HomeMy WebLinkAbout09.10.2024 FC Amended Finance Advisory Committee Packet CompleteCity Council Finance Advisory Committee Agenda September 10, 2024
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SARATOGA CITY COUNCIL
FINANCE ADVISORY COMMITTEE
September 10, 2024
4:00 P.M. REGULAR MEETING
AMENDED AGENDA
• 09/09/2024 ITEM 2.0 PRESENTATION SLIDES ADDED
• 09/09/2024 ITEM 3.0 PRESENTATION SLIDES ADDED
Public Participation Information
In accordance with Saratoga City Council’s Remote Public Participation Policy, members of the
public may participate in this meeting in person at the location listed below or via remote
attendance using the Zoom information below. In the event remote participation technology is
unexpectedly unavailable, the meeting will proceed in person without remote participation.
Members of the public can view and participate in the meeting by:
1. Attending the meeting in person in the Linda Callon Conference Room located at 13777
Fruitvale Avenue, Saratoga CA 95070; OR
2. Accessing the meeting through Zoom
* Webinar URL https://us02web.zoom.us/j/85916549559
* Webinar ID 859 1654 9559
* Calling 1.669.900.6833 or 1.408.638.0968
Written Communication
Comments can be submitted in writing at www.saratoga.ca.us/fc. Written communications will
be provided to the members of the City Council and included in the Agenda Packet and/or in
supplemental meeting materials.
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 following the meeting on the
City website.
City Council Finance Advisory Committee Agenda September 10, 2024
Page 2 of 3
CALL TO ORDER
ROLL CALL
REPORT ON POSTING OF THE AGENDA
The agenda for this meeting was properly post on September 5, 2024.
ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS
Any member of the public may address the committee on matters not on the Agenda. The law
generally prohibits the Committee from discussing or taking action on such items. However, the
Committee may instruct staff accordingly.
AGENDA ITEMS
1. Finance Committee Minutes
Recommended Action:
Review and approve the minutes for the May 7, 2024, Finance Committee Regular Meeting.
Finance Committee Minutes
2. Preliminary Yearend Close Report
Recommended Action:
Receive a preliminary year end close report for FY 2023-24 - No action required.
Memo - 2023-24 Yearend Preliminary Results
Attachment A - Treasurer Report June 2024
Presentation Slides (Added 09-09-2024)
3. 2024-25 Budget Indicators Report
Recommended Action:
Receive Budget Indicators Report for FY2024-25 – No action required.
2024-25 Budget Indicators
Presentation Slides (Added 09-09-2024)
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 was posted and available for public
review on September 5, 2024, at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070,
and on the City’s website at www.saratoga.ca.us.
City Council Finance Advisory Committee Agenda September 10, 2024
Page 3 of 3
Signed this 5th day of September 2024 at Saratoga, California.
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 Regular Finance Committee Minutes – May 7, 2024
Page 1
MINUTES
SARATOGA CITY COUNCIL FINANCE COMMITTEE
REGULAR MEETING
MAY 7, 2024
CALL TO ORDER
The meeting was called to order at 4:00 p.m.
ROLL CALL
Present:Mayor Yan Zhao, Councilmember Belal Aftab
Also Present:Councilmember Chuck Page (non-voting member)
Councilmember Tina Walia (non-voting member)
James Lindsay, City Manager
Ryan Hinchman, Administrative Services Director
Leslie Arroyo, Assistant City Manager
John Cherbone, Public Works Director
Ann Xu, Finance Manager
Gina Scott, Administrative Analyst
REPORT ON POSTING OF THE AGENDA
The Administrative Analyst reported the agenda for this meeting was properly posted on May 2,
2024.
AGENDA ITEMS
1. Finance Committee Minutes
Recommended Action:
Approve the minutes for the April 9, 2024, Finance Committee Regular Meeting.
AFTAB/ZHAO MOVED TO APPROVE THE MINUTES FOR THE APRIL 9, 2024, FINANCE
COMMITTEE REGULAR MEETING WITH THE AMENDMENT TO INCLUDE NON-VOTING
MEMBER, COUNCILMEMBER WALIA. MOTION PASSEDBY VERBAL ROLL CALL. AYES:
AFTAB/ZHAO NOES: NONE. ABSTAIN: NONE.
