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C I T Y OF S ARA T O G A
C A L I F O R N I A
R an k e d # 1 Saf e s t Cit y in C a l i f o r ni a
FISCAL YEAR 2014/15
C OMPREHENSIVE
A NNUAL
F INANCIAL
R EPORT
Saratoga, California
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2015
City Council
Howard Miller ............................................................................................................. Mayor
Manny Capello ................................................................................................... Vice Mayor
Emily Lo .................................................................................................... Council Member
Mary-Lynne Bernald .................................................................................. Council Member
Rishi Kumar ............................................................................................... Council Member
Presented under the direction of:
James Lindsay, City Manager
Finance & Administrative Services Department
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CITY OF SARATOGA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2015
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TABLE OF C ONTENTS
I NTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................... 9
GFOA Certificate of Achievement for Excel lence in Financial Reporting ......................... 15
Pri ncipal Officers of the City .......................................................................................... 16
Organization Chart ......................................................................................................... 17
F INANCIAL S ECTION
Independent Au ditor s ’ Report ........................................................................................... 21
Management’s Discussion and Analysis (Required Supplementary Information) ............. 23
Basic Financial Statements:
Government -Wide Financial Statements
Statement of Net Position .......................................................................................... 40
Statement of Acti vities and Changes in Net Position .................................................. 41
Fund Financial Statements
Governmental Funds:
Balance Sheet ........................................................................................................... 42
Reconciliation of the Government Funds Balance Sheet
to the Government -Wide Financial Statement of Net Position ............................... 43
Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 44
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Government -Wide
Statement of Activities and Changes in Net Position ............................................. 45
Proprietary Funds:
Statement of Net Position .......................................................................................... 46
Statement of Revenues, Expenses, a nd Changes in Fund Net Position ......................... 47
Statement of Cash Flows ........................................................................................... 48
Basic Financial Statement Notes:
Notes to the Basic Financial Statements ..................................................................... 50
Required Supplementary Information
Budgetary Information .............................................................................................. 82
Modified Approach for City Streets Infrastructure Capital Assets ............................... 84
Pension Information .................................................................................................. 86
CITY OF SARATOGA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2015
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TABLE OF C ONTENTS C ONTINUED
S UPPLEMENTARY I NFORMATION :
Non -Major Governmental Funds
Combining Balance Sheets ....................................................................................... 90
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........ 91
Schedule of Revenues, Exp and Changes in Fun d Balances – Budget and Actual:
Capital Improvements .......................................................................................... 92
Lighting & Landscape Assessment Districts Special Revenue Funds ..................... 93
Library Bond Debt Service Fund .......................................................................... 94
Internal Service Funds
Combining Statement of Net Position ........................................................................ 96
Combining Statement of Revenues, Expense s, and Change in Fund Balance ............... 98
Comb ining Statement of Cash Flows ....................................................................... 100
Capital Assets Used in the Operation of Governmental Funds
Comparative Schedule by Source ............................................................................. 105
Schedule by Function and Activity .......................................................................... 106
Sched ule of Changes by Function and Activity ........................................................ 108
Statistical Section (Unaudited)
Net Position by Component ..................................................................................... 112
Changes in Net Position .......................................................................................... 114
Fund Balance of Governmental Funds ...................................................................... 116
Governmental Activities Tax Revenues by Source ................................................... 1 18
Changes in Fund Balances of Governmental Funds .................................................. 1 20
Property Tax Rates - Direct and Overlapping Government s ...................................... 1 22
Assessed Value of Taxable Property ........................................................................ 1 24
Principal Property Taxpayers ................................................................................... 1 26
Property Tax Levies and Collections ........................................................................ 1 27
Ratio s of Outstanding Debt by Type ........................................................................ 128
Ratios of Ge n eral Bonded Debt Outstanding ............................................................ 130
Legal Debt Margin Information ............................................................................... 1 32
Direct and Overlapping Governmental Activities Debt ............................................. 1 34
Demographic and Economic Statistics ..................................................................... 1 35
Principal Employers ............................................................................................... 1 36
Full -Time Equivalent City Government Employees by Function ............................... 1 38
Operating Indicators by Function ............................................................................. 1 40
Capital Asset Statistics by Function ......................................................................... 1 42
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INTRODUCTORY SECTION
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C ITY OF S ARATOGA
C ITY H ALL
13777 F RUITVALE A VENUE
S ARATOGA , C ALIFORNIA 95070
(408) 868 -1200
November 18, 2015
Honorable Mayor, City Council, and Citizens of the City of Saratoga, California
The Comprehensive Annual Financial Report (CAFR) of the City of Saratoga for the year ended June 30,
2015 is hereby submitted in accordance with mandated statutes. These statutes require the City of Saratoga to
annually issue a report on its financial position and activity, and that an independent firm of certified public
accountants audits this report. This annual report was prepared in accordance with accounting principles
generally accepted in the United States of America. City Management is responsible for both the accuracy of
the data and the completeness and fairness of the presentation, including all disclosures.
To provide a reasonable basis for making these representations, the City has established internal controls to
provide reasonable rather than absolute assurance that the financial statements will be free of material
misstatement. To the best of our knowledge and belief, the enclosed data is accurate in all material respects
and is reported in a manner designed to present fairly the financial position and results of operations of the
various funds of the City. Information contained in this report is intended to present the reader with a
comprehensive view of the City’s financial position and the results of its operations for the fiscal year ending
June 30, 2015, along with additional disclosures and financial information designed to enable the reader to
gain an understanding of the City’s financial activities.
The report was prepared as prescribed in Governmental Accounting Standards Boa rd (GASB) Statement
No. 34, Basic Financial Statements and Management’s Discussions and Analysis for State and Local
Governments. To facilitate the general public’s understanding and usefulness of the City of Saratoga’s
financial statements, GASB Statement 34 requires that management provide a narrative introduction,
overview, and analysis to accompany the basic financial statements in the form of Management’s
Discussion and Analysis (MD&A). This formal letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it.
Unaudited sections of this document are presented to supplement the basic financial statements. While not
audited, the supplemental information is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for operational, economic and historical context.
THE REPORTING ENTITY AND ITS SERVICES
The City of Saratoga (City), incorporated in 1956, is located 40 miles south of San Francisco in the Santa
Clara Valley. The City currently covers a land area of approximately 12 square miles and contained a
population of 30,779 at January 1, 2015, as reported by the Department of Finance. The City is a general law
city of the State of California and operates under a council-manager form of government. Policymaking and
legislative authority are vested in the City Council, which consists of a Mayor, Vice Mayor and three
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additional council members. City Council members are elected at-large for staggered four-year terms. The
Mayor is selected annually by the City Council. The City Council is responsible for, among other things,
passing ordinances, adopting the budget, appointing members to the City’s seven advisory commissions and
hiring the City Manager and City Attorney. The City Manager is responsible for implementing the policies
and ordinances of the City Council, overseeing the daily operations of the City, and recommending
appointments of the City's department directors to the City Council.
The City provides a limited range of services including public safety, development regulation, public works,
community and recreation activities and events, and general administrative functions. As a minimal service
city, activities are supplemented through numerous contracts with others. Contracted services include, but
are not limited to, public safety, infrastructure maintenance, engineering services, legal services and
recreation activities. The City is also committed to citizen participation in the evaluation, expansion and
enhancement of services.
Saratoga residents who wish to assist the City Council in forming government policy may do so by serving
on an advisory commission. The commissions act in an advisory capacity to the City Council, and are
comprised of the Heritage Preservation Commission, Library Commission, Parks and Recreation
Commission, Planning Commission, Public Safety Commission, and Youth Commission.
The financial reporting entity (the City) includes all the fund activity of the primary government, as well as
all of its component units. Component units are legally separated entities for which the City is fully
accountable. The City’s Saratoga Public Financing Authority (PFA) component unit which provided
financial oversight of local bond obligations was finalized in fiscal year 2005/06. The Authority’s final
financial report was issued for fiscal year 2006/07. Blended component units, although legally separate
entities, are in substance, part of the City’s operations and data from these units are combined with data of the
City. Accordingly, the operations of the Landscaping and Lighting Assessment Districts are reported in the
City’s financial statements.
ECONOMIC CONDITIONS AND OUTLOOK
Within close proximity to many businesses associated with the high technology industry, Saratoga is viewed
as a desirable place to live and serves primarily as a residential community to the Silicon Valley. There is
limited commercial or industrial activity within city boundaries.
Due to its highly rated schools and beautiful neighborhoods nestled within the foothills at the edge of the
valley, Saratoga has grown into an affluent residential city and in general is fiscally protected by the
stability of its’ tax and development fee revenues. As is typical for California cities, the City of
Saratoga’s largest funding sources are property tax, franchise fees, sales tax, and development fees and
permits. It should be noted however, that while development fees are a significant funding source;
expenses related to the intake of this fee-based revenue more than offsets the revenue received.
Property Tax
Effective with the 2006/07 fiscal year, the City began receiving a significant increase in property tax
revenues due to the passage of Assembly Bill 117. This legislation increased the property tax percentage
allocated to the City under the Tax Equity Allocation (TEA) formula.
Allocation inequality originally arose from the passage of Proposition 13 in 1978, which froze property
taxes at their current level for all cities across the State. This action created significant problems for cities
with low property tax rates. Subsequently, Section 98 of the California Revenue and Taxation Code was
passed establishing a minimum tax equity allocation of 7% of the 1.0% ad valorem tax to those cities
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below the average rate as a condition for Counties to receive trial court funding. Impacts to ERAF
created by the shift were backfilled by the State. Because Santa Clara County determined it would
receive less from trial court funding than from the additional tax moneys flowing to the four low tax cities
(Saratoga, Cupertino, Los Altos Hills, and Monte Sereno), additional legislation was enacted which
limited the four low property tax cities in Santa Clara County to just 55% of the 7% minimum allocation.
In 2006, Assembly Bill 117 repealed the 55% limit, however the four cities were required to continue to
remit the County’s ERAF rate on these funds so that the bill would have no effect on the State Budget,
and therefore avoid the Appropriations Committee. Unfortunately, the ERAF rate the County remits to
the State is much higher at 47.7% than the four city’s ERAF rates ranging from 7.53% to 17.37 %.)
Although made partially whole, these four cities continue to be treated differently than the State’s other
TEA cities. For Saratoga, the 2006 legislative adjustments increased revenues from 3.85% to 5.46% of
the 1.0% property tax paid by residents; however it remains below the minimum 7.0%. Due to this
difference in treatment, efforts to bring the four cities up to the full tax rate continue.
Franchise Fees
Franchise Fees are assessments on a number of utility services, including gas, electricity, water, cable, and
solid waste. These assessments are integrated into the utility agreements, to be collected and remitted by the
service companies. The assessments are determined by easement formulas or a percentage of service costs
and are a pass-through fee on their billings. With most of these services considered necessities in an urban
setting, there is little fluctuation in most of the revenues stream. Cable revenue has increased due to growth
in the use of enhanced cable services. And, over the last several years, solid waste franchise fee revenue has
increased with the rise in service charges. Both of these fees are expected to remain fairly flat in the future.
Sales Tax
With Saratoga primarily a residential community with limited retail sources, Sales Tax is small in comparison
to other cities of similar size. In an average year, the City receives approximately $1 million in Sales Tax,
which is derived primarily from restaurants, grocery and drug stores, and gas stations. These revenue
categories have remained fairly consistent over time as they provide a good balance to meet local needs.
Revenue is not expected to grow significantly in the future as spending habits are migrating to online
purchases, nor is it expected to decrease significantly as the Sales Tax comes from basic services and goods
the community requires.
Development Fees
Development Fees revenue is derived from services related to planning reviews, planning applications,
building plan reviews, engineering reviews, building inspections, and all permits, fees and costs associated
with performing these activities. These services are regulatory to ensure compliance with all applicable laws,
and to ensure health and safety of the community. Although the entire community benefits from an enforced
regulatory program, the service requestor initiates the development change and benefits the most from it, and
therefore should pay most if not all of the costs. While in the past, the financial strength of the Saratoga
community has insulated this revenue source from minor economic fluctuations, the last few years have
proven that development activity does correlate with the stronger economic highs and lows.
Fiscal Outlook
For Saratoga, these main funding sources continue to be stable and reliable. The City’s property and sales tax
performances have weathered the storm of the “Great Recession” caused by the economic downturn of 2008.
Over the past four fiscal years, California continues to experience a recovery that is being led by the Silicon
Valley’s strong housing and labor markets.
General Fund Property Tax revenues increased more than 9% in FY 2014/15 as the region’s assessed value of
properties continues to exceed expectations. While Property Tax revenues continue to grow, there are signs
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that the housing market has tempered its pace, prompting conservative Property Tax revenue projections of
3% for the following budget year and into the near future.
Franchise Fee revenue remained stable throughout the recession due to the nature of the revenue. With no
expectation for growth, minimal revenue increases are projected each year, in line with service fee increases.
FY 2014/15 Sales Tax revenue increased over the prior year, partly due to timing differences in accruals, and
corrections in allocations from the State. It is clear, however, that the overall strength of the economy
remained strong in the region. While encouraging, minimal actual growth is expected in future years as the
City’s land use structure consists primarily of built-out residential neighborhoods and a small number of
commercial developments, thereby limiting large Sales Tax revenue generating sources.
Development Fees have stabilized over the past three fiscal years as a result of increasing housing prices.
Revenues have returned to pre-recession levels; in FY 2014/15 revenues maintained the healthy resurgence in
construction activity in alignment with other strengthening revenues. A small portion of development fees are
now being directed to fund long term planning services.
California’s overall economy is improving, with Saratoga and the rest of the San Francisco Bay Area cities at
the forefront of this swell. Even the State’s finances appear to have stabilized. However, ongoing reduced
funding levels continue to have cities concerned that any unprotected State or County-based funding is still at
risk, even with Proposition 1A protecting cities from unrestrained State takeaways. With this continuing
fiscal uncertainty and with the anticipation of ever-increasing operating and capital improvement costs,
Saratoga plans to continue operations at basic service levels in preparation for funding impacts as the new
normal of government emerges. The Capital Improvement Program, primarily infrastructure, continues to be
funded through dedicated funding sources, grant money, and residual funding from prior year operations.
FINANCIAL INFORMATION AND MAJOR INITIATIVES
Financial Controls
Management of the City is responsible for establishing and maintaining an internal control structure designed
to ensure that the assets of the City are protected from loss, theft or misuse, and to ensure that adequate
accounting data is compiled to allow for the preparation of financial statements in conformity with generally
accepted accounting principles. The internal control structure is designed to provide reasonable, but not
absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1)
the cost of a control should not exceed benefits likely to be derived, and (2) the valuation of costs and benefits
requires estimates and judgments by management.
As a recipient of federal, state and local financial assistance, the City is also responsible for guaranteeing that
an adequate internal control structure is in place to ensure and document compliance with applicable laws and
regulations related to these programs. This internal control structure is subject to periodic evaluation by the
City’s management.
For Cash Management, the City practices a passive approach to investments and maintains flexibility by
managing a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with
maturities planned to coincide with cash needs. Idle cash is invested in certain eligible securities as
constrained by law and further limited by the City’s investment policy. The goals of the City’s investment
policy are safety, liquidity and yield. Cash management is tracked by fund and reconciled monthly.
In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget approved by the City Council.
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Activities of the general fund, special revenue funds, capital projects funds and debt service funds are
included in the annual appropriation.
The level of budgetary control (i.e., the level at which expenditures cannot exceed the appropriated amount)
is at the fund level. The City also maintains an encumbrance accounting system as another method of
maintaining budgetary control. Encumbered amounts lapse at year-end with the exception of the Capital
Improvements Projects, which are multiple-year projects. On occasion, outstanding encumbrances of a
material nature are reviewed by the responsible department at year end, and if deemed critical, a
recommendation is made to the City Council to take action by Resolution to re-appropriate these funds into
the following year’s budget.
Major Initiatives
The fiscal year 2014/15 Budget was developed with a focus on reinstatement of services and stabilizing
workloads. It addressed cost increases for employee pensions and public safety services. These cost
increases resulted from corrective actions taken by CalPERS and the addition of a traffic enforcement officer.
Council also increased funding for the community grants program in order to maintain the importance of a
sense of community and civic pride.
In October 2014, the City received its most recent actuarial valuation from CalPERS. The report highlighted
the changes to assumptions and methodologies that CalPERS adopted in order to address the slow recovery
to an acceptable funded status as a result of the losses experienced during the recession. The report also
identified an Unfunded Accrued Liability of approximately $6.9 million as of June 30, 2014. Council took
quick action in order to address this liability. With the use of reserves and additional revenues received, the
City was able to apply approximately $3.3 million towards this liability. The long-term interest savings is
anticipated to be $3.6 million over the amortization period of 22 years.
The FY 2014/15 Capital Projects Budget included funding for 17 new projects. Some of the projects funded
include residential street reconstruction, turf reduction at city parks to reduce irrigation usage, replacement of
an aging play structure at the Civic Center pre-school, and implementation of the Quarry Park Master Plan.
The Quarry Park Master Plan was approved in fiscal year 2013/14. The Master Plan includes the addition of
hiking trails, picnic areas, recreational facilities and amenities to the Quarry property that the City acquired in
2011. The first phase of this plan is anticipated to be completed in the fall of 2015.
INDEPENDENT AUDIT
The City engaged Chavan & Associates, LLP to express an opinion on the financial statements based on
their audit. The audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation. Generally accepted
auditing standards set forth in the General Accounting Office’s Government Auditing Standards were used by
the auditors in conducting the engagement. The City’s Annual Financial Report received an unmodified
(clean) opinion from the auditors. The independent auditors’ report is presented as the first component of
the financial section of this report.
In addition to meeting the requirements set forth in statutes, the audit was also designed to meet the
requirements of the federal Single Audit Act of 1984, as amended, and the related U.S. Office of
Management and Budget’s Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. The City’s federal financial assistance program also received an unqualified (clean)
opinion from the auditors.
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Awards
The Government Finance Officers Association (GFOA) of the United States and Canada awarded a
Certificate of Achievement to the City for its Excellence in Financial Reporting on the CAFR for the fiscal
year ended June 30, 2014. In order to be awarded a Certificate of Achievement, the City published an easily
readable and efficiently organized financial report. This report satisfied both generally accepted accounting
principles and applicable legal requirements.
The Certificate of Achievement is valid for a period of one year. We believe our current CAFR continues to
meet the Certificate of Achievement program’s requirements, and plan on submitting it to the GFOA to
determine its eligibility for another certificate.
ACKNOWLEDGEMENTS
This CAFR represents the culmination of numerous hours of hard work expended by many individuals in the
Finance & Administrative Services Department. In particular, we would like to express our appreciation to
Anthony McFarlane, Finance Manager for his preparation of this annual financial report, and to our
supporting staff members: Ann Xu, Accountant; Julie Ingraham, Karen Caselli, and Gina Scott, Accounting
Technicians for their assistance with the audit and exemplary services throughout the year. Furthermore, we
would like to thank Chavan & Associates, LLP Certified Public Accountants for their helpful assistance in
the preparation of this report. Finally, we would like to give credit to the City Council for their ongoing
interest and support in planning, conducting and advising on the operations of the City in a responsible and
representative manner.
