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Home My WebLink About04-23-2012 City Council Budget Study Session Agenda Packet\LIFORN� AGENDA SPECIAL MEETING SARATOGA CITY COUNCIL APRIL 23, 2012 SPECIAL MEETING — 6:00 P.M. ADMINISTRATIVE CONFERENCE ROOM, 13777 FRUITVALE AVENUE. CALL MEETING TO ORDER — 6:00 P.M. REPORT ON POSTING OF AGENDA (Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on April 20, 2012) COMMUNICATIONS FROM COMMISSIONS & PUBLIC ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS Any member of the public will be allowed to address the City Council for up to three (3) minutes on matters not on this agenda. The law generally prohibits the council from discussing or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Communications under Council Direction to Staff. COUNCIL DIRECTION TO STAFF Instruction to Staff regarding actions on current Oral Communications. 1. Review of FY 2012/13 Proposed Operating and Capital Budgets and Financial Policies Recommended Action: Review, consider, ask questions, and discuss staff's proposals for the FY 2012/13 Operating and Capital Budgets and updates to the financial policies, and subsequently, provide consensus direction to staff. ADJOURNMENT In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the City Council by City staff in connection with this agenda are available at the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, CA 95070. Note that copies of materials distributed to the City Council concurrently with the posting of the agenda are also available on the City Website at www.saratoga.ca.us. Any materials distributed by staff after the posting of the agenda are made available for public review at the office of the City Clerk at the time they are distributed to the City Council. 1 In Compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk at 408/868-1269. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA title II] Certificate of Posting of Agenda: 1, Crystal Morrow, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council was posted and available for public review on April 20, 2012 at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and on the City's website at www.saratoga.ca.us. Signed this 20th day of April 2012 at Saratoga, California. Crystal Morrow City Clerk 2 SARATOGA CITY COUNCIL MEETING DATE: April 23, 2012 AGENDA ITEM: DEPARTMENT: Finance & Admin Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey SUBJECT: Study Session Review of FY 2012/13 Proposed Operating and Capital Budgets and Financial Policies RECOMMENDED ACTION: Council to review, consider, ask questions, and discuss staff's proposals for the FY 2012/13 Operating and Capital Budgets and updates to the financial policies, and subsequently, provide consensus direction to staff. REPORT SUMMARY: Attachment A, the Study Session Agenda, identifies three topic areas for the meeting: review of the Proposed Operating Budget, review of proposed new projects for the Capital Budget, and changes in and options for the Financial Policies. Staff has prepared final draft documents for the Proposed Operating & Capital Budget for review by Council prior to the Budget Hearing on May 16, 2012. The Operating Budget is prepared in accordance with standard practice and procedures, and continues to hold service levels fairly steady with prior year levels. Summary level revenues and expenditures will be reviewed, with notable changes such as salary and benefit reductions. The Capital Budget includes both continuing and proposed new projects. The proposed new projects and funding sources will be reviewed for Council input. Both the draft proposed Financial Summaries and drafts of proposed new Capital Improvement Projects are attached. Financial Policies help to drive budgetary funding decisions and are included in the budget document as reference information each year. As the policies are approved by Council as part of the annual budget adoption, changes will be reviewed by Council at the Study Session. A draft policy update is attached, and several options will be presented for discussion. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Council would not have the benefit of reviewing the proposed budget in a study session environment or provide input and direction to staff. ALTERNATIVE ACTION: Reschedule Study Session to an alternate date. FOLLOW UP ACTION: Review final FY 2012/13 Proposed Operating and Capital Budget for Budget Hearing on May 16, 2012 ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A: Draft Proposed Financial Summaries Attachment B: Draft Proposed New Capital Improvement Projects Attachment C: Draft Financial Policies Update CITY OF SARATOGA FINANCIAL SUMMARIES ■ 300 250 200 150 - 100 50 FINANCIAL SUMMARIES TOTAL REVENUES AND EXPENDITURES Summary schedules which provide a high level overview of the entire operin , in a fund -type summary, as well as by fund -specific and category -specific summary levels. Total Fund Activity Summary Total Revenues — by Fund Total Expenditures — by Fund Total Revenues — by Category Total Expenditures — by Category GENERAL FUND REVENUES AND EXPENDITU B— 3 B— 4 B— 6 B— 8 B— 9 Summary schedules which identify the o erating sources and uses at the department and category levels. The Fund Balance marize the General Fund sources and uses which impact the ending fund balance. General Fund Revenues — by Department B-10 General Fund Expenditurepartment ' B — 11 General Fund Revenues — . to a B — 12 General Fund Expenditure. - i Cate.. B — 13 General Fund Tax Revenues pe ita — Cities of Santa Clara County B — 14 General Fund Tax Revenu 1 i Year History of Key Tax Revenues B — 15 General Fund — end a e Activity B — 16 marizing activity by fund, of estimated fund transfers for the prior year and budgeted for the ado r ,& as +f year. Schedu - of Interfund Transfers B — 17 FUND BALANCE Fund Balance schedules, one which summarizes activity and ending fund balances to provide a quick look at the ongoing status of the individual funds, and another which provides a 5 year trend. Total Fund Balance Activity Summary — by Fund B — 18 Fund Balance Reserve — 5 Year Comparative History B — 20 CITY OF SARATOGA FINANCIAL SUMMARIES ■ DEPARTMENTAL BUDGETS Department level schedules which provide an overview of funding source and expenditure use by each program within the department. Depai trident Revenues — by Program B — 22 Department Expenditures — by Program STAFFING B-24 Staffing schedules which provide a summary level view of operational staffing assignme I'ne'n_, and trend over the prior five years. Summary of Employee Salary & Benefits B - 27 Positions by Department B — 30 Staffing by Department B — 32 Staffing by Fund B — 33 B-2 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund Category TOTAL FUND ACTIVITY SUMMARY FY 2012/13 Operating Funds General Fund Environmental Services Hillside Stability Capital Projects Carryforwards Op erations Economic Uncertainity Development Services Uncollected Deposits Other Unassigned Total General Fund Special Revenue Funds Landscape & Lighting Districts Internal Service Funds Liability/Risk M anagement Workers Comp ensation Office Support Services IT Services Vehicle & Equipment Maintenance Building Maintenance Vehicle & Equipment Replacement IT Equipment Replacement Total Operating Funds Debt Service 2001 Series GO Bonds Total Debt Service TOTAL OPERATING BUDGET Estimated Fund Balance July 1, 2011 463,182 500,000 439,221 2,903,522 1,500,000 422,380 44,791 1,678,730 7,951,826 $ 9 559,218 99,057 232,296 11,639 242,882 29,693 187,771 421,374 156 Revenues Transfers In 965, ` $ 965,134 15,608,998 15,608,998 Expenditures Transfers Out (16,023,678) (16,023,678) 464,734 (63 468,527 250,000 67,000 400,0 21 7 10 46,236 8 Source (Use) of Fund Balance (50,000) (435,000) Estimated Fund Balance June 30, 2012 413,182 500,000 4,221 22 ,000 422,380 44,791 1,749,049 7,537,145 68 250) 758) 77) ,229) (95,000) (52,600) 18, , 95 $ (19,038,854) $ 850,600 (869,285) 850,600 $ (869,285) $ 390,023 78,335 202,612 19,389 230,124 19,216 170,542 426,374 150,156 $ 9,223,915 946,449 $ 946,449 $ 10,857,409 $ 19,221,095 $ (19,908,139) $ $ 10,170,365 Capital Funds Street Projects Park & Trail Projects Facility Projects Administrative P Total Capital F s TOTAL ALL FUNDS 35,133 627,509 427,550 132,820 $ 2,223,012 $ 13,080,421 5,187,082 166,000 377,410 260,000 (6,123,471) (793,509) (769,960) (392,820) $ 5,990,492 $ (8,079,760) $ 98,744 0 35,000 $ 25,211,587 $ (27,987,899) $ $ 133,745 $ 10,304,109 Capital Project funding incorporates remaining funds from the prior year, new revenue, grants to be received, and transfers M. Prior year budgeted funds are shown as beginning fund balance carryforward amounts that are added to new funding to produce total available project budgets. All available funds are appropriated as expenditures and transfer outs to allow for project encumbrances and completion. As most projects will not be fully expended in a fiscal year, remaining project balances will carry forward into the next fiscal year. B-3 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund TOTAL REVENUES & TRANSFERS IN BY FUND FY 2009/10 FY 2010/11 FY 2011/12 FY 2011/12 FY 2012/13 Actuals Actuals Adjusted Estimated Proposed General Fund General Fund 15,245,050 15,742,117 15,402,895 15,629,787 $ 15,502,998 Total General Fund 15,245,050 15,742,117 15,402,895 15,629,787 15,502,998 A Special Revenue Funds CDBG Program Fund 123,812 300,692 - SHARP Program Fund 858 714 - Landscape & Lighting Districts 456,092 460,113 486,394 486. 464,734 Total Special Revenue Funds 580,762 761,520 486,394 4 j t 464,734 Internal Service Funds Liability / Risk Management Ins Workers Compensation Ins Office Support Services Information Technology Services Vehicle & Equipment Maintenance Building M aintenance Vehicle & Equipment Replacement IT Equipment Replacement Total Internal Service Funds Debt Service Funds 2001 Series GO Bond Total Debt Service Funds Trust Funds Library Capital Improvement Fund 2, m - - - KSAR Community Access Trust 72,704 18,573 - - - 259,056 275,014 377,000 iii 468,527 277,694 221,966 225,000 22 000 250,000 34,694 38,535 52 1,000 67,000 400,961 400,000 400,000 400,000 400,000 208,000 200,000 a 0,000 ;; 200,000 215,000 709,214 732,601 7 5,000 725,000 750,000 110,000 100,000 10!;,000 100,000 100,000 58,009 5 f, i i i 0,000 50,000 46,236 2,057 628 2 0 > 116 2,1 ,000 2150 000 2,296,763 97+ i72,940 953,600 1,031,177 850,600 6,509 ,940 953,600 1,031,177 850,600 Total Trust Funds 75,533 18,573 Capital Project Funds Street Projects 1,705,779 2,223,355 6,130,002 2,609,462 4,837,082 Park & Trail Projects 408,048 877,706 1,185,548 1,119,548 66,000 Facility Projects 46,640 47,111 113,460 53,100 172,410 Administrative Pro' - 5,072 17,102 17,102 185,000 Total Capital Impr ent 2,160,467 3,153,244 7,446,112 3,799,212 5,260,492 Total Revenues 21,095,948 22,666,510 26,418,000 23,096,500 $ 24,375,587 Operating Transfers In ''Ge `v "': Fund 325,842 224,550 205,222 205,222 106,000 Landsc: �J ting Fund - - - - Building tenance Fund - - - - Library Capital Improvement Fund - - - - Street Capital Project Funds 502,786 781,272 369,909 385,558 350,000 Park & Trail Capital Project Funds 318,217 198,791 25 25 100,000 Facility Capital Project Fund 540,776 810,418 218,878 286,761 205,000 Admin Capital Project Fund 113,887 55,978 55,978 75,000 Total Operating Transfers In 1,801,508 2,015,031 850,012 933,544 836,000 Total Revenues & Transfers In 22,897,456 24,681,540 27,268,012 24,030,045 $ 25,211,587 • B-4 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund General Fund Special Revenue Funds Internal Service Funds Debt Service Funds Trust Funds Capital Project Fund Total Revenues by Fu' Op " gFund Transfer C Transfers TOTAL REVENUES & TRANSFERS IN BY FUND TYPE General Fund 61.5% Special Revenue Funds 1.8% Debt Service Funds 3.4% Internal Service Funds [g.1% Transfers In 3.3% Trust Funds ®.3% F�rREVEPJES BY FUND FY 2009/10 2010/11 FY 2011/12 FY 2011/12 Actuals Actuals Adjusted Estimated s ,24,050 $ 15,742,117 $ 15,402,895 $ 15,629,787 ,762 761,520 486,394 486,324 ,057,628 2,018,116 2,129,000 2,150,000 976,509 972,940 953,600 1,031,177 75,533 