HomeMy WebLinkAbout119-Reference Section.pdfC ITY OF SARATOGA
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F UND DESCRIPTIONS
The basic accounting and reporting entity for the City of Saratoga is a fund. A fund is a fiscal and
accounting entity used to record all financial transactions related to the specific purpose for which the
fund was created. Funds are established for the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations, restrictions, or limitations.
Funds used in government are classified into three broad categories: governmental, proprietary and
fiduciary. Governmental funds include activities usually associated with a typical state or local
government's operations (public safety, general government activities, etc.) Proprietary funds are used in
governments to account for activities often found in the private section (utilities, stadiums and golf
courses are prime examples). Trust and Agency funds are utilized in situations where the government is
acting in a fiduciary capacity as a trustee or agent. The various funds are grouped in fund types and
categories as follows:
G OVERNMENTAL F UNDS
Includes activities usually associated with governmental entity operations, including public safety,
planning and building services, parks and public works, and general administrative functions.
General Fund
Special Revenue Funds
Debt Service Funds
Serves as the City’s chief operating fund. All general tax revenues and
other receipts not allocated by law or some other contractual agreement
to other funds are accounted for in the General Fund. Expenditures of
this fund include the general operating expenses traditionally associated
with governments such as city administration, development services,
public works, and public safety.
Special Revenue Funds are used to account for revenues that are legally
restricted to expenditures for specific purposes. The City of Saratoga
has the following types of Special Revenue Funds:
• Community Development Block Grant Funds – to account for
federal block grant funds received for public service activities,
ADA projects, and program administration fees.
• Landscape & Lighting District Funds – Saratoga currently has 25
special district funds which voted to have the City provide
oversight and maintenance of trees, landscaping, irrigation
systems, and lighting systems in neighborhood and commercial
areas. These funds account for revenues and expenditures
Debt Service Funds are used to account for the acquisition of resources
and the payment of long-term debt on City obligations.
• 2001 Series General Obligation Debt – established to account for
the obligation incurred under the citizen approved 2001 General
Obligation Bond debt for the Library remodel.
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Capital Project Funds: Capital Project Funds are used to account for the acquisition,
construction, and improvement of capital infrastructure. The City
budgets and accounts for capital projects in:
• Capital Project Funds – established to provide resources for
capital projects funded from accumulated reserves and designated
capital revenues.
• Development Impact Funds – accounts for revenues restricted for
specific capital project uses.
• Grant Project Fund – budgets and accounts for projects funded in
whole or in part by grant revenues.
• Gas Tax Fund – budgets and accounts for revenues and
expenditures pertaining to the maintenance and construction of
City Streets.
P ROPRIETARY F UNDS
There are two classifications of proprietary funds: Enterprise Funds and Internal Service Funds.
Enterprise Funds are used to account for activities that are operated in a manner similar to a private
business enterprise, where the cost of the goods are to be financed or recovered primarily through user
charges. The City of Saratoga does not currently utilize Enterprise Funds.
Internal Service Funds Used to account for services provided to departmental programs by
City-wide administered programs and staff. The City has several of
these types of funds:
• Liability/Risk Management Insurance Fund – Accounts for
insurance premiums, self-insured portion of claims, and
administrative costs associated with settling claims. Charges are
allocated to programs based upon liability risk and claim
occurrence history.
• Worker's Compensation Self-insurance Fund - Accounts for
insurance premiums, self insured portion of claims, and
administrative costs associated with settling claims. Charges made
to operating departments are based on liability risk and claim
occurrence history.
• Office Support Services Fund – Photocopy equipment, postage
and bulk mail meter expenses are controlled at one source point
and expended to the departments as goods or services are utilized.
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• IT Services Fund – Information Technology Services supports the
delivery of technology based services and infrastructure, including
desktop support, network systems, technology upgrades and
initiatives, communication systems, and associated IT equipment.
• Vehicle & Equipment Maintenance Fund - Accounts for the cost
of operating and maintaining vehicles and equipment used for
service operations in various City departments.
• Building Maintenance Fund – Accounts for operational costs
associated with building maintenance. Includes custodial supplies
and services, maintenance and repair, utilities, and staffing costs.
• Vehicle & Equipment Replacement Fund – Established to
accumulate funding for the replacement of vehicles and equipment.
R eplacement costs are charged to departments over the asset’s life
span reflective of usage.
• IT Equipment Replacement Fund – Established to accumulate
funding for the replacement of information technology equipment.