Respectfully submitted,
James Lindsay Mary Furey
City Manager Finance and Administrative Services Director
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Government Finance Officers Association
Certificate of
Achievem ent
for Excellence in
Financial
Reporting
Presented to
City of Saratoga California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2014
Executive Director/CEO
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CITY OF SARATOGA
ELECTED OFFICIALS AND
ADMINISTRATIVE PERSONNEL
As of June 30, 2015
CITY COUNCIL
Howard Miller - Mayor
Manny Capello – Vice Mayor
Emily Lo
Mary-Lynne Bernald
Rishi Kumar
CITY STAFF
James Lindsay – City Manager
Crystal Bothelio – City Clerk
Mary Furey – Administrative Services Director
Erwin Ordonez – Community Development Director
John Cherbone – Public Works Director
Michael Taylor – Recreation & Facilities Director
CITY ATTORNEY
Richard S. Taylor – Shute, Mihaly & Weinberger
INDEPENDENT AUDITORS
Chavan & Associates, LLP Certified Public Accountants
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FY 2014/15
City of Saratoga - Organization Chart
City AttorneyCity Manager
Community Development
Department
Community Development
Director
Facilities Division
1 Facility Maint.Manager
1 Facility Maint. Leadworker
2 Facility Maint. Workers
.60 Facility Coordinator
Planning Division
1 Senior Planner
2 Planners
1 Arborist
1 Office Specialist
Engineering Division
1 Sr. Civil Engineer
1 Engineer
.90 Administrative Analyst
.75 Office Specialist
Parks Division
1 Manager -Parks
1 Park Maint. Leadworker
6 Park Maint. Workers
.50 Office Specialist
Finance Services Division
1 Finance Manager
.90 Accountant
3 Accounting Technicians
Information Technology
Division
1 IT Analyst
1 IT Technician
Finance & Administrative
Services Department
Finance & Administrative
Services Director
Recreation & Facilities
Department
Recreation & Facilities
Director
Public Works
Department
Public Works Director
Recreation Services Division
.90 Recreation Supervisor
2 Recreation Coordinators
1 Office Specialist
Streets and Fleet Division
1 Manager -Streets and Fleet
2 Street Maint. Leadworker
4 Street Maint. Workers
.50 Office Specialist
Building Division
1 Sr. Building Inspector
2 Building Inspectors
1 Plan Check Engineer
1 Permit Technician
1 Office Specialist
Citizen Advisory Commissions
& Committees
Citizens of Saratoga
Elected City Council
Human Resources Division
1 HR Manager
.75 HR Technician
City Manager's Office
1 Administrative Analyst
.50 Executive Assistant
Office of the City Clerk
1 City Clerk
.50 Deputy City Clerk
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FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the
City Council of the City of Saratoga
Saratoga, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of the City of Saratoga (the “City"), as of and for the year
ended June 30, 2015, and the related notes to the financial statements, which collectively comprise City’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America, the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the City of Saratoga, as of June 30, 2015, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and other required supplementary information, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s financial statements as a whole. The introductory section, combining individual non-
major fund statements and schedules, and statistical section, as listed in the table of contents, are presented
for purposes of additional analysis and are not a required part of the financial statements. The combining
individual non-major fund statements and schedules have been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole. The introductory and statistical sections have not
been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
New Accounting Principles
As discussed in Notes 1 and 7 to the financial statements, the City adopted the provisions of GASB
Statement No. 68, Accounting and Financial Reporting for Pensions, effective June 30, 2015 and GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an
amendment of GASB Statement No. 68.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 4,
2015 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
September 4, 2015
San Jose, California
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
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INTRODUCTION
The Management’s Discussion and Analysis (MD&A) is a required section of the City’s Comprehensive
Annual Financial Report (CAFR), as shown in the overview below. The purpose of the MD&A is to
present discussion and analysis of the City’s financial performance during the fiscal year that ended on
June 30, 2015. This report will (1) focus on significant financial issues, (2) provide an overview of the
City’s financial activity, (3) identify changes in the City’s financial position, (4) identify any individual
fund issues or concerns, and (5) provide descriptions of significant asset and debt activity.
This information, presented in conjunction with the annual Transmittal Letter and Basic Financial
Statements is intended to provide a comprehensive understanding of the City’s operations and financial
standing.
Required Components of the Annual Financial Report
FISCAL YEAR 2014/15 FINANCIAL HIGHLIGHTS
Total net position decreased by $8.3 million last fiscal year.
The City's assets plus deferred outflow of resources exceed its liabilities plus deferred inflow of
resources by almost $ 120.9 million; with total assets plus deferred outflow of resources of
$144 million and liabilities plus deferred inflow of resources of $ 23.4 million.
Net Position is comprised of $112.1 million for investment in capital assets, net of depreciation
and related debt; $2.1 million restricted for specific purposes; and $6.7 million in unrestricted
Net Position (reference pg. #40).
Total City-wide revenues of $23.2 million consist of $16.2 million in general revenue and $7.0
million in program revenue (reference pg. #41).
City expenses total $22.6 million (reference pg. #41).
The Governmental Fund’s fund balances total $15.4 million, with $9.8 million in the General
Fund, $3.9 million in the Capital Improvement Funds, and $1.8 million in the Other
Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
24
Governmental Funds. This represents a decrease of $1.15 million from last year (reference pg.
#42).
General Fund revenues total $19.5 million, while General Fund expenditures total $19.9 million
(reference pg. #43).
THE BASIC FINANCIAL STATEMENTS
The Basic Financial Statements are comprised of 1) Government-Wide (City-wide) Financial Statements,
and; 2) Fund Financial Statements. These two sets of financial statements provide the reader two different
perspectives of the City's financial activities and financial position.
Government-Wide Financial Statements provide a longer-term view of the City's activities as a whole, and
are comprised of the Statement of Net Position and the Statement of Activities. The Statement of Net Position
provides summary level information about the financial position of the City, including all its capital assets
and long-term liabilities on a full accrual basis, similar to that used by corporations. The Statement of
Activities provides summary level information about the City's revenues and expenses, also on a full accrual
basis, with the emphasis on measuring net revenues and/or expenses for each of the City's programs. The
Statement of Activities illustrates the change in Net Position for the fiscal year.
City financial activities are required to be grouped as either government activities or business-type activities.
The amount in the Statement of Net Position and the Statement of Activities are required to be separated into
governmental activities or business-type activities in order to distinguish between the two types of activities.
In the case of the City of Saratoga, there are no business-type activities as of June 30, 2015.
Fund Financial Statements report the City's operations in more detail than Government-Wide statements and
focus primarily on the short-term activities of the City's general fund and other major funds. The Fund
Financial Statements measure current revenues and expenditures and fund balances; they exclude capital
assets, long-term debt, and other long-term amounts.
Major funds account for the major financial activities of the City and are presented individually, while the
activities of non-major funds are presented in summary, with subordinate schedules presenting the detail for
each of these other funds in the Supplementary Information section. Major funds are explained below.
The Government-Wide Financial Statements
Government-Wide financial statements are prepared on the accrual basis, which means they measure the flow
of all economic resources of the City as a whole. The Statement of Net Position and the Statement of
Activities present information about the following:
Governmental Activities - All of the City's basic services are considered to be governmental activities,
including general government, community development, public safety, transportation, and, culture and
leisure. These services are supported by general City revenues such as taxes, and by specific program
revenues such as development and recreation program fees.
Business-Type Activities - This category includes enterprise activities such as water, sewer, and utilities.
Unlike governmental services, these activities are meant to be fully supported by charges paid by users, based
on the services used. The City of Saratoga does not have any business-type activities at this time.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
25
Fund Financial Statements
A fund represents a grouping of related accounts and is used to maintain control over resources that are
segregated for specific activities or objectives. The City, like other local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements.
Fund financial statements provide detailed information about each of the City's most significant funds, called
major funds. The concept of major funds, and the determination of which funds are classified as major funds,
was established by GASB Statement 34 and replaces the concept of combining like funds and presenting
them in total. Instead, each major fund is presented individually, with all non-major funds summarized and
presented in a single column. Subordinate schedules present the detail of these non-major funds. Major
funds present the major activities of the City for the fiscal year, and may change from year to year as a result
of changes in the pattern of the City's activities. The City's funds are segregated into three types:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds - The City's basic services are reported in governmental funds, which focus on how
money flows into and out of those funds and the balances available at year-end. Financial statements are
prepared on the modified accrual basis, which means they measure only current financial resources and uses.
Carrying amounts for capital assets and other long-lived assets, along with long-term liabilities are not
presented on the balance sheet in the governmental fund financial statements. Unlike the Government-Wide
financial statements, Governmental Fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating the City's near-term financing requirements.
Proprietary Funds – Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City’s various functions. The City uses internal service funds to account for liability
insurance and risk management, workers compensation, office equipment support services, information
technology services, vehicle and building maintenance, and vehicle and information technology
equipment replacement. Because internal service funds primarily benefit governmental functions, they
have been included with the governmental activities in the Government-Wide financial statements.
Fiduciary Funds – These funds account for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, other governmental units, and/or other funds. Fiduciary funds are not
reflected in the government-wide financial statements because these resources are not available to support
the City's programs. Currently the City does not have any fiduciary funds.
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements. The notes can be found
immediately following the fund financial statements.
REQUIRED SUPPLEMENTARY INFORMATION
Required supplementary information, other than presented in this MD&A, follows the Notes Section and
includes a budgetary comparison for the General Fund as presented in the Governmental Fund financial
statements, and information on the modified approach for city streets and infrastructure.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
26
SUPPLEMENTARY INFORMATION
Combining and individual fund statements and schedules are included to provide additional information
on non-major governmental funds including special revenue, debt service, and capital project funds, as
well as proprietary internal service fund information and uses of capital assets. An un-audited statistical
section provides historical and current data on financial trends, revenue and debt capacity, demographic
and economic information, and operating information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position may serve over time as an indicator of the City's financial position. The City's Total Net
Position decreased $8,334,786 from $129,256,133 in fiscal year 2013/14 to $120,921,347 in fiscal year
2014/15. The primary reason for this decrease in net position is due to the implementation of GASB
Statement No. 68. The prior period adjustment related to Net Pension Liability reduced beginning Net
Position by approximately $8.9 million.
The most significant portion of the City's Net Position ($112,092,371 or 92.7%) accounts for its investment in
capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.) less any related debt
used to acquire those assets that are still outstanding. These capital assets represent infrastructure which
provides services to the citizens, consequently, these assets are not available for future spending.
$2,137,424 or 1.8% of the City's Net Position is subject to external restrictions on how the funding may be
used. Within the restricted Net Position total, $867,642 is for lighting and landscaping assessment districts,
$363,182 is for environmental programs, and $906,600 is for repayment of long-term debt.
The remaining $6,691,522 or 5.5% of the City's Net Position are unrestricted and may be used to meet the
City's ongoing obligations to citizens and creditors.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
27
Governmental Activities
2015 2014
Assets
Current assets 20,597,864$ 20,853,961$
Capital assets 123,024,541 123,171,255
Total Assets 143,622,405 144,025,216
Deferred Outflow of Resources
Deferred Outflow 703,379 -
Total Deferred Outflow of Resources 703,379 -
Liabilities
Current liabilities 4,078,118 3,633,555
Long-term debt 17,575,706 11,135,528
Total Liabilities 21,653,824 14,769,083
Deferred Inflow of Resources
Deferred Inflow 1,750,613 -
Total Deferred Inflow of Resources 1,750,613 -
Net Position
Net investment in capital assets 112,092,371 112,116,255
Restricted for environmental services 363,182 413,182
Restricted for special assessment funds 867,642 733,832
Restricted for debt service 906,600 897,786
Unrestricted 6,691,552 15,095,078
Total Net Position 120,921,347$ 129,256,133$
Net Position
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
28
As shown in the above Statement of Changes in Net Position schedule, program revenues decreased by
$293,407 from the prior fiscal year for governmental activities. General revenues increased by $1,358,690
from the prior year. This resulted in a total increase in revenues of $1,065,283. Expenses increased by
$2,073,334 from the prior year.
With total program and general revenues for fiscal year 2014/15 at $23,197,124 and total expenses at
$22,630,394, the net activity resulted in an increase in Net Position of $566,730. However, due to the
implementation of GASB 68, a prior period adjustment of $8,901,517 decreased the beginning balance of
net position from $129,256,133 to $120,354,616.
An analysis and graphical representation of the changes in revenues and expenditures by type of
significant events follows:
Governmental Activities Increase
Functions/Programs 2015 2014 (Decrease)
Program Revenues
Charges for services 6,135,177$ 6,396,864$ (261,687)$
Operating grants and contributions 107,062 116,667 (9,605)
Capital grants and contributions 785,366 807,481 (22,115)
Total Program Revenues 7,027,605 7,321,012 (293,407)
General Revenues
Property taxes 10,669,281 9,737,145 932,136
Sales taxes 1,224,427 941,350 283,077
Local taxes 866,272 822,272 44,000
Franchise taxes 2,069,479 1,948,642 120,837
Motor vehicle in-lieu 13,113 13,575 (462)
Intergovernmental revenues 1,022,838 980,938 41,900
Investment earnings 67,121 61,895 5,226
Other revenues 236,988 305,012 (68,024)
Total General Revenues 16,169,519 14,810,829 1,358,690
Expenses
General and intergovernmental services 7,566,201 4,521,784 3,044,417
Public safety 4,850,289 4,491,384 358,905
Public works 6,272,570 7,378,436 (1,105,866)
Community services 1,588,840 1,586,353 2,487
Community development services 1,961,660 2,178,634 (216,974)
Interest on long-term debt (unallocated)390,834 400,469 (9,635)
Total Expenses 22,630,394 20,557,060 2,073,334$
Increase / (Decrease) in Net Position 566,730 1,574,781 (1,008,051)
Net Position, Beginning of Year 129,256,133 127,681,352 1,574,781
Prior Period Adjustment - GASB 68 (8,901,517) - -
Net Poistion, Beginning of Year, As Adjsuted 120,354,616 127,681,352 1,574,781
Net Position, End of Year 120,921,347$ 129,256,133$ (8,334,786)$
Statement of Changes in Net Position
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
29
Revenues
Increases from Property Tax, Sales Tax and Franchise Taxes were offset by decreases in Charges for
Services and Grants during FY 2014/15, resulting in a net increase of $1,065,283 in total general and
program revenues.
CHART OF REVENUE INCREASE OR (DECREASE)
Increase in Revenues
General Revenues increased $1,358,690 from the prior year. The most significant changes include:
A $932,136 increase in Property Tax Revenue due to higher assessed valuations of property within
the City.
A $283,077 increase in Sales tax due timing differences in accruals and allocation adjustments
received from the State Board of Equalization in the City’s favor.
A $120,837 increase in Franchise taxes primarily due to an in increase in payments received from
Water, $26,063, and Solid Waste, $93,475, franchises.
Program Revenues decreased overall:
Charges for services decreased $261,687 due to a decrease in park development fees of $310,831.
Operating and Capital Grants & Contributions decreased in aggregate $31,720.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
30
Expenses
The FY 2014/15 net change in expenses for Governmental Activities was a n increase of $2,073,334.
Increases in General and Intergovernmental Services and Public Safety were offset by decreases in Public
Works, and Community Development Services as illustrated in the chart below.
CHART OF EXPENSE INCREASE OR (DECREASE)
Increases in Expenses
Significant increases in expenses from the prior year occurred in several categories:
General and Intergovernmental Service increased by $3,044,417 due to the payment to CalPERS
towards the Unfunded Accrued Liability, as related to pensions, in the amount of $3,294,619.
Public Safety increased by $358,905 as a result of additional costs for Sheriff, ($386,000), and
Animal Control, ($4,000), contract services.
Decreases in Expenses
Notable decreases in expenses from the prior year occurred in two categories:
Public Works decreased in total by $1,105,866. This decrease is primarily due to the reclassification
of expenses related to capital projects from expenses to capital assets. The amount of expenses
reclassified to capital assets increased $1,019,233 from the prior year as several CIP projects were
either completed or Construction in Progress spending increased during the fiscal year.
Community Development Services decreased $216,974 due to staffing vacancies of $99,837, a GASB
68 adjustment reducing pension expense by $72,718 and other personnel costs being reduced by
$52,302.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
31
MAJOR AND OTHER GOVERNMENTAL FUNDS: CHANGE IN FUND BALANCE
A summary of the changes in fund balance of the Major Funds and Other Governmental Funds is
presented below:
Included in the Major Funds are the General Fund and the Capital Improvement Funds. The Other
Governmental Funds include twenty-seven Lighting and Landscape Assessment Districts (accounted for
as one fund in the financials) and the Library Bond Debt Service Fund. The total net change from fiscal
year transactions, including Major Funds and Other Governmental Funds, was a decrease of $1,153,808.
General Fund
As shown in the preceding Major Funds table, the net change in the General Fund's ending fund balance
is a decrease of $2,028,903. A Net Loss is a result of the net operating expenses exceeding net operating
revenues.
A number of the General Fund revenue categories increased from the prior year for a net revenue gain of
$1,251,178, most notably property tax revenue. General Fund revenues budgets are conservatively based
upon prior year experience and revenue specific information; however the strengthening of the housing
market at a fairly rapid pace and a couple of other revenue streams resulted in a positive variance from
budgeted revenues.
Expenses are budgeted at anticipated program needs at not-to-exceed projected funding levels. However,
during the fiscal year, the City opted to commit additional funding towards the Unfunded Accrued
Liability, or UAL, related to pensions. Based on a valuation report received from CalPERS and in
anticipation of the implementation of GASB 68, the City was informed that the Net Pension Liability, or
NPL, was approximately $6.9 million as of June 30, 2014. The report also included several funding
options to pay down this liability available to the City. The City Council chose to partially fund the UAL
in the amount of $3,294,619 during the fiscal year.
Capital Improvement Project Fund
As shown in the table above, the net change in the Capital Improvement Fund increased by $732,470 as
funding transfers for new Capital Improvement Projects exceeded expenses for the year.
Other
Capital Governmental
General Improvement Funds
Total Revenues 19,519,546$ 2,284,991$ 1,464,257$
Total Expenditures 19,882,351 3,217,619 1,322,632
Revenues Over
(Under) Expenditures (362,805) (932,628) 141,625
Transfers in - 1,767,108 1,000
Transfers out (1,666,098) (102,010) -
Net change in fund balances (2,028,903) 732,470 142,625
Beginning of year 11,835,634 3,126,307 1,631,617
End of year 9,806,731$ 3,858,777$ 1,774,242$
Major Funds
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
32
Other Governmental Funds
Of the net $142,625 increase in Other Governmental Funds, the collective 27 Landscaping & Lighting
funds comprise $133,811 of the total. The Library Bond debt service fund accounts for the remaining
$8,814 of the increase. Both net gains represent a small excess of revenue over expenditures in the
normal course of operations.
GENERAL FUND – BUDGETARY HIGHLIGHTS
Changes from the City's General Fund original budget to the final budget are detailed in the Required
Supplementary Information Section along with a comparison to actual activity for the year ended.
Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a
resolution of the City Council. Modifications to the budget that are a realignment of fiscal activities with
no impact to the fund's bottom line may be approved by the City Manager. Significant changes from the
City’s original budget to the final budget are summarized as follows:
Revenues and Transfers In
The General Fund adopted revenue budget was $18,212,217 as shown in the first column in the schedule
below:
Adopted to Final Budget
Fiscal Year Ended June 30, 2015
At mid-year, a budget adjustment was made to increase expected revenues. Impacts from the upturn in the
housing market coupled with a rare ERAF payment contributed to an anticipated $460,000 increase in
property taxes.
+=
Adopted Budget Final
Budget Adjustments Budget
Revenues 18,212,217$ 460,000 18,672,217$
Transfers in -$ - -$
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
33
Expenses and Transfers Out
The General Fund expense budget was adopted at $17,527,884 and adopted transfers out at $1,733,345, as
shown in the first column in the schedule below:
Adopted to Final Budget
Fiscal Year Ended June 30, 2015
A budget adjustment was made during the year; the City Council approved $3,380,000 in additional
expense related to the Unfunded Accrued Liability.
The original amount of $1,733,345 of budgeted transfers from the General Fund to the Capital
Improvement funds was allocated as follows; $730,000 for street, sidewalk, and storm drain repair,
$443,445 for trail improvements, $479,900 for various facility improvements, and $80,000 for various
administrative projects.
CAPITAL ASSETS
The City of Saratoga elected to use the "Modified Approach" as defined by GASB Statement No. 34 for
infrastructure reporting in which eligible infrastructure capital assets are not required to be depreciated if
the following requirements are met:
The City manages the assets using an asset management system which requires that the Ci ty (1)
perform an up-to-date inventory; (2) perform condition assessments and summarize the results using
a measurement scale; and (3) estimate the annual amount to preserve the assets at the established
condition assessment level.
The City documents that the eligible infrastructure capital assets are being preserved approximately
at or above the established and disclosed condition assessment level.
City policy is to achieve a Pavement Condition Index (PCI) average rating of 70 for all streets, at
minimum. The City’s overall rating was 69 with 0% of streets rated as Excellent, 81% of streets rated as
“Very Good” to "Good," 16% of streets rated “Poor,” and 3% of streets rated as "Very Poor." With the
overall rating below target, the City has begun the process to review infrastructure investment strategies.
Overall, the City spent $2,079,413 to maintain and preserve eligible infrastructure assets. For more
detailed information on Capital Assets activity, please refer to Note 4 in the section entitled "Notes to the
Basic Financial Statements" and Note 2 in the "Required Supplementary Section". The latest assessment
study was conducted during the fall of 2013.
As reflected in the following schedule, the City has $123,024,541 invested in a variety of capital assets as
of June 30, 2015. This represents a decrease of $147,329 or a 0.12% decrease from the prior year.
+=
Adopted Budget Final
Budget Adjustments Budget
Expenses 17,527,884$ 3,380,000 20,907,884$
Transfers out 1,733,345$ - 1,733,345$
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
34
The following reconciliation summarizes the changes in Capital Assets.
