HomeMy WebLinkAbout09.22.22 Finance Committee Agenda PacketCity Council Finance Committee Agenda September 22, 2022
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SARATOGA CITY COUNCIL
FINANCE COMMITTEE
September 22, 2022
3:30 P.M. REGULAR MEETING
Teleconference/Public Participation Information to Mitigate the Spread of COVID-19
This meeting will be held entirely by teleconference. All members of the Committee and staff
will only participate via the Zoom platform using the process described below. The meeting is
being conducted pursuant to recent amendments to the teleconference rules required by the
Ralph M. Brown Act allowing teleconferencing during a proclaimed state of emergency when
local officials have recommended social distancing. The purpose of the amendments is to
provide the safest environment for the public, elected officials, and staff while allowing for
continued operation of the government and public participation during the COVID-19
pandemic.
Members of the public can view and participate in the meeting by:
1. Using the Zoom website https://us02web.zoom.us/j/83183289258
Webinar ID: 831 8328 9258 and raising their hand to speak on an agenda item when
directed by the Mayor.
2. Calling 1.669.900.6833 or 1.408.638.0968 and pressing *9 to raise their hand to speak on
an agenda item when directed by the Mayor.
The public will not be able to participate in the meeting in person.
Written Communication
Members of the public can send written comments prior to the meeting by commenting
online at www.saratoga.ca.us/fc prior to the start of the meeting. These emails will be
provided to the members of the Council and will become part of the official record of the
meeting.
Public Comment
Members of the public may comment on any item for up to three (3) minutes. The amount of
time for public comment may be reduced by the Mayor.
Meeting Recording Information
In accordance with the Saratoga City Council’s Meeting Recording Policy, the City
Council Finance Committee Meetings are recorded and made available to the public
following the meeting on the City website.
City Council Finance Committee Agenda September 22, 2022
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CALL TO ORDER
ROLL CALL
ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS
Any member of the public may address the Committee about any matter not on the agenda
for this meeting for up to three (3) minutes. The law generally prohibits the Committee from
discussing or taking action on such items. The Committee may choose to place the topic on a
future agenda.
AGENDA ITEMS
1. Finance Committee Minutes
Recommended Action:
Review and approve the minutes for the May 26, 2022 meeting
Finance Committee Minutes
2. 2022 Comprehensive Fee Study Project Overview
Recommended Action:
Receive Report – No action required
Comprehensive Fee Study Overview
3. 2022 Finance Committee Meeting Schedule & Topics
Recommended Action:
Review meeting schedule and agenda topics
Finance Committee Meeting Schedule & Topics
4. 2023-24 Budget Indicators
Recommended Action:
Receive Report – No Action required
2023-24 Budget Indicators
ADJOURNMENT
CERTIFICATE OF POSTING OF THE AGENDA, DISTRIBUTION OF THE AGENDA PACKET,
COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT
I, Gina Scott, Administrative Analyst for the City of Saratoga, declare that the foregoing agenda
for the meeting of the City Council Finance Committee of the City of Saratoga was posted and
available for public review on September 19, 2022, at the City of Saratoga, 13777 Fruitvale
Ave., Saratoga, CA 95070, and on the City’s website at www.saratoga.ca.us.
Signed this 19th day of September 2022 at Saratoga, California.
City Council Finance Committee Agenda September 22, 2022
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Gina Scott, Administrative Analyst
In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials
provided to the Committee by City staff in connection with this agenda, copies of materials
distributed to the Committee concurrently with the posting of the agenda, and materials
distributed to the Committee by staff after the posting of the agenda are available on the City
website at www.saratoga.ca.us and are available for review in the office of the City Clerk at
13777 Fruitvale Avenue, Saratoga, California.
In compliance with the Americans with Disabilities Act and the Governor’s Executive Order, if
you need assistance to participate in this meeting, please contact the City Clerk at
bavrit@saratoga.ca.us or call 408.868.1216 as soon as possible before the meeting. The City
will use its best efforts to provide reasonable accommodations to provide as much
accessibility as possible while also maintaining public safety.
[28 CFR 35.102-35.104 ADA title II]
City Council Finance Committee Minutes – May 26, 2022
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MINUTES
SARATOGA CITY COUNCIL FINANCE COMMITTEE
REGULAR MEETING
MAY 26, 2022
CALL TO ORDER
The meeting was called to order at 3:30 p.m. via Zoom.
ROLL CALL
Present: Mayor Tina Walia, Vice Mayor Kookie Fitzsimmons
Also Present: James Lindsay, City Manager
Nick Pegueros, Administrative Services Director
Agnes Pabis, Finance Manager
Gina Scott, Administrative Analyst
ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS
None
AGENDA ITEMS
1. Finance Committee Minutes
Recommended Action:
Review and approve the minutes for the April 28, 2022 meeting.
FITZSIMMONS/WALIA MOVED TO APPROVE THE MINUTES FOR THE APRIL 28, 2022
MEETING. MOTION PASSED BY VERBAL ROLL CALL. AYES: FITZSIMMONS, WALIA. NOES:
NONE. ABSTAIN: NONE.
2. Fiscal Year 2023 Enabling Resolutions
Recommended Action:
Receive reports.
Administrative Services Director Nick Pegueros presented a review of the four enabling
resolutions expected to go to City Council on June 15, 2022.
3. Summer Meeting Schedule
Recommended Action:
Approve meeting schedule for the summer months.
Administrative Services Director Nick Pegueros presented the option of canceling the
summer Finance Committee meetings.