2. 2024-25 Budget Overview
Recommended Action:
Receive a 2024-25 budget overview and provide input to City staff for their presentation to
City Council on May 15th.
Ryan Hinchman, Administrative Services Director, gave a summary of the 2024-25 Budget
Overview. John Cherbone, Public Works Director, provided additional information regarding
various budget requests.
No action required.
3. 2024-25 Enabling Budget Resolutions
Recommended Action:
Received draft staff reports and provide requests for clarification.
Ryan Hinchman, Administrative Services Director, gave a brief overview of the enabling
budget resolutions which are required by State law or the Santa Clara County Assessor for
financial operations in the upcoming fiscal year.
No action required.
3
City Council Regular Finance Committee Minutes – May 7, 2024
Page 2
ADJOURNMENT
THE MEETING WAS ADJOURNED AT 4:51 PM.
Minutes respectfully submitted:
Gina Scott, Administrative Analyst
City of Saratoga
4
Memorandum
DATE: September 10, 2024
TO: Finance Advisory Committee
FROM: Ryan Hinchman, Administrative Services Director
SUBJECT: Preliminary 2023-24 Yearend Results
The following table summarizes the 2023-24 general fund preliminary yearend results.The City’s
operating budget plans for normal operations and service levels, and uses relatively conservative
estimates for revenues and expenditure budgets that allow for minor contingencies.
General Fund 2023-24 preliminary results (in $millions):
Actual Budget Variance $Variance %
Revenue 32.6 28.3 4.3 15%
Expenditures 30.5 31.9 -1.4 -4%
Net Revenue / (Expenditures)2.1 -3.6
Revenues –total revenues were higher than budget by $4.3 million or 15%.Charges for Services
were $1.3 million higher than budget due to increased building activity and Council approved fee
changes which increased cost recovery. Uses of Property and Money were $1.1 million higher
than budget primarily because of higher interest revenue.Franchises & Surcharges were $1.1
million higher than budget,primarily because of solid waste revenue believed at risk and reduced
in the budget, but actualized as encroachment fees.Property tax also remained high for the year.
Expenditures –total expenditures (including transfers to capital) were lower than budget by $1.4
million or 4%. The lower expenditures were primarily from Salaries & Benefits, with $0.8 million
of savings from vacancies.Additional savings were found in lower operating costs, and delayed
housing element implementation.
ATTACHMENTS
Attachment A -Preliminary Treasurer’s Report
5
SARATOGA CITY COUNCIL
MEETING DATE:September 4, 2024
DEPARTMENT:Administrative Services
PREPARED BY:Ann Xu, Finance Manager
SUBJECT:Treasurer’s Report for the Month Ended June 30, 2024
RECOMMENDED ACTION:
Review and accept the Treasurer’s Report for the month ended June 30, 2024.
BACKGROUND:
California government code section 41004 requires that the City Treasurer submits to the City
Clerk and the legislative body a written report and accounting of all receipts, disbursements, and
fund balances. The Municipal Code of the City of Saratoga, Article 2-20, Section 2-20.035
designates the City Manager as the City Treasurer. This report is prepared to fulfill this
requirement.
The following attachments provide financial transaction data for the City of Saratoga’s Funds
collectively as well as specifically for the City’s General (Operating) Fund, changes in investment
pool balances, and historical investment returns.
FISCAL STATEMENT:
Cash and Investments Balance by Fund
As of June 30, 2024, the City’s unaudited cash and investments totaled $48,227,619. The City
Council’s adopted policy on the Working Capital Reserve Fund states that effective July 1, 2016:
for cash flow purposes and to avoid the occurrence of dry period financing, pooled cash from all
funds should not be allowed to fall below $1,000,000. The total pooled cash balance of $48.2
million exceeds the minimum amount required.
Comerica Bank 4,873,247$
Deposit with LAIF 37,757,083$
Deposit with CalTRUST 5,597,290$
Total Cash 48,227,619$ *
*Totals may not tie due to rounding.
Cash Summary
6
City’s Current Financial Position
In accordance with California government code section 53646 (b) (3), the City is financially well
positioned and able to meet its estimated expenditure requirements for the next six months. As of
June 30, 2024, the City’s financial position (Assets $50.3M, Liabilities $8.7M, and Fund Equity
$41.6M) remains very strong and there are no issues in meeting financial obligations now or in
the foreseeable future.