Major capital projects in progress during fiscal year 2014/15 included the following expenditures:
Saratoga Village Sidewalk, Curb & Gutters - $657,744
Quito Road Bridge Replacement - $221,069
Hakone Gardens Master Plan - $206,009
Quarry Park - $129,420
Highway 9 Traffic Safety - $126,540
Additional information on Capital Assets is included in Note 4 to the financial statements.
Governmental Activities
2015 2014
Land 14,885,401$ 14,585,401$
Building and structures 17,252,520 17,738,462
Machinery and equipment 673,182 715,874
Infrastructure 82,857,393 81,607,369
Construction in progress 7,356,045 8,524,764
Total Capital Assets, Net of Depreciation 123,024,541$ 123,171,870$
Capital Assets at Year End
Net of Depreciation
Balance Balance
July 1, 2014 Additions Retirements Reclassification June 30, 2015
Land 14,585,401$ 300,000$ -$ -$ 14,885,401$
Building and structures 25,701,330 210,539 - - 25,911,869
Machinery and equipment 2,589,440 86,538 (95,963) - 2,580,015
Infrastructure 105,026,791 2,464,219 - - 107,491,010
Construction in progress 8,524,764 1,806,039 (2,974,758) - 7,356,045
Depreciation (33,255,856) (2,039,906) 95,963 - (35,199,799)
Total Capital Assets,
Net of Depreciation 123,171,870$ 2,827,429$ (2,974,758)$ -$ 123,024,541$
Changes in Capital Assets
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
35
DEBT AND OTHER LONG-TERM OBLIGATION ADMINISTRATION
The net change in outstanding obligations for the City of Saratoga is a decrease of $563,929. Total long
term bonded debt, net of premium decreased by $506,892. Outstanding compensated absences decreased
by $47,037.
The current portion of long-term debt ($500,000 for the refunded 2001 General Obligation Bonds for
fiscal year 2014/15) and $21,892 of amortized net original premium, are classified as a current liability in
the City's Statement of Net Position.
General Obligation Bonds
The City refunded the 2001 General Obligation Bonds and in their place issued 2011 General Obligation
Bonds in the amount of $11,995,000 on July 14, 2011 with interest rates on the bonds ranging from 2.0%
to 4.0%, with final payment due August 1, 2031. Principal of $495,000 and interest of $394,960 were
paid during the fiscal year.
Compensated Absences
Compensated absences are accrued liabilities for vested and unpaid vacation and sick pay. The
compensated absences balance decreased during the fiscal year by $47,037 due to an increase in use and
payouts of unused compensated absences to retiring, separated, and general employees. An estimated
current liability of $404,988 is expected to be used in the next fiscal year.
Additional information on outstanding obligations can be found in Note 5 to the financial statements.
GASB STATEMENT 68
With the implementation of GASB Statement 68, a new approach to recording the pension liability will
be required and will be a closer measure of the unfunded actuarial liability. The recorded liability is
termed the “net pension liability. The net pension liability is calculated as the present value of projected
benefit payments less the plan’s fiduciary net position. Under Statement 68, absent any special funding
situations, each employer in a cost-sharing plan will record a new liability representing the “proportionate
share” of the collective net pension liability. The proportionate share should be determined on a basis
consistent with how contributions are determined. This new approach will have a material adverse impact
on the City’s Net Position.
CalPERS provided the necessary reports in order to determine the City’s net pension liability. Each report
has a valuation date and a measurement date. The valuation date determines the present value of projected
benefit payments to current active and inactive employees in the City’s cost-sharing pension plan. The
Governmental Activities
2015 2014
2011 General obligation bond 10,560,000$ 11,055,000$
Net original issue premuim 372,170 394,062
Compensated absences 624,500 671,537
Total Outstanding long-term obligations 11,556,670$ 12,120,599$
Outstanding Long-Term Obligation at Year End
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
36
valuation date for the present value of benefit payments is June 30, 2013. The measurement date indicates
when the net pension liability is determined. The measurement date of the net pension liability is June 30,
2014. Under GASB 68, the measurement date can be no earlier than the end of the prior fiscal year. Since
the valuation date occurs prior to the measurement date, the valuation date needs to be updated to the
measurement date as a prior period adjustment.
The prior period adjustment is a decrease to Net Position of $8,902,130. Net Pension Liability is
increased $6,945,916 to record the City’s proportionate share of the plan’s net pension liability as of June
30, 2014. Deferred inflow of resources refers to revenue received but not recognized. The deferred
inflow of resources balance increased a net $1,750, 613 to reflect the net difference between projected and
actual earnings and the amortization of differences in earnings and proportions. The deferred outflow of
resources refers to expenses paid but not recognized. The deferred outflow of resources balance increased
a net $703,379 to reflect the pension contributions made by the City subsequent to the measurement date,
adjustments due to differences in proportion and amortization of differences in earnings and proportions.
There is also a reduction in the current year pension expense of $908,980 to reflect contributions made
but not recognized and the amortization of the difference between actual contributions made by the City
and the City’s proportionate share of the plan’s total contributions.
GASB 68 requires expanded footnote disclosures in order to provide more transparency in the
assumptions used and more transparency in the cost of benefits promised. They include the following;
Effects of changes in benefit provisions
Changes in actuarial assumptions
Differences between investment assumptions and actual returns
Employer and employee contributions
Pension plan income and expenses
Multi-year schedules displaying balances of deferred outflows/inflows of resources that will
recognized in expense in subsequent years
The City’s proportionate share of the Plan’s pension liability
Assumptions used to determine the Plan’s pension liability
The City’s proportionate share information
Additional information on pension disclosures can be found in Note 7 of the Financial Statements.
USE OF GENERAL FUND RESERVES
In the most recent Actuarial Valuation Report received from CalPERS in October, 2014, an Unfunded
Accrued Liability (UAL) of approximately $6.9 million was identified. This amount was the result of
changes in assumptions and methodology adopted by CalPERS in 2012 and 2013. In 2012, CalPERS
reduced the discount rate from 7.75 percent to 7.50 percent. In 2013, CalPERS adopted a new smoothing
policy in order to restore funding levels to acceptable amounts. The changes made to the risk pools
combined all existing pooled plans into two pools; one for Miscellaneous and the other for Safety. Each
Plan is also allocated its proportionate share of the UAL on an annual basis. The changes were made to
ensure proper funding and to ensure that all participating agencies were paying their fair share.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
37
Under this new smoothing policy the City’s UAL is presented in three portions, $3.2 million for its share
of the historical gains and losses from the pre-2013 pool, $3.8 million in Asset losses in 2013 and a
$36,000 gain in Non-Assets in 2013. Going forward, gains and losses from investment earnings,
methodology changes or changes in assumptions will be amortized over a fixed 30 year period starting
with a gradual ramp up in the first 5 years, holding steady over the next 20 years, and gradually ramping
down in the last 5 years. Agencies can also pay off a portion of the UAL in order to save on interest costs.
Presented with this information, the Council directed the use of General Fund reserves and additional
General Fund appropriations in the amount of $3.38 million to pay off the Pre-2013 Pool portion of the
UAL. The reserves identified included, $1.0 million from the Fiscal Stabilization Reserve, $.95 million
from current year appropriations, $.93 million from the Working Capital Reserve and $.50 million from
the Capital Improvement Reserve. In February 2015, the City paid $3,294,619 towards the Pre-2013 Pool
UAL amount. This payment will be reflected in the Actuarial Valuation dated June 30, 2015 and will be
reflected in the Net Pension Liability adjustment under GASB 68 in next year’s financial statements.
ECONOMIC FACTORS
The fiscal year 2014/15 budget was developed in early spring of 2014. Increases continue to be seen in
the local tax base as the overall health of the economy recovers. Factors that continue to put pressure on
the budget include operating cost increases related to health care, pensions and public safety.
Infrastructure costs continue to increase coupled with decreasing state and federal aid. The City continues
to budget using conservative revenue projections while pursuing decreases in ongoing program
expenditures in order to maintain a sustainable Operating Budget.
As a carryover trend from fiscal year 2013/14, the City continues to see stability in revenues.
General Fund Property Taxes increased in total by 9.6%, with increases of $366,000 in Secured
Property Tax, $279,000 in ERAF, more than $56,000 in Unsecured Property Tax, and $20,000 in
Transfer Tax.
Development fees maintained stability as evidenced by:
Construction Tax and Supplemental Business License Tax (based on building permit values)
revenues were flat.
Planning and Building revenues decreased by 1.9% and Development Review revenues
increased by 4.9% - almost $39,000
Transient Occupancy Tax, long an indicator of economic temperament, saw a strong uptick with a
20% increase – almost $53,000.
Interest rates remain at historic lows; however, a slight tick upward is anticipated in fiscal year
2015/16.
Development engineering income decreased 17.4%, primarily from reduced map check review and
inspection revenues. Many other revenues remained flat – however General Fund expenses continued to
increase.
Salary and Benefit costs increased by $76,000 (1.2%), primarily due to the hiring of additional
personnel to address service levels. With new employee benefit levels reduced through the
implementation of lower cost pension plans and the capping of medical benefits, future labor cost
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2015
38
increases will be mitigated with the turnover of staff over time.
Consultant and Contract Services grew by more than $252,711. This is in part attributable to the
$368,000 increase in public safety services provided by the Santa Clara County Sheriff’s Office. The
Council approved the use of an additional traffic enforcement officer.
Excluding the payment towards the UAL, FY 2014/15 revenues grew at a faster pace than expenditures
(net of transfers), both in dollars and percentage. The substantial revenue increase which occurred in FY
2014/15 helped to firm the City’s long-term fiscal sustainability at current levels while allowing for the
opportunity to start repayment of the reserves used for the UAL payment.
Outlook
Although the City’s fiscal health continues to improve, General Fund revenues are not expected to
continue on this rapid growth trajectory. Fiscal projections anticipate a leveling off in revenues as this
growth is tempered by economic hesitation. Fiscal uncertainty remains, therefore the City plans to
continue to maintain operations at core service levels in preparation of potential funding impacts.
Potential revenue impacts include State takeaways of unprotected funding and changes in State directed
revenue allocations. Known impacts will come from reductions in capital funding grants from state and
federal sources to fund infrastructure improvement projects.
In addition to generally rising operational costs, aging infrastructure maintenance expenses are increasing
as our city ages. New infrastructure also adds to rising maintenance expenses, such as the implementation
of Quarry Park, or maintenance of new trails, and increased water bills for tree plantings and median
improvements.
In a long term status-quo projection, rising expenditures are certain, while revenue growth is not. As
local governments do not have the ability to increase taxes or other revenues at a sufficient pace to
maintain increasing operations, management must consider a long term view in the decision-making
process. One of the hardest challenges the City faces is balancing community expectations against the
fiscal reality of long-term operational practicality. The City continues to focus on this challenge.
REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide a general overview of the City of Saratoga's finances for all of
Saratoga's residents, taxpayers, customers, investors, and creditors. This financial report seeks to
demonstrate the City's accountability for the money it receives. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to the
Administrative Services Department, 13777 Fruitvale Avenue, Saratoga, California 95070.
39
BASIC FINANCIAL STATEMENTS
CITY OF SARATOGA
STATEMENT OF NET POSITION
JUNE 30, 2015
40
Primary Government
Governmental
Activities
ASSETS
Current Assets:
Cash and investments 19,245,652$
Restricted cash and investments -
Receivables:
Accounts 1,350,913
Interest 92
Prepaid 1,207
Total Current Assets 20,597,864
Noncurrent Assets:
Capital Assets:
Non-depreciable 73,861,285
Depreciable, net 49,163,256
Total Capital Assets 123,024,541
Total Noncurrent Assets 123,024,541
Total Assets 143,622,405
DEFERRED OUTFLOW OF RESOURCES
Pension contributions 703,379
Total Deferred Outflow of Resources 703,379
LIABILITIES
Current Liabilities:
Accounts payable 764,145$
Accrued payroll 186,031
Other payable 15,770
Interest payable 161,806
Deposits payable 1,864,234
Unearned Revenue 24,998
Claims payable 134,254
Long-term obligations - due within one year 926,880
Total Current Liabilities 4,078,118
Noncurrent Liabilities:
Net Pension Liabilty 6,945,916
Long-term obligations - due in more than one year 10,629,790
Total Noncurrent Liabilities 17,575,706
Total Liabilities 21,653,824
DEFERRED INFLOW OF RESOURCES
Difference between projected and actual earnings 1,750,613
Total Deferred Inflow of Resources 1,750,613
Net Position
Net investment in capital assets 112,092,371
Restricted for:
Environmental funds 363,182
Special assessment funds 867,642
Debt service 906,600
Total Restricted 2,137,424
Unrestricted 6,691,552
Total Net Position 120,921,347$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION
JUNE 30, 2015
41
Net (Expense)
Revenue and
Changes in
Program Revenues Net Position
Primary
Operating Capital Government
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Total Activities
Primary Government:
Governmental Activities:
General and intergovtl services 7,566,201$ 122,151$ -$ -$ 122,151$ (7,444,051)$
Public safety 4,850,289 353,534 107,062 - 460,596 (4,389,693)
Public works 6,272,570 2,473,934 - 785,366 3,259,301 (3,013,269)
Community services 1,588,840 951,517 - - 951,517 (637,324)
Community development services 1,961,660 2,234,041 - - 2,234,041 272,382
Interest on long-term debt (unall.)390,834 - - - - (390,834)
Total 22,630,395$ 6,135,177$ 107,062$ 785,366$ 7,027,606$ (15,602,789)$
General Revenues:
Taxes
Property taxes 10,669,281$
Sales taxes 1,224,427
Local taxes 866,272
Franchise taxes 2,069,479
Motor vehicle-in-lieu 13,113
Total taxes 14,842,571
Intergovernmental 1,022,838
Investment earnings 67,121
Other revenues 236,988
Total General Revenues 16,169,519
Change in Net Position 566,730
Net Position - Beginning of Year 129,256,133
Prior Period Adjustment - GASB 68 (8,901,517)
Net Position - Beginning of Year as Adjusted 120,354,616
Net Position - End of Year 120,921,347$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
GOVERNMENTAL FUNDS – BALANCE SHEET
JUNE 30, 2015
42
Other Total
Capital Governmental Governmental
General Improvement Funds Funds
ASSETS
Cash and investments 11,623,739$ 3,469,298$ 1,786,532$ 16,879,569$
Receivables:
Accounts 615,650 726,774 4,792 1,347,216
Interest 92 - - 92
Prepaid Items 1,207 - - 1,207
Total assets 12,240,688$ 4,196,072$ 1,791,324$ 18,228,084$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 391,829$ 308,138$ 17,082$ 717,049$
Accrued payroll 163,020 3,257 - 166,277
Deposits payable 1,863,334 900 - 1,864,234
Other payable 15,770 - - 15,770
Unearned Revenue 4 25,000 - 25,004
Total liabilities 2,433,957 337,295 17,082 2,788,334
Fund Balances:
Restricted:
Environmental services 363,182 - - 363,182
Special assessment funds - - 867,642 867,642
Debt service - - 906,600 906,600
Committed:
Capital improvement program - 3,858,777 - 3,858,777
Hillside stability 1,000,000 - - 1,000,000
Assigned:
Future capital & efficiency 1,657,896 - - 1,657,896
Carryforwards 176,560 - - 176,560
Facility replacement 900,000 - - 900,000
Unassigned:
Working capital 2,007,545 - - 2,007,545
Fiscal stabilization 1,000,000 - - 1,000,000
Compensated absences 208,167 - - 208,167
Development services 713,891 - - 713,891
Other unassigned 1,779,491 - - 1,779,491
Total fund balances 9,806,731 3,858,777 1,774,242 15,439,750
Total liabilities and fund balances 12,240,688$ 4,196,072$ 1,791,324$ 18,228,084$
The accompanying notes are an integral part of these financial statements
Major Funds
CITY OF SARATOGA
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2015
43
Total Fund Balances - Total Governmental Funds 15,439,750$
Amounts reported for governmental activities in the statement of net position were
different because:
Capital assets used in governmental activities were not current financial resources. Therefore,
they were not reported in the Governmental Funds Balance Sheet. The capital assets were
adjusted as follows:
Non-depreciable capital assets 73,861,285
Depreciable capital assets, net 48,967,358
Total Capital Assets 122,828,643
Interest payable on long-term debt did not require current financial resources. Therefore,
interest payable was not reported as a liability in Governmental Funds Balance Sheet.(161,806)
Internal service funds are used by management to charge the costs of office stores,
vehicle and equipment maintenance and replacement, information services and replacement,
building maintenance, risk management, and workers compensation. The assets and
liabilities of the internal service funds are included in the governmental activities in
the statement of net assets 2,364,574
Long-term receivables were not current available resources and therefore, were offset by
a deferred revenue amount equal to the net receivable in the governmental funds.6
Deferred outflow of resources are transactions that have already taken place but are not ready
to be recognized on the financial statements as expenses
Reclassify FY 2014/15 pension contribution 609,860
Adjustment due to difference in proportions 145,474
Amortization of difference in proportions (51,955)
703,379
Long-term obligations were not due and payable in the current period. Therefore, they were not
reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted
as follows:
General obligation bonds (10,560,000)
Net Pension Liability (6,945,916)
Compensated absences (624,500)
Net original issue premium (372,170)
Total Long-Term Obligations (18,502,586)
Deferred inflow of resources are transactions that have already taken place but are not ready
to be recognized on the financial statements as revenues
Net difference between projected and actual earnings on pension plan investments (2,334,150)
Amortization of difference in projected and actual earnings on investments 583,537
(1,750,613)
Net Position of Governmental Activities 120,921,347$
CITY OF SARATOGA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGE
IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2015
44
Other Total
Capital Governmental Governmental
General Improvement Funds Funds
REVENUES:
Property taxes 10,436,622$ -$ 232,659$ 10,669,281$
Special assessments - - 1,220,272 1,220,272
Sales taxes 1,224,427 - - 1,224,427
Other local taxes 866,272 - - 866,272
Licenses & permits 1,388,443 224,189 - 1,612,632
Fines & forfeiture 172,888 1,750 - 174,638
Intergovernmental - Federal - 651,093 - 651,093
Intergovernmental - State 523,991 1,014,299 - 1,538,290
Intergovernmental - Other 62,605 34,000 - 96,605
Franchise fees 2,069,479 - - 2,069,479
Use of money and property 519,979 33,580 3,712 557,271
Other revenue 2,254,840 326,080 7,614 2,588,534
Total revenues 19,519,546 2,284,991 1,464,257 23,268,794
EXPENDITURES:
Current:
General and intergovernmental services 6,624,327 - - 6,624,327
Public safety 4,859,379 - - 4,859,379
Public works 4,948,539 - 432,672 5,381,211
Community services 1,328,083 - - 1,328,083
Community development services 2,086,680 - - 2,086,680
Capital outlay 35,343 3,217,619 - 3,252,962
Debt service:
Principal - - 495,000 495,000
Interest and fiscal charges - - 394,960 394,960
Total expenditures 19,882,351 3,217,619 1,322,632 24,422,602
REVENUES OVER
(UNDER) EXPENDITURES (362,805) (932,628) 141,625 (1,153,808)
OTHER FINANCING SOURCES (USES):
Transfers in - 1,767,108 1,000 1,768,108
Transfers out (1,666,098) (102,010) - (1,768,108)
Total other financing sources (uses)(1,666,098) 1,665,098 1,000 -
Net change in fund balances (2,028,903) 732,470 142,625 (1,153,808)
FUND BALANCES:
Beginning of year 11,835,634 3,126,307 1,631,617 16,593,558
End of year 9,806,731$ 3,858,777$ 1,774,242$ 15,439,750$
The accompanying notes are an integral part of these financial statements.
Major Funds
CITY OF SARATOGA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES AND CHANGES IN NET
POSITION
FOR THE YEAR ENDED JUNE 30, 2015
45
Net Change in Fund Balances - Total Governmental Funds (1,153,808)$
Amounts reported for governmental activities in the Statement of Activities and Changes
in Net Position were different because:
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide
Statement of Activities and Changes in Net Position, the cost of those assets was allocated over
their estimated useful lives as depreciation expense. This is the amount of capital assets
recorded in the current period.1,745,419
Depreciation expense on capital assets was reported in the Government-Wide Statement
of Activities and Changes in Net Position, but it did not require the use of current financial
resources. Therefore, depreciation expense was not reported as expenditures in the
Governmental Funds.(1,888,809)
Internal service funds are used by management to charge the costs of office stores,
vehicle and equipment maintenance and replacement, information services and replacement,
building maintenance, risk management, and workers' compensation. The net revenue
or excess expenses of the internal service funds is reported with government activities.386,893
GASB 68 Adjustments to pension expense
Reclassify 2015 pension contribution 609,860
Change in net pension liability - current year (232,462)
Amortization of changes in deferred outflows/inflows 531,582
Adjustments to pension expense as a result of GASB 68 908,980
Long-term compensated absences and claims payables were reported in the Government-Wide
Statement of Activities and Changes in Net Position, but they did not require the use of current
financial resources. Therefore, long-term compensated absences and claims payable were not
reported as expenditures in governmental funds.
