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Finance Commission

Regular Meeting

Los Gatos, CA · May 12, 2025

AgendaPacketMinutes

Minutes

TOWN OF LOS GATOS FINANCE COMMISSION MINUTES Minutes of the Finance Commission Regular Meeting May 12, 2025 The Finance Commission of the Town of Los Gatos conducted a regular meeting in person and via teleconference. THE MEETING WAS CALLED TO ORDER AT 5:33 P.M. ROLL CALL Present: Chair Linda Reiners, Vice Chair Ashby Monk, Commissioner Adam Fischer, Commissioner Phil Koen, Commissioner Joe Rodgers, Mayor Matthew Hudes, and Vice Mayor Rob Moore Town Staff Present: Town Manager, Chris Constantin; Finance Director, Gitta Ungvari; Town Clerk, Wendy Wood; and Finance and Accounting Manager, Eric Lemon. CONSENT ITEMS 1. Approve the Minutes of the April 14, 2025, Finance Commission Regular Meeting 2. Approve the Minutes of the April 28, 2025, Finance Commission Special Meeting 3. Approve the Minutes of the May 5, 2025, Finance Commission Special Meeting 4. Receive the Monthly Financial and Investment Report for March 2025. There was no public comment. MOTION: Motion by Commissioner Koen to approve the consent items. Seconded by Vice Chair Monk. VOTE: Motion passed unanimously. VERBAL COMMUNICATIONS There was no public comment. OTHER BUSINESS 5. Provide Recommendations to the Town Council Regarding the Proposed FY 2025-26 Operating and Capital Budgets, Including Budget Balancing Approaches The Chair opened the item for discussion. 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov PAGE 2 OF 3 The Commission discussed the item, asked questions, and provided feedback. Staff addressed the Commissioners’ questions. The Commission took a recess at 7:15 p.m. The Commission reconvened at 7:21 p.m. There was no public comment. Town Manager Constantin summarized the Commission’s recommendations as follows:  Avoid drawing on reserves unless absolutely necessary;  Balance the budget to zero or as close to zero as feasible;  Implement a targeted hiring freeze until a comprehensive five-year financial forecast is completed;  Engage an external financial consultant to assist in identifying opportunities to increase revenues and reduce expenditures;  Explore ways to reduce Workers’ Compensation and Liability insurance costs, implement safety wellness programs to reduce workplace injuries, and develop a comprehensive labor model to define service level targets and staffing needs;  Evaluate options to increase sales tax revenue, including contributions from unrepresented sectors such as auto dealerships;  Review planning and building fees to ensure all adjustments are considered;  Review Business License Tax being mindful that some of those are capped at a $3,000 amount in terms of invested income;  Determine whether we can recoup up to an additional $700,000 in interest income.;  Reassessing interest income protection to determine the feasibility of recovering up to an additional $700,000;  Evaluate the Town’s fleet of over 80 vehicles and construction equipment for potential liquidation and cost savings and consider leasing these vehicles for reduced ongoing maintenance costs;  Evaluate the tiered budget reductions options to determine how much could be used to achieve the goal of not using unassigned fund balances; and  Approve the use of 100% of the Measure G funds for operational expenses instead of the 50/50 split between operations and capital. MOTION: Motion by Chair Reiners to approve the set of Finance Commission recommendations to Town Council (as summarized by the Town Manager). Seconded by Commissioner Fischer VOTE: Motion passed unanimously. After further discussion, Town Manager Constantin summarized the Finance Commission recommendation for the five-year forecast as follows: PAGE 3 OF 3 The Financing Commission recommends that the Town Council not accept the current five-year forecast and wait until a consultant can come back with a more refined forecast for recommendation. MOTION: Motion by Commissioner Koen to approve the summary as read by the Town Manager. Seconded by Vice Chair Monk VOTE: Motion passed unanimously. After additional discussion, Town Manager Constantin summarized the Finance Commission recommendations regarding the Capital Improvement Program as follows:  Basing the Capital program on what is expected to be spent each year versus what is authorized to expend;  For project 9901 Street Repair and Resurfacing, the Town should tie street repair and resurfacing to a target Pavement Condition Index and the Town Council shall have a conversation about what that target should be; and  For the Highway 17 bridge design project (818-0803), the Town Council should consider stopping continued progress on that project and schedule further conversation and determine how to best prioritize capital projects and funding in the future. MOTION: Motion by Commissioner Koen to approve recommendations (summarized by the Town Manager). Seconded by Commissioner Rodgers. VOTE: Motion passed unanimously. ADJOURNMENT: The meeting adjourned at 8:35 p.m. This is to certify that the foregoing is a true and correct copy of the minutes of the May 12, 2025, regular meeting as approved by the Finance Commission. /s/ Eric Lemon, Finance and Accounting Manager

