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Home My WebLink About2020.21 Budget Presentation - 6.3.2020FY 2020/21 PROPOSED OPERATING & CAPITAL BUDGET June 3, 2020 FY 2020/21 PROPOSED BUDGET OVERVIEW Budget Development Recession Impacts Operating Budget Capital Improvement Plan Questions? BUDGET DEVELOPMENT PROCESS 1 February City Council Retreat 2 March Capital Project Study Session 3 May Operating Study Session 4 June Proposed Budget Hearing 5 June Budget Adoption Year -Round Council Finance Committee Meetings RECESSION IMPACTS CITY COMPARISONS SARATOGA’S REVENUE STRUCTURE UNKNOWNS GENERAL FUND REVENUE NORMAL DISTRIBUTION •Property Tax •Sales Tax •Hotel Tax (TOT) •Other Taxes •Services & Fees •Other Revenues Property Tax , 61.0% Sales Tax, 4.8% TOT, 1.5% Other Taxes , 12.5% Services & Fees 13.0% Other Revenues, 7.2% IMPACT UNKNOWNS PROPERTY TAX SALES TAX HOTEL TAX (TOT) CITY SERVICES & FEES RENTAL INCOME INTEREST REVENUE IMPACTS Property Tax:Transfer/Supplemental Taxes Sales Tax:Decline in sales, tax payment delays Hotel Tax:Decline in events and travel Service Fees:Reduction in development applications Permits:Reduction in construction activity Other Revenue:Interest, Rental Fees, Intergovernmental CITY COMPARISONS Estimated General Fund Revenue Losses City Estimated Loss $Estimated Loss % Monte Sereno $ .7 million 16.2% Los Altos Hills $ .9 million 6.5% Saratoga $ 1.5 million 6.5% Los Gatos $ 1.8 million 3.8% Gilroy $ 4.3 million 8.0% Morgan Hill $ 6.7 million 13.5% Cupertino $ 7.6 million 8.8% Mountain View $ 8.5 million 5.8% Milpitas $ 13.0 million 10.6% Santa Clara $ 22.7 million 10.0% Sunnyvale $ 28.0 million 12.0% Palo Alto $ 30.0 million 12.4% San Jose $ 72.0 million 6.0% * Campbell and Los Altos data not available FY 2020/21 OPERATING BUDGET •General Fund Revenues •General Fund Expenditures •Other Fund Budget Summaries GENERAL FUND REVENUES 2019/20 2019/20 2020/21 % of General Fund Revenues Budget Estimated Proposed Budget Property Tax 14,009,000 14,952,500 14,936,000 66.6% Sales Tax 1,100,000 950,000 750,000 3.3% Transient Occupancy Tax 350,000 183,800 150,000 0.7% Business & Other Taxes 515,000 555,000 505,000 2.3% Franchise Fee Tax 2,382,000 2,451,000 2,432,000 10.8% Intergovernmental 515,000 501,456 500,000 2.2% Fees, Licenses & Permits 1,841,850 1,465,412 1,483,180 6.6% Charge for Services 1,184,442 923,096 872,584 3.9% Interest 510,000 513,167 210,000 0.9% Rental Income 399,250 269,409 347,699 1.6% Other Sources 244,977 248,672 238,077 1.1% Total GF Revenues 23,051,519 23,013,511 22,424,540 100% Fund Transfers In - 1,000,244 - Total Rev & Transfers 23,051,519 24,013,756 22,424,540 PLUS: GF FUND BALANCE SOURCES 2019/20 2019/20 2020/21 General Fund Revenues Budget Estimated Proposed Use of (Addition to) Fund Balance Reserves Carryforward Reserve 47,647 47,647 - Environmental Reserve 50,000 50,000 50,000 CIP Reserve 3,005,000 3,005,000 2,485,500 Hillside Reserve 500,000 500,000 - Hillside Reserve Repayment - (500,000) - LLD Fund Closeout - - 850,244 Total Operating Sources 26,654,166 27,116,403 25,810,284 GENERAL FUND EXPENDITURES 2019/20 2019/20 2020/21 % of General Fund Expenditures Budget Estimated Proposed Budget Salary & Benefits 8,820,625 8,217,249 9,075,240 39.1% UAL Payment 1,050,000 1,041,100 1,014,300 4.4% Materials & Supplies 336,370 259,735 303,665 1.3% Fees & Charges 928,982 914,776 1,045,427 4.5% Consultant & Contract Svs 2,526,776 2,187,539 2,365,481 10.2% Sheriff Services 6,057,371 6,057,371 6,408,958 27.6% Meetings, Events & Training 180,210 99,272 117,500 0.5% Community Grants & Events 308,636 258,546 328,932 1.4% Fixed Assets 20,000 20,000 - 0.0% Internal Services Charges 2,629,224 2,629,224 2,563,404 11.0% Total Expenditures 22,858,195 21,684,813 23,222,906 100.0% PLUS: GF FUND BALANCE USES 2019/20 2019/20 2020/21 General Fund Expenditures Budget Estimated Proposed Transfers Out Streets CIP 1,560,000 1,560,000 905,500 Park & Trails CIP 1,495,000 1,495,000 795,000 Facilities CIP 375,000 375,000 500,000 Admin & Technology CIP 75,000 75,000 285,000 Total Transfers Out 3,505,000 3,505,000 2,485,500 Total Expenditure & Transfers 26,363,195 25,189,813 25,708,406 Net Operations 290,971 1,926,590 101,878 GENERAL FUND SUMMARY Estimated Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Operating Funds General Fund Reserves Environmental