Compensated absences 47,037
Repayment of bond principal was an expenditure in governmental funds, but the repayment
reduced long-term liabilities in the Government-Wide Statement of Net Position.
Long-term debt repayments 495,000
Revenues resulting from the refunding of outstanding debt are not available to pay
current-period expenditures and therefore, are revenue in the funds.
Net original issue premium 21,892
Interest expense on long-term debt was reported in the Government-Wide Statement of
Activities and Changes in Net Position, but it did not require the use of current financial
resources. Therefore, interest expense was not reported as expenditures in governmental
funds. The following amount represented the change in accrued interest from prior year.4,126
Change in Net Position of Governmental Activities 566,730$
CITY OF SARATOGA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2015
46
Governmental
Activities -
Internal
Service Funds
ASSETS
Current assets:
Cash and investments 2,366,083$
Accounts receivable 3,697
Total current assets 2,369,780
Noncurrent assets:
Capital assets:
Machinery and equipment 992,560
Less: accumulated depreciation (796,662)
Total capital assets (net of
accumulated depreciation) 195,898
Total assets 2,565,678
LIABILITIES
Liabilities:
Current liabilities:
Accounts payable 47,096$
Accrued payroll 19,754
Other payables 134,254
Total current liabilities 201,104
NET POSITION
Net investment in capital assets 195,898
Unrestricted 2,168,676
Total net position 2,364,574$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
47
Governmental
Activities -
Internal
Service Funds
Operating revenues:
Charges for services 2,495,000$
Other operating revenues 74,727
Total operating revenues 2,569,727
Operating expenses:
Cost of services 1,072,893
Administration 1,054,807
Depreciation 55,134
Total operating expenses 2,182,834
Operating income (loss)386,893
Transfers out -
Change in net position 386,893
Total net position - beginning 1,977,681
Total net position - ending 2,364,574$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
JUNE 30, 2015
48
Governmental
Activities -
Internal
Service Funds
Cash flows from operating activities:
Receipts from customers and users 2,576,556$
Payments to suppliers (1,145,719)
Payments to employees (890,924)
Net cash provided (used) by operating activities 539,913
Cash flows from capital activities:
Acquisition of capital assets (51,196)
Net cash provided for the acquisition of capital assets (51,196)
Net increase in cash and cash equivalents 488,717
Cash and cash equivalents, beginning of year 1,877,366
Cash and cash equivalents, ending of year 2,366,083$
Reconciliation of operating income to net cash provided
by operating activities:
Operating income (loss)386,893$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 55,134
Change in operating assets and liabilities:
Accounts receivables 6,829
Accounts payable (5,404)
Claims payable 94,754
Accured payroll 1,707
Net cash provided (used) by operating activities 539,913$
The accompanying notes are an integral part of these financial statements
49
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CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
50
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Saratoga, California, (the City) have been prepared in
conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.
The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for
establishing governmental accounting and financial reporting principles. The more significant of the
City's accounting policies are described below.
A. Financial Reporting Entity
The City was incorporated as a municipal corporation in 1956 under the general laws of the State of
California, and had a population of 30,887 at June 30, 2014. The City is a largely residential community
located in the foothills of the Santa Cruz Mountains.
The City operates under the Council-Manager form of government, with five-elected Council members
served by a full-time City Manager and staff. At June 30, 2014, the City's staff was comprised of 57 full-
time or part-time employees, and numerous part-time temporary and seasonal employees. Staff is
responsible for the following City services:
Public Safety - The City provides round-the-clock police services under a contract with the Santa
Clara County Sheriff's offices. Emergency management and Fire services are provided by a special
district. Code enforcement and inspection services are provided by City employees.
Public Works/Maintenance - The City builds and maintains its parks, streets, curbs, gutters, and
related public property with a force of 21 employees. Major projects may be contracted out to
reduce costs.
Community Development - Zoning administration, plan checking and advance planning services are
provided by 12 employees.
Culture, Recreation and Community Support services are provided by a total of 10 employees.
General Government services are provided by a total of 14 employees.
As required by GAAP, these basic financial statements present the City and its component units, entities
for which the City is considered to be financially accountable. The City Council acts as the governing
board. In addition, the City staff performs all administrative and accounting functions for these entities
and these entities provide their services entirely to the City. Blended component units, although legally
separate entities are, in substance, part of the City's operations and data from these units are combined
with data of the City. Discretely presented component units, on the other hand, are reported in a separate
column in the government-wide financial statements to emphasize their legal separateness from the City.
Each blended component unit has a June 30 year-end. The City had no discretely presented component
units.
The following entity is reported as blended component unit:
Lighting and Landscaping Assessment District - The Lighting and Landscaping Assessment District
(the District) was established in 1980, for the levy and the collection of assessments upon the several lots
or parcels of land in the District, and for the construction or installation of improvements, i ncluding
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
51
maintenance. The District is reported as a blended component unit of the City because it has the same
Governing Board as the City. The activity for the District has been included in the accompanying basic
financial statements and no separate financial statements are issued.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as
appropriate. Governmental resources are allocated to and accounted for in individual funds based upon
the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of
Activities and Changes in Net Position. These statements present summaries of governmental activities
for the City. Fiduciary activities of the City are not included in these statements.
These statements are presented on an "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as
infrastructure assets, long-term liabilities, and deferred inflows and outflows of resources are included in
the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.
Under the accrual basis of accounting, revenues are recognized in the period in which they are earned
while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables, and receivables. All internal balances in the Statement of Net Position have been
eliminated. The following interfund activities have been eliminated:
Transfers in/Transfers out
Internal Service Fund charges
Land and Lighting District Service Fees
Deferred Outflow of Resources and Deferred Inflow of Resources
Deferred outflow of resources is a consumption of net assets by the City that is applicable to a future
reporting period, such as prepaid items and deferred charges.
Deferred inflow of resources is an acquisition of net assets by the City that is applicable to a future
reporting period, such as unearned revenue and advance collections.
Unearned Revenue
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
52
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.
Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows
from unearned revenue. In the governmental fund financial statements, receivables as sociated with non-
exchange transactions that will not be collected within the availability period have been recorded as
deferred inflows from unearned revenue.
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in net
position as presented in these statements to the net position presented in the government-wide financial
statements. The City has presented all major funds that met the applicable criteria. The following funds
are major funds:
General Fund
The General Fund is used to account for all of the general resources of the City not specifically levied or
collected for other City funds and the related expenditures. The General Fund accounts for all financial
resources of the City which are not accounted for in another fund.
Capital Improvement Capital Projects Fund
This fund accounts for resources used for the major capital acquisition and construction activities.
All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets , deferred outflows
of resources, current liabilities and deferred inflows of resources are included on the balance sheets. The
Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in
which they become both measurable and available to finance expenditures of the current period.
Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to
45 days after year-end) are recognized when due. The primary revenue sources, which have been treated
as susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental
revenues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures,
licenses and permits and parking meter revenues are not susceptible to accrual because they are usually
not measurable until received in cash. Expenditures are recorded in the accounting period in which the
related fund liability is incurred.
Unearned revenues arise when potential revenues do not meet both the "measurable" and "available"
criteria for recognition in the current period. Unearned revenues also arise when the government receives
resources before it has a legal claim to them, as when grant monies are received prior to incurring
qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when
the government has a legal claim to the resources, the unearned revenue is removed from the combined
balance sheet and revenue is recognized.
Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is
provided to explain the differences created by the integrated approach of GASB Statement No. 34.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
53
Proprietary Funds
The City’s internal service funds are proprietary funds. In the fund financial statements, proprietary funds
are presented using the accrual basis of accounting. Revenues are recognized when they are earned and
expenses are recognized when the related goods or services are delivere d. In the fund financial
statements, proprietary funds are presented using the “economic resources measurement focus”. This
means all assets and liabilities (whether current or noncurrent) associated with their activities are included
on their balance sheets. Proprietary fund type operating statements present increases (revenues) and
decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and
investment earnings result from non-exchange transactions or ancillary activities. Amounts paid to
acquire capital assets are capitalized as assets in the internal service funds financial statements.
Internal service funds account for charges to City departments for services provided, on a cost
reimbursement basis, in the following areas: general liability, workers’ compensation, office stores,
information technology services, vehicle maintenance, building maintenance, equipment replacement, and
information technology replacement.
Fiduciary Fund Financial Statements
During fiscal year 2014/15 the City has no fiduciary responsibility as prior reported agency funds have
been transferred to other outside government agencies.
C. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturity of
three months or less from the date of acquisition. Cash and cash equivalents are combined with
investments and displayed as Cash and Investments.
Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and
Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if
applicable, for Deposits and Investment Risks in the following areas:
Interest Rate Risk
Credit Risk
▬ Overall
▬ Custodial Credit Risk
▬ Concentrations of Credit Risk
Foreign Currency Risk
Other disclosures are specified including use of certain methods to present deposits and investments,
highly sensitive investments, credit quality at year-end and other disclosures.
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The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF), which has invested a portion of the pool funds in St ructured Notes and Asset
Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State
of California collateralizing these investments. In addition, these Structured Notes and Asset -Backed
Securities are subject to market risk as to change in interest rates.
D. Inter-fund Transactions
Inter-fund services provided and used are accounted for as revenue, expenditures or expenses, as
appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially
made from it that are properly applicable to another fund are recorded as expenditures/expenses in the
reimbursed fund. All other inter-fund transactions, except for inter-fund services provided and used and
reimbursements, are reported as transfers. Nonrecurring or non -routine permanent transfers of equity are
reported as residual equity transfers. All other inter-fund transfers are reported as transfers.
E. Capital Assets
Capital assets, including land, buildings, improvements, furniture, equipment and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental activities
in the government-wide financial statements. Capital assets were recorded at historical cost or estimated
historical cost if actual cost was not available. Donated assets were valued at their fair market value on
the date of donation. City policy has set the capitalization threshold for reporting capital assets at
$10,000. The City has chosen the Modified Approach for reporting the streets subsystem of infrastructure
capital assets.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings and structures 40 Years
Machinery and equipment 5 to 10 Years
Infrastructure 15 to 50 Years
In June 1999, GASB issued Statement No. 34 Basic Financial Statements – and Management’s
Discussion and Analysis – for State and Local Governments which requires the inclusion of infrastructure
capital assets in local governments' basic financial statements. In accordance with Statement No. 34, the
City has included the value of all infrastructure assets in its basic financial statements.
The City defines infrastructure as the basic physical assets that allow the City to function, which includes
the street system, park and recreation lands and improvements system; storm water conveyance and
drainage system, buildings combined with site amenities such as parking and landscaping areas used by
the City in the conduct of its business.
Each major infrastructure system can be divided into subsystems. For example the street system can be
subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices
(signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in
the basic financial statements. The appropriate operating department maintains information regarding the
subsystems. The City elected to use the Modified Approach as defined by GASB Statement No. 34 for
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infrastructure reporting of its streets, concrete and asphalt pavements. The City commissioned a physical
assessment of the streets condition as of June 30, 2013. This condition assessment was performed in the
fall of 2013 with the final report presented in March, 2014. A Pavement Condition Index (PCI) was
assigned to each street segment. The index is expressed in a continuous scale from 0 to 100, where 0 is
assigned to the least acceptable physical condition and 100 is assigned to segments of street that have the
physical characteristics of a new street.
The following conditions were defined:
The City's policy relative to maintaining the street assets is to achieve an average rating of 70 for all street
segments. This acceptable rating allows minor cracking and raveling of the pavement along with minor
roughness that could be noticeable to drivers traveling at the posted speeds. For all other infrastructure
systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for
infrastructure reporting. An appraisal determined the original cost, which is defined as the act ual cost to
acquire new property in accordance with market prices at the time of first construction/acquisition.
Original costs were developed in one of three ways: 1) historical records; 2) standard unit costs
appropriate for the construction/acquisition date; or 3) present cost indexed by a reciprocal factor of the
price increase from the construction/acquisition date to the current date. The accumulated depreciation,
defined as the total depreciation from the date of construction/acquisition to the current date on a straight
line, unrecovered cost method was computed using industry accepted life expectancies for each
infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation
from the original cost.
F. Interest Payable
In the government-wide financial statements, interest payable of long-term debt is recognized as an
incurred liability for governmental fund types. The City has not allocated the interest on long -term debt
to departments.
In the fund financial statements, governmental fund types do not recognize the interest payable when the
liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.
G. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general
liability claims (including property damage claims) and workers' compensation claims. The estimated
Condition Rating
Excellent 80 - 100
Very Good 70 - 79
Good 50 - 69
Poor 25 - 49
Very Poor 0 - 24
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liability for workers' compensation claims and general liability claims includes "incurred but not
reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities.
H. Compensated Absences
In the government-wide financial statements, compensated absences are recorded as incurred and the
related expenses and liabilities are reported.
In the fund financial statements, compensated absences are recorded as expenditures in the years paid, as
it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources,
rather than currently available financial resources. Only the amounts which become due at June 30 are
reported in the fund financial statements as a liability.
I. Long- Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported
as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance
costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds
payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financial sources. Premiums received on debt issuance are reported as other financing sources while
discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from
the actual debt proceeds received, are reported as debt service expenditures.
J. Fund Balances
In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54,
Fund Balance Reporting and Governmental Fund Type Definitions. This standard left unchanged the
total amount reported as fund balance, but substantially altered the categories and terminology used to
describe its components. Rather than focus on financial resources available for appropriation, the new
categories focus on “the extent for which the government is bound to honor constraints in the specific
purposes for which amounts in the reserve can be spent”.
The components of fund balance are now categorized as follows: “non-spendable fund balance”,
resources that are inherently non-spendable from the vantage point of the current period; “restricted fund
balance”, resources that are subject to enforceable legal restrictions; “committed fund balance”, resources
whose specified use is constrained by limitations the government entity imposes upon itself through
formal action at its highest level of decision making and remains binding unless removed in the same
manner; “assigned fund balance”, resources that reflects a government’s intended general use of
resources, such intent would have to be established at either the highest level of decision making, by a
body, or an official designated for that purpose; and “unassigned fund balance”, net resources in excess of
what can properly be classified in one of the other four categories. Currently, the City’s fund balance
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reserves fall into one of the four spendable categories; restricted, committed, assigned, or unassigned fund
balance.
The City maintains three restricted fund balances constrained by external legal restrictions that can be
spent only for the stipulated purposes. These fund balances are:
Special Assessments Fund Balance – collectively represents year-end fund balances of twenty-
five landscape and/or lighting assessment districts which use is restricted to the individual district.
Environmental Services Fund Balance – represents surcharges collected on solid waste bills for
use as supplemental funding of Environmental Services program fees for household hazardous
waste fees, storm drain, street sweeping, and other pollution mitigation expenses related to
integrated waste programs and storm water management. These funds are used to supplement
environmental expenditures by using $50,000 per year.
Debt Service Fund Balance – represents funding collected for and use in the City’s general
obligation bond debt.
The committed category, in which fund balance is constrained by limitations that the government imposes
upon itself at its highest level of decision making by formal vote on a resolution of the City Council, and
remains binding unless removed in the same manner, includes the following:
Capital Improvement Program (CIP) Fund Balance – represents the collective balance of funding
appropriated for specific capital improvement projects. Capital Projects are funded through direct
revenues or budgeted transfers for improvement work within the following program funds:
Streets, Park & Trail, Facility, or Administrative Improvements.
Hillside Stability - funding set aside for use either in emergency repairs or high-cost and non-
routine mitigation of hillside or landslide projects.
In the assigned category, fund balance reflects an intended use as established by Council. Use of
Assigned Fund Balance is approved by formal vote of the Council or official authorized to assign
amounts to a specific purpose, either through specific action, fund balance policy, or through budget
direction and approval. This category includes the following reserves:
Future Capital & Efficiency Funding - represents General Fund funding set aside for capital
and/or efficiency projects but not yet committed for a specific improvement project. During
fiscal year 2014/15, Council directed the use of $500,000 of the Future Capital & Efficiency
Reserve balance toward the $3,294,619 partial payment of the Unfunded Accrued Liability.
Facility Replacement Reserve – represents accumulated funding for the future replacement, major
rehabilitation, or new construction of City-owned facilities. This funding is to be used for
funding the construction or provide for the services of related debt, but is not yet committed for a
specific improvement project.
Carryforward – represents either prior-year funds designated for one-time operational activities
not yet completed by year-end, or to carryforward prior-year funding for specific activities as
directed by Council. Carryover funds are appropriated for use in the following fiscal year.
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The Unassigned Fund Balance category represents funding which may be held for specific types of uses
or stabilization purposes, but is not yet directed to be used for a specific purpose. Reserve amounts are
determined by, and align with, fund policy direction.
Working Capital Reserve – provides funds for cash flow. Council policy set aside $2,000,000 on
July 1, 1999, to be increased annually by an amount equal to the interest the City earned on the
equivalent amount of cash and investments. As of June 30, 2015 the Working Capital Reserve
balance is $2,000,007. During fiscal year 2014/15, Council directed the use of $930,184 of
Working Capital Reserve toward the $3,294,619 partial payment of the Unfunded Accrued
Liability.
Fiscal Stabilization Reserve – Council policy is to maintain $1,500,000 for use by Council
direction in case of disasters, emergencies, and economic downturns. As of June 30, 2015, the
Fiscal Stabilization Reserve balance is $1,000,000. During fiscal year 2014/15, Council directed
the use of $500,000 of Fiscal Stabilization Reserve toward the $3,294,619 partial payment of the
Unfunded Accrued Liability.
Development Services Reserve– represents reserve funds collected for development services to
be used to support multi-year funding levels for zoning administration, inspection services, and
development regulation programs during periods where expenditures exceed revenues.
Compensated Absences Reserve – represents reserve funding for employee payout compensation
equal to the one-third of annual liability balance. This funding level is anticipated to be the
maximum potential payout in excess of budgeted salary in a fiscal year.
Other Unassigned Fund Balance – represents funding not yet appropriated or assigned for use.
Council policy is to maintain a minimum of $500,000 in unassigned funds as a buffer for
unplanned expenditures or revenue shortfalls.
Flow Assumption / Spending Order Policy – When expenditures are incurred for purposes for which both
restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first.
When expenditures are incurred for which committed, assigned, or unassigned fund balances are
available, the City considers amounts to be spent first out of committed funds, then assigned funds, and
finally unassigned funds, as needed, unless the City Council has directed otherwise.
K. Net Position
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets – This amount consists of capital assets net of accumulated
depreciation and reduced by outstanding debt that attributed to the acquisition, construction,
or improvement of the assets. In addition, deferred outflows of resources and deferred inflows
of resources that are attributable to the acquisition, construction, or improvement of those
assets or related debt also are included in the net investment in capital assets component of
net position.
Restricted Net Position – This amount is restricted by external creditors, grantors,
contributors, or laws or regulations of other governments.
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Unrestricted Net Position – This amount is all net position that does not meet the definition of
"invested in capital assets, net of related debt" or "restricted net position."
L. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net positions are
available, the City's policy is to apply restricted net position first.
M. Property Tax and Special Assessments
County tax assessments include secured and unsecured property taxes and special assessments.
"Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the
property being taxed.
Revenue is recognized in the period for which the tax and assessment is levied. The County of Santa
Clara levies, bills and collects property taxes for the City, the County remits the entire amount levied and
handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are
levied on January 1.
Secured property tax is due in two installments on November 1 and February 1, and becomes a lien on
those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is
due on July 1 and becomes delinquent on August 31.
N. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
O. Subsequent Events
Management has reviewed subsequent events and transactions that occurred after the date of the financial
statements through the date of issuance. The financial statements include all events or transactions,
including estimates, required to be recognized in accordance with generally accepted accounting
principles. Management has determined that there are no non-recognized subsequent events that require
additional disclosure.
P. New GASB Pronouncements
A. Implemented New Accounting Pronouncements
GASB Statement No. 68 - Accounting and Financial Reporting for Pensions - an amendment of
GASB Statement No. 27 (Issued 06/12). The primary objective of this Statement is to improve
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60
accounting and financial reporting by state and local governments for pensions. It also improves
information provided by state and local governmental employers about financial support for pensions
that is provided by other entities. This Statement replaces the requirements of Statement No. 27,
Accounting for Pensions by State and Local Governmental Employers, as well as the requirements of
Statement No. 50, Pension Disclosures, as they relate to pensions that are provided through pension
plans administered as trusts or equivalent arrangements (hereafter jointly re ferred to as trusts) that
meet certain criteria. This Statement establishes a definition of a pension plan that reflects the primary
activities associated with the pension arrangement-determining pensions, accumulating and managing
assets dedicated for pensions, and paying benefits to plan members as they come due. This Statement
has been implemented as of June 30, 2015.
