, engineers, property owners ensuring smooth workflows throughout the permit process.

May 2023 - April 2024
Sonoma State University
B.A., Planning for Sustainable Communities

EDUCATION & CERTIFICATIONS
City of San Rafael
Planning Intern
Accomplishments:

Reviewed planning project applications and determined the project type and associated fees per City municipal code.

Performed plan review for small planning and building projects (ex. ADU, signage, and minor mechanical and electrical permit applications).

Assisted the public over the counter with project applications, answering phones, responded to the department’s building and planning email inbox.

Helped planners with project research, document archiving, public noticing, and communication with applicants.

October 2019 - May 2021
Santa Rose Junior College
A.A., Social and Behavioral Science

ITEM NO. 7.

Dedicated and detail-oriented professional with extensive experience as a Permit Technician. Skilled in facilitating efficient permit processing, ensuring compliance with building codes and municipal regulations, and providing exceptional customer service. Known for strong organizational skills, effective communication, and the ability to manage multiple responsibilities in fast-paced environments. Committed to supporting community development and safety through accurate permitting and proactive code enforcement.

Code Compliance
Regulatory Knowledge
Process Improvement
Customer Service
Community Engagement
Record Management
Permit Processing
Inspection & Investigation
Community Education
Urban37, Inc.

Senior Permit Technician
Highly skilled Permit Technician adept at managing the full lifecycle of permit processing, from application intake to issuance, while ensuring compliance with municipal and building regulations. Expert in providing guidance to applicants, streamlining processes, and maintaining accurate documentation to support efficient operations.

Accomplishments:

Monarch Consulting
Permit Technician/Code Enforcement Officer
Experienced Permit Technician and Code Enforcement Officer skilled in conducting inspections, investigating complaints, and ensuring compliance with zoning, building, and municipal codes.

Dedicated to fostering safe and compliant communities through proactive enforcement and education.

Accomplishments:

Processed and issued permits, ensuring compliance with all local and state building codes.

Developed and implemented a streamlined permit tracking system, reducing processing times.

Provided exceptional customer service by assisting contractors, homeowners, and developers with complex inquiries, resulting in consistently high satisfaction ratings.

Reviewed and processed a wide range of permit applications, ensuring compliance with local and state regulations.

Collaborated with community members and municipal staff to address and remediate recurring code issues, improving neighborhood compliance.

Supported diverse project types by ensuring accurate documentation and clear communication among stakeholders.

July 2024 - Present
March 2022 - July 2024

SENIOR PERMIT TECHNICIAN
[email protected]
Kimberly Sevilla

PROFESSIONAL EXPERIENCE

KEY COMPETENCIES

ITEM NO. 7.

University of San Francisco
San Francisco SFIEC

EDUCATION & CERTIFICATIONS

ITEM NO. 7.

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Intentionally
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ITEM NO. 7.

PREPARED BY: Ryan Baker
Library Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Administrative Services Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/02/2026
ITEM NO: 8
DATE: June 2, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize Revenue and Expenditure Budget Adjustments in the Amount of $1,540 to Recognize Receipt and Expenditure of Pacific Library Partnership Grant Funds
RECOMMENDATION: Authorize revenue and expenditure budget adjustments in the amount of $1,540 to recognize receipt and expenditure of Pacific Library Partnership grant funds.

FISCAL IMPACT:

Grant revenues totaling $1,540 will be recorded to account 1117801-43362 and be expended from account 1117801-61192 in Fiscal Year 2025-26. There is no impact on the General Fund.

Because this action increases both estimated revenues and expenditure appropriations in the adopted budget, Town Council approval is required.

STRATEGIC PRIORITY:

Not applicable.

BACKGROUND:

The Library has obtained a grant in the amount of $1,540 from the Pacific Library Partnership.

Grant funds will be used to purchase e-books. As the acceptance and use of the grant requires a budget adjustment to recognize the new revenue and corresponding expenditure authority, the item must be presented to the Town Council for approval.

ITEM NO. 8.

PAGE 2 OF 2
SUBJECT: Pacific Library Partnership Grant Funds
DATE: June 2, 2026
ENVIRONMENTAL ASSESSMENT:

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

ITEM NO. 8.

PREPARED BY: Name Kristina Alfaro
Administrative Services Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney, 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/02/2026
ITEM NO: 9
DATE: May 22, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Approve the Accounts Payable and Payroll Reports RECOMMENDATION: Approve the Accounts Payable Register and Payroll Report for May 15, 2026.

FISCAL IMPACT:

There is no fiscal impact with approving these reports. All payments that have been made are within approved budget appropriations.

STRATEGIC PRIORITY:

This initiative supports the Town’s 2025 to 2027 Strategic Priority to “ensure prudent financial management to result in structurally balanced five-year forecasts and fully funded five-year Capital Improvement Plans, managing liabilities such as pension costs and leveraging the Town’s assets, efficiencies, partnerships, and revenue streams.

BACKGROUND:

Per Town Manager direction, the Administrative Services staff reviewed both payroll and accounts payable reporting requirements and found the following:

Pursuant to Town Municipal Code section 2.30.020 (d) payroll warrants need not be audited by the Town Council prior to payment. Payrolls shall be presented to the Town Council for ratification and approval at the regular meeting after delivery of the payroll warrants.

The municipal code did not provide direction on accounts payable. However, Government Code Section 37208(c) provides the following guidance:

ITEM NO. 9.

PAGE 2 OF 2
SUBJECT: Accounts Payable and Payroll Register
DATE: June 2, 2026
37208. (a) Payroll warrants or checks need not be audited by the legislative body prior to payment. Payrolls shall be presented to the legislative body for ratification and approval at the first meeting after delivery of the payroll warrants or checks. (b) Warrants or checks drawn in payment of demands certified or approved by the city clerk as conforming to a budget approved by ordinance or resolution of the legislative body need not be audited by the legislative body prior to payment.
(c) Notwithstanding subdivisions (a) and (b), budgeted payrolls and demands paid by warrants or checks may be presented to the legislative body for ratification and approval in the form of an audited comprehensive annual financial report.

DISCUSSION:

Administrative Services staff will begin providing biweekly payroll reports to the Council on consent, as prescribed in the Municipal Code.

Although not specially required under Municipal Code or the Government Code, it is considered good practice to report on checks paid by a government agency. As such, staff will begin to provide accounts payable check registers, along with payroll reports, on a biweekly basis as part of the consent calendar for regular council meetings.

Accounts payable and payroll for the following periods have been audited and approved by staff for the following payments:

Type Check Date Amount
Accounts Payable May 15, 2026 $321,017.75
Payroll May 15, 2026 $950,150.00
CONCLUSION:

Consistent and timely financial reporting aligns with the Municipal Code and Government Code guidance ensuring that payroll and accounts payable activities are brought forward for Council review and ratification as required. This supports transparency in governmental operations and reinforces best practices in public financial management.

ENVIRONMENTAL ASSESSMENT:

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

ATTACHMENTS:

1. Accounts Payable Register for 5/15/2026

2. Payroll by Department for 5/15/2026

ITEM NO. 9.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 05-15-2026

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 162433 05/15/2026 4IMPRINT, INC. 14942227 IMPREZZA METAL PEN 1112201 61111 $ 5.16 162433 Total $ 5.16
162434 05/15/2026 AFSCME COUNCIL 57 108369 AFSCME DUES PPE 05/09/26 111 21263 $ 301.86 162434 Total $ 301.86
162435 05/15/2026 AIR SYSTEMS INC 961019579 APRIL CHILLER ANNUAL 6335423 63352 $ 3,579.00 162435 05/15/2026 AIR SYSTEMS INC 961019580 APRIL COOLING TOWER ANNUAL 6335423 63352 $ 1,718.00 162435 Total $ 5,297.00
162436 05/15/2026 AMAZON CAPITAL SERVICES INC 11P9367DKFFL SUPPLIES 1117101 61111 $ 305.44 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 13VQ7PNPLTPD SUPPLIES 1117202 61192 $ 224.54 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 19RDH1PRNKM1 SUPPLIES 6212502 61133 $ 187.30 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 1DD9G7FPW4YV SUPPLIES 2617301 62424 $ 195.63 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 1GHD1YH1KYWX SUPPLIES 1117201 61191 $ 176.74 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 1GYTXHMNDGG3 SUPPLIES 1117201 61191 $ 229.20 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 1K3Y99PTNQD4 SUPPLIES 1115201 61133 $ 341.70 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 1K3Y99PTNQD4-01 SUPPLIES 1115202 61133 $ 341.70 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 1QDFD3NVDP73 CREDIT MEMO 4118733 82405 $ (1,825.65) 162436 05/15/2026 AMAZON CAPITAL SERVICES INC 1VH7GPHYY3NP SUPPLIES 1115402 61265 $ 134.09 162436 Total $ 310.69
162437 05/15/2026 AMAZON CAPITAL SERVICES INC 17CWXCDGJQJV SUPPLIES 1114301 61168 $ 113.68 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 17VDN1NWP79H SUPPLIES 1114301 61168 $ 123.61 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 1CXHWCGDVNMV SUPPLIES 1114301 61168 $ 113.68 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 1KN4Y9KN67TC CREDIT MEMO 1114301 61168 $ (123.61) 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 1KWCX37QQMP4 SUPPLIES 1117101 61111 $ 106.46 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 1MWDNK6N7KH1 SUPPLIES 1117202 61192 $ 129.45 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 1R1J4PL3LKL3 SUPPLIES 1114201 61111 $ 120.84 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 1T6FDD9G7R3T SUPPLIES 1117204 61132 $ 82.24 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 1TN11YRCQDP3 SUPPLIES 1115401 61275 $ 134.02 162437 05/15/2026 AMAZON CAPITAL SERVICES INC 1VKL6XFHKJNL SUPPLIES 1117201 61191 $ 100.52 162437 Total $ 900.89
162438 05/15/2026 AMAZON CAPITAL SERVICES INC 11N6NPLT16D1 SUPPLIES 1117202 61192 $ 38.17 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 139WYY4XPLT6 SUPPLIES 2617301 62424 $ 64.15 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 161X7Q6PD6HJ SUPPLIES 1117201 61191 $ 68.82 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 19P193WQMDCJ SUPPLIES 1114201 61111 $ 71.39 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 1CNXWDCTTVD6 SUPPLIES 1114301 61168 $ 57.73 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 1FWJX66Y13QQ SUPPLIES 6335423 61214 $ 77.90 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 1N4WJPTXYRRY SUPPLIES 6335423 61214 $ 43.10 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 1TC6FDLMDTDY SUPPLIES 1117202 61192 $ 69.25 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 1Y1TK96LQHGM SUPPLIES 1117201 61191 $ 39.09 162438 05/15/2026 AMAZON CAPITAL SERVICES INC 1YPGWQTYD17D SUPPLIES 2617301 62424 $ 40.09 162438 Total $ 569.69
ATTACHMENT 1