Replacement costs are charged to departments over the assets
lifespan, reflective of usage.
F IDUCIARY F UNDS
Fiduciary Funds are used to account for assets held by the City acting in a fiduciary capacity for other
entities and individuals. Such funds are operated to carry out the specific actions of trust agreements,
ordinances and other governing regulations. There are two categories of fiduciary funds, Trust and
Agency.
Trust Funds
Agency Funds
Accounts for assets held by the City in a trustee capacity where the City
would oversee the use of resources in accordance with a formal trust
agreement. The City does not currently administer this fund type.
Accounts for assets held by the City in the capacity of an agent for
individuals, governmental entities, and non-public organizations. The
City currently administers two of these funds.
• KSAR Trust Fund – Accounts for assets deposited with the City
by the local public television foundation board. Funds are held in
trust and distributed to the KSAR board when requested.
• 2001 Library Capital Project Fund – Accounts for the remaining
bond funds from the 2001 GO Bond. Fund use is restricted for use
toward capital improvements of the City’s library building under
direction of the Library Commission.
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LIST OF FUNDS
GENERAL FUND ....................................................................................................................................... 100
SPECIAL REVENUE FUNDS
Community Development Block Grant Fund ..................................................................................... 211
Saratoga Housing & Rehabilitation Program Fund ............................................................................ 212
Landscape & Lighting Assessment District Funds ...................................................................... 231-277
INTERNAL SERVICE FUNDS
Risk Management / Liability Fund ..................................................................................................... 611
Workers Compensation Fund ............................................................................................................. 612
Office Support Services Fund ............................................................................................................ 621
Information Technology Services Fund ............................................................................................. 622
Vehicle & Equipment Maintenance Fund .......................................................................................... 623
Building Maintenance Fund ............................................................................................................... 624
Equipment Replacement Fund ........................................................................................................... 631
IT Equipment Replacement Fund ....................................................................................................... 632
DEBT SERVICE FUNDS
2001 Series G.O. Bonds .................................................................................................................... 311
TRUST AND AGENCY FUNDS
Library Capital Improvement Fund .................................................................................................... 711
KSAR Fund ........................................................................................................................................ 712
CAPITAL PROJECT FUNDS
Capital Improvement Fund – Streets Projects .................................................................................... 411
Capital Improvement Fund – Parks Projects ...................................................................................... 412
Capital Improvement Fund – Facility Projects ................................................................................... 413
Capital Improvement Fund – Administrative Projects ....................................................................... 414
Tree Fine Fund ................................................................................................................................... 421
Grant Funded Projects Fund ............................................................................................................... 431
Gas Tax Fund .................................................................................................................................... 481
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LIST OF PROGRAMS
GENERAL FUND
Council & Commissions
City Council ..................................................................................................................................... 1101
Commissions .................................................................................................................................... 1201
City Manager’s Departments
City Manager’s Office ...................................................................................................................... 2101
City Clerk’s Office ........................................................................................................................... 2201
Human Resources Office .................................................................................................................. 2301
Finance & Administrative Services Department
Financial Services ............................................................................................................................. 3101
Community Development Department
Development Services ...................................................................................................................... 4101
Advanced Planning ........................................................................................................................... 4102
Code Compliance ............................................................................................................................. 4103
Building & Inspection Services ........................................................................................................ 4201