18,573 - - 2,160,467 3,153,244 7,446,112 3,799,212 $ 21,095,948 $ 22,666,510 $ 26,418,000 $ 23,096,500 325,842 224,550 205,222 205,222 1,475,666 1,790,481 644,790 728,322 Total R sues & Transfers In $ 22,897,456 $ 24,681,540 $ 27,268,012 $ 24,030,045 FY 2012/13 Proposed $ 15,502,998 464,734 2,296,763 850,600 1 5,260,492 $ 24,375,587 106,000 730,000 $ 25,211,587 Note: Capital Budgets — Revenues and expenditures amounts show full receipt and expense of capital activities, whereas this high level of activity is not expected, full appropriation provides a view of the full potential impact of adopted capital projects. B-5 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund TOTAL EXPENDITURES & TRANSFERS OUT BY FUND FY 2009/10 FY 2010/11 FY 2011/12 FY 2011/12 FY 2012/13 Actuals Actuals Adjusted Estimated Proposed General Fund General Fund $ 15,138,898 $ 15,616,298 $ 15,453,350 $ 15,087,249 15,488,678 Total General Fund 15,138,898 15,616,298 15,453,350 15,087,249 15,488,678 Special Revenue Funds 44 SHARP Program Fund 210,748 - - Landscape & Lighting Districts 375,619 396,379 641,518 431,232 633,929 Total Special Revenue Funds 375,619 Internal Service Funds Liability / Risk Management Ins 217,366 Workers Compensation Ins 202,136 Office Support Services 47,496 Information Technology Services 361,859 Vehicle & Equipment Maintenance 210,396 Building M aintenance 715,486 Vehicle & Equipment Replacement 26,985 IT Equipment Replacement 31,614 Total Internal Service Funds 1,813,338 Debt Service Funds 2001 Series GO Bond Total Debt Service Funds Trust Funds Library Capital Improvement Fund 5,45 1,015,276 1,015,276 607,127 641,518 431,232 633,929 359,670 403,631 489,249 196,454 233,035 2 gi :1: 279,684 49,534 58,482 '" 59,250 382,877 429,723 8 181 412,758 211,441 217 , ,124 225,477 726,653 74 61 745,747 767,229 4,856 0, F l 10,000 95,000 51,119 00 54,047 52,600 1,982,604 1,01 53 2,117,947 2,381,247 1,iT 56 916,700 869,285 KSAR Community Access Trust 47,465 Total Trust Funds 52;923 Capital Project Funds Street Projects Park & Trail Projects Facility Projects Administrative Projects 1,374,181 544,168 ,015 44,136 128,416 2,590,294 649,959 381,677 81,707 1,047,556 916,700 869,285 8,535,500 4,078,569 5,817,471 2,141,940 1,448,430 793,509 1,129,550 574,034 764,960 184,788 51,969 392,820 Total Capital Project Funds 2,578,501 3,703,637 11,991,779 6,153,002 7,768,760 Total Expenditures $ 20,974,555 $ 23,052,958 $ 31,283,356 $ 24,706,129 27,141,899 Operating Transfe General F e 650,000 876,983 280,000 280,000 535,000 Liab..E •is alt 25,000 - - I equipment Rte® .ce nt to CIP 155,000 25,000 25,000 g Districts CDB d 133,432 291,071 Library C. .1 Trust Fund to CIP 405 351,360 - - Street Capital Project Funds 410,589 316,558 294,497 310,146 306,000 Park & Trail Capital Project Funds 43,217 95,000 25 25 Facility Capital Projects Fund 399,978 59,058 114,838 280,329 5,000 Admin Capital Projects Fund 8,887 36,430 36,430 Total Operating Transfers Out 1,801,508 2,015,031 750,790 931,930 846,000 Total Expenditures & Transfers Out $ 22,776,063 $ 25,067,989 $ 32,034,146 $ 25,638,060 27,987,899 B-6 • CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund TOTAL EXPENDITURES & TRANSFERS OUT BY FUND TYPE Transfers Out 3.o% General Fund Special Revenue Funds Internal Service Funds Debt Service Funds Trust Funds Capital Project Funds Total Expenditures by Fund Op erating Fund Transfers CFP Fund Transfers General Fund 55.3% Trust Funds O.4% Internal Service Funds 9.8% Special Revenue Funds 2.3% Debt Service Funds 3.1% FY 201 2009/10 XPENDITURES BY FUND ctuals 98 3 5,619 ,813,338 1,015,276 52,923 2,578,501 $ 20,974,555 938,837 862,671 FY 2009/10 Actuals $ 15,616,298 607,127 1,982,604 1,014,876 128,416 3,703,637 $ 23,052,958 1,544,415 470,617 FY 2010/11 Adjusted $ 15,453,350 641,518 2,149,153 1,047,556 11,991,779 $ 31,283,356 305,000 445,790 FY 2010/11 Actuals $ 15,087,249 431,232 2,117,947 916,700 6,153,002 $ 24,706,129 305,000 626,930 Total ExperKlitu s & Transfers $ 22,776,063 $ 25,067,989 $ 32,034,146 $ 25,638,060 FY 2011/12 Adjusted $ 15,488,678 633,929 2,381,247 869,285 7,768,760 $ 27,141,899 535,000 311,000 $ 27,987,899 Note: Capital Budgets — Revenues and expenditures amounts in the current year budget reflect full receipt and expense of capital funding to indicate the potential impact of capital projects. Most projects however are complete over multiple years and will carryover revenue and expenditure funding. B-7 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Property Tax Sales & Use Tax Franchise Fee Tax Transient Occupancy Tax Business/Other Taxes Fees, Licenses & Permits Intergovernmental Charge for Services Interest Income Rental Income Other Sources Internal Service Charges Capital Program Funding Fund Transfers In: Revenue Category TOTAL REVENUES & TRANSFERS IN BY CATEGORY FY 2012/13 Revenues by Category 1,095,000 1,819,500 175,000 7 405,000 272,527 .1 57,345 7 481482 -9 380,988 1,115,065 1,627,188 2,181,236 Erl 786,000 5,250,492 ,505,064 000 000 A,00°'°°° 0 6°°° Oo o00 FY 20 I ' / 0 FY 2010 FY 2011/12 FY 2011/12 uals Aetna s Adjusted Estimated Property Tax Sales Tax Franchise Fee Tax Transient Occupancy Tax Business/Other Taxes Fees, Licenses & P Intergoveal Char I 0 o00,00 10+ 18,177 ' 9,453,877 9,413,300 9,652,644 990,579 1,025,000 1,043,401 1,839,568 1,695,000 1,820,363 5 184,362 150,000 175,000 89 448,138 415,000 392,000 12,132 1,156,486 1,049,065 1,118,385 491,276 726,312 380,140 307,699 1,511,227 1,749, 826 1,621,681 1,622,095 109,895 69,861 65,745 57,119 444,262 438,458 455,302 462,142 394,993 535,801 671,656 616,440 en Othe 000,o00 FY 2012/13 Proposed 9,505,064 1,095,000 1,819,500 175,000 405,000 1,115,065 272,527 1,627,188 57,345 481,182 380,988 Internal Se ice Charges 2,003,009 1,920,000 2,030,000 2,030,000 2,181,236 8.7% 2,160,467 3,153,244 7,446,112 3,799,212 5,260,492 20.9% $ 22,666,512 $ 26,418,001 $ 23,096,500 $ 24,375,587 ' 96.7% 2,015,031 850,012 933,544 836,000 3.3% % of Total 37.7% 4.3% 7.2% 0.7% 1.6% 4.4% 1.1% 6.5% 0.2% 1.9% 1.5% Operationa a enues $ 16,932,470 $ 17,593,268 $ 16,941,889 $ 17,267,288 $ 16,933,85967.2% Capital Program Funding Total Revenues $ 21,095,947 Fund Transfers In: 1,801,508 Total Revenues & Transfers $ 22,897,455 $ 24,681,542 $ 27,268,013 $ 24,030,044 $ 25,211,587 100.0% Note: Saratoga is a minimum services contract city meaning consultants and contract services are utilized extensively to provide services to the community. Examples include: Sheriff's services, animal control services, street sweeping, and landscape maintenance services. B-8 CITY OF SARATOGA FINANCIAL SUMMARIES ■ TOTAL EXPENDITURES & TRANSFERS OUT BY CATEGORY Salaries & Benefits Materials & Supplies Fees & Charges Consultant & Contract Services Community Grants & Events Meetings & Training Debt Service Fixed Assets Internal Service Charges Capital Improvements Fund Transfers Out: Expenditure Category FY 2012/13 Expenditures by Category . 408,14 1127,856 64,070 MI 869, 195,000 1,857,475 285 2,181, 23 5 7,073,918 6,696`152 786,000 7,758,760 °°° °°° °°° o°° o°° 000 000 o°°' o°°' o00'P°°' o°°' o°°'55 o° FY 2009/10 FY 1 FY 2011/12 FY 2011/12 Ac als Adjusted Estimated Salaries & Benefits 7 7,488,036 7,307,266 7,088,664 Materials & Supplies 29,1 370,868 417,455 394,764 Fees & Charges 1 00 1,947,920 1,674,418 1,674,094 Consultant & Contract S 6,24 3 6,373,050 6,597,225 6,274,804 Meetings & Training 48,892 63,799 51,225 41,220 Community Grant vent 203,758 165,915 156,434 122,884 Debt Sery 1,015,276 1,014,876 1,047,556 916,700 Fixed sets 32,443 4,856 10,000 10,000 Op tional Expe tur s 16,393,045 17,429,320 17,261,579 16,523,130 Int Service ges 2,003,009 1,920,001 2,029,997 2,029,997 Capita @rov- ents 2,578,501 3,703,637 11,991,779 6,153,002 Total Expen s res $ 20,974,555 $ 23,052,958 $ 31,283,355 $ 24,706,129 Fund Transfers Out 1,801,508 2,015,031 750,790 931,930 Total Exp & Transfers Out $ 22,776,063 $ 25,067,989 $ 32,034,145 $ 25,638,059 FY 2012/13 Proposed 7,073,918 408,147 1,852,475 6,701,152 64,070 127,856 869,285 95,000 17,191,903 2,181,235 7,768,760 $ 27,141,898 846,000 $ 27,987,898 % of Total 25.3% 1.5% 6.6% 23.9% 0.2% 0.5% 3.1% 0.3% 61.4% 7.8% 27.8% 97.0% 3.0% 100.0% Note: Saratoga is a minimum services contract city meaning consultants and contract services are utilized extensively to provide services to the community. Examples include: Sheriff's services, animal control services, street sweeping, and landscape maintenance services. B-9 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Public Safety 2.9% GENERAL FUND REVENUES BY DEPARTMENT Non -Departmental 75.9% By Department Recreation & Facilities 6.i% Departments Public Works 3.6% Community Development 1o.5% Transfers In o.7% Administrative Services o.3% FY 20!2 STENUEBY DEPARTMENT 2009/10 Actuals 2011/12 2011/12 Adopted Estimated Council & Commissions 0 $ 600 $ 1,200 $ 600 City Manager's Department 2, 20,820 20,190 11,750 Administrative Services 2,4 1 58,574 52,000 55,820 Community Development 1 e 8;565 1,734,095 1,601,425 1,620,215 Public Works 503,584 589,929 543,063 585,264 Recreation & Faciliti 844,176 882,355 913,510 905,993 Public Safe 569,552 661,253 737,802 690,277 Non -moo artm 11,665,496 11,794,492 11,533,704 11,759,869 Tot + . eneral Fun g eve ues $ 15,245,049 $ 15,742,117 $ 15,402,895 $ 15,629,787 Funs sfers In: 325,842 224,550 205,222 205,222 Total Ope evenues r$ 15,570,891 $ 15,966,667 $ 15,608,117 $ 15,835,009 Funding from Use of Deposits/Carryforwards/Designated Funds Theater Surcharge Deposit - - - - Funding Carryforward 22,000 68,600 31,900 31,900 Development Reserve 75,000 - 210,000 210,000 Environmental Reserve 50,000 50,000 50,000 50,000 CIP Reserve 550,000 726,983 160,000 160,000 Hillside Reserve - 50,000 - - Use of Undesignated Funds 25,000 95,000 Total Operating S ources 16,292,891 16,957,250 16,060,017 16,286,909 ■ B - 10 2012/13 Proposed $ 600 12,400 50,000 1,638,265 556,293 953,900 448,025 11,843,515 $ 15,502,998 106,000 $ 15,608,998 50,000 435,000 16,093,998 of Total 0.0% 0.1% 0.3% 10.5% 3.6% 6.1% 2.9% 75.9% 99.3% 0.7% 100.0% CITY OF SARATOGA FINANCIAL SUMMARIES ■ Community Development 12.7% GENERAL FUND EXPENDITURES BY DEPARTMENT Public Works—\ 27.6% Recreation & Facilities 8.7% Administrative Services 7.6% Departments Council & Commissions City Manager's Department Administrative Services Community Develop = t Public Works Recrea City Manager's Department 5.2% Council & Commissions 1.2% Non -Departmental 6.3% Fund Transfers Out 3.3% FY 2012/13 E DITURES BY DEPARTMENT 0 tua 2010/11 2011/12 2011/12 Actuals Adopted Estimated 7 1Y ,643 ,111,172 4,353,903 1,222,649 4,348,778 880,712 $ 15,138,898 $ 154,340 $ 187,718 $ 175,513 1,455,993 809,336 829,412 795,490 1,268,738 1,240,587 1,981,762 2,057,417 1,924,073 4,320,463 4,415,350 4,370,689 1,322,152 1,340,872 1,351,539 4,467,738 4,326,360 4,324,703 1,118,359 1,047,558 870,732 $ 15,616,298 $ 15,453,350 $ 15,087,249 Fund Trance Out Total Exp & Transfers Out 650,000 876,983 280,000 280,000 $ 15,788,898 $ 16,493,281 $ 15,733,350 $ 15,367,249 B - 11 Public Safety 27.4% 2012/13 Proposed $ 188,343 830,318 1,216,301 2,040,643 4,415,354 1,396,144 4,390,623 1,010,952 $ 15,488,678 535,000 $ 16,023,678 % of Total 1.2% 5.2% 7.6% 12.7% 27.6% 8.7% 27.4% 6.3% 96.7% 3.3% 100.0% CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund Transfers In 0.7% Other Sources 2.1% Rental Income 2.8% Revenue Category GENERAL FUND REVENUES BY CATEGORY Property Tax 52.5% Sales Tax 7.0% Interest 0.4% Charge for Services Fees, io.o% Licenses Permits 6.6% FY 2012/13 REV FY 2009/10 Actuals Inte rgovt'l L4% Franchise Fe e Tax 10.8% Transient Occupany Tax o.8% Business & Othe r Taxe s 2.8% 2011/12 FY 2011/12 Adjusted Estimated Property Tax $ 8,194,364 v4,026,659 $ 7,979,050 $ 8,138,595 Sales Tax 954,574 479 1,025,000 1,043,401 Transient Occupancy Tax 4 51 4,362 150,000 175,000 Business & Other Taxes 89 448,137 415,000 392,000 Franchise Fee Tax ,663, 1,821,131 1,695,000 1,820,364 Intergovernmental 7,887 384,746 318,140 245,699 Fees, Licenses & Permits 1, :9 1,156,486 1,049,065 1,118,385 Charge for Services 4 9,533 1,741,291 1,609,681 1,611,095 Interest 97,044 63,883 60,000 53,667 Rental Inco 444,262 