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Los Gatos council preserves option for a future revenue measure, authorizes consultants and seeks state sales‑tax exemption option
Summary
Facing projected structural pressures and multi‑million dollar capital needs, the council unanimously authorized staff to preserve options for a potential revenue measure, to seek state legislative authority to exceed the local 2% sales‑tax cap if needed, and to hire consultants (up to $80,000) for legal, financial and legislative work.
With the town facing projected long‑term gaps between revenue and rising operating and capital needs, the Los Gatos Town Council voted to preserve options for a potential revenue measure and to authorize an $80,000 consultant engagement to analyze options and pursue necessary legislative authority.
Administrative Services Director Christina Alfaro presented a 5‑year forecast and a list of unfunded needs that together range from roughly $286 million to $307 million depending on scope, including pavement and infrastructure (the largest line), a potential new consolidated police operations building and emergency operations center ($50–66 million estimate cited), town facility repairs, park rehabilitation and wildfire mitigation and preparedness projects. The Finance Commission had recommended preserving options and engaging advisors while waiting for NHA Advisors’ forecast before taking a final position.
Council member Hudis moved to authorize preserving options without committing to a tax, seek state legislative authority that would allow Los Gatos to exceed the 2% local sales‑tax cap if needed to create a competitive half‑cent option, and to engage legal, financial and legislative consultants with an $80,000 allocation from general‑fund reserves. The motion also asked staff to return with additional timing information about the likelihood and process for securing legislative authority. The council approved the motion unanimously.
Staff and council members emphasized that pursuing options now preserves flexibility and avoids a rushed choice later; they also stressed community outreach, a requirement to demonstrate operational efficiencies, and the political challenge of meeting two‑thirds or simple‑majority thresholds depending on measure type. Town staff will continue work with NHA Advisors, refine revenue‑option modeling (sales tax, parcel tax, utility taxes, special assessments, bonds and others) and report back with recommendation and timing considerations.