Public Works Department
General Engineering ........................................................................................................................ 5101
Development Engineering ................................................................................................................ 5102
Environmental Services .................................................................................................................... 5103
Streets & Storm Drains ..................................................................................................................... 5201
Parks & Landscape Maintenance ..................................................................................................... 5301
Recreation Department
Recreation Services .......................................................................................................................... 6101
Teen Services .................................................................................................................................. 6102
Facility Rentals ................................................................................................................................. 6201
Public Safety
Public Safety Services ...................................................................................................................... 7101
Emergency Preparedness .................................................................................................................. 7102
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I NTERNAL SERVICE F UND P ROGRAMS
Finance & Administrative Services Department
Office Support Services Fund .......................................................................................................... 3102
Information Technology Services Fund ........................................................................................... 3201
IT Equipment Replacement Fund ..................................................................................................... 3202
Public Works
Vehicle & Equipment Maintenance Fund ........................................................................................ 5202
Vehicle & Equipment Replacement Fund ........................................................................................ 5203
Recreation & Facilities Department
Building Maintenance Fund ............................................................................................................. 6202
Non-Departmental
Risk Management / Liability Fund ................................................................................................... 8401
Workers Compensation Fund ........................................................................................................... 8501
SPECIAL R EVENUE F UNDS
Community Development Department
CDBG Program Fund ....................................................................................................................... 4301
Saratoga Housing & Rehabilitation Program (SHARP) ................................................................... 4302
Public Works
Landscape & Lighting Assessment District Funds ........................................................................... 5302
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C ITY OF SARATOGA STATISTICS
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STATISTICAL CATEGORIES
City Demographics
Community Facilities
Climate
Population Factors
• City Population
• Population by Age Groups
• Population Ethnicity
• Population Occupations
• Annual Income
• Population Education
Housing Factors
Economic Factors
• Net Taxable Assessed Value History
• Property Tax Assessments by Category
• Top Property Taxpayers
• Property Tax Allocations
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Average Temperatures
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CITY DEMOGRAPHICS
Current City Area: 12.1 square miles
Incorporated: 1956
Elevation: 410 feet
Miles of Streets: 135.2 miles
Number of Traffic Signals: 25
Number of Registered Voters: 19,009
Form of Government: Council/Manager
City Employee/Citizen Ratio: 1: 578
COMMUNITY FACILITIES
87 acres of parklands
14 neighborhood and specialty parks
250 acres of designated open space
Joan Pisani Community Center
Community Theater
Saratoga Prospect Center
Saratoga Public Library and Book-Go-Round
Saratoga Historical Museum and Pioneer McWilliams House
CLIMATE SARATOGA US
Average Rainfall: 24.7 inches 36.6 inches
Average Days of Precipitation 58 days 101 days
Average temperature from May to October 50 – 86 degrees Fahrenheit
Average temperature from November to April 40 – 65 degrees Fahrenheit
Source: City of Saratoga
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POPULATION FACTORS
Data from CA Department of Finance
1970 Census: 26,810
1980 Census: 29,261
1990 Census: 28,061
2000 Census: 29,849
January 1, 2010 31,997
State ranking in population: 232 of 480 cities
Population by Age Groups
5.6%5.4%
11.3%9.0%
7.0%
2.4%
6.3%
9.6%
16.0%
19.3%
8.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Under
5
5-9 10-17 18-24 25-34 35-44 45-54 55-64 65-74 75-84 85 and
over
Population by Ethnicity
0%10%20%30%40%50%60%
White / Caucasian
Black / African American
Amer. Indian/Alaska Natl.
Asian/Pacific Islanders
Other/Multiple Ethnic Groups
Source: Claritas Reports, Department of Finance
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Population Occupations
0%5%10%15%20%25%30%35%40%
Mgmt, Business, & Financial
Professional Occupations
Services
Sales and Office
Farming, Fishing, Forestry
Construction and Maintenance
Production and Transportation
Annual Income
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Less Than
$50,000
$50,000 -
$99,999
$100,000 -
$149,999
$150,000 -
$249,999
$250,000 -
$499,999
$500,000 or
more
Source: Claritas Reports
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Population Education
0%5%10%15%20%25%30%35%40%
Not a H.S. Graduate
High School Graduate
Some College/AA Degree
Bachelor's Degree
Master's Degree
Professional Degree
Doctorate Degree