438,901 455,302 462,562 Other / 361,808 485,940 646,656 569,020 Tot. ' •venues $ 15,245,049 $ 15,742,117 $ 15,402,895 $ 15,629,787 Fungi sfers In 325,842 224,550 205,222 205,222 15,570,891 $ 15,966,667 $ 15,608,117 $ 15,835,009 Total Rev ransfers $ Funding fro, se of Designated Funds Theater Surcharge Deposit - - Funding Carryforward 22,000 68,600 31,900 31,900 Development Reserve 75,000 - 210,000 210,000 Environmental Reserve 50,000 50,000 50,000 50,000 CIP Reserve 550,000 726,983 160,000 160,000 Hillside Reserve 50,000 - Use of Undesignated Funds 25,000 95,000 Total Operating Sources 16,292,891 16,957,250 16,060,017 16,286,909 B - 12 FY 2012/13 Proposed $ 8,191,975 1,095,000 175,000 405,000 1,819,500 219,000 1,115,065 1,615,188 55,100 481,182 330,988 $ 15,502,998 106,000 $ 15,608,998 50,000 435,000 16,093,998 of Total 51.1% 6.6% 1.0% 2.7% 10.9% 2.0% 6.7% 10.3% 0.4% 2.9% 4.1% 98.7% 1.3% 100.0% CITY OF SARATOGA FINANCIAL SUMMARIES ■ GENERAL FUND EXPENDITURES BY CATEGORY Community Grants & Events o.8%, Meetings, Events & Training 0.4% Consultant &_ Contract Services 37.7% xpenditure Category Salary & Benefits Materials & Supp lies Fees & Charges Consultant & Contract Services Meetings, Events & Training Community Grants & Events Fixed Assets Internal Services Char 'otal Expen ' s. Fund T nsfers Out: 'otal Expenditures & Transfers Internal Services Charges 12.7% Fund Transfers Out: 3.3% Fees & Charges 4.9% Materials & Supplies 1.1% FY 2012/1 a n®; r , S BY CATEGORY FY 2009/1 I" 110/11' FY 2011/12 FY 2011/12 Actuals j uals Adjusted Estimated $ 6,303,927 ,412 $ 6,507,801 $ 6,301,448 10 150,910 171,015 162,785 3 734,205 727,336 713,253 ,884, 5,992,977 5,940,392 5,851,512 7,818 63,668 50,625 35,620 58 165,915 156,434 122,884 1,873,576 1,798,212 1,899,747 1,899,747 $ 15,138,898 $ 15,616,298 $ 15,453,350 $ 15,087,249 650,000 876,983 280,000 280,000 $ 15,788,898 $ 16,493,281 $ 15,733,350 $ 15,367,249 B - 13 Salary & Benefits 39.2% FY 2012/13 Proposed 6,273,670 175,430 782,440 6,034,435 61,270 127,856 2,033,577 $ 15,488,678 535,000 $ 16,023,678 % of Total 39.2% 1.1% 4.9% 37.7% 0.4% 0.8% 0.0% 12.7% 96.7% 3.3% 100.0% CITY OF SARATOGA FINANCIAL SUMMARIES ■ Campbell Cupertino Gilroy Los Altos Los Altos Hills Los Gatos Milpitas Monte Sereno GENERAL FUND TAX REVENUES CITIES OF SANTA CLARA COUNTY - TAX REVENUES PER CAPITA ® Business License Tax ■ Transient Occupancy Tax ■Sales Tax ■Property Tax Morgan Hill Mountain View Palo Alto San Jose Santa Clara SARATOGA Sunnyvale $- $100 09/1 $200 $300 $400 REVENUE AMOUNTS AND PER CAPITA $500 $600 City Population Property Tax W Sales Tax W Transient Occupancy Business License Amount Per capita Amount Per capita Amount Per capita Amount Per capita Campbell 40,42 390 217 9,494,403 235 1,297,573 32 214,198 5 Cupertino 40 10 ,000 187 9,931,000 178 2,142,000 38 694,000 12 Gilroy 027 ,553,656 184 11,539,468 222 829,901 16 525,020 10 Los Alto 13,051,308 452 2,255,526 78 1,345,854 47 413,053 14 Los A s Hills 8,8 3,205,734 361 58,593 7 - - 108,152 12 Lo s s 30,802 9,809,365 318 8,317,217 270 923,783 30 1,220,802 40 Miipit. 70,817 17,146,082 242 15,267,613 216 4,234,489 60 389,025 5 Monte Se - gi 3,800 1,171,038 308 11,146 3 - - 41,925 11 Morgan Hill 38,547 6,865,673 178 4,514,936 117 772,864 20 157,651 4 Mountain Vi 74,762 26,017,000 348 15,242,000 204 3,267,000 44 2,206,000 30 Palo Alto 65,408 26,004,000 398 17,991,000 275 6,858,000 105 - - San Jose 1,023,000 498,973,000 488 123,312,000 121 17,250,000 17 34,952,000 34 Santa Clara 118,830 29,110,000 245 32,232,000' 271 8,514,000 72 856,000 7 t§ARATOGA 31,997 8,194,364 256 954,5741 30 144,151 5 303,990 Sunnyvale 138,826 43,699,859 315 26,590,337 192 5,578,196 40 1,363,638 10 Average 118,855 47,466,765 399 18,514,121 156 3,543,854 30 2,896,364 24 NOTES: Property Tax — includes VLF in Lieu revenues permanently received as Property Tax Sales Tax — includes Sales Tax portion temporarily received as Property Tax effective with the Triple Flip ■ B - 14 CITY OF SARATOGA FINANCIAL SUMMARIES ■ $1o,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,00o $5,000,000 $4,000,000 83,000,000 $2,000,000 $1,000,000 $ GENERAL FUND REVENUES 10 YEAR HISTORY OF KEY TAX REVENUES y 1 y f i f i 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals Estimated Budgeted ■Property Tax D S ales Tax D Occupancy Tax D Business License Tax Fiscal Year Property lb, Tax Sales Tax Occupancy Tax Business License Tax Summary of Tax Revenues Change from Prior Year 2002/03 Actuals 2,929,4 $ 1,118,394 $ 160,639 $ 304,081 4,512,322 0.9% 2003/04 Actuals 1 1, 16 $ 976,899 $ 149,316 $ 282,553 4,429,284 (1.8%) 2004/05 Ac 334,406 $ 1,011,721 $ 146,607 $ 298,823 6,791,557 53.3% 2005 6,141,365 $ 988,132 $ 163,222 $ 339,648 7,632,367 12.4% 6/0 ua $ 7,577,444 $ 994,680 $ 195,261 $ 303,787 9,071,172 18.9% 007/08 als $ 7,922,815 $ 1,057,977 $ 211,532 $ 290,996 9,483,320 4.5% 11:/09 ` uals $ 8,155,362 $ 1,043,034 $ 151,378 $ 321,347 9,671,121 2.0% 20i 1 ctuals $ 8,194,364 $ 954,574 $ 144,151 $ 303,990 9,597,079 (0.8%) 2010/ Actuals $ 8,026,659 $ 990,579 $ 184,362 $ 310,273 9,511,873 (0.9%) 2011/12 Budgeted $ 7,979,050 $ 1,025,000 $ 150,000 $ 305,000 9,459,050 (0.6%) NOTES: FY2004/05 Property Tax Revenues — reflects the ongoing permanent addition of approximately $2 million plus of VLF in Lieu Fees received as Property Tax resulting from the State's Prop IA Triple Flip Legislation FY 2006/07 Property Tax Revenues— reflects the ongoing permanent addition of Property Tax revenues due to the increased City allocation share from TEA Legislation. (Approximately $760, 000 in FY 2006/07) B - 15 CITY OF SARATOGA FINANCIAL SUMMARIES ■ GENERAL FUND FUND BALANCE ACTIVITY Estimated Plus Less Sources Estimated 7/1/2012 Transfers Transfers (Uses) of 6/30/2013 Use of/ Addition to GF Reserves: Balance Revenues In Expenditures Out Fund Balance Balance Restricted Fund Balance Environmental Services 463,182 Commited Fund Balance Hillside Stability 500,000 Assigned Fund Balance Capital Projects 439,221 Carryforwards Unassigned Fund Balances Operations 2,903,522 Economic Uncertainity 1,500,000 Development Services 422,380 Uncollected Deposits 44,791 (50,0001 413,182 500,000 - (435,00 ,221 OtherUnassigned 1,678,730 15,502,998 106,000 15,488,678 535, 0 485,000 Total Fund Balance Reserves $ 7,951,826 2,903,522 1,500,000 422,380 44,791 1,749,049 $ 7,537,145 GENERAL FUND Reserve Activity includes: Fund Balance Reserves reflect the cumulative effect ofrevenues and o - cin ces over expenditures and other financing uses. Reserved Fund Balance are legal obligations, whereas Unres ved F ; _ Ba eludes 'Designated Reserves': and 'Undesignated Fund Balance reseves. Designated Reserves are i = ^ eld fo : specc purpose or use. 'Undesignated Fund Balance' is estimated year-end fund balance not previously idem ed + g ific purpose, and is therefore available to buffer unplanned financial situations during the fiscal yea As year-end fund balance reflects an estimate, se . fina aal prat s suggest retaining a sufficient amount of undesignated fund balance to offset unexpected revenue shortfal s an ional expenditures. The General Fund Operating Reserve was established Ju i 1999 at $2,000,000 to provide operational cash flow funding for the General Fund. The reserve is adje end of each scal year by the amount of interest income earned on the balance in the reserve. FY2012/13 revenue for is r® 'ncludes earnings at an estimated .6.% average interest rate. The Economic Uncertainty Rese City Council, this reserve m or natural disasters. This 500,000 is to be used in the case offiscal uncertainty or disaster. Upon approval from the n the case ofState takeaways, unanticipated revenue shortfalls, unexpected expenses djusted for interest earnings. The Development a a nviro al Services reserves reflect establishedfunding sourcesforfuture years operating services. These reserve b e ablished at FY2006/07 year end with the closing of the individual special revenue funds. To provide a nexus ee n r, urce and use, these funds are appropriated as supplemental support for use in development and en onmentalprad ams hen required. The Capita adoption. ty Reserve reflects funding set aside for emergency roadway and retaining wall support projects. roject Reserve reflects funding designated to fund capital projects in the current or future fiscal years as ofbudget Prior Year Carryforward Reserves reflects an estimate offunding to be set-aside for encumbered or designated obligations that are to be paid for in the following fiscal year. B - 16 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund Description SCHEDULE OF INTERFUND TRANSFERS Actuals 2011/12 Transfers In General Funds General Fund Internal Service Funds IT Equipment Replacement Capital Project Funds Street Projects Parks & Trail Projects Facility Projects Administrative Projects Actuals 2011/12 Transfers Out Budgeted 2012/13 Transfers In 205,222 280,000 106,000 385,558 25 286,761 55,978 25,000 310,146 25 281,943 36,430 350,000 100,000 205,000 85,000 Budgeted 2012/13 Transfers Out 535,000 306,000 5,000 Total Interfund Transfers $ 933,544 $ 933,544 $ 846,000 $ 846,000 FY2012/13 Interfund Transfers In General Fund Transfer In of $106, 000 is from the CIP Gas Tax Fund to reimburs Services Capital Project Funds Transfer In of $690, 000 is comprised of : 1. $150, 000 from GF Reserve for Capital to CIP Street projects 2. $100, 000 from GF Reserve for Capital to CIP Parks projects 3. $100, 000 from GF Operations, $40, 000 from GF Reserve and 00 4. $145,000 from GF Reserves for Capital to CIP Admin proje s 5. $200,000 from Gas Tax for specific projects FY2012/13 Interfund Transfers Out $535, 000 transfer from the General Fund 1. $100, 000 annual transfer to the CIP 2. $150, 000 to CIP Streets for projects 3. $100,000 to CIP Facilities for City Hall Emer 4. $100, 000 to CIP Parks f j t a to the Sea/ aster Plan nd for pjects d Administrative ual Facilities to CIP Facilities ower and Security System Phase III 5. $85,000 to CIP Admin $306, 000 transfer from CI specific Gas Tax Projects $5, 000 transfer from agement, CUP and CMO Document Imaging Projects ised of $106, 000 from Gas Tax back to General Fund and $200, 000 for ility to fund SPC IT room project B - 17 CITY OF SARATOGA FINANCIAL SUMMARIES ■ FUND BALANCE ACTIVITY FY 2012/13 7/1/2012 Plus Plus Less Less Sources 6/30/2013 Estimated Revenues & Transfers Exp & Transfers (Uses) of Estimated Balance Carryfwds In Carryfwds Out Fund Bal Balance General Fund Restricted Fund Balance Environmental Services 463,182 Commited Fund Balance Hillside Stability 500,000 Assigned Fund Balance Capital Projects 439,221 Carryforwards Unassigned Fund Balances Operations 2,903,522 Economic Uncertainity 1,500,000 Development Services 422,380 Uncollected Deposits 44,791 Other Unassigned 1,678,730 15,502,998 106,000 413,182 00,000 4,221 5,00 35,000 2,903,522 1,500,000 422,380 44,791 485,000 1,749,049 Total General Fund $ 7,951,826 $ 15,502,998 $ 106,000 488,6781 $ 535,000 $ $ 7,537,145 Undesignated Fund Balance reflects the operating budget's ongoing revenues, expenditures, carryforwards, transfers in and out, and the use of fund balance reserves. Designated Fund Balance reflects both legal requirements and Council directed reserves. The Operations Reserve grows by the annual investment rate earned by the City each year, and ensures cash availability for operations. The Economic Uncertainty Reserve was established at $1.5 million for dire economic situations. Special Revenue Funds Landscape & Lighting Districts 559,218 633,929 390,023 Total Special Revenue Funds $ 559,218 $ 4 $ $ 633,929 $ $ - $ 390,022 i) Special Revenue Funds are reserved for legally restricted revenues and obilgations. The Landscape & Lighting Fund budgeted expenditures include all available funds to allow use for unplanned repairs if necessary, but are not anticipated to be used. Internal Service Funds Liability / Risk Management 99 i 468,527 - 489,249 Workers Compensation 32,296 250,000 - 279,684 Office Stores Fund 9 67,000 - 59,250 IT Services 2,882 400,000 - 412,758 Vehicle & Eq e t 29,693 215,000 - 225,477 Building mtenan 187,771 750,000 - 767,229 Veil' !Equip Replac r t 421,374 100,000 - 95,000 IT Equi. Replace t 156,520 46,236 - 52,600 Total Internal Se r $ 1,381,231 $ 2,296,763 $ $ 2,381,247 $ 78,335 202,612 19,389 230,124 19,216 170,542 426,374 150,156 $ 1,296,748 The City maintains Internal Service Funds to provide full operational costing for services. Two of these funds are equipment replacement sinking funds which charge back to departments the cost of the assets, to ensure funding is set aside and to charge an appropriate annual cost for the asset. Replacement Fund balances reflect the funding accumulated to date for asset replacement. The remaining Internal Service Funds provide for the cost of services and insurance in a fair, allocated manner. B - 18 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Debt Service Funds 2001 Series GO Bonds FUND BALANCE ACTIVITY FY 2012/13 7/1/2012 Plus Plus Less Less Source & 6/30/2013 Estimated Revenues & Transfers Expenditures & Transfers (Use) of Estimated Balance Carryforwards In Carryforwards Out Fund Bal Balance 965,134 850,600 869,285 - - 946,449 Total Debt Service Funds $ 965,134 $ 850,600 $ - $ 869,285 $ $ 946,449 Debt Service Funds reflects City debt. The City issued General Obligation Bonds in 2001 for the library expansion project. The Fund reflects the property tax assessment receipts, and the debt principal & interest payments made during the fiscal year. Fund Balance reflects the City's reserve for this debt issuance. Assessment revenues are intentionally set less than expenditures to reduce Fund Balance to appropriate debt level. Capital Improvement Plan Funds Street Projects 1,035,133 4,837,082 350,000 5,817,471 Parks & Trails Projects 627,509 66,000 100,000 793,509 Facility Projects 427,550 172,410 205,000 764,960 Administrative Projects 132,820 185,000 75,000 392,82 Total CapitallmprovementFunds $ 2,223,012 $ 5,260,492 $ 730,000 $ 7,768, 0 98,744 35,000 $ 133,744 The above CIP funds are included at a summary level. Capital revenues include all outstanding funding sources identified as a source offunds for projects, however not all funding is expected to become available in the fiscal year. Similarly, appropriated expenditures are not expected to be expended as most are multi-year projects. Funds will be reduced to actuals at year-end and the remaining project balance will be rolled forward. FUND BALANCE TOTALS $ 13,080,420 $ 24,375,587 $ 836,000 $ 27,141,899 $ 846,000 $ - $ 10,304,108 B - 19 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund Balance Reserves FUND BALANCE RESERVES 5 YEAR COMPARATIVE HISTORY 6/30/2009 6/30/2010 6/30/2011 6/30/2012 Actual Actual Actual Estimated YE Balance YE Balance YE Balance YE Balance General Fund Reserved Reserved for Petty Cash 1,300 Designated 1,300 1,300 Operations Reserve 2,870,139 2,889,077 2,903,522 2,903,522 I Economic Uncertainty 1,500,000 1,500,000 1,500,000 1,500 Economic Stability Reserve 25,000 Environmental Services Reserve 613,182 563,182 513,182 46 Development Services Reserve 707,380 632,380 632,380 8 Uncollected Deposits Reserve 182,159 44,791 44,79 44 91 Carryforward Reserve 22,000 68,600 166 00 - Capital Project Reserve 300,000 126,983 501 110 439,221 Grant Matching Reserve 600,000 600,000 - Hillside Stability Reserve 300,000 300,000 501 100 500,000 Open Space Land Reserve 250,000 - - Undesignated Undesignated Fund Balance 857,525 Total General Fund Reserves 7 7,989 1,678,730 8,228,6 ,010,t'p' 7,484,065 7,951,826 Special Revenue Funds CDBG Program Fund SHARP Program Fund Landscape & Lighting Districts Total Special Revenue Funds Internal Service Liability / Risk M anagemen Workers Comp ensatio Office Support Se IT Services Vehicle°':""`e,�,�m aintenance Building M a Vehicle & Equi ent Replacement IT Equip men ' eplacement (9,621) 209, 210,033 - - 359,91 440,389 504,122 559,218 569,091 640,802 504,122 559,218 202,871 123,033 39,633 174,837 56,654 208,841 153,214 315,289 244,562 198,592 26,830 213,940 54,258 202,569 236,230 186,686 134,906 224,105 15,831 231,063 42,817 208,517 331,374 185,567 99,057 232,296 11,639 242,882 29,693 187,771 421,374 156,520 Total Internal Service Reserves 1,274,373 1,363,667 1,374,179 1,381,231 • B-20 6/30/2013 Budgeted YE Balance 2,903,522 1,500,000 413,182 422,380 44,791 4,221 500,000 1,749,049 7,537,145 390,023 390,023 78,335 202,612 19,389 230,124 19,216 170,542 426,374 150,156 1,296,748 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Fund Balance Reserves Debt Service 2001 Series Library GO Bonds FUND BALANCE RESERVES 5 YEAR COMPARATIVE HISTORY 6/30/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 Actual Actual Actual Estimated Budgeted YE Balance YE Balance YE Balance YE Balance YE Balance 931,360 892,593 850,657 965,134 946,449 Total Debt Service 931,360 892,593 850,657 965,134 , 946,449 Trust & Agency Library Capital Improvement KSAR Trust Fund 354,395 351,360 84,603 109,842 Total Trust & Agency Reserves 438,997 461,202 OPERATING BUDGET RESERVES $ 11,442,508 $ 11,368,943 $ 10,213,023 $ 10,857,409 $ 10,170,365 Capital Project Funds Street Project Funds Park & Trail Project Funds Facility Improvement Funds Administrative Project Funds Total Capital Projects Funds 1,907,261 486,302 953,835 163,910 2,331,056 624,854 525,258 224,773 3,511,308 3,705,940 TOTAL RESERVES $ 14,953,815 2,428 95 ,133 98,744 627,509 427,550 35,000 39 132,820 12 2,223,012 133,744 $ 15,074,883 $ 14,688,435 $ 13,080,421 $ 10,304,109 GENE 5 YEAR FUND BALANCE GRA ENTATION OF D t g OF ALL FUNDS GET EAR, AND 5 YEAR TREND PROJECTION 20,000,000 16,000,000 12,000,000 8,000,000 4,000,000 + General Fund Balance —III—Total Fund Balance E oA ' 1.Q�� „250 3 l /l' ©oc •c ' oovo1 ot- Note - FY 2012/13 fund balance and five years forward reflect the full expenditure of the Capital Budget in the first year, thereby causing a steep drop and a continued zero balance from that point forward in the graph above. The full appropriation of the capital project budget is to allow for full encumbrance and completion of the projects during the fiscal year, however in most cases this will not occur and project balances will roll forward into the following fiscal year. B-21 FY 2012/13 Proposed CITY OF SARATOGA FINANCIAL SUMMARIES ■ Council & Commissions General Fund Program: City Council City Commissions Total Council & Commissions City Manager's Department General Fund Program: City M anager's Office City Clerk Total City Manager's Department DEPARTMENT REVENUES BY PROGRAM FY2009/10 FY 2010/11 FY 2011/12 FY 2011/12 Actuals Actuals Adjusted Estimated 1,200 600 1,200 600 $ 1,200 $ 600 $ 1,200 $ 600 ,- 1,419 586 20,820 20,190 $ 2,005 $ Finance & Administrative Services Department General Fund Program: Finance Services 72,471 58,574 5 55,820 Human Resources Internal Service Funds: Office Support Services 34,694 38 ,000 51,000 Information Technology Services 400,961 411,000 00 400,000 IT Equipment Replacement 58,009 ,1 X00 0,000 50,000 Total Finance & Administrative Services $ 566,135 547, I ; $ 554,000 $ 556,820 20,820 $ 20,190 Community Development General Fund Program: Development Services 525,2 521,545 506,560 Advanced Planning 127,26 149,563 130,000 Code Compliance 18,942 12,491 9,265 Building & Inspection Services 15,159 1,050,497 955,600 Special Revenue Funds: CDBG Program Fund 123,812 300,692 - SHARP Program Fund 858 714 Total CommunityD men $ 1,711,235 $ 2,035,502 $ 1,601,425 $ 1,620,215 509,400 140,000 9,265 961,550 Genera Bering 100,804 98,294 160,000 161,800 Develop ering 77,370 177,166 66,500 63,700 Environments !ervices 22,101 24,110 21,000 21,000 Streets & Storm Drains 47,450 11,560 - 48,201 Parks & Landscap e M aintenance 255,858 278,799 295,563 290,563 Internal Service Funds: Vehicle & Equipment Maintenance 208,000 200,000 200,000 200,000 Vehicle & Equipment Replacement 110,000 100,000 100,000 100,000 Special Revenue Fund: Landscape & Lighting Districts 456,092 460,113 486,394 486,324 Total Public Works Department $ 1,277,675 $ 1,350,042 $ 1,329,457 $ 1,371,588 B-22 600 600 12,400 12,400 50,000 67,000 400,000 46,236 563,236 517,500 140,000 9,265 971,500 1,638,265 169,563 61,500 21,000 12,568 291,662 215,000 100,000 464,734 1,336,027 FY 2012/13 Proposed L 685,500 5,500 262,900 750,000 1,703,900 448,025 448,025 • 11,843,515 F468,527 250,000 1 1 850,600 13,412,642 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Recreation & Facilities Department General Fund Program: Recreation Services Teen Services Facility Rentals Internal Service Funds: Building Maintenance DEPARTMENT REVENUES BY PROGRAM FY 2009/10 Actuals 603,037 5,294 235,846 709,214 FY 2010/11 Actuals 652,281 4,287 225,787 FY 2011/12 Adjusted 670,150 5,400 237,960 732,601 725,000 FY 2011/12 Estimated 658,500 2,273 245,220 1. 725,000 Total Recreation Department Public Safety General Fund Program: Public Safety Services Emergency Preparedness Total Public Safety Non -Departmental General Fund Program: General Administration Legal Services Community Grants Community Events Internal Service Funds: Risk M anagement/Liability Ins Workers Compensation Ins Debt Service Funds 2001 Series Bond Debt Service Fund Trust & Agency Funds Library Capital Improvement Fund KSAR Community Access Total Non -Departmental Capital Improvement Projects Capital Improvement Funds Street Projects Park & Trail Projects Facility Pro' Administrative Pr To:Capital Impri en Projects Operating Transfe General Fun L&L Funds Capital Projects - Streets Capital Projects - Parks & Trails Capital Projects - Facilities Capital Projects - Administrative $ 1,553,390 $ 1,614,956 $ 1,638,510 $ 1,63 569,552 661,253 $ 569,552 $ 661,253 11,665,496 259 737,802 $ 737 0,277 11,794,462 30 050 11,759,215 54 275, 377,000 2,82 72,704 54,287 966 225,000 972,940 953,600 $ 13,089,304 18,573 $ 13,282,985 1,705,779 2,223,355 408,048 877,706 46,640 47,111 5,072 $ 2,160,467 $ 3,153,244 6,130,002 1,185,548 113,460 17,102 $ 7,446,112 n 325,842 502,786 318,217 540,776 113,887 224,550 781,272 198,791 810,418 205,222 369,909 25 218,878 55,978 654 399,000 225,000 1,031,177 $ 13,415,046 2,609,462 1,119,548 53,100 17,102 $ 3,799,212 205,222 385,558 25 286,761 55,978 Total Operating Transfers In $ 1,801,508 $ 2,015,031 $ 850,012 $ 933,544 4,837,082 66,000 172,410 185,000 5,260,492 106,000 350,000 100,000 205,000 75,000 836,000 Total Revenues and Transfers In $ 22,897,456 $ 24,681,540 $ 27,268,012 $ 24,030,045 25,211,587 B-23 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Council & Commissions General Fund Programs: City Council City Commissions DEPARTMENT EXPENDITURES BY PROGRAM FY 2009/10 FY 2010/11 FY 2011/12 FY 2011/12 FY 2012/13 Actuals Actuals Adjusted Estimated Proposed 129,954 19,691 130,898 161,167 23,442 26,551 150,837 157,901 24,676 30,442 Total Council & Commissions 149,645 154,340 187,718 175,513 188,343 City Manager's Department General Fund Programs: City Manager's Office City Clerk Human Resources* 624,836 250,560 357,365 695,114 323,836 437,043 509,033 300,304 512,052 485,274 31 345,045 Total City Manager's Department $ 1,232,762 $ 1,455,993 $ 809,336 830,318 Administrative Services Department General Fund Programs: Finance Services Human Resources * Internal Service Funds: Office Stores Fund Information Technology Services IT Equipment Replacement 839,278 795,490 862 06, 880,786 888,505 359,802 327,796 47,496 49,534 58,%:2 55,192 59,250 361,859 382,8 *,723 388,181 412,758 31,614 51, 19 t0 54,047 52,600 Total Administrative Services Dept $ 1,280,247 $ 1 9,j ;j 1,81=,143 $ 1,738,007 1,740,909 Community Development General Fund Programs: Development Services Advanced Planning Code Compliance Building & Inspection Services Sp ecial Revenue Funds CDBG Program Fund SHARP Program Fund Total Community Develop Public WorksDepartm General Fund Progra General E Deve E4a ental Sery �s Streets: arm D = s Parks & L. : e Maintenance Internal Sery e Funds: Equipment Maintenance Vehicle & Equipment Replacement Sp ecial Revenue Funds Landscape & Lighting Districts 162,9 190,904 861,742 8 ,240 148,916 184,066 827,540 878,344 158,191 185,382 835,499 210,748 - 2,111,172 2,192,510 2,057,417 1,924,073 2,040,643 857,459 148,610 96,384 821,619 917,271 162,020 96,967 864,385 475,622 238,737 479,250 1,240,174 1,920,118 465,610 187,417 496,370 1,182,999 1,988,066 