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HomeMy WebLinkAboutFY 2023-24 Adopted Operating & Capital Budget CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 1 City of Saratoga, California Adopted Budget Fiscal Year 2023-24 CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 2 PAGE LEFT BLANK INTENTIONALLY CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 3 FISCAL YEAR 2023-24 CITY COUNCIL ADOPTED BUDGET CITY COUNCIL Kookie Fitzsimmons, Mayor Yan Zhao, Vice Mayor Belal Aftab Chuck Page Tina Walia APPOINTED OFFICIALS James Lindsay, City Manager Richard Taylor, City Attorney EXECUTIVE TEAM Leslie Arroyo, Assistant City Manager John Cherbone, Public Works Director Nick Pegueros, Administrative Services Director Bryan Swanson, Community Development Director BUDGET PREPARATION TEAM Frances Reed, Administrative Analyst Shaheen Sarwari, Administrative Analyst Gina Scott, Administrative Analyst CONTACT INFORMATION City of Saratoga · Administrative Services Director 13777 Fruitvale Avenue · Saratoga, California 95070 · www.saratoga.ca.us CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 4 TABLE OF CONTENTS 2023-24 City Manager’s Adopted Budget INTRODUCTORY PAGE City Manager’s Budget Message Transmittal letter 7 2022-23 Major Accomplishments 10 2023-24 Major Initiatives 11 Organization Chart 13 City Overview Mission Statement 17 Location 18 History 19 Demographics 22 Resident Services 23 Governance 26 Strategic Goals & Objectives 28 Fiscal Stewardship 30 Annual Budget Process 35 Budget Discussion General Fund Overview 39 General Fund Revenues 40 General Fund Expenditures 44 Table of Contents CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 5 OPERATING PROGRAMS PAGE City Council Programs 49 City Manager’s Department Programs 55 Administrative Services Programs 67 Community Development Programs 89 Public Works Programs 107 Community Services Programs 129 Public Safety Programs 141 Non-Departmental Programs 149 CAPITAL IMPROVEMENT PROGRAM Introduction 159 Streets Capital Program 161 Parks & Trails Capital Program 193 Facilities Capital Program 213 Administrative & Technology Capital Program 223 American Rescue Plan Act State and Local Fiscal Relief Fund (ARPA SLFRF)239 SUPPLEMENTAL SECTION Accounting and Budgetary Structure 249 Financial Planning 259 Employee Compensation 265 Glossary 273 CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 6 PAGE LEFT BLANK INTENTIONALLY City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 7 June 2, 2023 Honorable Mayor and City Council Members, I am honored to present to you and the Saratoga community the City's budget for the fiscal year beginning July 1, 2023. This budget represents a balanced spending plan that maintains current service levels while addressing various challenges, including high inflation rates impacting salaries and wages for City staff and contract personnel and the loss of solid waste franchise fee revenue. To achieve a balanced budget, we have implemented several strategies, including increased cost recovery fee revenue, reimagining our facility rentals service delivery model, and a reduced additional payment to the City's unfunded pension liability payment by $0.3 million. The process of achieving a balanced budget for 2023-24 began with City staff presenting a budget deficit forecast of $1.7 million at the City Council meeting on January 4th. The largest component of the deficit forecast is the impact of the California State Supreme Court's ruling in Zolly v. City of Oakland, which led the West Valley Solid Waste Management Authority to remove solid waste franchise fees from the latest solid waste hauler contract. The 2023-24 budget accounts for a partial-year loss of the solid waste franchise fee revenue to the City, with the full revenue loss of $1.3 million annually expected to start in 2024-25. Additionally, the inflationary impact on goods, City personnel costs, and contract services has been a significant factor, with a 5.6 percent increase in the San Francisco region Consumer Price Index (CPI-U) from January to December 2022, as reported by the US Bureau of Labor Statistics. During the City Council's annual goals and priority-setting meeting, "retreat," on February 10th, discussions were focused on addressing the significant budget deficit forecast. City staff updated the baseline revenue forecast to include mid-year property tax receipts and an allowance for increased user fee revenue based on the 2022 Comprehensive User Fee Study results. Expenditure considerations included a cost savings opportunity, by reimagining facility rentals, resulting from the retirement of the City staff member responsible for managing facility rentals. The Council also provided preliminary guidance on the 2023-24 Capital Improvement Program (CIP), considering project requests totaling $5.1 million, primarily funded through the General Fund's Future Capital Reserve, projected to have a balance of $3.5 million by June 30, 2023. These requests encompass funding for priority and dedicated revenue projects and additional funding for existing CIP projects. The most significant budget direction provided at the retreat is using one-time monies and reductions in non-operating expenditures as a budget balancing strategy for 2023-24. City Council directed that 2023-24 may be balanced, to the extent necessary, using one-time funds from the General Fund's Working Capital Reserve. Additionally, the City Council expressed a willingness to reduce the non-operating expenditure of making an additional payment to the unfunded pension liability (UAL) if necessary to balance the budget, should the Working Capital Reserve funds be insufficient or unavailable. In the months of March through May, the City Council took several actions to implement the direction provided at the February retreat, focusing on key areas such as capital improvements, user fees, partnership expansion, and labor agreements. Overview City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 8 Incorporating the direction from the retreat and City Council's February through April Capital Improvement Program (CIP) prioritization process, the 2023-24 budget includes a total CIP of $6.2 million, with $3.3 million funding from the General Fund's Future Capital Reserve and the remainder from dedicated CIP revenues. Notably, there is a one-time increase of $1.3 million from the General Fund's Future Capital Reserve to accelerate work in the Pavement Management Program (PMP) CIP, demonstrating the continued investment in City roads to smooth future replacement costs. It's important to recognize that this will be the last fiscal year with significant additional funding available for the PMP through the General Fund, emphasizing the ongoing need to address structural funding options for City roadways. In March, the City Council addressed the deficit by amending the 2022-23 mid-year budget to account for increased investment income revenue. The City's unencumbered cash is invested in the Local Agency Investment Fund (LAIF), which experienced higher interest payments due to increased yields on government securities. While the investment income is projected to remain steady until the end of calendar year 2024, it is essential to note that federal monetary policy drives LAIF yields. The City Council reviewed the results of the 2022 Comprehensive User Fee Study in April, which identified a General Fund subsidy of fee services in Community Development totaling $0.8 million. After carefully considering the policy implications of fee increases, the Council directed that fees for Community Development's planning and building services achieve an overall cost recovery of 75% and 90%, respectively. This decision increased user fees to achieve full cost recovery in certain areas while maintaining highly subsidized rates in others. The results increase 2023-24 revenue by $0.4 million. The City Council received an April report outlining $1.55 million in estimated expenditures from the January and March 2023 extreme weather emergencies. Due to the significant extent of the damages and the delay in receiving federal and state disaster relief funds, it has become necessary to encumber the City's Working Capital Reserve fully. The Working Capital Reserve is unavailable as a budget-balancing strategy for the fiscal year 2023-24. Consequently, a reduction of the non-operating additional UAL payment by $0.3 million is necessary to balance the budget. Once the federal and state disaster relief funds are received, the City Council can reconsider this reduction and utilize the Working Capital Reserve funds if available to offset the decrease in the additional UAL payment. During May, the City Council approved an expansion of the existing partnership with Los Gatos- Saratoga Community Education and Recreation (LGS-Rec) to include facility and field rental management and administration starting in October 2023. The expanded LGS partnership will reduce 1.0 full-time equivalent personnel, generating partial-year savings of approximately $0.08 million in 2023-24 and an annual structural savings of $0.14 million in 2024-25. The City successfully negotiated successor labor agreements with its two employee bargaining groups in May and June. These agreements include a cost-of-living adjustment of 5.6 percent in 2023-24 and 2.39 percent in 2024-25, partially offset by a reduction in City-paid furlough days. The agreements also involve adjustments to benefits for the largest employee bargaining group, limiting the annual increase in the City's medical premium contribution over the two-year labor agreement. City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 9 Our work to ensure the City's future financial stability continues even after adopting the 2023 -24 budget as the structural deficit is expected to increase in 2024-25. We will continue working with the Santa Clara County Sheriff’s Office, the City of Cupertino, and the Town of Los Altos Hills to find opportunities to stabilize the City's second-largest expenditure, our law enforcement contract with the Sheriff's Office, to find a viable long-term solution that allows the Sheriff's Office to continue delivering reliable, responsive, and high-quality services to our community. Furthermore, it is crucial to acknowledge that the budget does not include a contingency for future extreme weather events. Our experiences with reimbursement requests for the January and March 2023 storm events call into question our ability to rely on federal and state disaster financial support. Without a contingency, external emergency funding is necessary for the City's extreme weather event response. Consequently, City staff will continue to monitor opportunities for federal, state, and regional funding avenues to provide relief for the City’s infrastructure. If funding is unavailable, future action may be necessary to explore service level reductions or modify the goal of making additional UAL payments. I want to express my sincere appreciation to the City Council and City staff for their exceptional partnership during this period of significant economic uncertainty. The Council took important first steps towards reducing structural expenditures while strategically expediting underfunded roadway repairs. City staff demonstrated their unwavering commitment by identifying opportunities for cost savings while maintaining services such as reimagining facility rentals. Our employee bargaining units also collaborated with the City to establish multi-year agreements acknowledging persistent economic uncertainty. While work is ongoing, I am confident we will continue to navigate these challenges together and work towards a financially sustainable future for Saratoga. Respectfully submitted, James Lindsay City Manager Overview City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 10 2022-23 Major Accomplishments Housing Element Update The California Housing Element Law requires cities and counties to update their housing element every 8 years and this planning document is subject to review and approval by the Department of Housing and Community Development. In July 2022, the City submitted the initial draft of the Housing Element to HCD for their review. The City received the State’s comment letter in October and a revised draft was resubmitted in January 2023. On March 17, 2023 the City Council approved the responses to HCD’s comments and a new draft was submitted to the State on May 30, 2023 for third round of review. Extreme Weather Response City maintenance and engineering staff responded to hundreds of storm related damages resulting from two extreme weather events. California’s 2022-23 winter was one of the wettest in recent records with atmospheric rivers and bomb cyclones damaging roads, paths, and powerlines. That followed a prolonged drought which was one of the wettest and windiest winters in recent years. Tree failures, mudslides, and debris removal resulted in hundreds of extra staff hours by City crews to ensure the safety of the community both during and after the storm events. 2022 Comprehensive User Fee Study The City completed a review of all fee-based services which identified the full cost of providing each service. The study found that general tax revenues subsidize Community Development services by approximately $0.8 million with minor subsidies in business license procession, code enforcement and public works. Distinguished Budget Award & Certificate of Achievement for Excellence in Financial Reporting In 2022, the Government Finance Officers Association awarded the City of Saratoga the Distinguished Budget Award for the twelfth year in a row, and the Certificate of Achievement for Excellence in Financial Reporting for the twenty-eighth year in a row. These significant awards represent the City’s thoughtful budget development to enhance the quality of life in the community while ensuring financial transparency and stability in present and future years. Landscape & Lighting District (LLD) Funded Automated License Plate Readers (ALPRs) Council expanded the list of eligible LLD expenditures to include ALPRs to support districts interested in funding ALPR installations. The LLD funded ALPRs will expand the existing Flock Safety system currently under pilot by the City at key City entry points. City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 11 2023-24 Major Initiatives ARPA Capital Improvement Plan Projects Public Works will make significant progress on Capital Improvement Plan projects funded by the American Rescue Plan Act’s (ARPA) $7.2 million allocation to Saratoga; project descriptions begin on page 221. The Saratoga Village Water Quality Improvement project design will wrap up later in 2023, and construction will commence in April 2024. The project makes significant stormwater management improvements to runoff from the Village parking districts into Saratoga Creek and advances Clean Water initiatives. The Prospect Road Green Infrastructure and the Stormwater Pollution Prevention Program Compliance projects will also wrap up in the first half of the fiscal year. Electronic Plan and Permit Processing Saratoga continues to refine and promote online services using the Camino portal which provides web-based planning and building division submittals. In 2023-24, the City will implement a new online rooftop solar permitting program. Reimagining Facility Rentals The City entered into a strategic partnership with Los Gatos-Saratoga Community Health and Recreation (LGS-Rec) to assume management and administration of City facility and park rentals effective October 1, 2023. City staff will assist in facilitating the transition to LGS-Rec for existing customers that regularly use the facility. The transition results in structural savings of approximately $0.14 million per year. Pavement Management Program City Council expanded funding for the Pavement Management Program CIP allocating $1.337 million from the General Fund’s Capital Reserve to ensure Saratoga roadways are resurfaced and maintained as needed. Business System Improvements The City’s business systems continue to evolve where services are provided with greater reliance on paperless and electronic systems. The City continues to manage immediate and long-term business system improvements through a combination of administrative policy updates, optimization of existing technologies, and training on new systems. Improvements include implementation of a budgeting and forecasting database and a financial system upgrade. Overview City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 12 ADOPTED BUDGET SUMMARY Fund July 1, 2023 Beginning Balances Revenues Expenditures Net Revenue (Expenditure) June 30, 2024 Ending Balances General Fund 15,091,428 28,273,852 31,507,539 (3,233,687) 11,857,741 Special Revenue Funds Federal Grants/ FEMA 229,264 - - - 229,264 Lighting Districts 24,426 6,998 10,524 (3,526) 20,900 Landscape Districts 915,922 324,980 476,122 (151,142) 764,780 Landscape & Lighting Districts 360,735 183,447 210,284 (26,837) 333,898 ALPR L&L Districts - 88,205 88,205 - - Storm Drain Districts 138,293 12,498 28,490 (15,992) 122,301 Special Revenue Funds Total 1,668,640 616,128 813,625 (197,497) 1,471,143 Debt Service Funds General Obligation Bonds 907,672 846,385 844,385 2,000 909,672 Community Facility District Bonds 189,228 108,935 115,693 (6,758) 182,470 Debt Service Funds Total 1,096,900 955,320 960,078 (4,758) 1,092,142 Capital Improvement Funds Streets Capital 3,658,568 5,392,000 5,392,000 - 3,658,568 Parks Capital 2,040,228 375,000 375,000 - 2,040,228 Facility Capital 473,638 35,000 35,000 - 473,638 Administrative & Technology Capital 1,273,702 125,000 125,000 - 1,273,702 ARPA/SLFRF Capital 6,536,264 - - - 6,536,264 Capital Improvement Funds Total 13,982,400 5,927,000 5,927,000 - 13,982,400 Internal Service Funds Liability & Workers' Comp.807,030 1,555,421 1,485,690 69,731 876,761 Information Technology 1,622,954 1,094,054 1,195,719 (101,665) 1,521,289 Vehicles & Equipment 1,042,520 424,820 476,446 (51,626) 990,894 Buildings 1,717,064 1,396,640 1,510,393 (113,753) 1,603,311 Internal Service Funds Total 5,189,568 4,470,935 4,668,248 (197,313) 4,992,255 All Fund Total 37,028,936 40,243,235 43,876,490 (3,633,255) 33,395,681 2023-24 Adopted Budget Funds Summary Residents of Saratoga 2023 Estimated Population: 30,567 City Council Kookie Fitzsimmons, Mayor Yan Zhao, Vice Mayor Belal Aftab Chuck Page Tina Walia City Manager James Lindsay City-wide Totals $37.94 million Operating Budget $5.93 million Capital Budget 56.5 FTEs* City Attorney Richard Taylor Shute, Mihaley & Weinberger LLP City Council Appointed Commissions & Committees Administrative Services Department Programs Administrative Services Finance Human Resources Information Technology IT Equipment/ Replacement Office Support Non-Departmental Risk Management Workers Compensation City Manager and Community Services Departments Programs City Manager's Office City Clerk's Office Public Information Office Public Safety/ Emergency Preparedness Recreation Facility Rentals Community Engagement City Funded Events Community Events Grants Community Support Services Community Development Department Programs Development Services Advanced Planning Code Compliance Building Inspection Facility Maintenance Furniture, Fixtures, & Equipment Public Works Department Programs General Engineering Development Engineering Environmental Services Streets & Storm Drains Parks & Landscape Maintenance Vehicle & Equipment Maintenance Lighting & Landscape Districts Capital Improvement Program *FTE = full time equvalent personnel; 2080 hours per year per 1.0 FTE Overview City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 14 AUTHORIZED PERSONNEL Department/ Program 2019-20 2020-21 2021-22 2022-23 2023-24 City Manager's Department City Manager's Office 2.30 2.30 2.30 2.30 2.35 City Clerk 1.10 1.10 1.10 1.10 1.10 Public Information Office 1.10 1.10 1.10 1.10 1.10 Total 4.50 4.50 4.50 4.50 4.55 Administrative Services Administrative Services 1.00 1.00 1.10 1.10 1.10 Finance 4.95 4.95 5.25 5.25 5.25 Human Resources 1.65 1.65 1.65 1.65 1.65 Information Technology 2.30 2.30 2.25 2.25 2.25 Risk Management 0.30 0.30 0.30 0.30 0.30 Workers' Compensation 0.20 0.20 0.20 0.20 0.20 Total 10.40 10.40 10.75 10.75 10.75 Commuinity Development Development Services 4.65 4.65 4.65 4.65 4.65 Advanced Planning 0.80 0.80 0.80 0.80 0.80 Code Compliance 1.55 1.55 1.55 1.55 1.55 Building Inspection 6.00 6.00 6.00 6.00 6.00 Facilities Maintenance 2.50 2.50 2.50 2.50 3.25 Total 15.50 15.50 15.50 15.50 16.25 Public Works General Engineering 4.35 4.20 4.75 5.00 5.00 Development Engineering 1.25 0.95 0.40 0.40 0.40 Environmental Services 1.25 1.70 1.70 1.70 1.70 Streets 7.55 7.55 7.55 7.30 7.30 Parks 8.35 8.35 8.35 8.35 8.35 Vehicle & Equipment Maint 0.75 0.75 0.75 0.75 0.75 Total 23.50 23.50 23.50 23.50 23.50 Community Services Recreation 0.05 0.05 0.05 0.05 0.05 Facility Rentals 1.55 1.55 1.55 1.55 - Community Engagement 1.15 1.15 1.15 1.15 1.15 Total 2.75 2.75 2.75 2.75 1.20 Public Safety Emergency Preparedness 0.25 0.25 0.25 0.25 0.25 Total 0.25 0.25 0.25 0.25 0.25 All Programs Total 56.90 56.90 57.25 57.25 56.50 1.0 FTE = 2,080 hours per year City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 15 The Government Finance Officers Association (GFOA) established the Distinguished Budget Presentation Awards in 1984 to recognize state and local government budgets that incorporate National Advisory Council on State and Local Budgeting guidelines and the GFOA's best practices on budgeting. The 2023-24 Adopted Budget presentation and content reflects several of GFOA's suggestions to further the City's application of industry best practices. GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award PRESENTED TO City of Saratoga California For the Fiscal Year Beginning July 01, 2022 Executive Director Overview City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 16 ENABLING RESOLUTIONS Presented in the order of budgetary impact Resolution No. 23-061 – 2023-24 Budget Adoption Resolution No. 23-072 – Amended Salary Schedule Updated Salary Schedule Effective July 1, 2023 Resolution No. 23-035 – Master Fee Schedule Effective July 1, 2023 Resolution No. 23-058 – Library Series 2011 General Obligation Bonds Debt Service 2023-24 Tax Levy Resolution No. 23-059 – Arrowhead Community Facility District Bond Debt Service 2022-23 Tax Levy Resolution No. 23-043 – Zone 41 – Saratoga Woods Tax Levy Resolution No. 23-044 – Zone 42 – Gardiner Park Tax Levy Resolution No. 23-045 – Zone 43 – Lower Pierce Tax Levy Resolution No. 23-046 – Zone 44 – Golden Triangle Tax Levy Resolution No. 23-047 – Zone 45 – Burgundy Tax Levy Resolution No. 23-048 – Zone 46 – Austin Bainter Tax Levy Resolution No. 23-057 – 2023-24 Appropriations Limit CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 17 City Overview STATEMENT OF VALUES The City of Saratoga strives to maintain a high quality of life for its residents through careful planning and infrastructure maintenance, through activities to build community, and by providing opportunities for extensive citizen participation in community issues. Succinctly, the statement of values for our City is that: Saratoga is a Community…. Where the common good prevails; Where diversity and inclusivity are celebrated; Where the community values, respects, and actively supports the well-being of seniors, families, and people of all abilities; Where neighbors and community members work together for the common good; Where the natural beauty of the City and its hillsides is preserved; Where historic assets are preserved and promoted; Where value is placed on an attractive, well maintained and well-planned community, with a small town, residential atmosphere; Where homes and neighborhoods are safe and peaceful; Where local businesses provide a vibrant presence in the Village and the other commercial areas; Where desirable recreational and leisure opportunities are provided; Where quality education is provided and valued; Where the arts and cultural activities which serve the community and the region are promoted; Where government provides high quality, basic services in a cost-effective manner; Where government values community involvement; Where leadership reflects community goals; and Where, because of the forgoing, the citizens and the families of Saratoga can genuinely enjoy being a part of and proud of this special community. MISSION STATEMENT Provide essential services which protect health, safety and welfare, and satisfy the community’s desires to maintain its quality of while practicing fiscal responsibility. Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 18 Located in the foothills of the Santa Cruz Mountains, approximately 26 miles east of the Pacific Coast, 10 miles southwest of San Jose, and 50 miles south of San Francisco, the City of Saratoga runs along the western edge of Santa Clara County. The City of Saratoga is an attractive, affluent residential community with a small-town vibe in the midst of the world-famous Silicon Valley. It is the gateway to several distinctive destinations: The Village, Saratoga’s historic downtown district, is filled with unique shops and fine dining establishments. saratoga.ca.us/276/Saratoga- Village Hakone Gardens, the oldest Japanese-style residential Westerngardens in the Hemisphere. https://www.hakone.com/ Villa Montalvo, former home of Senator James Duval Phelan, is host to an art gallery, an artist- in-residence program, concert series, and 175 acres of park grounds and hiking trails. montalvoarts.org The Mountain Winery, a popular winery and event venue that is host to weddings, wine tastings, and world class concerts in the spring and summer. mountainwinery.com LOCATION CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 19 City Overview It began with a sawmill Although the incorporated City of Saratoga dates back only to 1956, the town had its beginning more than a century earlier when William Campbell began building a sawmill operation here in 1847 about two and one- half miles above the present downtown village, along what is now State Highway 9. Having spent the winter of 1846/47 in the abandoned adobe buildings of Mission Santa Clara, Campbell correctly surmised that the settlers who were beginning to come to the Santa Clara Valley would want to build sturdy wood houses, reminiscent of the homes they had left in the East. William Campbell saw opportunity in the Santa Cruz Mountain timber, and the settlement that would later become Saratoga owes its start and early development to that vision. William Campbell’s sawmill operation was delayed however after another millwright constructing a sawmill at the western base of the Sierra mountains, a hundred and fifty miles northeast, found gold flakes in the American River, touching off the 1849 California Gold Rush. In 1850, a young Irishman named Martin McCarty leased the sawmill Campbell had started and set about to improve its access by building a road to the site. To recoup his investment, McCarty erected a tollgate near the present intersection of Third Street and Big Basin Way and charged a fee for the use of the road. It was common practice in those early days for roads to be built on a private-enterprise basis, then after a period of time, counties would take them over and maintain them as public thoroughfares. In McCarty's case, although the tollgate was only used for about a year, it was sufficient for the settlement to be known as Tollgate for some years afterward. Due to the natural resources in the area, the town had a brief industrial era. With the settlement situated on a stream and an abundance of lumber products, a furniture factory, a tannery where harness and leather goods were manufactured, and paper mills were all built along the stream. And, with Santa Clara Valley’s growing wheat production, several flour mills were also built. Due to the collection of mills, the settlement was known for a short time as Bank Mills. HISTORY Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 20 During the 1850’s local mineral springs with a chemical content similar to that of Congress Spring at Saratoga Springs, New York was discovered below where the sawmill was located, in a small canyon off what is now known as Saratoga Creek. The property was owned by a group of financiers headed by Darius Ogden Mills, and eventually a resort was built in the grand manner of the famous eastern spa. The elaborate resort hotel Pacific Congress Springs flourished for almost forty years until it was destroyed by fire in 1903. The mountain setting and mild climate had made Saratoga a popular resort area, and the resort image lingered through succeeding years, even as agriculture became the dominant industry in Saratoga and the Santa Clara Valley. And while Campbell’s Gap, Tollgate, McCartysville, and Bank Mills were at various times used as settlement names, the community eventually settled on ‘Saratoga’ in 1865. In the latter part of the 1800’s, the area's fertile soil and available land developed into another industry - agriculture. Apricots, cherries and French prunes were particularly well-suited to Saratoga's soil and climate. Starting in the late 1860’s, the planting of deciduous fruit trees increased until it became the chief means of livelihood for the whole region. During the late 1880’s, the hillsides were found to be amenable to viticulture and many wineries were established. In 1890, Saratoga became the home of the world- renowned Paul Masson Winery. Convinced that the rich California soil could produce grapes for champagnes comparable to those of France, the French immigrant Masson brought grape cuttings from his native land to plant on the hillsides. Over time, Saratoga had developed into a pleasant village and became the trading center for the surrounding vineyards and fruit-growing farms. During the early 1900's, Saratoga had an enviable reputation as a highly desirable place to live. The Interurban Rapid Transit of the day began service which connected Saratoga with the rest of the Santa Clara Valley and beyond. Saratoga soon became a haven for wealthy San Franciscans who came to build elegant hillside homes overlooking the lush valley. One of these was the palatial Mediterranean- style home of the United States Senator James Phelan. His Villa Montalvo is now a center for the cultural arts. After World War II, the valley’s rapid urbanization changed the character of Saratoga from agricultural to suburban. As space technology and the defense and electronics industries were established in nearby communities, Saratoga's open land soon became more valuable for homes for CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 21 City Overview the rapidly growing population, than it was for vineyards and fruit orchards, although some vineyards and a few scattered orchards do remain as a reminder of the bygone era. The City of Saratoga strives to maintain these elements of its natural beauty and colorful past through careful zoning policies and historic preservation. Public interest was stirred to new heights in the mid-1950s when, with orchards giving way to subdivisions, the annexation designs of the City of San Jose became obvious. As a result of this concern, Saratogans voted to incorporate in 1956 and to establish their own city government. Saratoga Today The City of Saratoga, as it exists today, is an attractive residential community of 30,546 (January 1, 2021) known for its excellent schools and prestigious neighborhoods. The community’s historic downtown district, known as "The Village", has distinctive dining, unique shops, and numerous buildings dating back to the late 1800’s and early 1900’s. Saratoga residents place an emphasis on historical preservation, and on retaining the quality of the city’s semi-rural ambiance. The City also is home to Villa Montalvo, the beautiful and palatial former home of Senator James Duval Phelan which now hosts an art gallery, an artist in residence program, concert performances, park trails and grounds. It serves as a desirable wedding venue, and reservations must be made a year in advance. Another local gem adjacent to City limits is the former Paul Masson homestead and winery in the Saratoga foothills, now known as the “Mountain Winery”. This high-end event venue features world-class concerts each spring and summer and is known for its stunning open-air backdrop and both hillside and valley views. Hakone Gardens, the oldest Japanese-style residential garden in the Western Hemisphere, is another beautiful park and desirable wedding venue. The garden lies just outside of the Village and is maintained and run by the Hakone Foundation. The Foundation offers classes, festivals, Japanese culture, and peaceful, contemplative walks as one strolls through the finely manicured gardens. Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 22 DEMOGRAPHICS 11,064 households 1 •$201,046 median household income •$2,000,000+ median value of owner- occupied house units •2.79 persons per household •92.6% residents living the same house, 1 year or more 30,163 residents 1 •2.0% persons under 5 years of age •20.1% persons under 18 years of age •23.9% persons 65 years of age and over •50.4% female persons •77.9% Bachelor’s degree or higher Race 1 •49.6% Asian •43.5% White non-Hispanic or Latino •3.8% Two or more races •2.5% Hispanic or Latino •0.4% American Indian and Alaska Native •0.2% Black or African American Source: 1 2020 US Census 2 California Employment Development Department, 2022 14,800 Total City Employment 2 Top 5 employers: •West Valley Community College •Saratoga Union School District •Saratoga Retirement Community •Our Lady of Fatima Villa •Saratoga Pediatric Sub-Acute Hospital CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 23 City Overview The City of Saratoga’s budget includes appropriations for a limited portfolio of public services as detailed below. In addition, community members are served by several other governmental and for-profit companies including fire, utilities, and schools. CITY SERVICES https://www.saratoga.ca.us/31/Residents Community Development Community Development guides the physical growth of the City and preserves the community’s quality of life by administering zoning regulations, providing building inspection services, code enforcement, arborist services, and ongoing advanced planning activities that maintain the City’s General Plan. The department also supports the City’s business community through participation and funding of economic development activities. https://www.saratoga.ca.us/150/Community- Development Public Works Public Works oversees engineering and capital project functions; reviews the public’s development plans for engineering and geological oversight; maintains the City’s parks, trails, medians, right-of-way, grounds, bridges, and landscape districts; repairs and maintains the roadways system including streets, traffic and pedestrian signals, lighting, and storm drains; provides vehicle maintenance oversight and minor maintenance; and ensures the City’s environmental responsibilities are fulfilled, including externally-driven responsibilities under the Clean Water Act and solid waste mandates. https://www.saratoga.ca.us/190/Public- Works City infrastructure projects page: https://www.saratoga.ca.us/191/City- Infrastructure-Projects Public Safety The City of Saratoga contracts for law enforcement services with the Santa Clara County Sheriff’s Office. Services include traffic, patrol, and general law enforcement, as well as ancillary programs to educate the community on crime prevention, traffic safety, and emergency response. Animal control services, including licensing, animal control, and field and shelter services, are provided on contract by the City of San Jose Animal Care and Services Division (SJACS). Sheriff’s Office: https://www.saratoga.ca.us/195/Sheriffs- Office Animal Control Services (SJACS): https://www.sanjoseca.gov/your- government/departments-offices/animal- care-services/services/animal-control The City’s Emergency Preparedness Program is coordinated by City staff to support both City and community emergency response efforts in the event of a significant earthquake, fire, or other natural or man- made disasters, and coordinates with various emergency services agencies and RESIDENT SERVICES Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 24 utilities to prepare residents for self- sufficiency and proper response to emergency events. https://www.saratoga.ca.us/224/Emergency- Preparedness-and-CERT General Administration The City Manager’s Department supports the Council’s legislative and policy interests, provides management and leadership, and direction for the City organization. The City Manager’s Department also supports Commissions, interacts with community groups, fosters community relationships, and provides public awareness of municipal programs, services, and goals through effective community outreach, using avenues including the City website, media relations, social media, and various publications. https://www.saratoga.ca.us/234/City- Managers-Department Administrative Services provides internal support including finance, human resources, and information technology services to all City departments and operations. https://www.saratoga.ca.us/180/Administrati ve-Services OTHER RESIDENT SERVICES Saratoga residents are served by several other public agencies and organizations to complete the portfolio of resident services. Fire The Saratoga Fire Protection District and Santa Clara County Fire District (SCCFD) provide fire services to the Saratoga community. Both Districts are operated by the Santa Clara County Fire Department. The SCCFD serves Santa Clara County and the communities of Campbell, Cupertino, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno and Saratoga. https://www.sccfd.org/ Library The Santa Clara County Library District serves the cities of Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Milpitas, Monte Sereno, Morgan Hill, Saratoga, and the unincorporated areas of the County. https://sccl.bibliocommons.com/locations/S A Recreation Programs, Facility & Field Rentals Saratoga contracts with Los Gatos Saratoga Recreation (LGS Recreation) for recreation services. https://www.lgsrecreation.org/ Schools Saratoga students are served by six school districts in and around the City of Saratoga. Depending on where you live in the city, the CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 25 City Overview public school your children attend may be located nearby, but outside the City limits. Saratoga Union School District https://www.saratogausd.org/ Los Gatos-Saratoga High School District https://www.lgsuhsd.org/ Cupertino Union School District https://www.cusdk8.org/ Campbell Union High School District https://www.cuhsd.org/ Fremont Union High School District https://www.fuhsd.org/ Campbell Union School District https://www.campbellusd.org/ UTILITIES Electricity and Natural Gas Pacific Gas and Electricity (PG&E) provides electric and natural gas to the Saratoga community. On February 2, 2016, the Saratoga City Council approved joining a countywide Community Choice Energy partnership, Silicon Valley Clean Energy (SVCE), which provides an option for residents to purchase 100 percent clean energy. PG&E https://www.pge.com/ SVCE https://www.svcleanenergy.org/ Garbage and Recycling West Valley Collection & Recycling is the exclusive recycling, green waste and garbage hauler for Campbell, Los Gatos, Monte Sereno, and Saratoga. https:// westvalleyrecycles.com/ Sewer West Valley Sanitation District provides wastewater collection and disposal services for the cities of Campbell, Monte Sereno, Los Gatos, much of Saratoga, and some unincorporated areas of the county within the district boundary. Cupertino Sanitary District provides sewer service to customers within the communities of Cupertino, portions of Saratoga, Sunnyvale, Los Altos, and unincorporated areas within Santa Clara County. https://www.westvalleysan.org/ Water Founded in 1866, San Jose Water is an investor-owned utility, and is one of the largest and most technically sophisticated urban water systems in the United States. https://www.sjwater.com/ Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 26 CITY COUNCIL The City of Saratoga was incorporated in 1956 and operates under a Council/Manager form of government. City Councilmembers are elected to staggered four-year terms and annually select a member of City Council to serve as mayor and vice-mayor. City Council appoints two City officials: City Manager and City Attorney. City Council also appoints members to the Planning Commission and several advisory bodies. https://www.saratoga.ca.us/241/City-Council City Council Bodies Finance Committee – The Finance Committee (previous formats included the Finance Advisory Committee and the Finance Commission) was originally formed in 1981 to advise the City Council on financial matters pertaining to the governing of the City, as well as on the use of fiscal resources and the development of technology for the City. In 2007, the Council reconstituted the Finance Commission as a Finance Committee to review financial matters with the City's Administrative Services Director in preparation for the City Council meetings. In 2016-17, the Council restructured the Committee as a “Committee of the Whole” to allow all Council Members to attend Finance Committee meetings and comment if they so desire, although only the two appointed members may vote on recommendations and decisions. The two appointed Council members each serve one-year terms of office; meetings are held monthly or on an as-needed basis. https://www.saratoga.ca.us/359/Finance- Committee Disaster Council – The Disaster Council is comprised of the Mayor, City Manager, Assistant Director of Emergency Services, and representatives of the Sheriff’s Office and County Fire. The primary responsibility of the Disaster Council is to develop the City’s Emergency Operations Plan and recommend changes to the Plan for City Council consideration as needed. https://www.saratoga.ca.us/365/Disaster- Council City Council Appointed Commissions and Committees Planning Commission – The seven (7) member Planning Commission advises Council on land use matters such as the General Plan and specific plans, zoning and subdivisions. The Commission plans for the future orderly physical development of the City and informs and educates the public on current land use and urban planning issues. In many areas, the Planning Commission also acts as a legislative body in making determinations within the framework of applicable State laws and City ordinances. Ultimate decisions on land use reside with the City Council. Members are required by State law to file an annual statement of economic interests. https://www.saratoga.ca.us/357/Planning- Commission Heritage Preservation Commission – The Heritage Preservation Commission, comprised of seven (7) members, functions as a liaison working in conjunction with the Council, the Planning Commission, and the agencies and departments of the City to implement the City's Heritage Preservation Ordinance. The Commission's scope includes property surveys within the boundaries of the City of Saratoga for the purpose of establishing an official inventory of heritage resources and recommending to the City Council specific proposals for designation as a historic landmark, heritage lane or historic district. One member is nominated by the Saratoga Historical Foundation and two members must be trained and experienced in the field of construction and structural rehabilitation, such as a licensed architect, engineer, contractor, or urban planner. https://www.saratoga.ca.us/285/Heritage- Preservation-Commission CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 27 City Overview Library & Community Engagement Commission – The five (5) member Library & Community Engagement Commission serves as an advisory body on library policies, budgets, plans and procedures to the City Council, City staff, the Santa Clara County Library staff, and the Saratoga Library Supervisor. The Commission has no administrative authority over the library's operations but does participate in the general planning for library operation and library- related programs and policies. One member is nominated by the City of Monte Sereno. https://www.saratoga.ca.us/330/Library- Commission Parks and Recreation Commission – The Parks and Recreation Commission, consisting of five (5) members, advises the Council on matters that relate to parks and recreation. Principally, the commission serves as a conduit between the public and the Council, assesses public input, collects information, and makes recommendations to the Saratoga City Council. https://www.saratoga.ca.us/364/Parks- Recreation-Commission Pedestrian, Equestrian, and Bicycle Trails Advisory Committee – It is the mission of the Pedestrian, Equestrian, and Bicycle Trails Advisory Committee to advise the city regarding the planning, acquisition, and development of trails and sidewalks and to maintain the trails network to enhance the quality of life in Saratoga. The number of committee members vary over time, depending on interest. https://www.saratoga.ca.us/350/PEBTAC- Trails-Advisory-Committee Public Art Commission – The Commission provides counsel and recommendations on public art policies, budgets, plans, and procedures to the Saratoga City Council. As directed by the City Council, the five (5) member Commission will evaluate and assess public art projects or programs and perform such other activities as may be directed by the Saratoga City Council. https://www.saratoga.ca.us/510/Public-Art- Commission Traffic Safety Commission – The Traffic Safety Commission investigates, reviews, and analyzes traffic safety issues raised by the Community members and Public Safety Agencies. The five (5) members meet on a bi-monthly basis to provide a venue for the public to express concerns regarding traffic safety matters. The Commission makes recommendations to the City regarding traffic safety. https://www.saratoga.ca.us/329/Traffic- Safety-Commission Youth Commission – The Youth Commission is comprised of eleven (11) middle and high school students appointed by the City Council for two-year terms. The rotating appointments ensure both first- and second-year members are on the commission. Commissioners participate in community activities and serve as a liaison between the teen community and the City Council. https://www.saratoga.ca.us/337/Youth- Commission Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 28 Strategic Goals and Objectives support the City’s vision, and mission, and represent the foundation on which City Council makes decisions. The below list of goals and objectives are considered overall long-term guidance upon which shorter-term departmental objectives and general direction is developed and implemented within the City’s budget workplan. STRATEGIC GOALS & OBJECTIVES Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvements: •Strengthen the City’s fiscal health and stability •Preserve essential services •Effectively manage revenue streams •Expend and use fiscal resources responsibly •Maintain fund balance reserves •Nurture an environment which attracts, retains, and expands economic opportunities •Support externally funded community infrastructure improvements II. Fiscal Stewardship Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high-quality leadership for the community: •Responsive and accountable to the community •Effective City leadership •Organization performance management •Transparent government •Civic engagement •Community partnerships I.City Leadership Provide for a safe and secure community: •Preservation of life and property •Crime prevention •Wildfire prevention •Emergency preparedness III. Public Safety Maintain the City's facilities and public infrastructure in a safe and sustainable manner to address the functional needs of our residents in a cost-effective manner: •Excellent street system •Safe, well-functioning, and beautiful roadway Infrastructure •Well-maintained, safe parks •Useful and safe trails and open space •Clean, safe, and pleasant City facilities •Well-maintained vehicles and equipment IV.Facilities & Infrastructure CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 29 City Overview Honor Saratoga's heritage by preserving significant historic assets: •Enhance policies to maintain the City's historic heritage •Enhance standards to maintain architectural attractiveness •Protect Saratoga's natural beauty V. Community Heritage Proactively support environmental sustainability efforts: •Protect and optimize the City's natural resources and environment through sustainable practices •Establish and implement comprehensive, long- range environmental sustainability goals and policies •Embrace environmentally friendly practices •Educate the community on environmental issues •Reduce the City’s carbon footprint VII. Environmental Sustainability Foster a culturally enriched and diverse culture and engaged community: •Enhance community vibrancy and engagement •Enhance and promote quality of life in the community •Promote health as a community value •Cultivate organizational and leadership potential in the community •Foster a business-friendly environment •Strengthen Saratoga as an age friendly city VI. Community Enrichment Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 30 The City of Saratoga strives to achieve fiscal sustainability and has adopted several policies included in the Reference Section of this document. The following narrative summarizes the City Council adopted fiscal stewardship policies with notation of the first page of the full policy documents, if available. MAJOR RESERVES The following summarizes the City Council’s adopted fiscal sustainability policies that support the City’s approach to balancing the need for quality services to today’s community members while planning for anticipated and unanticipated financial needs that may impair the City’s ability to continue service to the community. Reserve Purpose and Funding Policy Annual Funding Goal Est. Balance 7/1/23 Hillside Stability Reserve To provided funding for emergency or extraordinary costs related to hillside degradation inclusive of slide prevention and mitigation, slide repair, and associated drainage and roadwork that must commence before the end of the fiscal year. $100,000, if balance falls below $1 million. $1.00 million Road & Facility Replacement Reserve To accrue funding for the major rehabilitation or replacement of City- owned roads, buildings, and structures. $500,000 $3.70 million Future Capital Improvement Program Reserve To accrue funding for future Capital Improvement Program (CIP) projects using General Fund operating surplus remaining after other funding goals. n/a $0.22 million Fiscal Stabilization Reserve To accrue funds for temporary budget stabilization caused by fiscal downturns, natural disasters, legislative action, claim loss. $100,000, if operating surplus is more than $1 million. $3.15 million FISCAL STEWARDSHIP CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 31 City Overview OPERATIONAL RESERVES Operational reserves are distinguished from Major Reserves in that the reserves are intended to fulfill commitments arising out of City operations. City Council establishes a threshold level based on operation. FINANCIAL POLICIES The City Council of Saratoga has established detailed financial policies to guide daily operations and future planning. Here are summaries of several significant policies: ASSETS Cash and Investments – The City follows a Council-approved Investment Policy that aims for fiscal security and sets investment risk levels within the City's defined security restrictions and investment objectives. The Investment Policy is reviewed and adopted by the Council annually, aligning with the State's California Debt and Investment Advisory Commission (CDIAC) guidelines. Fund reserves and excess operational funding requirements are deposited in the California State Treasurers’ Local Agency Investment Fund (LAIF), unless explicitly approved by the City Council to invest in other vehicles as allowed by the Investment Policy. Administrative Services oversees Treasury functions and provides monthly Treasurer's Reports on City funds, investments, and interest earnings. Fixed Assets & Infrastructure – Tangible assets with a cost equal to or greater than $10,000 and a useful life of more than one year are considered fixed assets and included in the capitalization schedules. Reserve Purpose and Funding Policy Annual Funding Goal Est. Balance, 7/1/23 Carryforward Reserve To provide funding for year- end purchases that will record as a transaction in the next fiscal year and cannot be accrued to the prior year. As necessary at year end. $0.10 million Working Capital Reserve To accrue sufficient funds to meet General Fund obligations for sixty (60) days and avoid use of short-term borrowing for cashflow management. As necessary to maintain a $1 million balance at year-end. This Reserve is fully encumbered to meet cash flow requirements until receipt of federal and state disaster relief funds for the 2023 Storm emergencies Compensated Absences Reserve To accrue funds to smooth expenditure fluctuations resulting from the payout of accrued leave to employees at their separation from city employment. One-third (1/3) of the liability as calculated each June 30. $0.30 million Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 32 Repairs and maintenance of infrastructure assets are typically not capitalized unless they extend the asset's useful life. The City maintains a long-term fiscal perspective through a five-year Capital Improvement Program, which focuses on maintaining the quality of City infrastructure. Internal Service Fund programs are also utilized to maintain and replace operational infrastructure, such as City buildings, fixtures, equipment, vehicles, public works equipment, and technology-related equipment. Asset information is retained to facilitate the preparation of financial statements in accordance with Generally Accepted Accounting Principles (GAAP)and compliance with Governmental Accounting Standards Board (GASB) Statement No. 34 requirements. LIABILITIES Pension Liabilities – In pursuit of prudent fiscal practices and long-term financial sustainability, the City employs various strategies to mitigate the overall cost of pension benefits and prior-year liabilities. These strategies include offering lower-tier pension benefits for new employees, making lump sum prepayments, and accelerating unfunded pension liability payments. Long-Term Debt – Saratoga's debt policy adheres to State regulations and accounting standards. The City does not typically incur debt for operational or capital improvements. In exceptional circumstances, the City may seek voter approval for bonded debt, either city-wide or through Community Facility Districts. FUND BALANCE The City reserves a portion of its funds for future use to maintain fiscal stability, ensure orderly government operations, provide services to residents, and mitigate current and future risks. The City Council determines when and whether to appropriate available funds to and from a reserve account based on specific directions in the annual budget or separate City Council actions, unless otherwise specified by policy. Adequate reserves are maintained for all known liabilities and established City Council and community-directed initiatives, reflecting responsible fiscal stewardship. REVENUES Cost Recovery (User Fees) – Saratoga's Fee Schedule catalogs fees charged for services to the community, with varying levels of general taxpayer support. Planning and building services provided by the Community Development department aim for full cost recovery for certain land uses and improvements that primarily benefit the property owner. However, other services provided by Community Development offer greater community-wide benefits, and the City Council policy sets a lower cost recovery for those services, such as code compliance and event permits. The most recent comprehensive review of user fees and the cost of services was completed in 2022 and reflected in the City Council-adopted fee schedule effective from July 1, 2023. The new fee schedule establishes fees in Community Development to achieve an overall cost recovery for planning and building services of 75% and 90%, respectively. Annual escalators may be considered by the City Council to ensure that fees remain reasonably current with underlying personnel costs. Grants and Donations - The City recognizes the value of grants and donations in extending existing services, introducing new initiatives, enhancing artistic and cultural infrastructure, implementing technological advances, and subsidizing programmatic staffing for various purposes such as public safety, recreational activities, development support, social services, homeland security, and economic efforts. Saratoga actively pursues federal, state, local, foundation, business, and private CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 33 City Overview grants that align with the City's priorities and provide a benefit, considering grant requirements. EXPENDITURES Expenditure Budget Management - Expenditures must adhere to the City's purchasing policy, travel policy, credit card policy, contract policy, public contract code, state or federal law, and other applicable guidelines or regulations. Expenditure management occurs at the program level. The City Manager has the authority to transfer appropriations within a fund in the adopted budget, while the City Council retains authority for appropriation increases and decreases, transfers between funds, and scope and funding changes to Capital Improvement Program (CIP) projects. Capital Improvement Program - The City maintains five Capital Improvement Program (CIP) project areas that are comprised of multiple discrete projects. Unspent project funds carryover automatically from year to year, restricted to the project receiving the original appropriations unless directed otherwise by City Council through a formal budget amendment. In the case of some projects, the City may appropriate funds over serval years sufficient to accumulate the necessary amount to complete a project. The City Council has established a policy that allocates all revenue received in the budget year with a roadway nexus to fund the Pavement Management Program. For the 2023-24 fiscal year, the total revenue from various sources with a roadway nexus amounts to $2.6 million. This includes revenue generated from State Gas Taxes and the Roadway Rehabilitation Fund (SB1), the City's Refuse Vehicle Impact Fee, and Santa Clara County Measure B Sales Taxes. In addition to funding the Annual Pavement Management Program, the City Council has set a funding goal of $900,000 for six priority projects within the Capital Improvement Program. These priority projects receive special attention and resources to address their specific needs and importance to the City. Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 34 CAPITAL IMPROVEMENT PROGRAM FUNDING PRIORITIES Project Name Annual Funding Goal 2023-24 Funded Level Project Description Page Annual Pavement Management Program 100% dedicated PMP revenues: Gas Taxes, Roadway Rehabilitation Fund (SB1), Refuse Vehicle Impact Fee, Santa Clara County Measure B Sales Taxes 100% dedicated revenues plus one-time funding: $2.6 million and $1.3 million General Fund Future Capital Reserve 164 Annual Sidewalk, Storm Drains, Curb & Gutter, and Bridge Infrastructure $250,000 100%173 Annual Retaining Wall Infrastructure $200,000 100%189 Annual Parks, Trails, Grounds and Medians Infrastructure $250,000 100%196 Annual Roadway Safety and Traffic Calming Infrastructure $150,000 100%166 Annual Public Art Infrastructure $25,000 100%231 Annual Hakone Gardens Infrastructure $25,000 100%198 CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 35 City Overview PURPOSE The budget serves multiple purposes and functions as a comprehensive financial plan for each fiscal year beginning July 1st. It is not only a document outlining the City's financial activities for a specific fiscal year, but also serves as a policy document, a tool for communication, and a guide to City operations. The budget focus is on long-term financial stewardship, sustainability, service delivery, and program management. It plays a crucial role in articulating the City's annual strategic plan by connecting the overall goals and objectives to the specific services and projects that the City intends to accomplish. It also highlights the resources allocated for these endeavors. To facilitate this linkage, the program-based budget presents programs as organized under a main department. The program budgets identify the purpose of each program, outlines key projects, and sets workplan goals in relation to revenue and expenditure appropriations. Programs evolve year-over-year and can move between department umbrellas as operations change.This ensures transparency and accountability in the allocation and utilization of funds. The City adopts an annual budget that includes appropriations for both operating and capital improvement program expenditures for the upcoming fiscal year. The budget is presented as a summary level budget document that reflects the City's financial statements and follows industry standards and best practices. BASIS OF BUDGETING AND ACCOUNTING The budget is developed on a program basis with fund level authority, representing the services and functions provided by the City in alignment with the allocated resources for the fiscal year. The Capital Improvement Program (CIP) is funded and defined by its approved projects, and any ongoing or incomplete projects are re-appropriated into the following fiscal year. The Basis of Accounting and Budget refers to the timing factor concept in recognizing transactions. This basis plays a crucial role in the overall financial system as the budget determines the accounting system used. For example, if the budget anticipates revenues on a cash basis, only cash revenues are recorded as receipts in the accounting system. Similarly, if the budget uses an accrual basis, the accounting system follows suit. This consistency is also reflected in the City's Annual Comprehensive Financial Report (ACFR), the State Controller's Annual Cities Transactions Report, and all other report documents. Government budgets and accounting employ a mix of accounting methods. A hybrid cash and accrual accounting system known as "Modified Accrual Basis" is used, which recognizes revenues when measurable and available. Saratoga adopts the modified accrual basis, and the basis of budgeting is identical to the basis of accounting. The City considers all revenues reported in the governmental funds to be available if they are collected within 45 days after the fiscal year-end. Revenues such as licenses, property taxes, and taxpayer-assessed tax revenues (e.g., franchise taxes, sales taxes, and transient ANNUAL BUDGET PROCESS Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 36 occupancy tax) are considered susceptible to accrual and recognized as revenues in the period earned/collected. Revenues from grants and donations are recognized in the fiscal year when all eligibility requirements have been satisfied. Expenditures are recorded when the liability is incurred. Claims, judgments, compensated absences, and principal and interest on general long- term debt are recognized as expenditures to the extent that they have matured. The Modified Accrual Basis is used for governmental funds, while the full accrual basis accounting method is used for proprietary funds. Governmental Funds consist of the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds. Under this basis, revenues are estimated for the period if they are susceptible to accrual, meaning that the amounts can be determined and will be collected within the current period. Principal and interest on general long-term debt are budgeted as expenditures when due, while other expenditures are budgeted for liabilities expected to be incurred during the current period. Proprietary fund budgets are adopted using the full accrual basis of accounting. Revenue budget projections are developed by recognizing revenues expected to be earned during the period, and expenditures are developed for expenses anticipated to be incurred in the fiscal year. The City maintains one type of proprietary fund: Internal Service Funds. While not currently heavily utilized in Saratoga, Fiduciary Funds are also budgeted using the modified accrual basis. This includes Trust Funds, which are subject to trust agreement guidelines, and Agency Funds, which are held in a custodial capacity involving only the receipt, temporary investment, and remittance of resources. BUDGET PROCESS The City conducts a team-based budgeting approach, where the City Manager and Administrative Services Director guide the process, but program budgets and workplans are developed under the oversight and expertise of each department's director or program manager. This approach allows for hands-on planning and ensures a clear understanding of program goals and functions to be accomplished in the next budget year. Saratoga's City Code, Section 2-20.050(i), mandates the City Manager to prepare and submit an annual budget to the City Council. The general budget development calendar follows the outlined timeline, but it may vary based on operational and policy needs: January - The budget development process begins with the City Manager working with the City Council to develop and refine initiatives and directives for the upcoming budget year. Concurrently, a multi-year financial forecast is developed and presented for Council review during the annual Council Retreat. This forecast provides an overview of service level operations and helps guide the discussion on upcoming budget direction. The Capital Improvement Program (CIP) is also reviewed to determine funding capabilities, project priorities, and refine project workplans. CIP projects have a significant impact on the City's ongoing operations and are therefore a crucial part of financial planning. February – The budget preparation process kicks off in earnest. Budget assumptions, directives, and initiatives are provided to establish the City's overall objectives and goals. Over the next few months, staff identifies and analyzes program revenue and expenditure projections. CIP projects undergo assessment and refinement, and CIP funding and appropriation requirements are finalized. The community has an opportunity to attend Finance Committee, Planning Commission, and City Council CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 37 City Overview meetings to provide input on the budget process. March through May - Staff assembles the proposed budgets through rounds of briefings and revisions. Financial summary information is finalized, and the proposed budget document is prepared for City Council review. In accordance with Section 65401 of the State Government Code, the City's Planning Commission reviews the proposed Capital Improvement Program and reports back to the City Council regarding its conformity with the City's Adopted General Plan. June – The City Council considers final budget adoption through a two-step process. First, a public hearing is conducted, with notice of the hearing published in a local newspaper at least ten days prior to the hearing date. The public is invited to participate, and copies of the proposed budgets are made available for review on the City's website, in the City Manager's Office, and at the budget hearing. Final revisions directed by the Council are incorporated into the proposed budget, and the budget documents are resubmitted for adoption in a publicly announced meeting before the start of the fiscal year. BUDGET AMENDMENT AUTHORITY During the fiscal year, it is possible for economic factors, changes in workplans, or unforeseen needs to arise, requiring adjustments to the adopted budgets. In such cases, the City Manager is authorized to make transfers of appropriations between categories, departments, projects, and programs within a fund, as outlined in the adopted budget. However, the City Council retains discretion over fund-level and Capital Improvement Program CIP project appropriation changes, as well as transfers between funds. This ensures that significant changes to City operations are reviewed and approved by the governing body. By granting the City Manager the authority for intra-fund budget transfers and reserving certain decisions for the City Council, the budgeting process maintains a balance between operational flexibility and the need for oversight and accountability in managing public funds. Overview City Overview CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 38 PAGE LEFT BLANK INTENTIONALLY Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 39 OVERVIEW This budget represents a balanced spending plan that maintains current service levels while addressing various challenges, including high inflation rates impacting salaries and wages for City staff and contract personnel and the loss of solid waste franchise fee revenue. To achieve a balanced budget, several strategies have been implemented, including increased cost recovery fee revenue, reimagining our facility rentals service delivery model, and a reduced additional payment to the City's unfunded pension liability payment by $0.3 million. While the 2023-24 budget is balanced, it relies on one-time solutions. The trend of expenditures growing faster than revenues will continue to erode the City’s ability to balance its budget as demonstrated in the chart below. This section provides a summary of the most impactful drivers of the General Fund’s finances. FY19 Actuals FY20 Actuals FY21 Actuals FY22 Actuals FY23 Estimated FY24 Adopted Revenues 24,115,949 23,508,912 26,405,189 26,873,597 27,359,559 28,273,852 Expenditures 22,708,212 21,422,728 23,238,768 23,724,585 25,623,673 28,218,539 Net Operating Revenue 1,407,737 2,086,185 3,166,421 3,149,012 1,735,886 55,313 $0 $5 $10 $15 $20 $25 $30 Mi l l i o n s General Fund Net Revenue/ (Expenditure) Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 40 GENERAL FUND REVENUES General Fund Revenues Five revenue sources make up 90 percent of Saratoga’s resources available for General Fund operations: 1) Property Tax 2) Franchise Fees, 3) Charge for Services, 4) Fees, Licenses & Permits, and 5) Sales Tax. Other revenue categories, such as rental income, transient occupancy tax, and construction tax, are also important to the overall revenue picture, but fluctuations in these revenues do not individually impact the City’s fiscal sustainability. Property Taxes The property taxes in Saratoga play a crucial role in funding essential services such as law enforcement, public works, and general administration. The property tax system in California underwent significant changes with the passage of Proposition 13 in 1978. At that time, Saratoga was a no/low property tax city, meaning it had relatively low property tax rates compared to other cities. In Saratoga, a resident's property taxes allocated to support city services are limited to a minimum amount required by law, which ranges from $0.055 to $0.075 per $1 of base property taxes, depending on tax rate area. For example, assuming the City received $0.07 per $1 of base property tax and a property has a Prop 13 assessed value of $2,000,000, the base property tax bill would be $20,000 per year. Out of that amount, the city would receive $1,400 to fund essential services. The remaining portion of property taxes goes to other districts such as schools, fire departments, community colleges, and the County of Santa Clara to support services provided by those entities. Changes in Saratoga's base property tax revenue stem from three factors. Prop 13 allows for a maximum 2.0 percent increase in assessed values based on the California 411 - Property Taxes $18,636,124 66% 413 - Other Taxes $2,677,000 10% 416 - Franchises & Surcharges $1,918,500 7% 420 - Intergovernmental $303,000 1% 440 - Charges for services $3,164,892 11% 450 - Fines & penalties $47,300 0% 460 - Use of money & property $1,527,036 5% 2023-24 General Fund Revenues by Type $28.27 million Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 41 Consumer Price Index. Additionally, when a property undergoes a change in ownership, its Prop 13 assessed value adjusts to 100 percent of its market valuation, which can lead to significant increases compared to previous assessments. Finally, Prop 13 assessed values can increase by 100 percent of building improvements, such as new construction, major remodeling, or additions. Property tax revenues in California are further complicated by state actions that redirected funds away from cities to fulfill obligations to schools and reduce motor vehicle license fees. The Educational Revenue Augmentation Fund (ERAF) transfers property taxes that were previously allocated directly to local agencies, including cities and fire districts, to meet the state's education funding requirements statewide. In Santa Clara County and several other counties in California, the amount of ERAF withheld from cities exceeds the amount required by state funding formulas. As a result, cities receive a refund of the excess ERAF, which amounts to approximately $0.8 million in 2023-24. The calculation and distribution of excess ERAF are monitored by the Santa Clara County Controller's Office, as any changes in laws or legal cases could impact this amount. FY19 Actuals FY20 Actuals FY21 Actuals FY22 Actuals FY23 Estimated FY24 Adopted 460 - Use of money & property $1,360,159 $998,463 $1,683,685 $439,864 $1,333,722 $1,527,036 450 - Fines & penalties $193,502 $104,829 $81,323 $95,697 $47,464 $47,300 440 - Charges for services $3,277,088 $2,506,170 $3,101,095 $3,216,059 $2,792,843 $3,164,892 420 - Intergovernmental $533,058 $586,289 $975,943 $595,747 $328,085 $303,000 416 - Franchises & Surcharges $2,382,074 $2,318,019 $2,391,830 $2,567,923 $2,279,000 $1,918,500 413 - Other Taxes $2,203,891 $1,964,085 $1,894,110 $2,548,441 $2,567,000 $2,677,000 411 - Property Taxes $14,166,178 $15,031,057 $16,277,201 $17,409,865 $18,011,445 $18,636,124 Total Revenues $24,115,949 $23,508,912 $26,405,189 $26,873,597 $27,359,559 $28,273,852 $24.12 $23.51 $26.41 $26.87 $27.36 $28.27 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 Mi l l i o n s General Fund Revenues by Type Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 42 Another component of the city's property taxes is known as "property tax in-lieu of vehicle license fees." This component compensates cities for the loss of vehicle license fees due to changes in state tax policies in the early 2000s. City staff is monitoring developments of legislative actions that would limit allocations of property tax in-lieu of vehicle license fees to cities in San Mateo County. The 2023-24 budget includes a 5.36 percent increase in base property taxes with no assumed growth in Excess ERAF and transfer taxes which have decreased from previous years due to a low supply of properties available for sale. FY19 Actuals FY20 Actuals FY21 Actuals FY22 Actuals FY23 Estimated FY24 Adopted Non-Departmental $19,435,778 $19,932,393 $22,208,084 $22,180,286 $23,780,298 $24,531,960 Public Safety $561,400 $411,477 $486,442 $734,418 $334,500 $324,000 Community Services $736,058 $239,575 $136,203 $281,529 $328,659 $97,000 Public Works $1,482,546 $1,105,890 $1,357,120 $1,495,108 $769,092 $814,382 Community Development $1,822,175 $1,765,851 $2,140,135 $2,127,779 $2,057,975 $2,441,110 Administrative Services $59,962 $54,499 $54,104 $54,477 $66,590 $64,700 City Manager's Department $15,630 $(1,374)$22,500 $-$21,830 $- Council & Commissions $2,400 $600 $600 $-$615 $700 Total $24,115,949 $23,508,912 $26,405,189 $26,873,597 $27,359,559 $28,273,852 $24.12 $23.51 $26.41 $26.87 $27.36 $28.27 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 Mi l l i o n s General Fund Revenue by Department Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 43 Franchise Fees Franchise fees in California are charges imposed on utilities such as electricity, gas, telecommunications, and solid waste services. These fees help local agencies offset the costs of maintaining the infrastructure necessary for these utilities to operate within a city. The largest franchise fee in Saratoga is related to solid waste services provided by the West Valley Solid Waste Management Authority (WVSWMA), amounting to approximately $1.3 million in 2022-23. However, a recent ruling by the California Supreme Court in the case of Zolly v. City of Oakland has invalidated the City of Oakland’s solid waste franchise fee. This ruling has caused solid waste providers and cities across the state to reconsider the viability of such franchise fees. As a result, the 2023-24 budget includes a partial loss of the franchise fee, with a full loss expected in 2024-25. The loss of the solid waste franchise fee has a significant impact on the city's ability to meet its financial obligations in future years. Fees, Licenses, and Permits and Charges for Services The category of Fees, Licenses, and Permits includes revenue generated from development activity and encroachment permit fees for utility company construction work. The 2023-24 budget includes revenue estimates that reflect higher fees as a result of City Council policy direction to achieve overall cost recovery in Community Development’s planning services of 75% and 90% overall cost recovery in the department’s building services. To arrive at revenue estimates, City staff review current and past activity. Past activity has shown that in general, during times of economic prosperity, property values grow and both new home buyers and long-term homeowners undertake remodeling projects. During economic downturns, property values decline or become stagnant, and remodeling activity also decreases. Construction activity cannot be projected by trend lines, due to the fluctuations from year-to-year. Sales Tax & Transient Occupancy Tax Both taxes have maintained their recovery from the devastating impacts of the pandemic. For 2023-24, the budget assumes no growth over the 2022-23 estimated actual revenue. Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 44 GENERAL FUND EXPENDITURES The 2023-24 General Fund budgeted expenditures show a $1.9 million increase compared to the estimated actual expenditures for 2022-23. Salaries and benefits constitute 37 percent of the budgeted expenditures in the 2023-24 budget. However, when including the UAL payments, this category accounts for 39 percent of the total budget. Public Safety contract services represents the next largest portion of the budget, comprising 29 percent. Internal Service Fund charges make up 15 percent of the budget and serve as the City's reimbursement for insurance premiums, support services, and fixed asset and infrastructure replacement costs. Contract Services, excluding public safety contracts, make up 7 percent of the budget this fiscal year, covering various support services like parks and facilities maintenance. Professional services, including legal, planning, and engineering, amount to 3 percent of the total General Fund budget. For year-over-year comparison, it is important to note that the budget is typically based on maintaining the same level of service as the prior year, with adjustments made for expected growth or decline in costs. Certain areas, such as Sheriff Services or staff salary and benefit costs, have contractual obligations in place. Reducing these areas would necessitate personnel reductions and could impact the City's ability to provide services or maintain public safety levels. 500 - Salaries & Benefits $10,143,442 36% 529 - UAL Payoff $1,256,000 4% 610 - Operating Expenses $1,913,043 7% 640 - Contract Services $1,885,000 7% 648 - Public Safety Contract Services $8,192,000 29% 650 - Professional Services $795,500 3% 790 - Internal Services $4,033,554 14% 2023-24 General Fund Expenditures by Type $28.22 million Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 45 Salaries and Benefits The The General Fund's personnel budget, which comprises salaries and benefits, assumes full staffing throughout the year, meaning that there are no salary savings resulting from vacancies. In the past, the City has filled vacancies using contract staff, and no budget amendment is processed unless the backfill requires a net increase to the overall General Fund budget. The estimated actual expenditures for 2022- 23 include salary savings from various vacant positions that occurred during the year, particularly in the City Manager's and Administrative Services Department. The year-over-year salary increases observed in these departments, therefore, do not reflect an increase in full-time equivalent personnel but rather reflect the City's practice of assuming no vacancies during the budgeting process. The 2023-24 personnel budget accounts for cost increases due to contractually obligated salary increases, rises in CalPERS contributions, and a partial year of estimated increases in health and welfare benefit costs. The budget also incorporates a mid-year reduction of 1.0 full-time equivalent (FTE) personnel resulting from the reimagining facility rentals partnership with LGS- Recreation, as discussed in the City Manager's budget message. FY19 Actuals FY20 Actuals FY21 Actuals FY22 Actuals FY23 Estimated FY24 Adopted 790 - Internal Services $2,591,332 $2,629,225 $3,075,859 $3,254,203 $3,206,081 $4,033,554 650 - Professional Services $473,374 $734,786 $536,346 $444,801 $732,721 $795,500 648 - Public Safety Contract Services $5,879,322 $6,277,351 $6,640,019 $7,063,303 $7,613,054 $8,192,000 640 - Contract Services $1,798,120 $1,240,962 $1,528,690 $1,624,885 $1,817,107 $1,885,000 610 - Operating Expenses $1,455,517 $1,451,363 $1,881,541 $1,540,220 $1,729,024 $1,913,043 529 - UAL Payoff $1,052,631 $1,041,098 $1,013,779 $1,013,932 $950,000 $1,256,000 500 - Salaries & Benefits $7,617,050 $8,047,943 $8,562,534 $8,783,240 $9,575,686 $10,143,442 Total Expenditures $20,867,346 $21,422,728 $23,238,768 $23,724,585 $25,623,673 $28,218,539 $20.87 $21.42 $23.24 $23.72 $25.62 $28.22 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 Mi l l i o n s General Fund Expenditures by Type Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 46 Unfunded Pension Liability Payment As of June 30, 2021, the most recent UAL valuation date available, the City's unfunded accrued liability (UAL) for post-retirement benefits owed to City employees amounts to $3.7 million. This translates to a funded ratio of 93.7%, which includes an extraordinary investment gain of 21.3% for the fiscal year that ended on June 30, 2021. In comparison, the UAL in the prior year (2020) was $9.9 million, with a funded ratio of 82.0%, which was similar to the funded level in the previous two valuations conducted in 2018 and 2019. However, the significant reduction in UAL from 2020 to 2021 is outdated information, as it does not reflect the considerable investment losses experienced by CalPERS for the year that ended on June 30, 2022. The 2022 valuation is still pending, and City staff anticipate receiving the report in Fall 2023. Until the updated valuation is available, City staff recommends assuming that the City's UAL is approximately $8 to $9 million in fiscal year 2022-23 and 2023-24, with the losses incurred in 2022 negating the gains reflected in previous valuations. As of the April 30, 2023 CalPERS investment portfolio report, the portfolio has decreased by approximately $13 billion compared to the June 30, 2022 ending asset value. Contract Services The City has made a strategic decision to rely heavily on contract services rather than grow employee headcount to trim trees, parks, landscape and median maintenance, and supplemental staff in cost recovery programs such as Community Development. The 2023-24 budget maintains the level of effort required in 2022-23. In the Parks and Landscape Maintenance program, the budget includes a contingency of between 10 and 25 percent for contract services in 2023- 24. The contingency arises out of the yet- unknown bidding process which will establish new contracts in the face of high inflationary pressures. The contract results will be known after the budget public hearing and any required budget amendments will occur after the beginning of the new fiscal year. Public Safety Contract Services Public safety remains a top priority for Saratoga City Council members and residents. Since the city's incorporation in 1956, the City has contracted with the Santa Clara County Sheriff's Office for public safety services, which has proven to be a beneficial partnership in various ways. As a small city, Saratoga saves millions of dollars annually by contracting public safety services instead of maintaining an in-house police department, which would be more costly. The City also contracts with the City of San Jose for animal control services. The Santa Clara County Sheriff's Office is a large organization with 1,300 sworn officers and the ability to allocate resources to contract cities as needed. This provides flexibility for times when additional resources are required, while keeping services at a minimum during most periods. The Sheriff's Office offers all the services that an internal police department would provide, including patrol, traffic enforcement, investigations, crime analysts, technology services, public outreach, canines, and other valuable law enforcement services. The Sheriff's Office contract provides 20,060 general law enforcement service hours, 4,195 traffic enforcement hours, 2,400 investigative hours, 68 reserve activity hours, and a full- time School Resource Officer. In the 2023-24 budget, the Public Safety contract services accounts for 30 percent of the City's General Fund budget. This is favorable compared to other Santa Clara County municipalities that allocate upwards of 40 percent or more of their General Fund budgets for in-house police services. Saratoga's cost for Sheriff Services per Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 47 resident is one of the lowest, or very near the lowest, among all Santa Clara County cities each year. In addition to cost savings, the City benefits from low crime rates due to its partnership with the Santa Clara County Office of the Sheriff. Being part of a larger law enforcement organization allows deputies to be aware of criminal activity throughout the county, not just within Saratoga. This broader communication reach enables deputies and crime analysts to identify targeted areas, criminal patterns, crime activity connections, and suspects. Year after year, Saratoga is recognized for its low crime rate at both state and national levels by various public safety organizations. Fixed Assets In the 2023-24 General Fund budget, no new fixed assets are included. Whenever there are new fixed assets needed, funding is sourced from the department's operating budget. Once purchased, funding for replacing these fixed assets is allocated to the "owners" over the asset's projected lifetime, with the aim of building up accumulated funding in the relevant replacement fund. The applicable replacement funds are the IT Replacement Fund, the Vehicle & Equipment Replacement Fund, and the Furniture, Fixtures & Equipment Replacement Fund. Internal Service Funds The City employs Internal Service Funds (ISF) to establish centralized cost centers for shared expenses and services, allowing for efficient cost tracking and resource management. Costs are allocated back to operational programs based on usage, ensuring that program expenditures reflect the fully burdened cost of service. These charges are treated as expenses in the General Fund programs and revenues in the ISFs. There are nine ISFs: two Insurance funds (Risk Management and Workers Compensation), four Service/Support funds (Office Support, IT Services, Vehicle & Equipment Maintenance, and Facility Maintenance Funds), and the three Asset Replacement funds mentioned in the Fixed Assets section above. With the exception of the Office Support Fund, which serves as a centralized cost center for copy and mail machines as well as centralized purchases of paper and related supplies, the service- based ISF funds have dedicated staff assigned to the programs. Ongoing increases in salary and benefits, along with other operational costs, contribute to rising expenditures in these funds each year. As part of the efforts to balance the 2022-23 budget, the ISF charges to programs were maintained at their 2021-22 levels despite increasing costs. Since the 2021-22 allocations to programs were established, internal service costs have experienced significant increases, particularly in liability, property, and workers' compensation insurances, which have risen by approximately 50 percent over the two-year period. For the 2023-24 budget, the internal service fund allocations will increase by 25 percent to catch up with the cost increases incurred since the 2021-22 allocations were set. Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 48 PAGE LEFT BLANK INTENTIONALLY City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 49 Department Overview The City Council and Commissions Department budget captures the revenue and expenditures of the governing body, City Council, and the City Council’s appointed Planning Commission and advisory bodies. The City Council establishes City policy and serves as the decision-making body. City Council acts upon recommendations from advisory bodies and City staff, and then provides direction to the City Manager for implementation. Both the City Council and City Commissions play a key role in the implementation of the Council’s Strategic Goals. City Council Programs Net Revenue/ (Expenditure) General Fund Programs Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted City Council (213,966) (172,903) (161,502) (232,649) (174,081) (255,743) Commissions (35,551) (25,380) (55,451) (58,654) (34,801) (72,731) General Fund Total (249,517) (198,283) (216,953) (291,303) (208,882) (328,474) City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 50 PAGE LEFT BLANK INTENTIONALLY City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 51 City Council Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 1101 - City Council 440 - Charges for services 600 600 - 600 615 700 500 - Salaries & Benefits (18,130) (15,989) (16,338) (16,300) (16,300) (16,300) 610 - Operating Expenses (121,538) (68,612) (44,917) (116,445) (63,892) (115,000) 650 - Professional Services (6,400) - (8,700) (10,000) (4,000) (8,000) 790 - Internal Services (68,499) (88,901) (91,548) (90,504) (90,504) (117,143) 1101 - City Council Total (213,966) (172,903) (161,502) (232,649) (174,081) (255,743) The City Council establishes City policy and serves as the decision-making body. City Council acts upon recommendations from advisory bodies and City staff, and then provides direction to the City Manager for implementation. Both the City Council and City Commissions play a key role in the implementation of the Council’s Strategic Goals. Key services include: • Represent the residents and community of Saratoga. • Provide community leadership as the legislative and policy-making body. • Effectively represent the City of Saratoga in coordination with other local, county, state, and federal agencies. • Oversee the City’s Commissions and provide support to community organizations on emergent issues. • Work with the community to identify needs and issues in the City. • Manage City finances in a fiscally conservative and forward-thinking manner. 2023-24 Notable Budget Changes • Actual expenditures in 2022-23 show a moderate return to pre-pandemic operational levels. • The 2023-24 expenditure budget reflects an increase due to higher insurance internal services fund costs. 2023-24 Work Plan and Priorities • Fiscal Responsibility – Continue to closely monitor economic conditions to ensure that City finances can be adjusted as needed and essential services remain operational and enable the City to proactively seek opportunities to improve the strength of the City’s finances. • Community Engagement – Continue to strengthen the sense of community, increase inclusiveness, and celebrate Saratoga’s diversity. • Local Economy – Encourage the improvement and stability of the local economy and enhance business development by creating an environment that supports the City’s business community. • Sustainability – Continue to monitor water consumption, energy use, and carbon emissions to identify and realize opportunities to make Saratoga a more sustainable community. • City Ordinance Updates – Initiate the City’s planning process to revise and update key City ordinances to ensure the City Code reflects Saratoga’s regulatory needs and can be easily enforced. • Long Term Planning – Continue long term planning efforts to maintain Saratoga’s excellent quality of life and guide the City’s future development. City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 52 PAGE LEFT BLANK INTENTIONALLY City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 53 Commissions and Committees Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 1201 - Commissions 500 - Salaries & Benefits (13,403) (12,272) (12,595) (13,500) (13,500) (13,500) 610 - Operating Expenses (15,791) (4,601) (32,751) (35,059) (11,206) (44,100) 790 - Internal Services (6,358) (8,507) (10,104) (10,095) (10,095) (15,131) 1201 - Commissions Total (35,551) (25,380) (55,451) (58,654) (34,801) (72,731) Commissions and City Committees are designated bodies that provide specialized advice or other assistance to the City Council and City staff. Commissioners apply for and are appointed by the City Council to serve four-year terms. Youth Commissioners are appointed to two-year terms. At least one City staff member is assigned to each Commission to provide general support and ensure that agenda preparation, posting, minutes, and other meeting elements are fulfilled as required under the Brown Act. Currently, there are eight active Commissions and two Committees to advise the City Council on specific issues: Heritage Preservation Commission, Library & Community Engagement Commission, Parks & Recreation Commission, Planning Commission, Public Art Commission, Traffic Safety Commission, Youth Commission, Council Finance Committee, and Disaster Council. Key services include: • Provide specialized advice and assistance to Council. • Broaden policy and decision making by providing additional forums for the public to provide input and testify at public hearings. • Work with City staff in researching issues, collecting information, and providing recommendations to the Council. 2023-24 Work Plan and Priorities • Community Engagement – Commissions support efforts of the City Council to create an inclusive community by seeking input and involvement of residents in City matters and building a greater sense of connection between the City and its residents. • City Council Support – Commissions serve the City Council in an advisory capacity on designated subject matters. City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 54 PAGE LEFT BLANK INTENTIONALLY City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 55 Department Overview The City Manager’s Department is comprised of the City Manager’s Office, the City Clerk’s Office, and the Public Information Office. The City Manager’s Department supports the Council’s legislative and policy interests, provides management and leadership, and direction for the City organization. The City Manager’s Department also supports Commissions, interacts with community groups, fosters community relationships, and provides public awareness of municipal programs, services, and goals through effective community outreach, using avenues including the City website, media relations, social media, and various publications. In addition, the City Manager’s Department liaises with other local agencies that provide services to the City of Saratoga through contract or other means, such as public safety and emergency preparedness. City Manager’s Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted City Manager’s Office (620,400) (671,920) (668,273) (747,315) (793,079) (798,009) City Clerk’s Office (298,256) (436,408) (389,103) (521,856) (478,151) (416,228) Public Information Office (259,738) (336,284) (304,649) (392,398) (335,467) (366,580) General Fund Total (1,178,393) (1,444,612) (1,362,025) (1,661,569) (1,606,697) (1,580,817) City Manager James Lindsay Assistant City Manager Leslie Arroyo City Clerk Britt Avritt Public Information Officer Lauren Bloom City Manager's OfficeCouncil support, organizational management and leadership City Clerk's Office Meets legal requirements related to City records and conducting City business Public Information Office Responsible for community outreach City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 56 PAGE LEFT BLANK INTENTIONALLY City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 55 Department Overview The City Manager’s Department is comprised of the City Manager’s Office, the City Clerk’s Office, and the Public Information Office. The City Manager’s Department supports the Council’s legislative and policy interests, provides management and leadership, and direction for the City organization. The City Manager’s Department also supports Commissions, interacts with community groups, fosters community relationships, and provides public awareness of municipal programs, services, and goals through effective community outreach, using avenues including the City website, media relations, social media, and various publications. In addition, the City Manager’s Department liaises with other local agencies that provide services to the City of Saratoga through contract or other means, such as public safety and emergency preparedness. City Manager’s Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted City Manager’s Office (620,400) (671,920) (668,273) (747,315) (793,079) (798,009) City Clerk’s Office (298,256) (436,408) (389,103) (521,856) (478,151) (416,228) Public Information Office (259,738) (336,284) (304,649) (392,398) (335,467) (366,580) General Fund Total (1,178,393) (1,444,612) (1,362,025) (1,661,569) (1,606,697) (1,580,817) City Manager City Manager's OfficeCouncil support, organizational management and leadership City Clerk's Office Meets legal requirements related to City records and conducting City business Public Information Office Responsible for community outreach City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 56 PAGE LEFT BLANK INTENTIONALLY City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 57 City Manager’s Office Program Net Revenue/ (Expenditure) Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Expenditures 500 - Salaries & Benefits (547,459) (590,319) (579,943) (652,900) (616,900) (688,625) 610 - Operating Expenses (13,070) (9,559) (15,375) (22,736) (14,500) (20,500) 650 - Professional Services - - - - (90,000) - 790 - Internal Services (59,871) (72,042) (72,954) (71,679) (71,679) (88,884) 2101 - City Manager's Office Total (620,400) (671,920) (668,273) (747,315) (793,079) (798,009) The City Manager’s Office provides leadership, oversight, and direction for City functions; supports City Council and appointed advisory bodies; nurtures community and intergovernmental relations; and cultivates public awareness of City services, programs, and activities. The Office also oversees the City Clerk and Public Information Office, and coordinates with external agencies that provide Public Safety and Emergency Preparedness services to the City. Key services include: • Provide comprehensive information, policy analysis, and support to the City Council. • Provide oversight, leadership, and direction to City functions. • Monitor state and federal legislation and effectively communicate the City’s position on legislative proposals affecting Saratoga. • Facilitate strong community and intergovernmental relations. • Cultivate public awareness of municipal services, programs, and activities. • Present a balanced budget to City Council each fiscal year which reflects the most accurate revenue estimates and economic conditions at the time. • Assure that City services are performed in accordance with City Council priorities and within the capabilities of the City’s resources. • Inform the City Council, in a timely manner, of the City’s financial condition and the future needs of the City on an ongoing basis. 2023-24 Notable Budget Changes Funding for training-related conferences returned to pre-pandemic levels as most training conferences have returned to in-person events. 2023-24 Work Plan and Priorities • Annual Budget – The City Manager’s Office oversees the City’s annual budget for the City Council and the community, ensuring City finances, services, and projects are properly presented and budgeted. • Management and Council Retreats – Organize and facilitate an annual retreat to address organizational development, and to prepare for the annual City Council retreat. Organize an annual City Council retreat to facilitate policy and issue development, resulting in the generation of the City’s annual work plan and, subsequently, the operating and capital budgets. • Public Safety – In 2022, the City Council authorized a one-year Automated License Plate Reader (ALPR) pilot program with the deployment of 7 Flock Safety cameras. The ALPR system captures images of vehicle license plates then compares the plates against law enforcement databases. If a plate matches a listing for a stolen vehicle or person of interest, the system will alert the Sheriff’s Office so that a deputy can be deployed to investigate. The Council will evaluate the pilot program in the fall/winter of 2023. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 58 City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 59 City Clerk’s Office Program Net Revenue/ (Expenditure) Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Revenues 440 - Charges for services (1,374) 22,500 - 23,235 21,830 - Expenditures 500 - Salaries & Benefits (179,560) (209,602) (248,260) (247,000) (230,140) (251,092) 610 - Operating Expenses (17,968) (116,784) (11,366) (163,070) (137,820) (14,950) 640 - Contract Services (21,839) (28,207) (29,943) (35,745) (32,745) (33,500) 790 - Internal Services (77,516) (104,315) (99,535) (99,276) (99,276) (116,686) 2201 - City Clerk Total (298,256) (436,408) (389,103) (521,856) (478,151) (416,228) The City Clerk is responsible for meeting the legal requirements related to maintaining City records and conducting City business, as set forth in the State of California Government Code and City Municipal Code. The City Clerk prepares City Council agendas and minutes, ensures the timely indexing of resolutions, ordinances, and agreements, and maintains an accurate record of all Council proceedings. The City Clerk also works with the Santa Clara County Registrar of Voters to conduct local elections in a fair and impartial manner; and receives petitions and subpoenas on behalf of the City. Key services include: • Meet legal requirements as set forth in the State of California Government Code and City Municipal Code. • Maintain City records through timely indexing of resolutions, ordinances, and agreements. • Prepare City Council agendas and minutes. • Maintain an accurate record of Council proceedings. • Maintain custody of the City Seal. • Administer Oaths and Affirmations. • Prepare and publish legal notices. • Maintain the Saratoga Municipal Code. • Ensure Fair Political Practices Commission filings are made on a timely basis. • Ensure that all elected officials, appointed officials, and required staff meet mandatory AB 1234 biennial training requirements. • Administer recruitment process for Commission and Outside Agency Council appointments. 2023-24 Notable Budget Changes • The City holds a General Municipal Election every two years for positions on the City Council. The most recent election occurred in November 2022 and the next election will be held in November 2024. As a result, there are no revenue and expenditure costs associated with elections in the 2023-24 budget. • The 2022-23 operating budget included funding to update the City’s retention schedule, develop a trusted system for electronic records retention, and review and enhance the organization of the City’s electronic record repository for easier use by staff and the public. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 60 2023-24 Work Plan and Priorities • Records Management – Work with a consultant to update the Records Management schedule and City retention policy. The City Clerk’s office will continue to manage the City’s records, including converting paper documents into electronic format, adding electronic documents to the City’s document management system, identifying records for final disposition, and preparing documents to be archived. • Open Government – Continue implementing open government efforts, including the Brown Act, Political Reform Act, Public Records Act, and other laws or policies that promote transparent governance. Broaden the number of public records accessible online to the public through the Laserfiche Weblink Repository. • City Contracts – Continue use of contract routing software and research of electronic signature options. • Agenda Workflow and Video Streaming – Identify opportunities to improve the new agenda workflow program that allows for review and approval of staff reports for City Council and Planning Commission meetings. Provide continued staff training on the agenda workflow program. Continue video streaming of City Council and Planning Commission meetings and archiving videos in high definition. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 61 City Clerk's Office Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of time in compliance with Brown Act requirements for noticing City Council meetings: 100%100%100%100%100% b.City Clerk or designee in attendance and recording actions at Regular City Council meetings: 100%100%100%100%100% c.Percentage of Regular City Council Meeting Minutes prepared and submitted to City Manager in time to be scheduled for approval on next Council agenda: 98%98%98%100%100% 2. a.Documents scanned into electronic repository:20,616 7,778 41,550 2,500 20,000 b.Provide efficient and effective Records Management by annually reviewing documents for retention and preparation for destruction: 100%100%100%100%100% 3. a.Percentage of Form 700 filed on time:86%74%90%85%90% b.Percentage of Public Record Requests fulfilled within 10 days:95%95%100%100%100% 4. a.18 16 14 15 15 Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.25 28 29 29 23 2.63 56 58 30 90 3.68 90 63 85 80 4.7 11 11 7 9 Promote transparency of City operations with scheduled noticing, recording, and prompt reporting of City Council meetings and actions. Voluntarily comply with Public Records and Brown Act requirements. Promote resident participation in leadership roles by overseeing recruitment for positions on City Commissions and Committees. Maintain City documents and records to promote open government efforts, and in accordance with State law and City ordinances. Number of boxes of City records processed for disposal: Number of resolutions: Number of ordinances: Number of City Council minutes prepared per year: Number of Commission recruitments and appointments processed: City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 62 PAGE LEFT BLANK INTENTIONALLY City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 63 Public Information Office Program Net Revenue/ (Expenditure) Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Expenditures 500 - Salaries & Benefits (172,885) (213,119) (205,618) (254,900) (234,997) (241,785) 610 - Operating Expenses (5,099) (6,639) (2,499) (9,128) (3,400) (6,250) 640 - Contract Services (54,206) (81,656) (68,519) (100,500) (69,200) (84,000) 650 - Professional Services (7,000) (7,280) - - - - 790 - Internal Services (20,549) (27,590) (28,013) (27,870) (27,870) (34,545) 2401 - Public Information Office Total (259,738) (336,284) (304,649) (392,398) (335,467) (366,580) The Public Information Office is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Public Information Office oversees and maintains many of the City’s lines of communication with residents, including the City’s website, Median Banner Program, social media accounts, monthly e-newsletter, annual Saratogan, email services, videos, surveys, event tabling, flyers, and press releases. The Public Information Office also acts as a liaison between various City departments and the community when it comes to communicating information about projects and events. Key services include: • Serve as the communications link between the City and residents. • Ensure that the community has easy access to important information through various forms of media including print, online, and video. • Build community pride and positive identification with the City among residents. • Increase interest and participation in City services, projects, and activities. • Promote City Council and departmental goals, initiatives, programs, and services. • Assist in creating better internal and external communication. • Enhance the City’s relationship with the news media. 2023-24 Notable Budget Changes • Funding levels for printing services remains strong in anticipation of outreach to Village business owners for the start of the parking lot reconstruction project. 2023-24 Work Plan and Priorities • Community Outreach – The Public Information Office will continue the City’s efforts to improve communications through the use of social media (Facebook, Instagram, Nextdoor, Twitter), online services (email newsletters), as well as through the City’s website and tabling at events. This outreach will enhance the City’s engagement with the community by informing the public of important City-related matters, such as meetings, events, and significant infrastructure projects. • Photo/Video Library – Photographs and videos have become increasingly important in community outreach particularly since the City launched its Instagram account. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 64 Public Information Office Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Produce City Newsletters, annual Saratogan, and monthly Saratoga Source: 14 22 49 49 49 b.Provide information about City news and activities on the City website, Facebook page, and Nextdoor site: Yes Yes Yes Yes Yes c.Send e-mail notifications for Council agendas, Commission meeting agenda/minutes, publication of Saratogan, weekly Sheriff's Office updates and community events updates: 100%100%100%100%100% d.Produce outreach materials, such as the Saratogan, that provide an overview on City operations: Yes Yes Yes Yes Yes Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.2000 2431 2600 2722 2825 2.29 12 43 30 40 3.78 79 271 165 200 4 13 12 10 10 10 Inform residents through proactive communications efforts, including media relations, social media, and other methods of communication. Number of Median Banner Program reservations: Number of banners displayed through Median Banner Program: Events hosted by City: City of Saratoga Facebook Followers: Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 65 Department Overview The Administrative Services Department oversees and administers the City’s financial, budget, human resources, administrative, insurance, and technology operations. As the department’s Finance, Human Resources and Administrative Services programs are centralized, general functions providing administrative, financial, and legally required comprehensive support of citywide operations are included within the General Fund. The program provides centralized and user-specific technology support at varying service levels as requested or required by City departments and is therefore an Internal Service Fund program to better track program costs. Liability and Workers Compensation programs act as cost centers for citywide insurance. Two equipment usage and replacement funds, (Information Technology Equipment Replacement and Office Support) provide technology-related support and hardware for both department and citywide purposes. Administrative Services Programs Net Revenue/ (Expenditure) General Fund Programs* Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Administrative Services (240,973) (262,089) (356,708) (308,027) (298,831) (321,644) Finance (854,446) (976,159) (984,434) (1,197,473) (1,140,635) (1,230,587) Human Resources (437,109) (440,207) (443,961) (520,483) (459,382) (504,838) General Fund Total (1,532,528) (1,678,455) (1,785,103) (2,025,983) (1,898,848) (2,057,069) *Information Technology, Office Support, Risk Management, and Workers’ Compensation Internal Service Funds are self-supporting and excluded from the General Fund presentation. Administrative Services Administrative ServicesBudget, investments, policy development, business systems improvements FinanceFinancial reporting, accounts payable, payroll, accounts receivable Human Resources Labor & employee relations, benefits administration, recruitment, and retention Information Technology Internal Service Cybersecurity, network, hardware, software, audio visual management and support Office Support Internal Service Office equipment leases, copy supplies, postage and centralized records management Risk Management Internal Service Insurance for general, auto and property risk management services Workers Compensation Internal Service Insurance related coverage or work-related illnesses and/or injuries Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 66 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 67 Administrative Services Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 3401 - Administrative Services Expenditures 500 - Salaries & Benefits (207,380) (231,146) (307,772) (255,500) (246,110) (262,430) 610 - Operating Expenses (4,517) (2,808) (3,472) (5,318) (5,206) (6,455) 640 - Contract Services (7,673) (440) (18,074) (19,980) (20,286) (20,000) 790 - Internal Services (21,404) (27,695) (27,391) (27,229) (27,229) (32,759) 3401 - Administrative Services Total (240,973) (262,089) (356,708) (308,027) (298,831) (321,644) The Administrative Services program focuses on policy and procedural development, long-range forecasting and financial communication, strategic and financial planning, coordination and development of the City’s annual budgets, records management and documentation, development and implementation of administration management tools and technology related process improvements, and professional and technical assistance and support to other departments relative to financial and administrative matters. Fiscal Year 2023-24 Work Plan and Priorities • Business System Improvements – The City’s business systems continue to evolve where services are provided with greater reliance on paperless and electronic systems. The program continues to manage immediate and long-term business system improvements through a combination of administrative policy updates, optimization of existing technologies, and training on new systems. Improvements include implementation of a budgeting and forecasting database and a financial system upgrade. • Cloud-Based Microsoft Office 365 – Continue to expand the use of cloud-based software for all documents. This transition will allow access to all documentation, both historical and current, and ensure that staff can fully work from remote locations, if needed, especially in the event of a disaster. • Assessment of Structural Revenues and Expenditures – The City’s 2022-23 budget was the first indication that expenditures were growing faster than revenue and careful planning for future services was necessary as several significant contracts are expiring. The assessment included the cost of services study, and updates to the budgeting system which will include tracking of assets. • Disaster Recovery Planning – In the event of a disaster and cost recovery process, the City’s administrative and financial policies would be subject to a highly critical and restrictive review. These policies are the foundation upon which cost recovery decisions are made. Workload priorities include the development and revision of high priority policies to prepare for this rigorous process should it occur. As cost recovery planning and preparations are extensive, this activity will continue to be a high priority function for many years. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 68 • Purchasing Policies & Procedures – Revise the Purchasing policies and procedures to provide a comprehensive document for purchasing goods and services for the City. Department Administration Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Provide Council and City Management with long-range fiscal planning tools in preparation of annual budget preparation and review processes: Yes Yes Yes Yes Yes b.Keep abreast of fiscal and administrative impacts to the City and communicate pertinent information to City management: Yes Yes Yes Yes Yes c.Protect the City's assets from authorized use through establishing and updating policies and practices that regulate expenditures, review fiscal activities, and secure facilities, vehicles & equipment, and information systems: Yes Yes Yes Yes Yes 2. a.Percent of time actual expenditures do not exceed a fund's approved budget appropriations: 97%92%90%100%100% b.Governmental Finance Officer Association (GFOA) 'Certificate of Achievement of Excellence in Budgeting' awarded to the City: Yes Yes Yes Yes Yes Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.Yes Yes N/A Yes Yes 2.Yes No N/A Yes Yes 3.Yes Yes Yes Yes Yes 4.Yes Yes Yes Yes Yes Deliver fiscal and administrative support to assist Council with understanding and keeping current on the City's financial and operational health in the effort to preserve essential services, maintain City infrastructure, and achieve other Council goals. Present Mid-year Budget Review at annual Council Retreat: Present Five Year forecast at annual Council Retreat: Update fiscal and administrative policies: Research and inform City Management of notable fiscal or administrative matters: Prepare accurate budget workplans in compliance with standard budgeting practices. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 69 Finance Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 3101 - Finance Revenues 440 - Charges for services 51,325 50,380 50,523 60,400 64,251 62,400 450 - Fines & penalties 3,174 3,704 3,954 4,000 2,339 2,300 Expenditures 500 - Salaries & Benefits (733,689) (816,932) (801,496) (934,900) (911,410) (972,780) 610 - Operating Expenses (18,192) (21,835) (27,686) (44,103) (30,634) (43,550) 640 - Contract Services (5,125) (5,600) (16,866) (82,300) (64,611) (46,100) 650 - Professional Services (34,517) (33,030) (43,000) (52,000) (52,000) (52,000) 790 - Internal Services (117,421) (152,845) (149,863) (148,570) (148,570) (180,857) 3101 - Finance Total (854,446) (976,159) (984,434) (1,197,473) (1,140,635) (1,230,587) The Finance program functions to assure both legal and fiscal accountability to the public through responsible, sustainable, and enforceable fiscal policies and practices. Key services include: • Monitor the City’s revenue and expenditures to ensure compliance with the annual operating and capital budget appropriations in accordance with best practices and standards. • Coordinate the annual audit of the City’s financial statements and preparation of the Annual Comprehensive Financial Report. • Maintain the City’s financial information system for record-keeping and reporting of all financial transactions. • Provide Accounts Payable and Payroll disbursement and reporting services; Accounts Receivable invoicing, revenue collection, and cash reconciliation; and Business License Tax processing and auditing services. • Provide accounting, arbitrage reporting, and claim reimbursement services for bond issues. • Provide oversight of procurement functions including purchase order processing, financial tracking of contracts, vendor resolution issues, and proper accounting allocations. Fiscal Year 2023-24 Notable Budget Changes • Budgeted salary and benefit expenditure growth reflects cost of living, and step increases. • Budgeted financial audit expense was sustained at an increased level to provide audit and compliance requirements for federal grants, specifically the $7.2 million award from the American Rescue Plan Act’s and Coronavirus State and Local Fiscal Recovery Funds (ARPA/SLFRF.) Fiscal Year 203-24 Work Plan and Priorities • Transition to a New Professional Auditor. The City Council selected a new independent auditor for the fiscal year ending June 30, 2022. Transition to the auditor in the first year typically results in a higher level of effort for both the auditor and client as the auditor documents the client’s practices. Work is scheduled to begin at the end of June 2023 and continue throughout 2023-24. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 70 • Financial Software Enhancements– Finance continues its software upgrade to the latest version of the City’s Enterprise Resource Planning system, eFinancePlus a CentralSquare product. A focus in 2023-24 will include integration with CentralSquare’s land management software TRAK-iT which the City currently uses and has potential to improve efficiencies if fully integrated with eFinancePlus. • Comprehensive Fee Schedule Update City staff will implement the rates from the comprehensive and extensive cost of services study that was completed in 2022- 23. Updated fees will be effective July 1, 2023. • Financial Records Management – Finalize the conversion of historical and permanent paper financial records into digital format and organize existing digital format files into a readily accessible directory library structure in the City’s Laserfiche program. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 71 Finance Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Annual Financial Statements receive an 'Unmodified Opinion' from the City's independent auditor: Yes Yes Yes Yes Yes b.City's Comprehensive Annual Finance Report meets the Governmental Finance Officer Association (GFOA) 'Certificate of Achievement of Excellence in Financial Reporting' program standards and receives award: Yes Yes Yes Yes Yes 2. a.Ratio of State and County regulatory and financial reports completed and filed by deadlines: 20 of 20 20 of 20 20 of 20 20 of 20 20 of 20 b.Percent of time department revenue and expenditure reports are completed within 30 days of month-end: 100%100%100%100%100% 3. a.Percentage of Accounts Payable invoices processed accurately and on-time: 100%100%100%100%100% b.Percentage of Payroll checks paid accurately and on-time:100%100%100%100%100% c.Percent of time bank statements are reconciled to general ledger within 45 days of month-end: 100%100%100%100%100% 4. a.Uphold (Moody's) highest bond credit rating of Aaa:Yes Yes Yes Yes Yes b.Amount contributed to pay down CalPERS Unfunded Accrued Liability per City's accelerated payment plan: $ 1,000,000 $ 1,000,000 $ 1,013,932 $ 950,000 $ 650,000 c.Meet and maintain Fund Balance Reserves fiscal policy requirements: Yes Yes Yes Yes Yes Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1 876 916 843 586 650 2 2,182 1,863 1,894 2,130 2,000 3 7,165 6,956 6,404 6,842 6,840 4 46 44 39 38 42 5 0 1 3 1 1 6 11 20 15 35 14 7 1,863 1,871 1,899 1,840 1,872 Number of Business Licenses issued annually: Average number of Accounts Payable checks issued weekly: Number of payroll checks, paycheck vouchers, and stipends issued annually: Number of voided checks - due to lost/destroyed checks, printer error, or incorrect invoice information: Number of voided checks - due to processing errors: Number of invoices entered into Accounts Payable system: Number of Cash Receipt batches processed annually: Proactively manage the City's finances to maintain excellent fiscal status. Assure legal and fiscal accountability to the public, in compliance with established accounting standards. Provide financial oversight and administer accounting functions for City funds and accounts. Provide timely and accurate financial reporting within specified deadlines. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 72 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 73 Human Resources Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 3301 - Human Resources Expenditures 500 - Salaries & Benefits (325,097) (367,703) (373,282) (399,300) (354,920) (381,500) 610 - Operating Expenses (16,326) (7,516) (12,183) (23,689) (14,701) (16,715) 640 - Contract Services (8,837) (9,147) (9,358) (17,750) (10,937) (18,350) 650 - Professional Services (51,886) (10,365) (4,195) (35,150) (34,230) (34,500) 790 - Internal Services (34,964) (45,497) (44,943) (44,594) (44,594) (53,773) 3301 - Human Resources Total (437,109) (440,207) (443,961) (520,483) (459,382) (504,838) The Human Resources program offers comprehensive professional, technical, and support services. It also oversees various City programs, including Employee Recognition, Volunteering, Risk Management, Worker’s Compensation, Safety and Wellness, Custodian of Records Department of Justice, and the Department of Motor Vehicles’ Employee Pull Notice (EPN) program. Other key services include: • Implementing a hiring process that attracts, retains, and develops a skilled and dedicated workforce, focused on delivering exceptional internal and external customer service. • Promoting workplace safety through training initiatives and the implementation of best practices to minimize worker’s compensation claims. • Engaging in negotiations and bargaining Memorandums of Understanding (MOUs) with the represented groups. • Ensure compliance with employment and labor laws and regulations, including the establishment and monitoring of personnel practices and policies in alignment with updated employment laws. Fiscal Year 2023-24 Notable Budget Changes • Budgeted salary and benefit expenditure growth reflects cost of living increases. • A reduction in HR consulting fees due to an off year for bargaining with employee Memorandums of Understanding (MOUs). Fiscal Year 2023-24 Work Plan and Priorities • Recruitment and Selection – Efficiently execute recruitment and selection procedures, adhering to predetermined target dates for diverse positions, including regular benefited positions, at-will benefited positions, and temporary at-will non benefited positions. • Staff Training – Efficiently organize and coordinate mandatory training, along with management and supervision workshops, in partnership with LCW consortium. Furthermore, provide a diverse array of professional development training programs to support the continued growth and development of the City’s workforce. • Employee Policies and Procedures – Effectively create new policies and procedures or make appropriate revisions to existing ones, ensuring compliance with all relevant legal requirements. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 74 • Volunteer Program – Boost the visibility and promotion endeavors of the City’s volunteer program, placing particular emphasis on strengthening outreach initiatives to local schools. • Labor Relations – Proficiently manage and monitor the current employee memorandums of understanding (MOUs), ensuring full compliance with all applicable requirements. Human Resources Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Percent of time the Human Resources Division provides reports to outside agencies on or before the deadline: 100%100%100%100%100% 2. a.Manage contracts to ensure compliance with current laws, memoranda of understanding, and City policies and procedures: 100%100%100%100%100% b.Regularly review contracts to ensure cost-effective insurances and benefits that meet the needs of the organization are provided: 100%100%100%100%100% 3. a.Percent of time personnel policies are available on the City's website: 100%100%100%100%100% b. City personnel policies are updated regularly:Yes Yes Yes Yes Yes Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.8 5 7 9 6 2.237 70 122 245 120 3.62 65 68 66 65 4.266 221 220 177 250 5.$74,000 $61,400 $65,300 $64,400 $71,000 6.160 100 200 520 150 7.56 56 56 56 56 Provide fair and proper administrative and personnel decisions that foster a proactive, responsible, and transparent government. Support transparency in government activities through providing timely reporting and/or responses to outside agencies. Provide effective and efficient employee benefit contract administration. Number of meet and confer process hours: Number of training hours offered to employees: Number of recruitments conducted for regular, benefited positions: Number of employment applications received and processed: Total number of employees (benefited, non-benefited, and temporary, part-time and full-time): Value of volunteer hours: Number of participants in Volunteer Saratoga program: Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 75 Information Technology Services The Information Technology Services Program supports the delivery of technology-based services throughout the City’s operations. Core services include the maintenance and support for the City’s information systems, including all aspects associated with desktop computers, network maintenance and support, infrastructure, and system implementation and upgrade support. Other core duties include maintaining the City’s various communication systems, including support for the streaming video technology system, internet, landline, and wireless communication systems, including voicemail, email, and the archiving of communication records. Key program services include: •Maintain and support the City’s information software systems, including the financial system, development permitting system, rental registration system, Laserfiche document management system, agenda management system, video streaming, traffic light systems, digital plan checking, EV charging stations, cloud-hosted City systems, and other specialty systems. •Maintain, support, repair, and upgrade servers. •Maintain and support video streaming, internet, voicemail, wireless and telecommunication systems, and AM radio station. •Maintain, support, repair, upgrade, assist, and educate staff on system usage, desktop computers, laptops, mobile devices, printers, and technology accessories. •Provide ongoing network maintenance, security, and support. •Ensure business continuity and sustainability. •Oversee technology upgrades as well as lead new information technology initiatives. Fiscal Year 2023-24 Notable Budget Changes The budget includes funding for network equipment upgrades which will enhance network data connectivity and improve network security throughout the City’s data network infrastructure. Additional funding will be allocated toward cloud- based licensing and applications to provide scalable solutions that will benefit city services. The City’s fiber optic infrastructure will also be 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted IT Services Revenue 460 - Use of money & property 13,866 9,744 10,866 - - - 480 - Internal Service Charges 575,000 850,000 800,000 794,948 794,948 882,814 488 - Other - - - 7,552 - - Revenue Total 588,866 859,744 810,866 802,500 794,948 882,814 Expenditure 500 - Salaries & Benefits (351,987) (394,681) (412,081) (471,600) (407,720) (453,010) 610 - Operating Expenses (29,558) (36,974) (37,962) (58,159) (44,150) (52,550) 640 - Contract Services (141,747) (142,451) (212,497) (291,303) (208,454) (294,400) 790 - Internal Services (75,275) (76,331) (78,598) (78,150) (78,150) (86,259) Expenditure Total (598,568) (650,436) (741,138) (899,212) (738,474) (886,219) IT Services Total (9,701) 209,308 69,728 (96,712) 56,474 (3,405) Internal Service Fund Net Revenue/ (Expenditure) Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 76 upgraded to accommodate overall network traffic stability. Fiscal Year 2023-24 Work Plan and Priorities • Network Security Assessment –Network security assessments are conducted on a semi-annual basis to ensure the security of the City’s data systems, and to conform to the Payment Card Industry (PCI) Data Security Standards (DSS) and pass compliance audits. The identification of potential security vulnerabilities on City’s data network are addressed on an ongoing basis. • Streamline Services – IT is enhancing online services to include increased capabilities for processing permit applications, scheduling inspections, and making payments. • Cloud Intranet Implementation – Finalize the development of an online cloud Intranet. This new system will provide internal users with a centralized information and form center using cloud capabilities to improve remote operational accessibility and communication efficiency. • Staff Cyber Security Training – Continue providing training videos and quizzes that increase security awareness and allow staff to be more knowledgeable in identifying potential cybersecurity incidents. • Technology & Equipment Management – IT continues to keep abreast of emerging technology information to ensure the City is addressing concerns, issues, and opportunities, and maintaining equipment at appropriate levels to ensure infrastructure is up-to-date, cost-effective, and secure from cyber threats. • Data Network Upgrade – IT staff to enhance and improve the City’s network and data infrastructure from increased network traffic, integration of cloud-based solutions, security standards, and provide additional bandwidth and significant reliability for business continuity. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 77 IT Services Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Percent of time online services are available to the public through the City's website and resource links: 99%99%99%99%99% b.Percent of time network remains available during normal business hours: 99%99%99%99%99% c.Percent of time IT responds/resolves support requests within one working day: 99%99%99%99%99% d.Percent of time IT responds to technology system emergency events: 100%100%100%100%100% 2. a.Number of system upgrades or modifications for which IT staff provided project management support: 8 7 9 11 11 b.Number of new technology systems or equipment for which oversight and support was provided by IT staff: 10 10 11 8 13 3. a. Staff has current knowledge of cybersecurity alerts and product vulnerabilities: Yes Yes Yes Yes Yes b.Number of times per year firewall tested for security:3 2 2 2 2 c.Security standards meet PCI Compliance Requirements:Ongoing Ongoing Ongoing Ongoing Ongoing Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.75 70 77 75 74 2.56 60 66 65 65 3.32 33 32 33 33 4.57 58 54 48 46 5.44 52 52 57 53 6.22 21 29 27 28 7.72 69 67 63 63 8.26 24 24 20 19Number of cell phones serviced and maintained: Number of network servers maintained: Number of network copiers, printers, plotters, scanners, fax machines, and postage machines maintained: Number of system users supported: Support the delivery of technology services to citizens, residents, businesses, other governmental agencies, and internal City departments. Provide technology solution oversight and project management support to improve citywide functions. Number of IT software applications monitored and maintained: Number of laptop/tablet systems maintained: Number of landlines serviced and maintained: Protect the City's technology assets from unauthorized use. Number of desktop systems maintained: Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 78 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 79 IT Equipment Replacement The Information Technology Equipment Replacement Fund Program provides for a consistent level of funding, based on a City IT replacement schedule, for the replacement of desktop computers and monitors, servers, laptops, printers, and various other technology equipment on an ongoing basis. The schedule is used to calculate the annual funding contribution requirement to smooth operating expenses over the years, as well as provide a more accurate cost of operations on an ongoing basis. Key services include: •Accumulate and provide annual funding for technology asset replacement. •Continually assess IT equipment for proper replacement timing. •Identify and procure best solution equipment. Fiscal Year 2023-24 Notable Budget Changes Per Council’s direction, the IT Replacement Fund incorporates all technology systems into the replacement program along with all IT infrastructure and fixed assets. This comprehensive accounting provides a level of detail to more accurately account for all IT operational costs and accumulates replacement funding during the lifetime of the asset while also creating a master IT replacement plan. The service chargeback is $150,000 per year. Allocation charges to each program are calculated by tracking citywide equipment costs and lifespan, and a weighted average cost determines how much is to be set aside each year to have funding available for replacements at the time the equipment’s lifespan is over. Planned replacements for the 2023-24 budget year total $252,650 and are listed in the following IT Equipment Replacement Schedule. 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted IT Equipment Replacement Fund Revenue 480 - Internal Service Charges 150,000 150,000 150,000 149,053 149,053 150,120 488 - Other - - - 947 - - Revenue Total 150,000 150,000 150,000 150,000 149,053 150,120 Expenditure 610 - Operating Expenses (36,641) (17,344) (87,362) (252,650) (99,200) (248,500) Expenditure Total (36,641) (17,344) (87,362) (252,650) (99,200) (248,500) IT Equipment Replacement Fund Total 113,359 132,656 62,638 (102,650) 49,853 (98,380) Internal Service Fund Net Revenue/ (Expenditure) Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 80 2023-24 Equipment Replacement Schedule IT EQUIPMENT 2023-24 Scheduled Tablets 500 Laptop Computers 10,500 Desktop Computers 23,000 Network Servers 80,000 Computer Monitors 6,650 Specialty Printers /Equip 1,500 UPS Battery/Desktop 2,000 UPS Battery/Servers 5,000 Network Equipment 123,500 TOTAL IT EQUIPMENT REPLACEMENT BUDGET 252,650 Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 81 Office Support The Office Support Program accounts for various multi-function equipment leases, postage machine lease, copy supplies, city letterhead, forms and cards, and postage and related fees on a centralized basis. Usage expenses are allocated back to the appropriate department for services and supplies utilized, on a quarterly basis. As this program functions primarily as a centralized funding mechanism, personnel are not assigned to this program. Key services include: •Provide postage and photocopy equipment, as well as other small office equipment, supplies, and services for citywide use. •Monitor service levels and performance of copier and postage machines, maintaining and replacing equipment as needed. •Centralized record management system and services. Fiscal Year 2023-24 Work Plan and Priorities The City’s Multi-Functional Devices (MFD), consisting of photocopying, scanning, and printing functions, are typically leased rather than purchased by the City based on the cost effectiveness of service contracts versus the cost of purchasing equipment. Although leasing does include built-in financing costs, the heavy usage MFDs sustain daily coupled with rapidly advancing technology improvements and cost and value reductions in these types of machines, leasing provides the City with cost efficiency and better ongoing quality over the long term. Additionally, the potential for repeated breakdowns, the cost-of-service contracts and quality issues with older machines makes “lease and replace” a better option than “purchase and retain.” With the expiration of the MFD lease agreement in late 2018, the City entered a new lease effective July 1, 2019. As expected, the new machines are more advanced: they provide higher quality prints, have increased functionality and reliability, and are faster – while lease and service costs decreased. 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Office Support Revenue 440 - Charges for services 8,963 7,762 9,150 - - - 480 - Internal Service Charges 40,000 40,000 35,000 - - - 488 - Other - - - 43,725 33,885 61,120 Revenue Total 48,963 47,762 44,150 43,725 33,885 61,120 Expenditure 610 - Operating Expenses (33,014) (37,329) (31,999) (46,900) (50,000) (48,500) 640 - Contract Services (534) (2,060) (874) - (1,500) (2,500) 650 - Professional Services - - - (45,000) (45,000) (10,000) 770 - Fixed Assets - - - - - - Expenditure Total (33,548) (39,389) (32,873) (91,900) (96,500) (61,000) Office Stores Total 15,415 8,374 11,277 (48,175) (62,615) 120 Internal Service Fund Net Revenue/ (Expenditure) Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 82 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 83 Risk Management The City of Saratoga is insured through a Joint Powers Authority (JPA). PLAN JPA, which consists of Bay Area cities, began operations July 1, 2018 as a pooled city entity to provide insurance coverage to its 28 members agencies. PLAN JPA contracts with a risk management consultant to procure and manage general liability, auto, and property insurance as directed by the JPA Board of Directors which is comprised of one representative of each member agency. The risk management consultant provides PLAN JPA members with policy guidance to effectively identify, analyze, and minimize risks, training to promote best practices, and grant incentives for safety programs. The City of Saratoga’s substantial annual premium reflects a low self-coverage retention level (deductible) of $25,000 per occurrence. The City submits claim information to the third-party administrator (TPA), Sedgwick Insurance Services Group. Sedgwick’s staff follows up with other parties and insurance firms, acting as the City’s insurance agent. Key services include: •Facilitate implementation of risk management best practices to increase public and staff’s safety and reduce the City’s liabilities. •Facilitate claim processing and reimbursements for the City, in coordination with the staff, the City Manager, and the City Attorney. Fiscal Year 2023-24 Notable Budget Changes Insurance premiums continue to climb as coverage becomes more and more expensive, particularly due to the deteriorating market for public entity insurance. Premiums are also dependent on, and reactive to, both the City’s and the entire JPA’s claim loss activity and, with the City’s recent claim loss history, the City is assessed the maximum increase of 30%. The Plan JPA is discussing, with the magnitude with which premiums are increasing, whether a maximum of 30% is adequate or fair. Those 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Liability/Risk Management Revenue 420 - Intergovernmental 2,323 - 1,956 - - - 460 - Use of money & property 8,532 14,291 11,946 - - - 480 - Internal Service Charges 400,000 600,004 750,000 745,264 745,264 1,158,729 488 - Other - - - 66,236 61,500 61,500 Revenue Total 410,855 614,295 763,902 811,500 806,764 1,220,229 Expenditure 500 - Salaries & Benefits (70,083) (78,238) (80,126) (85,900) (81,210) (86,540) 610 - Operating Expenses (131,581) 16,163 (204,355) (161,735) (61,705) (161,705) 640 - Contract Services - - - - - - 650 - Professional Services (278,830) (360,859) (516,860) (660,200) (756,507) (901,502) 790 - Internal Services (5,824) (8,195) (8,144) (8,140) (8,140) (9,981) Expenditure Total (486,318) (431,129) (809,485) (915,974) (907,562) (1,159,728) Liability/Risk Management Fund Total (75,463) 183,166 (45,583) (104,474) (100,798) 60,501 Internal Service Fund Net Revenue/ (Expenditure) Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 84 entities without significant losses are having to assume a larger share of the increase just to pay the premium, whereas those entities who have incurred losses are helped by not exceeding the 30% maximum cap. This cap is expected to continue to be adjusted upward in the next few years. Fiscal Year 2023-24 Work Plan and Priorities • Risk Management – Convene annual meetings with the Risk Management Committee to facilitate a collaborative effort in identifying and mitigating hazards through the City. These meetings will also include conducting a comprehensive claims review to effectively minimize potential losses. Additionally, conduct quarterly Safety Meetings to proactively identify and address safety concerns, thereby promoting a culture of heightened safety awareness. • PLAN JPA Grant Management – Utilize PLAN JPA program grants to attend public agency risk management training and implement best practice safety standards throughout the City. Training opportunities in risk management included conferences such as the Public Administration Risk Management Association [PARMA] conference; the California Joint Powers Association (CAJPA) conference, the Public Risk Management Association [PRIMA] conference, and the training offered by the National Playground Safety Institute (NPSI). Risk Management / Liability Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Contracts reviewed for compliance with Liability Insurance requirements within 48 hours of receipt: 100%100%100%100%100% b.Liability Claims processed within 48 hours of receipt:100%100%100%100%100% Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.4 3 4 4 1 2.10 4 0 1 4 3.7 4 1 7 5 4.4 3 1 1 3 Number of adverse claims submitted: Provide timely, comprehensive Risk Management services to the City to reduce liability and claims costs. Number of liability claims received: Number of adverse claims resolved: Number of liability claims resolved: Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 85 Workers Compensation The City is a member of the Shared Risk Pool (SHARP) Joint Powers Association, a self- funded public agency insurance pool providing workers compensation coverage for four public entities that are too small to self-insure independently. SHARP is liable for City of Saratoga claims up to a per occurrence self- insurance retention (SIR) of $250,000. SHARP members jointly purchase excess insurance to cover claims exceeding the SIR through the Local Agency Workers’ Compensation Excess (LAWCX) Joint Powers Authority. The Human Resources program manages the workers compensation processes according to the California State Department of Industrial Relations (DIR) regulations, serves as the liaison between the City and SHARP’s third-party administrator (TPA) Sedgwick Insurance Services Group, monitoring performance, and providing guidance and direction on behalf of the City, to the TPA. Human Resources staff works with the injured worker in developing a return-to- work plan thereby holding down the workers’ compensation costs. There are three major categories of workers compensation claims: 1) Medical only claims are claims that involve little or no time lost from work (3 days or less) and no disability payments; 2) Indemnity claims, which tend to be more serious injuries, and thus provide payments for lost wages for three or more days lost from work until full recovery after an injury; and 3) Indemnity claims which involve permanent disabilities. Permanent disability benefits (either permanent total disability or permanent partial disability) are paid to workers who never recover their full functions after an injury. The TPA investigates, accepts, or denies claims. Claims are paid based on the payment criteria for the claim. TPA issued payments are funded through SHARP. Key services include: •Minimize the City’s exposure to losses through employee work safety, wellness, and ergonomic training programs. •Manage the workers compensation processes according to the California State DIR regulations. •Serve on the SHARP Board and provide oversight of the TPA. 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Workers Compensation Revenue 420 - Intergovernmental 8,998 6,020 9,072 - - - 480 - Internal Service Charges 175,000 200,000 250,000 248,421 248,421 325,192 488 - Other - - - 11,579 10,000 10,000 Revenue Total 183,998 206,020 259,072 260,000 258,421 335,192 Expenditure 500 - Salaries & Benefits (35,641) (40,030) (41,007) (43,200) (48,640) (52,630) 610 - Operating Expenses (9,110) (6,144) (9,197) (10,255) (10,225) (10,250) 640 - Contract Services (1,274) - (2,101) (1,000) (450) (1,000) 650 - Professional Services (155,444) (175,885) (194,900) (215,000) (202,604) (253,255) 790 - Internal Services (5,434) (7,605) (7,406) (7,401) (7,401) (8,827) Expenditure Total (206,903) (229,665) (254,610) (276,855) (269,320) (325,962) Workers Compensation Fund Total (22,905) (23,645) 4,462 (16,855) (10,899) 9,230 Internal Service Fund Net Revenue/ (Expenditure) Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 86 • Provide mandatory reporting of injury and illness records (OSHA log 300) and recordkeeping. • Review injury and illness trends. • Communicate workplace safety and health practices and ensure workplace incidences (injuries, exposures, or illnesses) are reported, investigated, and that corrective actions are taken promptly. Fiscal Year 2023-24 Notable Budget Changes The annual revenue appropriation for this fund is comprised of internal service chargeback fees and SHARP grants. SHARP grants promote and enhance worker health and safety. In 2023-24, a $10,000 Wellness and Safety Grant will continue to be used for wellness promotion and training, and for safety training specifically related to the Illness and Injury Prevention Program (IIPP), such as the development of safety standards and compliance audit programs. Fiscal Year 2023-24 Work Plan and Priorities • Wellness Program Initiative - Continue Wellness Program Initiative (funded by SHARP Grant) to successfully minimize the exposure to incidents which may cause loss to the City or injury to its employees. • Return to Work, Modified Duty Program – To the extent possible and as needed, HR, department directors, managers, and line supervisors will actively identify appropriate light-duty assignments for injured employees, considering any anticipated restrictions recommended by employee’s physician. • Injury and Illness Prevention Program (IIPP) – Revise the Injury and Illness Prevention Program (IIPP) and coordinate employee training sessions. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 89 Department Overview The Community Development Department guides the physical growth of the City and preserves the community’s quality of life by administrating zoning regulations, providing building and inspection services, code enforcement, arborist services, and ongoing advanced planning activities that maintain the City’s General Plan. The Department also supports the City’s business environment through participation and funding of economic development activities and supports community participation through development review services, commission meeting preparation and support, and public hearings. The Facilities Maintenance Services Program and the Furniture, Fixture and Equipment (FFE) Replacement programs together, are another division within the Community Development Department. Both programs are separate Internal Service Funds. The Facilities Maintenance Division provides city-wide facility custodial and maintenance services to ensure City facilities are safe, clean and usable for employees and general public use. The FFE Replacement program supports Facilities Maintenance activities through the funding replacements of building assets as needed. Community Development Programs Net Revenue/ (Expenditure) General Fund Programs* Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Development Services (549,776) (502,352) (443,905) (714,169) (667,735) (646,271) Advanced Planning (77,283) (34,651) (39,221) (357,376) (441,778) (323,003) Code Compliance (268,094) (273,012) (278,717) (320,150) (316,339) (346,590) Building Inspection 116,270 67,733 872 (171,634) 151,743 245,303 General Fund Total (778,883) (742,282) (760,971) (1,563,329) (1,274,109) (1,070,561) *Facilities Maintenance and Furniture, Fixtures & Equipment Internal Service Funds are self-supporting and excluded from the General Fund presentation. Community Development Development Services Guides the physical growth of the City and preserves the community's quality of life Advanced Planning Guides physical development of the City and developes and updates the City's General Plan Code Compliance Promotes community health, safety, and welfare through zoning, licensing & other regulations as reflected in the City's Municipal Code Building Inspection A regulatory function that protects the community's safety, health, and property rights by ensuring minimum building and zoning standards are met Facilities Maintenance Ensures City facilities are clean, safe and functional for the general public and employee use Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 90 PAGE LEFT BLANK INTENTIONALLY Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 91 Development Services Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 4101 - Development Review Revenues 440 - Charges for services 365,017 508,873 562,601 401,000 457,845 565,740 460 - Use of money & property 723 609 1,711 600 20 500 Expenditures 500 - Salaries & Benefits (725,407) (762,220) (741,204) (834,800) (854,985) (891,702) 610 - Operating Expenses (29,889) (24,093) (26,532) (26,797) (17,693) (25,095) 640 - Contract Services (5,431) (8,921) (10,894) (24,450) (23,200) (23,750) 650 - Professional Services (900) (21,571) (33,310) (35,000) (35,000) (35,000) 790 - Internal Services (153,888) (195,029) (196,276) (194,722) (194,722) (236,964) 4101 - Development Review Total (549,776) (502,352) (443,905) (714,169) (667,735) (646,271) Applicants for building and other development permits are required to comply with City codes, plans, and policies, in order to obtain the Planning Division’s approval of their projects.  To help facilitate development projects, Development Services assists applicants by reviewing, analyzing, and processing their applications.  The process involves an assessment of a project’s consistency and compliance with the City’s Municipal Code, General Plan, and regulations, followed by plan checks and inspections.  Depending on the project, more extensive historical, arboricultural, environmental, or geological reviews and assessments may also be required.  Key services include: Planning Services • Provide on-demand services at front counter, via telephone, and through email requests.  • Provide support to the Planning Commission, Heritage Preservation Commission, and City Council. • Provide staff support to Public Works Department for City construction projects and CIP environmental assessments. • Assist public with private land development questions and information. Review and process the following types of applications: • General Plan and Code Amendments • Architecture and Site, Residential Development, and Subdivisions • Environmental, Variances, Rezoning, and Planned Developments • Certificates of Use and Occupancy • Sign, Banner, and Conditional Use Permits • Tree removal and “After the Fact” tree removal permits Arborist Services • Assist planners with review of project designs with respect to trees. • Provide specifications to residents and contractors so that trees are protected during construction. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 92 •Inspect projects prior to, during, and following construction to ensure adequate protection of trees. •Provide information to the public through phone and email for general information on tree pruning, selection, care, protection, and tree removal criteria. Fiscal Year 2023-24 Notable Budget Changes Contract Planning Services funding will continue to be utilized to coordinate complex projects and specialty software will be implemented for online project application and permit processing. As forecasted, Development activity is expected to remain constant from previous year. Nearly all of the development processes in Community Development are now completed online. Increased overall cost for specialty software and credit card processing fees have been incorporated into the departmental operating budget. Fiscal Year 23-24 Work Plan and Priorities •Saratoga Retirement Community – Work continues on the application for Design Review and Planned Combined (PC) District to construct three new buildings containing 52 senior living units on the 37-acre property. •House Family Vineyards Conditional Use Permit – House Family Vineyards applied for a Conditional Use Permit to operate a winery at their property located at the end of Old Oak Way. The proposed project also includes construction of a subterranean (underground) wine cave and fire access road, Design Review for a tasting deck, and an open space easement exchange. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 93 Development Services Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Review planning applications and provide written comments deeming them complete or incomplete, within 30 days: 100%100%100%100%100% b.Review all zone clearances from the Building Division within 2 weeks: 100%97%100%100%100% 2. a.100%100%100%100%100% b.1%1%1%1%1% c.Percentage of applications appealed to the Planning Commission or City Council: 1%1%1%1%1% d.100%100%100%100%100% 3. a.Percent of notices sent within 10 days of Planning Commission meetings: 100%100%100%100%100% Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.358 567 582 597 580 2.413 490 465 549 470 3.60 105 103 119 100 4.12 11 12 11 12 5.3 4 5 2 3 6.9 7 16 10 3 7.9 9 8 4 5 8.Development applications requiring geological review:20 37 43 39 40 Number of Planning Commission Study Sessions: Number of public input meetings for citywide programs: Number of complex projects (General Plan, amendments/ rezonings, planned developments, environmental review): Number of planning projects processed: Number of tree removal permits processed: Number of Arborist plan reviews: Number of Planning Commission Hearings: Facilitate the development of land and structure consistent with City codes, plans, and policies. Percentage of applications continued at the request of the Planning Commission: Percentage of applications upheld by the City Council: Analyze and process development applications efficiently and effectively. Process applications to Planning Commission within an average of 4 weeks of deeming the application complete: Enhance community awareness of land use projects. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 94 PAGE LEFT BLANK INTENTIONALLY Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 95 Advanced Planning Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 4102 – Advanced Planning Revenues 440 – Charges for services 87,936 146,348 151,452 100,000 - - Expenditures 500 – Salaries & Benefits (143,833) (155,160) (164,621) (179,900) (164,420) (184,313) 610 – Operating Expenses (2,020) (440) (490) (2,118) (2,000) (2,000) 640 – Contract Services - - - - - - 650 – Professional Services - - - - - (105,000) 790 – Internal Services (19,365) (25,399) (25,562) (25,358) (25,358) (31,690) 900 – Transfer to Capital Program - - - (250,000) (250,000) - 4102 – Advanced Planning Total (77,283) (34,651) (39,221) (357,376) (441,778) (323,003) Advanced Planning Services focus on guiding the physical development of the City by developing and updating the City’s standards, regulations, Specific Plans, and General Plan. The City’s General Plan is an adopted statement of policy for the physical development of the community. As such, it includes the following elements: Land Use, Housing, Circulation, Safety, Noise, Open Space, and Conservation. The City also establishes specific plans to provide additional guidance for future land use development in the plan area, with aspects such as detailed land use, design guidelines, and implementation strategies. In order to keep the plans current, at a minimum, one element of the General Plan and/or a Specific Plan is to be updated each year. Key services include: • Coordinate preparation of General Plan Element Updates. • Complete the 2023-2031 Housing Element Update. • Maintain and apply General Plan and Specific Plan updates to development processes. • Develop administrative policies, plans, and ordinances in coordination with Advanced Planning updates. • Prepare for the Department of Housing and Community Development annual progress report on Housing Element implementation. Fiscal Year 2023-24 Notable Changes Staff workplan activities in 2023-24 will continue to focus on completing the General Plan and Housing Element Updates. Staff will continue to assist the Heritage Preservation Commission to update the Heritage Resource Inventory. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 96 Fiscal Year 2023-24 Work Plan and Priorities •Housing Element Update – Every eight years, California municipalities must update their Housing Element, which is a required component of the General Plan. The City will submit a draft Housing Element to the State for review with a deadline for adoption by January 2024. •General Plan Update - Due to the substantial increase in the number of housing units that Saratoga will be required to plan for in RHNA 6, the schedule of the General Plan 2040 update was revised to align with the Housing Element. The General Plan update is expected to be completed this year, concurrent with the Housing Element update. •Mixed Use Districts Regulations and Multifamily Objective Design Standards - The City will be creating new Mixed Use zoning districts as part of the Housing Element Update. The rezoning program will consist of three new zoning districts: Mixed Use” (MU), “Mixed Use High Density” (MU/HD), and “Mixed Use Very High Density” (MU/VHD). The City Code will be amended to include new development standards for the MU zoning districts. In addition, Senate Bill 35 created a streamlined and ministerial approval process for qualifying housing projects and requires local jurisdictions to provide objective standards for the expedited review and approval of eligible projects. In addition, the City will be creating Mixed Use zoning districts as part of the Housing Element Update so the Objective Design Standards will provide applicants with a clear set of requirements for mixed-use and multi-family residential project design. •Accessory Dwelling Units (ADU) Ordinance - The State legislature recently amended laws (SB 897 and AB 2221) to reduce barrier and further promote the development of Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU). Staff will bring forth proposed amendments to the City Code to comply with state law. •Heritage Preservation Commission –As liaison to the Heritage Preservation Commission, staff will continue to assist the HPC to implement their programs including the Heritage Resource Inventory, the Saratoga Avenue (Heritage Lane) Inventory, Public Outreach and the Point of Interest Markers program. •Annual Code Updates – Each year, staff identifies sections of the City Code that need updating to remove inconsistences, code which is difficult to interpret, or code requiring revisions to reflect changes in state law (e.g. zoning definitions). Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 97 Advanced Planning Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Five of seven General Plan were updated within last eight years:Yes Yes Yes Yes Yes b.Annual review of Housing Element submitted to State by deadline: Yes Yes Yes Yes Yes 2. a.Housing Element:Yes Yes Yes Yes Yes b.Land Use Element:Yes Yes Yes Yes Yes c.Circulation and Transportation Element:Yes Yes Yes Yes Yes d.Conservation Element:Yes Yes Yes Yes Yes e.Open Space Element:Yes Yes Yes Yes Yes f.Noise Element:Yes Yes Yes Yes Yes g.Safety Element:Yes Yes Yes Yes Yes Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.5 1 3 0 1 2.0 0 0 0 5 3.0 0 0 0 0 4.1 0 0 0 0 Number of ordinances completed (multiple section updates): General Plan Elements updated: Number of General Plan amendments requested: Annexation applications in process: General Plan complies with State of California requirements. General Plan elements are updated within the last eight years in order to administer and enforce development policies, and thereby maintain a high quality of life for the community. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 98 PAGE LEFT BLANK INTENTIONALLY Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 99 Code Compliance Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 4103 - Code Compliance Revenues 440 - Charges for services 6,375 5,560 10,325 6,300 7,110 7,400 450 - Fines & penalties 12,069 25,243 (1,068) - - - Expenditures 500 - Salaries & Benefits (224,268) (244,373) (243,205) (274,200) (278,578) (289,202) 610 - Operating Expenses (1,281) (2,065) (1,624) (2,318) (1,939) (2,700) 640 - Contract Services - - - - - - 650 - Professional Services (30,429) (16,566) - (7,000) - (7,000) 790 - Internal Services (30,561) (40,811) (43,145) (42,932) (42,932) (55,088) 4103 - Code Compliance Total (268,094) (273,012) (278,717) (320,150) (316,339) (346,590) The City’s Code Compliance Program supports community health, safety, and welfare through zoning, planning, business licensing, and other regulations as reflected in the City’s Municipal Code. Compliance is achieved through education, voluntary compliance, or direct enforcement of laws and municipal codes. The Code Compliance Officer investigates reported violations, conducts field inspections, gathers supporting evidence, maintains case files and, as necessary, prepares reports regarding violations. For code compliance cases which are not resolved through staff efforts or mediation, and a fine or enforcement action is issued, the City may need to utilize the services of a Hearing Officer, a contract attorney compensated for hours of service, who will conduct a hearing if an appeal is requested for a code enforcement action issued by the City. The attorney is an impartial judge and does not have any other connection or working relationship with the City. Other key services in this division include: • Issue Special Event and Noise Exception Permits. • Administer masseuse and solicitor permit programs. • Enforce the City Municipal Code and continue with outreach and education efforts to increase the awareness of residents, businesses, and property owners about the City’s Municipal Code regulations. • Receive and maintain status on all violation complaints. Respond to, investigate, and abate legitimate complaints. • Resolve complex code and zoning violations and administer citation appeals. • Administer the Weed and Brush Abatement Program. • Assist the Building Division with un-permitted construction in progress and other Building Code violations. • Assist all other City Departments, the County Fire Department and the Sheriff’s Office. Fiscal Year 2023-24 Notable Budget Changes Expenditures for the County’s weed abatement program is no longer needed, as effective September 2022, this program is managed internally by the Code Compliance Officer. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 100 Code Compliance revenues are limited to fees from the administration of various special activity permits while the expenditures consist of staff time, a minimal amount of operation funding for materials and supplies, and contract service funding for the Hearing Officer, and backup services. Beginning July 1, 2023 Code Compliance/Building Division will assess addition permit fees for unpermitted construction code enforcement cases. Fiscal Year 2023-24 Work Plan and Priorities • Abatement Priorities – Staff will continue to provide enforcement of the Temporary Off- Site Sign program and the Leaf Blower ordinance. Efforts to prioritize responses to code compliance cases will be based on the Council’s adopted priorities and procedures. • Program Priorities – Development of new code compliance procedures to streamline work processes and improve workflow between Building, Planning and Code Compliance divisions. • Weed and Brush Abatement Program – The Code Compliance Officer will manage the Program and continue to issue notices, inspect properties for compliance, and follow up with enforcement to abate overgrown vegetation, and assess costs and penalties against non-compliant property owners. Code Compliance Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a. Percentage of complaints receiving a response within 48 hours of receipt: 90%90%90%90%90% b. Average open to close cycle time for formal complaints:4 weeks 4 weeks 4 weeks 4 weeks 4 weeks c.Percent of violations resolved through voluntary compliance:90%90%90%90%85% 2. a.Annual number of Solicitor Permits issued:0 0 0 1 0 b.Annual number of Noise Exemption permits issued:23 11 47 35 45 Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.240 260 218 141 200 2.1 0 0 0 3 3.0 3 1 0 2 4.230 178 186 109 150 Cases requiring City Attorney review: Total number of Administrative Citations: Ensure code compliance staff is responsive and accountable to the community. Ensure compliance with City regulations for permitted activities. Annual number of new code enforcement cases: Annual number of Code Enforcement cases investigated or mitigated/closed: Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 101 Building and Inspection Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 4201 - Building Inspection Revenues 420 - Intergovernmental 10,000 4,343 - - - - 440 - Charges for services 1,283,732 1,449,159 1,402,759 1,528,250 1,593,000 1,867,470 Expenditures 500 - Salaries & Benefits (909,836) (979,258) (1,000,026) (1,127,500) (1,012,447) (1,100,722) 610 - Operating Expenses (58,273) (57,259) (65,746) (87,444) (84,790) (88,090) 640 - Contract Services (36,277) (127,697) (88,649) (239,170) (98,250) (98,500) 790 - Internal Services (173,076) (221,553) (247,467) (245,770) (245,770) (334,855) 4201 - Building Inspection Total 116,270 67,733 872 (171,634) 151,743 245,303 The Building & Inspection Services Division is a regulatory function that protects the community’s safety, health, and property rights by ensuring minimum building and zoning standards are met. The City’s development ordinances and standards regulate the design, construction, quality of materials, use and occupancy of buildings, as well as the location and maintenance of all buildings within the City of Saratoga. Staff assists applicants with information concerning building regulations, disability access regulations, and other state and local ordinances, and provides plan check services in compliance with Uniform Building Codes. Staff also maintains permit tracking and plan check systems, inspects commercial and residential buildings under construction, and reviews grading plans and performs grading inspections for construction projects with significant earthwork activity. The ability to expedite plan check response time and issue over-the-counter permits improve customer service; therefore, the Division has implemented improvements that focus on utilizing technologies, standardizing processes, training staff, and attaining certifications. Key services include: Counter Services • Provide construction and zoning code information to developers, contractors, architects, engineers, homeowners, and the general public. • Maintain permit tracking and building permit system information. • Provide business license information and process new licenses and existing license renewals. Plan Check Services • Perform residential and commercial building, structural, and site plan reviews under California Building Code guidelines, State regulations, and City ordinances. • Provide building code information to applicants. Inspection Services • Perform on-site inspections of buildings and structures under construction. • Investigate housing code violations. • Coordinate building permit applications with other departments and agencies. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 102 On-line Services • Provide step-by-step processes for obtaining the majority of City permits. • Allow residents and contractors the ability to apply for and pay for permits online. • Provide a means for uploading applications, plans, and supporting documents. • Provide construction and zoning code information to developers, contractors, architects, engineers, homeowners, and the general public via the Camino portal. Fiscal Year 2023-24 Notable Budget Changes The Building Division is expecting revenue activity to remain constant with the previous year while expenditures for Inspection Services were increased to a more realistic level to cover contract workers that fill in during staff absences. SB 379, the Solar Access Act, requires cities and counties to streamline the solar permitting process to help reduce overall project times and costs for new solar rooftop installations. The City received a $40,000 grant from the California Energy Commission to help implement the new online rooftop Solar Permitting app that would integrate with TRAKiT, CDD’s permit software, along with staff training. The solar app is expected to be operational by September 30, 2024. Fiscal Year 2023-24 Work Plan and Priorities • Electronic Plan and Permit Processing – Refine and promote online services using the Camino portal which provides web-based planning and building Division submittals. • SB 379 Solar Access Act – Implement the new online rooftop solar permitting program. Building & Inspection Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of inspections delivered within 2 business days of request: 99%99%99%99%99% b.Percentage of initial plan checks completed within 45 days of receipt: 99%96%99%99%99% Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1 1,858 1,881 2,320 1,937 1,850 2.450 400 450 450 450 3.6,027 6,899 7,156 8,029 7,000 4.610 560 498 988 700 5.$80 $103 $113 $191 $115Dollar value of construction permitted (in $Millions): Maintain staff's responsiveness and accountability to the community. Number of Building Division permits issued: Number of Over-the-Counter Plan Checks for Remodels: Number of inspections requested: Number of building plan checks completed: Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 103 Facility Maintenance The Facility Maintenance Division is a citywide support function for custodial, maintenance, repair services, and building improvements for all facilities at the Civic Center, Prospect Center, and Museum Park, and supports the needs of the tenants of City leased buildings as defined in lease agreements (e.g., Senior Center). The Facility Maintenance staff ensures the City’s facilities are in a clean, safe, and usable condition at all times for employees and the general public. Regular preventative maintenance services are on a schedule, which include items such as painting, roof maintenance, pest control, emergency generator testing and upkeep, HVAC, and alarm servicing. Other maintenance repair services such as electrical and plumbing repairs are contractually provided on an as-needed basis. The Facility Maintenance program also funds citywide facility expenses such as water, sewer, electricity and natural gas utilities, maintenance, and janitorial supplies and manages all city owned building security and access (keys and access cards). Facility Maintenance is accounted for as an Internal Service Fund program, with cost allocations based on service/support levels. Internal service charges represent costs associated for custodial and building maintenance. Internal Service Funds recognize costs on an ongoing basis through stabilized annual charges based on long-term operational and asset replacement costs. This averaging of costs helps to maintain fiscal sustainability. Due to building size and public use factors, the majority of the Facility Program’s service/support costs and functions focus on non-staff buildings such as the Civic Theater, Community and Senior Centers, Saratoga Prospect Center, and Museum Park buildings. The Facility Maintenance’s program cost to support janitorial, repair, and maintenance functions is allocated to operational programs based primarily on square footage percentages the program uses, with the 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Facility Maintenance Revenue 460 - Use of money & property 2,199 - 1,959 - - - 480 - Internal Service Charges 925,000 900,000 950,000 916,476 916,476 1,196,640 488 - Other - - - 13,324 - - Revenue Total 927,199 900,000 951,959 929,800 916,476 1,196,640 Expenditure 500 - Salaries & Benefits (397,338) (423,066) (415,182) (456,700) (442,790) (598,270) 610 - Operating Expenses (184,436) (137,336) (164,986) (212,884) (189,805) (228,125) 640 - Contract Services (160,810) (133,890) (139,960) (220,000) (181,800) (220,500) 650 - Professional Services - - - - (1,000) - 790 - Internal Services (126,536) (141,961) (151,858) (151,435) (151,435) (182,888) Expenditure Total (869,121) (836,254) (871,987) (1,041,019) (966,830) (1,229,783) Facility Maintenance Total 58,079 63,746 79,972 (111,219) (50,354) (33,143) Internal Service Fund Net Revenue/ (Expenditure) Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 104 public common area usage charged to the Non- Departmental Section’s General Administration Program. Key services include: • Provide facilities that are clean, safe, and usable for the public and City employees. • Follow environmentally friendly purchasing policies, sustainability, and green building practices. • Maintain facilities on a regular schedule to provide efficient and cost-effective maintenance. Fiscal Year 2023-24 Notable Budget Changes LED lights will continue to be installed throughout the City buildings when lighting replacement is needed. This project will be ongoing until all lights are updated with LED technology. Fiscal Year 2023-24 Work Plan and Priorities • Facility and Infrastructure Project Management – Facility staff will oversee planned facility improvement projects to ensure City facilities are clean, safe, and maintained according to best practices. • Environmental Sustainability - Staff will continue ongoing environmentally friendly and energy savings projects such as installing energy saving HVAC units in City buildings and maintaining EV charging stations in the City. Facility Maintenance Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of surveyed visitors who agreed the facilities are clean, comfortable, and safe: 100%100%100%100%100% 2. a.Quarterly preventative maintenance of all City HVAC systems:100%100%100%100%100% b.Six-days per week cleaning of all City facilities including emptying trash, vacuuming, mopping, and cleaning windows, etc.: 100%100%100%100%100% Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.3,500 3,500 3,500 3,500 3,500 2.11 11 11 11 11 3.4 4 4 4 4 4.34 15 7 20 36 Number of work orders completed: Setup and takedown of Council Chamber dias: Maintain AED units on a monthly basis: Refinish wood floors annually: Provide safe, functional, and attractive City buildings for the enjoyment of the public and to house the provision of City services. Provide safe and functional, City buildings using environmentally sensitive and cost-effective practices. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 105 Furniture, Fixtures & Equipment The Facility FFE Replacement Internal Service Fund (ISF) Program was added in recognition that the replacement of facility components is ongoing and should be treated similarly to how the City plans for technology equipment and vehicle replacements. The use of a steady annual charge helps to smooth the irregular cost and timing of large facility equipment purchases over the years, as well as provide a more accurate cost of operations on an ongoing basis. The two direct General Fund allocations are in recognition of the program’s functions – Facility Rental charges are related to rent producing assets, and non-departmental charges are for general city-wide use that is not specific to City services. The ISF Facility Maintenance program receives an allocation that is subsequently reallocated out to the General Fund operational programs through the Building Maintenance allocation. Initially, furniture, fixtures, and equipment are purchased through a requesting department’s budget, or as part of a capital project for general citywide assets. If the facility asset will be replaced on an ongoing basis, the new equipment is added to the department’s replacement schedule list. The addition of the FFE replacement program stabilizes funding requirements by accumulating funds annually over an asset’s lifespan to both ensure funding is available when needed, and to more fully recognize appropriate overhead costs. This practice allows the City to replace facility FFEs on a scheduled basis, with built-in flexibility for unexpected timeframes or costs. Key services include: •Identify and track facility furniture, fixtures, and equipment. •Accumulate and provide annual funding for asset replacements. •Assess condition of furniture, fixtures, and equipment for proper replacement timing. •Identify and procure best solution equipment. Fiscal Year 2023-24 Notable Budget Changes The annual funding charge-backs are set at $200,000 with the expectation that this level of funding will provide adequate resources to purchase and replace identified facility assets for many years. The long-term replacement plan is reassessed each year to include re-assessed 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Facility FFE Replacement Revenue 480 - Internal Service Charges 200,000 200,000 200,000 198,737 198,737 200,000 488 - Other - - - 1,263 - - Revenue Total 200,000 200,000 200,000 200,000 198,737 200,000 Expenditure 770 - Fixed Assets (50,924) (30,735) (18,824) (270,130) (103,457) (280,610) 790 - Internal Services - - (41,639) - -- Expenditure Total (50,924) (30,735) (60,463) (270,130) (103,457) (280,610) Facility FFE Replacement Fund Total 149,076 169,265 139,537 (70,130) 95,280 (80,610) Internal Service Fund Net Revenue/ (Expenditure) Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 106 replacement cost values, delays or expedited replacements, newly identified assets, or the addition of new assets. Planned replacements for the 2023-24 budget year total $280,610 and are listed in the following FFE Equipment Replacement Schedule. FURNITURE, FIXTURES & EQUIPMENT 2023-24 REPLACEMENT SCHEDULE Location Asset Est. Useful Life Est. Cost City Hall HVAC (IT) HVAC Unit 7A-IT 15 6,720 Linda Callon Conf. Room HD Projector System 10 16,900 City Hall Fire Alarms 25 26,700 Civic Theater/Council Chambers Theater/Council Chambers Restrooms (2 Ladies/Men) 60 16,000 Theater/Council Chambers Fire Alarm System 20 40,000 Theater/Council Chambers Unit #1 25 43,750 Theater/Council Chambers Condensing Unit#1 25 67,500 Corporation Yard Security Camera System Security Camera 10 10,640 Prospect Center Friendship Hall Prospect Ctr Projector System 10 16,900 Portables Senior Portable Flooring 25 13,500 Senior Portable HVAC Unit#1 23 11,000 Senior Portable HVAC Unit#2 23 11,000 Total FFE Replacement Funding $280,610 Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 107 Department Overview The Public Works Department oversees engineering and capital project functions; reviews the public’s development plans for impacts to roadways and public right of ways; maintains the City’s parks, trails, medians, right-of-ways, grounds, bridges, and landscape districts; repairs and maintains the roadway systems, including streets, traffic and pedestrian signals, lighting, and storm drains; provides vehicle maintenance oversight and minor maintenance; and ensures the City’s environmental responsibilities are fulfilled, including externally- driven responsibilities under the Clean Water and Solid Waste programs. The Public Works Department also supports the Traffic Safety Commission, the Pedestrian, Equestrian, Bicycle and Trails Advisory Committee, and facilitates community volunteer efforts such as the Village Gardeners and various Scout projects. Public Works consists of five main operational programs that provide information and outreach to the City’s residents, businesses, and the public regarding the department’s activities and infrastructure projects that may affect them and provides resources that are available to the community. Additionally, the department oversees two internal support programs: Equipment Maintenance and Equipment Replacement; and 26 separately funded Landscape and Lighting Assessment Zones. Public Works General Engineering Provides oversight for the City's engineering activities not related to private development Development Engineering Provides services for private development projects to ensure accordance with City Standards Environmental Services Oversees City's solid waste programs and promotes environmental services Streets & Stormdrains Provides ongoing mtc to City's public infrastructure including roadways Parks & Landscape Maintenance Provides well maintained landscape & turf to City Parks and open spaces Equipment Maintenance Ensures all vehicles and equipment are safe and function well Landscape & Lighting Districts 26 districts Capital Improvement Progam City prioritized workplan for capital projects Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 108 Public Works Programs Net Revenue/ (Expenditure) General Fund Programs* Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted General Engineering (549,942) (491,964) (339,510) (844,568) (814,874) (972,526) Development Engineering (160,533) (68,160) (76,818) (161,245) (156,808) (183,443) Environmental Services (619,303) (699,940) (695,312) (784,425) (909,556) (915,447) Streets and Storm Drains (1,501,604) (1,563,605) (1,727,532) (1,915,616) (1,991,185) (2,209,035) Parks & Landscape Maintenance (2,375,513) (2,696,509) (2,761,665) (2,964,007) (2,834,731) (3,173,230) General Fund Total (5,206,895) (5,520,178) (5,600,837) (6,669,861) (6,707,154) (7,453,681) * Vehicle & Equipment Maintenance and Vehicle & Equipment Replacement Internal Service Funds and Lighting and Landscape Districts are self-supporting and excluded from the General Fund presentation. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 109 General Engineering Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 5101 - General Engineering Revenues 440 - Charges for services 417,952 680,429 807,996 500,000 500,325 500,250 Expenditures 500 - Salaries & Benefits (712,488) (891,332) (888,346) (1,031,400) (1,015,870) (1,115,650) 610 - Operating Expenses (34,544) (34,162) (36,909) (41,484) (38,745) (42,160) 640 - Contract Services (8,709) (14,006) (8,776) (28,250) (24,250) (38,950) 650 - Professional Services (110,423) (115,157) (95,436) (127,100) (120,000) (127,000) 790 - Internal Services (101,730) (117,735) (118,040) (116,334) (116,334) (149,016) 5101 - General Engineering Total (549,942) (491,964) (339,510) (844,568) (814,874) (972,526) The General Engineering Program provides oversight for the City’s engineering activities not related to private development. This includes the design, management, and administration of the Capital Improvement Plan to improve the City’s public infrastructure (e.g. streets, storm drains, sidewalks, signalized intersections, parks, and medians) with an emphasis on delivering capital projects within planned schedules and budgets and department staff applying for annual grant opportunities. General Engineering operations also include traffic management, the development of Geographic Information System (GIS) data to manage the City’s infrastructure, and processing annexation requests, right-of-way, and property boundary issues. Key services include: • Provide assistance and information to the public regarding engineering services. • Provide administrative and engineering support services for capital improvement projects including preparing bids and contracts. • Perform traffic engineering analyses and manage traffic concerns. • Maintain current statistics on traffic accidents, traffic volumes, speeds, and street mileage, and prepare annual reports to state and local agencies, as required. • Review requests and issue encroachment permits to residents and utility companies. • Review and issue oversize load permits. • Process document imaging of department documents. 2023-24 Notable Budget Changes The revenue stream in 2023-24 is expected to decrease due to reduced activity in utility company work. The expenditure budget was increased for City Traffic Engineering Services. 2023-24 Work Plan and Priorities • Capital Improvement Program Oversight – Provide plans, specifications, estimates and right-of-way documents, coordinate consultants, and administer contracts. Fiscal Year 2023-24 CIP Project oversight includes Quito Road Bridges replacement, the El Quito Park Pickleball Courts, the Citywide Stormdrain Masterplan, the Quito Road Sidewalk Improvements, and the Annual Pavement Management Program. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 110 • Traffic Management – Receive resident traffic safety concerns and investigate by means of the city’s Traffic Engineer and Traffic Safety Commission as needed. With approximately 1,800 deputy hours focused on traffic control services, the Sheriff works with the City’s schools and the Traffic Safety Committee to improve traffic management around school activity. Future traffic management projects for the upcoming year will include roadway markings for traffic calming on various streets by direction of the Commission. Larger projects include the installation of bike lanes on Saratoga Avenue and Allendale Avenue, and a new speed hump on Reid Lane. • Laserfiche Document Management Project – Staff will continue to prepare the backlog of Public Works documents for scanning services, and when returned, will assess the quality of the files to ensure they are legible, complete, and correctly scanned and indexed. General Engineering Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Respond to traffic safety concerns from residents:100%100%100%100%100% b. Utilize traffic engineer experts to identify solutions to potential roadway hazards: Yes Yes Yes Yes yes 2. a.Issue encroachment permits for residential projects within 3 weeks of receipt of application: 100%100%100%100%100% b.Maintain average pavement condition index at a rating of 70 or above: Yes No No No No c. Establish best practices roadway maintenance plans, such as for resurfacing, pothole repairs, tree pruning, and weed control: Yes Yes Yes Yes yes d.Respond to road hazard complaints within 48 hours of notification: 100%100%100%100%100% Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.24 40 30 35 30 2.300 430 468 513 400 3.4 5 7 5 5 4.49 140 110 145 100 Increase roadway safety through effective traffic management practices. Number of traffic concerns investigated and reviewed by Traffic Safety Committee: Number of encroachment permits issued: Number of contracts executed: Number of bids issued: Maintain safe, well-functioning roadway infrastructure. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 111 Development Engineering Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 5102 – Engineering Development Revenues 440 - Charges for services 60,247 85,732 78,450 - - - Expenditures 500 - Salaries & Benefits (167,725) (87,736) (86,833) (93,200) (89,030) (98,360) 610 - Operating Expenses (1,021) (475) (304) (1,045) (750) (750) 640 - Contract Services - - (289) (200) (228) (250) 650 - Professional Services (2,500) (2,390) (2,670) (2,500) (2,500) (2,500) 790 - Internal Services (49,534) (63,292) (65,171) (64,300) (64,300) (81,583) 5102 - Engineering Development Total (160,533) (68,160) (76,818) (161,245) (156,808) (183,443) The Development Engineering Program, in coordination with the City’s Community Development Department, provides services for private development projects to ensure they are constructed in accordance with City standards. Development Engineering Services includes reviewing engineering plans and specifications, subdivision maps, and lot line adjustments; issuing certificates of compliance; and controlling encroachments in the public right-of-way connected to private developments ensuring compliance with the City’s NPDES permit. This program seeks to fully recover the costs associated with development services. Key services include: • Review and comment on Design Reviews and Tentative Map applications. • Review initial improvement plan submittals. • Issue encroachment permits for single family developments. 2023-24 Notable Budget Changes Fiscal Year 2023-24 revenues are based on a small amount of development projects. This is due to the City of Saratoga being mostly built- out. Fiscal Year 20223-24 budgeted expenditures reflect a shift of staff time from development oversight to general engineering program work. With Community Development staff providing more of the development services, engineering staff is now freed up to focus on City infrastructure projects. The remainder of program expenditures reflect minimal operational costs other than staff salary and internal service charges. Operational expenses include a small amount of office supplies and external civil engineering services. 2023-24 Work Plan and Priorities • Development Review – Review applications for compliance with City, State and Federal laws for public improvements in the city’s right-of-way. Process subdivision development plans, reviewing for traffic impacts. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 112 Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 113 Environmental Services Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 5103 – Environmental Services Revenues 413 - Other Taxes 100,000 100,000 100,000 100,000 59,000 59,000 416 - Franchises & Surcharges 73,701 127,593 149,086 159,470 65,000 65,000 420 - Intergovernmental 31,616 31,646 28,257 20,000 13,000 13,000 Expenditures 500 - Salaries & Benefits (204,129) (291,867) (311,347) (318,600) (315,180) (342,490) 610 - Operating Expenses (321,017) (374,060) (389,409) (423,645) (419,735) (434,583) 640 - Contract Services (240,900) (244,721) (239,825) (285,000) (275,000) (230,000) 650 - Professional Services (33,406) (17,344) - (5,000) (4,991) (5,000) 790 - Internal Services (25,168) (31,187) (32,076) (31,650) (31,650) (40,374) 5103 - Environmental Services Total (619,303) (699,940) (695,312) (784,425) (909,556) (915,447) The City of Saratoga’s Environmental Services Program supports an Environmental Program in the Public Works Department that oversees the following three areas relating to sustainability: solid waste management; clean water compliance; and clean energy. The level of service delivery to community members and agency compliance for these three areas are mostly guided by state laws and regional requirements. Key services include: • Provide street sweeping services for the City’s streets and parking lots. • Provide storm drain cleaning. • Manage the City’s Clean Water Program to fulfill the City’s requirements of the NPDES permit. • Manage the City’s agreements with the West Valley solid waste Joint Powers Authority and the hauler to ensure that community members are receiving quality integrated waste management collection services and paying reasonable service rates. • Monitor sustainability programs that are offered in other cities to ensure that the same programs are offered to Saratoga community members. 2023-24 Notable Budget Changes Saratoga’s share of the Solid Waste JPA assessment will increase by approximately $193,208 this fiscal year. The increase is due to additional general services costs for implementation of the City’s Mandatory Organic Waste Disposal Reduction Ordinance mandated by SB 1383, Collection Contract Implementation, Franchise Fee Study, C&D Program Development, Street Sweeping Program, and for Development and Grant Administration. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 114 2023-24 Work Plan and Priorities • Clean Water Program –Continue to work with West Valley Clean Water Program Authority (WVCWPA) staff to meet regulations resulting from the National Pollution Discharge Elimination System (NPDES) and their Municipal Regional Permit (MRP). The MRP regulates regional stormwater regulations for activities related to construction sites, industrial sites, illegal discharges and illicit connections, new development and municipal operations. Cities must renew their MRP every 5 years and during that period of time, the state has the ability to tighten regulation regional requirements. Changes in state requirements most directly impact the City’s General Fund. • Hazardous Household Waste – Continue efforts to inform Saratoga residents of the HHW program and the proper disposal of hazardous substances. The goal is to increase participation levels. • Solid Waste Management – Continue to work with the West Valley Solid Waste Management Authority and residents to provide quality solid waste and recycling services to Saratoga community members and remain in compliance with state mandated programs. Most recently, the state passed Senate Bill 1383 (SB1383) in 2016 to reduce organic waste disposal by 75% and increase edible food recovery by 20% by 2025. Under this law, jurisdictions must provide organics recycling services to nearly all residents and businesses. Jurisdictions must also develop or expand existing organic collection systems in all sectors and plan for adequate organic processing. The City adopted its Mandatory Organic Waste Disposal Reduction Ordinance in November 2021 to comply with the SB 1383 requirements. Additionally, jurisdictions must implement other requirements, such as contamination monitoring, record keeping, and reporting and enforcement. The City will experience an increase in spending to comply with SB 1383 and the expenses will be paid by the City’s operating budget. • Clean Energy Program – Continue to meet the goals of the Saratoga Climate Action Plan 2030 and work with local and regional agencies to support sustainable best practices. Over the past few years, the City has been increasing energy efficiency in buildings, electrifying buildings and appliances, accelerating zero emission vehicle adoption, and using clean, renewable energy sources.  The City works in partnership with Silicon Valley Clean Energy (SCVE) since 2016 to reduce greenhouse gas emissions within the Saratoga community. In 2017, the City began purchasing 100% renewable electricity from SVCE for all municipal facilities.   In 2019, the City adopted a green building reach code that requires all new buildings to use electric heat pump technology for their space and water heating. Additionally, in the area of low carbon transportation, the City’s reach code also requires new one and two-family homes and townhouses with attached garages to install two EV charger outlets, with one outlet located on the exterior of the building.  Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 115 Environmental Services Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Tons of solid waste collected in Saratoga:27,618 28,900 22,000 9,743 10,000 b.Tons of solid waste diverted from landfills:15,218 15,750 12,000 14,269 12,000 c.Meet State requirements for garbage diversion:Yes Yes Yes Yes yes 2. a.Percentage of regional meetings attended:100%100%100%100%100% b. Percentage of required reports completed and submitted by deadline: 100%100%100%100%100% 3 a.Percentage of regional meetings attended:100%100%100%100%100% b. Respond to reports of illicit and illegal discharges :100%100%100%100%100% Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.629 1126 1182 836 836 2.Miles of streets swept per month:550 550 550 550 550 3.0 1 1 1 6 Number of Saratoga residents participating in Countywide Household Hazardous Waste Program: Number of bags of garbage collected at creek clean-up events: Provide effective oversight of waste collection and recycling programs. Meet requirements of the Non-Point Source Pollution Prevention Permit specified for City staff: Protect Saratoga's natural environment through participation in the West Valley Clean Water Program. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 116 PAGE LEFT BLANK INTENTIONALLY Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 117 Streets and Storm Drains Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 5201 - Streets & Storm drains Revenues 420 - Intergovernmental 210,458 199,107 186,722 200,000 - - 440 - Charges for services 1,843 140 1,521 - - - Expenditures 500 - Salaries & Benefits (1,166,696) (1,078,886) (1,080,951) (1,247,550) (1,112,705) (1,184,945) 610 - Operating Expenses (58,311) (99,113) (103,980) (107,376) (114,790) (130,040) 640 - Contract Services (126,860) (156,517) (248,052) (280,000) (283,000) (283,000) 790 - Internal Services (362,038) (428,336) (482,792) (480,690) (480,690) (611,050) 5201 - Streets & Storm drains Total (1,501,604) (1,563,605) (1,727,532) (1,915,616) (1,991,185) (2,209,035) The Streets and Storm Drains Program provides for ongoing maintenance and minor repairs to the City’s roadways, storm drains, asphalt pathways, bridges, curbs, gutters, and concrete sidewalks to ensure the City’s public infrastructure is maintained in a safe, sustainable, and cost-effective manner. Program activities include small street repair projects, filling of potholes, maintenance of roadway signs, traffic markings (paint), signals, streetlights, and debris removal. Streets program staff coordinate program work with the General Engineering Program for traffic and roadway projects, and with the Parks Program for weed control and storm drain work. Auxiliary duties include storm preparation and cleanup, risk management/damage prevention activities, responding to public requests, and emergency preparedness functions. Other key services include: • Maintain roadway infrastructure with minor repairs, provide roadside weed control, and conduct litter pickup and bicycle lane sweeping along arterial streets and school sites. • Remove illegal signage from public right-of- ways. • Resolve sight distance, obstruction, and encroachment complaints. • Respond to graffiti removal requests. • Inspect open channel drainage facilities to ensure blockages do not impede drainage flows. • Respond to emergencies impacting roadways, drainage, and other City facilities. • Assist with community events, such as the Chamber of Commerce’s Village events, the Blossom Festival, the 4th of July event, and the Annual Village Tree Lighting. • Report PG&E owned streetlight outages to PG&E. • Repair City owned streetlights. 2023-24 Notable Changes The City expects approximately $200,000 per year from a voter approved $10 Vehicle Registration Fee surcharge which is used to help support this program’s maintenance activities. While roadway resurfacing contracts and related expenses are funded in the Capital Improvement Plan, staffing costs for contract oversight and Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 118 roadway maintenance services are provided through this General Fund Street and Storm Drain Maintenance Operating Budget program, through both staff and contract service efforts. Other expenditures in this budget include funding for traffic light repair services, street tree maintenance, minor tools, supplies, equipment, and training for staff to carry out this work, as well as internal service charges to support the program. 2023-24 Work Plan and Priorities • Pavement Management – Street Program staff will manage various street capital projects and all maintenance work on City roadways (145 miles), storm drains (45 miles), sidewalks (15 miles), bridges (20), as well as maintain approximately 15,000 signs and street restriping as needed. Council Policy, effective 2016-17, set a goal of $2 million of funding be designated for Street Resurfacing in the Capital Budget. Funding from the VTA Measure B program, Gas Tax, General Fund allocations, and various grants provides the remainder of CIP Street project funding while Street staff time and regular maintenance work is budgeted in the Operating Budget. In 2023-24 the budget will be $4.187 million, which represents additional revenue from PMP dedicated revenues and Gas Tax and an allocation of $1.337million from the General Fund’s Capital Reserve. • Infrastructure Maintenance & Repairs – Projects administered under the Roadway Infrastructure Maintenance & Repairs capital project are supported by Streets and Storm Drain program staff, with supplies or contract services funded by the CIP. • Retaining Wall Maintenance – Projects administered under the CIP for Retaining Wall repair projects are funded through the CIP but supported by Streets and Storm Drain program staff in the operating budget. Minor retaining wall maintenance expenses will continue to be funded through the operating budget. Streets & Storm Drains Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Maintain Pavement Condition Index average above 70 (out of 100 total points): 69 67 65 68 68 b.Percentage of potholes repaired within 24 hours of notification:100%100%100%100%100% 2. a.Storm drains cleaned and maintained to function properly and avert damage from major storm events: 1,050 1,050 1,050 1,050 1,050 Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.700 750 1,200 172 250 2.$1,098,511 $1,749,600 $0 $0 $0 To provide safe and functional roadway systems throughout the City. Maintain safe, well-functioning infrastructure. Number of signs installed and replaced: Amount of grant funding the City received for street resurfacing: Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 119 Parks & Landscape Maintenance Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 5301 - Parks & Landscape Services Revenues 440 - Charges for services 200,522 127,503 128,787 129,167 129,767 146,432 460 - Use of money & property 9,552 4,970 14,288 5,000 2,000 30,700 Expenditures 500 - Salaries & Benefits (1,084,535) (1,121,146) (1,157,457) (1,294,600) (1,184,120) (1,274,960) 610 - Operating Expenses (416,451) (487,312) (485,241) (460,521) (457,525) (508,325) 640 - Contract Services (711,859) (818,033) (820,487) (903,600) (885,400) (1,003,600) 770 - Fixed Assets (13,511) - - - - - 790 - Internal Services (359,231) (402,490) (441,555) (439,453) (439,453) (563,477) 5301 - Parks & Landscape Services Total (2,375,513) (2,696,509) (2,761,665) (2,964,007) (2,834,731) (3,173,230) The focus of the Parks & Landscape Maintenance Program is to provide attractive, well maintained, water efficient landscaping and turf through the management and maintenance of the City’s parks, trails, open spaces and facility grounds, as well as the landscaped medians and islands in the roadways. Facilities within the City’s parks, trails, and open spaces such as bathrooms, pedestrian lighting, walkways, playground and other recreation facilities are safe, clean, and well-maintained for residents and visitors. The Parks & Landscape Maintenance Program is responsible for maintaining 87 acres of parkland in 14 parks, and 250 acres of trails and open space areas throughout the City. The City-owned Hakone Gardens Park Japanese Garden areas are tended by a separate non-profit foundation; however, the City continues to maintain the facility’s infrastructure. Key services include: • Maintain all parks, trails, and open space areas in a safe, usable, and attractive condition. • Foster community awareness and support of the City’s parks and open space resources. • Coordinate and assist sport groups with use and care of recreational facilities. • Provide assistance with community events, such as the Chamber of Commerce’s Art & Wine Festival, the Blossom Festival, the 4th of July event, the Annual Village Tree Lighting, Arbor Day, Movie Night and the Heritage Orchard Community Harvest. • Provide for attractive, well maintained landscaped areas with plant maintenance and functioning irrigation systems. • Maintain trash receptacles throughout the City. • Provide management and oversight of the City’s Landscape & Lighting District contract maintenance work. • Conduct monthly playground inspections to maintain safety standards. • Maintain pedestrian lighting fixtures throughout City parks, properties, and Landscaping and Lighting Districts. Fiscal Year 2023-24 Notable Budget Changes Contract services for tree work and maintenance will continue to increase. Additional funding has Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 120 been added for a Citywide Tree Inventory project. The Park & Landscape Maintenance expenditure budget includes funding for landscaping materials, supplies, equipment, and services. Annual funding is included to replenish playground fiber at the various parks and additional tree work. The cost of water continues to play an important role in Parks & Landscape operations, making drought tolerant planting a focus. The remainder of the expenditure budget is for staffing and internal service charges. Fiscal Year 2023-24 Work Plan and Priorities • Water Efficiency – The Parks and Landscape Maintenance Program will continue to monitor the City’s irrigation system to reduce water use through plant selection, soil management, and irrigation methods. Turf areas will continue to be investigated as potential conversion sites into native landscape, hardscape or mulched areas to reduce water usage.  • Playground Safety Improvements – Staff continues to oversee the safety and structural integrity of playground equipment at all parks. Improvements include converting sand surfaces to engineered wood fiber material as mandated by the “Fall Zone/Impact Attenuation Guidelines.” In 2023-24, Beauchamps Park was improved with updated designs of playground equipment and all rubber surfacing. • Playground Monitoring – Monitor playgrounds on an on-going basis in accordance with a 15 to 25-year replacement schedule. Replacement criteria is based on major equipment wear and tear and changes in safety regulations on outdated structures. • Parks, Trails, Grounds & Medians (PTGM) Fixed Asset Oversight – Staff will manage PTGM fixed asset replacements in accordance with funding availability in the PTGM capital project, assessing and revising replacements schedules as necessary. New pickleball courts will be completed in 2023- 24. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 121 Parks & Landscape Maintenance Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of parks with playground equipment inspected monthly: 100%100%100%100%100% 2. a.Percentage of reports of needed park maintenance receiving response within 48 hours: 100%100%100%100%100% b.Percentage of reports of needed trail maintenance receiving response within 48 hours: 100%100%100%100%100% 3. a.Staff Maintenance workers maintaining pesticide licenses:100%100%100%100%100% b.Improved irrigation controllers installed to increase water efficiency: 0 1 3 1 23 c.Turf removed and converted to landscape or hardscape for water conservation (in square feet):1,000 6,707 15,088 0 1,000 Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.191 191 191 191 191 2.18 55 10 7 10 3.6 4 6 5 6 Total number of new trees planted in City parks: Parks and Recreation Commission Meetings: Maintain safety standards in parks and playgrounds. Protect Saratoga's natural beauty by maintaining parks and open space. Protect the environment through sustainable practices. Total acres of City parks maintained: Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 122 PAGE LEFT BLANK INTENTIONALLY Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 123 Vehicle & Equipment Maintenance The Vehicle & Equipment Maintenance Fund Program is operated as an Internal Service Fund and ensures that all vehicles and equipment are safe and function well. Staff maintains the repair, ownership, warranty, and maintenance records of vehicle and equipment inventory and performs monthly operational tests of emergency generators. Mechanical and body work repairs are provided through auto and equipment shops and services. Key services include: •Provide preventative maintenance and repairs for all City owned vehicles and equipment. \ •Comply with State and County air quality requirements. •Maintain the City’s fueling system and equipment. •Perform routine safety inspections to ensure safe operation of fleet. Fiscal Year 2023-24 Notable Budget Changes Revenues from this program reflect allocated charges to departments with assigned vehicles for the cost of providing maintenance and repair services and fueling vehicles and equipment. The Internal Service Fund chargeback again remains steady at $275,000. A new aerator was purchased in 2022-23. Increases in the cost of fuel is offset in part by the transition to more electric vehicles in the fleet. The Vehicle & Maintenance program chargeback is set approximately equal to operating expenditures. At year-end, any net operations savings help to increase fund balance reserves in line with Council policy. Overall, this budget supports Council’s objective to maintain vehicles and equipment in a safe, secure, sustainable, and cost-effective manner. Fiscal Year 2023-24 Work Plan and Priorities •Fleet Maintenance – The Vehicle & Equipment Maintenance program tracks vehicle and equipment repair and maintenance history. Staff will continue to refine maintenance schedules and recordkeeping activities to ensure all City vehicles & equipment are included in replacement schedules. 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Vehicle & Equipment Maintenance Revenue 480 - Internal Service Charges 275,000 275,000 275,000 273,263 273,263 274,770 488 - Other - - - 1,737 - - Revenue Total 275,000 275,000 275,000 275,000 273,263 274,770 Expenditure 500 - Salaries & Benefits (108,320) (103,125) (114,295) (115,000) (118,595) (128,820) 610 - Operating Expenses (46,060) (63,658) (77,982) (68,100) (68,100) (68,100) 640 - Contract Services (38,337) (51,834) (46,617) (50,000) (55,000) (60,000) 790 - Internal Services (47,706) (55,053) (59,794) (57,894) (57,894) (77,926) Expenditure Total (240,423) (273,670) (298,688) (290,994) (299,589) (334,846) Vehicle & Equipment Maintenance Total 34,577 1,330 (23,688) (15,994) (26,326) (60,076) Internal Service Fund Net Revenue/ (Expenditure) Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 124 Vehicle & Equipment Maintenance Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of fleet vehicles receiving annual safety inspections:100%100%100%100%100% b.Percentage of fleet vehicles receiving annual preventative maintenance: 100%100%100%100%100% 2. a.Percentage of City vehicle fleet using alternate fuels (including hybrid vehicles): 25%25%25%20%25% Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.25 25 25 30 30 2.54 52 52 27 30 3.6 3 6 1 3 Number of vehicles maintained: Provide safe and functional vehicles and equipment for City use. Number of oil changes performed per year: Number of required smog checks performed per year: Protect natural resources through sustainable practices. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 125 Vehicle & Equipment Replacement The Equipment Replacement Fund Program provides a consistent level of funding for the replacement of vehicle and equipment assets at the end of their life span. With the high level of care and maintenance staff puts into the City’s vehicles, the replacement schedules reflect a longer than average life span than other agencies use. The City uses ten years for most vehicles and trucks, whereas other cities use five-seven years for general purpose vehicles. A vehicle or equipment’s life span could be shorter or longer than expected, but with a replacement fund, adjustments can be made without significantly impacting the ongoing operating budget. Key services include: •Accumulate and provide annual funding for asset replacement. •Assess vehicles and equipment for proper replacement timing. •Prepare cost effectiveness study for asset replacement program. Fiscal Year 2023-24 Notable Budget Changes Three vehicles and several pieces of equipment are scheduled for replacement in2023-24. At present, the annual $150,000 per year chargeback amount is expected to maintain asset replacement for the next several years. Operating expenditures for this program are limited to replacement costs only. New assets must first be purchased through the owning department’s Operating Budget per approval by Council. Once purchased, the assets are added to the replacement fund list, and then the cost to replace the asset is charged over the life of the asset, so that the funds are there when needed. Scheduled replacements are assessed and may be delayed on a year-by- year basis to ensure adequate funding levels are in place. Fiscal Year 2023-24 Work Plan and Priorities • Vehicle Replacement –Purchase replacement vehicles and equipment in accordance with the 2023-24 replacement schedule. •Alternative Vehicle Assessment – Continue program assessment of available fuel alternative vehicles to determine usability, advantages, and cost-effectiveness in the City’s fleet. The full list of replacements assets scheduled for 2023-24 are identified in the following Equipment Replacement Schedule. 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Vehicle & Equip Replacement Revenue 480 - Internal Service Charges 150,000 150,000 150,000 149,053 149,053 150,050 488 - Other - - - 947 - - Revenue Total 150,000 150,000 150,000 150,000 149,053 150,050 Expenditure 610 - Operating Expenses (8,394) - - - -- 770 - Fixed Assets (80,860) (8,507) (5,089) (338,600) (114,500) (141,600) 790 - Internal Services - - (141,385) - -- Expenditure Total (89,254) (8,507) (146,474) (338,600) (114,500) (141,600) Vehicle & Equip Replacement Fund Total 60,746 141,493 3,526 (188,600) 34,553 8,450 Internal Service Fund Net Revenue/ (Expenditure) Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 126 Current Yr Current Asset Replacement Replacement Type/Program Asset #Purch Vehicle/ Equipment Life Purpose Cost Streets Equipment PW Streets E015 2001 Sase Scarifier (Grinder)20 Trip Hazard/Striping Removal 13,200 PW Streets E045 2007 MyTana Sewer Pipe Camera 15 Storm Drain Inspections 12,000 PW Streets N/A Gas Pumps 38 Corp Yard Gas Pumps 21,400 Parks Equipment PW Parks E038 2001 PTO - Aerator-Ryan 22 John Deere Attachment 20,000 PW Parks E056 2014 Jacobsen Reel Mower 11 Mower 75,000 TOTAL REPLACEMENT FUNDING 141,600$ 2023-24 VEHICLE & EQUIPMENT REPLACEMENT SCHEDULE Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 127 Lighting and Landscape Districts The City’s Landscape and Lighting District comprises 26 landscape and/or lighting zones, as well as two storm drain maintenance zones located throughout the City. These zones are created when a majority of property owners residing along or within the boundaries of the zones choose to establish a legal entity that authorizes the City to collect a parcel assessment and maintain the zone on their behalf. Funding for these zones is obtained through property tax assessments or benefit assessments approved by the property owners. Benefit assessment-based zones are exempt from the requirements of Proposition 218, which mandates a 2/3 majority approval, unless there is a request to increase the approved assessment rates. According to Section 5 of Proposition 218, assessments existing as of November 1996 are not subject to the measure if they were initially imposed based on a petition signed by all the parcel owners subject to the assessment at that time. Consequently, the City is not obligated to conduct an election among the property owners unless there is a proposal to raise the annual assessment beyond the limits defined in the existing agreement. Since the passage of Proposition 218, the City has ensured that annual increases are incorporated into the assessment agreements to allow for up to 5% assessment increases. As operational costs continue to rise each year, these built-in annual escalation allowances enable the City to maintain the same level of services consistently. Only two of the zones established prior to the enactment of Proposition 218 currently lack this provision for annual increases in their agreements. Fiscal Year 2023-24 Notable Budget Changes Each year there are moderate increase in assessments due to increases in electricity, water, landscaping services and contract maintenance services. There is also a pro-rated administrative fee for staffing administration and oversight, legal fees, and engineering services. The Landscape & Lighting District administrative service fee expense is, in turn, a revenue to the Parks & Landscape Maintenance program. In compliance with Regional Water Control Board permit requirements, the City creates Clean Water Assessment Zones for private developments that meet the threshold of mitigation. Currently, there are two zones of this kind for the City. Six new zones are anticipated for this fiscal year. The new zones will provide the funding to install automatic license plate readers. Fiscal Year 2023-24 Work Plan and Priorities • District Zone Assessments – Staff will continue to closely monitor all Landscape & Lighting Assessment District Zones for appropriate service and funding levels and to assess whether assessment increases are needed for several of the districts with low fund balances. • Clean Water Assessment Zones – The Regional Water Control Board conditions development projects of a certain size to contain storm water infrastructure to protect water ways. These conditions require the City to ensure that inspections, maintenance, and capital expenditures are conducted into the future. To fund these expenditures, the City creates assessment zones to manage property tax assessments and expenditures. Staff oversees these storm water activities and will continue to create and maintain additional storm water assessment zones as required. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 128 Fund Number of Parcel Total Total No.Assessment Zones Parcels Assessment Assessment Property Tax Lighting Zones 233 Sarahills Lighting 64 104 6,648 - Landscape Zones 241 Arroyo de Saratoga Landscape 250 73 18,285 - 242 Bonnet Way Landscape 41 127 5,207 - 243 Carnelian Glen Landscape 20 294 5,875 - 244 Cunningham/Glasgow Landscape 31 379 11,746 - 245 Fredericksburg Landscape 85 158 13,414 1,064 246 Greenbriar Landscape 176 108 18,997 7,678 247 Kerwin Ranch Landscape 16 1,122 17,957 - 248 Leutar Court Landscape 9 651 5,855 - 249 Manor Drive Landscape 29 94 2,725 5,345 251 McCartysville Landscape 48 528 25,355 - 252 Prides Crossing Landscape 863 122 105,533 - 253 Saratoga Legends Landscape 15 856 12,838 - 254 Sunland Park Landscape 200 135 27,021 - 255 Tricia Woods Landscape 9 285 2,568 - 256 Allendale Landscape 43 102 4,379 - Landscape & Lighting Zones 257 Covina Landscape & Lighting 192 120 23,003 271 Beauchamps Landscape & Lighting 55 281 15,471 - 272 Bellgrove Landscape & Lighting 94 972 91,413 - 273 Gateway Landscape & Lighting 34 - 14,089 - 274 Horseshoe Landscape & Lighting 53 338 17,935 - 276 Tollgate Landscape & Lighting 61 175 10,676 - 278 Westbrook Landscape & Lighting 92 66 6,115 - 279 Brookview Landscape & Lighting 326 78 25,331 - Storm Drain Zones 291 Hill Ave Storm Water 5 466 2,328 - 292 Paramount Court Storm Drain 7 1,167 8,170 - 26 Assessment Zones 4,577 8,802$ 498,935$ 14,086$ Annual Zone Assessments FY 2023-24 Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 129 Department Overview The primary goal of the Community Services Department is to strengthen the City’s relationships with residents, provide community recreation services, engage the diverse populations of Saratoga, and build community. Community Services Net Revenue/ (Expenditure) General Fund Programs Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Recreation Services (81,739) (76,653) (81,059) (92,559) (93,109) (123,306) Facility Rentals (246,850) (338,200) (233,834) (282,045) (184,994) (146,053) Community Engagement (164,870) (191,539) (213,328) (231,858) (251,234) (300,510) City Events (32,635) (17,519) (22,270) (63,400) (44,127) (52,500) Community Event Grants (43,278) (16,813) (19,443) (41,500) (41,500) (60,900) Community Support Services (152,852) (195,175) (179,820) (203,354) (185,239) (191,500) General Fund Total (722,224) (835,899) (749,754) (914,716) (800,203) (874,769) Community Services Recreation Services Provides recreation services to Saratoga residents Facility Rentals Manages the City facility rental program Community Engagement Strengthens relationships between the City and its residents City Events Hosts City events that bring the community together Community Event Grants Allows event organizers to seek funding in support of Community funding Community Support Services Grants provide grant support to outside agencies Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 130 Recreation In April 2019, the City Council authorized a two- year agreement with the Los Gatos Saratoga (LGS) Recreation to provide recreation services in the City of Saratoga. Per the agreement, LGS Recreation offers a variety of classes and activities at the Joan Pisani Community Center and Saratoga Prospect Center. Recreation services provide health, wellness, arts, and enrichment programs for all ages. The lease has been extended through June 30, 2025. The program budget captures remaining City costs to administer the Recreation program most specifically staff time for contract administration and internal services charges for facility maintenance. Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 6101 - Recreation Revenues 440 - Charges for services 6,400 - - - - - 460 - Use of money & property - 14,500 14,500 - - - Expenditures 500 - Salaries & Benefits (11,571) (13,459) (14,429) (15,000) (15,550) (21,962) 610 - Operating Expenses (39) (39) (39) - - - 790 - Internal Services (76,529) (77,655) (81,092) (77,559) (77,559) (101,344) 6101 - Recreation Total (81,739) (76,653) (81,059) (92,559) (93,109) (123,306) Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 131 Facility Rentals The Facility Rentals Program manages the City’s rental program for private individuals, non-profit, or for-profit-based groups to use for receptions, parties, events, meetings, memorials, workshops, or other community activities. Rental facilities include rooms of various sizes and uses in the Community Center and auxiliary buildings, the Warner Hutton House, the Saratoga Prospect Center complex, the Civic Theater, and numerous City park facilities. Key services include: • Provide clean, safe, and affordable space to the community for social, religious, educational, family and community groups and for key City services (e.g. meetings). • Support tenant needs in the rented buildings. • Enforce environmentally friendly purchasing and sustainability policies. • Provide affordable venues for community use. 2023-24 Notable Budget Changes During the Council Retreat in February, Council approved a strategy of reimagining delivery of facility and park rentals as a contract service upon the retirement of the Facilities Administrator. The service delivery model will save the Facility Rental Program approximately $87,000 during 2023-24 and $123,000 in subsequent years. 2023-24 Work Plan and Priorities • Facility Rentals Transition – City staff will transition facilities rentals to Los Gatos Saratoga (LGS) Recreation to continue the City’s tradition of providing high quality, safe, affordable, clean, and enjoyable facilities that are convenient to residents for meetings, parties, receptions, and gatherings in a safe, sustainable, and cost-effective manner. Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 6201 - Facility Rentals Revenues 440 - Charges for services 6,215 - - - - - 460 - Use of money & property 224,057 120,273 265,422 255,500 328,059 96,500 Expenditures 500 - Salaries & Benefits (241,327) (219,566) (240,368) (287,900) (277,976) - 610 - Operating Expenses (9,555) (2,131) (9,654) (8,068) - - 640 - Contract Services (5,559) (5,725) (5,897) (6,500) - - 790 - Internal Services (220,681) (231,050) (243,337) (235,077) (235,077) (242,553) 6201 - Facility Rentals Total (246,850) (338,200) (233,834) (282,045) (184,994) (146,053) Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 132 Facility Rentals Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.According to facility rental survey, the percentage of visitors who felt their visit to the facility was clean, comfortable, and safe: 100%100%100%100%100% b.Percentage of customers which agreed facilities met or exceeded expectations: 100%100%100%100%100% 2. a.Percentage of surveyed visitors which agreed the facility was clean, comfortable, and safe: 100%100%100%100%100% Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.320 0 250 500 50 2.2,000 2,000 2,000 2,000 500 3.$350 $500 $250 $450 $500 Provide safe, functional, and attractive City buildings for community use and enjoyment of the public. Provide safe, functional, and attractive City buildings for the provision of City services. Number of fee-based and no-charge (for City meetings, events, etc.) facility rental hours for public use: Average dollars per receipt: Number of facility rental applications processed: Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 133 Community Engagement The Community Engagement Program seeks to strengthen relationships between the City and its residents, build community and civic pride, and create a more inclusive and welcoming environment for all segments of the community. This program includes youth and school engagement efforts, engagement of individuals with disabilities, seeks to engage older adults and support Age-Friendly Community efforts, and more. Key services include: • Build community and sense of civic pride. • Increase partnerships and opportunities for collaboration with local organizations that serve Saratoga residents. • Engage all segments of the Saratoga community, including those at the greatest risk for isolation. 2023-24 Notable Budget Changes Division revenues are limited and consist primarily of donations and nominal participation fees for programs like Youth in Government and expenditures, other than staff, are for materials and supplies to support the programs. No notable budget changes this fiscal year. 2023-24 Work Plan and Priorities • School Partnerships – Continue and strengthen partnerships with Saratoga-area schools. • Age-Friendly Community Efforts – Identify ways to better serve individuals of all ages and provide a more welcoming environment for all segments of the Saratoga community. • Community Partners – Increase connections with the various community organizations that serve residents of Saratoga to create greater awareness of services available in the City and leverage resources where appropriate. Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 6301 - Community Engagement Services Revenues 440 - Charges for services 1,427 2,706 1,515 2,000 600 500 460 - Use of money & property 1,475 (1,275) 92 200 - - Expenditures 500 - Salaries & Benefits (138,733) (161,158) (183,431) (195,700) (219,740) (258,962) 610 - Operating Expenses (11,611) (8,039) (6,973) (12,986) (7,722) (10,580) 640 - Contract Services (660) - - (1,000) - - 790 - Internal Services (16,769) (23,772) (24,532) (24,372) (24,372) (31,468) 6301 - Community Engagement Services Total (164,870) (191,539) (213,328) (231,858) (251,234) (300,510) Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 134 Community Engagement Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of time Community Services staff member attends Youth Commission meetings: 100%100%100%100%100% b. Provide a teen internship program in local government:Yes Yes Yes Yes Yes 2. a.Provide community activities to build stronger community relationships: Yes Yes Yes Yes Yes 3.Develop and broaden services for underserved populations. a.Develop and provide services and events for individuals with Special Needs: Yes Yes Yes No Yes b.Provide opportunities for individuals with Special Needs to engage with the City: Yes Yes Yes Yes Yes c.Strengthen relationships with community-based organizations that serve target populations, such as older adults and at-risk groups: Yes Yes Yes Yes Yes 4.Enhance culture and community through Public Art: a.Provide opportunities for community engagement in public art: Yes Yes Yes Yes Yes Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 Actuals Actuals Actuals Actuals Budget 1.2100 880 600 800 800 2.60 11 21 25 25 3.5 3 0 0 3 4.16 15 8 15 12 Number of teen-age volunteers: Number of Community Event Grant Programs funded: Partner with the community to improve the quality of life for teens. Promote healthy lifestyles and personal growth through organized recreation activities. Number of teen-age volunteer service hours offered: Number of utility boxes painted through Paint the City: Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 135 City Funded Events The City of Saratoga recognizes the value of community events and their role in bringing residents together, building community, and establishing an identity for the City. The City Funded Events program covers a variety of City- hosted events. These include groundbreakings and grand openings, as well as annual events, such as the Tree Lighting Ceremony, Arbor Day, and the summer outdoor movie series among others. Key services include: • Build community and sense of civic pride. • Increase partnerships and opportunities for collaboration with local organizations that serve Saratoga residents. 2023-24 Notable Budget Changes Budgeted event expenditures were restored to normal levels in 2022-23, with the elimination of funding for a 2nd street closure event. Revenue is not collected for these events. 2023-24 Work Plan and Priorities • Community Partners – The City’s engagement efforts also include strengthening partnerships with organizations in the community through sharing resources and partnering on various community events. Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 6302 - City Events Expenditures 610 - Operating Expenses (32,635) (17,519) (22,270) (63,400) (44,127) (52,500) 6302 - City Events Total (32,635) (17,519) (22,270) (63,400) (44,127) (52,500) Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 136 2019-20 2020-21 2021-22 2022-23 Actuals Actuals Actuals Adopted 2022-23 2023-24 Estimated Adopted City Celebrations Roadway Improvement Events - - - 200 - - Parks, Trails, Open Space Events 65 - - 200 - - State of the City Event 4,966 5,691 4,565 6,000 5,939 6,000 Village Celebrations Village Tree Lighting Event 1,500 - 2,058 2,500 475 2,000 Car Show Street Closure 16,599 - - 22,000 24,866 22,000 Celebration of Light 2,590 412 2,119 3,000 547 2,500 Community Events Outdoor Movie Nights 4,266 6,403 8,116 7,500 7,500 7,500 Arbor Day Celebration 558 62 574 500 350 500 Public Safety Events 706 - - 5,000 450 5,000 Dance & Special Events 1,353 1,463 650 5,000 - 1,500 Color Dash 33 3,488 4,188 3,500 3,000 3,500 Community Harvest - - - 8,000 1,000 2,000 Total Community Event Funding 32,636 17,519 22,270 63,400 44,127 52,500 CITY SPONSORED EVENTS SCHEDULE Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 137 Community Events Grants Community events help bring people together, foster a sense of pride, and can define the identity of a city. In recognition of the value of events and the City’s limited ability to host events, the City Council established a Community Event Grant Program to allow event organizers to seek funding to support community events in Saratoga. In recent years, the event grant program has evolved to include secured and competitive funding allocations. The City Council has identified several cornerstone events that now receive secured grant funding. The organizers of these events do not have to go through a formal application process to receive grant funding. Those seeking competitive grant funding may apply during the annual application process. All event grants, including secured and unsecured grants, must meet the following criteria: • Must be a volunteer-led event held in Saratoga • Event is free and open to everyone • Event concentrates on Saratoga’s character, diversity, or history • Event celebrates the community as a whole, and is not limited to a small group, such as reunions Additionally, allocations of unsecured grant funds are now capped at $2,000, secured grant recipients may not participate in the annual application process, and event organizers must obtain a minimum $1 million in liability coverage for the event. 2023-24 Notable Budget Changes Competitive funding for community events grants was restored in 2022-23. The event grants awarded by the City Council help community groups pay for expenses associated with coordinating events, including City-related fees (i.e., permits, park attendants, renting parks or facilities), security, entertainment, signage, event materials and food. A total of $5,400 has been allocated for 2023-24 competitive funding community event grants. Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 6303 - Community Event Grants Expenditures 610 - Operating Expenses (43,278) (16,813) (19,443) (41,500) (41,500) (60,900) 6303 - Community Event Grants Total (43,278) (16,813) (19,443) (41,500) (41,500) (60,900) Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 138 2019-20 2020-21 2021-22 2022-23 2023-24 Actuals Actuals Actuals Estimated Adopted Chamber of Commerce Events Misc Chamber Festivals 9,500 9,500 10,000 15,000 15,000 Community Celebrations Month of the Child Celebration - - - 2,000 - Montalvo Celebrations 2,000 - - - - Blossom Festival 163 - 5,083 5,000 5,000 Girl Scout Crafts - Blossom Festival - - - 500 500 Sacred Heart Community Carnival 2,000 - - - - Saratoga Community Band 950 - 795 1,000 1,000 Sister City Celebration - - - 2,000 Mural, Mural on the Wall - - - - 1,700 Saratoga, My Home' Public Art Contest - - - - 1,200 Day of Social Action/Helping Others - 2,000 - - - Cultural Celebrations Hakone Matsuri 5,000 5,000 - 4,900 5,000 Dragon Boat Festival - - - 2,000 2,000 Holiday Celebrations MLK Jr. Day Celebration - - - - 2,000 Memorial Day Event 86 - 339 1,000 1,000 Odd Fellows Easter Event 389 - - 1,500 - Fourth of July Event 1,976 - 2,500 2,500 2,500 Healthy City Events SASCC Health Fair 5,000 - - - - Saratoga Village Events Saratoga Village Dev Council Events 674 313 725 2,000 2,000 Classic Car Show 4,040 - - - 22,000 Total Community Event Funding 43,278 16,813 19,443 39,400 60,900 COMMUNITY EVENT GRANTS SCHEDULE Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 139 Community Support Services The Community Grants program consolidates the City’s grant support to outside agencies into one program, thereby retaining historical funding information. The City allocates grant funding to local organizations to support the services these groups provide to the Saratoga community, including: the Saratoga Chamber of Commerce for business support; West Valley Community Services for housing and food services; Catholic Charities Ombudsmen to support the poor and vulnerable; and the Saratoga Area Senior Coordinating Council (SASCC) for operational support of the Senior Center. The City also contributes in-kind services, such as building space and utilities to the Saratoga Area Senior program as the Senior Center is located in the City’s Community Center facilities. This non-profit organization provides a variety of health services – such as blood pressure checks, flu shots, vision screening, hearing tests, and senior nutrition programs, as well as social and support services – such as tax return assistance and Fifty-Five Alive driving program. Recreational games and classes, including ping-pong, card games, and karaoke are popular, and the curriculum continues to expand to other non-cost-recovery services the senior population finds valuable. Grant amounts listed reflect City funding provided to service groups and non-profit organizations. Non-monetary support, such as staff assistance, rental and permit waivers, law enforcement services, and street sweeping provided to various community groups is considered part of normal City operations and therefore not accounted for in the budget. Key services include: • Build community and sense of civic pride. • Provide critical services to vulnerable Saratoga populations. • Create a vibrant and thriving business community. • Prevent and prepare for wildfire risk. • Encourage volunteerism. 2023-24 Notable Budget Changes The budget reflects a modest increase, net of a small project grant that will not require funding for 2023-24 and an increase in Neighborhood Watch Grant funding. Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 6304 - Community Support Services Expenditures 500 - Salaries & Benefits - - - (5,300) (5,500) (5,500) 610 - Operating Expenses (152,852) (195,175) (179,820) (198,054) (179,739) (186,000) 6304 - Community Support Services Total (152,852) (195,175) (179,820) (203,354) (185,239) (191,500) Community Services CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 140 2019-20 2020-21 2021-22 2022-23 2022-23 2023-24 Actuals Actuals Actuals Adopted Estimated Adopted Community Services Support SASCC Senior Services 42,729 43,797 44,892 46,015 46,100 46,100 Adult Care Support 23,114 23,692 24,282 24,891 24,891 24,900 Chamber of Commerce 11,769 20,086 12,487 17,148 17,148 18,000 West Valley Community Services 28,000 28,000 28,000 28,000 28,000 28,000 United Way 211 Funding 2,000 2,000 2,000 2,000 2,000 2,000 Catholic Charities Ombudsmen Funding 5,000 5,000 5,000 5,000 5,000 5,000 Volunteer Project Funding 1,767 10,140 1,290 10,000 600 - SCC FireSafe Council - Fuel Reduction Services25,000 50,000 50,000 50,000 50,000 50,000 Neighborhood Watch Grant 13,474 12,460 11,870 15,000 6,000 12,000 Total Community Support Services Grants152,852 195,175 179,820 198,054 179,739 186,000 COMMUNITY SUPPORT SERVICES GRANTS SCHEDULE Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 141 Department Overview The Public Safety Department is comprised of two safety-oriented programs: the Public Safety Services Program, which provides for day-to-day law enforcement services; and the Emergency Preparedness Program which prepares the City for infrequent large-scale disaster and emergency occurrences. The assorted Public Safety functions are delivered through a number of external agencies and joint efforts. The City of Saratoga contracts for law enforcement services with the Santa Clara County Sheriff’s Office. Services include traffic, patrol, and general law enforcement, as well as ancillary programs to educate the community on crime prevention, traffic safety, and emergency response. Animal control services, including licensing, animal control, and field and shelter services, are provided on contract by the City of San Jose Animal Care and Services Division (SJACS). Fire protection services are provided to Saratoga residents by Santa Clara County Fire District (SCCFD) as a separate tax-funded district. As part of the SCCFD’s emergency oversight function, they also provide the cities with staff support for coordinating city-based emergency response services. Saratoga is a member of the Silicon Valley Regional Interoperability Authority (SVRIA). This local agency coalition task force has undertaken the mission to design and implement a comprehensive public safety radio communications system to improve countywide communication. In past years, the funding formula billed the cities directly. The Emergency Preparedness Program supports the preparation of both City and community emergency response efforts in the event of a significant earthquake, fire, or other natural or man-made disasters, and coordinates with various emergency services agencies and utilities to prepare residents for self-sufficiency and proper response to emergency events. The City plans and trains for various situations in the effort to employ best practices; determine outstanding needs; create awareness; and educate City staff about their emergency response duties. The Emergency Preparedness Program receives additional support from SCC Fire and SCC Office of Emergency Services unit through grants, staff oversight assistance, and Community Emergency Response Team (CERT) training courses. The CERT programs train the Saratoga community in Emergency Preparedness through the planning and supervision of drills and exercises. Public Safety Programs Net Revenue/ (Expenditure) General Fund Programs Program 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted Public Safety (5,871,135) (6,157,512) (6,333,993) (7,233,897) (7,261,954) (7,767,400) Emergency Preparedness (72,820) (90,649) (128,638) (230,475) (143,785) (237,265) General Fund Total (5,943,955) (6,248,161) (6,462,631) (7,464,372) (7,405,739) (8,004,665) Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 142 Public Safety Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 7101 - Public Safety Revenues 420 - Intergovernmental 290,890 303,521 333,912 267,515 272,000 265,000 440 - Charges for services 17,908 21,090 20,116 20,000 17,500 14,000 450 - Fines & penalties 89,437 52,302 92,536 77,000 45,000 45,000 460 - Use of money & property 13,243 109,530 287,854 - - - Expenditures 610 - Operating Expenses (5,261) (3,935) (5,108) (5,400) (3,400) (4,400) 648 - Public Safety Contract Services (6,277,351) (6,640,019) (7,063,303) (7,593,012) (7,593,054) (8,087,000) 7101 - Public Safety Total (5,871,135) (6,157,512) (6,333,993) (7,233,897) (7,261,954) (7,767,400) Since the City’s incorporation in 1956, the City has contracted for public safety services with the Santa Clara County Sheriff’s Office rather than employ in-house police services. The City has found this option very satisfactory as the Sheriff provides a full range of services and competencies associated with a large police department without the full large-city expense. This is evidenced by the City being lauded in numerous “safest cities” lists every year. For example, in 2013, Saratoga was ranked as “the safest city in California” and in 2014, the “12th safest city in the nation.” Key services include: • Law enforcement services include traffic management, patrol and code enforcement, and response to calls for service and traffic incidents. • Public education and participation in community, school, and neighborhood groups. • Crime prevention, deputy response, investigation, resolution of criminal cases, and subsequent participation in the prosecution of offenders. • Records management functions including processing deputy reports and citations, criminal and traffic warrants, and fingerprinting services. • Coordination of Emergency Response activities with SCC Fire District and City staff. 