See Note 7 for information related to the financial statement impact of this Statement.
GASB Statement No. 69 – In January, 2013, GASB issued Statement No. 69, Government
Combinations and Disposal of Government Operations. This Statement establishes accounting and
financial reporting standards related to government combinations and disposal of government
operations. As used in this Statement, combinations include a variety of transactions referred to as
mergers, acquisitions, and transfers of operations.
There is no financial statement effect related to this Statement.
GASB Statement No. 70 – In April, 2013, GASB issued Statement No 70, Accounting and Financial
Reporting for Non-exchange Financial Guarantees. Some governments extend financial guarantees
for the obligations of another government, a not-for-profit entity, or private entity without directly
receiving equal or approximately equal value in exchange (a non-exchange transaction).
The City does not participate in non-exchange transactions. Therefore, this Statement has no
financial statement effect.
GASB Statement No. 71 – In November, 2013, GASB issued Statement No 71, Pension Transition
for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement
No. 68. The objective of this Statement is to address an issue regarding application of the transiti on
provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates
to amounts associated with contributions, if any, made by a state or local government employer or
non-employer contributing entity to a defined benefit pension plan after the measurement date of the
government’s beginning net pension liability. The provisions of this Statement were required to be
applied simultaneously with the provisions of Statement 68 and have been implemented as of June
30, 2015.
See Note 7 for information related to the financial statement impact of this Statement.
B. Upcoming Accounting and Reporting Changes
GASB Statement No. 72 – In February, 2015, GASB issued Statement No 72, Fair Value
Measurement and Application. This Statement addresses accounting and financial reporting issues
related to fair value measurements. The definition of fair value is the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. This Statement provides guidance for determining a fair value measurement for
CITY OF SARATOGA
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financial reporting purposes. This Statement also provides guidance for applying fair value to certain
investments and disclosures related to all fair value measurements. The requirements of this
Statement are effective for financial statements for periods beginning after June 15, 2015 (fiscal year
ending June 30, 2016).
The City is in the process of determining the impact this statement will have on the financial
statements, but does not anticipate a material impact on its financial statements.
GASB Statement No. 73 – Accounting and Financial Reporting for Pensions and Related Assets
That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of
GASB Statements 67 and 68. Effective date: the provisions in Statement 73 are effective for fiscal
years beginning after June 15, 2015—except those provisions that address employers and
governmental non-employer contributing entities for pensions that are not within the scope of
Statement 68, which are effective for fiscal years beginning after June 15, 2016. The objective of this
Statement is to improve the usefulness of information about pensions included in the general purpose
external financial reports of state and local governments for making decisions and assessing
accountability. This Statement results from a comprehensive review of the effectiveness of existing
standards of accounting and financial reporting for all postemployment benefits with regard to
providing decision-useful information, supporting assessments of accountability and inter-period
equity, and creating additional transparency. This Statement also clarifies the application of certain
provisions of Statements 67 and 68 with regard to the following issues:
Information that is required to be presented as notes to the 10 -year schedules of required
supplementary information about investment-related factors that significantly affect trends in the
amounts reported
Accounting and financial reporting for separately financed specific liabilities of individual
employers and non-employer contributing entities for defined benefit pensions
Timing of employer recognition of revenue for the support of non -employer contributing entities
not in a special funding situation.
Management is in the process of determining the effect this Statement will have on the financial
statements, but does not anticipate a material impact.
GASB Statement No. 74 – Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans. Effective date: the provisions in Statement 74 are effective for fiscal years beginning
after June 15, 2016. The objective of this Statement is to improve the usefulness of information about
postemployment benefits other than pensions (other postemployment benefits or OPEB) included in
the general purpose external financial reports of state and local governmental OPEB plans for making
decisions and assessing accountability. This Statement replaces Statements No. 43, Financial
Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, and No. 57,
OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes
requirements for defined contribution OPEB plans that replace the requirements for those OPEB
plans in Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note
Disclosures for Defined Contribution Plans, as amended, Statement 43, and Statement No. 50,
Pension Disclosures.
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The scope of this Statement includes OPEB plans—defined benefit and defined contribution—
administered through trusts that meet the following criteria:
Contributions from employers and non-employer contributing entities to the OPEB plan and
earnings on those contributions are irrevocable.
OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the
benefit terms.
OPEB plan assets are legally protected from the creditors of employers, non-employer
contributing entities, and the OPEB plan administrator. If the plan is a defined benefit OPEB
plan, plan assets also are legally protected from creditors of the plan members.
The City does not offer OPEB plans to its employees. Therefore, this statement will have no financial
statement effect.
GASB Statement No. 75 – Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions. Effective date: the provisions in Statement 75 are effective for fiscal years beginning
after June 15, 2017. The primary objective of this Statement is to improve accounting and financial
reporting by state and local governments for postemployment benefits other than pensions (other
postemployment benefits or OPEB). It also improves information provided by state and local
governmental employers about financial support for OPEB that is provided by other entities. This
Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB
Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No.
74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes
new accounting and financial reporting requirements for OPEB plans.
The scope of this Statement addresses accounting and financial reporting for OPEB that is provided to
the employees of state and local governmental employers. This Statement establishes standards for
recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources,
and expense/expenditures. For defined benefit OPEB, this Statement identifies the methods and
assumptions that are required to be used to project benefit payments, discount projected benefit
payments to their actuarial present value, and attribute that present value to periods of employee
service. Note disclosure and required supplementary information requirements about defined benefit
OPEB also are addressed.
In addition, this Statement details the recognition and disclosure requirements for employers with
payables to defined benefit OPEB plans that are administered through trusts that meet the specified
criteria and for employers whose employees are provided with defined contribution OPEB. This
Statement also addresses certain circumstances in which a nonemployer entity provides financial
support for OPEB of employees of another entity.
In this Statement, distinctions are made regarding the particular requirements depending upon
whether the OPEB plans through which the benefits are provided are administered through trusts that
meet the following criteria:
Contributions from employers and nonemployer contributing entities to the OPEB plan and
earnings on those contributions are irrevocable.
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OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the
benefit terms.
OPEB plan assets are legally protected from the creditors of employers, nonemployer
contributing entities, the OPEB plan administrator, and the plan members.
The City does not offer OPEB plans to its employees. Therefore, this statement will have no financial
statement effect.
GASB Statement No. 76 – The Hierarchy of Generally Accepted Accounting Principles for State and
Local Governments. Effective date: the provisions in Statement 76 are effective for reporting periods
beginning after June 15, 2015. The objective of this Statement is to identify—in the context of the
current governmental financial reporting environment—the hierarchy of generally accepted
accounting principles (GAAP). The “GAAP hierarchy” consists of the sources of accounting
principles used to prepare financial statements of state and local governmental entities in conformity
with GAAP and the framework for selecting those principles. This Statement reduces the GAAP
hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and
nonauthoritative literature in the event that the accounting treatment for a transaction or other event is
not specified within a source of authoritative GAAP.
This Statement supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting
Principles for State and Local Governments. The requirements of this Statement are effective for
financial statements for periods beginning after June 15, 2015, and should be applied retroactively.
Management anticipates that this statement will not have a material impact on the City’s financial
statements.
GASB Statement No. 77 – Tax Abatement Disclosures. Effective date: the requirements of this
Statement are effective for reporting periods beginning after December 15, 2015. This Statement
requires governments that enter into tax abatement agreements to disclose the following information
about the agreements:
Brief descriptive information, such as the tax being abated, the authority under which tax
abatements are provided, eligibility criteria, the mechanism by which taxes are abated, provisions
for recapturing abated taxes, and the types of commitments made by tax abatement recipients
The gross dollar amount of taxes abated during the period
Commitments made by a government, other than to abate taxes, as part of a tax abatement
agreement.
Management anticipates that this statement will not have a material impact on the City’s financial
statements.
Q. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of the Local
Government of Example’s California Public Employees’ Retireme nt System (CalPERS) plans
(Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the
same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of
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employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value
NOTE 2 - CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments
of all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is
allocated to the funds based on average month-end cash and investment balances in these funds. The City
has the following cash and investments at June 30, 2015:
The City's Cash and Investments at June 30, 2015, in more detail:
A. Cash Deposits
The carrying amounts of the City's cash deposits were $451,909 at June 30, 2015. Bank balances before
reconciling items were $995,530 at that date due to deposits in transit and outstanding checks. The total
amount was collateralized or insured with securities held by the pledging financial institutions.
The California Government Code requires California banks and savings and loan associations to secure
the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in
this manner shall have the effect of perfecting a security interest, and places the City ahead of general
creditors of the institution.
The market value of pledged securities must equal at least 110 percent of the City's cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes
that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral
requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance
Corporation (FDIC). Other accounts are insured up to $250,000 per custodian within agency.
Statement of
Net Position
Governmental
Activities
Cash and investments 19,245,651$
Cash and cash equivalents:
Petty cash 1,450$
Demand deposits 528,498
Total Cash and Cash Equivalents 529,948
Investments:
Local Agency Investment Fund (LAIF)18,715,703
Total Cash and Investments 19,245,651$
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The City follows the practice of pooling cash and investments of all funds, except for funds required to be
held by fiscal agents under the provisions of bond indentures. Interest income from cash and investments
with fiscal agents is credited directly to the related fund.
B. Investments
Under the provisions of the City's investment policy, and in accordance with California Government
Code, the following investments are authorized:
Securities of the U.S. Government or its agencies.
Certificates of Deposit (or Time Deposits) placed with commercial banks and/or savings
and loan companies.
Negotiable Certificates of Deposit.
California Local Agency Investment Fund.
Investment-grade obligations of State, local governments or public authorities.
Money market mutual funds.
Passbook savings account and demand deposits.
The City is in compliance with GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investments Pools which requires the City's investments be recorded at fair
value instead of cost. Under GASB 31, the carrying value of investments are adjusted to reflect their fair
value at each fiscal year-end, with the effects of these adjustments included in the carrying value of the
investments.
C. External Investment Pool
The City's investments with LAIF at June 30, 2015, include a portion of the pool funds invested in
Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes - debt securities (other than asset-backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or
more indices and/or that have embedded forwards or options.
Asset-Backed Securities - the bulk of which are mortgage-backed securities, entitle their
purchasers to receive a share of the cash flows from a pool of assets such as principal and
interest repayments from a pool of mortgages (such as CMO's) or credit card receivables.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in
accordance with State statute. The approved investments policy is listed on the LAIF website, located at
http://www.treasurer.ca.gov/pmia-laif/
As of June 30, 2015, the City had $18,715,703 invested in LAIF. The LAIF fair value factor of
1.00037573 was used to calculate the fair value of the investments in LAIF.
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D. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to
changes in market interest rates. Although the City’s investment policy allows for a broad range of
investment instruments with varying terms of maturity, investments are limited to the Local Agency
Investment Fund (LAIF) which is managed by the State Treasurer Office and overseen by the Pooled
Money Investment Board, the State Treasurer investment committee, and a Local Agency Advisory
Board.
Included in LAIF’s investment portfolio are U.S. Treasuries, Federal Agency obligations, time deposits,
negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. Funds are
available for withdrawal on demand, and are recorded on an amortized cost basis. At June 30, 2015, these
investments had a weighted average maturity of 239 days. The City had the following invested in LAIF:
Credit Risk
As of June 30, 2015, the City's investments in external investment pools are unrated. The City only
invests in LAIF, therefore has no other policy relating to the credit risk of investments.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City did not hold any securities through investment counterparties at
the year ended June 30, 2015.
Investment
Maturities in Years
Fair Less Than
Value One Year
State of California - Local Agency Investment Fund (LAIF)18,715,703$ 18,715,703$
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
67
NOTE 3 - FUND FINANCIAL STATEMENTS INTERFUND TRANSACTIONS
Transfers In/Out
Transfers for the year ended June 30, 2015 were as follows:
The Capital Improvement Fund received monies from the General Fund adopted in the Budget in the
amount of $1,767,108. $730,000 was allocated for street, sidewalk, and storm drain repair, $443,445 for
trail improvements, $479,900 for various facility improvements, and $80,000 for various administrative
projects. $101,000 was transferred from projects that were closed during the fiscal year.
The Special Revenue Fund received monies of $1,000 from the Capital Improvement Fund to offset costs
associated with the creation of a new Landscape and Lighting District.
Transfer in Transfer out Amount
Special Revenue Capital Improvement Fund 1,000$
1,000
Capital Improvement Fund Capital Improvement Fund 101,010
General Fund 1,666,098
1,767,108
Total 1,768,108$
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
68
NOTE 4 - CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2015 is illustrated in the following table:
In accordance with GASB Statement No. 34, the City has reported all capital assets including
infrastructure in the Government-Wide Statement of Net Position. The City elected to use the "Modified
Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its pavement system.
As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A
more detailed discussion of the "Modified Approach" is presented in the Required Supplementary
Information section of this report. All other capital assets including other infrastructure systems were
reported using the Basic Approach whereby accumulated depreciation and depreciation expense have
been recorded.
Primary Government
Balance Balance
July 1, 2014 Additions Retirements Reclassifications June 30, 2015
Governmental activities:
Capital assets, not being depreciated:
Land and land improvements 14,585,401$ 300,000$ -$ -$ 14,885,401$
Construction in progress 8,524,764 1,806,039 (2,974,758) - 7,356,045
Infrastructure:
Street pavement system 49,155,619 2,464,219 - - 51,619,838
Total capital assets, not being depreciated 72,265,784 4,570,258 (2,974,758) - 73,861,284
Capital assets, being depreciated:
Buildings and structures 25,701,330 210,539 - - 25,911,869
Machinery and equipment
Governmental funds 1,648,074 35,343 (95,963) - 1,587,454
Internal service funds 941,366 51,195 - - 992,561
Infrastructure:
Bridges 1,563,654 - - - 1,563,654
Signs and lights 1,835,143 - - - 1,835,143
Drainage system 40,100,053 - - - 40,100,053
Sidewalks 12,372,322 - - - 12,372,322
Total capital assets, being depreciated 84,161,942 297,077 (95,963) - 84,363,056
Accumulated depreciation:
Buildings and structures (7,962,868) (696,481) - - (8,659,349)
Machinery and equipment
Governmental funds (1,132,039) (74,096) 95,963 - (1,110,172)
Internal service funds (741,528) (55,134) - - (796,662)
Infrastructure:
Bridges (1,076,417) (22,347) - - (1,098,763)
Signs and lights (1,057,525) (63,690) - - (1,121,215)
Drainage system (15,533,372) (802,001) - - (16,335,373)
Sidewalks (5,752,109) (326,157) - - (6,078,266)
Total accumulated depreciation (33,255,857) (2,039,906) 95,963 - (35,199,800)
Total capital assets, being depreciated, net 50,906,085 (1,742,828) - - 49,163,257
Governmental activities capital assets, net 123,171,869$ 2,827,430$ (2,974,758)$ -$ 123,024,541$
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
69
NOTE 5 – LONG-TERM OBLIGATIONS
A summary of the City's long-term obligations transactions for the year ended June 30, 2015, is presented
below:
General Obligation 2011 Library Bonds - Original Issue $11,995,000
On July 14, 2011, the City issued General Obligation Bonds Series 2011 in the amount of $11,995,000.
The bonds were issued to fully refund the General Obligation 2001 Library Bonds. The bonds are
payable from and secured by certain property taxes within the City. Interest on the bonds ranges from
2.0 percent to 4.0 percent and is payable on February 1 and August 1 of each year, commencing February
1, 2012. Principal is due annually beginning on August 1, 2012, in amounts ranging from $455,000 to
$790,000, with a final payment on August 1, 2031 of $820,000. The bonds maturing on or before August
1, 2021 are not subject to redemption prior to their respective stated maturity dates. Bonds maturing on or
after August 1, 2022 are subject to redemption prior to their respective stated maturity dates at the option
of the city at the principal amount of the bonds called for redemption, together with interest accrued
thereon to the date of redemption, without premium.
The annual debt service requirements on these bonds are as follows:
Compensated Absences
The City's liability for vested and unpaid compensated absences (accrued vacation and sick pay) has been
accrued and amounts to $624,500 at June 30, 2015. The compensated absences liability will generally be
liquidated through the General Fund.
Classification
Balance Balance Due Within Due In More
Description July 1, 2014 Additions Retirements June 30, 2015 One Year Than One Year
General Obligation Bonds:
2011 Library bonds 11,055,000 - (495,000) 10,560,000 500,000 10,060,000
Net original issue premium 394,062 - (21,892) 372,170 21,892 350,278
Compensated absences 671,537 - (47,037) 624,500 404,988 219,512
Total 12,120,599$ -$ (563,929)$ 11,556,670$ 926,880$ 10,629,790$
Year Ended Principal Interest Total
2016 500,000$ 383,335$ 883,335$
2017 475,000 371,210 846,210
2018 485,000 356,810 841,810
2019 500,000 339,535 839,535
2020 525,000 319,035 844,035
2021-2025 2,930,000 1,278,050 4,208,050
2026-2030 3,535,000 673,638 4,208,638
2031-2032 1,610,000 65,000 1,675,000
Total 10,560,000$ 3,786,613$ 14,346,613$
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
70
NOTE 6 - RISK MANAGEMENT
The City participates in the two following public entity risk pools:
ABAG Plan Corporation (ABAG PLAN) - covers general liability claims up to a limit of $5 million
and purchases an additional $15 million of excess insurance coverage, for a total of $20 million per
occurrence limit. The City has a deductible or uninsured liability of up to $25,000 per claim. Once the
City's deductible is met, ABAG PLAN becomes responsible for payment of all claims up to the limit.
During the fiscal year ended June 30, 2014, the City contributed $182,465 for current year coverage and
received no refund of prior year excess contributions.
ABAG Workers' Compensation Pool Insurance Authority (ABAG POOL) – covers workers'
compensation coverage up to $250,000 and excess coverage provides an employer liability limit of $5
million per occurrence, and workers’ compensation per occurrence limit to $100 million. The City has no
deductible for these claims. During the fiscal year ended June 30, 2015, the City contributed $139,776
for current year coverage. The City's contribution equals the ratio of the City's payroll to the total
payrolls of all entities participating in the same layer of each program, in each program year.
Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread
to member entities on a percentage basis after a retrospective rating.
There have been no significant reductions of insurance settlements that exceeded insurance coverage for
the past three years.
The workers’ compensation and general liability claims payable of $134,254 reported at June 30, 2015,
are based on the requirements of GASB Statement No. 10, which requires that a liability for claims be
reported if information prior to the issuance of the basic financial statements indicates that it is probable
that a liability has incurred at the date of the basic financial statements and the amount of the loss can be
reasonably estimated. Changes in the claims payable amounts were as follows:
The General Fund has been used in the prior years to liquidate the liability for claims and judgments.
Each risk pool is governed by a board consisting of representatives from member municipalities. The
board controls the operations of each risk pool, including selection of management and approval of
operating budgets, independent of any influence by member municipalities beyond their representation on
the Board.
Year Ended Year Ended
June 30, 2015 June 30, 2014
Claims payable, beginning of year 39,500$ 24,800$
Fiscal year claims and changes in estimates 134,254 14,700
Claims payments (39,500) -
Claims payable, end of year 134,254$ 39,500$
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
71
The following represents summary audited financial information of ABAG Plan Corporation and the
ABAG Workers’ Compensation Pool Insurance Authority for the fiscal year ended June 30, 2014 (most
recent available):
Audited financial information for each risk pool may be obtained from ABAG at P.O. Box 2089,
Oakland, California 94604-2089.
NOTE 7 - RETIREMENT PLANS
Defined Benefit Pension Plan
Plan Description – All CalPERS qualified employees are eligible to participate in the City’s
Miscellaneous Employee Pension Plan (the Plan), a cost-sharing multiple-employer defined benefit
pension plan administered by the California Public Employees’ Retirement System (CalPERS).