474,950 195,900 543,586 1,208,252 1,992,662 486,497 471,625 196,610 200,513 547,052 557,079 1,220,299 1,268,167 1,920,231 1,917,971 210,396 211,441 217,321 213,124 225,477 26,985 4,856 10,000 10,000 95,000 375,619 396,379 641,518 431,232 633,929 Total Public Works Department 4,966,903 4,933,139 5,284,189 5,025,045 5,369,760 *Human Resources moved from City Manager to Administrative Services Department effective FY2011/12 B-24 CITY OF SARATOGA FINANCIAL SUMMARIES ■ FY 2009/10 FY 2010/11 FY 2011/12 FY 2011/12 Actuals Actuals Adjusted Estimated Recreation & Facilities Department General Fund Programs: Recreation Services 882,491 945,962 937,113 944,736 Teen Services 58,496 66,461 67,785 70,159 Facility Rentals 281,662 309,728 335,974 336,644 Internal Service Funds: BuildingMaintenance 715,486 726,653 742,761 745,747 Total Recreation Department 1,938,135 2,048,805 2,083,633 2,097,286 1' Public Safety General Fund Programs: Public Safety Services Emergency Preparedness 4,313,632 4,423,899 4,278,195 4,276 35,146 43,840 48,165 Total Public Safety 4,348,778 4,467,738 4,326,360 4,3 03 Non -Departmental General Fund Programs: General Administration Legal Services Community Grants Community Events Internal Service Funds: Liability / Risk Management Workers Compensation Debt Service Fund: 2001 Series Bond Debt Service Fund Trust & Agency Funds: Library Capital Improvement Fund KSAR Community Access Total Non -Departmental Capital Improvement Projects Capital Improvement Funds: Street Projects Park & Trail Projects Facility Projects Administrative Project Total CapitalImproi Operati Transfers Ou Gen- , Fund C °.ndtoGF CIP Liability's M j ®'Fund IT Equipme d eplacement to CIP Library Capital Trust Fund to CIP Capital Projects - Streets Capital Projects - Parks & Trails Capital Projects - Facilities Capital Projects - Administrative 441,285 235,669 188,356 15,402 593,948 586, 358,496 304 156,476 9,439 00 ,033 285,815 112,884 10,000 217,366 359,. t { ,631 434,848 202,136 196 ^ 54 2 t5 216,808 1,015,2 14,876 1,047,556 916,700 47,4 128,416 - 2,817,775 2,731,780 2,368,413 2,439,088 , ,181 2,590,294 8,535,500 4,078,569 544,168 649,959 2,141,940 1,448,430 616,015 381,677 1,129,550 574,034 44,136 81,707 184,788 51,969 2,578,501 3,703,637 11,991,779 6,153,002 650,000 133,432 155,000 405 410,589 43,217 399,978 8,887 876,983 280,000 280,000 291,071 - 25,000 - 25,000 25,000 351,360 - 316,558 294,497 310,146 95,000 25 25 59,058 114,838 280,329 36,430 36,430 Total Operating Transfers Out 1,801,508 2,015,031 750,790 931,930 FY 2012/13 Proposed 981,588 72,611 341,945 767,229 2,163,373 4,336,785 53,838 4,390,623 580,718 302,378 107,856 20,000 489,249 279,684 869,285 2,649,170 5,817,471 793,509 764,960 392,820 7,768,760 535,000 306,000 5,000 846,000 Total Expenditures and Transfers Out 22,776,063 25,067,989 32,034,146 25,638,060 27,987,899 * Human Resources moved from City Manager Department to Administrative Services Department in FY2011 /12 B-25 CITY OF SARATOGA FINANCIAL SUMMARIES ■ SUMMARY OF EMPLOYEE SALARY & BENEFITS The City of Saratoga's total budgeted salary and benefit expenditures are projected to total $7.1 million dollars in FY 2012/13, representing approximately 25.3% of total budgeted expenditures. Just over $6.3 million (89.0%) of labor costs are funded in the General Fund and represent 39.2% of the General Fund's budget. Budgeted salary and benefit amounts reflect a $233,000 decrease from last year as a result of a r uction in positions and restructuring. After the Code Compliance Specialist position was vacated in FY 2 /12, code compliance duties were shifted to various other staff rather than fill the positix. For i tance, complaints and field checks are now handled by Building staff. Administrative functions re absorbed by Building's Office Specialist, by Finance staff, and by Human Resources staff. With. is successful reallocation of duties, the position was eliminated from the FY 2012/13 budget. Additiona salary savings resulted from two retirements in the Public Works Parks Division. One retirement was filled by a temporary Maintenance Worker, and the temporary position was eliminated. The other .90 FTE position was eliminated and backfilled with contract services. Additional staffc nges will occur in the Recreation Department with a retirement early in FY 2012/13. A<shift in w schedules and duties will provide a .15 FTE reduction between two Office Specialist pa <tions. A portion of the savings will be utilized with the return of the City Manager's .90 FTE Executissistant to a full time position. For comparison, FY 2011/12 Salaries and Benefits approximately $260,000 (5%) equating to either employee concessions depending on the decrease in salary and benefit, budgeted there are increases in contract services - s were already discounted by lough days, or alternatively, as ar negotiations. Therefore, the additional rily from additional staff reductions. However, ce backfill which offset some of the savings. Last year's negotiations resulted in a shift o - mployee's portion of the California Public Employees' Retirement System (Ca1PE' es paid y by employees rather than the City. This will result in a savings of approximately 40 'n FY 2012/13. Additional savings will accrue from reductions in auto allowance, changes in rtime call -out pay, and medical insurance coverage limits for Union employees. For new employee ®res after July 1, 2011, medical insurance benefits are limited to a fixed dollar amount ($800 pth single coverage, $1,200 per month for double coverage, and $1,500 per month for famiFor new employees hired after April 14, 2012, a second tier Ca1PERS retirement benefi •vid t % at 60 will be in effect. The annual savings equals the difference between the pool -s. - i a s tim- s the second tier payroll. A rate decrease of 2.327% is estimated. Although the e e. ng I implementing this new tier will be minimal in the first several years, such sav s will slo , i crease over time. Salary b eget projections are prepared using known data on current employees, current MOU provisions, a d California Public Employees' Retirement System (Ca1PERS), medical, dental, vision, long-term disability, and life insurance premiums. In some years, these projections are very stable and in others there is more fluctuation, as in the case of years in which MOUs expire and new MOU provisions are scheduled to be put into place. The City does not use a vacancy factor for salary projections as there is very little turnover due both to the economic recession, and to the necessity in most cases to re -fill a position quickly due to the City's limited staffing. Most staff positions are at top step, and health insurance benefits are budgeted at the employee's current status (Single/Double/Family) under their chosen health insurance plan to provide accuracy in the total salary and benefit costs. B-26 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Employee Compensation and Benefits Personnel costs are comprised of salaries for full and part-time personnel, inclusive of holidays and paid time off and benefits which includes health, life and disability insurances, and retirement contributions. Annual wage increases and benefit adjustments are negotiated under each bargaining unit's Memorandum of Understanding (MOU) contracts. Memorandums of Understanding , Each of the three bargaining units have an MOU: 1) the Saratoga Management Association for the four Department Directors; 2) the Northern California Carpenter's Regional Council, Carpenters Forty, Six Counties Conference Board and Their Affiliated Local Unions (UNION) for the fourteen Public Work's Corporation Yard staff, and; 3) the Saratoga Employees Association (SEA) for all otherrepresented staff, which is the City's largest bargaining group with 32 full and part-time employees. The City Manager, the Human Resources Manager, and hourly (un -benefited) staff are not represented associations. All three bargaining units entered into a four year MOU agreement effective from Jul 011 through June 30, 2015. The City Manager has a negotiated contract, and the Human ' - . u cesf { 1 Tanager falls under Employment Policy for Unrepresented Staff. Wages Salary ranges adjust each July 1 by the cost of living increas SEA negotiated contracts provide CPI increases each July 1 s an immediate hourly rate increase effective November during the term of the contract. The UNION contrac revenues increase by more than 3% from the pr'o e would still be negotiated and are not stated d by the MOUs. The SMO and contracts. The Union negotiated will forgo annual CPI increases ener if Property and Sales Tax ever specific wage increase adjustments Employee Benefits The City provides medical, dental, life i nce, and long-term disability insurance to its benefitted employees and Ca1PERS retirement to eligi employees. Currently, the City self -funds short-term disability coverage for 75% ties after a employee's paid time off is exhausted, up until long-term coverage activates at six ® .1.yees have the option to enhance their long-term disability and life insurance plans, and to o�. visi.. are coverage through a group plan. The City contracts for health insurance through Ca1PERS, offering employees a choice between Kaiser, Blue Cross, or Blue Shield medical plans. Although Ca1PERS has substantial negotiating powers, health insurance premi continue to increase each year. For pl 2008 use of t the City p ough January 1, 2010, the City was able to negotiate an enhanced dental benefit w provider — Ameritas, for the same premium paid to Delta Dental in calendar year ely, the unexpected result of this enhanced benefit was a significant spike in employees' tal benefits, resulting in actual claims submitted to the provider exceeding the premium Ameritas as a participant in their group plan. As a result, Ameritas increased the City's premium rates by 33.80% in January 2010 and by another 9.30% in January 2011 and again another 6% in January 2012. Staff is currently working with the City's broker to lower premium costs either through a different provider or through changes in the plan. The Principal Life and AD&D Insurance premium increases are a result of demographic changes (age/gender/salary level are all part of the risk factor analysis). The City's broker negotiated these rates down by 20% effective April, 2011. B-27 CITY OF SARATOGA FINANCIAL SUMMARIES ■ Pension Plan The City of Saratoga's 2% at 55 defined benefit plan is part of Ca1PERS "Miscellaneous 2% at 55 Risk Pool", a cost sharing multiple -employer defined benefit plan. The City's payment of Ca1PERS Contribution Rates is comprised of Employee and Employer contributions. The Employee Contribution Rate under the 2% at 55 benefit plan is constant at 7%, while the Employer Contribution Rate is determined each year through an actuarial valuation of the plan. Employer rates are based on Ca1PERS' principle assumptions, including but not limited to an estment Rate of Return of 7.75% (net of administrative expenses), and an annual payroll gro o %. Various agency -based factors such as number and age of employees, increases and decreas n e yee FTEs and employee wages, as well as impacts from other agencies in the benefit' pian potsare all contributing factors in the calculation. Since 2003, Ca1PERS has utilized the assumption that the value of its stock, bonds and other holdings would increase by 7.75% a year, and CalPERS annualized Investment Rate of Return (IRR) was slightly higher than the 7.75% target until the economic downturn began in 2009. Since then, with returns diminishing heavily, Ca1PERS has re ted the Investment Rate of Return be adjusted. In March 2012, the Ca1PERS Board agreed to a r ucti n in the IRR to 7.5%, to be phased in over two years. This will increase Miscellaneous Employer ontrib tion Rates between 1-2% and most Public Safety Plan's Employer Contribution Rate will ' -3%. Rates increases will begin in FY 2013/14. A portion of this increase will be offs , nder e second tier 2% @ 60 plan for new employees. Even though the economic downturn has impacted inv a turn ®eavily, the "Miscellaneous 2% at 55 Risk Pool" was able to sustain