Agenda

TOWN OF LOS GATOS FINANCE COMMISSION AGENDA MAY 12, 2025 110 EAST MAIN STREET TOWN COUNCIL CHAMBERS 5:30 PM Linda Reiners, Chair Ashby Monk, Vice Chair Adam Fischer, Commissioner Phil Koen, Commissioner Joseph Rodgers, Commissioner Matthew Hudes, Mayor Rob Moore, Vice Mayor IMPORTANT NOTICE This is a hybrid meeting and will be held in-person at the Town Council Chambers at 110 E. Main Street and virtually through Zoom Webinar (log-in information provided below). Members of the public may provide public comments for agenda items in-person or virtually through the Zoom Webinar by following the instructions listed below. HOW TO PARTICIPATE The public is welcome to provide oral comments in real-time during the meeting in three ways: Zoom Webinar (Online): Join from a PC, Mac, iPad, iPhone or Android device. Please click this URL to join: https://losgatosca- gov.zoom.us/j/83324739120?pwd=ROVSrj37YUwahyFb4dlq2e3DLEo4W0.1 Passcode: 136033 You can also type in 833 2473 9120 in the “Join a Meeting” page on the Zoom website at and use passcode 136033. When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom. If you are participating by phone on the Zoom app, press *9 on your telephone keypad to raise your hand. Telephone: Please dial (877) 3361839 for US Toll-free or (636) 651-0008 for US Toll. (Conference code: 686100) If you are participating by calling in, press #2 on your telephone keypad to raise your hand. In-Person: Please complete a “speaker’s card” located on the back of the chamber benches and return it to the Town Clerk before the meeting or when the Chair announces the item for which you wish to speak. NOTES: Comments will be limited to three (3) minutes or less at the Chair’s discretion. If you are unable to participate in real-time, you may email to Clerk@losgatosca.gov the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment). All comments received will become part of the record. Deadlines to submit written comments are: - 11:00 a.m. the Thursday before the Commission meeting for inclusion in the agenda packet. - 11:00 a.m. the Friday before the Commission meeting for inclusion in an addendum. - 11:00 a.m. on the day of the Commission meeting for inclusion in a desk item. Persons wishing to make a visual presentation on an item listed under Other Business, must submit the presentation electronically to Clerk@losgatosca.gov no later than 3:00 p.m. on the day of the Commission meeting. Page 1 CALL MEETING TO ORDER ROLL CALL APPROVE REMOTE PARTICIPATION (This item is listed on the agenda in the event there is an emergency circumstance requiring a Commissioner to participate remotely under AB 2449 (Government Code 54953)). CONSENT ITEMS (Items appearing on the Consent are considered routine Town business and may be approved by one motion. Members of the public may provide input on any Consent Item(s) when the Chair asks for public comment on the Consent Items.) 1. Approve the Minutes of the April 14, 2025, Finance Commission Regular Meeting 2. Approve the Minutes of the April 28, 2025, Finance Commission Special Meeting 3. Approve the Minutes of the May 5, 2025, Finance Commission Special Meeting 4. Receive the Monthly Financial and Investment Report for March 2025 VERBAL COMMUNICATIONS (Members of the public are welcome to address the Commission on any matter that is not listed on the agenda and is within the subject matter jurisdiction of the Finance Commission. To ensure all agenda items are heard, this portion of the agenda is limited to 30 minutes. In the event additional speakers were not able to be heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment. Each speaker is limited to no more than three (3) minutes or such time as authorized by the Chair.) OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.) 5. Provide Recommendations to the Town Council Regarding the Proposed FY 2025-26 Operating and Capital Budgets, Including Budget Balancing Approaches ADJOURNMENT ADA NOTICE In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Clerk’s Office at (408) 354-6834. Notification at least two (2) business days prior to the meeting date will enable the Town to make reasonable arrangements to ensure accessibility to this meeting [28 CFR §35.102-35.104]. NOTE: The ADA access ramp to the Town Council Chambers is under construction and will be inaccessible through June 2025. Persons who require the use of that ramp to attend meetings are requested to contact the Clerk’s Office at least two (2) business days prior to the meeting date. Materials related to an item on this agenda submitted to the Commission after initial distribution of the agenda packets are available for public inspection in the Clerk’s Office at Town Hall, 110 E. Main Street, Los Gatos and on Town’s website at www.losgatosca.gov. Commission agendas and related materials can be viewed online at https://losgatos- ca.municodemeetings.com/. Page 2

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