CalPERS act as a common investment and administrative agent for participating public entities within the
State of California. Benefit provisions and all other requirements are established by State statute and City
ordinance. CalPERS issues publicly available reports that include a full description of the pension plans
regarding benefit provisions, assumptions and membership information that can be found on the CalPERS
website or copies of these reports may be obtained from their Executive Office located at 400 P Street,
Sacramento, California 95811.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members with
five years of total service are eligible to retire at age 55. All members are eligible for non-duty disability
death benefits after 10 years of service. The death benefit is one of the following: the Basic Death
Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living
adjustments for the Plan are applied as specified by the Public Employee’s Retirement Law. The Plan’s
provisions and benefits in effect at June 30, 2015, are summarized as follows:
Plan Comp Shared
Corporation Risk Pool
Total Assets 43,297,653$ 4,392,425$
Total Liabilities 30,226,598 877,821
Net Position 13,071,055$ 3,514,604$
Total Revenues 7,805,136$ 844,159$
Total Expenses 1,177,087 511,694
Net Increase in Net Position 6,628,049$ 332,465$
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
72
The amounts reported in the Classic-Tier 2 and PEPRA accounting valuation reports were immaterial to
the City’s financial statements. Therefore, that information has not been included in this disclosure and
the components related to the net pension liability and pension expense from these tiers have not been
included in the financial statements.
Employees Covered – At June 30, 2015, the following employees were covered by the benefit terms for
the Plan:
Contributions – Section 20814(c) of California Public Employees’ Retirement Law requires that the
employer contribution rates for all public employers are determined on an annual basis by an actuary and
shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the
Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined
rate is the estimated amount necessary to finance the costs of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability. The City is required to
contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2015, the contributions recognized as part of pension expense for the Plan
were as follows:
New Employees
Tier 1 Tier 2 PEPRA
Hire date Before May 12, 2012 Hired on or after
May 12, 2012
Hired on or after
January 1, 2013
Benefit formula 2% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 Years 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life Monthly for Life
Retirement age 55 60 62
Monthly benefits as a % of eligible compensation 2.0% to 2.5%2.0%2.0%
Required employee contribution rates 8%7%6.50%
Required employer contribution rates 15.58%8.77%6.70%
Classic Employees
Miscellaneous
Inactive employees receiving benefits 92
Inactive employees entitiled to but not receiving benefits 96
Active members 55
Total 243
Miscellaneous
Contributions - employer $ 918,919
Contributions - employee 416,529
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
73
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2015, the City reported net pension liabilities for its proportionate sha re of the net pension
liability of the Plan as follows:
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension
liability. The net pension liability of the Plan is measured at June 30, 2014, and the total pension liability
for the plan used to calculate the net pension liability was determined by an actuarial valuation as of June
30, 2013 rolled forward to June 30, 2014 using standard update procedures. The City’s proportion of the
net pension liability was based on a projection of the City’s long-term share of the contributions to the
pension plan relative to the projected contributions of all participating employers, actuarially determined.
The City’s proportionate share of the net pension liability for the Plan as of June 30, 2013 and 2014 was
as follows:
For the year ended June 30, 2015, the City recognized a negative pension expense of (-$299,120). At
June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
The City reported $609,860 as deferred outflows of resources related to contributions subsequent to the
measurement date that will be recognized as a reduction of the net pension liability in the year ende d June
30, 2016.
Proportionate
Share of Net
Pension Liability
Miscellaneous $ 6,945,916
Total Net Pension Liability $ 6,945,916
Miscellaneous
Proportion - June 30, 2013 0.2896%
Proportion - June 30, 2014 0.2810%
Change -0.0086%
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
609,860$ -$
Adjustment due to Differences in Proportions 145,474 -
(51,955) 583,537
(2,334,150)
703,379$ (1,750,613)$
Pension contributions subsequent to measurement date
Amortization of differences in earnings and proportions
Net differences between projected and actual earnings
on plan investments
Total
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
74
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Actuarial Assumptions – The total pension liabilities in the June 30, 2013 actuarial valuations were
determined using the following actuarial assumptions:
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2013
valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to
2011. Further details of the Experience Study can be found on the CalPERS website.
Fiscal Year Ended June 30
Recognized to
Pension
Expense
2016 531,582$
2017 531,582
2018 531,582
2019 531,582
Total 2,126,328$
Miscellaneous
Valuation Date June 30, 2013
Measurement Date June 30, 2014
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 7.50%
Inflation 2.75%
Payroll Growth 3.00%
Projected Salary Increase 3.3% - 14.2% (1)
Investment Rate of Return 7.5% (2)
Mortality (3)
(3) Derived using CalPERS' membership data for all funds
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
75
Discount Rate – The discount rate used to measure the total pension liability was 7.50 percent for the
Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate
for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be
different from the actuarially assumed discount rate. Based on the testing, none of the tested plans ran out
of assets. Therefore, the current 7.50 percent discount rate is adequate and the use of the municipal bond
rate calculation is not necessary. The long term expected discount rate of 7.50 percent will be applied to
all plan in the Public Employees’ Retirement Fund (PERF). The stress test results are presented in the
detailed report that can be obtained from the CalPERS website.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without
reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in
this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be
15 basis points. An investment return excluding administrative expenses would have been 7.65 percent.
Using this lower discount rate has resulted in a slightly higher Total Pension Liability and Net Pension
Liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it
to be a material difference.
CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability
Management (ALM) review cycle that is scheduled to be completed in February 2018. Any changes to
the discount rate will require Board action and proper stake holder outreach. For these reason, CalPERS
expects to continue using a discount rate net of administrative expenses for GASB 67 and GASB 68
calculations through at least fiscal year 2017/2018. CalPERS wi ll continue to check the materiality of the
difference in calculation until such time as we have changed our methodology. The long-term expected
rate of return on pension plan investments was determined using a building -block method in which best-
estimate ranges of expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short -term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short -term
(first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the single equivalent expected return that arrived
at the same present value of benefits for cash flows as the one calculated using both short -term and long-
term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated
above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset
allocation. These rates of return are net of administrative expenses.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
76
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate –
The following presents the City’s proportionate share of the net pension liability for the Plan, calculated
using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-
percentage point higher than the current rate:
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net
position is available in the separately issued CalPERS financial reports.
New
Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (a)Years 11+ (b)
Global Equity 47.00%5.25%5.71%
Global Fixed Income 19.00%0.99%2.43%
Inflation Sensitive 6.00%0.45%3.36%
Private Equity 12.00%6.83%6.95%
Real Estate 11.00%4.50%5.13%
Infrastructure and Forestland 3.00%4.50%5.09%
Liquidity 2.00%-0.55%-1.05%
Total 100.00%
(b) An expected inflation of 3.0% used for this period.
(a) An expected inflation of 2.5% used for this period.
Miscellaneous
1% Decrease 6.50%
Net Pension Liability $ 12,375,475
Current Discount Rate 7.50%
Net Pension Liability $ 6,945,916
1% Increase 8.50%
Net Pension Liability $ 2,439,898
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
77
NOTE 8 - NET POSITION
A. Net Investment in Capital Assets
As of June 30, 2015, the net investment in capital assets consisted of the following:
B. Restricted Net Position
As of June 30, 2015, the restricted net position consisted of the following:
NOTE 9 - JOINT POWERS AGREEMENTS
The City is a member of several Joint Power Agreements, as follows:
The Santa Clara County Valley Transportation Authority (VTA) consists of various cities in the San
Francisco Bay area. The Transportation Authority was formed in 1985, by a joint exercise of powers
agreement between the County of Santa Clara and the cities of Santa Clara County for the purpose of
financing highway capital improvements within the County to serve transportation needs. Financial
statements may be obtained from the Traffic Authority at 1754 Technology Drive, Suite 224, San Jose,
California 95110.
The West Valley Solid Waste Management Joint Powers Authority consists of the west valley cities of
Campbell, Los Gatos, Monte Sereno, and Saratoga. The JPA was formed to coordinate efforts in carrying
out solid waste collection and disposal activities, and in meeting the mandates of AB939, the States’
Integrated Waste Management Act.
The Silicon Valley Regional Interoperability Authority (SVRIA) consists of Silicon Valley agencies
formed to coordinate the design and implementation of an interoperable public safety communication
system.
The Santa Clara County Library System JPA consists of various member agencies as a policy making and
governing body of the County’s library system.
These JPA's are governed by boards consisting of representatives from their members. The boards
control the operations of each JPA, including selection of management and approval of operating budgets,
independent of any influence by its members beyond their representation on the board.
Capital assets, net 123,024,541$
2011 general obligation library bonds (10,560,000)
Net original issue premium (372,170)
Net investment in capital assets 112,092,371$
Environmental Special Debt
Services Assessments Service Total
Restricted Net Position 363,182$ 867,642$ 906,600$ 2,137,424$
Restricted For
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
78
NOTE 10 - EXCESS EXPENDITURES OVER APPROPRIATIONS
There were no excess of expenditures over appropriations in individual funds during fiscal year 2014/15.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
A. Lawsuits
The City is presently involved in certain matters of litigation that have arisen in the normal course of
conducting City business. City management believes, based upon consultation with the City Attorney,
that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the
City. Additionally, City management believes that the City's insurance programs are sufficient to cover
any potential losses should an unfavorable outcome materialize.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's
independent accountants in accordance with the provisions of the Federal Single Audit Act Amendments
of 1996 and applicable State requirements. For Federal programs, the City reached the level of qualifying
cost during the current fiscal year so a single audit was required. Expenditures which may be disallowed,
if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if
any, to be immaterial.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
79
C. Commitments
The City had several outstanding contracts or planned construction projects as of June 30, 2015. These
projects are evidenced by contractual commitments with contractors and include:
In the opinion of City management, there were no additional outstanding matters that would have a
significant effect on the financial position of the funds of the City as of June 30, 2015.
Guerra Construction Group 1,203,867$ 418,964$
Mark Thomas & Company 397,462 97,023
Amland Corporation 315,200 24,400
Portico, Inc.300,000 95,512
Peele Technologies 252,160 57,894
George Bianchi Construction 230,500 181,880
Sanchez Electric, Inc.139,857 28,136
CXT, Inc.115,500 115,500
Placeworks, Inc.102,415 9,926
Dino Turchet Construction 44,480 44,480
BKF Engineers 35,395 9,018
Mike Brown Electric Co.32,159 32,159
Bartos Architecture, Inc 25,000 25,000
Joson Fence 23,547 23,547
Alta Planning + Design 22,156 22,156
David L. Gates & Associates 20,263 2,931
Peterson Tractor, Inc 18,973 15,002
Our City Forest 17,160 12,350
Tripepi, Smith & Associates 15,500 6,141
Budget Flooring, Inc.14,000 7,246
Heid, W. Jeffrey 9,570 1,715
Fehr Engineering 5,000 2,825
Labor Consultants 3,907 2,375
TJKM 3,845 3,845
Vista Landscaping 3,174 3,174
3,351,090$ 1,243,199$
Vendor
Original
Commitment
Commitment
Remaining
80
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81
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2015
82
NOTE 1 - BUDGETARY INFORMATION
The following is the budget comparison schedules for General Fund.
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes 9,763,750$ 10,223,750$ 10,436,622$ 212,872$
Special assessments - - - -
Sales taxes 1,085,000 1,085,000 1,224,427 139,427
Other local taxes 785,000 785,000 866,272 81,272
Licenses & permits 1,346,650 1,346,650 1,388,443 41,793
Fines & forfeitures 165,525 165,525 172,888 7,363
Intergovermental - state 389,000 389,000 523,991 134,991
Intergovermental - other 44,500 44,500 62,605 18,105
Franchise fees 1,942,000 1,942,000 2,069,479 127,479
Use of money & property 490,508 490,508 519,979 29,471
Other revenue 2,200,284 2,200,284 2,254,840 54,556
Total revenues 18,212,217 18,672,217 19,519,546 847,329
EXPENDITURES:
Current:
General and intergovernmental services 3,841,900 7,124,900 6,624,327 500,573
Public safety 4,886,102 4,886,602 4,859,379 27,223
Public works 5,060,067 5,102,067 4,948,539 153,528
Community services 1,500,778 1,506,278 1,328,083 178,195
Community development services 2,239,037 2,288,037 2,086,680 201,357
Capital outlay - - 35,343 (35,343)
Total expenditures 17,527,884 20,907,884 19,882,351 1,025,533
REVENUES OVER
(UNDER) EXPENDITURES 684,333 (2,235,667) (362,805) 1,872,862
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out (1,733,345) (1,733,345) (1,666,098) 67,247
Total other financing sources (uses)(1,733,345) (1,733,345) (1,666,098) 67,247
Net change in fund balances (1,049,012)$ (3,969,012)$ (2,028,903) 1,940,109$
FUND BALANCES:
Beginning of year 11,835,634
End of year 9,806,731$
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2015
83
Through the budget, the City Council sets the direction of the City, allocates its resources and establishes
its priorities. The Annual Operating and Capital Budgets assure the efficient and effective uses of the
City's economic resources, as well as establishing that the highest priority objectives are accomplished.
The annual budgets are adopted for the period of July 1 to June 30, and prepared to accurately and openly
communicate service and infrastructure priorities to the community, businesses, vendors, employees, and
other public agencies. The Annual Operating Budget is developed on a program basis for all funds with
fund level authority. It establishes the foundation of effective financial planning by providing resource
planning, performance measures and controls that permit the evaluation and adjustment of the City's
performance. The City adopts an annual budget for the capital projects as part of adopting the five-year
Capital Improvement Plan. The annual capital budget is adopted on a project-by-project basis.
The City follows these procedures in establishing the budgetary data reflected in the basic financial
statements:
a. The City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following July 1. The operating and capital budgets include proposed
expenditures and the means of financing them.
b. Public hearings are conducted to obtain taxpayer comments.
c. The budgets are legally enacted through the passage of a resolution.
d. For the Operating Budget, the City Manager may authorize transfers of budget amounts within a
fund. However, any revisions that increase the total budgeted expenditures of any fund must be
approved by the City Council. Expenditures may not legally exceed budgeted appropriations at
the fund level without City Council approval.
e. As Capital Projects are adopted on a project basis, the City Council must approve increases or
decreases of budgeted amounts or changes in project scope. Upon project completion, immaterial
amounts are transferred to ongoing maintenance projects within the capital program. If remaining
project funds are material, the project balance is brought back to Council for approval to transfer.
f. Formal budgetary integration in the form of legally adopted budgets is employed as a
management control device for all funds. Budgets are adopted on a basis consistent with
generally accepted accounting principles. Budgeted expenditures reported are as amended by
supplemental appropriations of the City Council.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the General, Special Revenue, Internal
Service, and Capital funds. Unexpended and unencumbered appropriations automatically lapse at the end
of the fiscal year.
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2015
84
NOTE 2 - MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL
ASSETS
In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure
capital assets. The City defines infrastructure as the basic physical assets that allow the City to function
and those resources utilized primarily by the public which provide future economic benefits for a
minimum of two years. Infrastructure can be defined as assets that are immovable and of value only to
the government. Major infrastructure includes the street system, park and recreation lands and
improvements; storm water conveyance and drainage systems, and buildings combined with site
amenities such as parking and landscaping areas used by the City in the conduct of its business. Each
major infrastructure system can be divided into subsystems. For example, the street system can be
divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, streetlights,
traffic control devices (signs, signals and pavement markings), landscaping and land. Subsystem detail is
not presented in these basic financial statements; however, the City maintains detailed information on
these subsystems.
The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for
infrastructure reporting for its Streets Pavement System. Under GASB Statement No. 34, eligible
infrastructure capital assets are not required to be depreciated under the following requirements:
The City manages the eligible infrastructure capital assets using an asset manageme nt system
with characteristics of (1) an up-to-date inventory; (2) perform condition assessments and
summarize the results using a measurement scale; and (3) estimate annual amount to maintain
and preserve at the established condition assessment level.
The City documents that the eligible infrastructure capital assets are being preserved
approximately at or above the established and disclosed condition assessment level.
The City commissioned a physical assessment of the streets conditions with the final report received
March 17, 2014. The study assists the City by providing current inspection data used to evaluate current
pavement condition. This helps to maintain a City-defined desirable level of pavement performance
while optimizing the expenditure of limited fiscal resources. The entire pavement network within the
City is composed of approximately 141.1 centerline miles of paved surfaces. The City’s road system can
be grouped by function class and includes 24.2 centerline miles of arterial, 23.2 centerline miles of
collector, and 93.7 miles as residential.
A visual survey of all pavement segments was conducted to assess the existing surface condition of each
of the individual pavement segments. Upon completion of the study, a Pavement Condition Inde x (PCI)
was calculated for each segment in the City's pavement network to reflect the overall pavement condition.
Rating between 0 and 100, a PCI of 0 would correspond to a badly deteriorated pavement with virtually
no remaining life. A PCI of 100 would correspond to a pavement with proper engineering design and
construction at the beginning of its life cycle. The assessment study was conducted during the fall of
2013.
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2015
85
The following conditions were defined:
The City's policy is to achieve an average rating of 70 for all streets, which is a very good rating. This
rating allows minor cracking and raveling of the pavement along with minor roughness that could be
noticeable to drivers traveling at the posted speeds. As of June 30, 2015, the City's street system was
rated at a PCI index of 69 on the average with the detail condition as follows:
The City expended $2,261,620 on street maintenance for the year ended June 30, 2015. These projects
include resurfacing, safety improvements, sidewalks, curbs and gutters, storm drain improvements,
beautification projects, and various other routine maintenance projects help to delay deterioration and
beautify the City’s roadway system. Council policy requires a minimum of $1,000,000 be budgeted for
the CIP Streets program on an annual basis. $10,801,888 is budgeted for various projects in the five-year
CIP for fiscal year 2014/15.
A schedule of estimated annual amount calculated to maintain and preserve its streets at the current level
compared to actual expenditures for street maintenance for the last ten years is presented below:
Condition Rating
Excellent 80 - 100
Very Good 70 - 79
Good 50 - 69
Poor 25 - 49
Very Poor 0 - 24
Percent of
Condition Streets
Excellent 0%
Very Good 58%
Good 23%
Poor 16%
Very Poor 3%
Funded By
Fiscal Actual Other Gas Tax Total PCI
Year Budget Expenditures Sources Fund Funded Index
2005/06 1,156,547 1,030,382 353,652 676,730 1,030,382 70
2006/07 2,026,404 1,156,889 19,899 970,818 990,717 70
2007/08 2,246,152 1,691,466 1,252,709 438,757 1,691,466 70
2008/09 2,680,504 1,574,485 1,148,650 425,835 1,574,485 70
2009/10 1,811,130 771,386 575,710 195,676 771,386 70
2010/11 4,770,782 1,847,221 1,449,686 397,535 1,847,221 76
2011/12 4,683,078 2,856,603 1,622,401 1,234,202 2,856,603 76
2012/13 4,826,265 2,417,444 1,660,028 757,416 2,417,444 76
2013/14 11,191,684 2,079,413 1,651,156 428,256 2,079,413 69
2014/15 10,799,852 2,261,620 1,275,681 985,939 2,261,620 69
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2015
86
As of June 2015, approximately 19 percent of the City's streets were rated below the average standard of
“Good.” The City will continue to rehabilitate these segments of the streets. Total deficiencies (deferred
maintenance) identified in the Pavement Management System Report at the end of a five-year period
(2014-2018) will amount to approximately $15,400,000 for all streets and are expected to be rehabilitated
with a minimum annual budget of $1,000,000.
NOTE 3 – PENSION INFORMATION
87
SUPPLEMENTARY INFORMATION
88
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89
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Lighting and Landscape Assessment District Funds – These funds account for revenues and
expenditures associated with maintaining the City’s 25 Landscape and Lighting districts which were
approved by consent of property owners living along or within the boundaries of the Districts.
Debt Service Fund
Library Bond - Santa Clara County general obligation bond tax revenues are accumulated in this fund to
pay annual principal and interest payments on the voter approved 2001 Library Improvement Bond.