The following Fund Balance schedule represents actual funding available for all funds at the end
of the monthly period. This amount differs from the above Cash Summary schedule as assets and
liabilities are components of the fund balance. As illustrated in the summary below, Total Cash
is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the
Ending Fund Balance –which represents the actual amount of funds available.
ATTACHMENTS:
Table 1 – Change in Total Fund Balances by Fund
Table 2 – Change in Total Fund Balances by CIP Project
Chart 1 – Change in Investment Pool Balance by Month
Table 3 – Local Agency Investment Fund (LAIF) Quarterly Apportionment Rates
Table 4 – CalTRUST Liquidity Fund Quarterly Yield Rates
"+
Total Cash 48,227,619$
Plus: Assets 2,066,564
Less: Liabilities (8,713,843)
Ending Fund Balance 41,580,340$
Adjusting Cash to Ending Fund Balance
7
TABLE 1: CHANGES IN TOTAL FUND BALANCE
*Negative fund balance due to authorized spending of anticipated revenues
**Includes long-term debt for Arrowhead Community Facilities District Bond
***Fund balances are unaudited, and may not include all necessary adjustments. These figures will be updated in future reports once the FY 2023/24
independent audit is completed.
Fund Description
Prior Year
Carryforward
7/1/2023
Increase/
(Decrease)
Jul-May
Current
Revenue
Current
Expenditure Transfer In
Transfer
Out
Fund Balance
6/30/2024***
General Fund
Committed Fund Balances:
Hillside Stability Reserve 1,000,000 - - - - - 1,000,000
Assigned Fund Balances:
Future Capital Project Reserve 3,534,875 - - - - (1,337,000) 2,197,875
Carryforwards Reserve 100,000 - - - - - 100,000
Road and Facility Replacement Reserve 3,700,000 - - - - - 3,700,000
Unassigned Fund Balances:
Working Capital Reserve 1,000,000 - - - - - 1,000,000
Fiscal Stabilization Reserve 3,150,000 - - - - - 3,150,000
Compensated Absences Reserve 330,000 - - - - - 330,000
Other Unassigned Fund Balance Reserve (Pre YE distribution)2,373,803 3,618,435 4,492,438 (2,625,220) - (2,170,876) 5,688,579
General Fund Total 15,188,678 3,618,435 4,492,438 (2,625,220) - (3,507,876) 17,166,454
Special Revenue
Landscape/Lighting Districts 1,001,132 354 270,802 (127,682) - - 1,144,607
2023 Storm Fund 200,884 (50,505) 14,785 (10,886) - - 154,278
Special Revenue Fund Total 1,202,016 (50,151) 285,587 (138,568) - - 1,298,885
Debt Service
Library Bond 910,655 (307,276) 409,668 - - - 1,013,048
Arrowhead Bond (1,287,086) (144,241) 52,800 (1,818) - - (1,380,344) **
Debt Service Fund Total (376,431) (451,516) 462,468 (1,818) - - (367,296)
Internal Service Fund
Liability/Risk Management 643,207 106,898 6,939 (34,152) - - 722,892
W orkers Compensation 224,868 18,965 4,698 (6,402) - - 242,128
Office Support 162,213 10,419 624 (6,076) - - 167,180
Information Technology Services 710,691 184,128 1,991 (66,340) - - 830,470
Vehicle & Equipment Maintenance 268,387 (69,793) - (18,292) - - 180,302
Facility Maintenance 692,401 124,898 872 (137,830) - - 680,341
Vehicle & Equipment Replacement 754,983 64,527 - - - - 819,509
Technology Replacement 908,565 120,622 - (10,315) - - 1,018,872
Facility FFE Replacement 855,962 183,805 - (996) - - 1,038,771
Internal Service Fund Total 5,221,277 744,468 15,124 (280,404) - - 5,700,465
Trust/Agency
WVCWP Agency Fund 651,922 (201,470) 302,663 (69,934) - - 683,181
Trust/Agency Fund Total 651,922 (201,470) 302,663 (69,934) - - 683,181