ITEM NO. 9.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 05-15-2026
162439 05/15/2026 AMAZON CAPITAL SERVICES INC 116VTPCWHPCC SUPPLIES 1117202 61192 $ 29.65 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 17CWXCDGGCTR SUPPLIES 1117201 61191 $ 21.15 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 1JC6QGXW1FTG SUPPLIES 1117201 61191 $ 30.20 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 1JVKVJP7PKHX SUPPLIES 1117201 61191 $ 17.32 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 1MFH6LLMLLJC SUPPLIES 1117201 61191 $ 36.26 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 1R7VVF73VL1H CREDIT MEMO 1117101 61111 $ (21.96) 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 1RPC6GC1HVG4 SUPPLIES 1117202 61192 $ 30.98 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 1XMGW1FVK74V SUPPLIES 1117201 61191 $ 32.39 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 1YJHFWWRDPVP SUPPLIES 1117201 61191 $ 33.20 162439 05/15/2026 AMAZON CAPITAL SERVICES INC 1YPDRTT1DW1Y SUPPLIES 6335423 61214 $ 32.95 162439 Total $ 242.14
162440 05/15/2026 AMAZON CAPITAL SERVICES INC 1FYWN31QPHGC SUPPLIES 1112106 62434 $ 14.23 162440 Total $ 14.23
162441 05/15/2026 AT&T CALNET 3 000025187040 040126-043026 SERVICE 1114201 62622 $ 428.26 162441 Total $ 428.26
162442 05/15/2026 AT&T MOBILITY 18445X051026 040326-050226 SERVICE 1114301 62631 $ 2,662.57 162442 05/15/2026 AT&T MOBILITY 18445X051026 040326-050226 SERVICE 1114201 63332 $ 253.85 162442 05/15/2026 AT&T MOBILITY 18445X051026 040326-050226 SERVICE 1114201 62622 $ 896.28 162442 Total $ 3,812.70
162443 05/15/2026 BAN SERVICES COMPANY INC 260731 PEST CONTROL SERVICES 6335423 62376 $ 215.00 162443 Total $ 215.00
162444 05/15/2026 BKF ENGINEERS 26040965 022326-032926 SERVICES 4218510 82405 $ 2,680.86 162444 05/15/2026 BKF ENGINEERS 26040965 022326-032926 SERVICES 4118510 82405 $ 920.99 162444 Total $ 3,601.85
162445 05/15/2026 BLACKSTONE AUDIO INC 2232680 CDS 1117201 61191 $ 214.52 162445 Total $ 214.52
162446 05/15/2026 BURKE, WILLIAMS, SORENSEN LLP 365714 SERVICES THROUGH 033126 1111301 63215 $ 1,037.00 162446 Total $ 1,037.00
162447 05/15/2026 CAPITOL DEL GRANDE 4 INC 264631 AUTO PARTS 1115402 61265 $ 252.89 162447 05/15/2026 CAPITOL DEL GRANDE 4 INC 357665 VEHICLE PARTS/REPAIR 1115402 61265 $ 574.86 162447 05/15/2026 CAPITOL DEL GRANDE 4 INC 357665 VEHICLE PARTS/REPAIR 1115402 62378 $ 75.00 162447 Total $ 902.75
162448 05/15/2026 CESAR FERNANDEZ 051226 RE-UPHOLSTERY OF 8 CHAIRS AT THE LIBRARY 1117101 62307 $ 9,418.00 162448 Total $ 9,418.00
162449 05/15/2026 CLASSIC CAR WASH 0479 030226-041126 CAR WASHES 1114301 62392 $ 295.00 162449 Total $ 295.00
162450 05/15/2026 CLAUDIA Y MARTINEZ 04/22/26-04/23/26 PER DIEM REIMBURSEMENT-EXECUTIVE TRAINING SEMINAR 1114101 64111 $ 138.00 162450 Total $ 138.00
162451 05/15/2026 CORODATA RECORDS MANAGEMENT INRS3786584 040126-043026 SERVICE 1111201 62303 $ 155.32 162451 Total $ 155.32
162452 05/15/2026 CORODATA SHREDDING INC DN1579383 040726 SHREDDING 1114201 62378 $ 134.39

ITEM NO. 9.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 05-15-2026
162452 Total $ 134.39
162453 05/15/2026 COUNTY OF SANTA CLARA 2604300502 WORK ORDER 224702 1114201 62344 $ 178.00 162453 Total $ 178.00
162454 05/15/2026 CROWN CASTLE USA, INC. 51231073 MAY 2026 TOWER RENTAL 1114201 62522 $ 1,741.76 162454 Total $ 1,741.76
162455 05/15/2026 CSG CONSULTANTS, INC. 65885 022826-032726 SERVICE 1115999 68416 $ 1,177.50 162455 Total $ 1,177.50
162456 05/15/2026 CUMMINS INC Z1-260489136 SUPPLIES 1115402 61265 $ 505.47 162456 Total $ 505.47
162457 05/15/2026 DELL MARKETING LP 10869975778 DELL MOBILE PRECISION WORKSTATION 5690 1115201 61133 $ 1,077.71 162457 05/15/2026 DELL MARKETING LP 10869975778-01 DELL MOBILE PRECISION WORKSTATION 5690 1115202 61133 $ 1,077.70 162457 Total $ 2,155.41
162458 05/15/2026 DEMCO, INC. 7802570 SUPPLIES 1117101 61111 $ 202.18 162458 Total $ 202.18
162459 05/15/2026 DUDEK 202603661 022126-032726 SERVICE 1115401 63219 $ 14,196.55 162459 Total $ 14,196.55
162460 05/15/2026 ELEVATOR SERVICE CO, INC. 56228 031826 SERVICE CALL ELEV 159423 6335423 63353 $ 720.00 162460 05/15/2026 ELEVATOR SERVICE CO, INC. 56254 MAY 2026 LOS GATOS THEATRE 2515408 63353 $ 225.00 162460 05/15/2026 ELEVATOR SERVICE CO, INC. 56255 MAY 2026 SERVICE 6335423 63353 $ 955.00 162460 Total $ 1,900.00
162461 05/15/2026 EOA INC LS0313-0326 030126-033126 BILLING 1115999 68618 $ 524.50 162461 05/15/2026 EOA INC LS0317-0326 030126-033126 BILLING 1115999 68618 $ 705.50 162461 05/15/2026 EOA INC LS0319-0326 030126-033126 BILLING 1115999 68618 $ 857.50 162461 05/15/2026 EOA INC LS0321-0326 030126-033126 BILLING 1115999 68618 $ 211.00 162461 Total $ 2,298.50
162462 05/15/2026 FRANK AND GROSSMAN LANDSCAPE 40688 MAY 2026 SERVICES 6335423 63351 $ 15,875.00 162462 Total $ 15,875.00
162463 05/15/2026 FRONTIER CALIFORNIA INC 1970184MAY26 042226-052126 SERVICE 6212502 62614 $ 400.00 162463 05/15/2026 FRONTIER CALIFORNIA INC 3564957MAY26 050426-060326 SERVICE 1114201 62622 $ 124.87 162463 Total $ 524.87
162464 05/15/2026 FRONTIER CALIFORNIA INC 4369 JUNE 2026 BASE RENT 1111201 62521 $ 6,047.13 162464 Total $ 6,047.13
162465 05/15/2026 GLOBAL WATER TECHNOLOGY INC 188854 APRIL 2026 SERVICES 6335423 61219 $ 446.05 162465 Total $ 446.05
162466 05/15/2026 GOLDFARB & LIPMAN 493124 SERVICES THROUGH 033126 1111301 63215 $ 12,817.70 162466 Total $ 12,817.70
162467 05/15/2026 GOODYEAR AUTO SERVICE CENTER 0000106279 TIRES 1115402 61265 $ 1,080.11 162467 Total $ 1,080.11
162468 05/15/2026 GRAINGER 9888206779 SUPPLIES 1115401 61275 $ 299.71 162468 05/15/2026 GRAINGER 9890086268 SUPPLIES 1115401 61275 $ 211.51 162468 05/15/2026 GRAINGER 9894510685 CREDIT MEMO 1115401 61275 $ (176.84)

ITEM NO. 9.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 05-15-2026
162468 05/15/2026 GRAINGER 9895495415 SUPPLIES 1115402 61265 $ 204.93 162468 05/15/2026 GRAINGER 9897430394 SUPPLIES 1115402 61265 $ 166.66 162468 05/15/2026 GRAINGER 9898835591 SUPPLIES 6335423 61214 $ 59.18 162468 05/15/2026 GRAINGER 9899031778 SUPPLIES 1115402 61265 $ 724.87 162468 05/15/2026 GRAINGER 9900703894 SUPPLIES 1115402 61265 $ 21.96 162468 05/15/2026 GRAINGER 9901661992 SUPPLIES 1115402 61265 $ 466.77 162468 05/15/2026 GRAINGER 9901960212 SUPPLIES 6335423 61214 $ 758.60 162468 Total $ 2,737.35
162469 05/15/2026 GREGORIO BORROMEO 04/06/26-04/10/26MREIMB-AXON CONFERENCE EXPENSES 1114101 64211 $ 82.01 162469 Total $ 82.01
162470 05/15/2026 H A BOWEN ELECTRIC INC 66412 INSTALL NEW FORKLIFT CHARGER 6335423 63354 $ 2,416.20 162470 05/15/2026 H A BOWEN ELECTRIC INC 66413 ELECTRICAL SERVICES 6335423 63354 $ 609.00 162470 05/15/2026 H A BOWEN ELECTRIC INC 66414 ELECTRICAL SERVICES 6335423 63354 $ 1,599.66 162470 05/15/2026 H A BOWEN ELECTRIC INC 66415 ELECTRICAL SERVICES 6335423 63354 $ 1,635.81 162470 05/15/2026 H A BOWEN ELECTRIC INC 66416 ELECTRICAL SERVICES 6335423 63354 $ 679.81 162470 Total $ 6,940.48
162471 05/15/2026 HDL COREN & CONE SIN062624 APRIL-JUNE 2026 PROPERTY TAX MANAGEMENT & INFO 1111201 63219 $ 4,775.00 162471 Total $ 4,775.00
162472 05/15/2026 HOLDEN, WHITELAW & ASSOCIATES INC89487C 208 E MAIN STREET APPRAISAL REPORT 1111201 63218 $ 4,250.00 162472 05/15/2026 HOLDEN, WHITELAW & ASSOCIATES INC89488C 123 E MAIN STREET APPRAISAL REPORT 1111201 63218 $ 4,250.00 162472 Total $ 8,500.00
162473 05/15/2026 INTERSTATE TRAFFIC CONTROL PRODUC275867 SUPPLIES 1115401 61275 $ 274.78 162473 Total $ 274.78
162474 05/15/2026 ISRAEL R VELASQUEZ 04/06/26-04/10/26 MILEAGE-FTO SCHOOL 1114301 64211 $ 82.65 162474 05/15/2026 ISRAEL R VELASQUEZ 04/21/26-04/23/26MMILEAGE-MOTORCYCLE UPDATE 1114302 64211 $ 285.07 162474 Total $ 367.72
162475 05/15/2026 JOHNSON, ROBERTS, & ASSOCIATES 158446 APRIL 2026 BILLING 1114202 64432 $ 351.00 162475 Total $ 351.00
162476 05/15/2026 KIER & WRIGHT 320955 022326-032926 PERIOD 1115999 68615 $ 1,928.00 162476 05/15/2026 KIER & WRIGHT 321131 022326-032926 PERIOD 1115999 68615 $ 572.00 162476 05/15/2026 KIER & WRIGHT 321132 022326-032926 PERIOD 1115999 68615 $ 68.50 162476 05/15/2026 KIER & WRIGHT 321133 022326-032926 PERIOD 1115999 68615 $ 1,810.00 162476 Total $ 4,378.50
162477 05/15/2026 LANCE BAYER 050226 031926-042726 SERVICE 1111301 63215 $ 875.00 162477 Total $ 875.00
162478 05/15/2026 LISA WISE CONSULTING INC 5298 030126-033126 PERIOD 1113202 63219 $ 12,207.51 162478 Total $ 12,207.51
162479 05/15/2026 LOS GATOS CHAMBER OF COMMERCE 20092 FY 2025-2026 SERVICES 1112106 67102 $ 7,333.34 162479 Total $ 7,333.34
162480 05/15/2026 LOS GATOS MUSEUM ASSOCIATION 16-6-3084 052026 LIBRARY 2617301 62415 $ 250.00 162480 Total $ 250.00