Population Education
3.6%7.7%
20.6%24.4%
4.7%4.5%
34.5%
Not a H.S. Graduate High School Graduate
Some College/AA Degree Bachelor's Degree
Master's Degree Professional Degree
Doctorate Degree
Source: Claritas Reports
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H OUSING F ACTORS
Housing Values
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Less than
$500,000
$500,000 -
$749,999
$750,000 -
$999,999
$1,000,000 or
more
Housing by Resident Ownership
Renter
Occupied
10.3%
Owner
Occupied
89.7%
Source: Claritas Reports
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E CONOMIC F ACTORS
Lien Year Secured Unsecured SBE Nonunitary Net Total AV %Change
1998/99 4,387,050,479$ 40,186,229$ 5,406,344$ 4,432,643,052$
1999/00 4,784,312,421 34,420,162 5,013,204 4,823,745,787 8.82%
2000/01 5,292,676,050 38,834,863 116,518 5,331,627,431 10.53%
2001/02 6,227,826,411 42,904,985 729,714 6,271,461,110 17.63%
2002/03 6,441,614,970 46,485,308 1,150,691 6,489,250,969 3.47%
2003/04 6,912,443,373 41,386,146 140,256 6,953,969,775 7.16%
2004/05 7,353,900,797 39,781,926 175,015 7,393,857,738 6.33%
2005/06 8,100,857,149 43,433,397 163,247 8,144,453,793 10.15%
2006/07 8,717,263,637 38,112,166 134,221 8,755,510,024 7.50%
2007/08 9,295,850,465 34,102,900 - 9,329,953,365 6.56%
2008/09 9,893,469,336 40,892,307 - 9,934,361,643 6.48%
Net Taxable Assessed Value History
1998/99 - 2008/09 Taxable Property Values
$-
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
$8,000,000,000
$9,000,000,000
$10,000,000,000
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Secured Unsecured SBE Nonunitary
Source: HdL,Coren & Cone Reports
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Category Parcels Assessed Value Net Taxable Value
Residential 10,508 9,605,309,181$ 9,501,807,361$
Commercial 159 213,951,532 213,951,532
Industrial 3 9,466,806 9,466,806
Dry Farm 4 2,591,550 2,591,550
Governmental 9 11,927,032 481,642
Institutional 24 51,051,688 8,153,988
Irrigated 22 7,030,715 7,030,715
Miscellaneous 43 15,283,764 15,283,764
Recreational 9 6,406,691 6,406,691
Vacant Land 260 128,898,651 128,295,287
Exempt 212 - -
SBE Nonunitary *[6]- -
Unsecured *[482]43,932,770 40,892,307
Totals 11,253 10,095,850,380$ 9,934,361,643$
* not included in parcel total
FY 2008/09 Assessments
Basic Property Value Table
Assessed Value Net Taxable Value
Residental
95%
Commercial
2%
Other
3%
Commercial
2%
Other
2%
Residential
96%
Source: HdL,Coren & Cone Reports
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Owner Parcels Assessed Value
Cupertino Villages Association LLC 1 34,205,230
Quito Village Associates LLC 1 18,011,640
John M. Sobrato 2 17,296,752
Gregpenn Properties LLC 1 16,969,700
San Jose Water Works 31 13,189,518
Argonaut Associates LLC 6 12,369,458
Keller Family Living Trust 2 12,307,818
Stephen J. Luczo 3 10,607,886
Ashok Krishnamurthi Trustee 2 10,234,485
Coyote Properties IV LLC 2 10,043,202
Top Property Taxpayers
FY 2008/09
Source: HdL,Coren & Cone Reports
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Property Tax Allocation
FY 2008/09
Schools
54.24%
Other Special
Districts
4.71%City of
Saratoga
5.46%
Fire District
10.23%
ERAF
10.75%
Santa Clara
County
13.00%
SCVWD
1.61%
Agency Allocation %Allocation $
Santa Clara Valley Water District 1.61%1,598,700
Other Special Districts 4.71%4,682,100
City of Saratoga 5.45%5,419,200
SCC Fire / Saratoga Fire District 10.23%10,163,200
Educational Relief Augmentation Fund 10.75%10,680,100
Santa Clara County 13.00%12,918,300
Schools 54.24%53,882,000
100.00%99,343,616
Average Property Tax Allocation
Source: Santa Clara County and HdL, Coren & Cone Reports
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LIST OF ACRONYMS
Following is a list of acronyms common to local government terminology:
AB Assembly Bill
ABAG Association of Bay Area Governments
ADA American Disabilities Act
ARS Automated Reporting System
BMP Below Market Price (Housing)
CAFR Comprehensive Annual Financial Report
CDBG Community Development Block Grant
CEQA California Environmental Quality Act
CERT Community Emergency Response Team
CLEEP California Law Enforcement Equipment Program
CIP Capital Improvement Program
COP Certificates of Participation
CSMFO California Society of Municipal Finance Officers
CSO Community Services Officer
CY Current Year
DART Disaster Aid Response Team
DOJ Department of Justice
EOC Emergency Operations Center
ERAF Educational Revenue Augmentation Fund
FEMA Federal Emergency Management Agency
FTE Full-Time Equivalent (2080 annual work hours)
FY Fiscal Year
GAAP General Accepted Accounting Principals
GASB Governmental Accounting Standards Board
GFOA Government Finance Officers Association
GIS Geographical Information System
GO General Obligation (Bond)
HCD Housing and Community Development
HHW Household Hazardous Waste
HUD Housing & Urban Development
HVAC Heating / Ventilation & Air Conditioning
IT Information Technology
JPA Joint Powers Authority
LAIF Local Agency Investment Fund
LLD Landscaping & Lighting District
LT Long-Term (as in Long-Term Notes Receivable)
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L IST OF ACRONYMS
MIS Management Information Systems
MOU Memorandum of Understanding
MVLF Motor Vehicle in Lieu Fee (see also VLF)
NPDES National Pollutant Discharge Elimination System
OCJP Office of Criminal Justice Planning
OES Office of Emergency Services
PCI Pavement Condition Index
PERS Public Employees Retirement System
POA Police Officers Association
PW Public Works Department
PSAP Public Safety Answering Point
PY Prior Year
RDA Redevelopment Agency
SB Senate Bill
SCC Santa Clara County
SLESF Supplemental Law Enforcement Services Fund Grant
TDA Transportation Development Act
TEA Tax Equity Allocation
TFCA Transportation Fund for Clean Air
TOT Transient Occupancy Tax
VLF Motor Vehicles In Lieu Fee (see also MVLF)
VTA Valley Transportation Agency
WVSD West Valley Sanitation District
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GLOSSARY
Accounting System - The set of records and procedures that are used to record, classify, and report
information on the financial status and operations of the City.