Services 113,182$ -$ -$ (50,000)$ 63,182$ Hillside Stability 1,000,000 - - - 1,000,000 Capital Projects 2,514,134 (25,000) (2,485,500) 426,346 429,980 Facility Reserve 3,200,000 - - 500,000 3,700,000 Working Capital 1,000,000 - - - 1,000,000 Fiscal Stabilization 3,150,000 - - - 3,150,000 LLD Closure Reserve 850,244 - - (850,244) - Compensated Absences 249,620 - - - 249,620 Other Unassigned 1,426,346 22,449,540 (23,222,906) (26,102) 626,878 Total General Fund Reserves 13,503,526$ 22,424,540$ (25,708,406)$ -$ 10,219,660$ OTHER FUND BUDGETS SPECIAL REVENUE FUNDS INTERNAL SERVICE FUNDS DEBT SERVICE FUNDS TRUST & AGENCY FUNDS CAPITAL PROJECT FUNDS SPECIAL REVENUE FUNDS •Landscape & Lighting •Landscape •Lighting •Combo •Storm Water •Pre-Prop 13 Fund Closures LANDSCAPE & LIGHTING FUNDS Estimated Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Special Revenue Funds Landscape & Lighting Districts 767,379$ 512,131 (507,457) - 772,053 Total Special Revenue Reserves 767,379$ 512,131$ (507,457)$ -$ 772,053$ INTERNAL SERVICE FUNDS Insurance Support Services Asset Replacement Funds INTERNAL SERVICE FUNDS Estimated Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Internal Service Funds Liability/Risk Management 534,895$ 511,362 (774,764) - 271,492 Workers Compensation 246,803$ 185,000 (220,910) - 210,894 Office Support Services 118,378$ 25,000 (69,250) - 74,128 IT Services 357,167$ 666,000 (750,083) - 273,084 Vehicle & Equipment Maintenance 270,119$ 275,000 (268,800) - 276,319 Facility Maintenance 625,213$ 900,000 (956,382) - 568,831 Vehicle & Equipment Replacement 534,596$ - (250,825) - 283,771 IT Equipment Replacement 527,343$ 150,000 (252,100) - 425,243 Facility FFE Replacement 532,472$ 200,000 (93,900) - 638,572 Total Internal Service Reserves 3,746,985$ 2,912,362$ (3,637,014)$ -$ 3,022,334$ DEBT SERVICE General Obligation Bond Fund Arrowhead Community Facility District Fund DEBT SERVICE FUNDS Estimated Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Debt Service Funds 2001 Series GO Bond 820,170$ 772,250 (844,635) - 747,785 2018 Arrowhead CFD Bond 300,878 152,460 (157,600) 295,738 Total Debt Service Funds 1,121,048$ 924,710$ (1,002,235)$ -$ 1,043,523$ TRUST & AGENCY FUNDS •West Valley Clean Water Program •Arrowhead Community Facility District Project Fund TRUST & AGENCY FUNDS Estimated Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Trust & Agency Funds West Valley Clean Water JPA 581,759 985,916 (980,916) - 586,759 Arrowhead Project Fund 408,605 - - - 408,605 Total Trust & Agency Funds 990,364$ 985,916$ (980,916)$ -$ 995,364$ CAPITAL IMPROVEMENT PLAN FUND SUMMARIES Streets Parks & Trails Facilities Administrative & Technology CAPITAL IMPROVEMENT FUNDS Estimated Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Capital Improvement Funds Street Projects 1,767,575 4,447,323 (6,214,897) - 1 Park & Trail Projects 1,214,750 1,398,649 (2,598,004) - 15,395 Facility Projects 671,541 620,000 (1,256,541) - 35,001 Administrative & Tech Projects 205,449 415,000 (620,449) - - Total Capital Improvement Funds 3,859,315 6,880,972 (10,689,891) - 50,397 CAPITAL IMPROVEMENT PLAN HIGHLIGHTS Annual Roadway Improvements •Project Budget: ~$2 million •Maintains annual City goal for street maintenance McFarland Ave. Curb & Gutter Replacement •Project Budget: $350,000 •Replace 2400 linear feet of curb •Replace 3600 square feet of driveway approach Fruitvale/Allendale Ave. Intersection Improvements •Project Budget: $375,000 •Adds green infrastructure to existing current project Village Clock •Project Budget: ~$46,000 •Located at entrance of Saratoga Village •Mostly funded by community donations Hakone Koi Pond Reconstruction •FY 2020/21 City Contribution: $300,000 •Initial funding to remodel pond in Hakone Gardens •Anticipated estimated project cost: $4,200,000 Kevin Moran Park Accessible Parking •Project Budget: $95,000 •Install 2 accessible parking spaces at the front of Kevin Moran Park Senior Ctr./Comm. Ctr. Generator and EV Charging Stations •Project Budget: $500,000 •Utility design and upgrade •Install Emergency generator •Install 2 electric vehicle charging stations in parking lot Safe Routes to School Needs Assessment •Project Budget: $60,000 •Creates plan to promote bicycling and walking to school Wildfire Mitigation Program •Project Budget: $50,000 •For wildfire risk reduction projects