Capital Project
Street Projects 3,660,101 (1,474,730) 128,515 (535,442) 2,846,395 (57,395) 4,567,444
Park and Trail Projects 836,826 (343,836) - (35,731) 375,000 - 832,259
Facility Projects 492,336 48,759 6,365 (153,944) - - 393,516
Administrative Projects 1,334,960 410,496 34,442 (51,892) 343,876 - 2,071,882
Tree Fine Projects 27,266 13,950 - - - - 41,216
Park In-Lieu Projects 1,048,701 353,387 - (17,182) - - 1,384,906
CIP Grant Street Projects (81,233) 46,068 - (62,695) - - (97,859) *
CIP Grant Park & Trail Projects 90,000 1,166,019 (10,000) (14,890) - - 1,231,129
CIP Grant Administrative Projects (186,987) 22,195 - (41,643) - - (206,434) *
CIP Grant ARPR/SLFRF Projects 6,473,435 (1,081,211) - (101,438) - - 5,290,785
Gas Tax Fund Projects (51,189) 1,352,288 288,709 - - - 1,589,808
CIP Fund Total 13,644,216 513,386 448,031 (1,014,857) 3,565,271 (57,395) 17,098,652
Total City 35,531,679 4,173,152 6,006,310 (4,130,800) 3,565,271 (3,565,271)41,580,340
8
TABLE 2: FUND BALANCES BY CIP PROJECT
*Negative fund balance due to authorized spending of anticipated revenues
***Fund balances are unaudited, and may not include all necessary adjustments. These figures will be updated in future reports once the FY 2023/24
independent audit is completed.
CIP Funds/Projects
Prior Year
Carryforward
7/1/2023
Increase/
(Decrease)
Jul-May
Current
Revenue
Current
Expenditure Transfer In Transfer Out
Fund Balance
6/30/2024***
Street Projects
Annual Road Improvements 853,356 (459,637) 128,515 (361,086) 1,337,000 (57,395) 1,440,753
Roadway Safety & Traffic Calming 212,585 (260,761) - (100,975) 150,000 - 849
Local Roadway Safety Plan 3,047 - - - - - 3,047
Traffic Signal Controller Upgrades 80,000 (55,896) - (6,600) - - 17,504
Safe Routes to School Implementation - (23,700) - - 160,000 - 136,300
Citywide Bikeways and Sidewalk Master Plan - - - - 57,395 - 57,395
Prospect/Saratoga Median Improvement 309,379 (2,625) - (500) - - 306,254
Village Clock 2,560 - - - - - 2,560
Annual Infrastructure Maintenance & Repairs 72,915 (248,508) - (20,160) 250,000 - 54,247
Guava Court Curb & Gutter Replacement 252,514 - - - - - 252,514
Annual Corrugated Pipe Rehabilitation Project - (91,352) - (43,643) 300,000 - 165,005
Saratoga Village Crosswalk & Sidewalk Rehabilitation 31,724 (4,793) - - - - 26,932
Quito Road Sidewalk Improvements 43,370 - - - - - 43,370
Saratoga/Sunnyvale Road Sidewalk 92,158 - - - - - 92,158
Saratoga Sunnyvale Rd. Pathway Rehab Cox to Railroad Crossing 50,000 (50,000) - - - - -
Quito Road Sidewalk Gap Closure Phase 1 182,609 - - - - - 182,609
Quito Road Sidewalk Rehabilitation Gap Closure Phase 2 300,000 - - - - - 300,000
Fourth Street Bridge Widening 95,813 (3,482) - - 42,000 - 134,331
Quito Road Bridge Replacement 127,478 - - - - - 127,478
Quito Road Bridge - ROW Acquisition 3,662 - - - - - 3,662
Bridge Rehabilitation Project Phase 1 350,000 - - - 350,000 - 700,000
Annual Retaining Wall Maintenance & Repairs 332,401 (233,000) - - 200,000 - 299,401
Mt. Eden Erosion Repair 45,344 (10,090) - (2,478) - - 32,777
Pierce Road Retaining Wall 36,881 (30,885) - - - - 5,996
Unallocated Street Funds 182,303 - - - - - 182,303
Total Street Projects 3,660,101 (1,474,730) 128,515 (535,442) 2,846,395 (57,395) 4,567,444
Parks & Trails Projects
Park/Trail Repairs 150,756 (243,958) - (31,968) 250,000 - 124,830
Hakone Gardens Infrastructure Improvements (12,010) (3,600) - - 25,000 - 9,390