the plan long -t b he plan design was based on actuarially sound principles. Other enhanced plans 5� 7@55 for miscellaneous, and the further enhanced plans such as 3% @ 50 or 55 for Publ. afe ) w - +° ilt based on short term assumptions that were estimated, not realized, and ultimatel p + :d + be financially unsustainable. The City has not yet received the official r. for the new 2% @ 60 Risk Pool Plan, however it is expected to be set close to 1 ' b we year story of Saratoga's employer contribution rates for the 2% @ 55 Risk Pool is provide + +e + . +n_ with the new PERS employer contribution rate for FY 2011/12, and the projected PERS em + r con++ ution rate for FY 2012/13. Fiscal Year Employer Contribution Rate FY 2007/08 11.390% FY 2008/09 11.070% FY 2009/10 [ 11.276% FY 2010/11 11.863% FY 2011/12 12.856% FY 2012/13 13.300% B-28 CITY OF SARATOGA FINANCIAL SUMMARIES ■ As shown in the schedule, the City of Saratoga pension plan Employer Contribution Rate for FY 2011/12 is 12.856% of payroll; the expected rate for FY 2012/13 is slightly higher at 13.30% of payroll. Ca1PERS' estimate for FY 2012/13 assumes there are no amendments and no liability gains or losses (such as larger than expected pay increases, or more retirements than expected). As gains and losses cannot be predicted in advance; the projected FY 2012/13 employer contribution rate is just an estimate. Ca1PERS will provide the City its actual rate for the following fiscal year in the annual valuation report to be issued in October, 2012. PEMHCA Section 22892 of the Public Employees' Medical and Hospital Care Act (PEMHCA), establishes c tract agencies minimum monthly health premium contribution for their participating active membership. The employer contribution is adjusted annually by the board to reflect any changes in the medical care component of the CPI -U. The minimum employer contribution is $112 for ,, lendar year 2012, and $$115 for calendar year 2013. The City includes this amount in the budget as an ongoing retiree cost, which currently amounts to approximately $20,000 per year for an estimat 5 retiree. B-29 CITY OF SARATOGA FINANCIAL SUMMARIES ■ TOTAL FUNDED STAFF BY DEPARTMENT Full Time Equivalents (FTE) City Manager's Department City Manager Assistant City Manager Executive Assistant to CM City Clerk Human Resources Manager Administrative Analyst I/II 2008/09 2009/10 2010/11 2011/12 2012/13 Funded Funded Funded Funded Funded 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.90 - 1.00 0.75 0.75 0.90 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - 1,00 1.00 0.90 1.00 1.00 Total FTEs 6.00 5.75 5.55 3.90 4.00 Finance & Administrative Services Department Finance & Administrative Services Director Human Reources Manager Information Technology Administrator Supervising Accountant Accountant I/II Accounting Technicians 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 3.00 3. .00 1.00 0.90 3.00 1.00 1.00 1.00 0.90 3.00 Total FTEs 6.00 6 5.90 6.90 6.90 Community Development Department Community Development Director Senior Planner Planner I/II Plan Check Examiner/Engineer Senior Arborist Building Official Building Inspector Office Specialist Il/111 Code Compliance Specialist Total FTEs Public Works Departme Public Works Dir Senior Civil E Ass. ngineer VII 1.00 1.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1 ,00 1.00 1.00 .00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 14.00 12.00 12.00 1.00 1.00 1.00 1.00 II/111 1.75 Pa R Mainte ce Manager 1.00 Park ar -nance Lead 1.00 Parks .intenance Specialist 1.00 Parks Maintenance Worker I/II/III 6.00 Street Maintenance Manager 1.00 Street Maintenance Lead 1.00 Street Maintenance Specialist 1.00 Street Maintenance Worker I/II/III 4.00 1.00 1.00 1.00 1.00 1.75 1.00 1.00 1.00 6.00 1.00 1.00 1.00 4.00 1.00 1.00 1.00 0.90 1.75 1.00 1.00 1.00 6.00 1.00 1.00 1.00 4.00 1.00 1.00 2.00 1.00 1.00 1.00 2.00 2.00 1.00 12.00 1.00 1.00 1.00 0.90 1.75 1.00 1.00 1.00 5.90 1.00 1.00 1.00 4.00 1.00 1.00 2.00 1.00 1.00 1.00 2.00 2.00 11.00 1.00 1.00 1.00 0.90 1.75 1.00 1.00 1.00 5.00 1.00 1.00 1.00 4.00 Total FTEs 21.75 21.75 21.65 21.55 20.65 B-30 CITY OF SARATOGA FINANCIAL SUMMARIES ■ TOTAL FUNDED STAFF BY DEPARTMENT Recreation & Facilities Department Recreation & Facilities Director Senior Recreation Supervisor Recreation Supervisor Recreation Program Coordinator Facility Coordinator Office Specialist II/III Facility Maintenance Supervisor Facility Maintenance Lead Facility Maintenance Worker I/II/III 2008/09 2009/10 2010/11 2011/12 2012/13 Funded Funded Funded Funded Funded 1.00 1.00 1.00 1.00 0.60 2.00 1.00 1.00 2.00 1.00 1.00 1.00 0.60 1.75 1.00 1.00 2.00 1.00 1.00 1.00 0.60 1.90 1.00 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 0.60 0.60 1,9.0, 1.75 1.00 t 1.00 1.00 1.00 2.00 '' 2.00 Total FTEs 10.60 9.35 9.50 9.50 9.35 TOTAL STAFF FTEs 58.35 54.85 FUNDED HOURLY STAFFING BY 1''�tTiYuI T 53.85 51.90 City Manager's Department HR Specialists Student Interns Executive Assistant Administrative Services Department Senior Accountant Accounting Technician IT Specialist HR Specialists Student Interns Community Developm GIS/Forestry I Plann 0 2008/09 Funded 010/11 2011/12 nded Funded 800 60 960 2,000 2,000 2,080 2,040 aronent ectors 1,840 1,840 1,840 1,840 Ma 9 ff orkers 2,080 2,080 2,040 2,000 Recreatio Facilities Department Facility Attendents 1,700 1,200 1,362 1,500 Recreation Leaders 4,300 2,034 2,667 500 1,600 1,568 1,568 900 960 1,200 2,000 1,768 940 940 940 940 450 - - 1,200 1,200 800 800 Total Annual Hours 19,870 14,834 14,217 14,116 Temporary Hours converted to FTEs 9.55 7.13 6.84 6.79 Total FTEs 67.90 61.98 61.44 60.64 B - 31 2012/13 Funded 1,200 2,000 968 500 940 800 1,840 1,500 500 10,248 4.93 56.83 • CITY OF SARATOGA FINANCIAL SUMMARIES ■ Go 5o 40 30 20 10 0 2008/09 STAFFING BY DEPARTMENT Four Year Staffing Trend 2009/10 2010/11 2011/12 2012/13 • City Manager's Department ■Administrative Services ❑ Community Development • Public Works • Recreation Department ti TOTAL STAFF BY DEPARTMENT Full Time Equival is Re artment ive Services Development orks ation Department 2008/09 2009/10 2010/11 2011/12 Funded Funded Funded Funded 6.00 5.75 5.55 3.90 6.00 6.00 5.90 6.90 14.00 12.00 12.00 12.00 21.75 21.75 21.65 21.55 10.60 9.35 9.50 9.50 Total Staff by Department 58.35 54.85 54.60 53.85 B-32 2012/13 Funded 4.00 6.90 11.00 20.65 9.35 51.90 CITY OF SARATOGA FINANCIAL SUMMARIES ■ STAFFING SUMMARIES Five Year History of Department Staffing by Fund 6o.00 - 50.00 - 40.00 - 30.00 - 20.00 - 10.00 - 2008/09 2009/10 2010/11 2011/12 2012/13 0 Special Revenue Funds 0 Internal Service Funds ® General Fund Full Time Equivalents (FTE) General Fund City Manan r' artme A TOTAL DEPARTMENTAL STAFF BY FUND e10 ent Rec , 'on _ , artment Total Ge Fund FTEs 2008/09 2009/10 2010/11 2011/12 Funded Funded Funded Funded 5.70 5.70 5.50 3.90 4.85 4.85 4.75 5.70 14.00 12.00 12.00 12.00 21.05 21.05 20.95 20.85 6.65 5.20 5.35 5.30 52.25 48.80 48.55 47.75 Internal Service Funds City Manager's Department 0.30 0.05 0.05 - Administrative Services 1.15 1.15 1.15 1.20 Public Works 0.70 0.70 0.70 0.70 Recreation Department 3.95 4.15 4.15 4.20 Total Internal Service Funds 6.10 6.05 6.05 6.10 Total FTEs 58.35 54.85 54.60 53.85 B-33 2012/13 Funded 4.00 5.70 11.00 19.95 5.45 46.10 1.20 0.70 3.90 5.80 51.90 CITY OF SARATOGA FINANCIAL SUMMARIES ■ B-34 FY 2012/2013 Capital Budget — New CIP Projects Proposed for Funding STREETS PROGRAM Fruitvale Avenue Median Improvements Arroyo de Arguello Outfall Repair 1 Cost Description $50,000 Fruitvale Median Beautification, West Valley Coll West Valley College and City of Saratoga Joint Median B installation of an irrigation system and lands Avenue and San Marcos Road. The proje and repairing the drainage system. Rationale & The estimated project cost totals $ Budget Valley College. The remaining $3 Impacts design the median and also an annual amount of $1 Cost $70,000 Description Re Saratoga Joint Project. The utification Project involves the ing on Fru.fvale Avenue between Allendale wild also include restoring the edge of the median f which $90,000 or 72% will be funded by West be funded by the City of Saratoga. The City will manage the project. The City anticipates spending tain the median. - c rusted corrugated metal storm drain outfall pipe. The City of u fall pipe and structure. A site assessment by Santa Clara Valley Water (SCV ii staff in 2011 revealed the corroded pipe and recommended replacement to t erosion of creek banks. SCVWD has offered to pay for half of the cost to repair al & SCV ) i recommends using SMP permit procedure to fix outfall, and commits to providing the p anning, design, and construction services similar to the Padero Court project. SCVWD will provide accommodations this summer to prepare for the next rain season, if the City chooses to repair this project this summer. New CIP Projects Proposed for Funding - 1 Quito Road Storm Drain Project ;L 91,Nflifrla j tri Parker Ranch Retaining Wall Repair Cost Description Rationale & Budget Impacts $40,000 Build two storm drains and replace the curb, gutter, and Paseo Olivos. One storm drain would be installed on the Paseo Olivos and the other storm drain would be at th corner connecting to the City of San Jose's storm d d asphalt at Quito Road and rner of Quito Road and orner on the north west uito Road. There are currently no storm drains on the co er oad and Paseo Olivos. As a result, water collects at the corner, creates otential ti'a c hazards and undermines the roadway. The City of Saratoga must obtai ncr9achment permit from the City of San Jose before it can begin the project. Buil o *'drains would diminish the need for continuous repair of ruined asphal Cost $40,000 Description There are tw now starti a r <'ning .11s at1"'arker Ranch which were developed 30 years ago and are equire repair. One retaining wall is located on Parker Ranch Road etaining wall is on Vista Arroyo Court. Rationale & Budget reel cts requi size of the project. If the retaining walls are not repaired, there may be more significant and costly repair in the near future. aining wall on Parker Ranch, which is the longer of the two walls, requires nt of failing horizontal boards. The other retaining wall on Vista Arroyo Court s an extension to prevent erosion. No formal bidding is required because of the small New CIP Projects Proposed for Funding - 2 PARKS & TRAILS PROGRAM Quarry Property Park and Trail Master Plan Cost $100,000 Description South of Highway 9 (Congress Springs Road), west of Hal one s. This property is bordered by two private parcels on its east side, private developed reels on its south and a large open space parcel owned by San Jose Water mpanyon.itg west. Saratoga Creek runs along portions of the north property line. The City must develop a Final Management accomplish the purposes of the Conservati of this Master Plan shall be subject to shall include the following provisi • Promote the protection of urces and public access for recreation • Implement of an er ogram • Develop the 5.,... +ga to3 e -Sea Trail as contemplated by the City of Saratoga General Plan Rationale & Budget Im i acts lan) for the Property in order to nt. The development and implementation strict review and input. The Master Plan • Obtain an ulatory approvals. The City of Sarat fired this 63.35 -acre property from the County of Santa Clara in s part of the acquisition agreement, the City dedicated a Conservation Easement over erty in f r of Midpeninsula Regional Open Space District (District) and the County Clara (County). The following are the goals that staff hopes to accomplish with the rvation Agreement. • sure that the Property will be retained in perpetuity in its natural scenic and open space condition. Prevent any use of the Property that will impair with its open space values Promote public access for hiking and other recreation. The Final Management Plan, after it is developed requires minimal maintenance cost. However, there will be costs and CIPs associated with implementation of the Final Management Plan. New CIP Projects Proposed for Funding - 3 FACILITIES IMPROVEMENT PROGRAM Electronic Door Lock System — Phase 2 Emergency