FY 2019/20 Budget at a Glance
The Town Council of Los Gatos unanimously adopted a balanced budget for the Fiscal Year 2019/20. The Town's fiscal year runs from July 1, 2019 through June 30, 2020. Each fiscal year the budget is adopted in June following a discussion of Council Strategic Priorities and a public hearing process. You can view the Town Budgets on our website.
For Fiscal Year 2019/20, the total Operating Budget Expenditure is programmed for $45.2 million, excluding Capital Transfers. In addition to the Operating Budget, the Council annually approves the Capital Improvement Budget which has $13.2 million in new funding. The Operating Budget funds day-to-day Town services while the Capital Improvement Budget funds street maintenance, park improvements, and other facility upgrades.
FY 2019/20 General Fund Operating Expenditures
$45.2 Million (Excluding Capital & Internal Service Transfers)
The allocation of funding for key Town services aligns with the Town goals of Public Safety, Quality Public Infrastructure, Community Character, Good Governance, Fiscal Stability, and Civil Enrichment. As a service organization the majority of expenses are associated with the human capital necessary for the provision of those services. As the table below illustrates, since 2001 the Town has reduced its full-time equivalent (FTE) employees by 17.2% to 149 FTE employees.
In FY 2019/20, the Town continued to endeavor to find cost containment strategies. One of the major cost drivers affecting the Town over the past decade has been increases in pension and Other Post-Employment Benefits (OPEB). During the most recent labor negotiations, the Town’s bargaining groups and all unrepresented employees partnered with the Council to eliminate the Town’s existing retiree healthcare benefit prospectively. It is anticipated that this collaboration will yield significant savings in the future. Further details regarding Town Pension and OPEB Plans is available on the Finance Department's webpage.
Where Does the Money Come From?
FY 2019/20 General Fund Operating Revenue - $45.3 million
In FY 2018/19, the Town Council and the Town Finance Committee reviewed and ultimately determined to place a 1/8 sales tax ballot measure on the November 2018 ballot. The passage of the measure is projected to add $800,000 in additional revenue annually dedicated solely to Los Gatos and the critical services offered to residents.
In addition, in FY 2018/19, the Town Council approved an ordinance allowing regulated short-term rentals in Town. The regulations were designed to balance the rights of homeowners to rent their homes on a short-term basis while also protecting neighbors from nuisance situations. The ordinance also established that short-term rentals are subject to the Town’s 12% Transient Occupancy Tax (TOT) currently paid by hotel guests. The anticipated volume of short-term rentals is anticipated to generate another $200,000 in annual TOT collection.
How Is Property Tax Distributed?
- The Town receives $9.30 of every $100 collected in property tax paid by property owners.
- The Town receives 1.125 cents of the 9.125 cents of sales tax paid per dollar of taxable sales generated in Town.