CITY OF SARATOGA
COMBINING BALANCE SHEETS
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2015
90
Special
Revenue Debt Service
Lighting and Total
Landscaping Other
Assessment Library Governmental
District Bond Funds
ASSETS
Cash and investments 882,830$ 903,702$ 1,786,532$
Receivables:
Accounts 1,894 2,898 4,792
Interest - - -
Total assets 884,724$ 906,600$ 1,791,324$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 17,082$ -$ 17,082$
Total liabilities 17,082 - 17,082
Fund Balances:
Restricted:
Special revenue funds 867,642 - 867,642
Debt service - 906,600 906,600
Total fund balances 867,642 906,600 1,774,242
Total liabilities and fund balances 884,724$ 906,600$ 1,791,324$
CITY OF SARATOGA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
91
Special Debt
Revenue Service
Lighting and Total
Landscaping Other
Assessment Library Governmental
District Bond Funds
REVENUES:
Property taxes 232,659$ -$ 232,659$
Special assessment 323,031 897,241 1,220,272
Use of money and property 2,179 1,533 3,712
Other revenue 7,614 - 7,614
Total revenues 565,483 898,774 1,464,257
EXPENDITURES:
Current:
General and ingov't services
Public works 432,672 - 432,672
Debt service:
Principal - 495,000 495,000
Interest and fiscal charges - 394,960 394,960
Total expenditures 432,672 889,960 1,322,632
REVENUES OVER
(UNDER) EXPENDITURES 132,811 8,814 141,625
OTHER FINANCING SOURCES (USES):
Transfers in 1,000 - 1,000
Transfers out - - -
Total other financing sources (uses)1,000 - 1,000
Net change in fund balances 133,811 8,814 142,625
FUND BALANCES:
Beginning of year 733,831 897,786 1,631,617
End of year 867,642$ 906,600$ 1,774,242$
CITY OF SARATOGA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL IMPROVEMENT
FOR THE YEAR ENDED JUNE 30, 2015
92
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses & permits 165,000$ 165,000$ 224,189$ 59,189$
Fines & forfeitures - - 1,750 1,750
Intergovermental - federal 6,849,553 6,849,553 651,093 (6,198,460)
Intergovermental - state 864,140 930,263 1,014,299 84,036
Intergovermental - other 831,857 901,957 34,000 (867,957)
Use of money and property 35,000 35,000 33,580 (1,420)
Other revenue 333,617 485,138 326,080 (159,058)
Total revenues 9,079,167 9,366,911 2,284,991 (7,081,920)
EXPENDITURES:
Capital outlay 13,882,518 14,150,162 3,217,619 10,932,543
Total expenditures 13,882,518 14,150,162 3,217,619 10,932,543
REVENUES OVER
(UNDER) EXPENDITURES (4,803,351) (4,783,251) (932,628) 3,850,623
OTHER FINANCING SOURCES (USES):
Transfers in 1,843,445 1,831,741 1,767,108 (64,633)
Transfers out (90,000) (98,396) (102,010) (3,614)
Total other financing sources (uses)1,753,445 1,733,345 1,665,098 (68,247)
Net change in fund balances (3,049,906)$ (3,049,906)$ 732,470 3,782,376$
FUND BALANCES:
Beginning of year 3,126,307
End of year 3,858,777$
CITY OF SARATOGA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LIGHTING & LANDSCAPING ASSESSMENT DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2015
93
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes 199,565$ 199,565$ 232,659$ 33,094$
Special assessments 322,468 326,077 323,031 (3,046)
Use of money and property 1,734 1,734 2,179 445
Other revenue - - 7,614 7,614
Total revenues 523,767 527,376 565,483 38,107
EXPENDITURES:
Current:
Public works 606,905 611,514 432,672 178,842
Total expenditures 606,905 611,514 432,672 178,842
REVENUES OVER
(UNDER) EXPENDITURES (83,138) (84,138) 132,811 216,949
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out - - 1,000 1,000
Total other financing sources (uses)- - 1,000 1,000
Net change in fund balances (83,138)$ (84,138)$ 133,811 217,949$
FUND BALANCES:
Beginning of year 733,831
End of year 867,642$
CITY OF SARATOGA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LIBRARY BOND DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2015
94
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Special assessments 850,000$ 850,000$ 897,241$ 47,241$
Use of money and property 1,300 1,300 1,533 233
Total revenues 851,300 851,300 898,774 47,474
EXPENDITURES:
Debt service:
General and ingov't services - - - -
Principal 495,000 495,000 495,000 -
Interest and fiscal charges 394,985 394,985 394,960 25
Total expenditures 889,985 889,985 889,960 25
REVENUES OVER
(UNDER) EXPENDITURES (38,685) (38,685) 8,814 47,499
Net change in fund balances (38,685)$ (38,685)$ 8,814 47,499$
FUND BALANCES:
Beginning of year 897,786
End of year 906,600$
95
INTERNAL SERVICE FUNDS
Liability/Risk Management Insurance Fund – Accounts for insurance premiums, self-insurance portion
of claims, and administrative cost associated with settling claims. Charges made to operating departments
are based on liability risk and claim occurrence history.
Worker’s Compensation Self-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 Stores 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.
Information Technology Services Fund – Supports the delivery of technology based services and
infrastructure, including desktop support, network systems, technology upgrades and initiatives,
community systems, and associated information technology equipment.
Vehicle & Equipment Maintenance Fund – Accounts for the cost of operating and maintaining
automotive equipment used for service operations in various City departments.
Building Maintenance Fund – Accounts for operating costs associated with building maintenance.
Expenses include 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 program over the asset’s life span, reflective
of usage.
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.
CITY OF SARATOGA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2015
96
Liability /
Risk Workers'Office
Management Compensation Stores
ASSETS
Current assets:
Cash and investments 427,358$ 314,142$ 75,420$
Accounts receivable - 1,146 405
Total current assets 427,358 315,288 75,825
Noncurrent assets:
Capital assets:
Machinery and equipment - - -
Less: accumulated depreciation - - -
Total capital assets (net of
accumulated depreciation) - - -
Total assets 427,358 315,288 75,825
LIABILITIES
Liabilities:
Current liabilities:
Accounts payable 12$ -$ 750$
Accrued payroll 1,829 762 -
Claims payable 134,254 - -
Total current liabilities 136,095 762 750
NET POSITION
Investment in capital assets - - -
Unrestricted 291,263 314,526 75,075
Total net position 291,263$ 314,526$ 75,075$
97
Information
Information Vehicle Vehicle Technology
Technology and Equipment Building and Equipment Equipment
Services Maintenance Maintenance Replacement Replacement Total
270,427$ 120,242$ 304,964$ 649,498$ 204,032$ 2,366,083$
596 49 1,501 - - 3,697
271,023 120,291 306,465 649,498 204,032 2,369,780
- - - 882,095 110,465 992,560
- - - (700,354) (96,308) (796,662)
- - - 181,741 14,157 195,898
271,023 120,291 306,465 831,239 218,189 2,565,678
4,444$ 2,865$ 29,094$ -$ 9,931$ 47,096$
6,257 1,861 9,045 - - 19,754
- - - - - 134,254
10,701 4,726 38,139 - 9,931 201,104
- - - 181,741 14,157 195,898
260,322 115,565 268,326 649,498 194,101 2,168,676
260,322$ 115,565$ 268,326$ 831,239$ 208,258$ 2,364,574$
CITY OF SARATOGA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2015
98
Liability /
Risk Workers'Office
Management Compensation Stores
Operating revenues:
Charges for services 375,000$ 200,000$ 55,000$
Other operating revenues 24,482 17,567 13,183
Total operating revenues 399,482 217,567 68,183
Operating expenses:
Cost of services - - -
Administration 391,345 184,683 46,228
Depreciation - - -
Total operating expenses 391,345 184,683 46,228
Operating income 8,137 32,884 21,955
Transfers out - - -
Change in net position 8,137 32,884 21,955
Total net position - beginning 283,126 281,642 53,120
Total net position - ending 291,263$ 314,526$ 75,075$
99
Information
Information Vehicle Vehicle Technology
Technology and Equipment Building and Equipment Equipment
Services Maintenance Maintenance Replacement Replacement Total
425,000$ 300,000$ 875,000$ 200,000$ 65,000$ 2,495,000$
5,803 - 7,299 6,393 - 74,727
430,803 300,000 882,299 206,393 65,000 2,569,727
- 220,785 813,842 14,579 23,687 1,072,893
432,551 - - - - 1,054,807
- - - 51,089 4,045 55,134
432,551 220,785 813,842 65,668 27,732 2,182,834
(1,748) 79,215 68,457 140,725 37,268 386,893
- - - - - -
(1,748) 79,215 68,457 140,725 37,268 386,893
262,070 36,350 199,869 690,515 170,989 1,977,681
260,322$ 115,565$ 268,326$ 831,240$ 208,257$ 2,364,574$
CITY OF SARATOGA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2015
100
Liability /
Risk Workers'Office
Management Compensation Stores
Cash flows from operating activities:
Receipts from customers and users 390,734$ 213,095$ 65,054$
Payments to suppliers (260,096) (204,472) (39,260)
Payments to employees (60,996) (25,477) -
Net cash provided by operating activities 69,642 (16,854) 25,794
Cash flows from capital activities:
Acquisition of capital assets - - -
Net cash used for acquisition of capital assets - - -
Net increase (decrease) in cash and cash equivalents 69,642 (16,854) 25,794
Cash and cash equivalents, beginning of year 250,245 296,293 29,227
Cash and cash equivalents, ending of year 319,887$ 279,439$ 55,021$
Reconciliation of operating income to net cash provided
by operating activities:
Operating income (loss)53,067$ (12,078)$ 29,099$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation - - -
Change in operating assets and liabilities:
Accounts receivables 924 (4,337) 28
Accounts payable 434 (715) (3,333)
Claims payable 14,700 - -
Accrued payroll 517 276 -
Net cash provided (used) by operating activities 69,642$ (16,854)$ 25,794$
101
Information
Information Vehicle Vehicle Technology
Technology and Equipment Building and Equipment Equipment
Services Maintenance Maintenance Replacement Replacement Total
402,990$ 250,001$ 836,343$ 207,049$ 55,000$ 2,420,266$
(182,290) (138,410) (344,199) (10,508) (48,538) (1,227,773)
(236,841) (79,411) (479,716) - - (882,441)
(16,141) 32,180 12,428 196,541 6,462 310,052
- - - (129,138) (20,225) (149,363)
- - - (129,138) (20,225) (149,363)
(16,141) 32,180 12,428 67,403 (13,763) 160,689
291,578 15,046 223,831 442,089 168,368 1,716,677
275,437$ 47,226$ 236,259$ 509,492$ 154,605$ 1,877,366$
(19,214)$ 25,923$ 14,968$ 147,454$ 14,672$ 253,891$
- - - 48,474 2,023 50,497
(500) - 3,869 - - (16)
2,503 5,971 (8,603) 613 (10,233) (13,363)
- - - - - 14,700
1,070 286 2,194 - - 4,343
(16,141)$ 32,180$ 12,428$ 196,541$ 6,462$ 310,052$
102
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103
CAPITAL ASSETS
USED IN THE OPERATION OF GOVERNMENTAL FUNDS
104
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CITY OF SARATOGA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
COMPARATIVE SCHEDULE BY SOURCE
JUNE 30, 2015 AND 2014
105
2015 2014
Governmental Funds Capital Assets:
Land and land improvements 14,885,401$ 14,585,401$
Buildings and structures 25,911,869 25,701,330
Machinery and equipment 1,587,454 1,648,075
Infrastructure 107,491,010 105,026,791
Construction in progress 7,356,045 8,524,764
Total Governmental Funds Capital Assets 157,231,779 155,486,361
Accumulated depreciation (34,403,138) (32,514,261)
Total Governmental Funds Capital Assets, Net 122,828,641$ 122,972,100$
Investments in Governmental Funds
Capital Assets by Source:
General Fund 115,212,479$ 115,273,099$
Special revenue funds 960,970 960,972
Capital projects funds 40,210,981 38,404,942
Donations 847,348 847,348
Accumulated depreciation (34,403,138) (32,514,261)
Total Governmental Funds Capital Assets 122,828,641$ 122,972,100$
1 This schedule presents only the capital asset balances related to governmental funds. Accordingly
the capital assets reported in internal service funds are excluded from the above amounts.
Generally, the capital assets of internal service funds are included as governmental activities in the
statement of net position.
CITY OF SARATOGA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY1
JUNE 30, 2015
106
Land Buildings
and Land and
Improvements Structures
Function and Activity
General and intergovernmental services:
Management services -$ 564,632$
Administrative services - 521,073
Intergovernmental services 118,184 3,138,641
Total General and Intergovernmental Services:118,184 4,224,346
Public safety:
Police services - -
Code enforcement - -
Total Public Safety:- -
Public works:
Streets and sidewalks 835,154 62,921
Parks/open space 4,012,061 2,971,928
Total Public Works:4,847,215 3,034,849
Community services 8,177,538 4,337,775
Community development services 1,742,464 14,314,899
Total Governmental Funds Capital Assets 14,885,401 25,911,869
Accumulated depreciation - (8,659,349)
Total Governmental Funds Capital Assets, Net 14,885,401$ 17,252,520$
1 This schedule presents only the capital asset balances related to governmental funds. Accordingly
the capital assets reported in internal service funds are excluded form the above amounts.
Generally, the capital assets of internal service funds are included as governmental activities in the
statement of net position.
107
Machinery Construction
and in
Equipment Infrastructure Progress Total
553,507$ -$ 422,615$ 1,540,754$
140,332 - - 661,405
22,225 - - 3,279,050
716,064 - 422,615 5,481,209
15,434 - - 15,434
7,548 - - 7,548
22,982 - - 22,982
315,275 107,363,772 3,954,822 112,531,944
151,110 - 129,420 7,264,519
466,385 107,363,772 4,084,243 119,796,464
365,392 127,237 2,776,277 15,784,220
16,632 - 72,909 16,146,904
1,587,455 107,491,010 7,356,044 157,231,779
(1,110,172) (24,633,617) - (34,403,138)
477,283$ 82,857,393$ 7,356,044$ 122,828,641$
CITY OF SARATOGA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGE BY FUNCTION AND ACTIVITY
JUNE 30, 2015
108
Governmental Governmental
Funds Capital Funds Capital
Assets Assets
July 1, 2014 Additions Deletions June 30, 2015
Function and Activity
General and intergovernmental services:
Management services 1,490,888$ 49,867$ -$ 1,540,754$
Administrative services 661,405 - - 661,405
Intergovernmental services 3,279,050 - - 3,279,050
Total General and Intergovernmental Services:5,431,343 49,867 - 5,481,209
Public safety:
Police services 15,435 - - 15,435
Code enforcement 7,548 - - 7,548
Total Public Safety:22,983 - - 22,983
Public works:
Streets and sidewalks 111,470,443 1,122,530 (61,029) 112,531,944
Parks/open space 6,755,897 543,556 (34,934) 7,264,519
Total Public Works:118,226,340 1,666,086 (95,963) 119,796,463
Community services 15,658,790 125,429 - 15,784,219
Community development services 16,146,905 - - 16,146,905
Total Governmental Funds Capital Assets 155,486,361 1,841,382 (95,963) 157,231,779
Accumulated depreciation (32,514,329) (1,984,772) 95,963 (34,403,138)
Total Governmental Funds Capital Assets, Net 122,972,032$ (143,390)$ -$ 122,828,641$
1 This schedule presents only the capital asset balances related to governmental funds. Accordingly
the capital assets reported in internal service funds are excluded form the above amounts.
Generally, the capital assets of internal service funds are included as governmental activities in the
statement of net position.
109
STATISTICAL SECTION
110
This page is intentionally blank
111
This part of the City of Saratoga's comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the government's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how
the government's financial performance and well being have changed over time. 112-117
Revenue Capacity
These schedules contain information to help the reader assess the government’s
most significant local revenue source; property tax. 118-127
Debt Capacity
These schedules present information to help the reader assess the affordability
of the government's current levels of outstanding debt and the government's ability
to issue additional debt in the future. 128-134
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities
take place. 135-136
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the government's financial report relates to the services the
government provides and the activities it performs. 138-143
The City of Saratoga implemented GASB Statement No. 34 in fiscal year 2001/02; schedules presenting
government-wide information include information beginning in that year.
The City of Saratoga implemented GASB Statement No. 44 in fiscal year 2007/08; newly required
schedules presenting information in the Statistical Section include the earliest available information.