Power Backup — Phase 2 Cost $40,000 Description Rationale & Budget Impacts This project funds installation of a Stanley wireless sec both buildings at the Prospect Center and to update e Yard. This project will be located at both buildi number of the Park buildings and locations used Currently, over half of the doors at City plans to increase security of the Pros security system that would elimin working hours. Doors would be s the buildings at the Prospe property during off hours update the Master key s locations around the City due for a comple security and eli ss This to the exterior doors at y system used at the Corp ect Center, the Corp Yard, a t Department. e manually locked or unlocked. The City pus by investing in an electronic locking ty of doors being left unlocked during non- tically unlock and lock based on requirements of `sequently, the threat of loss or damage to City r- iced. The Corp Yard portion of the project will be to at the Corp Yard, most of the Parks buildings and at field he Street's department. This Master key system has been f the existing keys for the Corp Yard system to improve the er legacy lost keys ors y orated in the City's operating budget. reduce the possibility of loss of or damage to City property that could being left unlocked after hours. Following project completion, the increase maintenance expenses. Project management has already been ost $60,0`10 urchase and install emergency power generator for the City's information technology server room and some of the City Hall buildings during PG&E power outages. The emergency power supply will be installed outside on a cement pad behind the Engineering Division section of the City Hall buildings. During power outages, a 15 kilowatt portable generator is used to supply power to the main City Hall campus. There is a time delay before the power from the portable generator is available, since the portable generator must be brought over to the offices from the corporation yard after an outage occurs. It must be manually plugged into the City's power supply because it does not automatically turn on to provide power to the servers when electricity goes out. While individual computers and network servers have battery backups to prevent abrupt power loss and spikes, the batteries run out of power within 10 to 30 minutes. If a network server loses power before staff shuts it down or the portable generator is installed to keep power running, data loss may occur. New CIP Projects Proposed for Funding - 4 Rationale & Budget Impacts Additionally, the City's portable generator is not of suffi amperage to fully power the office buildings. The portabl restore half of the electrical panel, providing emergency and limited use of lights, copy machines, and other electr Building; the Planning and Engineering offices co lowatt size to provide enough ator only has the capacity to ower the computer server room 1 equipment in the Administration without power. Installing a permanent alternative power supply that st utomatically during power outages will provide added protection for the 's e rs and network servers, while also ensuring that City operations remain acti - Ibw ? power outages. This is especially critical during emergency situations. Installation of an emergency pow by staff. Following installation, g by staff. Staff time req ill be performed by a contractor and supervised intenance is expected to be minimal and will be conducted ee this project is accounted for in the operating budget. New CIP Projects Proposed for Funding - 5 ADMINITRATIVE IMPROVEMENT PROGRAM General Plan Safety Element Cost $175,000 (Federal Disaster Grant) Description Retain consultant(s) to update the City's Safety Element. laue to ,=b~ Sassage Senate Bill (SB) 351, Chapter 150 in 1971, each local municipality must h e t Safety Element as part of its General Plan and it must include both safety Efnd," is ety components. SB 351 was adopted in reaction to the February 9, 1971 San Ferna o Earthquake, which measured 6.4 in magnitude, and resulted in 65 deaths, 2,500 re orte ' njuries, and more than $500 million in property damages. The purpose of the Safety Eleme associated with fire, geological ac Safety Element should also ident during these types of e emergency service deliv 1 Plan is to identify the potential hazards ing, and any combinations of these hazards. The g m anmade structures that might be vulnerable ions and dangers which might result from poor t access, and lack of public preparedness or information. Rationale & The City was aware e. 'x'175, i?t , from the 2008 Disaster Recovery Program. This Program Budget Impacts was funded by t Feder Gov ent in response to the California wildfires in 2008 and is administere. t Stat -''s Department of Housing and Community Development CDBG Pr t am. - ds must be used toward hazard mitigation activities, such as creating ing 1 hazard mitigation plans or general plan safety elements. Since the City had updat- s local hazard mitigation plan, it will use the funds to hire a consultant to its Safe y Element, which was last updated in 1987. Updates will include developing or ating maps pertaining to earthquakes, flooding, fire hazards, and geological hazards; inco t : . ing the most up-to-date maps; and referencing the City's updated Emergency Prep .a edness Plan. Staff time will be required in order to perform general administrative functions such as grant management, coordination, evaluation, and reporting. Grantees are allowed to use up to two percent (2%) of the total grant amount for reasonable general administrative expenses. New CIP Projects Proposed for Funding - 6 Risk Management Mitigation Conditional Use Permit Reimbursement Project Cost Description Rationale & Budget Impacts $50,000 Risk Management Mitigation This project will allocate $50k in annual funding to reduc require immediate attention to reduce the frequenc used for emergency repairs, to mitigate ADA co management. Cost Description Rationale & Budget Impacts $25,000 CUP Reimburseme Economic Devel N/A ures in the City that f claims. Funding will be ues, and improve the City's risk courage new business startups in the Village. New CIP Projects Proposed for Funding - 7 UNFUNDED PROGRAMS Congress Springs Park North Side Access Cost Description $140,000 Develop a new trail connecting residential neighborhood to N. side of CSP. Rationale & N/A Budget Impacts Village to Hakone Gardens Trail Cost $120,000 Description Create a pedestrian trail along BBW from Rationale & N/A Budget Impacts Saratoga Creek Trail Cost $150,000 Description Create pedestrian trail a Clara Valley Water Dis Rationale & N/A Budget Impacts Via Regina Trail Cost $60,000 Description C Rationale & ............................................................................................................................................................................................................. __. Budget Impac Foothill Park Landscaping and Irrigation Project Wildwood Park Restroom Improvements Cost $1 Des iption Re-ddscaping and irrigation in a portion of Foothill Park. e & N/A t Hakone Gardens. Avenue east of Hwv 85 ga Creek from property on Walnut Ave. owned by Santa ga- Sunnyvale Road. trian-equestrian trail connecting Via Regina and Villa Oaks Lane. $50,000 on Expansion of restroom facilities at Wildwood Park necessitated by increased use of park for special events. vale & N/A et Impacts New CIP Projects Proposed for Funding - 8 • FINANCIAL POLICIES The City of Saratoga manages its financial, operational, and budgetary affairs in accordance with the following general policy statements. These policies represent long-standing accounting, budgeting, debt, investment, and reserve principles and practices, and are the foundation which guides the City in maintaining its financial stability. GENERAL FINANCIAL POLICIES: • The City Council's financial based goals, objectives, and policies will be incorpo implemented with the City's Operating and Capital Budgets. • Efforts will be coordinated with other governmental agencies and joint power associatidhs to achieve common policy objectives, share the cost of providing governmental servi n+ ort legislation favorable to cities at the state and federal level. • The City will seek out, apply for, and effectively administer federal, telocal, and foundation grants which address the City's current priorities and policy object AUDITING AND FINANCIAL REPORTING: • California State statute requires an annual transactions by independent Certified Public Accepted Accounting Principles (GAAP) Governmental Accounting, Auditing financial audit of the City's financial records and Accountants. The City will comply with Generally annual financial reports pursuant to 1 Reporting (GAAFR) guidelines. • Weekly check registers and monthl approval at City Council meetings. Council retreat. and Investment Reports will be submitted for review and *d- ear budget status report will be presented at the City APPROPRIATIONS AND BUD RY NTROL: • The City Council will adopt al/annual balanced operating budget and the first year of an integrated five-year capital improvement plan budget, to be effective for the fiscal year running from July 1st through June "30th. Balanced budgets present budgeted sources in excess of budgeted uses. Operating and capital budgets are to align with the City's long-term financial goals. ach year the Finance Department will provide an updated five-year financial forecast to the City cil prior to Council's review of the proposed annual budgets to provide a long-range fiscal ctiv- to the City's economic status. • Budg is are prepared on the same basis used for financial accounting and reporting: governmental fund types (General, Special Revenue, and Debt Service) are budgeted according to the modified accrual basis of accounting; proprietary funds (Internal Service Funds) and fiduciary funds are budgeted under the accrual basis of accounting. • The City Council maintains budgetary control at the fund level; any changes in total fund appropriations during the fiscal year must be submitted to the City Council for review and Council majority approval. Operating Budget appropriations lapse at the end of each fiscal year unless specifically re -appropriated by the City Council in the following fiscal year. Capital Budget appropriations are structured as a multi-year workplan; therefore project expenditure balances are carried forward to the following fiscal year as part of the annual budget adoption until funding is exhausted or the project is completed. • The City Manager is authorized to implement the City's workplan as approved in the adopted budget. Within a specific fund, the City Manager may transfer appropriations between categories, departments, programs, and projects as needed to implement the adopted budget, provided no change is made to the total appropriation amount provided for any one fund. • Recurring expenditures are to be funded with recurring revenues, or funds specifically operational use. One time expenditures may be funded with one-time revenues or fun General Fund balance reserves are for non-recurring one-time and capital projec for In • The CIP Streets/Pavement Management program has an established minimum nufunding goal of $1,000,000, with Gas Tax Revenues and Road Impact Fees as designated,fund:g sources. • $100,000 of TEA General Fund property tax revenues are designat acility Improvements. • The Recreation Department cost recovery rate is to exceed the ornia Parks & Recreation Society's (CPRS) average cost recovery rate for all Califnia recation departments as established in the current CPRS benchmarking report (approximat 65° REVENUE POLICIES: • The City will encourage a diversif any one revenue source. revenue system to offset short -run fluctuations in • Legally restricted tax and revenue fu ources will be accounted for in the appropriate funds. General taxes and reve n t allocate ..y law or some other contractual agreement to other funds are accounted for in e G al Fund. Capital project revenues are to be directly accounted for in the appropriate capita • The City establis cost of providi other municipli