Accrual Basis Accounting - Under this accounting method, transactions are recognized when they occur,
regardless of the timing of related cash receipts and disbursements.
Ad Valorem - Latin for “in proportion to the value”. This refers to property taxes levied on value and
includes the General Obligation (G.O.) Bond rates added to the 1% rate allowed by Prop. 13. These rates
are applied to the secured, unsecured, supplemental, and other miscellaneous tax rolls.
Adoption - Formal action by the City Council, which sets the spending limits for the fiscal year. The
City's budget is adopted by Council resolution.
Agency Fund – A fund used to account for assets held by the City in the capacity of an agent for
individuals, organizations, or other governmental entities.
Annual Budget - A budget applicable to a single fiscal year.
Appropriation - An authorization made by the City Council, which permits officials to incur obligations
against and to make expenditures of government resources. Appropriations are typically granted for a
one-year period.
Assessed Valuation - A value established for real property for use as a basis in levying property taxes.
For all agencies in the State of California, the County for the secured and unsecured property tax rolls
establishes assessed value; the utility property tax roll is valued by the State Board of Equalization.
Under Article XIII of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978),
properties are assessed at 100% of full value. Proposition 13 also modified the value of real taxable
property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment,
subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full
value are allowed for property improvements or upon change of ownership. Personal property is
excluded from these limitations, and is subject to annual reappraisal.
Assessment Fund –A fund used to account for special levies made against certain properties to defray
part or all of the costs of a specific improvement or service deemed to primarily benefit those parties.
Audit - Prepared by an independent Certified Public Accountant (CPA), the primary objective of an audit
is to determine if the City's Financial Statements present fairly the City's financial position and results of
operations in conformity with generally accepted accounting principles. In conjunction with their
performance of an audit, it is customary for an independent auditor to issue a Management Letter stating
the adequacy of the City's internal controls as well as recommending improvements to the City's financial
management practices.
Bonds - A bond is a written promise to pay a specified sum of money (called the face value or principle
amount) at a specified date or dates in the future (called the maturity date) together with period interest at
a specified rate. Bonds are typically used to finance capital facilities.
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G LOSSARY
Budget - As the City's financial operating plan for the fiscal year, the budget displays the estimated
expenditures (costs) for providing services and the estimated sources of revenue (income) to pay for them.
Once the City Council adopts the budget, the total becomes the maximum spending limit. Saratoga’s
budget encompasses fiscal year (July 1, through June 30).
Budget Amendment - The Council has the sole responsibility for adopting the City budget, and may
amend or supplement the budget at any time after adoption. The City Manager has the authority to
approve administrative adjustments to the budget as outlined in the Financial and Administrative Policies
set by Council.
Budget Calendar - The schedule of key dates which the City follows in the preparation and adoption of
the budget.
Budget Document - The official financial spending and resource plan submitted by the City Manager and
adopted by the City Council explaining the approved budget to the public and City Council.
Budget Message - Included in the opening section of the budget, the Budget Message provides the
Council and the Public with a general summary of the most important aspects of the budget, comparative
data from previous fiscal years, goals and objectives, and the views and recommendations of the City
Manager.
Budget Overview - This section provides an overview of the changes adopted in the budget. Additionally,
the significant impacts of budgetary changes are outlined along with dollar amounts (increase/decrease).
Budget Policies - General and specific guidelines adopted by the Council that governs the financial plan's
preparation and administration.
Building Permit - Fee required for new construction or for any alteration or addition to a residence or
commercial building. The fee is based on square footage and valuation. Electrical or
plumbing/mechanical work will require a similar permit.