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City Council Finance Committee Minutes – May 26, 2022
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FITZSIMMONS/WALIA MOVED TO APPROVE A SUMMER MEETING SCHEDULE CANCELING
THE FINANCE COMMITTEE MEETINGS FOR JUNE, JULY, AND AUGUST 2022. MOTION
PASSED BY VERBAL ROLL CALL. AYES: FITZSIMMONS, WALIA. NOES: NONE.
ADJOURNMENT
The meeting was adjourned at 3:40 p.m.
Minutes respectfully submitted:
Gina Scott, Administrative Analyst
City of Saratoga
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ADMINISTRATIVE SERVICES
Memorandum
To: City Council Finance Committee
From: Nick Pegueros
Date: September 22, 2022
Subject: 2022 Comprehensive Fee Schedule Project Overview
At their September 7th meeting, City Council approved the staff’s recommendation to select Matrix
Consulting for the City’s 2022 Comprehensive Fee Study project. The purpose of the study is to
document the full cost to perform services listed in our current fee schedule and identify any
opportunities to increase or expand fee-based cost recovery.
Matrix will give the Finance Committee a presentation on their methodology, project scope, and
preliminary project timeline.
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ADMINISTRATIVE SERVICES
Memorandum
To: City Council Finance Committee
From: Nick Pegueros
Date: September 22, 2022
Subject: Finance Committee’s Meeting Schedule and Agenda Topics
City staff seeks Finance Committee direction on meeting dates and agenda items through the end of
2022. Our proposal, listed below, corresponds with work underway in the finance division.
October 27, 2022:
• Presentation by actuarial firm Foster & Foster (formerly Bartel & Associates) – Implementation
of Governmental Accounting Standards Board Statement No. 75 (GASB 75) - Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions (retiree medical)
• Meeting minutes – September 22, 2022
November 29, 2022*:
• Presentation by independent auditor Chavan & Associates, LLP - Transmittal of the Annual
Comprehensive Financial Report (ACFR)
• Meeting minutes – October 27, 2022
*November’s regular meeting schedule is November 24th, Thanksgiving Day. We recommend scheduling a special meeting for November
29th.
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ADMINISTRATIVE SERVICES
Memorandum
To: City Council Finance Committee
From: Nick Pegueros
Date: September 22, 2022
Subject: 2023-24 Budget Indicators
As presented in the budget adoption process, City staff is monitoring data points that will influence
forecasts as the City Council commences their 2023-24 budget deliberations in January. Estimated
dollar impacts on 2022-23 have yet to be quantified, given limited data. The following data points are
now available:
Item Description Estimated 2022-23
Budget Impact
Property
taxes
Santa Clara County Treasurer-Controller’s Office has updated its
property tax estimate for Saratoga in 2022-23. The update shows a
5.08% increase year-over-year in core property taxes, in line with
budget estimates of $17.1 million. Core property taxes lag current
real estate transactions by up to a year.
We continue to monitor property transfer taxes, budgeted at $0.4
million, which more quickly incorporates growth/reductions in real
estate activity.
Positive. We anticipate
receiving the full
amount budgeted for
property taxes.
2022-23
Pavement
Management
Program
(PMP)
The CalTrans Statewide Crude Oil Price Index for September 2022
is down approximately 16% from its 5-year high in July 2022. This
Index is used for calculating payment adjustments for paving asphalt
under the special provisions section "Payment Adjustments for Price
Index Fluctuations" in the 2022-23 PMP contract awarded in July for
a not-to-exceed amount of $3.6 million. If the Index remains below
the July 2022 high, the PMP will experience budget savings allowing
for additional PMP work.
Finance Committee's recommendation to add roads to the existing
facility replacement reserve augmented PMP funding in 2022-23 by
$1 million. The projected Road and Facility Replacement Reserve is
$3.7 million at fiscal year-end.
Positive. We anticipate
additional funds
available for the PMP.
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Item Description Estimated 2022-23
Budget Impact
Interest
earnings
The City's investment earnings in the Local Agency Investment Fund
(LAIF) increased from 0.32% in 2022 Q1 to 0.75% in 2022 Q2,
yielding an extra $42,000 in quarterly earnings. We anticipate
continued increases in investment earnings as the Federal Reserve
works to tame inflation.
Positive. We anticipate
higher than budgeted
investment earnings.
Cost
Recovery
Study (fees,
licenses, and
permits)
City Council awarded a contract to Matrix Consulting on September
7 for the 2022 Comprehensive Fee Study Project. The consultant’s
work will substantially wrap up at the beginning of January, with the
Finance Committee discussing the results and policy
recommendations to the City occurring in February and early March
2023. Fees, licenses, and permits account for $2.6 million in General
Fund revenue, or approximately ten percent (10%.)
Positive. Project
commences in October
with the wrap-up in
early January.
Unfunded
Pension
Liability
California Public Employees’ Retirement System (CalPERS)
announced that preliminary investment return recorded a 6.1% loss
for the fiscal year ended June 30, 2022. We are working with
CalPERS to calculate the estimated impact on Saratoga’s unfunded
pension liability.
Neutral. The unfunded
liability will not impact
required pension
contributions for fiscal
years 2022-23 or 2023-
24.
Overall, however,
CalPERS’ loss is
Negative for the City’s
long-term financial
health.
Inflation
(CPI-U)
The CPI-U for the San Francisco region increased 5.7% from August
2021 to August 2022. The CPI-U increase exceeds property tax
growth for the same period.
Uncertain. Staff
continues to monitor
the impacts of inflation
on City costs.
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