services h ng pa ges and fees at a level that recovers the direct and indirect activity or product. The City will consider market rates and charges levied by milar size for like services in establishing rates, fees, and charges. For cost recovery objectives, cost recovery ratios may vary according to policy A master schedule of User Fees is reviewed and updated each year to adjust fees to the evel. • ® Cit ill follow an aggressive policy of collecting local taxes and revenues due to the City thro t . persistent follow-up procedures, and external resources as necessary. • Unrestricted donations, gifts, and bequests to the City in excess of $5,000 must be brought to Council for approval and acceptance. All restricted donations, gifts and bequests must be submitted to the Council for approval prior to acceptance. EXPENDITURE POLICIES: • All expenditures shall be in accordance with the City's purchasing policy, travel policy, credit card policy, or any other applicable guidelines. • Expenditures are managed at the program level. Program managers are to ensure expenditures do not exceed the budgeted workplan and must take immediate action if at any time during the fiscal year an operating deficit is projected at year-end. Corrective actions may include expenditure reductions, or with Council approval, budget adjustments, service reductions, or service fee increases. PURCHASING POLICY: • The City's current purchasing policy, with an effective date of 4/23/2007, esta'. e: chasing authority levels, purchasing procedures, and requirements, for the procurement of supplies, equipment, and services, in conformance with Federal and State codes re_- ons, and City Ordinance No. 2-45. • Public Work projects which are governed by the State's Public provisions of the City's purchasing policy. de are excluded from • Guidelines established by the City's Purchasing Policy i ` cts f= = City's departments to purchase the best value obtainable, securing the maximum . t. e i . ds expended, while giving all qualified vendors an equal opportunity to do busin • All purchases exceeding $5,000 and up to $ s written quotes and must be approved by the Purchasing Officer or designee. A r es exceeding $25,000 must be authorized by the City Council. FIXED ASSETS AND INFRAS • All assets with a cost capitalized. Repairs capitalization unless th • The City will Improvement sidewalks, c URE: greater than $10,000 and a useful life of more than one year will be nce of infrastructure assets will generally not be subject to extnds the useful life of the asset. g -range fiscal perspective through the use of a five-year Capital ed to maintain the quality of City infrastructure, including streets, s anrm drains, lighting, building, parks, and trees. sset information is to provide information for preparation of financial statements in accordance GAAPwith emphasis placed on completion of GASB 34 requirements. INTERNAL SERVICE FUNDS: • Asset replacement and maintenance Internal Service Funds are to provide a consistent level of funding for asset replacement and building maintenance projects, and ensure sufficient funding is available for the regular maintenance and repair of the City's vehicles, equipment, and buildings. • Internal Services Funds are established to both allocate operating costs to departments for support and maintenance services in the effort to distribute costs appropriately, and to stabilize the City's replacement and operational costs for the purpose of providing an accurate and balanced long-range fiscal perspective of the use of services and assets. • Technology and Office Equipment replacement and maintenance Internal Service Funds are to provide a consistent level of funding for the replacement of technology assets and projects, and appropriately distribute support and maintenance costs to departments. • The Liability and Workers Compensation Insurance Internal Service Funds are to maintain adequate reserves to pay all valid self-insured claims and insurance deductibles, including tho - ' curred but not reported, in order to keep the insurance funds actuarially sound. • Each Internal Service Fund will set recovery charges at rates sufficient to meet expenses, depreciation, and cash reserve policy objectives. FUND BALANCE RESERVES: • Fund balance reserves in a governmental fund are classified as eith ting r Unreserved Fund Balances are comprised of both desisnated and undesi obligated for a specific use. • The City is to maintain the Fund Balance Reserves as 54 classifications: Non -Spendable Fund Balance — represents ouncil, in accordance with GASB at are inherently non -spendable from the vantage point of the current period. not currently have Non -Spendable Reserve funds. Restricted Fund Balance — repres nd balance that is subject to external enforceable legal restrictions. The City maintains the fo n restricted fund balances under this designation: ➢ Environmental Se i es and Bala e — in the General Fund ➢ Fund Balance nal ecial Assessment Funds ➢ Fund Balance rvice Fund Committed Fund imposes upon its the same ma ➢ Hil h pulp desig presents fund balance constrained by limitations the government i ffi� est level of decision making and remains binding unless removed in maintains the following fund balances under this designation: Fund Balance — in the General Fund ovement Plan Fund Balances nd Balance — represents fund balance identified by Council for an intended use; no legal obligations exist, the funds may be re -designated and utilized for another Council chooses. The City maintains the following General Fund reserves under this tion: Future Capital Projects Reserve Carryforward Reserves Unreserved, Undesignated Fund Balance represents fund balance not yet identified for a specific Unassigned Fund Balance — represents funding which may be held for specific types of uses or stabilization purposes, but is not yet directed to be used for a specific purpose. All Internal Service Fund Balances fall into this category, as well as the following General Fund reserves: ➢ Operations Reserve • Economic Uncertainty Reserve ➢ Development Services Reserve ➢ Uncollected Deposits Reserve ➢ Other Unassigned Fund Balance • Adequate reserves are to be maintained for all known liabilities and established City cil and community directed initiatives. • At year-end, after the City's financial records are finalized and audited, re s cess of expenditures and funding obligations close out to Unassigned Fund Balance, (or Restricted Fund Balance in Special Revenue Funds). For the General Fund, Council establiAd $500,000 as the base amount for Unassigned Fund Balance. Any accumulated available fundi)- in excess of $500,000 is to be held for appropriation to Capital Improvement and Cost Effi ' projects in the following budget process. • Year—end unassigned fund balance distribution is to be prior 1. Funding of legal obligation and liability reserves 2. Repayment of Fund Balance Reserve loan back to s 3. Replenishment of Unassigned Fund Balance to 4. Annual contribution of $100,000 to Hillsi $1,000,000 5. Designation of remaining funds Cost Efficiency Projects evels ws: e, until reserve balance reaches provement Reserve for Capital Improvement and and liabilities: 1. Petty cash 2. Retiree Medical (11 3. Development Dep • Unreserved Desi basis for the f i = g Council established purposes and obligations: 1. Operati Res (Established on July 1, 1999 at $2,000,000 to provide working capital cash e eral Fund, and increased by interest earnings at fiscal year-end at LAIF interest o a aximum of 20% of General Fund appropriations in the following fiscal year determined at year end) amount determined at y-ar end) alance The following reserves are to be maintained on an on-going is Uncertainty established at $1,500,000 opment Services Fund Balance (Reserve may be utilized per Council direction during d elopment economic downturns) 4. Environmental Services Fund Balance (Reserve is utilized at $50,000 per year to support of environmental/waste management programs) • General Fund Unassigned Reserve in total is to be maintained at a minimum of 20% of General Fund appropriations. TREASURY MANAGEMENT: • California Government Code Section 53600; City of Saratoga Municipal Code Section 2-20.035; and Section 16.0 of the City of Saratoga Investment Policy require the City Council to annually review and approve the City's Investment Policy. • It is the policy of the City of Saratoga to invest public funds in a manner which will provide the maximum security with the highest investment return, while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of funds. • The Finance & Administrative Services Department shall prepare and present to the Ci +until in sufficient detail to show the financial condition of the City at month end, the cash a -nts balance by fund, and fund balances by fund type. LONG—TERM DEBT: • Long-term Financing Debt will be confined to capital improvements or special projects that cannot be financed from current revenues, and is to be used only if the bt service requirements do not negatively impact the City's ability to meet future operating, apita' anf cash reserve policy requirements. • The term for repayment of long-term financing will not e RISK MANAGEMENT POLICY: • The City is insured for up to $25 million ene ility, auto, and property damage claims through the Association of Bay Area Gove is (ABAG) Pooled Liability Assurance Network (PLAN) Corporation. The City•s self-insured the first $25,000 for general liability and auto claims; property damage after $5,000 and third party auto claims after $10,000. xpected useful life of the project. • Workers Compensation are insur after the first $250,000 through ABAG and an excess coverage policy. The cove provides an employer liability limit of $5,000,000 per occurrence, and workers' comp per ciCcu limit of $100,000,000. The City participates in a Workers Compensation risk pool for .the i t $250,000 of coverage, known as SHARP (Shared Agency Risk Pool). Workers' Cgpapensati laims are managed by a third party administrator. • The City's role "in managing its risk management program is to be preventative in nature which will be accomplished through careful monitoring of losses, working closely with the third party administrator, and designing and implementing programs to minimize risk and reduce losses. DEVEL EN ELATED FINANCIAL POLICIES • The elopment Reserve was established to provide stability for multi-year project services. The rese e is funded from an excess of development revenues over development expenses at fiscal year-end, and used to offset those years where a shortfall occurs; when development revenues fall below development expenses. Use of the reserve is limited to a maximum of 1/3 of the reserve balance in any given fiscal year; however budgeted use of the Development Reserve is to be rescinded if and to the point where development revenues are sufficient to cover General Fund net operations • The Williamson Act, also known as the California Land Conservation Act, was passed by our California Legislature in 1965 in order to encourage rural & agricultural lands to remain undeveloped longer. When land owners enter into a contract under the act, they benefit from lower property taxes, which are based on the property's current use, rather than paying market value based tax rates. In exchange, the property is to remain undeveloped and continue to function the same way for the duration of that contract. The contracts run for 10 years and are automatically renewed unless the farmer or rancher cancels it. The City does not limit the number of Williamson Act contracts entered into each year. • The Mills Act is state sponsored legislation granting local governments the authority to enter into an agreement with individual property owners to allow reduced property tax payments in return for the restoration and continued maintenance of their historic property. Since the agreement reduces property tax assessment, the City receives a smaller share of property tax revenue in comparison to a property that is assessed at market value. The City is allowed to app thre Mills Act Contracts per year.