2023-24 Notable Budget Changes The 2023-24 Sheriff Office services contract increased by $473,946 from the prior year due to personnel cost increases. General Fund revenue is the primary funding source for Public Safety, but the City also receives external funding support from public safety related operational activities and state funding. The City’s current 10-year contract for Public Safety services with the Santa Clara County Sheriff’s Office (7/1/2014-6/30/2024) calls for annual increases based on the lesser of either compensation increases, or CPI plus 2% for each individual year, with the increase in CalPERS rates added on to this base increase. Additional budget appropriations in the Public Safety Program support animal-related services through a contract with the City of San Jose. The Animal Control Services 20-year contract became effective on July 1, 2004 Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 143 (expiring June 30, 2024) with an initial annual fee of $155,000 for the first three years. The contract allows for an increase every third year, based on a formula using the lesser of either, 1) the total of the Urban Wages and Clerical Workers for the San Francisco-Oakland-San Jose CPI increases for each of the prior three years plus 1.5% per year; or, 2) the total of the rise in San Jose Animal Control Officers salary for the prior three years. The contract’s final annual rate increase was $235,958.31, which became effective July 1, 2022. 2023-24 Work Plan and Priorities • Crime Prevention/Neighborhood Watch - The Sheriff’s burglary suppression efforts include identifying crime hot spots and engaging in saturation patrols in high frequency areas.  The crime analyst’s crime mapping and predictive policing techniques, and the detective’s investigations and follow- up efforts have resulted in identifying and arresting suspects committing burglaries and preventing further burglaries.  Community outreach and relationship building, along with public safety presentations to educate the community on safety awareness and crime prevention will also continue.  The Sheriff’s Office support the facilitation of Neighborhood Watch groups, with the goal of encouraging citizens to report any suspicious activity immediately, ultimately bettering the quality of life for all residents. • Patrol Division – The Sheriff’s Office West Valley Patrol Division added a bicycle unit to patrol operations.  Deputies assigned to bicycle patrol focus their enforcement efforts primarily in the business districts. Goals include maintaining a visible presence in busy shopping areas as well as building a stronger working relationship with City business partners. • School Resource Officer – School Resource Officers are active at the schools, acting as mentors to students, and conducting numerous presentations and drills with students, faculty and parents on topics including active shooter protocol, stranger danger, internet and digital media safety, bullying and suicide awareness, among others. • Community Academies – The annual teen academy provides high school students with a new perspective of law enforcement, raising their awareness of issues that may impact them currently and in their future. • Automatic License Plate Reader (APLRs) In 2022, the City implemented a 1-year Automated License Plate Reader (ALPR) pilot program. The ALPR system captures images of vehicle license plates, then compares license plate numbers against law enforcement databases which track vehicles of interest to law enforcement. Examples may include a stolen vehicle, an Amber or Silver Alert, etc. If a plate matches a listing on a database, the system alerts the Sheriff’s Office so a deputy can be deployed to investigate. Funding for the ALPR was included in the 2022-23 operating budget and will also be included in the 2023-24 operating budget. Several lighting and landscape districts have also chosen to take part in this safety program beginning in fiscal year 2023 with the cost of those installations paid by the requesting Lighting and Landscaping funds. Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 144 Public Safety Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Priority I calls (serious emergency and public hazard):21 13 42 59 34 b.Priority II calls ( immediate response, but non-emergency):2,652 1,807 2,468 2,865 2,448 c.Priority III calls (non-emergency):2,185 1,853 1,480 1,482 1,750 2. a.Average response to Priority I calls for service:3.88 min 5.38 min 4.91 min 5.26 min 4.86 min b.Average response to Priority II calls for service:6.74 min 6.72 min 7.22 min 8.32 min 7.25 min c.Average response to Priority III calls for service:12.41 min 11.05 min 11.46 min 13.11 min 12.01 min 3. a.Prepare and provide city staff with weekly reports of crime activity in the city: 100%100%100%100%100% b.Provide community with crime prevention tips and weekly reports on city website: 100%100%100%100%100% c. Educate residents through participation in community events and Neighborhood Watch meetings: 45 18 28 39 33 4. a.Processing of criminal reports:3 days 3 days 3 days 3 days 3 days b.Processing of collision reports for involved parties:7 days 7 days 7 days 7 days 7 days c.Processing of collision reports for insurance companies:7 days 7 days 7 days 7 days 7 days 5. a. Number of Emergency Operation Plan trainings, drills, or activities to enhance Emergency Preparedness skills: 25 6 62 72 41 Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.14,212 11,601 12,115 11,615 12,386 2.988 643 680 710 755 3.187 130 152 187 164 4.1,175 773 832 897 919 For effective protection of life and property, ensure a safe and secure community through diligent enforcement of regulations, codes and law. Develop Sheriff's Office Emergency Preparedness to provide public safety leadership in the event of emergency situations. Provide Public Safety service response in a timely, professional manner. Meet or exceed service goals. Promote Crime Prevention awareness and educate community in the protection of their neighborhood and property. Ensure Sheriff's Office responsiveness to community needs by documenting and providing response turnaround time to responsible parties. Radio calls for service received in the city: Total number of crime reports taken: Total number of collision reports taken: Total number of cases assigned to Detectives: Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 145 Emergency Preparedness Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 7102 - Emergency Preparedness Expenditures 500 - Salaries & Benefits (57,856) (67,294) (72,139) (77,000) (77,540) (109,662) 610 - Operating Expenses (6,739) (12,759) (10,943) (17,940) (5,710) (9,900) 640 - Contract Services - - (34,965) (30,000) (30,000) (30,000) 648 - Public Safety Contract Services - - - (95,000) (20,000) (75,000) 790 - Internal Services (8,225) (10,597) (10,591) (10,535) (10,535) (12,703) 7102 - Emergency Preparedness Total (72,820) (90,649) (128,638) (230,475) (143,785) (237,265) The City of Saratoga is responsible for coordinating emergency response and recovery efforts in the event of a significant earthquake, fire, or other natural or man-made disaster. To prepare for this responsibility, City staff work in conjunction with the Sheriff’s Office, Santa Clara County Fire Department (SCCFD), and the Santa Clara Office of Emergency Management (OEM) to plan and prepare for emergency situations. The City of Saratoga has a robust Community Emergency Response Team (CERT) and is fortunate to have a dedicated crew of Ham radio operators organized under the Saratoga Amateur Radio Association (SARA) that can step in to assist with emergency communications. These two organizations meet regularly to hone skills, orient members, and conduct exercises so that they can assist in disaster response efforts if needed. The members of these organizations also learn about preparing themselves and their households for emergencies. Key services include: • Prepare and update Emergency Operations Plan Annexes. • Train City staff and community members on emergency preparedness. • Maintain EOC, equipment, and technology to ensure Saratoga is in compliance with Federal, State, and County standards and requirements. • Plan and supervise emergency drills and exercises. • Oversee Emergency Management grants as available. • Oversee Community Emergency Response Team. • Develop and implement disaster event preparation practices for proper cost recovery documentation purposes. 2023-24 Notable Budget Changes Funding for an emergency preparedness consultant has been included in the budget in anticipation of hiring a consultant to prepare annexes to the Emergency Operations Plan and other emergency preparedness planning documents. Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 146 2023-24 Work Plan and Priorities • Fuel Reduction –Funding for fuel reduction is included again in the budget. Evacuation routes in the City’s Wildland Urban Interface area, which is the part of the City considered at the greatest risk for wildfire, will be the priority for fuel reduction efforts. Clearing dry and dead weeds, brush, and low hanging limbs along these critical roads helps prevent spread of fire and can help keep flames further away from vehicles using evacuation routes during a disaster. • Emergency Preparedness Consultant – The Emergency Operations Plan is comprised of general procedures for disaster and emergency response, and individual topic specific plan annexes. This Plan was updated in 2018-19. Hazard specific and function specific annexes to the plan are under development, such as a Wildfire Annex and Crisis Communication Plan. Funding is also included in the budget to allow for development of other emergency planning documents. Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 147 Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 148 PAGE LEFT BLANK INTENTIONALLY Non-Departmental Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 149 Non-Departmental The General Administration program represents revenues and expenditures that are generated as a result of being a governmental entity rather than from departmental operations. Tax Revenues, Intergovernmental Revenues, Interest, and Rental Income are the primary nonservice-based revenue sources for the City, and account for approximately 80% of the City’s Total General Fund Operating Revenues each year. General Administration expenditures are minimal in comparison, as program operations are limited to funding citywide general expenses and internal service charges for general use areas or non-departmental functions. Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 8101 - Non-Departmental Revenues 411 - Property Taxes 16,218,404 16,783,251 17,409,865 17,837,600 18,011,445 18,636,124 413 - Other Taxes 1,864,085 1,794,110 2,448,441 2,421,900 2,508,000 2,618,000 416 - Franchises & Surcharges 2,244,318 2,264,237 2,418,836 2,026,400 2,214,000 1,853,500 420 - Intergovernmental 43,325 30,336 40,832 30,500 36,585 25,000 440 - Charges for services - - 15 20,000 - - 450 - Fines & penalties 150 75 275 300 125 - 460 - Use of money & property 749,413 1,435,059 (144,003) 598,800 1,003,643 1,399,336 Expenditures 500 - Salaries & Benefits (28,254) (31,997) (35,807) (43,700) (327,768) (437,000) 529 - UAL Payoff (1,041,098) (1,013,779) (1,013,932) (950,000) (950,000) (1,256,000) 610 - Operating Expenses (39,992) (56,303) (14,453) (87,600) (21,000) (87,500) 640 - Contract Services (3,121) (978)(1,890) (5,000) -(5,000) 650 - Professional Services (11,847) -- - - - 790 - Internal Services (625,850) (679,560) (718,218) (697,512) (697,512) (901,611) 900 - Transfer to Capital Program (3,505,000) (2,885,500) (2,960,131) (2,509,000) (2,509,000) (3,289,000) 8101 - Non-Departmental Total 15,864,533 17,638,952 17,429,832 18,642,688 19,268,518 18,555,849 Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 150 PAGE LEFT BLANK INTENTIONALLY Non-Departmental Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 151 Legal Services Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 8201 - Legal Services Expenditures 650 - Professional Services (445,650) (312,568) (257,490) (390,000) (390,000) (419,500) 8201 - Legal Services Total (445,650) (312,568) (257,490) (390,250) (390,000) (419,500) The City of Saratoga contracts with the firm Shute, Mihaly & Weinberger LLP (Shute Mihaly) to provide City Attorney services, advice, and representation on legal matters to ensure City actions and activities are legally sound. Shute Mihaly in turn, utilizes Wittwer & Parkins, LLP for land use/development attorney services on an as-needed basis. The City Attorney also oversees the City’s use of Mouser Law Firm legal services for employment law, and occasionally other legal firms for specialized services. The City Attorney manages the City’s pursuit or defense in litigation matters as directed by the City Council, supervises litigation costs, and provides the City with a monthly status report of all outstanding litigation, case updates, and potential lawsuits. In addition, the City Attorney: reviews all proposed ordinances and resolutions requiring City Council action to ensure proper format and content; reviews staff reports for reasoned and sound commentary; identifies policy options and alternatives; and provides direction, recommendations, and appropriate summaries consistent with Council requirements. Additional contract city attorney services include review and recommendations on legislative issues, recommendations on environmental review requirements and preparation of environmental review documents, review of bid requests, vendor contract documents, purchase and sale agreements, code enforcement matters, and the preparation and/or review of contractual agreements with other agencies. Employment Law services include policy development, human resources oversight, and negotiation services as needed. The City Attorney attends the bi- monthly City Council meetings, and special City Council sessions as needed. Overall, Legal Services provides support to the City Council’s Strategic Goals for a transparent and ethical City government, in conformance with and abiding by the rule of law. Key services include: •Provides sound legal advice for the City and represents the City regarding litigation matters. •Attends City Council meetings to provide legal guidance. •Drafts and/or reviews staff reports, resolutions, and proposed ordinances. •Prepares and/or reviews contractual agreements with other agencies. •Reviews and makes recommendations on legislative issues. •Reviews bid requests, vendor contract documents, and purchase and sale agreements. •Provides legal advice on code enforcement matters. •Provides legal advice on employment law matters. •Makes recommendations on environmental review requirements and preparation of environmental review documents. Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 152 2023-24 Notable Budget Changes The legal program does not typically include budgeted revenues; however, services reimbursements may occur during the course of the year if the City provides legal representation, such as in development lawsuits. 2023-24 Work Plan Priorities •Risk Management – Work with staff to improve and implement Best Practices to mitigate risk in City operations and provide guidance in the administration of claims as needed. •City Codes and Ordinances – Research and prepare ordinances as necessary to implement City Council priorities. Work with staff on the annual code update to reflect changes in State law and lessons learned in ordinance implementation. •Community Development – Work with Community Development Department staff on reviews of complex projects. •General Plan Update – Provide a legal review of General Plan Update efforts to ensure language and changes are compliant with legal requirements. •Public Works – Work with Public Works department staff on environmental review, regulatory compliance, contracts and real property matters for major public works projects such as Quito Road Bridges and the Saratoga-to-the-Sea Trail. •Code Enforcement – Work with Code Enforcement staff to develop systems and procedures to minimize the need for City Attorney involvement in day-to-day code enforcement proceedings. Advise the City in connection with complex code enforcement matters and continue to manage prosecution of citations issued by the Sheriff’s office for violations of the City Code. Legal Performance Objectives and Measures 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1. a.Number of staff reports and resolutions drafted or reviewed:44 68 38 66 70 b.Number of ordinances drafted or reviewed:12 7 13 6 10 2. a.Number of agreements/contracts using standard forms reviewed:89 142 161 116 120 b.Number of agreements/contracts using non-standard forms prepared or reviewed: 8 7 11 8 8 Activity and Workload Highlights 2019/20 2020/21 2021/22 2022/23 2023/24 Actuals Actuals Actuals Actuals Budget 1.21 28 27 24 24 2.4 8 4 4 4 Review staff reports, resolutions, and proposed ordinances to ensure City is in compliance with legal requirements and applicable laws, and performing in a transparent and ethical manner. Ensure legal documents protect the City's interests and are in compliance with Federal, State, and City requirements. Number of City Council meetings or study sessions attended: Number of multi-agency agreements prepared: Non-Departmental Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 153 Disaster Recovery Program Net Revenue/ (Expenditure) Category 2019-20 Actuals 2020-21 Actuals 2021-22 Actuals 2022-23 Budget 2022-23 Est. Act. 2023-24 Adopted 8902 - Federal Grants Revenues 420 - Intergovernmental -383,132 (776)-- - Expenditures 500 - Salaries & Benefits (33,680) -(17,775)-- - 610 - Operating Expenses (13,877) (244,792) (4,234)-- - 640 - Contract Services (3,908) (27,041) (22,401)-- - 8902 - Federal Grants Total (51,465) 111,299 (45,186) - - - The City of Saratoga’s operating budget plans for normal operations, using conservative estimates for revenues, and expenditure budgets that allow for minor contingencies. When unusual weather patterns or natural disasters occur that cause resources to be expended at unexpected levels in response, and those expenditures fall outside of normal operating budget resources, staff will bring the related expenditures to the Council both for their awareness, and to approve budget funding adjustment requests to address the unexpected needs. These unplanned expenditures are accounted for in the Disaster Recovery program. Under extraordinary circumstances, Federal, State, and local governments may declare a State of Emergency. When these emergency declarations occur, Federal and State funding is made available to assist impacted agencies with the unexpected expenditures. The City may then submit claims to request reimbursement, per Federal Emergency Management Agency (FEMA) or California’s Office of Emergency Services (CalOES) guidelines. For transparency, both the emergency claim expenditures and emergency operations reimbursement claim revenues will be accounted for in this program. In past years, this budget accounted for emergency relief to public agencies for the impacts of the COVID-19 Pandemic proclaimed disaster. 2023-24 Notable Budget Changes None. City staff is working with FEMA and the CalOES to ascertain eligibility for reimbursement from the 2023 Storm Emergencies. Once eligibility and reimbursement are confirmed, City staff will request an amendment to the 2023-24 budget. Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 154 PAGE LEFT BLANK INTENTIONALLY Non-Departmental Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 155 General Obligation Bond Debt Service Fund 2001 Saratoga Community Library General Obligation Bond More than two-thirds of the electors of the City voting at a general municipal election held on March 7, 2000 approved the issuance of $15 million of General Obligation Bonds to improve, renovate, and expand the Saratoga Community Library. The Series 2001 General Obligation Bonds were subsequently issued by the City of Saratoga pursuant to Chapter 4 of Division 4 of Title 4 of the California Government Code, and a resolution of the Saratoga City Council authorizing the issuance of the Bonds. Bonds constitute general obligations of the City, and the vote to approve the bond authorized the establishment of a property tax levy to fund debt service payments. The property tax levy is added to Saratoga property owner’s annual property tax bill, collected by the County Assessor, and subsequently remitted to the City. The 2001 GO Bond’s principal and interest on the bonds was established to be payable on February 1 and August 1 of each year, commencing February 1, 2002, and ending August 1, 2031. With interest rates falling to historic lows in the fall of 2010, Council requested the 2001 GO Bonds be refunded. 2011 Saratoga Community Library General Obligation Bond The refunding was completed with the refunding effective date held until the ten-year anniversary date, August 1, 2011 to eliminate the premium penalty. As with the 2001 GO Bonds, principal and interest for the new 2011 GO Bonds are payable on February 1 and August 1 of each year, commencing February 1, 2012 and ending August 1, 2031. The refunding will save Saratoga taxpayers approximately $2.7 million over twenty years. In 2011, as part of the refunding process, the City obtained an updated credit rating. The City of Saratoga was awarded a AAA issuer credit rating by Standard and Poor’s, one of the nation’s top-ranked independent credit rating agencies. Saratoga’s solid tax base and low debt burden, high property values and personal income levels, and the expectation of continued strong financial operations by the City supported this high rating and resulted in lower debt costs and savings to the Saratoga community. Subsequent reviews have continued to award the City a AAA rating. 2023-24 Notable Budget Changes None. The Bank of New York Mellon acts as Saratoga’s fiscal agent to administer the debt servicing of the bonds. To ensure compliance with IRS Code and US Treasury Obligations, NBS Government Services provides services related to arbitrage rebate calculations and consulting services. NBS will also assist in compliance with the annual disclosure regulations of the SEC continuing disclosure Rule 15c.2-12. Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 156 August August February Fiscal Year Bond Fiscal Interest Annual Interest Interest Annual Debt Principal Year Rate Principal Payment Payment Interest Service Balance @ YE - - 2011/12 2.000%- - 228,211 228,211 228,211 11,995,000 2012/13 2.000%455,000 208,518 203,968 412,485 867,485 11,540,000 2013/14 2.000%485,000 203,968 199,118 403,085 888,085 11,055,000 2014/15 2.000%495,000 199,118 194,168 393,285 888,285 10,560,000 2015/16 2.000%500,000 194,168 189,168 383,335 883,335 10,060,000 2016/17 3.000%475,000 189,168 182,043 371,210 846,210 9,585,000 2017/18 3.000%485,000 182,043 174,768 356,810 841,810 9,100,000 2018/19 4.000%500,000 174,768 164,768 339,535 839,535 8,600,000 2019/20 4.000%525,000 164,768 154,268 319,035 844,035 8,075,000 2020/21 4.000%545,000 154,268 143,368 297,635 842,635 7,530,000 2021/22 3.000%565,000 143,368 134,893 278,260 843,260 6,965,000 2022/23 4.000%580,000 134,893 123,293 258,185 838,185 6,385,000 2023/24 4.000%610,000 123,293 111,093 234,385 844,385 5,775,000 2024/25 4.000%630,000 111,093 98,493 209,585 839,585 5,145,000 2025/26 3.500%655,000 98,493 87,030 185,523 840,523 4,490,000 2026/27 3.500%685,000 87,030 75,043 162,073 847,073 3,805,000 2027/28 3.700%705,000 75,043 62,000 137,043 842,043 3,100,000 2028/29 4.000%730,000 62,000 47,400 109,400 839,400 2,370,000 2029/30 4.000%760,000 47,400 32,200 79,600 839,600 1,610,000 2030/31 4.000%790,000 32,200 16,400 48,600 838,600 820,000 2031/32 4.000%820,000 16,400 - 16,400 836,400 - TOTALS 11,995,000 2,601,993 2,621,686 5,223,678 17,218,678 Total Bond Principal 11,995,000$ Total Bond Interest 5,223,678 Total Cost of Bond 17,218,678$ City of Saratoga 2011 Series General Obligation Bonds Debt Schedule Bond Refunding Date - August 1, 2011 11,995,000$ Non-Departmental Program Budgets CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 157 Arrowhead CFD Bond Debt Service Arrowhead Cooperative Company, Inc. (ACCI) is a private water company that was formed in 1951 to serve six homes in a neighborhood located between Rolling Hills Road and Blue Hills Lane along Prospect Road. Over the years, the Arrowhead Water Cooperative grew to serve a total of 39 homes, but the infrastructure became outdated, making the water supply tenuous and fire safety an ominous concern. The homeowners sought to transition over to San Jose Water Company to ensure a reliable water supply, however before San Jose Water Company would accept the 39 homes into their system, they required ACCI to improve the existing water infrastructure. As the cost for the improvements grew to nearly $4 million, the neighborhood petitioned the City of Saratoga to help them issue a bond to finance the improvements. The issuance of such a bond required ACCI property owners to form a Community Facility District (CFD) upon which a special assessment would be levied to collect the necessary funds to pay the Bond’s debt service payments. Subsequently, on December 21, 2016, the City Council approved the formation of the Arrowhead Community Facility District (CFD). On May 2, 2017, the CFD’s 39 residential parcel owners unanimously approved Measure L, which allowed for the assessment of a special tax levy to finance a bond. Concurrently, City staff began working with a bond financing team to issue the CFD’s Special Tax Assessment Bond, but construction delays put the bond issuance on hold. When construction was rescheduled for late 2018, the bond issuance process began again, and was finally issued on December 10, 2018 as a private sale bond. Fifteen of the 39 ACCI property owners chose to pre-pay their share of the construction costs; the remaining 24 property owners chose to participate in the bond issuance. The Bond Issuance totaled $2,498,848, which was combined with the $1,500,000 contributed to the funding account by the pre-paid property owners for the total funded cost of the project. Bond terms are 30 years at 6.05% interest. This interest rate was slightly higher than a negotiated bond sale was expected to be, but had the advantage of locking in the interest rate during a volatile rate timeframe, and the total bond amount was reduced due to a lower reserve requirement under the private sale. The bond’s debt service payment schedule is at the end of this section. These payment amounts may change over time if bond holders choose to pay off their share of the debt instead of following the bond’s payment schedule. This Debt Service program reflects the accounting for the Bond’s Debt Service functions, including tax assessment receipts, the bond’s debt interest and principal payments, earned interest, and bond administration service fees. The full amount of the project funds from both the bond sale and the contributed funds are accounted for in the Arrowhead CFD Project Agency Fund. Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 158 August August February Fiscal Year Less Approx Bond Fiscal Interest Annual Interest Interest Annual Debt Bond Debt Payoff Principal Year Rate Principal Payment Payment Interest Service Balance @ YE - - 2018/19 6.05%- - 33,176 33,176 33,176 - 2,498,848 2019/20 6.05%89,531 75,590 69,845 145,435 234,966 100,388 2,308,929 2020/21 6.05%31,090 69,845 53,332 123,177 154,267 514,797 1,763,042 2021/22 6.05%25,520 53,332 45,393 98,725 124,245 236,934 1,500,588 2022/23 6.05%23,374 45,393 42,449 87,842 111,216 73,931 1,403,283 2023/24 6.05%24,787 42,449 41,700 84,149 108,936 - 1,378,496 2024/25 6.05%26,287 41,700 40,904 82,604 108,891 - 1,352,209 2025/26 6.05%27,878 40,904 40,061 80,965 108,843 - 1,324,331 2026/27 6.05%34,232 40,061 39,025 79,087 113,319 - 1,290,099 2027/28 6.05%36,303 39,025 37,927 76,953 113,256 - 1,253,796 2028/29 6.05%38,500 37,927 36,763 74,690 113,190 - 1,215,296 2029/30 6.05%40,829 36,763 35,528 72,290 113,119 - 1,174,467 2030/31 6.05%43,299 35,528 34,218 69,745 113,044 - 1,131,168 2031/32 6.05%45,919 34,218 32,829 67,047 112,966 - 1,085,249 2032/33 6.05%48,696 32,829 31,356 64,185 112,881 - 1,036,553 2033/34 6.05%51,643 31,356 29,794 61,149 112,792 - 984,910 2034/35 6.05%54,767 29,794 28,137 57,930 112,697 - 930,143 2035/36 6.05%58,080 28,137 26,380 54,517 112,597 - 872,063 2036/37 6.05%61,594 26,380 24,517 50,897 112,491 - 810,469 2037/38 6.05%65,321 24,517 22,541 47,057 112,378 - 745,148 2038/39 6.05%69,273 22,541 20,445 42,986 112,259 - 675,875 2039/40 6.05%73,463 20,445 18,223 38,668 112,131 - 602,412 2040/41 6.05%77,908 18,223 15,866 34,089 111,997 - 524,504 2041/42 6.05%82,622 15,866 13,367 29,233 111,855 - 441,882 2042/43 6.05%87,620 13,367 10,716 24,083 111,703 - 354,262 2043/44 6.05%92,921 10,716 7,906 18,622 111,543 - 261,341 2044/45 6.05%98,543 7,906 4,925 12,830 111,373 - 162,798 2045/46 6.05%104,505 4,925 1,763 6,688 111,193 - 58,293 2046/47 6.05%110,828 1,763 -1,589 174 111,002 - -52,535 2047/48 6.05%117,532 -1,589 -5,145 -6,734 110,798 - -170,067 2048/49 6.05%124,642 -5,145 -8,915 -14,059 110,583 - -294,709 TOTALS 1,867,507 874,765 823,436 1,698,201 3,565,708 926,050 Total Bond Principal $2,793,557 Total Bond Interest 1,698,201 Total Cost of Bond $4,491,758 $2,498,848 City of Saratoga 2018 Arrowhead Community Facility District Bond Debt Schedule Bond Issue Date: December 1, 2018 Capital Improvement Program Introduction CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 159 Introduction The Capital Improvement Program (CIP) endeavours to identify all funded capital improvements planned for completion within the next five years, with cost estimates based on current year dollars. Project estimates are updated each year based upon current design specifications and bid prices. Equipment, operation, and maintenance costs incurred as an outcome of CIP projects are to be identified and included in the operating budget. As a city is comprised of diverse infrastructure, CIP projects are categorized by infrastructure type: streets; parks and trails, and facilities. The City of Saratoga’s fiscal year 2023-24 CIP represents an ongoing process through which the City identifies, prioritizes, and develops a multi-year workplan for major capital expenditures and their associated funding sources, in the effort to improve and maintain the City of Saratoga’s roadways, parks, facilities, and other infrastructure. For 2022-23, a new infrastructure section was included in the budget document to capture Saratoga’s $7.2 million allocation from the 2021 American Rescue Plan Act’s State and Local Fiscal Recovery Program Fund (ARPA SLFRF) and the related CIP appropriation for Stormwater Management Projects. Program Areas The CIP is divided into five discrete program areas as described below. Each program area’s classifications are then grouped by sub- classifications of projects the City is undertaking, and the tracking of resources expended for these purposes. The five programs are structured as follows: Streets Projects which develop and maintain the City’s roadway system to provide safe and efficient traffic flows while minimizing traffic movement and noise through residential neighborhoods; street lighting for traffic safety at intersections and throughout public streets; infrastructure development and maintenance of street surfaces, storm drain systems, curbs, gutters and sidewalks; bridges and retaining walls; and roadway landscaping to maintain the quality streetscapes of the Saratoga community. Gas Tax revenues, Road Maintenance and Rehabilitation Account funds (SB1), Refuse Impact Fees, and Santa Clara County Measure B are dedicated funding sources for the Streets Program, with total revenues of approximately $2.6 million per year. Funding for projects may also come from prior year General Fund savings, from development projects requiring mitigation of impacts, from partnerships with other jurisdictions, or from federal, state, and local grants as either part of statewide initiatives or through grant applications based on specific City projects. Parks & Trails Projects to develop and improve parks and sport fields, park structures, trails, the city plaza park, and various citywide tree planting and maintenance. Dedicated funding for the Parks Program includes a Park Development Fee collected when a development project subdivides property, and from Tree Fines collected from un-permitted tree removals. Funding may also come from prior year General Fund savings, from grants and park bond funds, and from donations. Park projects may, on occasion, include community volunteer services for minor construction and clean-up projects. American Rescue Plan Act’s State and Local Fiscal Recovery Fund (ARPA SLFRF) In March 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law with $350 billion made available through the State and Local Fiscal Recovery Funds (SLFRF) to assist state and local governments with pandemic related response and recovery efforts. Saratoga’s ARPA/SLFRF funding allocation is approximately $7.2 million, released directly to Capital Improvement Program Introduction CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 160 Saratoga in June/July of 2021 and 2022. Funds must be spent in accordance with the US Department of Treasury guidance with commitment of funds by December 31, 2024, and expenditure by December 31, 2026. Facilities Projects for purchasing, constructing, or making capital repairs to City buildings, structures, and equipment. City buildings include the Civic Center and Chamber/Theater Building, the Senior/Community Center and auxiliary structures, the Corporation Yard and structures, the North Campus, the Historical Buildings including the Saratoga Museum, the McWilliams House, and the Book-Go-Round. Funding is not specifically designated for this capital program; allocations generally come from General Fund prior year savings or grant funds applied to qualified improvements such as Community Development Block Grant funds for ADA improvements. Administrative & Technology Improvements Projects which provide operational efficiencies and improvements in the administration of City services. Administrative & Technology Improvement Projects typically include major expenditures for new systems or system upgrades, new technology equipment or services, and one-time and/or multi-year administrative projects such as converting a decades-long accumulation of microfiches, building plans, and legal documents; the development of business and community incentives; the implementation of risk management programs, and for non-recurring operational improvement projects. Revenue for administrative projects may come from the City’s Internal Service Replacement Funds, from grants, or from prior year General Fund savings. Capital Planning Guidelines and Process The standard definition of a CIP project is for construction, acquisition, rehabilitation, or non- routine maintenance work that generally costs $25,000 or more with a minimum useful life of 5 years at a fixed location. The City also includes projects under $25,000 in the CIP if they qualify as staged or ongoing improvement projects, or if they are significant multi-year projects. Additionally, non-infrastructure projects may be included in the CIP under the Administrative & Technology programs if they are one-time, operational efficiency, technology, or multi- faceted administrative projects. Under direction from the City Manager, Public Works takes the lead in the preparation of most street and parks CIP projects and Facilities takes the lead in most facility-related CIP projects. Administrative & Technology CIP projects are typically recommended by the City Manager, Administrative Services, or Community Development departments as they represent non-infrastructure projects. The CIP Procedure Process Policy establishes the guidelines to move proposed projects through the proposal preparation and capital project review process. This includes a review by the Planning Commission to ensure projects are consistent with the City’s General Plan prior to Council’s final budget review. Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 161 Streets Capital Improvement Program STREET REPAIR AND RESURFACING PROJECTS PAGE 9111-003 Pavement Management Program (PMP) 164 ROADWAY SAFETY PROJECTS 9121-001 Annual Roadway Safety & Traffic Calming 166 9121-006 Local Roadway Safety Plan 167 9121-007 Traffic Signal Controller Upgrades 168 9121-008 Safe Routes to School Implementation 169 9122-006 Prospect Road Improvements 170 STREET LANDSCAPE & BEAUTIFICATION PROJECTS 9132-006 Village Clock/ Saratoga Village Beautification 172 SIDEWALK, CURBS & STORM DRAIN PROJECTS 9141-005 Annual Sidewalks, Curbs & Gutters, Storm drains, Bridges Maintenance and Repair 173 9141-007 Guava Court Curb & Gutter Replacement 174 9141-009 Annual Corrugated Pipe Rehabilitation Project 175 9142-005 Saratoga Avenue Sidewalks 176 9142-019 Saratoga Village Crosswalk & Sidewalk Rehabilitation 179 9142-020 9142-023 9142-030 Quito Road Sidewalk Improvements Design Phases 1, 2, 3 180 9142-021 Saratoga / Sunnyvale Road Sidewalks 182 9142-022 Saratoga/ Sunnyvale Road Pathway Rehabilitation Cox Avenue to Railroad Crossing 183 BRIDGE AND RETAINING WALLS 9152-001 Fourth Street Bridge Widening 184 9152-002 9152-004 Quito Road Bridges – Preliminary Engineering, ROW Engineering 186 9152-005 Bridge Rehabilitation Project Phase 1 188 9153-003 Annual Retaining Wall Maintenance & Repairs 189 9153-005 Mt. Eden Erosion Repair 190 9153-007 Pierce Road Retaining Wall 191 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 162 Program Area Descriptions The Capital Improvement Program’s Street Improvements Program provides for a safe and functional roadway and pedestrian street system. Projects within the Street Program are classified by their primary scope of work into five project categories: • Street Resurfacing, Repair & Maintenance Projects • Roadway Safety Improvements • Street Landscape & Beautification Improvements • Sidewalks, Curbs & Storm Drain Improvements • Bridge & Hillside Support Projects Street Resurfacing, Repair & Maintenance Projects consist of projects that primarily repave and improve roadway surfaces. Projects include resurfacing for neighborhood, collector, and arterial streets on a priority basis. Funding is added to the ongoing street resurfacing project each year as available. Individual Street Repair & Resurfacing projects may be established when grants are provided for specifically identified sections of roadway. Roadway Safety Improvements consist of projects that improve roadway safety factors. Roadway safety improvement projects include small site-specific improvement items that include signs, striping, and curbs as directed by the Traffic Safety Commission; ADA projects for accessibility enhancements, such as curb ramps and audible signals; refuge lanes for traffic merging; railroad crossing improvements; radar feedback signs; and larger safety projects, such as the bicycle and pedestrian safety improvements made to Highway 9. Street Landscape & Beautification Improvements consist of projects that improve the visual component of streets. This includes median landscape improvements, city entrance signs, tree lighting, sidewalk furniture, and accessories such as trash receptacles and news rack stands. Sidewalk, Curbs, Gutters & Storm Drains consist of sidewalk improvement and repair projects; curb, gutter, and storm drain improvements; and pedestrian safety improvement projects. These projects are both general and specific, depending on funding sources. Bridge & Hillside Support Projects consist of projects that repair, replace, or rehabilitate deficient bridge structures or provide support for hillside roadways. Bridge structures fall under the guidance of federal and state regulations, and are often funded by these regulatory agencies, such as Caltrans or the Federal Highway Bridge Replacement and Rehabilitation Program (HBBR). Hillside Support projects are generally funded through transfers from the General Fund. Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 163 Funding Summary by Project Streets Capital Improvement Program Project Category & Project Name Budget Est. Actual Est. Carryover Approved Additions Est. Total Budget Street Repair & Resurfacing Projects 9111-003 - Pavement Management Program (PMP) 4,748,694 4,618,405 130,289 4,187,000 4,317,289 Street Repair & Resurfacing Projects Total 4,748,694 4,618,405 130,289 4,187,000 4,317,289 Roadway Safety Projects 9121-001 - Annual Roadway Safety & Traffic Calming 297,119 126,837 170,282 150,000 320,282 9121-004 - Traffic Signal Battery Backup 30,000 28,898 9121-006 - Local Roadway Safety Plan 9,861 3,626 6,235 - 6,235 9121-007 - Traffic Signal Controller Upgrades 80,000 58,587 21,413 - 21,413 9121-008 - Safe Routes to School Phase 1 Implementation 160,000 1,245 158,755 160,000 318,755 9122-006 - Prospect Road Improvements 1,414,441 12,461 1,401,980 - 1,401,980 Roadway Safety Projects Total 1,991,421 231,653 1,758,665 310,000 2,068,665 Street Landscape & Beautification Projects 9132-006 - Village Clock/ Saratoga Village Beautification 8,626 6,066 2,560 - 2,560 9132-007 - Big Basin Way/Blaney Trash Can Replacement 50,802 44,730 Street Landscape & Beautification Projects Total 59,428 50,796 2,560 - 2,560 Sidewalk, Curbs & Storm Drain Projects 9141-005 - Annual Sidewalks, Curbs & Gutters, Storm drains, Bridges Maintenance and Repair 291,431 271,143 20,288 250,000 270,288 9141-007 - Guava Court Curb & Gutter Replacement 280,000 27,500 252,500 - 252,500 9142-005 - Saratoga Avenue Sidewalks 417 - 417 - 417 9142-019 - Saratoga Village Crosswalk & Sidewalk Rehabilitation 385,159 22,363 362,796 - 362,796 9142-020 - Quito Road Sidewalk Improvements Design 43,370 - 43,370 - 43,370 9142-021 - Saratoga / Sunnyvale Road Sidewalks 92,158 - 92,158 - 92,158 9142-022 - Saratoga/ Sunnyvale Road Pathway Rehabilitation Cox Avenue to Railroad Crossing 50,000 - 50,000 - 50,000 9142-023 - Quito Road Sidewalk Gap Closure Phase 1 182,609 26,030 156,579 - 156,579 9142-030 - Quito Road Sidewalk Rehabilitation Gap Closure Phase 2 300,000 - 300,000 - 300,000 9142-NEW - Annual Corrugated Pipe Rehabilitation Project - - - 300,000 300,000 Sidewalk, Curbs & Storm Drain Projects Total 1,625,145 347,037 1,278,108 550,000 1,828,108 Bridge and Retaining Wall Projects 9152-001 - Fourth Street Bridge Widening 575,449 43,810 531,639 42,000 573,639 9152-002 - Quito Road Bridges – Preliminary Engineering 157,876 17,136 140,740 - 140,740 9152-004 - Quito Road Bridge – Right of Way (ROW) Acquisition 13,073 12,763 310 - 310 9152-005 - Bridge Rehabilitation Project Phase 1 350,000 - 350,000 350,000 700,000 9153-003 - Annual Retaining Wall Maintenance & Repairs 365,270 134,604 230,666 200,000 430,666 9153-005 - Mt. Eden Erosion Repair 59,621 59,497 124 - 124 9153-007 - Pierce Road Retaining Wall 357,470 320,589 36,881 - 36,881 Bridge and Retaining Wall Projects Total 1,878,760 588,400 1,290,360 592,000 1,882,360 Total Streets CIP 10,303,447 5,836,291 4,459,982 5,639,000 10,098,982 2023-242022-23 Expenditures CLOSED CLOSED Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 164 Pavement Management Program (PMP) Project No. 9111-003 Project Manager – Emma Burkhalter, Associate Civil Engineer The City has a comprehensive annual Pavement Management Program (PMP) that includes road resurfacing and maintenance to keep the City's single largest piece of infrastructure in good condition. The PMP combines regular maintenance of roadways to prevent road conditions from rapidly deteriorating and significant repairs for streets with the highest need. Resurfacing City streets regularly extends the lifetime of the roadways and minimizes the need for larger and more costly projects in the future. Keeping streets in good condition also reduces liability risks and staff time required for minor repair work. An engineering consultant assesses City roads using the Paving Condition Index (PCI) every two to three years. PCI measures average road conditions on a scale of 0 to 100, which, when combined, then provides an overall score of City roads. A zero (0) PCI indicates that a road has failed, and a PCI of 100 indicates that a road is in excellent condition. The following PCI brackets communicate the relative significance of a PCI score in ranges: In the most recent assessment in 2019, the City’s overall PCI was calculated to be 67. The annual PMP project scope identifies streets based on several factors, including PCI, maintenance recommendations, and budgetary constraints. This information, combined with the City Engineer's observations and residents' input, determines which streets to include in the annual PMP. According to a 2021 study, an annual PMP project of $4 million would maintain the current PCI of 67, and a project of $7 million increases the PCI. Saratoga does not have a structural funding source to fill the gap of $1.4 to $4.4 million necessary to maintain or improve the current PCI. Each year, approximately $200,000 is used for improvements such as signage installations, engineering studies, roadway striping, curb and gutter repair, materials purchases, and other miscellaneous repairs within the City rights-of-way. Project Milestones Identified/proposed Approved/funded 2016-17 Design/Construction ongoing Completion n/a Excellent Very good Good Poor Very Poor 90 to 100 70 to 89 50 to 69 25 to 49 0 to 24 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 165 Funding Source: 2023-24 revenue dedicated to the PMP totals an estimated $2.6, with 61 percent from the State and 26 percent from the County. Only 13 percent of the structural revenue for the PMP originates from a City source, the refuse impact fee. The 2023-24 budget includes $1.34 million in additional project fund from the General Fund’s Future Capital Reserve. Pavement Management Program (PMP) (continued) Project No. 9111-003 Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design - 55,408 (55,408) - (55,408) 8115 - Supplies, Materials, Other - 102,737 (102,737) - (102,737) 8116 - Construction 4,748,694 4,460,260 288,434 4,187,000 4,475,434 Total 4,748,694 4,618,405 130,289 4,187,000 4,317,289 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 166 Annual Roadway Safety & Traffic Calming Project No. 9121-001 Project Manager – Emma Burkhalter, Associate Civil Engineer In conjunction with the Traffic Safety Commission (TSC), this project funds safety and traffic calming improvements. The Traffic Safety Commission (TSC) and staff meet on a bi- monthly basis to review and assess traffic safety matters throughout the City. As part of this review, the TSC periodically recommends improvements to enhance safety and/or calm traffic. Most improvements are small and fall within the scope of the operating budget. Occasionally, more costly remediation is warranted, and Roadway Safety and Traffic Calming funds are used. Examples include speed humps, radar signs, median chockers, bulb-outs, and enhanced crosswalks. Additionally, the TSC reviews the Unfunded CIP traffic projects each year and prioritizes according to safety and proximity to schools. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -8,701 (8,701)-(8,701) 8116 - Construction 297,119 118,136 178,983 150,000 328,983 Total 297,119 126,837 170,282 150,000 320,282 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement X Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed 2008 Approved/funded 2020-21 Design/Construction ongoing Completion n/a Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 167 Local Roadway Safety Plan Project No. 9121-006 Project Manager - Emma Burkhalter, Associate Civil Engineer This project will develop a Local Roadway Safety Plan (LRSP). This project applies to the Health and Safety Issues, Efficiencies and Business or Community Support Priority Factors. The City of Saratoga’s goal is to develop a Local Roadway Safety Plan (LSRP) to improve the safety conditions of its roadways for all modes of transportation. Given the City’s suburban context and its unique roadway characteristics such as wide and winding residential roads with lack of adequate continuous sidewalks and biking facilities, it is important to develop a safety plan to enhance the safety conditions for all road users. To achieve this goal, the City will consider a safe system approach, prioritizing high collision areas. This proactive approach will identify the most critical safety risks based on the patterns in these areas and will highlight other areas of high risk that may not have yet experienced a high volume of collisions. City staff and a consultant will undertake the following tasks in developing the Local Roadway Safety Plan. A comprehensive safety analysis on public roads in the City of Saratoga will be conducted to produce a Local Roadway Safety Plan consistent with Caltrans requirements and to position the City to be strategic and competitive for HSIP and other funding sources. Tasks include safety data analysis, selection of emphasis areas, community engagement, and drafting the LRSP Document. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -3,626 (3,626)-(3,626) 8116 - Construction 9,861 -9,861 -9,861 Total 9,861 3,626 6,235 -6,235 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2021-22 Design/Construction Completion 2022-23 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 168 Traffic Signal Controller Upgrades Project No. 9121-007 Project Manager - Macedonio Nunez, Engineering Services Manager There are a total of 15 traffic signalized intersections in Saratoga. During the completed city-wide Citywide Signal Upgrade Project - Phase II upgraded traffic signal adaptive systems for the 6 signalized intersections on Saratoga Avenue, the City’s most traveled street. This completed project upgraded old traffic controllers with the required new controllers and software for coordination between traffic signalized intersections. This new project will upgrade the remaining 9 traffic signal intersection controllers. The City utilizes the Smart City Signals traffic management system to provide citywide traffic signal monitoring capabilities over cellular and cloud-based solutions. The system also serves as the network for traffic signal adaptive operations along the Saratoga Avenue- Fruitvale Avenue corridors. This proposed CIP will allow the City additional traffic surveillance opportunities. The new equipment will be viewable by City and Emergency Operations staff over the Smart City Signals cloud-based platform that in conjunction with recently installed battery-back up systems at traffic signals will allow for remote monitoring during power outages, incidents, and natural disaster events. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8115 - Supplies, Materials, Other -58,587 (58,587)-(58,587) 8116 - Construction 80,000 -80,000 -80,000 Total 80,000 58,587 21,413 -21,413 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2022-23 Approved/funded 2022-23 Design/Construction 2022-23 Completion 2023-24 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 169 Safe Routes to School Implementation Plan Project No. 9443-003 Project Manager - Mainini Cabute, Environmental Programs Manager This project implements the Safe Routes to School (SRTS) Masterplan and the SRTS Need Assessment CIP. Improves pedestrian and student safety around schools. Visit https://www.saratoga.ca.us/509/Safe-Routes-to- School for more information on the SRTS Masterplan. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -1,245 (1,245)-(1,245) 8116 - Construction 160,000 -160,000 160,000 320,000 Total 160,000 1,245 158,755 160,000 318,755 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate x Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2022-23 Design/Construction 2022-23 Completion 2023-24 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 170 Prospect Road Improvements Project No. 9122-006 Project Manager - Macedonio Nunez, Engineering Services Manager This project will improve the Prospect Avenue corridor through the addition of roadway medians and a variety of pedestrian and bicycle improvements. Project work will occur along a 1.9-mile section of Prospect Road between Saratoga-Sunnyvale Road and Lawrence Expressway. Phase 1: This phase was completed in July 2019, which installed roadway medians, sidewalks, bicycle loops, and accessible ramps to improve the safety of Prospect Road in Saratoga. This phase physically reduced the width of the road, channeling vehicles into defined turn lanes, reducing the threat of vehicles crossing the center lane, and creating safer pedestrian crossings. Improvements to existing pedestrian, bicycle and VTA bus stop facilities, will enhance pedestrian accessibility and provide a safe and convenient walking and bicycling experience. Phase 2: This phase consists of improvements such as new irrigation and landscaping to 3 existing medians on Prospect Rd. between Titus Ave. and English Dr. that had not been worked on during the Phase 1 contract. On Saratoga Ave. & Cox Ave. signalized intersection improvements will improve safety and the Level of Service. This will include installing new traffic signal light poles, adding a second westbound left turn lane from Cox Ave. to southbound Saratoga Ave. which will require modification to the existing eastbound Cox Ave. number one lane from a combo through and left turn lane to an only left turn lane. The improvements will remove the pedestrian island on the south/west corner and install a bulb-out extension concrete corner. Also, at all the corners, the improvements will include new ADA ramps. Funding Source: General Fund & Grant Funds Project Milestones Identified/proposed Approved/funded 2013-14 Design/Construction 2022-23 Completion 2023-24 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 171 Prospect Road Improvements (continued) Project No. 9122-006 Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -12,461 (12,461)-(12,461) 8116 - Construction 1,414,441 -1,414,441 -1,414,441 Total 1,414,441 12,461 1,401,980 -1,401,980 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 172 Village Clock/ Saratoga Village Beautification Project No. 9132-006 Project Manager - John Cherbone, Public Works Director This project will add a clock in Saratoga Village and fund additional Village beautification projects with any remaining funds. The Village, Saratoga’s historic downtown, is located on Big Basin way off Saratoga-Los Gatos Road. The Village is a destination for those looking for unique shops, fine dining, wine tasting, spa experiences and more. The lovely downtown atmosphere with hanging flower baskets, floral displays meticulously maintained by volunteers, and the iconic Memorial Arch helped make Saratoga a top contender in the 2015, 2016, and 2017 America in Bloom competitions. This project added a clock in the Village near its entry at Saratoga-Los Gatos Road and Big Basin Way. The clock will serve to further enhance the aesthetics of Saratoga’s Village. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8115 - Supplies, Materials, Other -6,066 (6,066)-(6,066) 8116 - Construction 8,626 -8,626 -8,626 Total 8,626 6,066 2,560 -2,560 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage X Availability of external funding source X Community Engagement X Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2020-21 Design/Construction ongoing Completion n/a Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 173 Annual Sidewalks, Curbs & Gutters, Storm drains, Bridges Maintenance and Repair Project No. 9141-005 Project Manager - Rick Torres, Public Works Manager This project is one of the capital projects that the City council has designated as a priority for capital funding, as it helps preserve and maintain critical City infrastructure on an ongoing basis. Sidewalks: There are approximately 17 linear miles of sidewalk in Saratoga. Sidewalk repairs ensure that the City’s sidewalks are maintained in good condition, minimizing tripping hazards, reducing liability risk, and preventing larger and more costly improvement projects in the future. Approximately 35,000 square feet of sidewalk is repaired each year. Curbs and Gutters: Ongoing repairs to curbs and gutters prevent flooding through improved water runoff. Additionally, well maintained curbs and gutters improve pedestrian and bicycle safety by reducing tripping hazards. Damage to curbs and gutters is most frequently caused by tree roots or impact from a heavy vehicle. Storm drains: Storm drains are inspected to identify failures, or potential failures. Sections of storm drains that have failed, which often results in flooding, are either replaced or repaired. Bridges: Each year Caltrans inspects all bridges in the state, including locally owned bridges, provides repair recommendations, determines the safe load capacity of all bridges, and assists in specifications and estimates for bridge maintenance projects. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -9,320 (9,320)-(9,320) 8116 - Construction 291,431 261,823 29,608 250,000 279,608 Total 291,431 271,143 20,288 250,000 270,288 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2016-17 Design/Construction ongoing Completion n/a Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 174 Guava Court Curb & Gutter Replacement Project No. 9141-007 Project Manager - John Cherbone, Public Works Director This project will remove and replace approximately 630 linear feet of vertical curb. The project also includes removing approximately 5025 square feet of roadway and replacing it with a landscape strip for beautification. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 280,000 27,500 252,500 -252,500 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability X Other: Business/Community Support X Project Milestones Identified/proposed Approved/funded 2022-23 Design/Construction 2022-23 Completion 2023-24 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 175 Annual Corrugated Metal Pipe Rehabilitation Project No. 9141-009 Project Manager - Macedonio Nunez, Engineering Services Manager This Project will fund the ongoing rehabilitation of existing deteriorating corrugated metal pipe (CMP) that is used for the storm drain system throughout the City. The aging CMP, once it is deteriorated and compromised, will cause an underground cavity which can collapse and cause underground soil erosion that results in sinkhole incidents. In January 2023, two major storm drain failures occurred during the storms due to the failed CMP. The first occurred in Parker Ranch adjacent to a city trail. The storm drain CMP failed, causing severe erosion to the storm drain outfall and trail. The trail segment has been temporary closed until repairs are completed. Parker Ranch embankment is scheduled to be repaired late February. The second failure occurred to a culvert CMP underneath Pierce Road near Pike Road. The failure caused severe erosion to the roadway embankment. This incident was deemed an emergency repair to save Pierce Road from complete failure. Pierce Road roadway embankment repair work was completed on January 27th. Both these locations will require CMP replacement soon. The City Storm Drain Master Plan, which is currently under development by Sandis Engineering, calls out future repair work to CMPs. This will require expenditures in the hundreds of thousands of dollars. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction ---300,000 300,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2023-24 Approved/funded 2024-25 Design/Construction Completion Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 176 Saratoga Avenue Sidewalks Project No. 9142-005 Project Manager – Macedonio Nunez, Engineering Services Manager Since 1992, the City has been adding new sections of sidewalk along Saratoga Avenue, using Transit Development Act (TDA) funds to create a continuous sidewalk between the Village and Quito Road. The City generally allows these funds to accumulate over several years and identifies the pathway sections to be completed along Saratoga Avenue. Sidewalks provide a safe path for pedestrians away from the roadway. The sidewalk also allows residents in wheelchairs or other wheeled devices to travel in the City. Furthermore, extension of the City’s sidewalk system increases the City’s walkability and adds to the recreational opportunities available to residents. This project has been ongoing since 1992 and will continue until all sidewalk gaps are closed. To date, this CIP had completed Pedestrian Safety Improvements along Saratoga Ave at the following locations: •Reconstruction of deteriorating existing asphalt concrete pathway between Shadow Oaks and Heritage Oak •Crestbrook Drive bulbout ramp/crosswalk improvement •Herriman Avenue bulbout ramp/crosswalk improvement •La Paloma Avenue intersections bulbout ramp/crosswalk improvement •Bus Stop locations near the intersection of Highway 9 •Sidewalk and ADA ramps at the frontage of the Old Post Office to Park Place •Handicap ramp between Juniper Lane and Douglass Ln (just south of Douglass Ln on the southbound direction) •Upgrade deteriorating handicap ramps along Saratoga Ave between Lutheria Way to Scotland Dr. Funding Source: General Fund & Grant Funds Project Milestones Identified/proposed 1992 Approved/funded 2008-09 Design/Construction ongoing Completion n/a Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 177 Saratoga Avenue Sidewalks (continued) Project No. 9142-005 Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 417 -417 -417 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 178 PAGE LEFT BLANK INTENTIONALLY Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 179 Saratoga Village Crosswalk & Sidewalk Rehabilitation Project No. 9142-019 Project Manager - Macedonio Nunez, Engineering Services Manager This project is located on Big Basin Way between 5th Street and 6th Street. The Village, Saratoga’s historical downtown, offers shops, restaurants, salons, and office space. The City has been making a series of improvements to the Village to make it a more walkable destination, including installation of pedestrian bulb-outs and enhanced crosswalks to make pedestrians more visible, as well as installation of benches, bike racks, aesthetic improvements, and a renovation of Blaney Plaza to make the Village a more desirable place to gather. This project will improve the crosswalks at Big Basin Way and 5th Street, as well as the crosswalk in front of Rose’s Market. These improvements will include installation bulb-outs, enhanced crosswalks, decorative landscaping, and benches. This project has been delayed due to Caltrans scheduling. Funding Source: General Fund & Grant Funds Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -22,363 (22,363)-(22,363) 8116 - Construction 385,159 -385,159 -385,159 Total 385,159 22,363 362,796 -362,796 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2020-21 Design/Construction Completion Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 180 Quito Road Sidewalk Improvements Design Project Nos. 9142-020, 9142-023, 9142-030, 9142-TBD Project Manager - Macedonio Nunez, Engineering Services Manager Quito Road travels from Lawrence Expressway to Highway 9.The road serves as a connection to several local schools in Saratoga and nearby cities. Currently, there are some sections of sidewalk along the east side of Quito. However, the street lacks a continuous stretch of sidewalk. The Traffic Safety Commission (TSC) received numerous complaints from residents who felt unsafe walking along Quito Road. Subsequently, the TSC assessed Quito Road and recommended filling sidewalk gaps. Design (Project No. 9142-020): The project will include the design of new segments of sidewalk on Quito Road and reconstruction of existing facilities to improve pedestrian safety and access in the area. This phase covered costs associated with initial planning, including topographical work of the stretch of Quito Road from State Route 85 to Allendale Avenue. Phase 1 (Project No. 9142-023): This phase funds the design and construction to upgrade existing walkways and fill in gaps on the Southbound side of Quito Road, from Allendale Avenue to Marshall Lane. Phase 2 (Project No. 9142-030): This phase funds the sidewalk gap closure and handicap ramp installation along the northbound lane from Pollard Road to Allendale Avenue. Phase 3 (Project No. tbd): Phase 3 includes both northbound and southbound sides of the road from Allendale Avenue to Highway 85. Funding Source: General Fund Project Milestones Identified/proposed Approved/funded 2021-22 Design/Construction 2022-23 & 2023-24 Completion 2023-24 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 181 Quito Road Sidewalk Improvements Design (continued) Project Nos. 9142-020, 9142-023, 9142-030, 9142-TBD Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 9142-020-8116 - Construction 43,370 -43,370 -43,370 9142-023-8116 - Construction 182,609 26,030 156,579 -156,579 9142-030-8116 - Construction 300,000 -300,000 -300,000 Total 525,979 26,030 499,949 -499,949 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate X Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 182 Saratoga - Sunnyvale Road Sidewalks Project No. 9142-021 Project Manager - Macedonio Nunez, Engineering Services Manager In April 2017, the City Council voted to allow a homeowner to purchase a 19-foot wide portion of Saratoga-Sunnyvale Road that lies along the property’s boundary, which the City was not using for roadway purposes, for $92,183. The proceeds from the sale were assigned to be used for pedestrian improvements along Saratoga-Sunnyvale Road. As part of the 2020-21 Capital Improvement Program, the City Council adopted the staff recommendation that the funds be used to design a walkway on Saratoga-Sunnyvale Road from Reid Lane to Big Basin Way. Funding Source: General Fund & Grant Funds Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 92,158 -92,158 -92,158 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed 2017 Approved/funded 2019-20 Design/Construction 2023-24 Completion 2023-24 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 183 Saratoga-Sunnyvale Road Pathway Rehabilitation Cox Avenue to Railroad Crossing Project No. 9142-022 Project Manager - Rick Torres, Public Works Manager This project will repair the uplifted section of pathway from Cox Avenue to the railroad crossing. Over time, the condition of the pathway along Saratoga-Sunnyvale Road has deteriorated. Age and tree-root damage have broken up the pathway. This project will remove and replace uplifted sections of pathway on Saratoga-Sunnyvale Road from Cox Avenue to the Railroad Crossing. It also includes repair and adjustment to PG&E gas valves located along the pathway being replaced. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 – Construction 50,000 -50,000 -50,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2020-21 Design/Construction 2022-23 Completion 2022-23 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 184 Fourth Street Bridge Widening Project No. 9152-001 Project Manager – Macedonio Nunez, Engineering Services Manager The 4th Street Bridge was constructed in 1939 and crosses Saratoga Creek near the entrance to Wildwood Park. This project will widen the bridge to accommodate a sidewalk for pedestrian traffic, as well as make structural improvements to bring the bridge in compliance with current standards. A California Department of Transportation review of Saratoga bridges in 2004 listed the 4th Street Bridge as being in “generally good condition.” There are 20 bridges located in the City with 9 of these bridges passing over Saratoga Creek. This project will be completed in three phases; •Phase 1: Preliminary engineering and environmental, right-of-way acquisition, and construction with a total estimated cost of $1.41 million. The Preliminary Engineering and Environmental phase will include survey work, constraint analysis, environmental review and design with an estimated cost of $455,000. •Phase 2: The Right-of-way acquisition phase will include the acquisition or obtaining rights to access property needed to widen the bridge, with an estimated cost of $10,000. •Phase 3: The construction phase will include work on widening the bridge with an estimated cost of $945,000. The project has sufficient funding for the preliminary engineering, environmental, and right-of-way acquisition. Additional funding will be needed to complete the construction phase of this project. Funding Source: General Fund & Grant Funds Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction 2023-4 & 2024-25 Completion 2025-26 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 185 Fourth Street Bridge Widening (continued) Project No. 9152-001 Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -31,276 (31,276)-(31,276) 8115 - Supplies, Materials, Other -12,533 (12,533)-(12,533) 8116 - Construction 575,449 -575,449 42,000 617,449 Total 575,449 43,810 531,639 42,000 573,639 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 186 Quito Road Bridges – Preliminary Engineering, ROW Engineering Project Nos. 9152-002, 9152-004, 9152-TBD Project Manager - Macedonio Nunez, Engineering Services Manager Periodically, the California Department of Transportation (Caltrans) conducts assessments of bridges in Saratoga. Caltrans rated the two bridges on Quito Road between Sobey Road and Vessing Road as needing replacement. Additionally, the bridges are not wide enough to meet current CalTrans standards for roadway size. This project will rebuild the bridges, bringing the width of the Quito Road bridges in compliance with State roadway standards, which will ultimately increase safety for people using Quito Road. Both bridges pass over San Tomas Creek, which flows through Saratoga, Campbell, Los Gatos, Monte Sereno, San Jose, and Santa Clara. As these two bridges fall along the city limit lines of Saratoga and Los Gatos and along the San Tomas Creek, Los Gatos, Saratoga, and the Santa Clara Valley Water District all share in the boundaries and responsibilities. As Saratoga holds the primary share of allocated responsibility, the City agreed to manage this bridge replacement project. A cooperative agreement between the three agencies has been executed with Saratoga named as the lead agency. •Preliminary Engineering Phase (Project No. 9152-002): Preliminary design work for the bridge replacement was completed as part of this phase. Staff anticipates updates to the design will be required prior to start of construction in order to bring the designs up to current Caltrans standards. •Right of Way Acquisition Phase (Project no. 9152-004): Replacement and widening of the two bridges requires the acquisition of 4,532 square feet of easements from three privately owned parcels adjoining the existing right of way. This Phase funds the right-of-way acquisition needed to build the bridges. •Construction Phase (Project No. tbd): This phase will fund the reconstruction of the 2 bridges. Funding Source: General Fund & Grant Funds Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction 2023-24 Completion 2024-25 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 187 Quito Road Bridges – Preliminary Engineering, ROW Engineering (continued) Project Nos. 9152-002, 9152-004, 9152-TBD City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 9152-002-8116 - Construction 157,876 17,136 140,740 - 140,740 9152-004-8116 - Construction 13,073 12,763 310 - 310 Total 170,949 29,899 141,050 - 141,050 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 188 Bridge Rehabilitation Project Project Nos. 9152-005, 9152-TBD Project Manager - Poh Yee, Civil Engineer Caltrans issues annual bridge inspection reports to the City for bridges within the City’s jurisdiction, Recent reports have identified deficiencies in 6 City bridges the require repair work. This project will address those deficiencies by repairing bridge abutments, scouring, deck rehabilitation and railings. If not completed, bridges will continue to deteriorate and the costs to make the repairs will increase substantially. The project requires review and permits from Santa Clara Valley Water District, Regional Water Control Board, Fish & Wildlife, and Army Corps of Engineers. •Phase 1 (Project No. 9152-005): This phase mitigates deficiencies at 3 of 6 bridge locations called out in the Caltrans inspection reports. •Phase 2 (Project No. 9152-xxx): This phase mitigates deficiencies at the remaining 3 of 6 bridge locations called out in the Caltrans inspection reports which were not addressed in Phase 1. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 350,000 -350,000 350,000 700,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed 2023-24 Approved/funded Design/Construction Completion Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 189 Annual Retaining Wall Maintenance & Repairs Project No. 9153-003 Project Manager - Poh Yee, Civil Engineer The City is responsible for retaining walls throughout the City. These retaining walls help prevent soil erosion, provide stability for hillsides, and prevent surface runoff from obstructing roadways. In 2016-17, winter storms caused damage to retaining walls in various locations in the City. Rather than funding projects individually, the City Council created the Annual Retaining Wall Maintenance & Repairs capital project to maintain existing retaining walls, monitoring them for signs of failure, and make repairs as needed. This project is one of several capital projects identified as a priority by the City Council and receives $200,000 each year, depending on funding availability. Retaining walls with active failures on Pierce Road, Mount Eden Road, Palomino Way, Continental Circle, Bohlman and Prospect Road and Saratoga Heights will be monitored and prioritized during the 2022-23. Funding Source: General Fund City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2016-17 Approved/funded 2017-18 Design/Construction ongoing Completion n/a Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -82,058 (82,058)-(82,058) 8116 - Construction 365,270 52,546 312,724 200,000 512,724 Total 365,270 134,604 230,666 200,000 430,666 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 190 Mt. Eden Erosion Repair Project No. 9153-005 Project Manager - Poh Yee, Civil Engineer This project stabilized the portion of the Mt. Eden Rd shoulder where it had been eroded by Calabazas Creek. An external consultant evaluated the erosion and prepared a design to stabilize the roadway. The construction required the City to obtain State permits, as it takes place along the edge of the creek. Construction began in 2021 and was completed in 2021-22. State permit requirements for 5-year follow-up monitoring will keep the project open through 2027-28. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 59,621 59,497 124 -124 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability X Other: Project Milestones Identified/proposed Approved/funded 2019-20 Design/Construction 2020-21 & 2021-22 Completion 2027-28 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 191 Pierce Road Retaining Wall Project No. 9153-007 Project Manager - Poh Yee, Civil Engineer Erosion of the steep embankment above Calabazas Creek is threating failure of the retaining wall that supports a section of Pierce Road near Chalet Clotilde. The retaining wall was inspected by the City Geologist who recommends repair as soon as possible. Pierce Road is very narrow at this location which means it will be necessary to temporarily close the road during construction. Notices will be mailed to residents near the work and message signs will be placed at strategic locations to notice drivers. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 357,470 320,589 36,881 -36,881 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2020-21 Design/Construction 2022-23 Completion 2022-23 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 192 PAGE LEFT BLANK INTENTIONALLY Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 193 Park & Trail Capital Improvement Program CITYWIDE PROJECTS PAGE 9211-001 Annual Parks, Trails, Grounds, & Medians Infrastructure 196 9211-002 City-wide Tree Replanting Program 197 PARK PROJECTS 9222-004 Hakone Gardens Infrastructure Improvements 198 9222-008 Hakone Gardens Pond Renovation – Phase I 199 9222-009 Hakone Gardens Neighbor Wood Fence Replacement 200 TRAILS & OPEN SPACE PROJECTS 9226-005 Quarry Park Maintenance Building Utility Project 201 9252-003 El Quito Park Pickleball Courts 203 9274-002 Blue Hills Elementary Pedestrian Crossing at Union Pacific Railroad (UPRR) 204 9274-003, 9274-004 Joe’s Trail Phase 2 & Phase 3 207 9277-004 Saratoga Village to Quarry Park Walkway 208 9277-005 Village Oaks Bridge Reconstruction and Erosion Control 210 9277-006 Hakone Gardens to Quarry Park Trail Gap Closure Phase 1 Design & Acquisition 211 9281-005 Park and Trail Fire Mitigation 212 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 194 Program Area Descriptions The Parks & Trails Program provides for capital improvements to the City of Saratoga’s neighborhood and city parks and plaza, sports fields, bike and pedestrian trails, and open space areas throughout the city. Projects within the Parks & Trails Program are classified as General/Citywide Park Improvements, City Park Projects, Neighborhood Park Projects, Sport Park Projects, or Trail and Open Space Projects. Within the project classification, the projects are sub-classified by site. This structure allows for the tracking of resources by individual park, trail, or open space area, and by specific project work completed. General Repairs & Maintenance General and citywide park and trail repair projects provide minor projects that are not specified bodies of work to an individual site, and for citywide projects that apply to multiple sites. Projects could include fence repairs or improvements, tree removals, park furniture and equipment, lighting or irrigation enhancements, structure repairs, or various minor projects that arise to improve the infrastructure. This category also includes the Citywide Tree Replanting project which is primarily funded through tree fines and used for tree planting and irrigation throughout the City. A third subcategory is funding projects for open space contributions. City Parks Projects which improve the larger parks which draw the entire community. These include Quarry Park, Wildwood Park, Hakone Gardens, Heritage Orchard Park, Blaney Plaza and the Village Historical Park. City Parks generally have features and attractions in addition to playground equipment, picnic areas, and ball courts. Neighborhood Parks Projects for the City’s smaller parks located within neighborhoods. These include Azule Park, Beauchamps Park, Bellgrove Park, Brookglen Park, Foothill Park, Gardiner Park, Kevin Moran Park, and Ravenswood Park. Sport Parks & Facilities Projects Improvement projects at the City’s sport field type parks. These sites include Congress Springs Park, El Quito Park, and West Valley Soccer Fields. Trails & Open Space Projects Joe’s Trail at Saratoga De Anza, Saratoga Village to Quarry Park Walkway and Saratoga-to-the-Sea Trail. Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 195 Funding Summary by Project Park & Trail Capital Improvement Program Project Category & Project Name Budget Est. Actual Est. Carryover Approved Additions Est. Total Budget Citywide Park & Trail Projects 9211-001  - Annual Parks, Trails, Grounds, & Medians Infrastructure  282,872 125,759 157,112 250,000 407,112 9211-002  - City-wide Tree Replanting Program  9,180 - 9,180 - 9,180 Citywide Park & Trail Projects Total 292,051 125,759 166,292 250,000 416,292 Park Projects 9221-002 - Orchard Irrigation & Tree Replacement 40,948 40,048 9222-004  - Hakone Gardens Infrastructure Improvements   124,019 58,461 65,557 25,000 90,557 9222-008  - Hakone Gardens Pond Renovation – Phase I  300,000 - 300,000 - 300,000 9222-009 - Hakone Gardens Neighbor Wood Fence Replacement  75,000 - 75,000 - 75,000 9226-005 - Quarry Park Maintenance Building Utility Project  35,000 - 35,000 - 35,000 9252-002 - Beauchamps Park Playground Replacement 296,051 295,996 9252-003 - El Quito Park Pickleball Courts  154,299 129,673 24,626 - 24,626 9281-005 - Park and Trail Fire Mitigation  100,000 - 100,000 100,000 200,000 Park Projects Total 1,125,316 524,177 600,184 125,000 725,184 Trail & Open Space Projects 9274-002  - Blue Hills Elementary Pedestrian Crossing at Union Pacific Railroad (UPRR)  235,970 235,970 - - - 9274-003 - Joe’s Trail Phase 2 & Phase 3 132,000 1,245 130,755 - 130,755 9274-004 - Joe’s Trail Phase 2 & Phase 3 264,000 - 264,000 - 264,000 9275-002 - Trail Pet Stations 25,000 - CLOSED - - 9277-004  - Saratoga Village to Quarry Park Walkway  452,800 73,811 378,989 - 378,989 9277-005 - Village Oaks Bridge Reconstruction and Erosion Control  30,000 - 30,000 - 30,000 9277-006  - Hakone Gardens to Quarry Park Trail Gap Closure Phase 1 Design & Acquisition  50,000 - 50,000 - 50,000 Trail & Open Space Projects Total 1,189,770 311,026 853,744 - 853,744 Total Park & Trail CIP 2,607,137 960,962 1,620,220 375,000 1,995,220 CLOSED CLOSED 2023-242022-23 Expenditures Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 196 Annual Parks, Trails, Grounds, & Medians Infrastructure Project No. 9211-001 Project Manager – Shawn Gardner, Public Works Manager This project annually funds infrastructure maintenance and replacement related to parks, trails, grounds, and medians to keep them beautiful and functioning properly for the enjoyment of Saratoga residents. This project is one of the priority projects identified by the City Council and receives an annual transfer of $250,000 from the General Fund, as funding permits. In 2021- 22, the City Council increased the priority project funding goal from $125,000 to $250,000. •Parks: Infrastructure at parks includes, but is not limited to, playground equipment, restroom and concessions buildings, fencing, tennis and basketball courts, playfields, drinking fountains, pathways, and parking lots. •Trails: Trail infrastructure includes pathways, signage, irrigation systems, ramps & parking lots. •Grounds: Grounds infrastructure is located at properties including the Civic Center, Saratoga- Prospect Center, Library, and Blaney Plaza. •Medians: Median infrastructure includes irrigation systems located at medians throughout the City. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8115 - Supplies, Materials, Other -3,304 (3,304)-(3,304) 8116 - Construction 282,872 122,455 160,416 250,000 410,416 Total 282,872 125,759 157,112 250,000 407,112 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship X Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2011-12 Approved/funded 2011-12 Design/Construction ongoing Completion n/a Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 197 Citywide Tree Replanting Program Project No. 9211-002 Project Manager - Shawn Gardner, Public Works Manager This ongoing project provides for the upkeep of the City’s urban forest through the planting of City trees and shrubbery, installation of irrigation for new plantings, tree maintenance, and removal of damaged trees on City property. To mitigate the loss of the urban forest, the City assesses fines for unpermitted tree removal and related violations, and then uses these funds to reforest the City. Fines provide the funding for the cost to plant new trees and shrubbery and if needed, to install irrigation to sustain the new plantings on public property. Staff sometimes complete citywide tree replanting work; however, larger-scale projects may be contracted out to tree and landscape contractors. The Citywide Tree Replanting Program offsets tree planting and related maintenance expenses that are funded through the City’s operating budget. Additionally, maintaining the City’s urban tree canopy adds to Saratoga’s attractiveness and increases its desirability. To some degree, this helps to generate higher property values and consequently higher property tax revenues received by the City. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 9,180 -9,180 -9,180 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability x Other: Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction ongoing Completion n/a Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 198 Annual Hakone Gardens Infrastructure Improvements Project No. 9222-004 Project Manager - Poh Yee, Civil Engineer Hakone Gardens, a city-owned eighteen-acre park nestled in the foothills just outside of Saratoga Village, is maintained and operated by the Hakone Foundation, a non-profit organization that seeks to promote a deeper understanding of Japanese and general Asian culture through the preservation of the oldest Japanese-style residential garden in the Western Hemisphere. In May 2016, the City Council approved the Hakone Gardens Master Plan. During the development of the Plan a number of deferred maintenance projects that required more than simple maintenance or repairs were identified. Project examples include well pump replacement, wood damage mitigation, pest control, and garden, electrical, and lighting improvements. Initial funding for this project came from a $125,000 allocation from the CIP reserve. These funds have been used for the replacement of railings, lighting and fixtures, painting or public restrooms, and other repairs. Past improvements included the replacement of the Cultural Center deck railings. Planned improvements include the reconstruction of the Upper Wisteria Pavilion and maintenance projects identified in the master plan. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -5,428 (5,428)-(5,428) 8115 - Supplies, Materials, Other -53,034 (53,034)-(53,034) 8116 - Construction 124,019 -124,019 25,000 149,019 Total 124,019 58,461 65,557 25,000 90,557 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage X Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction ongoing Completion n/a Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 199 Hakone Gardens Pond Renovation – Phase I Project No. 9222-008 Project Manager - John Cherbone, Public Works Director This project would fund renovation of the Hakone Gardens Koi Pond. Hakone Gardens, a city-owned eighteen-acre park nestled in the foothills just outside of Saratoga Village, is maintained and operated by the Hakone Foundation, a non-profit organization that seeks to promote a deeper understanding of Japanese and general Asian culture through the preservation of the oldest Japanese-style residential garden in the Western Hemisphere. The project would include site clearing and demolition, excavating and grading, shotcrete preparation work, shotcrete with fibers, sealing, boulder work, accent stone materials, ADA accessibility, plumbing, drainage, irrigation, planting, wood structures, survey staking, and geotechnical inspections. The total cost for the Koi Pond is estimated to be $4.2 million. Phase 1 is estimated to cost $2.1 million. The City will pursue grant funding from intergovernmental and private sources. Funding Source: Park In-Lieu Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 300,000 -300,000 -300,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage x Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2022-23 Design/Construction 2022-23 Completion 2023-24 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 200 Hakone Gardens Neighbor Wood Fence Replacement Project No. 9222-009 Project Manager - Shawn Gardner, Public Works Manager This project will replace the existing rotting wood fence with a safe fence along the parking lot. If not done it will result in sporadic costly repairs and present safety concerns. Funding Source: Park In-Lieu Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 75,000 -75,000 -75,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage X Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2022-23 Approved/funded 2022-23 Design/Construction 2022-23 Completion 2022-23 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 201 Quarry Park Maintenance Building Utility Project Project No. 9226-005 Project Manager - Shawn Gardner, Public Works Manager This project will fund the installation of electricity and water to the Quarry Park maintenance building. Provides for additional operational services as well as lighting for security and worker safety. Funding Source: Park In-Lieu Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 35,000 -35,000 -35,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2022-23 Approved/funded 2022-23 Design/Construction 2022-23 Completion 2022-23 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 202 PAGE LEFT BLANK INTENTIONALLY Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 203 El Quito Park Pickleball Courts Project No. 9252-003 Project Manager - Shawn Gardner, Public Works Manager This project creates two pickleball courts in El Quito Park in light of the high demand communicated to the Parks and Recreation Commission. The existing tennis courts were considered for dual use but were removed from consideration following resident feedback. Funding Source: Park In-Lieu Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design -12,322 (12,322)-(12,322) 8116 - Construction 154,299 117,351 36,948 -36,948 Total 154,299 129,673 24,626 -24,626 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement X Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2022-23 Approved/funded 2022-23 Design/Construction 2022-23 Completion 2023 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 204 Blue Hills Elementary Pedestrian Crossing at Union Pacific Railroad Project No. 9274-002 Project Manager - Mainini Cabute, Environmental Programs Manager This project (formally named Guava/Fredericksburg Entrance & Railroad Crossing) funds the removal of the Guava Court barrier allowing access from Guava Ct. to Fredericksburg Dr. (Access) near Joe’s Trail. In 2007, the pedestrian crossings connecting Fredericksburg Drive and Guava Court were declared unsafe by the California Public Utilities Commission (CPUC) and were closed. Since that time, the City of Saratoga has developed Joe’s Trail at Saratoga De Anza. In September 2012, residents living near the Fredericksburg and Guava Court access points expressed interest in reopening the crossing. After making improvements to resolve safety issues cited by the CPUC, the City reopened the Fredericksburg entrance to connect to Joe’s Trail. The Guava Court entrance on the other side of the railroad tracks was not reopened, as it requires an easement as well as pathway and safety improvements. Neighbors believe that reopening the access point at Guava Court would eliminate the need to travel along an arterial street and thereby provide a safer option for pedestrians and bicyclists. The City reached out to Union Pacific Railroad (UPRR) and the CPUC to start the process of reopening the Guava Court access. After working with UPRR and CPUC, the City submitted a formal application in April 2017 to CPUC to open a pedestrian/ bicycle crossing. In June, the City received a response that our application met CPUC requirements and would be reviewed by an Administrative Law Judge within an 18-month review period, which was subsequently extended for an additional four months. The CPUC approved the application in February 2019 for project completion by March 2022, and now extended to January 31, 2025. The estimated project cost is $1.5 million including design ($227,000), construction ($1,190,000) and citywide railroad crossing mitigation improvements required by Union Pacific Railroad ($262,000). The City Council approved $50,000 in 2019-20 and $250,000 in 2020-21 to augment grant application scoring. Funding may be allocated as the matching funds for the Saratoga Village to Quarry Park Walkway project if such a grant is awarded. Funding Source: General Fund Project Milestones Identified/proposed Approved/funded 2013-14 Design/Construction 2023-24 & 2024-25 Completion 2024-25 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 205 Blue Hills Elementary Pedestrian Crossing at Union Pacific Railroad (continued) Project No. 9274-002 Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design - 235,970 (235,970) - (235,970) 8116 - Construction 235,970 - 235,970 - 235,970 Total 235,970 235,970 0 - 0 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship X Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement X Federal or State mandate X Environmental Sustainability Other: Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 206 PAGE LEFT BLANK INTENTIONALLY Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 207 Joe’s Trail Phases 2 & 3 Project Nos. 9274-003, 9274-004 Project Manager – Macedonio Nunez, Engineering Services Manager Phase 2: (9274-003) Joe’s Trail extends the trail from Saratoga- Sunnyvale Road to Arroyo de Arguello. The project implements the Trails Master Plan and connectivity with the continuation of Joe’s Trail at Saratoga De Anza. The project requires PG&E review and PG&E right-of-way (ROW) acquisition. Phase 3: (9274-004) Joe’s Trail extends the trail from Saratoga Avenue to Quito Road. The project implements the Trails Master Plan and connectivity with the continuation of Joe’s Trail at Saratoga De Anza. The project requires Caltrans review and Caltrans Right of way (ROW) acquisition. Funding Source: General Fund & Grant Funds Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 9274-003-8116 - Construction 132,000 1,245 130,755 -130,755 9274-004-8116 - Construction 264,000 -264,000 -264,000 Total 398,000 1,245 394,755 -394,755 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed 1992 Approved/funded 2008-09 Design/Construction ongoing Completion n/a Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 208 Saratoga Village to Quarry Park Walkway Project No. 9277-004 Project Manager - John Cherbone, Public Works Director This project will fund the design, environmental review and construction of a walkway from Saratoga Village to Hakone Gardens and Quarry Park. When complete, this project will result in construction of a walkway from Saratoga Village, past Hakone Gardens, to Quarry Park. The project will be implemented over several phases. Phase I of the project will begin with a pathway between the Village and Hakone Gardens, phase II will extend the walkway to the Quarry Park East Entrance, and the third and final stage will continue the trail to the Quarry Park Main Entrance. Currently, only the design of phase 1 is funded. Developing a pedestrian connection from the Village to Hakone Gardens and Quarry Park will enhance and enliven Saratoga Village, as the project would help to bring foot traffic to the Village, Hakone Gardens and Quarry Park. Additionally, the project will provide a safer path of travel for pedestrians who are currently walking along the highway when the parking lot at Hakone Gardens is full. The path will also serve as a critical starting point for the Saratoga- to-Sea Trail that is part of the Santa Clara County Trail Master Plan. The Saratoga -to-Sea Trail is to begin in Saratoga Village, travel up to Hakone Gardens and Quarry Park, through the existing Sanborn-Skyline and Skyline- to-the-Sea trail systems to the Pacific Ocean. In 2016-17, $50,000 was allocated from the CIP reserve and 2017-18 Council authorized an additional allocation of $100,000 from Park Development fees to fund the design of phase I of this project. Construction costs for phase I are estimated at $1.9 million. The City Council allocated $175,000 in 2019-20, $25,000 in 2020-21, and $150,000 in 2022-23, if approved, from the CIP reserve towards construction to serve as the City’s 20 percent local match should grant funding become available. Recent Federal legislation awarded $1.52 million to support this project. Funding Source: General Fund & Grant Funds Project Milestones Identified/proposed Approved/funded 2017-18 Design/Construction tbd Completion tbd Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 209 Saratoga Village to Quarry Park Walkway (continued) Project No. 9277-004 Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design - 73,811 (73,811) - (73,811) 8116 - Construction 452,800 - 452,800 - 452,800 Total 452,800 73,811 378,989 - 378,989 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 210 Village Oaks Pedestrian Bridge Reconstruction and Erosion Control Project Nos. 9277-005 Project Manager - Shawn Gardner, Public Works Manager Trail washes out each winter and is impassible and hazardous for trail users. The project will implement erosion control, construct a new pedestrian bridge and improve the trail. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 30,000 -30,000 -30,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2022-23 Approved/funded 2022-23 Design/Construction 2022-23 Completion 2022-23 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 211 Hakone Gardens to Quarry Park Trail Gap Closure Phase 1 Design & Acquisition Project No. 9277-006 Project Manager - Emma Burkhalter, Associate Civil Engineer New trail segment in Hakone Gardens that will begin at the bottom of the Hakone Gardens driveway on Highway 9 and end at Quarry Park. See Segment 59 and 60 of the Trails and Walkways Master Plan, updated December 2021. Phase I of the project will complete design of the trail and acquisition of a required trail easement necessary to provide a pedestrian connection between two City parks, as requested by Saratoga’s Pedestrian, Equestrian and Bicycle Trails Advisory Committee. Funding Source: General Fund & Grant Funds Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 50,000 -50,000 -50,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage X Availability of external funding source X Community Engagement X Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2022-23 Approved/funded 2022-23 Design/Construction 2024-25 & 2025-26 Completion 2026-27 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 212 Park and Trail Fire Mitigation Project No. 9281-005 Project Manager - Shawn Gardner, Public Works Manager Drought conditions have created high fire danger within the City Wildland Urban Interface (WUI) area. The project removes brush and dead trees to create defensible space between City land and private property. Creating this defensible space will improve safety. If not completed residential areas adjacent to City properties will be subject to increased fire danger. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 100,000 -100,000 100,000 200,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship X Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement X Federal or State mandate Environmental Sustainability X Other: Project Milestones Identified/proposed Approved/funded 2022-23 Design/Construction ongoing Completion n/a Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA City Manager’s Proposed 2023-24 Budget 2023-06-07 Public Hearing 213 Facilities Capital Improvement Program CIVIC CENTER IMPROVEMENT PAGE 9321-017 Open Work Space/Office Conversion Feasibility & Design 216 9322-001 Civic Theater Annual Improvements 217 9322-013 PEG Projects 218 COMMUNITY CENTER 9333-008 Community Center Improvement Program 219 9333-009 Senior Center/ Community Center Generator & EV Charging Stations 220 LIBRARY BUILDING 9372-001 Saratoga Library Building Exterior Maintenance 221 Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 214 Program Area Descriptions The Capital Improvement Program’s Facility Improvement Program provides for capital maintenance and improvements of the City of Saratoga’s buildings and structures. Projects in the Facility Program are classified by site, to capture both funding resources and site improvement information. There are further sub-classifications by building within these sites. In summary, the Facility Improvement Program categories are: • Citywide Projects • Civic Center • Community Center • Corporation Yard • Saratoga-Prospect Center • Village Historical Buildings • Library Building Civic Center – located at 13777 Fruitvale Avenue, this site classification includes the Administration and Community Development/ Engineering buildings, Theater/ Chamber Building, and the Warner Hutton House. Community Center – located at 19655 Allendale Avenue, this site includes the Senior Center, the Adult Care Center, the Recreation Center, and the associated portables. Corporation Yard – located at 19700 Allendale Avenue, the Corporation Yard Offices, associated open bays, and the entire fenced-in parking lot complex comprise this site. Saratoga Prospect Center – located at 19848 Prospect Avenue, this site is comprised of the Grace Building and the Friendship Hall. The parking lot and grounds surrounding the buildings are also part of the site. Village Historical Park – located at 20450 Saratoga- Los Gatos Road, the Historical Park represents a collection of older City owned buildings in the village. This includes the Saratoga Historical Museum, the Book-Go-Round, and the McWilliams House. All three buildings are occupied under long-term leases by community-based organizations; however, the City bears some external building maintenance responsibilities. Library Building – located at 13650 Saratoga Avenue, near the corner of Saratoga Avenue and Fruitvale Avenue, and adjacent to the Heritage Orchard Park. The building is leased to the Santa Clara County Library Joint Powers Authority on a 30 year lease (effective July 2003) for use as a branch library. The City retains responsibility for the parking lot. Exterior maintenance of the building is funded through an annual allocation of $5,000 from Santa Clara County. Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA City Manager’s Proposed 2023-24 Budget 2023-06-07 Public Hearing 215 Funding Summary by Project Facilities Capital Improvement Program Project Category & Project Name Budget Est. Actual Est. Carryover Approved Additions Est. Total Budget Civic Center Projects 9321-017 - Open Work Space/Office Conversion Feasibility & Design  80,000 4,800 75,200 - 75,200 9322-001 - Civic Theater Annual Improvements  35,000 3,615 31,385 35,000 66,385 9322-013 - PEG Projects  195,915 - 195,915 - 195,915 Civic Center Projects Total 310,915 8,415 302,500 35,000 337,500 Community Center Projects 9333-008 - Community Center Improvement Program  24,512 5,029 19,483 - 19,483 9333-009 - Senior Center/ Community Center Generator & EV Charging Stations  395,311 384,210 11,101 - 11,101 Community Center Projects Total 419,823 389,239 30,585 - 30,585 Library Projects 9372-001 - Saratoga Library Building Exterior Maintenance  15,000 - 15,000 - 15,000 Library Projects Total 15,000 - 15,000 - 15,000 Total Facilities CIP 745,739 397,654 348,085 35,000 383,085 2023-242022-23 Expenditures Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 216 Open Work Space/ Office Conversion Feasibility & Design Project No. 9321-017 Project Manager – Thomas Scott, Facilities Manager This project would convert cubicles to offices at the City Hall buildings. This project applies to the Health and Safety Issues, Efficiencies and Business or Community Support Priority Factors. Staff offices line the perimeters of the City Hall buildings leaving the areas in the middle of each building open. Cubicles have been constructed to help eliminate noise and provide suitable workstations for employees working in those areas. At times, impromptu meetings occur in the center of the room to collaborate on various projects making it difficult for others not included in the meeting to talk to residents on the phone or concentrate on other assignments. Individual offices will allow staff to work independently on projects and converse with residents over the phone or talk to staff, while still having a small open area for impromptu group discussions. Design work will be done with input from the staff to ensure that all upgrades will benefit the work areas. A cost study will be completed based on the final scope of work. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 80,000 4,800 75,200 - 75,200 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2021-22 Design/Construction Completion Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA City Manager’s Proposed 2023-24 Budget 2023-06-07 Public Hearing 217 Civic Theater Annual Improvements Project No. 9322-001 Project Manager – Thomas Scott, Facilities Manager The Theater groups and other local groups lease the Civic Theater for rehearsals and performances. The main two Theater groups both have three productions per year that have shows lasting approximately six weeks each. The usage by other groups are for various amounts of days. To keep the Theater in optimal operating condition and offset maintenance expenses resulting from the usage of the Theater for performances, a $2.55 per ticket surcharge is collected on each ticket sold and is then subsequently remitted to the City to fund improvements. The surcharge totals approximately $30,000 to $40,000 per year. Each year, the two groups that primarily use the Civic Theater work with staff to identify improvement priorities. Improvements are made on an ongoing basis and in the past have included the installation of new LED lights throughout the Theater, a new lighting control system, fully accessible seating, new acoustic treatments, Lobby upgrades and stage flooring replacement. Regular improvements to the Civic Theater ensure that it remains an attractive venue for audiences and Theater groups. The productions of the Theater groups draw visitors to Saratoga, which helps to support the local economy, as audience members often visit Saratoga restaurants and shops before or after attending shows. Most Theater improvements are performed by contractors and supervised by staff. Funding Source: Fee revenue Expenditures 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 35,000 3,615 31,385 35,000 66,385 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement X Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction ongoing Completion n/a Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 218 PEG Projects Project No. 9322-013 Project Manager - Thomas Scott, Facilities Manager Pursuant to Section 611 of the Communications Act, The City of Saratoga requires cable operators to set aside channels for public, educational, or governmental ("PEG") use and provide funds for equipment for local studios for these channels and operating funds to cover the expenses of operating the studios. The City receives approximately $80,000 each year in PEG funds from various cable operators. As of the end of FY 2018/19, the balance of PEG fees is estimated to be $260,800. The City has partnered with the local Saratoga Community Access Television station (KSAR) to use the funds for improvement of the local television equipment. However, the funds have accumulated to a position which may allow the City to move forward on a major project that will augment the City’s local broadcasting abilities. This project will account for the PEG funds and subsequent use if the Council identifies and approves an appropriate project at a future time. Funding Source: Fee revenue Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 195,915 - 195,915 - 195,915 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement X Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2019-20 Design/Construction ongoing Completion n/a Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA City Manager’s Proposed 2023-24 Budget 2023-06-07 Public Hearing 219 Community Center Improvement Program Project No. 9333-008 Project Manager - Thomas Scott, Facilities Manager This project will fund priority interior improvements to the Joan Pisani Community Center, as well as a master plan to identify interior improvement needs. The Joan Pisani Community Center was originally constructed in 1968. For many years, the building has been used jointly by the Saratoga Recreation Division and the Saratoga Area Senior Coordinating Council (SASCC). The Recreation side of the building is 10,217 square feet and includes several rooms that are used for classes and programs now overseen by Los Gatos Saratoga Recreation and can also be rented by the public. While routine maintenance is performed on the interior of the Community Center, the building has not had any major improvements in recent years and much of the interior has become dated and worn. The Multipurpose Room receives very high usage. In addition to being used for classes, the Multipurpose Room is booked almost every Saturday for events, except when closed one week a year for maintenance and repairs. This project would fund several priority interior improvements to the Joan Pisani Community Center building to refresh the building and make it a more desirable location for both classes and rentals. Additionally, the project would fund development of a master plan to identify potential interior upgrades for the future, such as improvements to the Patio Room the Lobby and the Arts and Crafts Room. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8115 - Supplies, Materials, Other - 741 (741) - (741) 8116 - Construction 24,512 4,288 20,224 - 20,224 Total 24,512 5,029 19,483 - 19,483 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2019-20 Design/Construction Completion Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 220 Senior Center/ Community Center Generator & EV Charging Stations Project No. 9333-009 Project Manager - Thomas Scott, Facilities Manager This project will fund a generator for the Joan Pisani Community Center building and install the infrastructure for two dual-head Level 2 EV charging stations in the parking lot. The Saratoga Senior Center in the Joan Pisani Community Center building serves the community members that rely on power for medical purposes, such as powered wheelchairs and medication that must be kept refrigerated. The entire Joan Pisani Community Center also serves as a cooling and heating location during extreme weather events. During the recent PG&E Public Safety Power Shutoff events, the Community Center also served as a charging location for residents. Currently, the building cannot be connected to a backup generator and is without power during outages, which impacts the services to the community. This project would add a backup generator that would automatically power the Senior Center, the Adult Care Center and the Recreation Center during an outage. This would enable the Community Center to continue operations and allow the Senior Center to provide their services to vulnerable community members. The conduits for the future EV Charging stations will be added under the parking lot when the parking lot is opened up for the conduits needed to install the generator. The Recreation and Senior portable building units obtain power from other buildings and will not be serviced by this project. For 2020-21, City Council appropriated $500,000 from the General Fund to fund this project. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design - 4,800 (4,800) - (4,800) 8116 - Construction 395,311 379,410 15,901 - 15,901 Total 395,311 384,210 11,101 - 11,101 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability X Other: Project Milestones Identified/proposed Approved/funded 2020-21 Design/Construction Completion Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA City Manager’s Proposed 2023-24 Budget 2023-06-07 Public Hearing 221 Saratoga Library Building Exterior Maintenance Project No. 9372-001 Project Manager - Thomas Scott, Facilities Manager This project funds improvements to the exterior of the Saratoga Library. The Saratoga Library is a City owned property leased by the Santa Clara County Library Joint Powers Authority. Under the current 30-year lease (effective 2003), the County is responsible for maintaining the interior of the building. However, the County agreed to pay the City $5,000 on an annual basis to oversee and perform certain maintenance work to ensure the building’s exterior is maintained in accordance with City standards. Every year these funds are used to repair and re-paint the exterior walls of the Library building under the direction of the Facilities Department. The unexpended funds are capped at $25,000. The exterior maintenance work is primarily performed by contractors and managed by staff. Performing on-going maintenance to the exterior of the Saratoga Library keeps the building in good operating condition and prevents higher costs associated with deferred maintenance. Exterior maintenance projects range from siding repairs and re-painting. In 2010-11, the southern exposure of the library was re-painted, and in 2012-13, the entire exterior was re-painted. In 2017-18, repairs and re-painting of the north and east facing walls were completed. Funding Source: Outside agency Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 15,000 - 15,000 - 15,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded Design/Construction ongoing Completion Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 222 PAGE LEFT BLANK INTENTIONALLY Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 223 Administrative & Technology Capital Improvement Program INFORMATION TECHNOLOGY PROJECTS PAGE 9415-001 Community Development Document Management Project 226 9415-004 Software Technology Management 227 COMMUNITY ENHANCEMENT PROJECTS 9442-001 Landscape & Lighting District Initiation Match Program 228 9442-002 Horseshoe Landscape & Lighting District Beautification 229 9443-002 ADA Transition Plan Implementation 230 9443-003 Annual Public Art Infrastructure 231 9443-004 Safe Routes to School Needs Assessment 232 9443-005 El Quito Neighborhood Improvements 233 9443-008 ADA Self-assessment & Transition Plan 235 DEVELOPMENT IMPROVEMENT PROJECTS 9451-002 General Plan and Advanced Planning Update 236 SAFETY IMPROVEMENT PROJECTS 9461-002 Wildfire Mitigation Program 238 Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 224 Program Area Descriptions The Capital Improvement Program’s Administrative & Technology Improvements Program provides for major capital expenditures to improve or enhance administrative, technological, and operational systems, processes, or functions. At this point, with few projects active at one time, the Administrative & Technology Improvement Program is limited to four categories: • Information Technology Projects • Community Enhancement Programs • City Development Projects & Programs • Administrative Projects In the future, Administrative & Technology Improvements projects may also include projects for operational assessments, community surveys, or emergency operations projects. Currently, all projects and programs fall within the following category descriptions: Information Technology Projects – are comprised of projects that increase operational efficiencies through software or hardware improvements. Currently, projects in this category include the Financial System Upgrade and several document imaging projects. Communication System Projects – include projects which acquire or upgrade communication infrastructure. No projects are currently planned. Community Enhancement Programs – consist of projects that fund infrastructure or policy updates that have long-term impacts. This category includes the Secondhand Smoke Prevention Program. City Development Projects & Programs – include projects and programs which provide funding for quality of life enhancements, business incentives, and beautification efforts. Administrative Projects & Programs – include projects and programs which improve administrative operations or act as a funding placeholder and are not appropriately placed in a different category. Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 225 Funding Summary by Project Administrative & Technology Capital Improvement Program Project Category & Project Name Budget Est. Actual Est. Carryover Approved Additions Est. Total Budget Information Technology Projects 9415-001 - Community Development Document Management Project  193,091 52,614 140,477 - 140,477 9415-004 - Software Technology Management  108,138 - 108,138 - 108,138 Information Technology Projects Total 301,229 52,614 248,615 - 248,615 Community Enhancement Projects 9442-001 - Landscape & Lighting District Initiation Match Program  25,000 24,108 892 - 892 9442-002 - Horseshoe Landscape & Lighting District Beautification  13,295 4,544 8,751 - 8,751 9442-003 - Business Renewal Program 6,643 2,345 CLOSED - - 9443-002 - ADA Transition Plan Implementation  128,067 111,472 16,595 100,000 116,595 9443-003 - Annual Public Art Infrastructure  78,669 - 78,669 25,000 103,669 9443-004 - Safe Routes to School Needs Assessment  95,261 - 95,261 - 95,261 9443-005 - El Quito Neighborhood Improvements  134,507 - 134,507 - 134,507 9443-008 - ADA Self-assessment & Transition Plan  325,000 2,250 322,750 - 322,750 Community Enhancement Projects Total 806,441 144,718 657,425 125,000 782,425 Development Improvement Projects 9451-002 - General Plan and Advanced Planning Update   738,593 641,340 97,252 - 97,252 Development Improvement Projects Total 738,593 641,340 97,252 - 97,252 Safety Improvement Projects 9461-002 - Wildfire Mitigation Program  4,067 - 4,067 - 4,067 Safety Improvement Projects Total 4,067 - 4,067 - 4,067 Total Administrative & Technology CIP 1,850,330 838,672 1,007,359 125,000 1,132,359 2023-242022-23 Expenditures Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 226 Community Development Document Management Project No. 9415-001 Project Manager – Bryan Swanson, Community Development Director This project (formally called Community Development Technology Management) accounts for technology fee revenues and expenditures in support of converting, managing, and maintaining development documents. The project is implemented primarily at City Hall. Some technology services are performed offsite at contract service locations. In 2008, the Community Development Department initiated a Document Scanning Fee to offset costs associated with converting development documents into a digitized format and maintaining them in perpetuity, with the assistance of software and document management systems. As this effort developed over time, it became clear that technology fees and expenses should be more clearly identified and tracked to ensure proper funding is assessed. For that purpose, the current fee and expenditure structure shifted from the operating budget to the capital budget to isolate the functions, clarify the nexus, and track dedicated revenues for multi-year operational expenses. In 2020-21, a separate technology fee was implemented and accounted for in the Software Technology Management project. This project remains for document management related revenues and expenditures. Funding Source: Fee revenue Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8115 - Supplies, Materials, Other - 52,614 (52,614) - (52,614) 8116 - Construction 193,091 - 193,091 - 193,091 Total 193,091 52,614 - 140,477 - 140,477 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source × Community Engagement Federal or State mandate Environmental Sustainability × Other: Project Milestones Identified/proposed 2008 Approved/funded 2014-15 Design/Construction ongoing Completion ongoing Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 227 Software Technology Management Project No. 9415-004 Project Manager – Bryan Swanson, Community Development Director This project accounts for technology fee revenues and expenditures in support of development software technology. The current fee and expenditure structure shifted from the operating budget to the capital budget to isolate the functions, clarify the nexus, and track dedicated revenues for multi-year operational expenses. In 2020-21, a separate technology fee was implemented and accounted for in the Software Technology Management project. This project remains for document management related revenues and expenditures. Funding Source: Fee revenue Expenditures 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 108,138 - 108,138 - 108,138 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source × Community Engagement Federal or State mandate Environmental Sustainability × Other: Project Milestones Identified/proposed 2008 Approved/funded 2020-21 Design/Construction ongoing Completion n/a Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 228 Landscape & Lighting District Initiation Match Program Project No. 9442-001 Project Manager - John Cherbone, Public Works Director This project provides matching funds for initial landscaping improvements to encourage neighborhood associations to enter into a Landscape and Lighting District arrangement with the City. The LLD Initiation Match Program is available for new districts formed within the City of Saratoga. Improvements are typically made along City arterials leading into a neighborhood, thereby providing a beautiful gateway entrance. District assessments will fund the subsequent upkeep of the improvements, including water, lighting, and landscape maintenance costs. This project represents a $50,000 contribution of City funds to be provided to new Landscape and Lighting Districts (LLD) on a 50 percent match basis, up to $25,000, toward initial improvements to be completed at the onset of the new LLD. The program is intended to encourage residents to form a neighborhood assessment district by matching the district’s initial assessment with funds from the City, thereby enabling the quick implementation of landscape and/or lighting improvements within a newly formed district. Grant funding matches of up to a maximum of $25,000 per district initiation will be transferred to a new LLD upon district agreement and receipt of initial assessments. LLD expenditures will not be accounted for directly in this project. To date, the program has supported the development of the following new districts; Allendale, Covina, and Brookglen. Improvements included entryway beautification, landscaping, signage, lighting, and irrigation. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 25,000 24,108 892 - 892 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2016-17 Design/Construction ongoing Completion n/a Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 229 Horseshoe Landscape & Lighting District Beautification Project Project No. 9442-002 Project Manager - John Cherbone, Public Works Director This project funds minor beautification projects within the Horseshoe Lighting and Landscaping District. During Fiscal Year 2014/15, the City received payment from a cellular service provider as a result of the installation of a cell phone tower within the Horseshoe Landscaping and Lighting District. The provider made initial improvements, including planting trees to screen the cellular site equipment, and agreed to pay the City for landscape maintenance. This project is funded by a contribution from a cellular service provider in the amount of $25,000. Funding Source: One-time private funds Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8115 - Supplies, Materials, Other - 1,064 (1,064) - (1,064) 8116 - Construction 13,295 3,480 9,815 - 9,815 Total 13,295 4,544 8,751 - 8,751 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source x Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2015-16 Design/Construction ongoing Completion n/a Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 230 ADA Transition Plan Implementation Project No. 9443-002 Project Manager - John Cherbone, Public Works Director This project (formally named Citywide Accessibility Needs Assessment) would assess compliance with accessibility requirements for City parking areas and traffic signals. There are a number of regulations that help ensure people with disabilities can access buildings, parks, parking, and other facilities. For example, there are specifications establishing minimum ratios of accessible parking spaces in parking lots and requirements for minimum width for parking spaces and access aisles to provide individuals in wheelchairs or with mobility limitations with sufficient room to exit or enter vehicles. This project would assess the City’s compliance with accessibility requirements across City parking lots, including those owned or leased by the City, and traffic signals. Additionally, the project would outline implementation strategies to bring the City into compliance with accessibility requirements, if necessary. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design - 6,379 (6,379) - (6,379) 8116 - Construction 128,067 105,093 22,974 100,000 122,974 Total 128,067 111,472 16,595 100,000 116,595 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2018-19 Design/Construction 2022-23 & 2023-24 Completion 2023-24 Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 231 Annual Public Art Infrastructure Project No. 9443-003 Project Manager - James Lindsay, City Manager This priority capital project would fund various public art projects in the City. In 2016, the City Council established a public art committee to make recommendations related to the City’s public art efforts. Since then, the Committee was suspended and the Public Art Commission was formed to advise the City Council on public art policies, budgets, plans, procedures, and projects, including major efforts that could be funded through the Annual Public Art Infrastructure project. This capital project will fund a variety of public art initiatives and any public art proposals that may arise. The project receives an annual allocation of $25,000 as a priority project. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 78,669 - 78,669 25,000 103,669 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2019 Approved/funded 2019-20 Design/Construction Ongoing Completion n/a Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 232 Safe Routes to School Needs Assessment Project No. 9443-004 Project Manager - Mainini Cabute, Environmental Programs Manager This project will fund a traffic engineering plan which would include several elements aimed to promote bicycling and walking as the preferred travel modes to school. Project elements for this design plan include: • Conceptual plan drawings of traffic safety improvements near schools, prioritize based on safety, to promote pedestrian and bike travel. • School maps, developed for each school, to show the distribution of students around the community, identifying corridors that should be improved. • An enforcement evaluation that reviews and improves signage and/or markings to allow for effective enforcement. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 78,312 - 78,312 - 78,312 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Design/Construction 2022-23 Completion 2022-23 Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 233 El Quito Neighborhood Improvements Project No. 9443-005 Project Manager - John Cherbone, Public Works Director This project will fund future projects within the El Quito Neighborhood in the City of Saratoga. In 2019- 20, the City dissolved the El Quito Landscape & Lightning District and incorporated the neighborhood’s maintenance within the City’s normal operations. A portion of the funds in the district is set aside in this project for future projects within this area. Funding Source: One-time funds from the El Quito Landscape & Lightning District dissolution Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 134,507 - 134,507 - 134,507 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2019-20 Approved/funded 2019-20 Design/Construction Ongoing Completion n/a Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 234 PAGE LEFT BLANK INTENTIONALLY Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 235 ADA Self-assessment & Transition Plan Project No. 9443-008 Project Manager - James Lindsay, City Manager This project would provide funding for a consultant to prepare and update the ADA Self-Evaluation and Transition Plan for the City. This project applies to the Health and Safety Issues, Short-term Cost of Repair vs. Long-term Cost of Replacement, Federal or State Mandates and Business or Community Support Priority Factors. Under the 1990 Americans with Disabilities Act, all public entities subject to Title II must conduct a self-evaluation to identify accessibility barriers, and entities with 50 or more employees must also have a transition plan in place to address structural changes necessary to achieve program and service accessibility. The vehicle to implement this compliance is called an ADA Self-Evaluation and Transition Plan. The City prepared its first ADA Self-Evaluation and Transition Plan in 1993. An update was prepared in 2010. This project would allow the City to hire a consultant to prepare an updated ADA Self-Evaluation and Transition Plan. The Plan will identify barriers to accessibility, ways to improve access, establish costs and a timeline for how to remove these barriers. The ADA Self-Evaluation and Transition Plan will provide a strategic approach and tools for continued access improvements as the City implements its ADA Self - Evaluation and Transition Plan in the coming years. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 325,000 2,250 322,750 - 322,750 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue x Public Safety x Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2021-22 Design/Construction Completion June 2024 Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 236 General Plan & Advance Planning Update Project No. 9451-002 Project Manager – Bryan Swanson, Community Development Director The General Plan and Advanced Planning policy document contains approved long-range policies of acceptable land uses for the city. Each city adopts and periodically updates its General Plan and Advanced Planning policy documents to guide the long- term growth and land development of the community. The General Plan and Advanced Planning policy documents are the foundation for establishing goals, purpose, zoning and activities to ensure compatibility and continuity throughout the city. As the legislature requires a city’s zoning and subdivision approvals be consistent with their adopted General Plan, updates to the General Plan must be made in conjunction with development related code changes. Development fees are collected to provide the funding needed to meet this requirement as a result of changing land uses in the community. Government code dictates that the General Plan contain seven mandatory elements: land use, circulation, housing, conservation, open space, noise, and safety. As each of these elements require technical expertise, consultants and attorneys are retained to assist with the updates. Additionally, the State Planning Law also allows for specific plans to serve as “mini-General Plans” for predesignated and defined planning areas such as the City’s Hillsides or The Village. Most communities update their Specific Plans overtime in conjunction with periodic updates of their General Plan and sub-elements. Updates to the Circulation, Open Space/Conservation, and Land Use Elements are scheduled to be completed by 2019. On December 20, 2017, The City Council allocated an additional $57,909 to the project to fund the costs associated with these updates. The update to the Housing Element is scheduled to be completed in 2023. On December 21, 2022, City Council allocated an additional $65,000 to complete the Housing Element Update project and General Plan Amendment Environmental Impact Report. Funding Source: Fee revenue Project Milestones Identified/proposed Approved/funded 2014-15 Design/Construction Completion Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 237 General Plan & Advance Planning Update (continued) Project No. 9451-002 Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design - 641,340 (641,340) - (641,340) 8116 - Construction 738,593 - 738,593 - 738,593 Total 738,953 641,340 97,253 - 97,253 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate x Environmental Sustainability Other: Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 238 Wildfire Mitigation Program Project No. 9461-002 Project Manager - James Lindsay, City Manager This project will be used as needed for any project or program that may arise that helps to reduce the risk of wildfire in the City of Saratoga. One of the strategies in the Wildfire Task Force’s work plan includes making funding available for fuel reduction. On April 6, 2020, the Wildfire Task Force discussed this strategy in the work plan and recommended that the City Council create a $50,000 Wildfire Risk Mitigation Program as part of the 2020- 21 budget with a fund balance that is carried over into future fiscal years. The Task Force proposed that the fund could be used as needed for any project or program that may arise that helps reduce the risk of a wildfire in Saratoga. Examples of how the fund could be used include a fuel break project or a defensible space incentive program. Once the funds from this program are exhausted, future related work will be funded from the operating budget. Funding Source: General Fund Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 4,067 - 4,067 - 4,067 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue x Public Safety x Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2020-21 Design/Construction Completion ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 239 ARPA SLFRF Capital Improvement Program STORMWATER AND STORMDRAIN PROJECTS PAGE 9142-024 Park Sewer Lateral Replacements and Upgrades 242 9142-025 Stormdrain Master Plan 243 9142-027 Prospect Road Green Infrastructure 244 9142-028 Stormwater Pollution Prevention Program Compliance (SWPPP) 245 9142-029 Saratoga Village Water Quality Improvement Plan 246 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 240 PAGE LEFT BLANK INTENTIONALLY ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 241 Funding Summary by Project ARPA SLFRF Capital Improvement Program Project Category & Project Name Budget Est. Actual Est. Carryover Approved Additions Est. Total Budget ARPA/ SLFRF Projects 9142-024 - Park Sewer Lateral Replacement and Upgrade 252,052 44,181 207,871 - 207,871 9142-025 - Storm drain Master Plan 457,613 457,613 - - - 9142-027 - Prospect Road Green Infrastructure 370,000 - 370,000 - 370,000 9142-028 - Stormwater Pollution Prevention Program Compliance (SWPPP) 150,000 46,000 104,000 - 104,000 9142-029 - Saratoga Village Water Quality Improvement Plan 5,897,924 642,196 5,255,728 - 5,255,728 ARPA/SLFRF Projects Total 7,127,590 1,189,990 5,937,599 - 5,937,599 2023-242022-23 Expenditures ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 242 Park Sewer Lateral Replacements and Upgrades Project No. 9142-024 Project Manager - Shawn Gardner, Public Works Manager This project will provide proper sewage treatment and water savings during a drought. Revenue sources include federal funds advanced by the Department of Treasury under the State and Local Fiscal Recovery Funds (SLFRF/ARPA) in 2021-22 and 2022-23 and the General Fund for City staff project management, as necessary. The funding required is $300,000. The Park Sewer Later Replacements and Upgrades project is one of five phased and integrated stormwater infrastructure projects totaling $7.2 million. Funds may be reallocated between phases, as necessary, based on project design and bids. Funding Source: American Rescue Plan Act’s State and Local Fiscal Relief Fund (ARPA/SLFRF) Expenditures 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 252,052 44,181 207,871 - 207,871 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue × Public Safety × Imminent failure of structure/system × Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement × Community Heritage Availability of external funding source × Community Engagement Federal or State mandate Environmental Sustainability × Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Construction 2021-22 & 2023-24 Completion 2023-24 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 243 Stormdrain Master Plan Project No. 9142-025 Project Manager - Emma Burkhalter, Associate Engineer Stormwater infrastructure is located throughout the City. This project updates the Stormwater Infrastructure Master Plan by determining the condition, age, type, and accurate location of all storm drains, drain inlets, outfalls, and other storm drain facilities operated and maintained by the City. Most of the City’s stormwater infrastructure is between 50 and 100 years old. The Stormwater Master Plan provides accurate information to manage the system’s operational integrity through a proactive infrastructure program. Revenue sources include federal funds advanced by the Department of Treasury under the State and Local Fiscal Recovery Funds (SLFRF/ARPA) in 2021-22 and 2022-23 and the General Fund for City staff project management, as necessary. The funding required is $482,000. The Stormwater Master Plan Project is one of five phased and integrated stormwater infrastructure projects totaling $7.2 million. Funds may be reallocated between phases, as necessary, based on project design and bids. Funding Source: American Rescue Plan Act’s State and Local Fiscal Relief Fund (ARPA/SLFRF) Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design - 457,613 (457,613) - (457,613) 8116 - Construction 457,613 - 457,613 - 457,613 Total 457,613 457,613 - - - City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement × Community Heritage Availability of external funding source × Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Design/Construction Completion 2022-23 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 244 Prospect Road Green Infrastructure Project No. 9142-027 Project Manager - Macedonio Nunez, City Engineer This project will install bioswale to filtrate runoff water from Prospect Road. The bioswale replaces existing stormwater infrastructure that drains into the watershed. This project will improve water quality in Saratoga and fulfill State mandates. If not completed, the City would be out of compliance with State Water permit requirements. Stormwater treatment through bioswale green infrastructure also benefits regional water quality for approximately 8 miles across the Santa Clara Valley, including through the cities of San Jose and Santa Clara, before entering the San Francisco Bay. Revenue sources include federal funds advanced by the Department of Treasury under the State and Local Fiscal Recovery Funds (SLFRF/ARPA) in 2021-22 and 2022-23 and the General Fund for City staff project management, as necessary. The funding required is $370,000. Funds may be reallocated between phases, as necessary, based on project design and bids. Funding Source: American Rescue Plan Act’s State and Local Fiscal Relief Fund (ARPA/SLFRF) Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 370,000 - 370,000 - 370,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue x Public Safety Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source × Community Engagement Federal or State mandate x Environmental Sustainability x Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Design/Construction 2022-23 & 2023-24 Completion 2023-24 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 245 Stormwater Pollution Prevention Program Compliance (SWPPP) Project No. 9142-028 Project Manager - Rick Torres, Public Works Manager This project will upgrade Corporation Yard facilities to meet National Pollution Discharge Elimination System (NPDES) standards for clean water objectives. Upgrades include a new tractor wash area, trash area improvements including shelters, and sewer connection. Improvements will keep contaminants from entering the watershed as mandated by the California Regional Water Quality Control for the San Francisco Bay Municipal Regional Stormwater NPDES Permit. Anticipated Revenue sources include federal funds advanced by the Department of Treasury under the State and Local Fiscal Recovery Funds (SLFRF/ARPA) in 2021-22 and 2022- 23 and the General Fund for City staff project management, as necessary. The funding required is $150,000. Funds may be reallocated between phases, as necessary, based on project design and bids. Funding Source: American Rescue Plan Act’s State and Local Fiscal Relief Fund (ARPA/SLFRF) Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8116 - Construction 150,000 46,000 104,000 - 104,000 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate x Environmental Sustainability x Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Design/Construction 2022-23 & 2023-24 Completion 2023-24 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 246 Saratoga Village Water Quality Improvement Plan Project No. 9142-029 Project Manager - Mainini Cabute, Environmental Programs Manager This project will repair, resize, remove, and replace storm sewers, and additional types of stormwater infrastructure improvements to the City’s stormwater collection and treatment systems in the Village to reduce parking district surface contaminants in stormwater runoff that discharges into Saratoga Creek. This project will improve water quality in Saratoga and will fulfill State mandates. If not completed, the City would be out of compliance with State Water permit requirements. Stormwater treatment in the Village Parking districts also benefit regional water quality for approximately 8 miles across the Santa Clara Valley, including through the cities of San Jose and Santa Clara, before entering the San Francisco Bay. Anticipated revenue sources include SLFRF/ARPA and the General Fund for City staff project management, as necessary. The funding required is $5,911,239. The Saratoga Village Water Quality Improvement Plan is one of five phased and integrated stormwater infrastructure projects totaling $7.2 million. Funds may be reallocated between phases, as necessary, based on project design and bids. Funding Source: American Rescue Plan Act’s State and Local Fiscal Relief Fund (ARPA/SLFRF) Expenditure Budget 2022-23 2023-24 Category Budget Est. Actual Est. Carryover Adopted Additions Est. Total Budget 8114 - Engineering & Design - 642,196 (642,196) - (642,196) 8116 - Construction 5,897,924 - 5,897,924 - 5,897,924 Total 5,897,924 642,196 5,255,728 - 5,255,728 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue x Public Safety X Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source x Community Engagement Federal or State mandate x Environmental Sustainability x Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Design/Construction tbd Completion tbd Supplementary Budget Information CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 247 INTRODUCTION The Supplementary Section of the budget includes information that enhances the usability of the budget document as a policy document, financial plan, operating guide, and communications device. In 2022-23, City staff initiated a budget document refresh to embrace recent trends in budget documents to improve access to an understanding of city finances for those less familiar with government operations or accounting. While work began in the 2022-23 budget, we strive for continuous improvement and work to improve this document in the following areas: Greater utilization of hyperlinks. The document includes several links to web pages that provide direct access to resources. Hyperlinks have the benefit of minimizing page count while giving the reader an option of accessing additional information on a topic of interest. The electronic document also contains internal links to navigate the electronic document. While electronic documents benefit from reduced use of resources, it should be noted that users of printed documents do not benefit from the internal links and their navigation advantages. As City staff continues to incorporate best practices in budget communication, we will focus on opportunities to address the needs of paper and electronic document users. Expanded use of visuals to communicate the City’s finances . The 2023-24 budget document builds on the past success of communicating the budget using charts and tables with updated views and formatting. The budget also incorporates photographs, where appropriate, to further demonstrate the City’s services with current and compelling images. The images also showcase Saratoga’s uniqueness. Supplementary Budget Information CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 248 PAGE LEFT BLANK INTENTIONALLY CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 249 Accounting and Budgetary Structure ACCOUNTING AND BUDGETARY STRUCTURE CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 250 Accounting and Budgetary Structure FUND DESCRIPTIONS The basic accounting and reporting entity for the City of Saratoga is a fund. A fund is a fiscal and accounting entity used to record all financial transactions related to the specific purpose for which the fund was created. Funds are established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Funds used in government are classified into three broad categories: governmental, proprietary and fiduciary. Governmental funds include activities usually associated with a typical state or local government's operations (public safety, general government activities, etc.) Proprietary funds are used in governments to account for activities often found in the private sector (utilities, stadiums and golf courses are prime examples). Trust and Agency funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent. The various funds are grouped in fund types and categories as follows: GOVERNMENTAL FUNDS Includes activities usually associated with governmental entity operations, including public safety, planning and building services, parks and public works, and general administrative functions. General Fund The General Fund serves as the City’s chief operating fund. All general tax revenues and other receipts not allocated by law or some other contractual agreement to other funds are accounted for in the General Fund. Expenditures of this fund include the general operating expenses traditionally associated with governments such as city administration, development services, public works, and public safety. Special Revenue Funds Special Revenue Funds are used to account for revenues that are legally restricted to expenditures for specific purposes. The City of Saratoga has the following type of Special Revenue Funds: Special Assessment District Funds – Saratoga currently has 32 special assessment districts which voted to have the City provide oversight and maintenance of trees, landscaping, irrigation systems, and lighting systems in neighborhood and commercial areas. Separate funds are established to account for each district. Debt Service Funds Debt Service Funds are used to account for the acquisition of resources and the payment of long -term debt on City obligations. • 2001 Series General Obligation Bond Fund – established to account for the obligation incurred under the citizen approved 2001 General Obligation Bond debt for the Library remodel. • 2018 Arrowhead Community Facility District (CFD) Bond Fund – established to account for the obligation incurred by the Arrowhead CFD to fund water infrastructure improvements for the 39 properties within the District. Capital Project Funds Capital Project Funds are used to account for the acquisition, construction, and improvement of capital infrastructure. The City budgets and accounts for capital projects in: • Capital Project Funds – established to provide resources for capital projects funded from accumulated reserves and designated capital revenues. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 251 Accounting and Budgetary Structure • Development Impact Funds – accounts for revenues restricted for specific capital project uses. • Grant Project Funds – budgets and accounts for projects funded in whole or in part by grant revenues. • Gas Tax Fund – budgets and accounts for revenues and expenditures pertaining to the maintenance and construction of City Streets. PROPRIETARY FUNDS Proprietary funds are structured to impose fees or charges upon those who use their services. There are two classifications of proprietary funds: Enterprise Funds, and Internal Service Funds. • Enterprise Funds – are used to account for activities that are operated in a manner similar to a private business enterprise, where the costs of the goods are to be financed or recovered primarily through external user charges. The City of Saratoga does not currently provide services or activities (e.g. golf course or utility service) which would be accounted for through Enterprise Funds. • Internal Service Funds – represent services provided to internal users and functions as a cost - reimbursement device. Internal Service Funds account for operational support activities for the purpose of recovering the cost from the user, and for the user to identify its full cost of operations. Internal Service Funds Used to account for services provided to departmental programs by City -wide administered programs and staff. The City has several of these types of funds: • Liability/Risk Management Insurance Fund – Accounts for insurance premiums, self-insured portion of claims, and administrative costs associated with settling claims. Charges are allocated to programs based upon liability risk and claim occurrence history. • Worker's Compensation Insurance Fund - Accounts for insurance premiums, self-insured portion of claims, and administrative costs associated with settling claims. Charges made to operating departments are based on liability risk and claim occurrence history. • Office Support Services Fund – Photocopy equipment, postage and bulk mail meter expenses are controlled at one source point and expended to the departments as goods or services are utilized. • IT Services Fund – Information Technology Services supports the delivery of technology -based services and infrastructure, including desktop support, network systems, technology upgrades and initiatives, communication systems, and associated IT equipment. • Vehicle & Equipment Maintenance Fund - Accounts for the cost of operating and maintaining vehicles and equipment used for service operations in various City departments. • Facility Maintenance Fund – Accounts for operational costs associated with building maintenance. Includes custodial supplies and services, maintenance and repair, utilities, and staffing costs. • Vehicle & Equipment Replacement Fund – Established to accumulate funding for the replacement of vehicles and equipment. Replacement costs are charged to departments over the asset’s life span, reflective of usage. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 252 Accounting and Budgetary Structure • IT (Information Technology)Equipment Replacement Fund – Established to accumulate funding for the replacement of information technology equipment. Replacement costs are charged to departments over the asset’s lifespan, reflective of usage. • FFE (Furniture, Fixtures and Equipment Replacement Fund – Established to accumulate funding for the replacement of facility furniture, fixtures, and equipment. Replacement costs are charged to departments over the asset’s lifespan, reflective of usage. FIDUCIARY FUNDS Fiduciary Funds are used to account for assets held by the City acting in a fiduciary capacity for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances and other governing regulations. There are two categories of fiduciary funds: Trust, and Agency. Trust Funds Trust Funds account for assets held by the City in a trustee capacity where the City oversees the use of resources in accordance with formal trust agreements. The City does not currently administer this fund type. Agency Funds Agency funds account for assets held in the capacity of an agent for individuals, governmental entities, and non-public organizations. The City does not direct fiscal or operational activities, just receives and disburses funds per direction from the entity’s management. For this reason, these funds are not included in the City budget document but may be included in the City’s Annual Comprehensive Financial Report at the direction of the City’s Auditors. • West Valley Clean Water Program Authority – Beginning July 1, 2018, the City is acting as the fiscal agent for the West Valley Clean Water Program Authority. This is an ongoing arrangement to support the JPA formed by the Town of Los Gatos and the Cities of Campbell, Monte Sereno and Saratoga to collectively manage the Clean Water Program and the Non-Point Pollution Control Program efforts. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 253 Accounting and Budgetary Structure BUDGETARY FUND STRUCTURE LIST OF PROGRAMS PROPRIETARY FUNDS FIDUCIARY FUNDS DEPARTMENTS General Fund Special Revenue Capital Improvement Debt Service Internal Service Funds Trust / Agency Council & Commissions P City Manager P P Administrative Services P P P P Community Development P P P Public Works P P P P Community Services P P Public Safety P Non-Departmental P P GOVERNMENTAL FUNDS CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 254 Accounting and Budgetary Structure General Fund (Major Fund )Special Revenue Funds Debt Service Fund Capital Funds (Major Fund) Primary Operating Fund Landscape & Lighting District Funds Bond Repayment Fund Capital Improvement Programs 111 General Fund 311 GO Bond Debt Street Improvements 411 City Funded CIP 431 Grant Funded CIP 481 Gas Tax Funded CIP Park Improvements 412 City Funded CIP 432 Grant Funded CIP 421 Tree Fine Funded CIP 422 Park In Lieu Fund CIP Facility Improvements 413 City Funded CIP 433 Grant Funded CIP Admin & Technology 414 City Funded CIP 434 Grant Funded CIP ARPA 435 Grant Funded CIP Internal Service Funds Enterprise Funds Trust Funds Agency Funds None None Insurance Funds 611 Risk Management 612 Workers Comp Operation & Maintenance 621 Office Support 622 IT Services 623 Vehicle & Equip Mtc 624 Facility Maint Asset Replacement Funds 631 Veh & Equip Rplcmt 632 IT Equip Rplcmt 633 Facility FFE Rplcmt Joint Powers Authority 713 West Valley Clean Water Authority Agency Fund is not included in the City budget document GOVERNMENTAL FUNDS 26 Assessment District Funds Fiscal Agent Programs 361 Community Facility District Bond Debt Operational and Asset Funding Programs PROPRIETARY FUNDS FIDUCIARY FUNDS CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 255 Accounting and Budgetary Structure LIST OF FUNDS GENERAL FUND .......................................................................................................................................... 111 SPECIAL REVENUE FUNDS LIGHTING DISTRICT Sarahills Lighting ................................................................................................................................ 233 LANDSCAPE DISTRICTS Arroyo de Saratoga Landscape .......................................................................................................... 241 Bonnet Way Landscape ..................................................................................................................... 242 Carnelian Glen Landscape ................................................................................................................. 243 Cunningham/Glasgow Landscape...................................................................................................... 244 Fredericksburg Landscape ................................................................................................................. 245 Greenbriar Landscape ........................................................................................................................ 246 Kerwin Ranch Landscape ................................................................................................................... 247 Leutar Court Landscape ..................................................................................................................... 248 Manor Drive Landscape ..................................................................................................................... 249 McCartysville Landscape .................................................................................................................... 251 Prides Crossing Landscape ................................................................................................................ 252 Saratoga Legends Landscape ............................................................................................................ 253 Sunland Park Landscape ................................................................................................................... 254 Tricia Woods Landscape .................................................................................................................... 255 Allendale Landscape .......................................................................................................................... 256 Covina Landscape .............................................................................................................................. 257 LANDSCAPE & LIGHTING DISTRICTS Beauchamps Landscape & Lighting ................................................................................................... 271 Bellgrove Landscape & Lighting ......................................................................................................... 272 Gateway Landscape & Lighting .......................................................................................................... 273 Horseshoe Landscape & Lighting....................................................................................................... 274 Tollgate Landscape & Lighting ........................................................................................................... 276 Westbrook Landscape & Lighting ....................................................................................................... 278 Brookview Landscape & Lighting ............................................................................................... 279 Automatic License Plate Reader (ALPR) Districts Saratoga Woods .................................................................................................................................. 280 Gardiner Park ....................................................................................................................................... 281 Lower Pierce ........................................................................................................................................ 282 Golden Triangle ................................................................................................................................... 283 Burgundy .............................................................................................................................................. 284 Austin Bainter ....................................................................................................................................... 285 STORM WATER MAINTENANCE DISTRICTS Hill Avenue Storm Water District ........................................................................................................ 291 Paramount Court Storm Water District ............................................................................................... 292 INTERNAL SERVICE FUNDS Risk Management / Liability Fund ...................................................................................................... 611 Workers Compensation Fund ............................................................................................................. 612 Office Support Services Fund ............................................................................................................. 621 Information Technology Services Fund .............................................................................................. 622 CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 256 Accounting and Budgetary Structure Vehicle & Equipment Maintenance Fund ........................................................................................... 623 Facility Maintenance Fund .................................................................................................................. 624 Vehicle & Equipment Replacement Fund ........................................................................................... 631 IT Equipment Replacement Fund ....................................................................................................... 632 Facility Furniture, Fixture, Equipment (FFE) Replacement Fund ....................................................... 633 DEBT SERVICE FUNDS 2011 Series G.O. Bonds Debt Service Fund ...................................................................................... 311 2018 Arrowhead CFD Bond Debt Service Fund ................................................................................ 361 CAPITAL PROJECT FUNDS Capital Improvement Fund – Streets Projects .................................................................................... 411 Capital Improvement Fund – Park and Trail Projects ......................................................................... 412 Capital Improvement Fund – Facility Improvement Projects .............................................................. 413 Capital Improvement Fund – Administrative & Tech Projects ............................................................ 414 Tree Fund ........................................................................................................................................... 421 Park-in-Lieu Fund ............................................................................................................................... 422 Streets Grant Fund ............................................................................................................................. 431 Park & Trail Grant Fund ...................................................................................................................... 432 Facility Improvements Grant Fund ..................................................................................................... 433 Administrative & Technology Grant Fund ........................................................................................... 434 American Rescue Plan Act (ARPA SLFRF) Capital Fund.................................................................. 435 Gas Tax Fund .................................................................................................................................... 481 CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 257 Accounting and Budgetary Structure LIST OF PROGRAMS GENERAL FUND Council & Commissions City Council ....................................................................................................................................... 1101 Commissions .................................................................................................................................... 1201 City Manager’s Departments City Manager’s Office ....................................................................................................................... 2101 City Clerk .......................................................................................................................................... 2201 Public Information Office .................................................................................................................. 2401 Administrative Services Department Finance ............................................................................................................................................. 3101 Human Resources ............................................................................................................................ 3301 Administrative Services .................................................................................................................... 3401 Community Development Department Development Services ...................................................................................................................... 4101 Advanced Planning ........................................................................................................................... 4102 Code Compliance ............................................................................................................................. 4103 Building & Inspection Services ......................................................................................................... 4201 Public Works Department General Engineering ........................................................................................................................ 5101 Development Engineering ................................................................................................................ 5102 Environmental Services .................................................................................................................... 5103 Streets & Storm Drains ..................................................................................................................... 5201 Parks & Landscape Maintenance ..................................................................................................... 5301 Community Services Department Recreation Services ......................................................................................................................... 6101 Facility Rentals ................................................................................................................................. 6201 Community Engagement .................................................................................................................. 6103 City Events ........................................................................................................................................ 6301 Community Grants ............................................................................................................................ 6302 Community Events............................................................................................................................ 6303 Public Safety Public Safety Services ...................................................................................................................... 7101 Emergency Preparedness ................................................................................................................ 7102 Non-Departmental General Administration ..................................................................................................................... 8101 Legal Services .................................................................................................................................. 8202 Emergency Operation Claims ........................................................................................................... 8901 CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 258 Accounting and Budgetary Structure INTERNAL SERVICE PROGRAMS Administrative Services Department Office Support ................................................................................................................................... 3102 Information Technology Services ..................................................................................................... 3201 IT Equipment Replacement .............................................................................................................. 3202 Risk Management / Liability .............................................................................................................. 3501 Workers Compensation .................................................................................................................... 3601 Community Development Department Facility Maintenance ......................................................................................................................... 4401 Facility (Furniture, Fixture, and Equipment) FFE ............................................................................. 4402 Public Works Vehicle & Equipment Maintenance................................................................................................... 5202 Vehicle & Equipment Replacement .................................................................................................. 5203 SPECIAL REVENUE FUNDS Public Works Assessment Districts ........................................................................................................................ 5302 DEBT SERVICE FUNDS Non-Departmental 2011 Series G.O. Bonds Debt Service ............................................................................................. 8601 2018 Arrowhead CFD Bond Debt Service ........................................................................................ 8602 CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 259 Financial Planning FINANCIAL PLANNING CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 260 Financial Planning Overview City staff provide City Council and the community with a near -term financial forecast as part of the annual budget kickoff. The following section summarizes the methodology employed in the annual long range plan development. This first section of the forecast is limited to the General Fund, the primary operating fund. The following forecast sections will focus on the other funds separately to provide clarity to the individual components and operating basis of the City’s financial structure. This includes Internal Service Funds, Special Revenue Funds, Debt Service Funds, and Capital Improvement Funds. General Fund The 2023-24 budget process continued a multi-year approach to addressing a shrinking difference between revenues and expenditures sparked primarily by extraordinary increases in the cost of goods and services . To facilitate budget development, City staff provided an updated multi-year forecast as discussed below. The multi-year General Fund Forecast looks forward three to five years, typically under static assumptions, using prior year actuals, trends, and the current year’s adopted budget as the base. The forecast does not project future operational changes as those are the prerogative of City Council and management. Therefore, the forecast provides revenue and expenditure data based on trend analysis, new data that impact trends, and relatively conservative forward-looking assumptions. The three-year forecast developed for the 2023-24 budget cycle proved especially challenging with the confluence of several factors yielding no historical insight to prepare a meaningful multi -year forecast. The pandemic rendered trend analysis unreliable with recent year revenues demonstrating previously unseen fluctuations. The unknown impact of 40-year high inflation on both revenues and expenditures complicates longer-term forecasts. Operationally, the objective of any forecast is to act as a bell-weather to identify anticipated financial challenges requiring attention in the near future. For instance, a negative net revenue amount in an out- year does not reflect what will happen, but rather is a warning that projected revenue is not keeping pace with projected expenditure growth, and that operational adjustments are required. The General Fund receives tax revenues, fees and service charges, and other receipts not allocated by law or contractual agreement to other funds. Expenditures of this fund include operating expenses traditionally associated with governments such as city administration, legal oversight, development services, public works maintenance, and public safety. Overall, the General Fund accounts for and represents the main operational activities of the City and is of primary importance for long-term planning. Other funds have focused specific purposes and are therefore not included in this forecast. In accordance with GFOA requirements, a summary level forecast for these other funds now is included separately , following the General Fund forecast, in the hopes to maintain clarity in the City’s main operational functions. General Fund Revenue Assumptions Property Taxes A 1 percent ad valorem tax based on a property owner’s taxable value – is slow to react to economic changes. This is due to the time period in which property assessment values are set, to when the tax payments are made about a year later. It takes a significant downturn trend to occur countywide before a property’s assessment value is reassessed lower. Hence, the City’s property tax revenue stream is not impacted until at minimum a year later, and often two. This also works in reverse with revenues taki ng longer to reflect economic recovery. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 261 Financial Planning At the same time, related property tax revenues such as Transfer Tax and Supplemental Tax are immediately reactive to economic shifts and can differ significantly year to year. This combination of slow and fast reactions helps to mitigate Property Tax revenue swings and allows for some lead time to prepare for revenue decreases. For the forecast, years of steady housing price increases had stabilized the revenue stream. With the pandemics shelter-in-place orders and conversions to work from home, demand for more living space and home improvements sent the housing market into a frenzy, and drove housing prices up rapidly, and building fees soared. These revenues increased so much that they offset losses in other revenue streams. For the forecast years, the overall General Fund revenues are expected to increase due to higher assessments values from the turnover and continued home improvement demand, as well as some economic recovery in other revenues. Though, to be prudent, Property Tax forecast projections are based on broader economic data as Saratoga data is heavily weighted toward higher-end homes that may not accurately reflect the wider economic view for the future of property values. That said, the Saratoga housing market is strong as buyers fight for a small pool of inventory for recently remodeled homes in the City’s top-rated school districts. While this phenomenon is expected to slow, the property tax base will increase based on pa st purchases. 2023-24 secured property tax budget reflects an 5.36 percent increase over prior year due to the recent turnover, with the forecast for future years set at a more conservative 3 percent rate. With these recent valuation gains, ownership changes will noticeably increase the taxable value, and any new construction and remodeling improvements will also increase a home’s value. These will both contribute to property assessment increases during the upcoming years as the economy settles. A number of Property Tax accounts make up the broadly termed ‘Property Tax Revenue’ but only two of the taxes make up the majority of the revenue. The 1 percent ad valorem tax (Secured Property Tax) typically accounts for 60-65 percent, while Property Tax In-Lieu-of-VLF accounts for about 25 percent of the revenue. Property-Tax-In-Lieu-of VLF is budgeted conservatively as payments are estimates based on prior year information rather than current year growth. If the prior year’s estimates were low, a posi tive true-up payment is paid with the following year’s revenues – and a negative true-up if payments were too high. Therefore, In-Lieu Property Tax Revenue growth trends loosely mirror Secured Property Tax revenue growth, with variation caused by the true-ups. Property Transfer Tax and Supplemental Tax receipts will fluctuate with housing sales as Supplemental Tax revenue comes from mid -year assessed valuation increases, and Transfer Tax revenues from the preparation of document fees. Increases and decre ases in these revenues indicate growth in Secured Property Tax the following year. Santa Clara County provides the City with updated assessment roll information on a monthly basis, which is used to further refine the estimate throughout the year. Since the end of the recession in 2012, rapid property tax growth resulted in excess ERAF distributions to Santa Clara County cities, and in turn, to revenue growth. While this revenue stream was unpredictable in the past, the State recently came to terms with Counties over how ERAF is allocated to Counties and in turn, to Cities. Hence, ERAF revenue is now considered reliable, and going forth is included in the current budget and five forecast. Sales Tax Sales Tax revenue distributions from the State are impacted by economic conditions and more quickly reflect economic trends. This revenue is distributed in several ways, with estimated payments, true -ups, and allocation corrections, making revenue projections unreliable. And because the City’s small revenue base can unexpectedly fluctuate by more than 10 percent year to year, the City depends upon our Sales Tax Consultants to closely monitor receipts and provide us with reasonable estimates. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 262 Financial Planning Transient Occupancy Tax (TOT) Saratoga’s TOT reacts quickly to economic changes, as illustrated in the 2008 economic downturn and the 2021 pandemic, where revenues in this category contracted suddenly and sharply. The pandemic shut down travel overnight, and all jurisdictions experienced an immediate loss of TOT reven ue. As public health mandates eased, TOT rebounded, with domestic travel and staycations fueling the early recovery. TOT recovered in 2021-22, and the TOT forecasts assume relatively flat growth. Business License Tax Business License Tax revenue comprises two revenue streams: 1) the actual license portion and 2) for contractors, a supplemental tax that is a percentage of any building permit’s valuation they pull during the year. The license portion of the Business License Tax can fluctuate by 10 percent year over year with normal business growth and decline. Still, over the long term, Business License Fee revenue typically holds steady. The license fee applies to a fixed universe of retail and out-of-town businesses, meaning that any growth is from home-based businesses. 2023-24 and future year business license forecasts assume relatively flat growth again due to the broadly anticipated recession. The Supplemental Business License Tax portion has different trends as revenues depend not only on the building level but also on the type and value of building permits. While valuations continue to increase as the cost of building increases, projections reflect a decrease with the expectation that construction activity will slow down from the high of last year as construction cost rose significantly. Construction Tax This revenue represents a City enacted tax charged on additional square footage as part of a building permit fee. At this point, building activity is expected to remain steady in 2023-24. Franchise Fees Franchise Fees are an alternative to Business License Taxes for those businesses exempt from the tax, including utilities (PG&E and San Jose Water Company), and cable providers. Gas, electric, and water utility franchise fees are unpredictable yearly as consumption habits fluctuate. The forecast includes an assumed growth rate equal to 2 percent. In 2022-23, the City received approximately $1.3 million in solid waste franchise fees. However, the California State Supreme Court ruling in Zolly v. the City of Oakland has resulted in the solid waste joints powers authority that covers Saratoga suspending collection of the franchise fee pending further analysis. The 2023-24 budget reflects a partial-year reduction in revenue. The forecast assumes a complete loss of the $1.3 million solid waste franchise fee revenue in 2024-25 with no restoration in future years. Development Revenues The projected growth rate for Community Development revenues is low, with the unknown impact of return - to-office impacts on remodels and the impact of inflation and stock market volatility on home investments. Forecast projections will change as uncertain economic impacts settle out. For now, each of the planning and building revenues is assessed individually, with most projections ranging from 0 percent to 2 percent annual growth. The 2022 Comprehensive Cost of Services (User Fee) Study identified approximately $0.8 million in General Fund subsidy of fee services. In response, the City Council established an updated cost recovery target for building services at 90 percent and planning at 75 percent in acknowledgment that some fees require a subsidy to advance the City’s policy objectives for protecting life, property, and environment. Fees increased effective July 1, 2023, to incorporate City Council’s updated direction on cost recov ery, reducing the subsidy by approximately $0.5 million. The forecast assumes future year increases to offset the City’s personnel cost increases, including the cost of living adjustments and benefit cost increases contained in negotiated Memoranda of Understanding. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 263 Financial Planning Rental Income Cell tower lease revenue has been flat with the consolidation of cell phone service providers over the last five years. Effective October 1, 2023, expanded its existing partnership with Los Gatos Saratoga Recreation (LGS Rec) for recreation programs to include facility rentals. The agreement provides the City a net cost savings through the reduction of 1.0 full time equivalent personnel by attrition. The agreement is in place for two years at which time the City will confirm the cost benefit of the expanded partnership. Interest Income The rates for Local Agency Investment Fund (L AIF), the State’s investment fund that the City uses, has steadily increased as federal monetary policy boost interest rates paid on fixed income securities. The 2023-24 budget includes a $1 million increase in interest income which substantially offsets impacts of the forecast structural deficit. The forecast continues to rely on favorable interest rate s in the LAIF portfolio as their investment lag the market by several months. Interest income will decline as the City draws down on the American Rescue Plan Act’s State and Local Government Fiscal Recovery Fund allocation to Saratoga, $7.3 million. The funds are appropriated for capital projects and must be fully expended by 2025. GENERAL FUND EXPENDITURE ASSUMPTIONS Salary Labor cost increases in 2023-24 incorporate a 5.6 percent cost-of-living increase (COLA) as negotiated under the two-year labor contract effective July 1, 2023. Forecasted salary & benefit expenditures reflect maximum MOU increases for current staff levels, promotional increases, and a zero-vacancy factor, whereas prior year amounts are actual costs. The impact of this assumption is that the forecast years are typically much higher than actuals. Another consideration in salary projections is the anticipated turnover of a large number of long-term staff expected to retire over the next five years. Service model changes and tighter restrictions on overtime and temporary help would help to contain salary increases, but projections use a 3.5 to 4.5 percent annual increase depending on employee group. Benefits The largest share of employee benefit costs arise from the City’s retirement plan contract with the California Public Employees’ Retirement System (CalPERS). For 2023-24, the City’s contribution rates range from 8 to 13.3 percent of eligible salary, depending on the employee’s benefit plan. The second largest benefit cost is the City’s contribution to medical premiums which are capped by contract with employees and the unrepresented employee salary benefits plan. Miscellaneous benefits are also provided based on the employee’s group however the costs of those benefits less volatile. Pension Unfunded Accrued Liability In 2014, CalPERS separated the “Normal Cost” for current year pension costs from the prior year’s liability, known as the “Unfunded Accrued Liability” (UAL). The Normal Cost is a rate applied on the current payroll and represents the cost to provide the CalPERS pension benefit. For UAL, agencies are paying their allocated share of prior year liabilities accrued due to CalPERS investment losses and assumption changes over a long-term payment plan. Similar to a mortgage, this will result in significantly higher overall costs due to the time factor of interest costs. Saratoga’s City Council established a policy to make annual UAL payments more elevated than the required contribution level to reduce the outstanding liability quicker, reduce the overall cost, and stabilize the yearly p ayment amount into the future. The City decisions to reduce the UAL results in a budgeted additional UAL payment, above the minimum required by CalPERS, of $650,000. Reduction in the additional UAL payment is a budget balance measure in the forecast. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 264 Financial Planning Operating Expenditures Level of service and available budget drive materials and supplies, fees, contract services, and consultants with operating expenditures held to maintain services. Much of the spending in this category is subject to inflationary pressures, and the extent to which those pressures influence future costs remains unknown. The uncertainty in this category renders the near-term forecast a challenge, and staff will provide an update to City Council at their annual retreat. Public Safety Under the Sherriff’s service contract, annual increases are either 1) the change in personnel costs or 2) CPI plus 2 percent, whichever is less. Due to the high inflation rate in 2022, the contract will increase by 7 percent or approximately $450,000 yearly. The agreement provides service level flexibility, allowing for service or hour increases or decreases each year. The standard service level is brought forward for the forecast with an estimated increase of 7.0 percent. Community Grants Future year grants grow slightly higher to reflect the Council’s practice of gradually increasing support over time as costs to provide services increase and additional community grant funding requests are received. Internal Service Funds (ISF) ISF functions growth factors vary by fund driven primarily by contract services outside the City's direct control. These funds have stable funding charges that are adequate to improve resource management funding, transparency, and management over a 20-year long-term projection. Liability Risk premiums are escalating quickly over the next few years as the marketplace tightens severely. Workers Comp is also increasing but at a slower pace. Vehicle Maintenance, IT Services, and Building Maintenance ISF programs also grow yearly due to ongoing labor and service level cost increases. Replacement ISF programs include a Vehicle & Equipment replacement program, a Facility Furniture, Fixture, & Equipment (FFE) program, and a more comprehensive IT Replacement program. These funds maintain a flat rate into the forecasted years. GENERAL FUND FISCAL SUSTAINABILITY Overall, the City’s General Fund forecast projections illustrate that revenues are not keeping pace with expenditures. Operational reductions, or possibly structural changes will be needed to align revenue and expenditure growth in the out years. Further, changes in technology and communication have increased resident expectations, and because of that, the City’s goal to provide a high level of services has expanded at a pace over the last decade that is exceeding funding resources currently available to the City, and under the forecast projections, not attainable in the future. Additionally, the bigger picture of maintaining city infrastructure into the future puts another level of funding needs on the table that cannot be addressed through current revenue streams. Staff has developed and implemented some infrastructure maintenance funding through the budget process for streets and park and facility infrastructure, but much more needs to be done to create a comprehensive business plan to adequately address the full breadth of city infrastructure. As time and resources allow, inf rastructure replacement master plans will be developed for categories including streets, parking lots, streetlights, signal lights, storm drains, and city facilities. While the development of citywide infrastructure Master Plans and potential funding sources are expected to take decades, it is on City management’s radar. Current practice has some revenues dedicated to Capital Improvement Programs, such as pavement management. Additionally, the City uses net revenue to add to reserves established by City Council. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 265 Employee Compensation EMPLOYEE COMPENSATION CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 266 Employee Compensation PERSONNEL COSTS The City of Saratoga’s total salary and benefit expenditures include labor increases from cost-of-living- adjustments (COLA), employee step increases, pension cost increases , fringe benefit cost increases, and additional payments to the City’s unfunded pension liability. While the City is the fiduciary agent for the West Valley Clean Water Program, their budget is not included in the City’s budgetary information as the City only assists them with their financial transactions. 2023-24 NOTABLE CHANGES The budget reflects reduced authorized full-time equivalent personnel (FTEs) of 0.75 resulting from the expanded partnership with Los Gatos Saratoga Recreation, an independent district, to assume management of facility rentals. The expanded partnership allows the City to eliminate 1.0 FTE through attrition, effective October 1, 2023. An additional 0.25 FTE reduction will occur in 2024-25. The budget also includes salary and benefit increases negotiated with the City’s two organized labor groups, and City Council adopted the unrepresented compensation plan effective July 2023. The contract provides a 5.6 percent and 2.39 percent salary adjustment in July 2023 and July 2024, respectively. The new benefits packages also reflect a modification in the medical benefits cost share for most City employees, which caps the City’s contribution. STAFFING STRATEGY Saratoga’s fiscal health has benefited from a staffing strategy with three components: regular benefited employees, temporary un-benefited employees, and contract services to provide services responsive to community needs. Contract Services The strategy provides the City with flexibility to meet fluctuating demand for services while ensuring stability in core public services such as planning and public works. Contract services are typically utilized for landscape maintenance, janitorial, development and building, and attorney services. The City also finds that the contract arrangement with the Santa Clara County Sheriff’s Office provides a cost-effective service with a higher level of police services than could be attained by in -house City-funded resources. Dedicated Sheriff Deputies and staff are assigned to the City, although personnel and services can easily adjust as circumstances warrant. This beneficial arrangement provides for expertise in management, administrative, technical, and operational duties, as well as equipment, and communication resources integrated into the smaller city service level on a day -to-day basis. PERSONNEL BUDGETING Labor cost projections are prepared using known data on current employees, current MOU provisions, and California Public Employees’ Retirement System (CalPERS), medical, dental, vision, long-term disability, and life insurance premiums. In some years, these projections are predictable, and in others there is fluctuation, such as when MOUs expire, and new MOU provisions have not yet been finalized. The City does not use a vacancy factor in salary projections as typically there is very little turnover due t o successful retention strategies. When there is turnover or retirements, most positions require temporary backfill or a quick recruitment process due to the City’s limited staffing model. With strong retention, the City has many long-term staff that are at the top salary step, but that ratio is expected to change as long-term staff are beginning to age out of the City’s workforce in growing numbers . A payroll expense buffer is built into budgeted salary to fund unplanned cost impacts that may occur during the fiscal year, such as turnover or disability backfill, PTO payouts, excess overtime, and to fund the Compensated Absences Reserve in compliance with policy, if needed at year-end. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 267 Employee Compensation Health and dental insurance benefits are calculated at the employee’s current coverage status under their chosen health insurance plan to provide accuracy in budgeted benefit costs. The difference in premiums between Single, Plus One, and Family rate is significant and tracked closely. Other insurance benefit coverage costs are stable and not based on coverage status. Because an employee’s insurance coverage status may change during the course of the year, there is a slight buffer built into budgeted benefit costs. Adopted salary and benefit schedules are available online at: https://www.saratoga.ca.us/177/Salary-Benefits TERMS OF EMPLOYMENT Government Code Section 3505, commonly referred to as the Meyers-Milias-Brown Act (MMBA) governs the City’s relationship with all employees. The MMBA authorizes creation of collective bargaining units (employee unions or associations) and requires the City to “meet -and-confer” over “…wages, hours, and other terms and conditions of employment.” Most regular employees are represented by one of two bargaining units: 1) the Saratoga Employees Association (SEA) with 32 benefited full and part-time employees, and 2) the United Brotherhood of Carpenters and Joiners of America Local Union No 2236 (UNION) for the 13 Public Work’s Corporation Yard staff. Thirteen City employees, primarily management, are classified as unrepresented. The City Manager, while also unrepresented, has a negotiated contract. Hourly (non-benefited, temporary) staff are not represented and only receive benefits prescribed by law such as the Affordable Care Act and State paid time off requirements for part-time employees. Salaries and benefits for regular employees are enumerated in two bargaining unit Memoranda of Understanding (MOUs). Unrepresented employees receive substantially similar benefits with several exceptions as outlined in City Council Resolution. Employee salaries are posted to the City’s website incompliance with State law regarding publicly available pay schedules. Terms of employment, including the above-mentioned contracts, are available online at: https://www.saratoga.ca.us/178/Employee-Terms- of-Employment COMPENSATION Salaries are adjusted annually as defined by the MOUs or resolution, and typically provide cost -of-living adjustments (COLA) based on the annual average for the 12-month period running from January 1 to December 31 of the U.S. Department of Labor, Bureau of Labor Statistics, “All Urban Consumers (CPI-U)” for the San Francisco-Oakland-San Jose region. Per State law, the City Manager’s annual cost of living adjustment increase is capped at the California Department of Industrial Relations (DIR) rather than the US Bureau of Labor Statistics. PENSION BENEFITS Saratoga’s benefited employees are enrolled in one of three pension benefits, all based on date of hire and State law. The City pays a variable annual cost as a percentage of payroll for active employees plus a flat unfunded liability cost. Employees pay a fixed contribution to the pension benefit, based on their tier, ranging from 7.0 percent to 7.25 percent. Employees enrolled in CalPERS pension are not eligible to participate in Social Security therefore neither the City nor employee contribute to the So cial Security system. Medicare participation is required for all employees hired after March 31, 1986. •Tier 1 employees were hired before May 12, 2012 and receive the “2.0% @ 55” benefit. The benefit provides 2 percent of the employee’s highest 12-month eligible compensation for each year of service to the City of Saratoga when the employee is age 55. The benefit increases annually to a maximum of CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 268 Employee Compensation 2.413 percent for each year of service if the employee retires at 63. The 2% @ 55 benefit schedule is available at: https://www.calpers.ca.gov/docs/forms-publications/benefit-factors-local-misc-2-at-55.pdf •Tier 2 employees are those hired on or after May 12, 2012 and were an active employee for another CalPERS agency before May 12, 2012, receive the “2.0% @ 60” benefit. The benefit provides 2 percent of the employee’s highest 36-month eligible compensation for each year of service to the City of Saratoga when the employee is age 60. The benefit increases annually to a maximum of 2.413 percent for each year of service if the employee retires at 63. The 2% @ 60 benefit schedule is available at: https://www.calpers.ca.gov/docs/forms-publications/benefit-factors-local-misc-2-at-60.pdf •Tier 3 employees receive the “2.0% @ 62” benefit formula and are those hired after January 1, 2013 and otherwise ineligible for Tier 2 benefits. Tier 3 employees are also referred to as “PEPRA” after the Public Employee’s Pension Reform Act of 2013 (PEPRA) which mandated the creation of “2.0% @ 62” benefit for all CalPERS employers. The benefit provides 2 percent of the employee’s highest 36-month eligible compensation for each year of service to the City of Saratoga when the employee is age 62. The benefit increases annually to 2.413 percent for each year of service if the •employee retires at 67. Unlike Tier 1 and Tier 2, Tier 3 pension benefit is capped at approximately $162,000. The 2% @ 62 benefit schedule is available at: https://www.calpers.ca.gov/docs/forms-publications/benefit-factors-local-misc-2-at-62.pdf Note: Vacant headcount reported as Tier 3 Fiscal Year Saratoga’s Headcount and CalPERS Contribution Rate by Fiscal Year and Benefit Tier (Rate is Percentage of Eligible Payroll) Unfunded Liability (UAL) Minimum Payment Tier 1 2.0% @ 55 Tier 2 2.0% @ 60 Tier 3 2.0% @ 62 Headcount City Contrib.Headcount City Contrib.Headcount City Contrib. 2012-13 53 11.040%-8.552%-6.700% 2013-14 50 11.603%3 8.768%4 6.700% 2014-15 48 12.330%4 8.715%5 6.700% 2015-16 58,896 44 9.353%7 7.510%5 6.730% 2016-17 101,604 41 9.558%9 7.809%7 6.930% 2017-18 183,002 38 9.599%10 7.850%10 6.908% 2018-19 286,594 37 10.152%8 8.346%13 7.266% 2019-20 416,921 36 10.868%8 8.668%14 7.072% 2020-21 502,729 35 11.746%7 9.442%16 7.874% 2021-22 598,945 32 11.600%7 9.300%19 7.730% 2022-23 725,952 29 11.600%8 9.300%21 7.700% 2023-24 605,938 27 13.260%9 10.870%26 8.000% CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 269 Employee Compensation City of Saratoga Council Members have the option to join the City’s CalPERS pension plan, with four of the five members currently electing to do so. Public safety services are contracted through Santa Clara County Sheriff’s Office, meaning all Sheriff Office personnel belong to the County’s pension account and their benefit costs are paid by the County. The County recovers salary and benefit costs through the contractual service fees. Pension Benefit Costs The City’s CalPERS Contribution payments are comprised of employee and employer contributions. The Employee Contribution Rates under the 2% @55, and the 2% @60 benefit plans is constant at 7 percent. Under the PEPRA 2% @62 plan rate, the Employee Contribution Rates are determined each year through an actuarial valuation, with the employee responsible for approximately 50 percent of the cost. The following chart shows a history of Saratoga’s contribution rates and the number of active employees enrolled in the various pension benefit Tiers. Pension Costs Drivers Employer rates are based on actuarial studies performed as of June 30th using several assumptions including but not limited to: investment return assumptions, rate smoothing policies, and demographics . Various agency-based factors such as covered payroll changes including increases and decreases in employee headcount or wages. A guide to CalPERS funding is available at: https://www.calpers.ca.gov/page/about/organization/facts-at-a-glance/pension-buck CalPERS actuarial assumptions are established based on the concept that the value of its stock, bonds and other holdings generate income over an employee’s lifetime to fund the majority of the pension costs. In the early 1990s, with record high interest rates bringing in large returns, the actuarial Investment Rate of Return (IRR) rate had risen to a high of 8.75 percent. By 2003, CalPERS had adjusted the income growth rate down to 7.75 percent as the longer-term annualized IRR was only slightly higher. After the economic downturn began in 2008, returns heavily diminished for many of the following fiscal years and CalPERS staff repeatedly requested the IRR be adjusted further downward. In 2012, the CalPERS Board agreed to reduce the IRR to 7.5 percent, to be phased in over two years. This IRR change impacted Miscellaneous Employer Contribution Rates by increases of around 1 percent, and up to 2 percent of payroll while most Public Safety Plan’s Employer Contribution Rate increased by 3 percent of payroll. Saratoga’s rate increase was 0.6 percent in 2013-14, and another 0.73 percent in 2014- 15. The increases were lower than most other cities due to having stayed with the original 2 % @ 55 benefit plan, while some agencies increased their benefits to 2.5 or 2.7% at 55 before the Great Recession. Rate Smoothing Policies The severity of the economic downturn that began in 2008 severely impacted CalPERS portfolio’s actuarial value of assets, which in turn prompted actuarial staff to adjust their existing methodology. Initially the remedy was a widening of the corridor through a smoothing policy that spread investment return impacts over a rolling 15-year period, and Experience Study (actuarial assumption changes) gains and losses over a rolling 30-year period. This methodology led to stabilized rates, but CalPERS staff quickly came to understand this policy would understate risk due to the slow progress to full funding. The impact from rolling the smoothing and amortization periods would lead to unknown rate peaks and a lack of transparency. With Governmental Accounting Standards Board’s issuance of a new accounting standard that required 1) the reporting of actual pension liability, not just pension funding, and 2) favored closed periods without smoothing, CalPERS approved a further change in their amortization and smoothing policy in April of 2013. This new policy had employers paying for annual gains and losses over a fixed 30-year period, with the increases or decreases in the direct rate spread over a 5-year period – the rates would then plateau for twenty years, and then ramp back down over the final 5 years. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 270 Employee Compensation This methodology was intended to improve the funded status in the long term and significantly reduce the probability of employer contribution rates increasing by more than 5 percent of payroll in a single year. In addition, CalPERS separated the pension costs for current year liabilities (called the normal cost) from the actuarial assumption changes and prior year liabilities, (known as the UAL). This change was to provide better rate stability, and payment option for cities. However, with the severe devaluing of CalPERS investments during the recession, CalPERS actuarial staff continued to state the IRR decrease was insufficient and asked for a further decrease to 7.25 percent. In 2015-16, the CalPERS Board agreed to lower the rate over a long-term plan that would allow very small decreases only in positive investment years. In FY 2016/17, CalPERS staff convinced the Board that this slowly decreasing IRR Rate plan was not enough to ensure CalPERS would remain sustainable. Subsequently, the Board agreed to lower the rate applied to new fiscal year UAL bases to 7 percent over a three-step phase-in (7.375 percent, 7.25 percent and 7.0 percent), with each step having a five-year phase in period – meaning the total phase in period would take seven years. The Board understood that the impact of the IRR change would be both financially substantial and detrimental to CalPERS agencies and offered this incremental change plan so agencies would have time to adjust to the increases. The downside to this phase-in policy is that the ramp-up period postpones payment and thereby incurs negative amortization, resulting in increased cost over the long-term. CalPERS also conceded that the IRR rate would need to continue to be decreased, down to 6.5 percent in the future. Meaning, that after the 7 percent phase-in is complete, CalPERS plans to make small, incremental decreases only in positive investment years to reduce financial impacts. In fiscal year 2022-23, the discount rate reduced to 6.8 percent. More information about CalPERS’ smoothing policies are available at: https://www.calpers.ca.gov/docs/board-agendas/201802/financeadmin/item-7a-03_a.pdf In 2017-18, CalPERS announced another actuarial modification. The Board agreed that going forward, the annual Experience Study gains and losses would no longer be factored in over 30 years with a five-year phase-in. Their new plan factored in all new future year gains and losses over 20-years, with a five-year phase-in period. Together, these actions are expected to bring the pension plans up to a safe and sustainable funding level within a shorter time frame. CalPERS updated their Experience Study in 2021 and is accessible at: https://www.calpers.ca.gov/docs/forms-publications/calpers-experience-study-2021.pdf Actuarial Assumptions As part of CalPERS’ ongoing actuarial analysis, the various demographic assumptions are reassessed on a rotating basis. A review was conducted in 2013 and again in 2016 that revealed mortality, retirement age, and wage increase factors changed considerably, thereby impacting benefit costs. CalPERS standard practice is to amortize the Assumption Changes over 20 years rather than the 30 years they had used for investment impacts. As it stands now with the recent modification, all future year impacts will be amortized over 20 years. Even though the economic downturn and demographic updates have negatively impacted pension rates, the “Miscellaneous 2% at 55 Risk Pool” suffered less because the plan design was based on actuarially sound principles and experience data. Whereas the enhanced plans (2.5% @ 55, 2.7% @ 55 for miscellaneous, 3% @ 50 or 55 for Public Safety) were based on short-term assumptions that used estimated – not realized factors. The higher benefit plans ultimately proved to be fiscally unsustainable, and as a result, will experience much larger PERS rate increases in the coming years. Over time, all CalPERS defined contribution plans other than the new PEPRA plans will be phased out as “Classic” employees leave the workforce. With the new amortization and smoothing policies and ever-changing actuarial assumptions, Saratoga’s pension costs will continue to increase in the upcoming years. However, because the City took proactive measures to pay a large portion of the Unfunded Accrued Liability and has continued to pay more than the annual required contribution UAL payment each year, the City’s susceptibility to rate volatility is CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 271 Employee Compensation significantly decreased, and the overall cost reduced. This fiscally responsible approach allows the City to better plan for and endure economic impacts during inevitable future economic downturns and has contributed toward the City’s efforts to operate under a financially sustainable strategy. The actuarial valuation reports for all public agencies participating in CalPERS area available online at: https://www.calpers.ca.gov/page/employers/actuarial-resources/public-agency-actuarial-valuation-reports Note: Search “Saratoga City” in the name field and click the plus sign to the left of the Employer ID Number to open the list of available reports. Reports are issued once per year in the August timeframe and lag approximately 12 full months from the asset and liability measurement date. For example, the valuation report dated July 2022 uses a measurement date of June 30, 2021. Pension costs and unfunded pension liabilities resulting from the June 30, 2021 valuation date impact City costs beginning July 1, 2023; 24 months following the measurement date. Summary of Cost Containment Measures •Effective with the 2011 MOUs, employees began paying the full 7 percent CalPERS employee contribution from their wages. •Effective May 12, 2012, Tier II was implemented for new employees . •Effective January 1, 2013, all new CalPERS members were assigned to the PEPRA pension plan . •Annual savings equals the total difference between what a Tier I pension factor would cost for employees less the actual cost incurred for Tier II and PEPRA employee pension costs. •The City makes additional payments to the Unfunded Accrued Liability (UAL) as funder permit. DEFERRED COMPENSATION EMPLOYER MATCH Under the MOUs effective July 1, 2023, the City provides employees with a $50 per month contribution to an IRS Section 457 deferred compensation plan, plus an additional match contribution, up to $100 per month, for a total employer contribution of $150 to their retirement savings plan, in addition to their pension. For at-will employees (Directors and City Manager) the City provides a match contribution up to $250 per month. CAFETERIA PLAN AND MEDICAL BENEFITS The City offers employees a Cafeteria Plan allowance to purchase or opt out of purchasing medical insurance for themselves and their dependents. Saratoga contracts with the CalPERS medical insurance pool as authorized in the Public Employees’ Medical and Hospital Care Act (PEMHCA), which offers a variety of different HMO and PPO medical options. As a contract agency through PEMHCA, the City is required to make a minimum contribution (referred to as the PEMHCA minimum) for active and retired employees to purchase medical insurance through PEMHCA. More information about CalPERS medical insurance plan options is available online at: https://www.calpers.ca.gov/page/active-members/health-benefits/plans-and-rates Although CalPERS has substantial negotiating powers, medical insurance premiums typically continue to increase each year. In 2015, MOU negotiations resulted in a change to the medical insurance benefits from employer paid coverage, to a base contribution of $800 for Single Employees, $1600 for Employee + One plans, and $2,080 for Employee + Family plans, beginning calendar year 2016. Under the MOU, the City’s base increases by 50 percent of the average medical premium increase each future year, and employees pay the remainder of the insurance premium. Section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA), establishes a minimum monthly employer premium contribution assessed on participating agencies who do not provide retiree health insurance but have City retirees that choose to continue their participation in CalPERS health plans. The employer contribution is adjusted annually by the board to reflect changes in the medical care component of the CPI-U. The minimum employer contribution is $1,812 for calendar year 2023. The City CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 272 Employee Compensation includes this amount in the operating budget as an ongoing retiree cost, which currently amounts to approximately $38,000 per year for an estimated 20 to 22 participating retirees next fiscal year. Effective January 1st Annualized Saratoga Cafeteria Plan Contributions with Kaiser Permanente Premiums for Reference Employee Only Employee + 1 Employee + 2/More City Cap Kaiser City Cap Kaiser City Cap Kaiser 2016 $9,600 $8,958 $19,200 $17,915 $24,960 $23,290 2017 9,684 8,801 19,368 17,601 25,176 22,882 2018 9,792 9,358 19,584 18,717 25,464 24,332 2019 9,792 9,219 19,584 18,438 25,464 23,969 2020 10,044 9,222 20,076 18,444 26,112 23,977 2021 10,428 9,764 20,868 19,527 27,120 25,386 2022 10,644 10,285 21,288 20,569 27,672 26,740 2023 11,013 10,965 22,029 21,930 28,638 28,509 2024 11,625 12,257 23,262 24,514 30,246 31,868 Summary of Cost Containment Measures Medical insurance is the second largest benefit cost. The City has implemented various cost containment measures over the past decade to address the impacts of premium increases. Like many other service costs, from 2023 to 2024, premium increases for the most popular plan, Kaiser, is 11.9 percent year -over- year. Previous year increases were anywhere from 50 to 75 percent lower. For 2025, the City's agreement with the largest employee group and the benefits plan provided to the unrepresented employees caps the year-over-year increase in the employer's contribution to medical at 2.39 percent. Benefit costs beyond 2025 for the largest employee group are subject to future negotiations. OTHER WELLNESS BENEFITS The City contracts for its dental insurance and with Principal for Life and Disability (AD&D) Insurance. Dental insurance premiums and Life and AD&D premiums are paid 100 percent by the City. Employees may elect to enhance their AD&D coverage through the group plan, at their own cost. Currently, the City self-funds short-term disability coverage for 75 percent of wages after an employee’s paid time-off is exhausted, up until long-term coverage activates at six months. Employees have the option to enhance their long-term disability and life insurance plans, and to obtain vision care coverage through a group plan, again at their own cost. OVERALL EMPLOYEE COMPENSATION SUMMARY In summary, 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). https://www.saratoga.ca.us/178/Employee-Terms-of-Employment CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 273 Glossary GLOSSARY CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 274 Glossary Acronyms and Abbreviations Following is a list of acronyms common to local government terminology: AB Assembly Bill ABAG Association of Bay Area Governments ACFR Annual Comprehensive Financial Report ADA American Disabilities Act ARPA American Rescue Plan Act ARS Automated Reporting System BMP Below Market Price (Housing) CalPERS California Public Employee’s Retirement System CARES Act Coronavirus Aid, Relief and Economic Security Act CDBG Community Development Block Grant CEQA California Environmental Quality Act CERT Community Emergency Response Team CFD Community Facility District CIP Capital Improvement Program COP Certificates of Participation CPI Consumer Price Index CSMFO California Society of Municipal Finance Officers CY Current Year DART Disaster Aid Response Team DOJ Department of Justice EOC Emergency Operations Center ERAF Educational Revenue Augmentation Fund FEMA Federal Emergency Management Agency FFE Furniture, Fixtures & Equipment (IS) FTE Full-Time Equivalent (2080 annual work hours) FY Fiscal Year GAAP General Accepted Accounting Principals GASB Governmental Accounting Standards Board GFOA Government Finance Officers Association GIS Geographical Information System G.O.General Obligation (Bond) HAZMAT Hazardous Materials HHW Household Hazardous Waste HUD Housing & Urban Development HVAC Heating/Ventilation Air Conditioning ISF Internal Service Fund IT Information Technology JPA Joint Powers Authority LAIF Local Agency Investment Fund LLD Landscape and Lighting District LT Long-Term (as in Long-Term Notes Receivable) MIS Management Information Systems MOU Memorandum of Understanding MVLF Motor Vehicle in Lieu Fee (See also VLF) NPDES National Pollutant Discharge Elimination System OCJP Office of Criminal Justice Planning OEM Office of Emergency Manufacturer OES Office of Emergency Services CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 275 Glossary PC Personal Computer PCI Pavement Condition Index PERS Public Employees Retirement System POA Police Officers Association PW Public Works Department PY Prior Year RDA Redevelopment Agency ROW Right-of-Way SB Senate Bill SCC Santa Clara County SLESF Supplemental Law Enforcement Services Fund Grant SLFRF State and Local Fiscal Recovery Funds TDA Transportation Development Act TEA Tax Equity Allocation TFCA Transportation Fund for Clean Air TOT Transient Occupancy Tax VLF Motor Vehicles In Lieu Fee (see also MVLF) VTA Valley Transportation Agency WVCWP West Valley Clean Water Program WVSD West Valley Sanitation District CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 276 Glossary Page left blank intentionally CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 277 Glossary TERMS Accounting System - The set of records and procedures that are used to record, classify, and report information on the financial status and operations of the City. Accrual Basis Accounting –An accounting method in which transactions are recognized at the time they are incurred, regardless of the timing of related cash receipt and/or disbursement. Ad Valorem Taxes - Latin for “in proportion to the value”. This classification refers to real and personal property taxes levied on the basis of the property’s value. These rates are applied to the secured, unsecured, supplemental, and other miscellaneous tax rolls. General Obligation (G.O.) Bond assessments are also included in this classification. Adoption – A formal determination by the City Council, which approves an action, such as the Budget Adoption sets the spending limits for the fiscal year. Some adoptions, such as the City's budget, are adopted by Council resolution. Agency Fund – A fund used to account for assets held by the City in the capacity of Fiscal Agent for individuals, organizations, or other governmental entities. ARPA (American Rescue Plan Act) – Federal legislation enacted in 2021 to address the economic and social impacts of the of 2020 Coronavirus (COVID-19) pandemic. The Act created the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) which provides state, local, and Tribal governments direct allocations disbursed in two tranches: July 2021 and July 2022. Use of the funds is overseen by the United Stated Department of Treasury and requires annual reporting to disclose their uses. Saratoga received $7.2 million in funding and allocated the funds to the capital improvement program for needed regional clean water infrastructure improvements in 2021-22. Amortization - The gradual elimination of an asset or liability, such as a bond premium, over a specified period of time. Annual Budget - A budget applicable to a single fiscal year. Annual Comprehensive Financial Report (ACFR) - The official financial report of the City. The ACFR includes an audit opinion as well as basic financial statements and supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions. Appropriation - An authorization made by the City Council, which permits officials to incur obligations against and to make expenditures of government resources. Appropriations are typically granted for a one- year period. Assessed Valuation - A value established for real property for use as a basis in levying property taxes. For all agencies in the State of California, the County for the secured and unsecured property tax rolls establishes assessed value; the utility property tax roll is valued by the State Board of Equalization. Under Article XIII of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100 percent of full value. Proposition 13 also modified the value o f real taxable property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change of ownership. Personal property is excluded from these limitations and is subject to annual reappraisal. Assessment Fund –A fund used to account for special levies made against certain properties to defray part or all of the costs of a specific improvement or service deemed to primarily benefit those parties. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 278 Glossary Audit - Prepared by an independent Certified Public Accountant (CPA), the primary objective of an audit is to determine if the City's Financial Statements present fairly the City's financial position and results of operations in conformity with generally accepted accounting principles. In conjunction with their performance of an audit, it is customary for an independent auditor to issue a Management Letter stating the adequacy of the City's internal controls as well as recommending improvements to the City 's financial management practices. Balanced Budget – Refers to a budget funding plan in which total funding sources exceed total funding uses. Total funding sources would include revenues, transfers in from other funds, use of fund balance, and other sources such as grants, loans, or bond proceeds. Total funding uses would include expenditures, transfers out to other funds, and retention of funds to fund balance. Bi-Annual Budget – A budget plan that is applicable to two fiscal years. Bonds - A bond is a written promise to pay a specified sum of money (called the face value or principle amount) at a specified date or dates in the future (called the maturity date) together with period interest at a specified rate. Bonds are typically used to finance capital facilities. Budget - As the City's financial operating plan for the fiscal year, the budget displays the estimated expenditures (costs) for providing services and the estimated sources of revenue (income) to pay for them. Once the City Council adopts the budget, the total becomes the maximum spending limit. Saratoga’s budget encompasses fiscal year (July 1 through June 30). Budget Amendment - The Council has the sole responsibility for adopting the City budget, and may amend or supplement the budget at any time after adoption. The City Manager has the authority to approve administrative adjustments to the budget as outlined in the Financial and Administrative Policies set by Council. Budgetary Basis – This refers to the basis of accounting used to estimate financing sources and uses in the budget. This generally takes one of three forms: GAAP, cash, or modified accrual. Budget Calendar - The schedule of key dates which the City follows in the preparation and adoption of the budget. Budget Document - The official financial spending and resource plan submitted by the City Manager and adopted by the City Council explaining the approved budget to the public and City Council. Budget Message - Included in the opening section of the budget, the Budget Message provides the Council and the Public with a general summary of the most important aspects of the budget, comparative data from previous fiscal years, goals and objectives, and the views and recommendations of the City Manager. Budget Overview – A department or program section in which the operational focus in the upcoming year is discussed. Significant fiscal data and impacts of budgetary changes are included in the discussion. Budget Policies - General and specific guidelines adopted by the Council that govern the financial plan's preparation and administration. Building Permit - Fee required for new construction or for any alteration or addition to a residence or commercial building. The fee is based on square footage and valuation. Electrical or plumbing/mechanical work will require a similar permit. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 279 Glossary Business License Tax – A tax imposed on those conducting business within the City limits. Business License Tax is a non-regulatory tax implemented for the purpose of raising revenue to support General Fund activities. California Public Employee's Retirement System (CalPERS) – A State of California administered pension plan provided to State and Local Government employees, with contributions paid by both the City and the employees. CARES Act –Coronavirus Aid, Relief and Economic Security Act A stimulus bill passed in response to the economic fallout of the COVID-19 pandemic in the United States. Capital Assets - Assets exceeding $10,000 and having a useful life of several years. Capital assets are also called ‘Fixed Assets’ and include land, buildings, machinery, and equipment. Capital Expenditures – Funds spent for the construction, improvement, or rehabilitation of City infrastructure. Capital Improvement Plan (CIP) - The workplan or collection of schedules for the major construction of roads, sidewalks, City facilities and/or park improvements and for the purchase of equipment. The first year of the capital budget appropriations are adopted along with the operating budget, and the overall 5- year capital workplan. Capital Projects - Expenditures that have a value of $25,000 or more which result in the acquisition of, construction of, rehabilitation of or additions to, infrastructure and fixed assets with a useful life of at least 5 years at a fixed location. Capital Projects Fund - In governmental accounting, a fund that accounts for financial resources to be used for the acquisition or construction of capital facilities. The total cost of a capital project is accumulated in a single expenditure account which accumulates until the project is completed, at which time the fund ceases to exist. Capital Reserve – A fund balance account used to segregate a portion of funds set aside for capital program expenditures. These funds are subsequently used to fund future capital acquisitions or infrastructure construction. Carryforward/Carryover – Funds used during a financial year which are transferred to the budget for the following year. Cash Basis Accounting - A basis of accounting under which transactions are recognized only when cash is received or disbursed. City Code – The City’s listing of City Council approved ordinances currently in effect. The code defines City policy with respect to areas such as planning and land use regulations, business regulations, etc. Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contingent Liabilities - Items which may become liabilities of the City but are undetermined at a given date, such as pending lawsuits, unsettled disputed claims, unfilled purchase orders and uncompleted contracts. Contract Services - Services provided to the City from the private sector or other public agencies. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 280 Glossary Debt Service - Payment of the principal and interest on an obligation resulting from the issuance of bonds, notes, or Certificates of Participation (COPs). Debt Service Fund - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Deficit - The excess of liabilities over assets. Department - A major organizational unit of the City, which has been assigned overall management responsibility for an operation, or a group of related operations within a functional area. In Saratoga , Department Heads are the chief administrators within a department. Depreciation – The prorated expense of a fixed asset, less any salvage value, charged as an expenditure over the estimated service life of the asset. Encumbrances - Commitments against an approved budget for unperformed (executory) contracts for goods or services. They cease to be encumbrances when the obligations are paid or otherwise terminated. Enterprise Funds - Established to account for the financing of self-supporting activities of governmental units, which render services on a user charge basis to the general public. Equipment Replacement Fund – This fund is used to account for the replacement of existing fixed assets as equipment, machinery or building improvements become unserviceable or obsolete. Expenditure -The outflow of funds paid or to be paid for an asset obtained or goods and services obtained. Note: An encumbrance is not expenditure; an encumbrance reserves funds to be expended. (See encumbrances.) Fiduciary Funds – Used to account for assets held by the City acting in a fiduciary capacity for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances and other governing regulations. There are two categories of fiduciary funds: Trust and Agency. Fiscal Year - A 12-month period to which the annual operating budget applies and at the end of which the City determines its financial position and results of its operations. The City’s fiscal year runs from July 1 st to June 30th. Fixed Assets - Non-consumable assets of long-term nature such as land, buildings, machinery, furniture, and other equipment. The City has defined such assets as those with an expected life in excess of one year and value in excess of $10,000. Franchise Fees - Imposed on utility companies for the privilege of doing business in the City. Fees are usually based upon a percentage of gross revenue derived from business conducted in the City. Full-time Equivalents (FTE) - The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year. Full-time employees are paid for 2,080 hours in a year equating 1.0 FTE. Correspondingly, a part-time employee who worked 1,040 hours would equate to 0.5 FTE. Fund - An independent fiscal and accounting entity with a self -balancing set of accounts in which cities record financial transactions relating to revenues, expenditures, assets and liabilities. Each fund type typically has a unique funding source and purpose. Establishing funds enables the City to account for the use of restricted revenue sources and carry on specific activities or pursue specific objectives. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 281 Glossary Fund Accounting - System used by non-profit organizations, particularly governments. Since there is no profit motive, accountability is measured instead of profitability. The main purpose is stewardship of financial resources received and expended in compliance with legal requirements. Fund Balance - Also known as the net financial position in a governmental fund, fund balance is the excess of current assets over current liabilities and represents the cumulative effect of revenues and other financing sources over expenditure and other financing uses. Fund Equity – represents the net financial position in a non-governmental fund. See Fund Balance definition above. GAAP (Generally Accepted Accounting Principles) - Uniform minimum standards for financial accounting and reporting. They govern the form and content of the basic financial statements of the City. Gann Appropriation Limit – This is the common name of Proposition 4, approved by voters on November 6, 1979, which mandated an appropriation limit on the amount of tax revenues that government jurisdictions may appropriate within a fiscal year. This bill was named after Paul Gann, who was a co-sponsor of the famous Proposition 13 initiative enacted by the voters of California on June 6, 1978, which resulted in a cap on property taxes in the state, and a prominent author and advocate of this subsequent spen ding limitation bill. Gas Fund Tax - The Gas Fund Tax is used to account for revenues and expenditures apportioned under the Streets and Highways Code of the State of California. Expenditures may be made for any street related purpose in the City’s system of streets. General Fund - In governmental accounting, this is the primary fund used to account for assets and liabilities of a non-profit entity, except for those items specifically assigned for other purposes in another more specialized fund. General Government – City Council, City Manager, City Clerk, City Attorney, Human Resources, Finance, Community Development, Public Works, Recreation, and Public Safety. General Liability Self Insurance Fund - The General Liability Self Insurance Fund is used to provide the City with liability and property insurance. Coverage is provided through participation in a joint powers agreement (PLAN JPA) that consists of 28 Bay Area Cities. General Obligation Bond – A municipal bond backed by the credit and "taxing power" of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. No assets are used as collateral. Government Finance Officers Association (GFOA) – GFOA is the professional association of state/provincial and local finance officers in the United States and Canada, and has served the public finance profession since 1906. Approximately 16,000 GFOA members are dedicated to the sound management of government financial resources. Governmental Funds – the fund used to account for all assets and liabilities of a government agency, except those particularly assigned for other purposes in another more specialized fund. There are five different types of governmental funds: the general fund (which is the primary operating fund), special revenue funds, debt service funds, capital project funds, and permanent funds. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 282 Glossary Grant - External contributions, and/or gifts of cash, or other assets typically from another governmental entity to be used or expended for a specific purpose, activity, or facility. An example is Community Development Block grant funding from the Federal Government. Infrastructure – The basic facilities, services, and installations needed for the functioning of a community or society, such as streets and roads, sidewalks, bridges, communications systems, water and power lines, and public institutions including schools, police stations, libraries, and post offices. Interest Income – The prudent investment of idle funds. The types of investments that can be made are limited by the Government Code to protect the safety of taxpayers' money. Intergovernmental Revenue – Revenue received from other governmental agencies and municipalities, such as grants from the State or Federal government. Internal Services Fund –The Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis. Inter-Fund Transfers – When the City moves money between its various funds, it makes an inter -fund transfer, referred to as transfers-in and transfers-out. In aggregate, transfers in and out offset each other for the fiscal year. Landscape and Lighting Fund – The City forms landscape and lighting zone funds within the City, via majority consent of the property owners, to manage the landscape, storm water, or lighting services for the property owners Levy – To impose taxes, special assessments or service charges for the support of governmental activities. The total amount of taxes, special assessments or service charges imposed by Santa Clara County levying property taxes. Licenses and Permits – Revenues earned by the issuance of licenses or permits levied in accordance with the benefits conferred by the license or permit. Limited Obligation Bond - A bond sold by a municipality to finance projects which are secured by the revenue generated by those projects. Line-Item Budget – A detail level budget that lists individual expenditures (staff time, paid -time-off, insurance, pension, office supplies, small tools, membership dues, water, electricity, janitorial services, etc.) Modified Accrual Basis – An accounting method used by governmental agencies that is in part accrual basis, and in part cash basis. Under modified accrual, revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures are recognized when the related fund liability is incurred – with exceptions for prepayments, accumulated employee leave and long-term debt. Governmental Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Motor Vehicle in Lieu Fee – A State fee charged for the privilege of operating a vehicle on public streets. A VLF is levied annually against the market value of a motor vehicle and is imposed by the State “in lieu” of local property taxes. Net Operations – Term used to define the positive or negative residual between sources (revenues, transfers-in) and uses (expenditures, transfers out, ) in an income statement type of schedule. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 283 Glossary Non-Departmental – This program has the sole purpose of accounting for all expenditures that the City cannot specifically designate to any operating department within the General Fund. Net Revenue – The balance after the expenditures are subtracted from the revenue. Objective - A statement of specific direction, purpose, or intent based on the needs of the community and the goals established for a specific program or service level. Ordinance - A formal legislative enactment by the City Council. It has the full force and effect of law within City boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal standing than a Resolution and is typically codified in a City's municipal code. Operating Budget - The operating budget is the primary means by which most of the financing of acquisition, spending and service delivery activities of a government are controlled. The use of annual operating budgets is required by law. Other Revenues - Revenues from sources other than those specifically identified that are too immaterial in amount to justify the creation of new revenue account line items. Performance Measure - Sets forth a performance objective and a goal for achieving the objective. Personnel Benefits - Those benefits paid by the City as conditions of employment. Personnel – In the context of this document, refers to City employees. Present Value - The amount that a future sum of money is worth today, given a specified rate of return. Proposition 218 - A statewide initiative passed by the voters of California on November 5, 1996 that provides California voters with the right to vote on new taxes. Program - As subdivisions of departments, programs are budgetary or organizational units of government with limited sets of work responsibilities within their respective departments. Programs also serve to increase budgetary accountability. Saratoga's budget is compiled on a program basis. Property Tax - Imposed on real property (land and permanently attached improvements). The tax is based upon the assessed value of such property. The tax rate may not exceed 1 percent of assessed value. Proprietary Funds – Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. Reserve - An account used to indicate that a portion of fund equity is legally restricted for a specific purpose. Resolution - A special order of the City Council which has a lower legal standing than an ordinance. Resources - Total amounts available for appropriation including estimated revenues, inter -fund transfers, and beginning fund balances. Revenue - Sources of income, which the City receives during a fiscal year. Examples of revenue include taxes, intergovernmental grants, service charges, fees, permits, rental and lease income, interest income, and other financing sources such as the proceeds derived from the sale of fixed assets. CITY OF SARATOGA, CALIFORNIA 2023-24 Adopted Budget 2023-08-11 FINAL 284 Glossary Sales Tax – The consumer goods tax that includes a designated 1 percent that is returned to the local agency by the State Board of Equalization on a monthly direct deposit basis. Special Assessment Bonds - Bonds payable from the proceeds of special assessment. Special Revenue Fund - In governmental accounting, fund used to account for the proceeds of special revenue sources (other than special assessments, expandable trusts, or for major capital projects) that are legally restricted to expenditure for a specified purpose. Service Charge - Charges for specific services rendered. Services and Supplies - Expenditures for services and supplies which are directly related to a department's primary service activities. SLFRF (State and Local Fiscal Recovery Funds) Provision of the American Rescue Plan Act (ARPA) to provide funding to state, local, and Tribal governments with the resources needed to respond to the pandemic and its economic effects. Saratoga received $7.2 million in funding and allocated the funds to the capital improvement program for needed regional clean water infrastructure improvements in 2021 -22. Summary Budget – A budget that provides a tabular listing of revenues by source and expenditures by fund and by department within each fund for the budget year. Supplies - An expenditure classification for articles and commodities purchased for consumption or resale. Tax Equity Allocation (TEA) – State of California property tax law requires the auditor of each county with qualifying cities to make property tax revenue allocations as defined in Section 98 of the Revenue and Taxation Code. TEA typically refers to the minimum 7 percent allocation established by legislation in Proposition 13 clean-up bills. Taxes - Compulsory charges levied by the City, County and State for the purpose of financing services performed for the common benefit. Transient Occupancy Tax - Imposed on hotels, motels, inns or other lodging facilities. The rate in Saratoga is 10 percent. Transfers In/Out – Money transferred from one City fund to another. Differs from revenue and expense in that it is a reallocation from one category to another, such as General Fund money that is transferred for use in the Capital Improvement program is neither an expense of the General Fund, nor a revenue of a Capital Project Fund. VLF – See MVLF. Working Capital – The difference between current assets and current liabilities in Enterprise Funds (versus Net Operations in Governmental Funds). Measures the relatively liquid portion of total Enterprise Fund capital.