ITEM NO. 9.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 05-15-2026
162481 05/15/2026 LOS GATOS TOWN EMPLOYEES FOUNDA108370 LGTEF PPE 05/09/26 111 21264 $ 456.00 162481 Total $ 456.00
162482 05/15/2026 LWP CLAIMS SOLUTIONS INC 26514 MAY 2026 CLAIMS ADMINISTRATION 6122202 65521 $ 5,025.58 162482 Total $ 5,025.58
162483 05/15/2026 METRO MOBILE COMMUNICATIONS 51103 HELMET 1114302 61253 $ 2,234.44 162483 Total $ 2,234.44
162484 05/15/2026 MIDWEST MOTOR SUPPLY CO., INC. 104393360 SUPPLIES 1115402 61265 $ 430.73 162484 05/15/2026 MIDWEST MOTOR SUPPLY CO., INC. 104411317 SUPPLIES 1115402 61265 $ 248.20 162484 05/15/2026 MIDWEST MOTOR SUPPLY CO., INC. 104427118 SUPPLIES 1115402 61265 $ 532.86 162484 Total $ 1,211.79
162485 05/15/2026 MIDWEST TAPE 508693968 DVDS 1117201 61191 $ 39.52 162485 05/15/2026 MIDWEST TAPE 508730956 SUPPLIES 1117201 61191 $ 311.76 162485 05/15/2026 MIDWEST TAPE 508730958 DVDS 1117201 61191 $ 86.37 162485 05/15/2026 MIDWEST TAPE 508764104 DVDS 1117201 61191 $ 57.61 162485 05/15/2026 MIDWEST TAPE 508764106 DVDS 1117201 61191 $ 59.29 162485 05/15/2026 MIDWEST TAPE 508797192 DVDS 1117201 61191 $ 42.81 162485 05/15/2026 MIDWEST TAPE 508797194 DVDS 1117201 61191 $ 117.77 162485 Total $ 715.13
162486 05/15/2026 MOAMMAR DANIEL WHITWORTH 050626 2026 SPRING INTO GREEN 1112106 62437 $ 780.00 162486 Total $ 780.00
162487 05/15/2026 NEW IMAGE LANDSCAPE COMPANY 154082 APRIL 2026 LANDSCAPE MAINTENANCE 2365506 63363 $ 140.00 162487 05/15/2026 NEW IMAGE LANDSCAPE COMPANY 154082 APRIL 2026 LANDSCAPE MAINTENANCE 2355505 63363 $ 375.00 162487 05/15/2026 NEW IMAGE LANDSCAPE COMPANY 154082 APRIL 2026 LANDSCAPE MAINTENANCE 2345504 63363 $ 559.00 162487 05/15/2026 NEW IMAGE LANDSCAPE COMPANY 154082 APRIL 2026 LANDSCAPE MAINTENANCE 2335503 63363 $ 46.00 162487 05/15/2026 NEW IMAGE LANDSCAPE COMPANY 154082 APRIL 2026 LANDSCAPE MAINTENANCE 2325502 63363 $ 609.00 162487 05/15/2026 NEW IMAGE LANDSCAPE COMPANY 154082 APRIL 2026 LANDSCAPE MAINTENANCE 2315501 63363 $ 93.00 162487 05/15/2026 NEW IMAGE LANDSCAPE COMPANY 154082 APRIL 2026 LANDSCAPE MAINTENANCE 1115301 63363 $ 10,234.00 162487 Total $ 12,056.00
162488 05/15/2026 NHA ADVISORS LLC 02019 FISCAL CONDITION ANALYSIS 020126-033126 1111201 63219 $ 45,175.00 162488 05/15/2026 NHA ADVISORS LLC 02020 ASSET LIABILITY MANAGEMENT 102825-033126 1111201 63219 $ 8,795.00 162488 Total $ 53,970.00
162489 05/15/2026 NICHOLS CONSULTING ENGINEERS 58205534 SERVICES THROUGH 041726 4118106 82303 $ 2,932.50 162489 Total $ 2,932.50
162490 05/15/2026 NWESTCO LLC INV599557 APRIL 2026 DO INSPECTION 1115402 61266 $ 160.00 162490 Total $ 160.00
162491 05/15/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-104992 AUTO PARTS 1115402 61265 $ 289.36 162491 Total $ 289.36
162492 05/15/2026 OCLC, INC. 1000492200 EAUDIOBOOKS/EBOOKS 1117201 61191 $ 984.58 162492 05/15/2026 OCLC, INC. 1000492219 EAUDIOBOOKS/EBOOKS 1117201 61191 $ 1,215.23 162492 Total $ 2,199.81
162493 05/15/2026 ODP BUSINESS SOLUTIONS 458660838002 SUPPLIES 1114201 61111 $ 43.20

ITEM NO. 9.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 05-15-2026
162493 05/15/2026 ODP BUSINESS SOLUTIONS 463475261001 SUPPLIES 1113201 61111 $ 69.02 162493 05/15/2026 ODP BUSINESS SOLUTIONS 465467954001 SUPPLIES 1111201 61111 $ 371.06 162493 05/15/2026 ODP BUSINESS SOLUTIONS 465480407001 CREDIT MEMO 1112401 61111 $ (119.15) 162493 Total $ 364.13
162494 05/15/2026 OPERATION FREEDOM PAWS 24386 042426-042626 BOARDING 1114301 64282 $ 134.00 162494 Total $ 134.00
162495 05/15/2026 KARTHIK RAJU 050426 REFUND SPECIAL USE PERMIT 1115301 42511 $ 500.00 162495 Total $ 500.00
162496 05/15/2026 LEANNE HOONHOUT 050426-1 REFUND SPECIAL USE PERMIT 1115301 42511 $ 200.00 162496 Total $ 200.00
162497 05/15/2026 SINGH-PATEL LIVING TRUST 050426-2 REFUND SPECIAL USE PERMIT 1115301 42511 $ 200.00 162497 Total $ 200.00
162498 05/15/2026 PACIFIC GAS & ELECTRIC 02259-050526 033126-042826 SERVICE 1115401 62621 $ 151.66 162498 05/15/2026 PACIFIC GAS & ELECTRIC 09379-050826 033026-042726 SERVICE 6335423 62611 $ 21,038.87 162498 05/15/2026 PACIFIC GAS & ELECTRIC 09379-050826 033026-042726 SERVICE 6335423 62612 $ 270.86 162498 05/15/2026 PACIFIC GAS & ELECTRIC 09379-050826 033026-042726 SERVICE 1111201 72111 $ 13,002.80 162498 05/15/2026 PACIFIC GAS & ELECTRIC 50296-050426 033026-042726 SERVICE 1115301 62611 $ 70.68 162498 05/15/2026 PACIFIC GAS & ELECTRIC 64101-050826 040326-050326 SERVICE 1115401 62621 $ 159.56 162498 05/15/2026 PACIFIC GAS & ELECTRIC 70739-051126 040626-050426 SERVICE 1115301 62611 $ 10.26 162498 05/15/2026 PACIFIC GAS & ELECTRIC 73832-050626 040726-050526 SERVICE 6335423 62612 $ 12.80 162498 05/15/2026 PACIFIC GAS & ELECTRIC 89638-050726 040226-043026 SERVICE 1115301 62611 $ 636.69 162498 Total $ 35,354.18
162499 05/15/2026 PACIFIC PRODUCTS AND SERVICES LLC 38094 SUPPLIES 1115401 61275 $ 2,698.97 162499 Total $ 2,698.97
162500 05/15/2026 PAPE MACHINERY 16816658 SUPPLIES 1115402 61265 $ 195.85 162500 Total $ 195.85
162501 05/15/2026 PAPE MATERIAL HANDLING EXCHANGE 9490496 SUPPLIES 1115402 61265 $ 1,058.19 162501 Total $ 1,058.19
162502 05/15/2026 PERRY THORWALDSON 050626 2026 SPRING INTO GREEN 1112106 62437 $ 1,800.00 162502 Total $ 1,800.00
162503 05/15/2026 PROJECT SENTINEL 506-Q3-FY26 010126-033126 SERVICES 1111201 63382 $ 8,925.00 162503 Total $ 8,925.00
162504 05/15/2026 RELX INC 3096418507 040126-043026 PERIOD 1111301 62153 $ 144.05 162504 Total $ 144.05
162505 05/15/2026 ROCKET RESTROOMS & FENCING INC 83617 SPECIAL EVENTS RESTROOM RENTAL 1112106 62437 $ 503.68 162505 Total $ 503.68
162506 05/15/2026 RURAL SUPPLY HARDWARE INC 6918 SUPPLIES 1115301 61214 $ 19.76 162506 05/15/2026 RURAL SUPPLY HARDWARE INC 6934 SUPPLIES 1115401 61275 $ 186.73 162506 05/15/2026 RURAL SUPPLY HARDWARE INC 6964 SUPPLIES 1115301 61214 $ 144.98 162506 05/15/2026 RURAL SUPPLY HARDWARE INC 6971 SUPPLIES 1115401 61275 $ 23.06 162506 05/15/2026 RURAL SUPPLY HARDWARE INC 6984 SUPPLIES 1115401 61275 $ 39.51

