By Clarence Cromwell
A swelling local economy had town finances so flush just halfway through the fiscal year that the Town Council on Feb. 18 restored a ranger position cut last spring and budgeted money for hiring in other departments as well. Friday library hours, also cut in last year's budget sessions, will be restored, thanks to a state grant.
Even better, no cuts are expected in upcoming budget sessions slated for March, Town Manager David Knapp said.
Less than a year ago, the council was forced to hatchet town services to make room for $500,000 in long-deferred street repairs. After four consecutive years of cuts, all that remained for cutting were popular services like the library, one of two park rangers and the town-funded KCAT radio station.
More recently, a healthy regional economy pumped up town building fees and sales tax and hotel tax coffers, Knapp explained. When the economic wave breaks, the flow of money is expected to decrease somewhat, but the town will still be doing better than a year ago, he said.
Funds from building fees and sales tax expand or contract with the economy and have so far galloped past predictions for the year. Licenses and permits are expected to surpass town estimates by $527,510 for the fiscal year. Sales tax, much of it from new car sales, could beat town estimates by $538,750 if it keeps coming in at the same rate. Altogether, $1.6 million more than budgeted is expected to flow into town coffers from various sources before the end of the budget year, June 30.
Some of the same activities that bring in the money will also cost the town some money. Building fees, for example, are tied to projects that require building inspections and other Planning Department services. The additional sales tax money, however, can all be spent and should be enough to fund the ranger position for the next few years, Knapp said.
Friday library hours, 10 a.m. to 5 p.m., will begin March 7, thanks to the state grant. The California Public Library Fund awarded Los Gatos $17,500 earmarked for the library, according to a budget report by Finance Director Michele Braucht.
Additionally, the Planning Department will once again stay open on Friday afternoons, and additional employees are to be hired in the Building and Engineering, Planning and Finance departments.
Town finance officials are already working on next year's budget. They'll show councilmembers the budget in mid-March; public hearings are expected to take place March 27 and June 16.
This article appeared in the Los Gatos Weekly-Times, March 5, 1997.
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