Town staff came into the May 20 Council meeting proposing nearly a million dollars in operations cuts, as local officials fear the Donald Trump Administration could cut key funding programs—and some revenue-generating ideas (such as pot dispensaries) weren’t approved in recent years.
But even with this $810,000 slash to services (which was meant to deal with the forecast $3.7 million deficit), property tax revenue and income revenue increases ($200,000 and $180,000 respectively), along with a variety of additional positive income surprises, this still left a $1.8 million deficit.
Staff was recommending putting Measure G sales tax funds towards operations, using about $1 million from reserves to balance the budget, and reducing grants to nonprofit partners somewhat.
Vice Mayor Rob Moore said he was concerned by proposed cuts to the grants program.
“As the federal and state government are pulling back from funding nonprofits and supporting our community partners, I think the Town needs to step up, not step back,” he said, bringing up something his former boss, Assemblymember Gail Pellerin, said during the last State budget cycle. “She kept harkening back to the phrase, We cannot balance our budget on the backs of our most vulnerable…I can’t think of a time in recent history when it’s been more important for governments to invest in our nonprofit community partners.”
Councilmember Maria Ristow called the work of local volunteer nonprofit partners “the single most effective way to prevent homelessness.”
Staff had proposed cutting the program to $126,800. It had previously been at $154,000 before pandemic relief funds helped swell those coffers to $264,000 in 2022.
“We don’t have a lot of money to give away this year at all,” she said. “We have a deficit as we continue throughout the next five years. And I think we have to be conservative.”
Moore made a motion to allocate $203,500 to the community grants program.
“I recognize that we can’t do the $400,000 we did last year, or the $300,000 (of) the year before,” he said. “I think come August we’ll have a lot more clarity on how congressional funding cuts—through budget reconciliation—(will) impact our community.”
He noted that Medicaid and food stamps (SNAP) are two of the federal programs that could face cuts.
But his motion didn’t find a second.
Councilmember Rob Rennie said he appreciated the way staff approached the problem, but said he also understands the desire to put more money in.
“What we’re really trying to do is be ready to react to a greater need that could occur—but might not occur,” he said.
In the end, Council voted 4-1 (with Badame against) to earmark $155,000 for community grants, but to wait until later in the year to divvy it up.
Rennie found an interesting solution for the group of residents who fear eucalyptus trees in the Hilow Road area are a safety risk—to use emergency funds. This idea was approved unanimously.
Capital outlay
Staff grouped capital items into categories, with the top tier being for the most critical projects.
Ristow said she agreed with staff’s support for a bicycle and pedestrian bridge plan.
The Finance Commission had recommended sidelining that project.
Los Gatos would lose out on massive grants if the initiative is paused, she added, noting it’s been a priority for years.
Ristow believes the bridge is an important part of dealing with incoming housing development.
“It’s the only way we’re ever going to decrease congestion,” she said. “And for anybody who doesn’t think that this bridge is important, I challenge you to get on a bike with me and sit in that, like, two-foot-wide space between SUVs and a tall curb.”
Mayor Matthew Hudes said the Pinehurst Community Garden project needs to remain in Los Gatos’ sights.
“It’s one of the things that actually brings people together of all economic backgrounds, and allows people to share not only their love, but also their food,” he said.
A motion from Councilmember Ristow, seconded by Moore, approved the tiered CIP program, with the Pinehurst Community Gardens project elevated to Tier 2, Class 2.
However, Councilmember Badame voted against, because it included the Highway 17 bike and pedestrian bridge as one of the action items.