ITEM NO. 9.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 05-15-2026
162506 05/15/2026 RURAL SUPPLY HARDWARE INC 7014 SUPPLIES 1115301 61214 $ 47.22 162506 Total $ 461.26
162507 05/15/2026 SAFETY-KLEEN SYSTEMS, INC. 99669185 SUPPLIES 1115402 61265 $ 592.69 162507 Total $ 592.69
162508 05/15/2026 SALES AND DISTRIBUTION SERVICES INC26042202IN SUPPLIES 1115401 61275 $ 2,832.46 162508 Total $ 2,832.46
162509 05/15/2026 SAN JOSE WATER COMPANY 12830-050726 030426-050426 SERVICE 2325502 62613 $ 515.62 162509 05/15/2026 SAN JOSE WATER COMPANY 27525-050726 030426-050126 SERVICE 1115301 62613 $ 377.26 162509 05/15/2026 SAN JOSE WATER COMPANY 27567-050726 030426-050126 SERVICE 1115301 62613 $ 788.61 162509 05/15/2026 SAN JOSE WATER COMPANY 33918-050726 030426-050526 SERVICE 1115301 62613 $ 1,245.86 162509 05/15/2026 SAN JOSE WATER COMPANY 47462-050726 030426-050426 SERVICE 1115301 62613 $ 1,307.93 162509 05/15/2026 SAN JOSE WATER COMPANY 63227-050726 030426-050526 SERVICE 6335423 62613 $ 1,029.77 162509 05/15/2026 SAN JOSE WATER COMPANY 70138-050726 030426-050426 SERVICE 1115301 62613 $ 1,642.96 162509 05/15/2026 SAN JOSE WATER COMPANY 87531-050726 030426-050526 SERVICE 1115301 62613 $ 1,008.16 162509 05/15/2026 SAN JOSE WATER COMPANY 90007-050726 030426-050426 SERVICE 2365506 62613 $ 411.68 162509 05/15/2026 SAN JOSE WATER COMPANY 93186-050726 030426-050426 SERVICE 1115301 62613 $ 821.84 162509 Total $ 9,149.69
162510 05/15/2026 SAN JOSE WATER COMPANY 02813-050726 030426-050526 SERVICE 1115301 62613 $ 160.94 162510 05/15/2026 SAN JOSE WATER COMPANY 06000-050726 030426-050426 SERVICE 1115301 62613 $ 237.59 162510 05/15/2026 SAN JOSE WATER COMPANY 17808-050726 030426-050126 SERVICE 1115301 62613 $ 150.55 162510 05/15/2026 SAN JOSE WATER COMPANY 19662-050726 030426-050526 SERVICE 1115301 62613 $ 264.70 162510 05/15/2026 SAN JOSE WATER COMPANY 27251-050726 030426-050426 SERVICE 1115301 62613 $ 332.45 162510 05/15/2026 SAN JOSE WATER COMPANY 34909-050726 030426-050526 SERVICE 1115301 62613 $ 160.94 162510 05/15/2026 SAN JOSE WATER COMPANY 56189-050726 030426-050126 SERVICE 1115301 62613 $ 247.61 162510 05/15/2026 SAN JOSE WATER COMPANY 76230-050726 030426-050426 SERVICE 2315501 62613 $ 192.13 162510 Total $ 1,746.91
162511 05/15/2026 SCCCMA 042026 2026 MEMBERSHIP DUES 1112101 62152 $ 300.00 162511 Total $ 300.00
162512 05/15/2026 SHI INTERNATIONAL CORP B21129012 M365 COPILOT 6212502 63332 $ 121.32 162512 Total $ 121.32
162513 05/15/2026 SOUTH BAY REGIONAL 226468 FTO COURSE I VELASQUEZ 1114301 64111 $ 500.00 162513 Total $ 500.00
162514 05/15/2026 STATE OF CA-DEPT OF TRANSPORTATIOSL260658 JANUARY-MARCH 2026 SIGNALS & LIGHTING 1115401 63364 $ 4,912.14 162514 Total $ 4,912.14
162515 05/15/2026 STEPHEN CIARI PLUMBING AND HEATIN28959 042126 SERVICE 6335423 62373 $ 1,219.33 162515 Total $ 1,219.33
162516 05/15/2026 STEVENS CREEK TOYOTA 312468-1 AUTO PARTS 1115402 61265 $ 37.91 162516 Total $ 37.91
162517 05/15/2026 SUNBELT RENTALS INC 183133576-0001 ART MANLIFT 6335423 62353 $ 1,672.85 162517 Total $ 1,672.85
162518 05/15/2026 SUNWEALTH PROJECT POOL 5 LLC INV-12656 APRIL 2026 POLICE 6335423 62611 $ 1,706.76

ITEM NO. 9.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 05-15-2026
162518 05/15/2026 SUNWEALTH PROJECT POOL 5 LLC INV-12659 APRIL 2026 YARD 6335423 62611 $ 2,207.75 162518 Total $ 3,914.51
162519 05/15/2026 THE ALARM COMPANY INC 364073 050126-053126 SERVICE 6335423 63362 $ 253.00 162519 Total $ 253.00
162520 05/15/2026 THE PREFERRED IMAGE, INC. 27089342 2021 FORD POLICE INTERCEPTOR 1115402 61265 $ 311.73 162520 05/15/2026 THE PREFERRED IMAGE, INC. 27089342 2021 FORD POLICE INTERCEPTOR 1115402 62378 $ 793.00 162520 Total $ 1,104.73
162521 05/15/2026 TIYE MALEE UDONNA GARRETT 050726 2026 SPRING INTO GREEN 1112106 62437 $ 1,000.00 162521 Total $ 1,000.00
162522 05/15/2026 TOWN EMPLOYEES ASSOCIATION 108368 TEA DUES PPE 05/09/26 111 21261 $ 1,411.40 162522 Total $ 1,411.40
162523 05/15/2026 TOWNSEND PUBLIC AFFAIRS INC 25326 MAY 2026 SERVICES 1111201 63219 $ 4,000.00 162523 Total $ 4,000.00
162524 05/15/2026 TRANSUNION RISK & ALT DATA SOLUTIO278896APR26 040126-043026 BILLING 1114303 61163 $ 272.15 162524 Total $ 272.15
162525 05/15/2026 TRIDENT K-9 CONSULTING 1787 K9 TRAINING 1114301 64282 $ 500.00 162525 Total $ 500.00
162526 05/15/2026 TRIKE A POSE LLC 050726 2026 SPRING INTO GREEN 1112106 62437 $ 800.00 162526 Total $ 800.00
162527 05/15/2026 TRUEPOINT SOLUTIONS, LLC 49564 APRIL 2026 SUPPORT 6212502 63331 $ 3,217.50 162527 Total $ 3,217.50
162528 05/15/2026 WEST PUBLISHING CORPORATION 853553247 040126-043026 SERVICE 1114303 62346 $ 718.56 162528 Total $ 718.56
162529 05/15/2026 WEX HEALTH INC 0002366604-IN APRIL 2026 COBRA 1111201 62116 $ 85.00 162529 Total $ 85.00
162530 05/15/2026 HARBOR IT LLC 30015 CREDIT MEMO 6212502 63331 $ (1,468.50) 162530 05/15/2026 HARBOR IT LLC 4023366 SUPPORT SERVICES 6212502 63331 $ 4,281.25 162530 05/15/2026 HARBOR IT LLC 4023532 MAY 2026 MONTHLY BILLING 6212502 63331 $ 389.62 162530 05/15/2026 HARBOR IT LLC 1678876037 FORTINET FORTIGATE 4118810 82405 $ 2,921.81 162530 Total $ 6,124.18
162531 05/15/2026 YEUN BYUN 050626 2026 SPRING INTO GREEN 1112106 62437 $ 900.00 162531 Total $ 900.00
162532 05/15/2026 ZUMAR INDUSTRIES INC 11785 SUPPLIES 1115401 61212 $ 848.13 162532 Total $ 848.13
Grand Total $ 321,017.75

ITEM NO. 9.

ITEM NO. 9.

PREPARED BY: Kristina Alfaro
Administrative Services Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Administrative Services Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/02/2026
ITEM NO: 10
DATE: May 27, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Adopt a Resolution Approving the Town of Los Gatos Fiscal Year (FY) 2026- 27 Operating Budget and FY 2026-27 – 2030-2031 Capital Improvement Program (CIP); Adopt a Resolution Approving Commitment of Fund Balances under GASB 54; and Adopt a Resolution Establishing Gann Appropriation Limit, and Approve FY 2025-26 Budget Adjustments and Reclassifications
RECOMMENDATION: Adopt a Resolution Approving the Town of Los Gatos Fiscal Year (FY) 2026-27 Operating Budget and FY 2026-27–2030-31 Capital Improvement Program (CIP), including new appropriations, minor corrections, and carry-forward appropriations, as presented in Attachment 1 (with Exhibit A: Total Town Revenues and
Expenditures by Fund); Adopt a Resolution Approving Commitments of Fund Balances under GASB 54, as listed in Attachment 2; and Approve FY 2025-26 Year-End Budget Adjustments and
Reclassifications as listed in Attachment 3; and Adopt a resolution establishing the Fiscal Year (FY) 2026-27 Gann Appropriation Limit for the Town of Los Gatos, as listed in Attachment 7.

FISCAL IMPACT:

Town staff recommend establishing an Operating Budget of $78,829,640, an increase of $3,169,258 over the FY 2026-27 Proposed budget of $75,660,382 and an unchanged Capital Improvement Program Budget of $6,454,919 for FY 2026-27. For a total operating and capital budget of $85,284,559. Estimated revenues for the operating and capital budgets are $77,555,979 and $6,460,439, respectively, for a total of $84,016,418. This results in an

ITEM NO. 10.

PAGE 2 OF 7
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2026
estimated use of fund balance of $1,268,141 across both budgets. All changes are shown in Attachment 1.

Additionally, town staff are recommending changes to the FY 2025-26 estimate budget revenue reductions of $3.4 million and expense reallocation of salary savings as necessary to ensure all programs end the year in a positive position (Attachment 3).

STRATEGIC PRIORITY:

This initiative supports the Town’s 2025 to 2027 Strategic Priority to “ensure prudent financial management to result in structurally balanced five-year forecasts and fully funded five-year Capital Improvement Plans, managing liabilities such as pension costs and leveraging the Town’s assets, efficiencies, partnerships, and revenue streams.

BACKGROUND:

On April 20, 2026, the Proposed FY 2026-27 Operating and Capital Budgets were posted to the Town’s website, and the links (listed below) were provided to the Town Council and Finance Commission. Per Measure A, the Finance Commission received the Proposed Budgets 21 business days before May 19, 2026, the first meeting at which the Town Council will consider the Proposed Budgets.