Business License Tax – A tax imposed on those conducting business within the City limits. Business
License Tax is a non-regulatory tax implemented for the purpose of raising revenue to support General
Fund activities.
Capital Acquisitions/Assets - Assets exceeding $10,000 and having a useful life of several years. Capital
assets are also called ‘Fixed Assets’ and include land, buildings, machinery, and equipment.
Capital Expenditures – Funds spent for the construction, improvement, or rehabilitation of CIty
infrastructure.
Capital Improvement Plan (CIP) - The plan or schedule of expenditures for major construction of roads,
sidewalks, City facilities and/or park improvements and for the purchase of equipment. The City of
Saratoga's CIP follows a five-year schedule. Although the City adopts the CIP budget in a process that is
separate from the adoption of the budget, the budget incorporates the first-year of the five-year CIP.
Capital Projects - Expenditures that have a value of $25,000 or more which result in the acquisition of,
construction of, rehabilitation of or additions to, infrastructure and fixed assets with a useful life of at
least 5 years at a fixed location.
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G LOSSARY
Capital Projects Fund - In governmental accounting, a fund that accounts for financial resources to be
used for the acquisition or construction of capital facilities. The total cost of a capital project is
accumulated in a single expenditure account which accumulates until the project is completed, at which
time the fund ceases to exist.
Cash Basis Accounting - A basis of accounting under which transactions are recognized only when cash
is received or disbursed.
Community Development Block Grant (CDBG) - Federal grant funds distributed from the U.S.
Department of Housing and Urban Development that are passed through to the City. The City primarily
uses these funds for housing rehabilitation, public improvements and local social programs.
Comprehensive Annual Financial Report (CAFR) - The official financial report of the City. It includes
an audit opinion as well as basic financial statements and supporting schedules necessary to demonstrate
compliance with finance-related legal and contractual provisions.
Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise
budgeted.
Contingent Liabilities - Items which may become liabilities of the City but are undetermined at a given
date, such as pending lawsuits, unsettled disputed claims, unfilled purchase orders and uncompleted
contracts.
Contract Services - Services provided to the City from the private sector or other public agencies.
Debt Service - Payment of the principal and interest on an obligation resulting from the issuance of bonds,
notes, or Certificates of Participation (COPs).
Debt Service Fund - A fund established to account for the accumulation of resources for, and the
payment of, general long-term debt principal and interest.
Deficit - The excess of liabilities over assets.
Department - A major organizational unit of the City, which has been assigned overall management
responsibility for an operation, or a group of related operations within a functional area. In Saratoga,
Department Heads are the chief administrators within a department.
Encumbrances - Commitments against an approved budget for unperformed (executory) contracts for
goods or services. They cease to be encumbrances when the obligations are paid or otherwise terminated.
Enterprise Funds - Established to account for the financing of self-supporting activities of governmental
units, which render services on a user charge basis to the general public.
Equipment Replacement Fund – This fund is used to account for the replacement of existing fixed assets
as equipment, machinery or building improvements become unserviceable or obsolete.
Expenditure -The outflow of funds paid or to be paid for an asset obtained or goods and services
obtained. Note: An encumbrance is not expenditure; an encumbrance reserves funds to be expended. (See
encumbrances.)
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Fiduciary Funds – Used to account for assets held by the City acting in a fiduciary capacity for other
entities and individuals. Such funds are operated to carry out the specific actions of trust agreements,
ordinances and other governing regulations. There are two categories of fiduciary funds: Trust and
Agency.
Fiscal Year - A 12-month period to which the annual operating budget applies and at the end of which the
City determines its financial position and results of its operations. The City’s fiscal year runs from July 1st
to June 30th.
Fixed Assets - Non-consumable assets of long-term nature such as land, buildings, machinery, furniture,
and the other equipment. The City has defined such assets as those with an expected life in excess of one
year and value in excess of $10,000.
Franchise Fees - Imposed on utility companies for the privilege of doing business in the City. Fees are
usually based upon a percentage of gross revenue derived from business conducted in the City.
Full-time Equivalents (FTE) - The amount of time a position has been budgeted for in terms of the
amount of time a regular, full-time employee normally works in a year. Full-time employees are paid for
2,080 hours in a year equating 1.0 FTE. Correspondingly, a part-time employee who worked 1,040 hours
would equate to 0.5 FTE.