Hakone Pond Reconstruction 300,000 - - - - - 300,000
Beauchamps Park Playground Replacement (3,945) - - - - - (3,945) *
Guava/Fredericksburg Entrance 87,035 (9,385) - - - - 77,650
Saratoga Village to Quarry Park Walkway - Design 228,989 - - - - - 228,989
Park and Trail Fire Mitigation - (86,893) - (3,763) 100,000 - 9,344
Unallocated Park Funds 86,000 - - - - - 86,000
Total Parks & Trails Projects 836,826 (343,836) - (35,731) 375,000 - 832,259
Facility Projects
Open Work Space 78,100 (1,600) - - - - 76,500
Civic Theater Improvements 27,240 19,555 6,365 - - - 53,159
PEG Funded Project 189,312 45,344 - - - - 234,655
Community Center Improvement 19,484 (9,417) - (1,147) - - 8,920
Community Center Generator and EV Charging Stations 163,201 (8,193) - (152,797) - - 2,211
Library Building Exterior Maintenance 15,000 3,070 - - - - 18,070
Total Facility Projects 492,336 48,759 6,365 (153,944) - - 393,516
Administrative and Technology Projects
Safe Routes to School 158,755 - - - - - 158,755
City Website/Intranet 16,948 - - - - - 16,948
Software Technology Management 167,361 138,937 17,246 - - - 323,544
LLD Initiation Match Program (7,344) - - (8,325) - - (15,669) *
Horseshoe Beautification 8,237 (2,194) - (292) - - 5,751
Citywide Accessibility Assessment 26,116 (29,457) - (29,425) 100,000 - 67,233
City Art Program 78,669 - - - 25,000 - 103,669
Safe Routes to School Needs Assessment 15,748 (816) - - - - 14,932
El Quito Neighborhood Improvements 284,507 - - - - - 284,507
ADA Self Assessment 320,250 (18,500) - (12,000) - - 289,750
General Plan Update 234,195 322,527 17,195 (1,850) 218,876 - 790,943
Wildfire Mitigation Program 4,067 - - - - - 4,067
Unallocated Administrative Funds 27,452 - - - - - 27,452
Total Administrative and Technology Projects 1,334,960 410,496 34,442 (51,892) 343,876 - 2,071,882
9
TABLE 2 (cont.): FUND BALANCES BY CIP PROJECT
*Negative fund balance due to authorized spending of anticipated revenues
***Fund balances are unaudited, and may not include all necessary adjustments. These figures will be updated in future reports once the FY 2023/24
independent audit is completed.
CIP Funds/Projects
Prior Year
Carryforward
7/1/2023
Increase/
(Decrease)
Jul-May
Current
Revenue
Current
Expenditure Transfer In Transfer Out
Fund Balance
6/30/2024***
Tree Fine Projects
Citywide Tree Planting Program 27,266 13,950 - - - - 41,216
Total Tree Fine Projects 27,266 13,950 - - - - 41,216
Park In-Lieu Projects
Orchard Irrigation & Tree Planting 3,237 - - - - - 3,237
Hakone Gardens Infrastructure 82,011 (53,166) - (3,007) - - 25,838
Hakone Gardens Neighbor Wood Fence Replacement 75,000 (69,250) - - - - 5,750
Quarry Park Maintenance Building Utility Project 35,000 (23,850) - - - - 11,150
EL Quito Park Pickleball 1,515 (258) - - - - 1,257
Joe's Trail Phase II 130,755 - - - - - 130,755
Joe's Trail Phase III 264,000 - - - - - 264,000
Trail Pet Stations 25,000 - - - - - 25,000
Saratoga Village to Quarry Park Walkway - Design 223,810 - - - - - 223,810
Village Oaks Bridge Reconstruction and Erosion Control 30,000 - - - - - 30,000
Hakone Gardens to Quarry Park Trail Gap Closure Phase 1 50,000 - - - - - 50,000
Park and Trail Fire Mitigation 100,000 (49,920) - (14,175) - - 35,905
Unallocated Park In-Lieu Funds 28,372 549,831 - - - - 578,203
Total Park In-Lieu Projects 1,048,701 353,387 - (17,182) - - 1,384,906
CIP Grant Street Projects