Proposed Operating Budget:
https://www.losgatosca.gov/3067/Proposed-FY-2026-27-Operating-Budget CIP Budget:
https://www.losgatosca.gov/3068/Proposed-FY-2026-27-Capital-Budget Pursuant to Municipal Code Section 2.50.225(a)(6), the Finance Commission shall review proposed expenditures and advise the Town Council whether such expenditures meet the Town Council’s objective for the Measure G tax. In the FY 2026-27, all Measure G proceeds are allocated to support public safety operations. This approach supports the following Measure G objectives: (a) maintaining and enhancing neighborhood police patrols and local crime prevention programs, and (d) maintaining the Town’s long-term financial stability.

At its special meeting on April 27, 2026, the Finance Commission received a comprehensive review of the operating and capital budgets.

The May 4, 2026, Finance Commission staff report included the additional information that was requested at the April 27th meeting. Additionally, prior to and at the May 4th Commission meeting, more information was requested from staff. Any information request received before the meeting was provided as a desk item to the commission.

ITEM NO. 10.

PAGE 3 OF 7
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2026
The May 11, 2026, Finance Commission reviewed staff compiled recommendations received from various Commission members and discussed and finalized those recommendations.

On May 19, 2026, the Town Council conducted a public hearing to discuss the proposed FY 2026-27 Operating and Capital Summary Budget and Proposed FY 2026-27– 2030-31 Capital Improvement Program. The Town Council considered public testimony, discussed both documents, considered the Finance Commission recommendations, and directed staff to bring back the documents for final approval, incorporating the Council’s recommendations. This included all but one of the Finance Commission recommendations. The Council did not move forward with the recommendation to
use the 115 Pension Trust to make a one-time additional discretionary payment to CalPERS at this time. The Council will wait until the conclusion of the Asset and Liability Management study to determine the need for the transfer.

DISCUSSION:

The draft resolution (Attachment 1) incorporates the budget direction provided by the Council at the May 19, 2026, budget hearing.

As part of that direction, the Council approved:
 $1,501,527 reduction in Vehicle and Equipment Internal Fund (ISF) charges to the General fund
 $811,334 Transfer out of the General Fund, resulting in increased expenditures  $811,334 Transfer into the Facilities Fund, resulting in increased revenue  $335,083 Increase expenditures in facilities projects in the Facilities ISF fund (Attachment 5)
 $134,368 Increase in expenditures in the General Fund for four Parks and Public Works contracts that materialized higher than originally budgeted  The establishment of a new Capital Fund, “Long-term Community Benefit”  $3,000,000 transfer out of the General Fund, resulting in increased expenditures  $3,000,000 transfer into the “Long-term Community Benefit” Capital Fund, resulting in increased revenue
 $3,000,000 Committed Reserve for future use of these funds in the “Long-term Community Benefit” capital fund.

In addition, the Council requested information on how other agencies in Santa Clara County are treating ERAF funds. This information is included in Attachment 6. The Council also requested that a narrative about how the unassigned fund balance was established and has grown be added to page C-29 of the financial summaries section, and is included as Attachment 4.

ITEM NO. 10.

PAGE 4 OF 7
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2026
Attachment 2 (GASB 54 Commitment Resolution) includes changes to reserves as noted above and all fund balance allocations and reclassifications.

FY 2025-26 Year-End Estimate
In anticipation of the end of the FY 2025-26 fiscal year, the Council is being asked to approve several revenue and expenditure budget adjustments, as listed in Attachment 3. These yearend adjustments reflect revised estimates and operational impacts that have occurred since the Mid-Year Review in February and are necessary to ensure the FY 2025-26 budget reflects actual financial activity.

The FY 2025-26 adopted budget included a 4.6% position vacancy savings assumption for salaries and benefits, with the understanding that all vacant positions would be eventually filled through recruitment. However, recent estimates show that some departments and programs that are fully staffed will not realize the 4.6% budgeted salary savings. Staff is therefore requesting that Council approve salary and expenditure budget adjustments, as needed, up to the amount of the projected 4.6% vacancy savings for individual departments and programs, based on year-end actual expenditures.

Attachment 3 also lists the salary and benefit reclassification from the General Fund to Capital Projects to recognize the utilization of temporary staff for capital projects.

Revenues
Revenues in the General Fund are expected to decrease by $3.4 million to $62.2 million as described below:
 Property Tax - $0.2 million reduction due to a property tax agreement that will now result in a direct payment to the County instead of to the Town.  Sales Tax - $0.3 million reduction in revenues to reflect the most recent projections.  Sales Tax Measure G - $40,000 increase to reflect the most recent projections.  Other Sources - $2.9 million reduction in this category due to the sale of the 4 Tait property that is now expected to occur in FY 2026-27, not FY 2025-26, and an increase of $54,042 for VTA Measure B Education & Encouragement Grant.

Expenditures
Expenditures are expected to remain in line with FY 2025-26 Mid-Year Projections at $61.7 million. However, budget transfers may be necessary to ensure program budgets end the year within budget, as fully or mostly fully staffed programs will not realize vacancy savings.

The result of these changes is a decrease in estimated surplus from $4.7 million to $1.3 million.

ITEM NO. 10.

PAGE 5 OF 7
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2026
Alternate FY 2025-26 Estimate Budget for Expenses
To provide more refined year-end projections, staff have completed a high-level analysis of actual expenses plus encumbrances as of March 31, 2026, and developed an alternate FY 2025- 26 Estimate budget. This analysis focused on Salaries and Benefits and the Operating Expenditure categories. For all other expenditure categories, the FY 2025-26 mid-year estimates were used. Updated revenue estimates included above were unchanged.

Salaries and Benefits – Actuals per pay period cost through March 31, 2026, were extracted, and an average per pay period cost was determined. Then this amount was multiplied by the number of pay periods remaining in the fiscal year to estimate the year-end salary and benefits.

This has resulted in an estimated additional savings of $2.6 million in addition to budgeted salary and benefit savings of $2.2 million for total salary and benefit savings of $4.8 million.

Operating Expenditures – A trend analysis using the average expenses as of the third quarter or March 31, 2026, divided by year-end actuals for FY 2020-21 to FY 2024-25 was used to determine the average percent spent. This average was then applied to expenses as of March 31, 2026, to arrive at FY 2025-26 year-end estimates. Any accounts without valid trend lines, either because of insufficient years of data, inconsistent data trends, or percentage errors, either assumed 75% spend as the trend, or, for instances where no dollars had been spent to date, we assumed no expenses would occur before year-end. This has resulted in an estimated additional savings of 1.0 million in estimated operating expenses savings.

Staff further tested this new trend analysis by completing the same analysis based on FY 2024- 25 March 31 data to June 30. Based on that analysis, the trend analysis estimate would have come within $140,000 or 1% of the year-end actuals. In comparison, the year-end estimate budget showed we would end the year $2 million or 16% higher.

The result of these changes is an estimated increase in surplus from $4.7 million to $4.9 million, even with the reduction of anticipated revenue of $3.4 million.

While the year-end estimate budget forecast shows the surplus decreasing to $1.3 million due to changes in revenues and the postponed 4 Tait property sale, the alternate estimate— reflecting additional savings in salaries, benefits, and operating costs—projects a higher surplus of $4.9 million. The Town is expected to finish the fiscal year between these two estimates.

Outlook
The Town’s General Fund budget is balanced through the planned use of reserves. The Town is not structurally balanced, as ongoing revenues are insufficient to fully support ongoing expenditures. For FY 2026-27, the gap between recurring General Fund revenues and expenditures is being closed by applying a 4.6% vacancy savings factor. The utilization of $3

ITEM NO. 10.

PAGE 6 OF 7
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2026
million in fund balance is due to the transfer out of cash from the General Fund to the Longterm Community Benefit Capital Fund. Without this transfer, a small surplus of $6,503 had been projected. As a result, the General Fund Unassigned Fund Balance for FY 2025-26 is projected to decrease slightly from an estimated $11.6 to $11.5 because of recommended year-end adjustments and reductions in the committed fund balance category. FY 2026-27 Unassigned fund balance is expected to decrease from $11.0 million to $8.5 due to the transfer out of $3 million dollars from the General Fund to a new capital fund for long-term community benefit.

This continued reliance on reserves is not sustainable over the long term. As the Town continues its efforts to address this structural deficit, it must be mindful that it cannot continue to support the current level of operational investment without either identifying new ongoing revenue sources or reducing programs and services to bring expenditures in line with recurring revenues. In addition, current budget balancing strategies have reduced investment into the capital improvement program, and additional resources will be needed to address capital infrastructure needs. The Town Council and staff remain committed to a strategy of proactive fiscal management, regularly reviewing revenues, expenditures, and reserve levels, and making strategic adjustments to ensure the Town’s long-term fiscal health.

Gann Limit
On November 6, 1979, California voters approved Proposition 4, commonly known as the Gann Spending Limitation Initiative, establishing Article XIIIB of the California State Constitution. This Proposition, which became effective in FY 1980/81, mandated an appropriation (spending) limit on the amount of tax proceeds that the State and most local government jurisdictions may appropriate within a fiscal year. Charges for services, fees, grants, loans, donations, and other non-tax proceeds are excluded from the spending limitation. Exemptions are also made for voter-approved debt prior to January 1, 1979, and the cost of court-related or Federal government mandates.

The Initiative was later modified by two propositions: Proposition 98 in 1988 and Proposition 111 in 1990. Proposition 98 established the return of tax revenues exceeding appropriation limit levels to the State or citizens through a process of refunds, rebates, or other means.

Proposition 111 allowed more flexibility in the appropriation calculation factors.

Attachment 7 is a resolution for Council consideration to establish an appropriation limit for FY 2026-27. The appropriation limit is based on population and per capita income data provided by the State of California Department of Finance. In alignment with State guidelines, the appropriation limit for FY 2026027 was calculated using inflation and population factors comprised of the change in County or Town population (whichever is higher) and the change in California per capita personal income.

The calculation of the FY 2026-27 Gann Appropriation Limit is as follows:

ITEM NO. 10.

PAGE 7 OF 7
SUBJECT: Operating and Capital Budgets
DATE: June 2, 2026
The appropriation limit is the total amount of tax money that can be appropriated by the Town in FY 2026-27. The proposed FY 2026-27-budget anticipates $44,627,959 in taxes, which is $17,934,877 less than the appropriation limit of $62,462,836.

CONCLUSION:

Staff recommends the Council adopt a Resolution approving the Town of Los Gatos Fiscal Year (FY) 2026-27 Operating Budget and FY 2026-27 to 2030-31 Capital Improvement Program (CIP)(Attachment 1), adopt a Resolution approving commitment of Fund Balances under GASB 54 (Attachment 2), and approve the FY 2025-26 budget adjustments (Attachment 3).