Fund - An independent fiscal and accounting entity with a self-balancing set of accounts in which cities
record financial transactions relating to revenues, expenditures, assets and liabilities. Each fund type
typically has a unique funding source and purpose. Establishing funds enables the town to account for the
use of restricted revenue sources and carry on specific activities or pursue specific objectives.
Fund Accounting - System used by non-profit organizations, particularly governments. Since there is no
profit motive, accountability is measured instead of profitability. The main purpose is stewardship of
financial resources received and expended in compliance with legal requirements.
Fund Balance - Also known as financial position, fund balance is the excess of current assets over
current liabilities, and represents the cumulative effect of revenues and other financing sources over
expenditure and other financing uses.
GAAP (Generally Accepted Accounting Principles) - Uniform minimum standards for financial
accounting and reporting. They govern the form and content of the basic financial statements of the City.
Gann Appropriation Limit – This is the common name of Proposition 4, approved by voters on
November 6, 1979 which mandated an appropriation limit on the amount of tax revenues that government
jurisdictions may appropriate within a fiscal year. This bill was named after Paul Gann, who was a co-
sponsor of the famous Proposition 13 initiative enacted by the voters of California on June 6, 1978 which
resulted in a cap on property taxes in the state, and a prominent author and advocate of this subsequent
spending limitation bill.
Gas Fund Tax - The Gas Fund Tax is used to account for revenues and expenditures apportioned under
the Streets and Highways Code of the State of California. Expenditures may be made for any street
related purpose in the Town’s system of streets.
General Fund - In governmental accounting, fund used to account for all assets and liabilities of a non-
profit entity, except those particularly assigned for other purposes in another more specialized fund. It is
the primary operating fund of the Town.
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General Government – City Council, City Manager, City Clerk, City Attorney, Human Resources,
Finance, Community Development, Public Works, Recreation, and Public Safety.
General Liability Self Insurance Fund - The General Liability Self Insurance Fund is used to provide the
City with liability and property insurance. Coverage is provided through the City participation in a joint
powers agreement through (ABAG) Associations of Bay Area Governments.
General Obligation Bond – A municipal bond backed by the credit and "taxing power" of the issuing
jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the
belief that a municipality will be able to repay its debt obligation through taxation or revenue from
projects. No assets are used as collateral.
Government Finance Officers Association (GFOA) – GFOA is the professional association of
state/provincial and local finance officers in the United States and Canada, and has served the public
finance profession since 1906. Approximately 16,000 GFOA members are dedicated to the sound
management of government financial resources.
Governmental Funds – the fund used to account for all assets and liabilities of a government agency,
except those particularly assigned for other purposes in another more specialized fund. There are five
different types of governmental funds: the general fund (which is the primary operating fund), special
revenue funds, debt service funds, capital project funds, and permanent funds.
Grant - External contributions, and/or gifts of cash, or other assets typically from another governmental
entity to be used or expended for a specific purpose, activity, or facility. An example is Community
Development Block grant funding from the Federal Government.
Infrastructure – The basic facilities, services, and installations needed for the functioning of a
community or society, such as streets and roads, sidewalks, bridges, communications systems, water and
power lines, and public institutions including schools, police stations, libraries, and post offices.
Interest Income – The prudent investment of idle funds. The types of investments that can be made are
limited by the Government Code to protect the safety of taxpayers' money.
Intergovernmental Revenue – Revenue received from other governmental agencies and municipalities,
such as grants from the State or Federal government.
Internal Services Fund –The Internal Service Funds are used to finance and account for special activities
and services performed by a designated City department for other departments on a cost reimbursement
basis.
Inter-Fund Transfers – When the City moves money between its various funds, it makes an inter-fund
transfer, referred to as transfers-in and transfers-out. In aggregate, transfers in and out offset each other
for the fiscal year.
Landscape and Lighting Fund – The City has formed landscape and lighting district funds established by
majority consent of the property owners owning all of the property within the boundaries of the district.
Levy – To impose taxes, special assessments or service charges for the support of governmental activities.
The total amount of taxes, special assessments or service charges imposed by Santa Clara County levying
property taxes.
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Licenses and Permits – Revenues earned by the issuance of licenses or permits levied in accordance with
the benefits conferred by the license or permit.
Limited Obligation Bond - A bond sold by a municipality to finance projects which are secured by the
revenue generated by those projects.
Line-Item Budget – A budget that lists detailed expenditure categories (salaries & benefits, office
supplies, travel, dues, rents, etc.) separately, along with the amount budgeted for each specified category.