Local Roadway Safety Plan (4,882) - - - - - (4,882) *
Prospect/Saratoga Median Improvement (19,217) - - - - - (19,217) *
Citywide Signal Upgrade II 18 - - - - - 18
Saratoga Ave Sidewalk (34,146) - - (62,695) - - (96,841) *
Village Sidewalk, Curb & Gutter - Phase II Construction (91) - - - - - (91) *
Saratoga Village Crosswalk & Sidewalk Rehabilitation (834) - - - - - (834) *
4th Street Bridge (31,057) 46,068 - - - - 15,011 *
Quito Bridge Replacement 18,597 - - - - - 18,597
Quito Road Bridges - ROW Acquisition (9,619) - - - - - (9,619) *
Total CIP Grant Street Projects (81,233) 46,068 - (62,695) - - (97,859)
CIP Grant Park & Trail Projects
Blue Hills Elementary Pedestrian Crossing at UPPR - 1,200,000 - (14,890) - - 1,185,110
Park and Trail Fire Mitigation 90,000 (33,981) (10,000) - - - 46,019
Total CIP Grant Park & Trail Projects 90,000 1,166,019 (10,000) (14,890) - - 1,231,129
CIP Grant Administrative Projects
CDD Software/ADA 39,736 - - - - - 39,736
Safe Routes to School Needs Assessment - - - (24,990) - - (24,990) *
General Plan Update (LEAP)(226,723) 22,195 - (16,653) - - (221,180) *
Total CIP Grant Administrative Projects (186,987) 22,195 - (41,643) - - (206,434)
CIP Grant ARPA/SLFRF Projects
Park Sewer Lateral Replacement and Upgrades 206,939 (83,506) - (41,745) - - 81,688
Stormdrain Master Plan 81,171 - - - - - 81,171
Prospect Road Green Infrastructure 365,200 (304,640) - - - - 60,560
Stormwater Pollution Prevention Program Compliance (SWPPP)104,336 (38,526) - - - - 65,810
Saratoga Village Water Improvement 5,715,788 (331,811) - (15,687) - - 5,368,290
City Hall Green STW Infrastrictire - - - (950) - - (950) *
Guava Ct. Improvements and Green Stormwater Infrastructure (GSI)- (317,731) - (431) - - (318,162) *
Monta Vista/EL Camino Grande Storm Drain Improvement - (4,997) - - - - (4,997) *
Hisorical Park Storm Drain Improvement - - - (42,625) - - (42,625) *
Total CIP Grant ARPA/SLFRF Projects 6,473,435 (1,081,211) - (101,438) - - 5,290,785
Gas Tax Fund Projects
Annual Roadway Improvements (106,552) 1,352,288 288,709 - - - 1,534,445
Prospect/Saratoga Median Improvements 48,278 - - - - - 48,278
Quito Road Bridges 7,085 - - - - - 7,085
Total Gas Tax Fund Projects (51,189) 1,352,288 288,709 - - - 1,589,808
Total CIP Funds 13,644,216 513,386 448,031 (1,014,857) 3,565,271 (57,395) 17,098,652
10
CHART 1: CHANGE IN INVESTMENT POOL BALANCE BY MONTH
11
TABLE 3
March June September December
1977 5.68 5.78 5.84 6.45
1978 6.97 7.35 7.86 8.32
1979 8.81 9.10 9.26 10.06
1980 11.11 11.54 10.01 10.47
1981 11.23 11.68 12.40 11.91
1982 11.82 11.99 11.74 10.71
1983 9.87 9.64 10.04 10.18
1984 10.32 10.88 11.53 11.41
1985 10.32 9.98 9.54 9.43
1986 9.09 8.39 7.81 7.48
1987 7.24 7.21 7.54 7.97
1988 8.01 7.87 8.20 8.45
1989 8.76 9.13 8.87 8.68
1990 8.52 8.50 8.39 8.27
1991 7.97 7.38 7.00 6.52
1992 5.87 5.45 4.97 4.67
1993 4.64 4.51 4.44 4.36
1994 4.25 4.45 4.96 5.37
1995 5.76 5.98 5.89 5.76
1996 5.62 5.52 5.57 5.58
1997 5.56 5.63 5.68 5.71
1998 5.70 5.66 5.64 5.46
1999 5.19 5.08 5.21 5.49
2000 5.80 6.18 6.47 6.52
2001 6.16 5.32 4.47 3.52
2002 2.96 2.75 2.63 2.31
2003 1.98 1.77 1.63 1.56
2004 1.47 1.44 1.67 2.00
2005 2.38 2.85 3.18 3.63
2006 4.03 4.53 4.93 5.11
2007 5.17 5.23 5.24 4.96
2008 4.18 3.11 2.77 2.54
2009 1.91 1.51 0.90 0.60
2010 0.56 0.56 0.51 0.46
2011 0.51 0.48 0.38 0.38
2012 0.38 0.36 0.35 0.32
2013 0.28 0.24 0.26 0.26
2014 0.24 0.22 0.24 0.25