COORDINATION:

The preparation of the budget documents involved the participation of all Town Departments.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Resolution of the Town Council Approving FY 2026-27 Operating Budget and FY 2026-27 to 2030-31 Capital Improvement Program (Attachment 1), including Exhibit A: Total Town Revenues and Expenditures by Fund

2. Resolution of the Town Council of the Town of Los Gatos Approving Commitments of Fund Balance under GASB 54

3. FY 2025-26 Year-End Budget Adjustments and Reclassifications

4. FY 2026-27 Financial Summaries Fund Balance Narrative Page C-29

5. Facilities Projects List

6. Santa Clara County agencies ERAF survey results

7. Resolution of the Town Council Establishing the FY 2026-27 Appropriations Limit for the Town of Los Gatos
County Per Capita 2025-26 2026-27
Population Income Appropriation Appropriation Appropriation Factor Factor Factor Limit Limit

1.0023 X 1.0495 = 1.051913850 X $ 59,380,183 = $ 62,462,836 FY 2026-27 Calculation

ITEM NO. 10.
1 of 4
Resolution 2026- June 2, 2026
ATTACHMENT 1
DRAFT RESOLUTION 2026-

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING THE FISCAL YEAR (FY) 2026-27 OPERATING BUDGET AND FY 2026-27 2030-31CAPITAL BUDGET; NEW APPROPRIATIONS; OTHER ADJUSTMENTS; MINOR CORRECTIONS; AND CARRY-FORWARD APPROPRIATIONS
WHEREAS, Section 2.30.295(b) of the Los Gatos Town Code requires the Town Manager to annually prepare and submit a budget to the Town Council and be responsible for its administration; and
WHEREAS, the Town Manager submitted to the Town Council and Finance Commission a Proposed Operating Budget for FY 2026-27 on April 20, 2026; and WHEREAS, the Town Manager submitted to the Town Council and Finance Commission a Proposed Five-Year Capital Improvement Program for FY 2026-27 – 2030-31 on April 20, 2026; and
WHEREAS, the Town Council conducted a noticed public hearing on the Proposed Operating Budget and Capital Improvement Program on May 19, 2026; and WHEREAS, per Measure A, the Town Council has considered and reviewed the Finance Commission’s written recommendations to the Town Council on the said proposed Budget and Capital Improvement Program during the public hearing on May 19, 2026; and WHEREAS, per Measures G and A, the Town Council has considered and reviewed the Finance Commission written recommendations to the Town Council regarding the potential allocation of Measure G proceeds during its public hearing on May 19, 2026; and WHEREAS, the Town Council continued to allocate the entire Measure G proceeds starting with the FY 2025-26 budget; and
WHEREAS, the Town Council previously allocated residual Measure G proceeds for capital should be programmed to the Shannon Road Repair Project; and WHEREAS, the Town Council has determined that the Long-Term Community Benefit Fund should be established in the General Fund Appropriated Reserve Fund 413, and WHEREAS, the Town Council has directed that $3,000,000 should be transferred from the Unassigned Fund Balance to the Long-Term Community Benefit Fund increasing Capital Project Fund revenues by $3,000,000, and

ITEM NO. 10.
2 of 4
Resolution 2026- June 2, 2026
ATTACHMENT 1
WHEREAS, the Town Council directed that the $3,000,000 should be Committed Fund Balance for the Long-Term Community Benefit Capital Projects, and WHEREAS, the Town Council directed estimated FY 2026-27 Internal Service Fund revenues decreased by $1,501,257 to capture the decreased General Fund Vehicle and Equipment Replacement charges in the same amount, and
WHEREAS, the Town Council directed estimated FY 2026-27 Internal service revenues increase by $811,334 and the General Fund Transfer to Facility Maintenance Internal Service Fund should be increased by the same amount to support the Facilities Program long-term needs, and
WHEREAS, the Town Council directed estimated FY 2026-27 General Fund expenditures increase by $134,368 to capture additional contractual increases for Parks and Public Works various maintenance agreements, and
WHEREAS, the Town Council directed estimated FY 2026-27 Internal Service Fund expenditures increased by $335,083 for providing funding for Special Facility Projects, and WHEREAS, the Town Council directed estimated FY 2026-27 Unassigned Fund Balance used to balance the FY 2026-27 budget decreased from $549,322 to $6,503 surplus based on the aforementioned revenue and expenditures changes, and WHEREAS, the Council authorized $1,000,000 reserve use for Emergency Management during the FY 2024-25, and
WHEREAS, it is anticipated that approximately $100,000 funding will be spent for Emergency Management during FY 2024-25 and the rest of the budget ($963,587) was transferred to FY 2025-26, and
WHEREAS, it is anticipated that approximately $50,000 funding will spent for Emergency Management during FY 2025-26, and
WHEREAS, the estimated available expenditure budget balance will carry forward to FY 2026-27 Emergency Management Program budget, and
WHEREAS, the estimated $18,784,696 previously allocated funding within the Capital Program expenditure budget will carry forward to the FY 2026–27 Capital Program Budget, with the final carry-forward amount to be confirmed upon the close of the Fiscal Year; and

ITEM NO. 10.
3 of 4
Resolution 2026- June 2, 2026
ATTACHMENT 1
WHEREAS, the Capital Program defines the list of projects, cost estimates, funding sources, and estimated timelines for project delivery as required pursuant to the Mitigation Fee Act (specifically Government Code Section 66002); and
WHEREAS, an estimated $192,000 in expenditure budget and an estimated $142,000 in revenue budget remain available in the VTA–Measure B Education and Encouragement Capital Grant Program and are proposed to be transferred from the Capital Program to the General Fund Parks and Public Grant Program to properly align the grant funding with its intended use, with final amounts to be confirmed at Fiscal Year close; and
WHEREAS, on June 2, 2026, Town Council considered and reviewed the proposed Budget and Capital Improvement Program and made final determinations.

NOW, THEREFORE, BE IT RESOLVED: that the Town Council hereby adopts as the Operating Budget for the Town of Los Gatos for the 2026-27 fiscal year as depicted in Exhibit A entitled “Total Town Revenues and Expenditures by Fund” including the first year (FY 2026-27) of the Town’s Capital Improvement Program budget as contained in the Town’s FY 2026-27 – 2030-31 Capital Improvement Program and the Town’s Capital Improvement Plan.

BE IT FURTHER RESOLVED, that the final adopted Budget documents include minor corrections and approved appropriations for unspent prior year allocations, and that they be carried forward from prior years in a Reserve for Encumbrances whereby within each fund there is an amount sufficient to cover approved outstanding encumbrances as of June 30, 2025.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 2nd day of June, 2026 by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

ITEM NO. 10.
4 of 4
Resolution 2026- June 2, 2026
ATTACHMENT 1

LOS GATOS, CALIFORNIA
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA

ITEM NO. 10.

TOTAL TOWN REVENUES AND EXPENDITURES BY FUND

EXHIBIT A
FY 2026-27 Estimated FY 2026-27
Proposed Budget Recommended
Budget Revision Budget

REVENUES
General Fund $ 64,815,086 $ - $ 64,815,086
Special Revenue Funds 554,802 - 554,802
Internal Service Funds 8,952,358 (690,193) (1) 8,262,165 Capital Project Funds (does not include carryforwards)* 3,460,439 3,000,000 (2) 6,460,439 Successor Agency Funds 3,923,926 - 3,923,926
TOTAL REVENUES $ 81,706,611 $ 2,309,807 $ 84,016,418

OTHER FUNDING SOURCES
Designated One-Time Use of General Fund Unassigned Fund Balance 549,322 $ 3,000,000 3,000,000

EXPENDITURES AND TRANSFERS OUT
General Fund $ 64,974,408 $ 2,444,175 (3) $ 67,418,583
Special Revenue Funds 475,541 - 475,541
Internal Service Funds 6,272,388 335,083 (4) 6,607,471
Capital Project Funds (does not include carryforwards) 6,454,919 - 6,454,919 Successor Agency Funds 3,938,045 - 3,938,045
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES $ 82,115,301 $ 2,779,258 $ 84,894,559

OTHER FUNDING USES
Designated One-Time Use of General Fund Reserves 390,000 390,000 TOTAL TOWN EXPENDITURES & OTHER FUNDING SOURCES $ 82,505,301 $ 2,779,258 $ 85,284,559 GENERAL FUND SOURCE(USE) OF FUND BALANCES $ - $ 6,503
OTHER FUNDS SOURCE(USE) OF FUND BALANCES (249,368) (5) 1,725,356 TOTAL SOURCE(USE) OF FUND BALANCES $ (82,115,301) $ (2,779,258) $(84,894,559) Numbers may differ between exhibits due to rounding.
(1) Decreased Internal Service Fund Revenues (690,193)
($1,501,527)- Decrease - General Fund Departmental Vehicle and Equipment Replacement Charges $811,334 - Increase - Transfer to Facilities Maintenance Fund for Special Facility Project $690,193-Decreased Internal Service Revenues based on Reduce Charges (2) Designated One-Time Use of the General Fund Unassigned Fund Balance Reserves for Long-Term Community Benefit $3,000,000 - Transfer from General Fund Unassigned Fund Balance to Assigned Long-Term Community Benefit Reserve (3) General Fund Expenditures
$3,000,000 - Increase - Transfer from General Fund Unassigned Fund Balance to Assigned Long-Term Community Benefit Reserve
($1,501,527) - Decrease - General Fund Departmental Vehicle and Equipment Replacement Charges $811,334 - Increase - Transfer to Facilities Maintenance Fund for Special Facility Projects (4) Internal Service Fund Expenditures
$335,083 - Increase - Special Facility Projects
(5) Other Funds Source (Use) represents planned one-time uses of Internal Service Funds, Special Revenue Funds, Trust Funds, and Capital Project Funds primary for infrastructure and equipment investment.