The Summary Budget reflects the program rather than line item budgets. The Detail Budget reflects the
line-item detail.
Management Information Services Fund – The Information Technology Services Fund is used to
account for costs associated with the City’s centralized computer system and to distribute these costs to
departments using the system on a pro rata basis. Included are costs for hardware and software
maintenance and development, computer training and staff support.
Modified Accrual Basis – Under this accounting method, revenues are recognized when they become
both measurable and available to finance expenditures of the current period. Expenditures for the most
part are recognized when the related fund liability is incurred except for prepayments, accumulated
employee leave and long-term debt. All governmental funds and expendable trust funds are accounted for
using the modified accrual basis of accounting.
Motor Vehicle in Lieu Fee – A State fee charged for the privilege of operating a vehicle on public streets.
A VLF is levied annually against the market value of a motor vehicle and is imposed by the State “in
lieu” of local property taxes.
Non-Departmental – This program has the sole purpose of accounting for all expenditures that the City
cannot specifically designate to any operating department within the General Fund.
Objective - A statement of specific direction, purpose, or intent based on the needs of the community and
the goals established for a specific program or service level.
Ordinance - A formal legislative enactment by the City Council. It has the full force and effect of law
within Town boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal
standing than a Resolution and is typically codified in a Town's municipal code.
Operating Budget - The operating budget is the primary means by which most of the financing of
acquisition, spending and service delivery activities of a government are controlled. The use of annual
operating budgets is required by law.
Other Revenues - Revenues from sources other than those specifically identified that are too immaterial
in amount to justify the creation of new revenue account line items
Performance Measure - Sets forth a performance objective and a goal for achieving the objective.
Personnel Benefits - Those benefits paid by the City as conditions of employment.
Personnel - City employees.
Present Value - The amount that a future sum of money is worth today given a specified rate of return.
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Proposition 218 - A statewide initiative passed by the voters of California on November 5, 1996. The
initiative provided voters with the right to vote on new taxes.
Program - As subdivisions of departments, programs are budgetary or organizational units of government
with limited sets of work responsibilities within their respective departments. Programs also serve to
increase budgetary accountability. Saratoga's budget is compiled on a program basis.
Property Tax - Imposed on real property (land and permanently attached improvements). The tax is
based upon the assessed value of such property. The tax rate may not exceed 1% of assessed value.
Proprietary Funds – Funds that focus on the determination of operating income, changes in net assets (or
cost recovery), financial position, and cash flows. There are two different types of proprietary funds:
enterprise funds and internal service funds.
Public Employee's Retirement System (PERS) - Provided for the City's employees, by the State of
California.
Reserve - An account used to indicate that a portion of fund equity is legally restricted for a specific
purpose.
Resolution - A special order of the City Council which has a lower legal standing than an ordinance.
Resources - Total amounts available for appropriation including estimated revenues, inter-fund transfers,
and beginning fund balances.
Revenue - Sources of income, which the City receives during a fiscal year. Examples of revenue include
taxes, intergovernmental grants, charges for services, resources forward from the prior year, operating
transfers for other funds, and other financing sources such as the proceeds derived from the sales of fixed
assets.
Road Impact Fees - The City collects road impact fees in order to finance road construction and
maintenance projects. Fees are to be used solely for design, construction, and repair of City streets.
Sales Tax - 1% is returned to the City by the State Board of Equalization on a monthly direct deposit
basis.
Special Assessment Bonds - Bonds payable from the proceeds of special assessment.
Special Revenue Fund - In governmental accounting, fund used to account for the proceeds of special
revenue sources (other than special assessments, expandable trusts, or for major capital projects) that are
legally restricted to expenditure for specified purpose.
Service Charge - Charges for specific services rendered.
Services and Supplies - Expenditures for services and supplies which are directly related to a
department's primary service activities.
Supplies - An expenditure classification for articles and commodities purchased for consumption or
resale.
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Taxes - Compulsory charges levied by the City, County and State for the purpose of financing services
performed for the common benefit.
City Code - A book that contains City Council approved ordinances currently in effect. The code defines
City policy with respect to areas such as planning, etc.
Transient Occupancy Tax - Imposed on hotels, motels, inns or other lodging facilities. The rate in
Saratoga is 10%.
Transfers In/Out - Money transferred from one City fund to another. Differs from revenues and
expenses - see definition of these terms.
Worker’s Compensation Fund - The Worker’s Compensation Fund accounts for the cost to provide
worker’s compensation insurance coverage to all Town employees in compliance with State of California
requirements.