2015 0.26 0.28 0.32 0.37
2016 0.46 0.55 0.60 0.68
2017 0.78 0.92 1.07 1.20
2018 1.51 1.90 2.16 2.40
2019 2.55 2.57 2.45 2.29
2020 2.03 1.36 0.84 0.63
2021 0.44 0.33 0.24 0.23
2022 0.32 0.75 1.35 2.07
2023 2.74 3.15 3.59 4.00
2024 4.30 4.55
Quarterly Apportionment Rates
Local Agency Investment Fund
12
TABLE 4
March June September December
2019 2.50 2.37 2.06 1.69
2020 0.98 0.25 0.15 0.03
2021 0.05 0.03 0.03 0.03
2022 0.16 1.37 2.75 4.62
2023 4.59 5.06 5.44 5.69
2024 5.43 5.39
CalTRUST Liquidity Fund
Quarterly Yield Rates
13
Preliminary 2023-24 Yearend
Results
14
2023-24 General Fund Preliminary
Results (in $ millions)
•Total revenue 15% higher than budget
•Total expenditures 4% lower than budget
Actual Budget Variance $ Variance %
Total Revenue 32.6 28.3 4.3 15%
Total Expenditures 30.5 31.9 -1.4 -4%
Net Revenue / (Expenditures)2.1 -3.6
15
Budget Highlights
•Charges for Services: $1.3M higher than budget
•Uses of Property & Money: $1.1M higher than budget
primarily interest revenue (strongest revenue since 2007)
•Franchises & Surcharges: $1.1M higher than budget, mostly
solid waste revenue
•Expenditure budget savings primarily in Salaries & Benefits
Property tax revenue remains strong
16
Property Tax Growth
•Property tax makes
up 60% of general
fund revenue
•$442K higher than
budget
8.3%
7.0%
4.8%4.6%
2021 2022 2023 2024
17
Expenditures
Total expenditures $1.4M lower than budget
•Savings primarily in Salaries & Benefits
Total of 10 new hires in 2023-24
•Additional savings in lower operating costs, and
delayed housing element implementation.
18
General Fund Transfers to Capital
(in $ millions)
Starting in 2020, significant local investments in capital
(primarily streets)
0.0
1.0
2.0
3.0
4.0
5.0
19
Capital Projects
Currently 90 capital projects with $17M of funding
8 ARPA funded projects with $5.2M of funding
ARPA Funds need to be committed by December
31, 2024 and spent by December 31, 2026
Attachment A of the staff report shows change in fund balance for all funds
20
Summary
Preliminary 2023-24 results are
favorable to budget
The City is financially well
positioned for fiscal year 2024-25
ARPA capital projects are key area
of focus for 2024-25
21
Memorandum
DATE: September 10, 2024
TO: Finance Advisory Committee
FROM: Ryan Hinchman, Administrative Services Director
SUBJECT: 2024-25 Budget Indicators
City staff monitors key data points that impact the current year 2024-25 budget, and influence
future year forecasts. The estimated dollar impacts on 2024-25 have yet to be quantified, given
limited data. The following data points are now available:
Item Update
2024-25
Budget
Impact
Budget
Indicator
Property taxes 5.46% increase to prior year Positive
Charges for Service $1.3 million higher than
2023-24 budget Positive
Pension Liability 9.3% investment return No impact
Interest Earnings 0.25% rate increase Uncertain
Inflation June 2024 CPI +3.2%Uncertain
BACKGROUND
1.Property Taxes: Positive
The Santa Clara County Treasurer-Controller's Office has updated Saratoga's property tax
estimate for 2024-25, projecting a 5.46% increase in core property taxes compared to the
previous year. Core property taxes typically reflect real estate transactions from up to a
year prior. The city is also closely monitoring property transfer taxes, which are budgeted
at $0.45 million and provide a more immediate indicator of current real estate market
activity.