ITEM NO. 10.
1 of 5
Resolution 2026- June 2, 2026
RESOLUTION 2026-

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING COMMITMENTS OF FUND BALANCE UNDER GASB 54

WHEREAS, the Governmental Accounting Standards Board (GASB) has issued its Statement No. 54, Fund Balance and Governmental Fund Type Definitions with the intent of improving financial reporting by providing fund balance categories that will be more easily understood and to improve the comparability of governmental fund financial statements; and WHEREAS, GASB 54 provides that the Town Council of the Town of Los Gatos classify governmental fund balances as restricted, assigned, or committed fund balances; and WHEREAS GASB 54 provides that restricted reserves are funds that are restricted for externally imposed constraints such as legal contracts or state law, assigned amounts are constrained by the Town’s intent to use them for specific purposes, and committed amounts are dedicated for specific purposes under constraints and formal action taken by the Town Council and these committed amounts cannot be used for any other purposes unless the Town Council of the Town of Los Gatos removes or changes the specific use through the same formal action to establish the commitment; and
WHEREAS, there exists a Restricted General Fund Pension Reserve in the form of an IRS 115 Pension Trust; and
WHEREAS, there exists a balance of $3,780,731 as of June 30, 2026 in the restricted Pension Reserve; and
WHEREAS, the Town Council of the Town of Los Gatos has established a General Fund Reserve Policy providing for minimum fund balance dollar target amounts for Budget Stabilization and Catastrophic Reserve fund balances and outlines policies and procedures for use and restoration of these balances; and
ATTACHMENT 2

ITEM NO. 10.
2 of 5
Resolution 2026- June 2, 2026
WHEREAS, there exists an assigned General Fund Compensated Absences Reserve allocated to fund 50% of all vested hours of sick leave, compensation, and vacation time with the actual reserve amount to be determined at the close of FY 2025-26; and WHEREAS, there exists an assigned Capital/Special Projects Reserve to fund key infrastructure and capital/special projects as identified in the Town’s five-year Capital Improvement Plan, and/or other Council priorities; and
WHEREAS, there exists an assigned authorized Carry Forward Reserve for materials and services on approved purchase order and contracts which were issued but not finalized or fulfilled as of the end of the fiscal year but for which funds will be carried forward to the following fiscal year. Actual reserve balance will be established at the close of FY 2025-26; and WHEREAS, in June 2016, the Town Council established the committed Pension/OPEB Reserve to provide funding toward pension and Other Post-Employment Benefits (OPEB) unfunded obligations by placing discretionary amounts to the reserve with formal Council action and transferring available year-end surpluses based on the General Fund Reserve Policy; and WHEREAS, there is an anticipated excess balance of $1,300,000 as of June 30, 2026 in the assigned OPEB/Pension Reserve, and
WHEREAS, The Town Council established the assigned Sustainability Reserve in FY 2008-09 by closing the Solid Waste Management fund and placing the initial residual balance dedicated for conservation, recycling, and sustainability; and WHEREAS, there exists an excess balance of $140,553 as of June 30, 2026 in the assigned Sustainability Reserve; and
WHEREAS, there exists an assigned Market Fluctuation Reserve that represents fund balance amounts for unrealized investment gains that have been recorded as investment income in the financial statements in accordance with the requirements of GASB 31, actual reserve balance will be established at the close of FY 2026-27; and WHEREAS, there exists an assigned Measure G 2018 District Sales Tax Reserve to track receipt and use of the 1/8 cent district tax funds collected by the Town; and

ITEM NO. 10.
3 of 5
Resolution 2026- June 2, 2026
WHEREAS, the Town Council has determined the use of Measure G accumulated and future proceeds to be 50% for operating expenditures and 50% for capital purposes until the end of FY 2024-25; and
WHEREAS, the Town Council has determined the use of 100% of the Measure G estimated proceeds from FY 2025-26 will go towards operating expenditures; and WHEREAS, the Town Council will determine the use of Measure G beyond FY 2027-28 after the completion of the external review of the Five-Year Forecast and a comprehensive Fiscal Impact Analysis, and
WHEREAS, the committed residual balance of $590,581 that was set aside for operating purposes in FY 2020-21 was programmed to be used for operating expenses in FY 2024- 25 if needed; and
WHEREAS, the portion of the committed residual balance of $590,581 was not used for operating expenses in FY 2024-25, and was placed in the Unassigned Fund Balance, and WHEREAS, there exists an excess balance of $0 as of June 30, 2026 in the Measure G Sales Tax Reserve for Operation, and
WHEREAS, there exists an excess balance of $11,488,344 as of June 30, 2026 in the Unassigned Fund Balance, and
WHEREAS, the FY 2026-27 budget transfers $3,000,000 from the General Fund Unassigned Fund Balance to the newly established Committed General Fund Appropriated LongTerm Community Benefit Reserve; and WHEREAS, the FY 2026-27 budget anticipates a surplus of $6,503; and WHEREAS, there exists an excess balance of $8,494,847 as of June 30, 2027 in the Unassigned Fund Balance, final balances will be determined at the close of the FY 2026-27 fiscal year, and
WHEREAS, the Town Council established the assigned Open Space reserve in the FY 1998-99 to be used for the preservation of open space, connection of open space trails, the definition of the southern boundary of the Town with passive open space, and protection of unique natural features; and

ITEM NO. 10.
4 of 5
Resolution 2026- June 2, 2026
WHEREAS, there exists an excess balance of $410,000 as of June 30, 2025 in the assigned Open Space Reserve; and

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE that the following estimated Pension, Budget Stabilization, Catastrophic, Pension/OPEB, Capital/Special Projects, Compensated Absences; Market Fluctuations, Sustainability, Open Space, and Unassigned Fund Balance as of June 30, 2026 and as of June 30, 2027 as restricted, assigned, unassigned or formally committed as follows:

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos held on the 2nd day of June 2026 by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
Actual
General Fund
Reserves
June 30, 2025
FY 2025-26
Budget, GF
Reserve Policy,
and this
Resolution
Approved
Increase
FY 2025-26
Budget, GF
Reserve Policy,
and this
Resolution
Approved
(Decrease)
Estimated
General Fund
Reserves
June 30, 2026
FY 2026-27
Budget
Resolution
Approved
Increase
FY2026-27
Budget
Resolution
Approved
(Decrease)
Estimated
General Fund
Reserves
June 30, 2027
Restricted Fund Balances
Pension $ 3,090,731 $ 690,000 $ - $ 3,780,731 $ 390,000 $ - $ 4,170,731 Nonspendable
Rehab Loan Reserve (Nonspendable) 159,000 - - 159,000 - - 159,000 Committed Fund Balances
Budget Stabilization 7,870,639 (332,187) 7,538,452 - - 7,538,452 Catastrophic 7,870,639 (332,187) 7,538,452 - - 7,538,452 Pension/OPEB 1,300,000 300,000 (300,000) 1,300,000 - - 1,300,000 Assigned Fund Balances
Capital/Special Projects 1,983,271 - 1,983,271 - - 1,983,271 Compensated Absences 1,519,243 - - 1,519,243 - 1,519,243 Open Space 410,000 - - 410,000 - - 410,000
Sustainability 140,553 - - 140,553 - - 140,553
Market Fluctuations 1,201,824 - - 1,201,824 - - 1,201,824 Carryover Encumbrances 6,367 - - 6,367 - - 6,367
Unassigned Fund Balance 10,211,049 1,277,295 - 11,488,344 6,503 (3,000,000) 8,494,847 Total Fund Balances $ 35,763,316 $ 37,066,237 $ (3,000,000) $ 34,462,740

ITEM NO. 10.
5 of 5
Resolution 2026- June 2, 2026
DATE: __________________
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________

ITEM NO. 10.
1 ATTACHMENT 3
FY 2025-26 YEAR-END RECOMMENDED BUDGET ADJUSTMENTS
Budget adjustments are recommended for the following revenues and expenditures at the year-end as described below:

Property Tax: $153,425 revenue budget decrease due to a property tax agreement will now result in a direct payment to the County instead of to the Town.

Sales and Use Tax: $345,452 revenue budget decrease to reflect current sales tax trends based on HdL's current projections.

Fund Program Account Amount Comments
111 1201 41131 Property Tax $ (153,425) Funds are not Anticipated 111 1201 41211 Sales & Use Tax (345,452) Funds are not Anticipated 111 1221 41214 Measure G - District Sales Tax 40,000 Funds are not Anticipated 111 1201 45941 Tait Property Sales (3,000,000) Property Sales is Anticipated to Close in FY 2026-27
111 5802 43310
VTA - Measure B Education &
Encouragement Grant
54,042 Funds are Anticipated
TOTAL GENERAL FUND REVENUES: $ (3,404,835)
Fund Program Account Amount Comments
111 Town-wide 50000-
59999
Salaries and Benefits Varies
Up to 4.6% Salary Saving Factor
Applied Up to the Amount of
$1,951,624 by
Programs/Departments
TOTAL GENERAL FUND EXPENDITURES Varies
Fund Program Account Amount Comments
421 Grant Funded Capital Program
421 8119 43310 VTA - Measure B Education & Encouragement Grant $ 54,042 Funds Anticipated TOTAL OTHER FUNDS REVENUES $ 54,042
FY 2025-26 YEAR END BUDGET ADJUSTMENT REQUESTS - GENERAL FUND General Fund Revenues
General Fund Expenditures
FY 2025-26 YEAR-END BUDGET ADJUSTMENT REQUESTS - OTHER FUNDS Other Fund Revenues

ITEM NO. 10.
2 ATTACHMENT 3
Measure G – District Sales Tax: $40,000 revenue budget increase to reflect the current trends of the one-eight cent sales tax based on HdL’s projections.

Tait Property Sales: $3,000,000 revenue budget decrease to reflect that the anticipated sale of the Town’s Tait property is now expected to close after June 30, 2026. If the sale closes before that date, staff will leave the revenue budget unchanged.

Valley Transportation Authority’s Measure B Education and Encouragement Grant Revenue:
$54,042 revenue budget increase for recognizing anticipated grant proceeds to true up spending authorization
Salaries and Benefits (Vacancy Factor): A salary and benefits expenditure budget increase up to the 4.6% salary savings ($1,951,624) for individual Departments/Programs as needed, based on year-end actuals. Current projections indicate that an increase of approximately $355,000 will be required. The final adjustment amount will be determined once the Fiscal Year closes and actual expenditures are finalized.

FY 2025-26 YEAR-END RECOMMENDED SALARY AND BENEFIT RECLASSIFICATION FROM THE

GENERAL FUND TO CAPITAL PROGRAMS
Staff is requesting the salary and benefit reclassification from the General Fund to the Capital Projects to recognize the utilization of temporary staff for capital projects. Current projection to reclassify is $160,000, the actual amount will be determined at the close of the fiscal year.

ITEM NO. 10.

C - 29
Changes to Fund Balance
As part of the FY 2024-25 Final Budget, Council approved the creation of unassigned fund balance of $4 million. This was created by reducing the “ERAF Risk Reserve” by $400,000, decreasing the “Measure G District Sales Tax - Operating” by $600,000 and lastly, reducing the “Capital/Special Project” by $3,000,000.

