The "Hometown Advantage" card, part of the town's push to encourage residents to shop locally, can be used in more than 70 local restaurants, shops and other businesses.

"It's a good promotional piece that makes it fun," said Danielle Surdin, economic vitality manager for the town of Los Gatos.

The card will give shoppers between 5- to 15-percent discounts, or a promotional gift, depending on the business. The card expires Sept. 30.

Surdin, who developed the idea, said this is the first year that the town has tried the rewards card but expects it to be a success.

The economic vitality program was launched in 2002 by the town council to focus on business retention and success.

"It's really a good program that helps explain the synergy between a strong business and vital community," Surdin said.

Tom Malech, owner of San Jose Fly Fishing Shop, participated to help boost the store's popularity.

"We moved here about a year ago and are doing anything to promote the store," Malech said.

The fishing shop will offer 10 percent off all shirts and Colombia clothing.

Surdin hopes the program offers Los Gatos residents an incentive to shop in the town, because the more they shop locally, the more they can see the sales tax dollars get back to the community.

"Sales tax dollars benefit the community, and supporting businesses keeps the town vital and strong through revenue," Surdin said.

While the card is new, some residents have already taken advantage of it.

At the Iron Skillet Cafe on Los Gatos Boulevard, employee Francisco Slores said he has about 10 customers a day who use the card. Customers showing the card at the time of purchase can get 15 percent off of all entrees, Slores said.

Genevieve Collonge, an employee at the Wooden Horse in King's Court Shopping Center, said about 20 people have used the card in the store so far.

Customers who use the card at the Wooden Horse will not receive a discount. However, 5 percent of the total sale will be discounted, and the proceeds will be donated to the Los Gatos Education Fund, Cologne said.

Surdin said that because some businesses decided to cooperate in the rewards club after the pamphlet was published, residents should visit www.losgatosca.gov for a complete list of participating businesses.