2.Charges for Services: Positive
City Council reviewed the 2022 Comprehensive User Fee Study,and approved fee changes
which increased cost recovery up to 90% in Community Development for planning and
building services. Charges for services are the City’s second-largest revenue source after
22
Memorandum
property tax and represented about 15% of general fund revenue in 2023-24,and
exceeded budget projections by $1.3 million.Charges for Services are based on building
activity and adjust quickly with local economic conditions. Although they are subject to
volatility, the 2023-24 results indicate potential increased revenue for current budget
year 2024-25.
3.Pension: Positive
CalPERS announced a preliminary 9.3% investment return for the fiscal year ending June
30, 2024. This performance exceeds CalPERS' 6.8% annual target. While this gain
positively impacts the pension’s financial health, it won't affect required pension
contributions for fiscal year 2024-25.
4.Interest Earnings: Uncertain
The City's investment earnings in the Local Agency Investment Fund (LAIF) increased from
4.30% in 2024 Q1 to 4.55% in 2024 Q2, and led to high interest revenue. It should be
noted that future interest rates are driven by monetary policy, and it is likely that a rate
reduction may occur in 2024-25, potentially resulting in lower interest revenue for the
-7.2%-6.1%
3.7%
16.6%
12.3%
11.8%
19.1%
-5.1%
-24.0%
13.3%
21.7%
0.1%
13.2%
18.4%
2.4%
1.6%
11.2%8.6%
6.7%4.7%
21.3%
-6.1%
5.8%9.3%
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
CalPERS Historical Annual Investment Returns
Annual Investment Return
6.8% Discount Rate
23
Memorandum
City.Interest is budgeted relatively conservatively for 2024-25, and it is unlikely interest
will be lower than budget.
5.Inflation: Uncertain
The CPI-U for the San Francisco region increased 3.2% from June 2023 to June 2024, down
significantly from the June 2022 high of 6.8%. The CPI-U increase is lower than property
tax growth for the same period.On one hand inflation has the potential to increase costs
for goods and services, but lower inflation could lead the Fed to lower interest rates
causing a potential reduction in interest revenue for the City.
As of the latest available information, Santa Clara County has not settled its dispute with the state
over the allocation of excess Educational Revenue Augmentation Fund (ERAF) funds.The City will
continue to monitor excess ERAF updates as they become available.
ATTACHMENTS
None
24
2024-25 Budget Indicators
25
2024-25 Budget Indicators
Item Update 2024-25
Budget Impact
Budget
Indicator
Property taxes 5.46% increase to prior year Positive
Charges for Service $1.3 million higher than 2023-24
budget Positive
Pension Liability 9.3% investment return No impact
Interest Earnings 0.25% rate increase Uncertain
Inflation June 2024 CPI +3.2%Uncertain
26
CalPERS Historical Investment Returns
-7.2%-6.1%
3.7%
16.6%
12.3%
11.8%
19.1%
-5.1%
-24.0%
13.3%
21.7%
0.1%
13.2%
18.4%
2.4%
1.6%
11.2%8.6%
6.7%4.7%
21.3%
-6.1%
5.8%
9.3%
Annual Investment Return
6.8% Discount Rate 5-year returns: 6.6%
10-year returns: 6.2%
30-year returns: 7.7%
27
Budget Indicators Key Takeaways
Preliminary budget indicators for 2024-25 are generally
positive:
•Property tax remains strong
•Comprehensive fee study increased fee revenue
•Interest rates are likely to decline in 2024-25, but
unlikely to pose budget risk
Staff continues to monitor updates on excess ERAF
28