Subsequently, FY 2024-25 ended the year with a surplus of $4.7 million. Of this surplus $2.5 million was allocated to the unassigned category. In addition, there were several changes across multiple reserves that resulted in an additional $3.7 million being allocated for a total of $10.2 million in unassigned fund balance at the end of FY 2024-25. Unassigned fund balance is projected to increase to $10.8 million at end of FY 2025-26 due to anticipated budget surplus of $0.6 million, then decrease by about $3 million to $7.8 million due to the transfer out of funds from the General Fund to a new capital fund “Long-term Community Benefit”. This transfer was meant to pre distribute
6/30/2022
Actual
6/30/2023
Actual
6/30/2024
Actual
6/30/2025
Actual
6/30/2026
Estimated
6/30/2027
Proposed
Restricted for:

Pension $ 690,000 $ 1,400,163 $ 2,188,659 $ 3,090,731 $ 3,780,731 $ 4,170,731 Property Held for Resale 44,338 344,338 - - -
Commited to:

Budget Stabilization $ 5,991,566 $ 6,129,774 $ 6,736,781 $ 7,870,639 $ 7,709,347 $ 7,709,347 Catastrophic $ 5,991,566 6,129,775 6,736,781 7,870,639 $ 7,709,347 $ 7,709,347 Pension/OPEB 300,000 300,000 300,000 1,000,000 1,300,000 1,300,000 Measure G District Sales Tax - Operating - 590,581 590,581 - - - Assigned to:

Open Space $ 410,000 $ 410,000 $ 410,000 $ 410,000 $ 410,000 $ 410,000 Sustainability 140,553 140,553 140,553 140,553 140,553 140,553 Capital / Special Projects 11,071,231 10,359,577 8,651,056 1,983,271 1,983,271 1,983,271 Authorized Carryforward 33,145 37,698 85,861 6,367 6,367 6,367 Compensated Absences 1,519,147 1,580,623 1,555,478 1,519,243 1,519,243 1,519,243 Market Fluctuations - - 1,712,246 1,201,824 1,201,824 1,201,824 ERAF Risk Reserve - 689,608 1,430,054 - - -
Council Priorities - Economic Recovery - 1,556,614 20,684 - - - Other 159,000 159,000 159,000 159,000 159,000 159,000
Unassigned Fund Balance 10,211,049 14,605,431 14,056,109 Total General Fund Reserve $ 26,896,789 $ 29,528,304 $ 31,062,072 $ 35,463,316 $ 40,525,114 $ 40,365,792 General Fund Reserve
Attachment 4

ITEM NO. 10.

C - 30
anticipated proceeds from the sale of town property. The sale of property will be included in FY 2025-26 carryforward revenue and will in estimated fund balance increasing to $10.8 million.

Revenue Options
Cities typically seek revenue sources to fund essential services, often aiming for full-cost recovery. However, fee studies frequently reveal that actual service costs significantly exceed existing fees, making large increases difficult to implement due to public resistance. As a result, cities adopt strategies to soften the impact of these necessary increases. Common approaches include gradually phasing in fee increases over several years or intentionally setting fees below full-cost recovery levels to lessen opposition. While these measures may reduce immediate pushback, they inevitably result in lower overall revenue.

The same outcome occurs when cities hesitate to introduce new revenue programs, such as revenue recovery measures that did not previously exist. Though these gradual, partial, or new approaches initially appear politically manageable and mitigate short-term resistance, they can inadvertently shift fiscal pressures to future budgets.

Over time, the increased costs of providing programs and services plus the cumulative impact of consistently underrecovering costs or delaying necessary revenue increases creates structural deficits. These deficits progressively intensify fiscal pressures, eventually requiring more drastic actions in future budgets when available resources are insufficient to sustain existing services and operations.

Los Gatos faces similar challenges as other cities regarding revenue generation and cost recovery. Given the projected deficits and the need for potential expenditure reductions, exploring options to increase revenue becomes critical for balancing the Town’s ability to provide essential services. Revenue-generating options differ significantly based on implementation timelines. For instance, economic development initiatives designed to attract visitors and increase hotel occupancy could require upfront investment and years to yield substantial returns. In contrast, updating a fee schedule or renegotiating agreements may offer quicker financial benefits but face greater immediate opposition.

Town staff are presenting several short-term and medium-term revenue generating options for Town Council’s consideration. Balancing expenditure reductions with increasing revenue, preferably ongoing revenue, reduces the risk the Town enters into a spiral of reductions and reducing the extent and quality of local programs and services.

Efficiency and Innovation
Lastly, it is prudent for the Town to find opportunities to enhance the efficiency with which we operate and to look towards innovation where such can maintain or improve delivery at reduced costs. This area is a multi-year effort, so it is not contemplated that it will provide direct benefit in the very short-term to address projected deficits, but it is an important addition that residents and taxpayers will expect as part of a holistic effort to achieve fiscal sustainability.

ITEM NO. 10.

Location/Building Project/System Type Project Name FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 TOTALS Civic Center Mechanical Systems Replace police dispatch AHU $ 60,000 $ 60,000 Civic Center Mechanical Systems Replace Building controls $ 225,000 $ 225,000 Civic Center Mechanical Systems Replace unit 2 in Council Chamber IT room $ 15,000 $ 15,000 Civic Center Mechanical Systems Insulate boiler room piping $ 7,500 $ 7,500 Civic Center Accessibility Issues DAC Accessibility Compliance $ 109,871 $ 109,871 $ 109,871 $ 109,871 $ 109,871 $ 549,355 Library Electrical Systems Test and Certify Main Electric Panel $ 50,000 $ 50,000 Library Electrical Systems Replace PV Inverters $ 40,000 $ 40,000 Library Interiors Replace floor coverings (carpet) $ 60,000 $ 80,000 $ 140,000 Library Accessibility Issues DAC Accessibility Compliance $ 19,059 $ 19,059 $ 19,059 $ 19,059 $ 19,059 $ 95,295 Annual Total 2022 Dollars2 $ 286,430 $ 428,930 $ 128,930 $ 128,930 $ 208,930 $ 1,182,151 Annual Total Escalated to Fiscal Year Dollars at 4% $ 335,083 $ 521,859 $ 163,138 $ 169,663 $ 285,935 $ 1,475,678 Notes:

Tier 3 - Town of Los Gatos Facility Needs Projection

1. Projections are based on information developed by Facility Engineering Associates in Fiscal Year 2021/22, information developed by Disability Access Consultants in 2022 and staff recommendations

2. Annual totals are on 2022 dollars. 2024 escalation provided for discussion. Future development of this projection will escalate all costs to year of projected expense.

Attachment 5

ITEM NO. 10.

Attachment 6
Agency Budget Full
ERAF
Budgets
% of ERAF
Reserve set aside
Los Gatos Yes No No
Campbell Yes No No
Cupertino Yes No No
Gilroy Yes No No
Los Altos Yes No No
Mountain
View
No, recognizes
once received
No Yes, based on % at
risk
Morgan Hill No Yes, only
percent at
risk
Yes as an accrued
liability not a
reserve
Palo Alto No Yes, only
percent at
risk
Yes
Santa Clara Yes No Yes
Sunnyvale Yes No No
Saratoga No Yes No

ITEM NO. 10.
1 of 3
Resolution 2026- June 02, 2026
ATTACHMENT 7
DRAFT RESOLUTION 2026-

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ESTABLISHING THE FY 2026-27 APPROPRIATIONS LIMIT

FOR THE TOWN OF LOS GATOS
WHEREAS, Article XIIIB of the California Constitution (Limitation of Government Appropriations) was passed by the California electorate on November 6, 1979, and became effective on July 1, 1980; and
WHEREAS, Chapter 1205, Statute of 1980, Section 7900 of the California Government Code formally implements methods for governmental entities to establish and define annual appropriations limits; and
WHEREAS, the growth factors used to calculate the Annual Appropriations Limit are County or Town population change and the increase in the California per capita income; WHEREAS, in addition to the annual inflation and population adjustments, state law requires the Appropriations Limit to be adjusted in the event that the financial responsibility for providing services is transferred in whole or in part from one entity of government to another; and
THEREFORE, BE IT RESOLVED: that the Annual Appropriations Limit for the Town of Los Gatos for FY 2026-27 is $62,462,836 as reflected in Exhibit A.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 2nd day of June 2026 by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA

ITEM NO. 10.
2 of 3
Resolution 2026- June 02, 2026
ATTACHMENT 7
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA

ITEM NO. 10.
3 of 3
Resolution 2026- June 02, 2026
ATTACHMENT 7

EXHIBIT A
For Beginning County Town Per Capita Ending %
YE Population Population Income Limit
Limit Factor Factor Factor Limit Increase
2010 28,426,367 1.0156 1.0108 1.0062 29,048,811 2.19%
2011 29,048,811 1.0126 1.0101 0.9746 28,667,689 -1.31%
2012 28,667,689 1.0089 1.0096 1.0251 29,669,366 3.49%
2013 29,669,366 1.0124 1.0081 1.0377 31,169,671 5.06%
2014 31,169,671 1.0157 1.0147 1.0512 33,279,977 6.77%
2015 33,279,977 1.0150 1.0102 0.9977 33,701,485 1.27%
2016 33,701,485 1.0113 1.0020 1.0382 35,384,256 4.99%
2017 35,384,256 1.0126 1.0070 1.0537 37,754,174 6.70%
2018 37,754,174 1.0081 1.0040 1.0369 39,464,396 4.53%
2019 39,464,396 1.0099 1.0050 1.0367 41,317,775 4.70%
2020 41,317,775 1.0033 0.9998 1.0385 43,050,108 4.19%
2021 43,050,108 1.0037 1.0234 1.0373 45,831,327 * 6.46% 2022 45,831,327 0.9944 0.9919 1.0573 48,186,101 ** 5.14% 2023 48,186,101 0.9931 0.9961 1.0755 51,622,037 7.13%
2024 51,622,037 0.9975 0.9980 1.0444 53,806,227 4.23%
2025 53,806,227 1.0002 0.9959 1.0362 55,765,163 3.64%
2026 55,765,163 1.0004 0.9957 1.0644 59,380,183 6.48%
2026 59,380,183 1.0023 0.9956 1.0495 62,462,836 12.01%
County Per Capita 2025-26 2026-27
Population Income Appropriation Appropriation Appropriation Factor Factor Factor Limit Limit

1.0023 X 1.0495 = 1.051913850 X $ 59,380,183 = $ 62,462,836 2026-27 2026-27 Percentage
Tax Appropriation of
Revenues Limit Limit
44,527,959 / $ 62,462,836 = 71%
Percentage of Appropriation
*FY 2020-21 ending and FY 2021-22 beginning Appropriation Limit includes an adjustment of $130,503 to address the annexed parcels from Santa Clara County. The Town of Los Gatos increased its base by $130,503 while the County of Santa Clara decreased its base with the same amount.
**The State issued a list in December 2022 per State Subventions Pursuant to Government Code Section 7903(AN) that listed the Town of Los Gatos needing to report $7 million State Subvention pass through grant. The Town is still under the Gann Appropriation Limit with the additional $7 million pass through grant from FY 2021-22.

APPROPRIATION LIMIT FACTORS
Appropriation Appropriation
June 30
FY 2026-27 Calculation Page 512
ITEM NO. 10.