Los Gatos council, finance panel study tax and financing options to address future budget gaps

Los Gatos officials on a joint special meeting reviewed a range of revenue and capital‑financing options on a consultant’s recommendation and unanimously approved a staff request to publish FAQs summarizing the study session.

Christine Al Farro, the town’s administrative services director, introduced presenters Wy Fox and Jim Morris of Urban Futures Inc., saying the work is intended to “provide additional information for the finance commission and the town council on revenue options” and not to recommend a specific November measure.

The consulting team framed the discussion around two illustrative targets: a $5 million annual operating revenue goal and a $100 million capital financing example. Consultant Wy Fox said the town’s current combined sales tax is 9.875% and that, in the consultants’ model, an additional half‑cent transaction and use tax (TUT) would generate about $5.3 million annually beginning in fiscal 2027 — but likely would require special legislation to exceed the town’s remaining 0.125% of regional TUT capacity.

“We did not select for further evaluation at this time” every possible tax, Fox said, but noted trade‑offs: sales tax can be volatile…