CITY OF SARATOGA
NET POSITION BY COMPONENT
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
112
(amounts expressed in thousands)
2006 2007 2008 2009
Primary government
Governmental activities
Net investment in capital assets 107,100$ 108,102$ 109,818$ 108,818$
Restricted 5,370 5,928 5,940 5,281
Unrestricted 9,955 8,593 9,710 8,759
Total primary government 122,425$ 122,623$ 125,468$ 122,858$
Source: CAFR
Fiscal Year
$-
$50,000
$100,000
$150,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net Position by Component
Net investment in capital assets Restricted Unrestricted
113
2010 2011 2012 2013 2014 2015
108,966$ 110,016$ 111,201$ 112,353$ 112,116$ 112,092$
5,519 5,830 1,938 1,971 2,045 2,138
8,533 7,964 12,248 13,357 15,095 6,691
123,018$ 123,810$ 125,387$ 127,681$ 129,256$ 120,921$
CITY OF SARATOGA
CHANGES IN NET POSITION
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
114
(amounts expressed in thousands)
2006 2007 2008 2009
Expenses:
Governmental activities:
General and intergovernmental services 3,473$ 4,532$ 6,293$ 5,595$
Public safety 3,427 3,844 4,166 4,211
Public works 4,752 6,425 5,325 7,643
Community services 1,395 1,437 1,286 1,634
Community development services 2,226 1,993 2,032 2,000
Interest on long-term debt (unallocated)754 768 714 697
Total governmental activities expenses 16,027 18,999 19,816 21,780
Program revenues:
Charges for services:
General and intergovernmental services 31 452 1,787 133
Public safety 122 - 411 520
Public works 1,890 528 1,705 2,379
Community services 1,008 604 911 935
Community development services 2,665 1,328 2,110 1,802
Operating grants and contributions 1,549 2,155 151 228
Capital grants and contributions 1,568 1,282 1,715 339
Total governmental activates program revenues 8,833 6,349 8,790 6,336
Net (expense) revenue and change in net assets (7,194) (12,650) (11,026) (15,444)
General revenue and other changes in net assets
Taxes:
Property taxes 5,652 5,772 8,099 8,336
Sales taxes 988 995 1,058 1,043
Local taxes 1,288 1,099 694 663
Franchise taxes 1,040 1,187 1,625 1,657
Motor vehicle in-lieu 718 177 149 116
Total Taxes 9,686 9,230 11,625 11,815
Intergovernmental - 673 841 474
Investment earnings 709 2,813 1,057 397
Other revenues 323 132 348 148
Total general revenues 10,718 12,848 13,871 12,834
Change in net position 3,524 198 2,845 (2,610)
Net position - beginning of year 118,901 122,425 122,623 125,468
GASB 68 adjustment - - - -
Net position - beginning of year, as adjusted 118,901 122,425 122,623 125,468
Net position - end of year 122,425$ 122,623$ 125,468$ 122,858$
Source: CAFR
Fiscal Year
115
2010 2011 2012 2013 2014 2015
3,729$ 4,368$ 3,486$ 4,143$ 4,522$ 7,566$
4,339 4,457 4,300 4,382 4,491 4,850
6,535 6,645 9,121 6,922 7,379 6,273
1,711 1,846 1,996 1,804 1,586 1,589
1,751 1,839 1,553 1,713 2,179 1,962
677 656 453 410 400 391
18,742 19,811 20,909 19,374 20,557 22,631
125 171 140 102 120 122
425 561 594 607 330 354
2,535 2,771 2,079 3,316 2,768 2,474
917 1,020 890 946 958 952
1,586 1,734 1,923 2,184 2,220 2,234
275 401 1,319 75 117 107
674 1,221 2,337 599 808 785
6,537 7,879 9,282 7,829 7,321 7,028
(12,205) (11,932) (11,627) (11,545) (13,236) (15,603)
8,371 8,199 8,457 9,153 9,737 10,669
955 991 1,101 1,051 941 1,224
560 632 683 769 822 866
1,664 1,821 1,852 1,920 1,949 2,070
101 146 16 16 14 13
11,651 11,789 12,109 12,909 13,463 14,842
522 773 910 766 981 1,023
101 65 67 51 62 67
91 97 118 113 305 237
12,365 12,724 13,204 13,839 14,811 16,169
160 792 1,577 2,294 1,575 566
122,858 123,018 123,810 125,387 127,681 129,256
- - - - - (8,901)
122,858 123,018 123,810 125,387 127,681 120,355
123,018$ 123,810$ 125,387$ 127,681$ 129,256$ 120,921$
CITY OF SARATOGA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
116
(amounts expressed in thousands)
2006 2007 2008 2009
General fund:
Restricted 910$ 711$ 679$ 613$
Committed - - - 550
Assigned 615 831 1,258 322
Unassigned 8,854 7,619 8,459 6,744
Total general fund 10,379$ 9,161$ 10,396$ 8,229$
All other governmental funds:
Restricted
Special revenue funds 919$ 844$ 318$ 484$
Debt service 865 746 854 931
Committed
Capital project funds 3,586 4,338 4,768 3,866
Total all other governmental funds 5,370$ 5,928$ 5,940$ 5,281$
Source: CAFR
Information prior to fiscal year 2011 have been updated to conform with GASB 54 requirements
Fiscal Year
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
General -
Restricted
General -
Committed
General -
Assigned
General -
Unassigned
Debt Service Special
Revenue
Capital
Projects
Fund Balances of Governmental Funds
2006
2007
2008
2009
2010
2011
2012
2012
2014
2015
117
2010 2011 2012 2013 2014 2015
563$ 513$ 513$ 463$ 413$ 363$
300 500 600 675 993 1,000
196 667 3,161 792 2,648 2,854
6,952 5,804 4,655 7,989 7,782 5,589
8,011$ 7,484$ 8,929$ 9,919$ 11,836$ 9,806$
569$ 504$ 563$ 622$ 734$ 868$
893 851 862 886 898 907
4,057 4,475 3,544 3,420 3,126 3,859
5,519$ 5,830$ 4,969$ 4,928$ 4,758$ 5,634$
CITY OF SARATOGA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
118
(amounts expressed in thousands)
2006 2007 2008 2009
Tax revenues:
Property taxes 5,652$ 5,772$ 8,099$ 8,336$
Special assessments 1,369 271 1,392 1,368
Sales taxes 988 995 1,058 1,043
Local taxes 1,288 1,099 694 663
Franchise taxes 1,040 1,187 1,625 1,657
Motor vehicle in-lieu 718 177 149 116
Total tax revenues 11,055$ 9,501$ 13,017$ 13,183$
Source: CAFR
Fiscal Year
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Property
taxes
Special
assessments
Sales taxes Local taxes Franchise
taxes
Motor
vehicle in-lieu
Tax Revenues by Source
2006
2007
2008
2009
2010
2011
2012
2012
2014
2015
119
2010 2011 2012 2013 2014 2015
8,371$ 8,199$ 8,457$ 9,153$ 9,737$ 10,669$
1,247 1,255 1,243 1,185 1,207 1,220
955 991 1,101 1,051 941 1,224
560 632 683 769 822 866
1,664 1,821 1,852 1,920 2,024 2,069
101 146 16 16 14 13
12,898$ 13,044$ 13,352$ 14,094$ 14,745$ 16,061$
CITY OF SARATOGA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
120
(amounts expressed in thousands)
2006 2007 2008 2009
Revenues:
Property taxes 5,652$ 4,758$ 7,877$ 8,335$
Special assessments 1,370 1,285 1,566 1,368
Sales taxes 987 995 1,058 1,043
Other local taxes 1,288 1,126 773 663
Licenses and permits 79 1,340 1,671 1,460
Fines and forfeitures 259 396 344 360
Intergovernmental - federal - - - -
Intergovernmental - state 2,660 3,631 1,641 1,283
Intergovernmental - other 976 629 777 290
Franchise fees 1,041 1,187 1,622 1,657
Use of money any property 752 2,813 924 794
Other revenues 1,719 151 326 1,966
Total tax revenues 19,498 19,211 22,763 19,219
Expenditures:
Current:
General and intergovernmental services 3,346 3,806 4,083 3,330
Public safety 3,423 3,824 4,166 4,206
Public works 3,501 5,714 4,717 4,700
Community services 1,210 1,381 1,262 1,424
Community development services 1,847 1,962 2,026 2,450
Capital outlay 2,908 2,130 4,246 4,060
Debt service:
Principal 270 280 295 310
Interest and fiscal charges 760 774 721 705
Total expenditures 17,265 19,871 21,515 21,185
Excess of revenues 2,233 (660) 1,247 (1,966)
Other financing sources (uses):
Transfers in 499 3,422 2,241 2,043
Transfers out (499) (3,422) (2,241) (2,043)
Total other financing sources (uses)- - - -
Net change in fund balances 2,233$ (660)$ 1,247$ (1,966)$
Debt as a percentage of noncapital expenditures 7.06%7.17%5.94%5.62%
Source: CAFR
Fiscal Year
CITY OF SARATOGA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
121
2010 2011 2012 2013 2014 2015
8,371$ 8,199$ 8,457$ 9,153$ 9,737$ 10,669$
1,247 1,255 1,243 1,185 1,207 1,220
954 991 1,101 1,051 941 1,224
560 632 683 769 823 866
1,489 1,950 1,728 2,177 2,023 1,613
359 285 234 199 196 175
430 1,033 1,915 975 796 651
1,258 1,480 1,728 1,142 1,410 1,538
258 337 73 269 129 97
1,664 1,821 1,852 1,920 1,949 2,070
595 550 589 527 521 557
1,794 2,169 2,199 2,421 2,547 2,589
18,979 20,702 21,802 21,788 22,279 23,269
3,102 3,524 3,145 3,269 3,247 6,624
4,349 4,467 4,310 4,392 4,491 4,860
4,730 4,717 4,751 4,966 5,243 5,381
1,223 1,322 1,269 1,318 1,383 1,328
2,111 2,193 1,888 2,047 2,182 2,087
2,584 3,704 5,179 3,979 3,096 3,253
330 350 370 455 485 495
685 665 551 414 405 395
19,114 20,942 21,463 20,840 20,532 24,423
(135) (240) 339 948 1,747 (1,154)
1,172 1,725 510 1,291 785 1,768
(1,017) (1,700) (485) (1,291) (785) (1,768)
155 25 245 - - -
20$ (215)$ 584$ 948$ 1,747$ (1,154)$
4.89%5.80%4.91%4.56%4.96%3.64%
CITY OF SARATOGA
PROPERTY TAX RATES – DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN YEARS
122
(Property Tax Rates per $100 of Assessed Value)
2006 2007 2008 2009
General 1.0000 1.0000 1.0000 1.0000
County Retirement Levy 0.0388 0.0388 0.0388 0.0388
County Library 0.0024 0.0024 0.0024 0.0024
City of Saratoga 0.0117 0.0096 0.0113 0.0104
1.0529 1.0508 1.0525 1.0516
Campbell School District 0.0512 0.0508 0.0475 0.0524
County Bond 2008 Hospital 0.0000 0.0000 0.0000 0.0000
Campbell Elementary 2002 0.0000 0.0000 0.0000 0.0000
Campbell Elementary 2010 0.0000 0.0000 0.0000 0.0000
Campbell Union High 1999 0.0224 0.0198 0.0285 0.0299
Campbell Union High 2006 0.0000 0.0000 0.0000 0.0000
Cupertino Elementary School District 0.0350 0.0289 0.0337 0.0306
Moreland Elementary School District 0.0561 0.0556 0.0569 0.0565
Saratoga School District 0.0356 0.0351 0.0363 0.0363
Campbell Union High School District 0.0224 0.0198 0.0285 0.0299
Fremont Union High School District 0.0260 0.0243 0.0241 0.0339
Los Gatos-Saratoga Joint Union High School District 0.0371 0.0651 0.0345 0.0330
Foothill-DeAnza Community College District 0.0119 0.0346 0.0113 0.0123
West Valley Community College District 2004 0.0140 0.0126 0.0118 0.0032
West Valley Community College District 2012 0.0000 0.0000 0.0000 0.0000
Mid Peninsula Open Space 2014 0.0000 0.0000 0.0000 0.0000
Saratoga Fire District 0.0052 0.0049 0.0053 0.0053
Santa Clara Valley Water District - State Water Project 0.0069 0.0070 0.0067 0.0059
Santa Clara Valley Water District - Zone W-1 0.0009 0.0002 0.0040 0.0002
0.3247 0.3587 0.3291 0.3294
Total Tax Rate 1.3776 1.4095 1.3816 1.3810
Source: Muniservices, LLC
Fiscal Year
123
2010 2011 2012 2013 2014 2015
1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
0.0388 0.0388 0.0388 0.0388 0.0388 0.0388
0.0024 0.0024 0.0024 0.0024 0.0024 0.0024
0.0094 0.0094 0.0088 0.0080 0.0074 0.0065
1.0506 1.0506 1.0500 1.0492 1.0486 1.0477
0.0285 0.0249 0.0283 0.0246 0.0264 0.0220
0.0122 0.0095 0.0047 0.0051 0.0035 0.0088
0.0267 0.0298 0.0266 0.0220 0.0288 0.0196
0.0000 0.0005 0.0003 0.0086 0.0000 0.0136
0.0183 0.0196 0.0186 0.0165 0.0134 0.0119
0.0131 0.0131 0.0156 0.0160 0.0156 0.0138
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0140 0.0139 0.0137 0.0139 0.0125 0.0118
0.0000 0.0000 0.0000 0.0150 0.0130 0.0114
0.0000 0.0000 0.0000 0.0000 0.0000 0.0008
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0071 0.0070 0.0063 0.0069 0.0070 0.0057
0.0003 0.0002 0.0001 0.0000 0.0000 0.0000
0.1202 0.1185 0.1142 0.1286 0.1202 0.1194
1.1708 1.1691 1.1642 1.1778 1.1688 1.1671
CITY OF SARATOGA
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN YEARS
124
(amounts expressed in thousands)
Fiscal
Year Total
Ended Residential Commercial Industrial Other Unsecured Assessed
June 30 Property Property Property Property Property Property
2006 7,883,965 177,149 8,921 161,496 46,874 8,278,405
2007 8,467,894 187,142 9,099 192,470 39,764 8,896,369
2008 9,025,628 208,369 9,281 210,269 35,775 9,489,322
2009 9,605,309 213,951 9,467 223,190 43,933 10,095,850
2010 9,724,687 120,769 9,656 327,898 58,210 10,241,220
2011 9,639,782 107,269 9,633 323,881 57,172 10,137,737
2012 9,834,082 111,232 9,706 323,563 55,535 10,334,118
2013 10,312,597 112,875 11,455 335,765 62,378 10,835,070
2014 11,158,775 113,915 11,684 352,830 59,684 11,696,888
2015 11,775,973 117,466 11,737 361,202 56,354 12,322,732
Source:Santa Clara County Assessor data, MuniServices, LLC
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total Assessed Property
Unsecured
Other
Industrial
Commercial
Residential
125
Total
Less:Total Taxable Direct
Tax Exempt Assessed Tax
Real Property Value Rate
(133,951) 8,144,454 1.0529
(140,859) 8,755,510 1.0508
(159,369) 9,329,953 1.0525
(161,488) 9,934,362 1.0516
(230,127) 10,011,093 1.0506
(230,477) 9,907,260 1.0506
(230,868) 10,103,250 1.0476
(233,895) 10,601,175 1.0492
(238,683) 11,458,205 1.0486
(242,724) 12,080,008 1.0477
CITY OF SARATOGA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
JUNE 30, 2014
126
(amounts expressed in thousands)
% of Total % of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
SHP Saratoga II LLC 57,554$ 1 0.48%0.00%
San Jose Water Works 20,573 2 0.17%10,778 5 0.13%
Keller Trustee 14,541 3 0.12%0.00%
Stormin Norman LLC 12,657 4 0.10%
HJJ LLC 13,267 5 0.11%0.00%
Argonaut Associates, LLV 11,041 6 0.09%9,710 7 0.12%
Public Storage Inc 9,893 7 0.08%8,700 10
Krishnamurthi Trustee 9,454 8 0.08%9,644 8
David J. & Terri E. Morrison 9,184 9 0.08%6,810
Jain Trustee 8,223 10 0.07%7,231 0.09%
Saratoga Office Center Partnres 19,850 1 0.25%
Quito Village Group LLC 16,973 2 0.21%
Gregpenn Properties 14,280 3 0.18%
Sobrato Trustee 14,172 4 0.18%
Coyote Properties LLC 10,198 6 0.13%
Top Ten Total Assessed Value 166,387$ 128,346$
City Total Assessed Value 12,080,008$ 8,087,313$
2015 2006
CITY OF SARATOGA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS
127
Fiscal Year Total Tax Collections in
Ended Levy for Subsequent
June 30 Fiscal Year Amount Percentage Years Amount Percentage
2006 5,243,038$ 5,243,038$ 100.0%-$ 5,243,038$ 100.0%
2007 6,032,558 6,032,558 100.0%- 6,032,558 100.0%
2008 8,108,364 8,108,364 100.0%- 8,108,364 100.0%
2009 8,332,184 8,332,184 100.0%- 8,332,184 100.0%
2010 8,371,396 8,371,396 100.0%- 8,371,396 100.0%
2011 8,199,341 8,199,341 100.0%- 8,199,341 100.0%
2012 8,456,687 8,456,687 100.0%- 8,456,687 100.0%
2013 9,152,865 9,152,865 100.0%- 9,152,865 100.0%
2014 9,737,144 9,737,144 100.0%- 9,737,144 100.0%
2015 10,669,281 10,669,281 100.0%- 10,669,281 100.0%
Source: City of Saratoga
Collected within the
Fiscal Year of the Levy Total Collections to Date
CITY OF SARATOGA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN YEARS
128
(amounts expressed in thousands, except per capita amounts)
2006 2007 2008 2009
Governmental activities
General obligation bonds 14,170$ 13,890$ 13,595$ 13,285$
Net original issue premium - - - -
Total primary government 14,170$ 13,890$ 13,595$ 13,285$
Percentage of Personal Income 1 0.82%0.75%0.74%0.76%
Per capita2 460 443 430 419
Source: CAFR
1US Census Bureau, adjusted for inflation, MuniServices LLC
2Population information from California State Controller's Office
Fiscal Year
129
2010 2011 2012 2013 2014 2015
12,955$ 12,605$ 11,995$ 11,540$ 11,055$ 10,560$
- - 438 416 394 372
12,955$ 12,605$ 12,433$ 11,956$ 11,449$ 10,932$
0.54%0.57%0.57%0.53%0.49%0.47%
405 417 409 389 371 355
CITY OF SARATOGA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN YEARS
130
(amounts expressed in thousands, except per capita amounts)
2006 2007 2008 2009
General obligation bonds 14,170$ 13,890$ 13,595$ 13,285$
Net original issue premium - - - -
Less: Amount available in debt service fund (865) (747) (854) (926)
Total primary government 13,305$ 13,143$ 12,741$ 12,359$
Percentage of actual taxable
value of property 0.16%0.15%0.14%0.12%
Per capita 1 431 419 403 390
Source: CAFR
1Population information from California State Controller's Office
Fiscal Year
131
2010 2011 2012 2013 2014 2015
12,955$ 12,605$ 11,995$ 11,540$ 11,055$ 10,560$
- - 438 416 394 372
(890) (848) (860) (885) (898) (906)
12,065$ 11,757$ 11,135$ 10,655$ 10,157$ 9,654$
0.12%0.12%0.11%0.10%0.09%0.08%
377 389 367 347 329 313
CITY OF SARATOGA
LEGAL DEBT MARGIN INFORMATION
LAST TEN YEARS
132
(amounts expressed in thousands)
2006 2007 2008 2009
Debt Limit 1,241,761$ 1,334,455$ 1,423,398$ 1,514,378$
Total net debt applicable to limit 13,305 13,143 12,741 12,359
Legal debt margin 1,228,456$ 1,321,312$ 1,410,657$ 1,502,019$
Total net debt applicable to the limit
as a percentage of debt limit 1.07%0.98%0.90%0.82%
Legal debt margin calculation
Assessed value 8,144,454$ 8,755,510$ 9,329,953$ 9,934,362$
Add back: exempt real property 133,951 140,859 159,369 161,488
Total assessed value 8,278,405$ 8,896,369$ 9,489,322$ 10,095,850$
Debt limit (15% of total assessed value)1,241,761$ 1,334,455$ 1,423,398$ 1,514,378$
Debt applicable to limit:
General obligation bonds 14,170$ 13,890$ 13,595$ 13,285$
Net original issue premium - - - -
Less: Amount available in debt service fund (865) (747) (854) (926)
Total net debt applicable to limit 13,305$ 13,143$ 12,741$ 12,359$
Legal debt margin 1,228,456$ 1,321,312$ 1,410,657$ 1,502,019$
Source: CAFR
Fiscal Year
133
2010 2011 2012 2013 2014 2015
1,536,183$ 1,520,660$ 1,550,118$ 1,625,261$ 1,754,233$ 1,848,410$
12,065 11,757 11,135 10,655 10,157 9,654
1,524,118$ 1,508,903$ 1,538,983$ 1,614,606$ 1,744,076$ 1,838,756$
0.79%0.77%0.72%0.66%0.58%0.52%
10,011,093$ 9,907,259$ 10,103,250$ 10,601,175$ 11,458,205$ 12,080,008$
230,127 230,477 230,868 233,895 236,683 242,724
10,241,220$ 10,137,736$ 10,334,118$ 10,835,070$ 11,694,888$ 12,322,732$
1,536,183$ 1,520,660$ 1,550,118$ 1,625,261$ 1,754,233$ 1,848,410$
12,955$ 12,605$ 11,995$ 11,540$ 11,055$ 10,560$
- - 438 416 394 372
(890) (848) (860) (885) (898) (906)
12,065$ 11,757$ 11,135$ 10,655$ 10,157$ 9,654$
1,524,118$ 1,508,903$ 1,538,983$ 1,614,606$ 1,744,076$ 1,838,756$
CITY OF SARATOGA
DIRECT AND OVERLAPPING
GOVERNMENTAL ACTIVITIES DEBT
134
(amount expressed in thousands)
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable1 Debt
Direct Debt:
City of Saratoga 10,560$ 100.000%10,560$
Total Direct Debt 10,560
Overlapping Tax and Assessment Debt:
Santa Clara County 799,180 3.398%27,156
Foothill-De Anza Community College District 596,734 1.622%9,679
West Valley Community College District 424,754 10.085%42,836
Campbell Union High School District 146,910 5.576%8,192
Fremont Union High School District 378,045 3.587%13,560
Los Gatos-Saratoga Joint Union High School District 79,245 39.176%31,045
Campbell Union School District 170,131 6.779%11,533
Cupertino Union School District 249,418 5.984%14,925
Moreland School District 108,809 13.027%14,175
Saratoga Union School District 37,170 86.195%32,039
Saratoga Fire Protection District 3,519 97.443%3,429
Santa Clara Valley Water District Benefit Assessment 106,690 3.398%3,625
Total Overlapping Tax and Assessment Debt 212,194
Overlapping General Fund Debt:
Santa Clara County General Fund Obligations 707,614$ 3.398%24,045$
Santa Clara County Pension Obligations 371,444 3.398%12,622
Santa Clara County Board of Education
Certificates of Participation 9,030 3.398%307
Santa Clara County Vector Control District
Certificates of Participation 3,085 3.398%105
Foothill-De Anza Community College District
Certificates of Participation 11,617 1.622%188
West Valley-Mission College District
General Fund Obligations 64,660 10.085%6,521
Campbell Union High School District
Certificates of Participation 8,953 5.576%499
Los Gatos-Saratoga Joint Union High School District
Certificates of Participation 6,995 39.176%2,740
Campbell Union High School District
Certificates of Participation 3,425 6.779%232
Saratoga Union School District
Certificates of Participation 4,925 86.195%4,245
Midpeninsula Open Space Park District
General Fund Obligations 127,087 5.909%7,510
Total Overlapping General Fund Debt 59,014
Total Overlapping Tax & Assessement and General Fund Debt 271,208
Combined Total Debt2 281,768$
1Percentage of overlapping agency's assessed valuation located within boundaries of the city.
2Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation
bonds and non-bonded capital lease obligations.
Source: Muniservices, LLC
CITY OF SARATOGA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN YEARS
135
Personal Per Capita
Fiscal City Income Personal Labor Unemployment
Year Population1 (in thousands)2 Income2 Force3 Rate3
2006 30,835 1,719,175 55,754 12,700 2.1%
2007 31,352 1,860,365 59,338 12,900 2.3%
2008 31,592 1,843,425 58,351 13,100 3.2%
2009 31,679 1,747,699 55,169 13,300 6.0%
2010 31,997 2,401,151 75,043 13,200 5.6%
2011 30,195 2,211,963 73,256 13,400 5.0%
2012 30,363 2,119,463 69,804 14,000 4.4%
2013 30,706 2,179,904 70,993 13,900 4.2%
2014 30,887 2,243,458 72,634 14,200 3.4%
2015 30,799 2,248,481 73,005 15,100 0.0%
Source:1Popluaton information from California State Controller's Office
2US Census Data, adjusted for inflation, MuniServices LLC
3EDD Labor Market Information Division, MuniServices LLC
10,000
15,000
20,000
25,000
30,000
35,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Labor Force vs. Population
Population
Labor Force
CITY OF SARATOGA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO AT JUNE 30, 2014
136
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
West Valley Community College 408 1 2.70%-
Saratoga Retirement Community 275 2 1.82%-
Saratoga Union School District 240 3 1.59%-
Mountain Winery 214 4 1.42%-
Sub-Acute Saratoga Hospital 140 5 0.93%-
YMCA 133 6 0.88%-
Saratoga High School 124 7 0.82%-
Our Lady Fatima Villa 108 8 0.72%-
Prospect High School 101 9 0.67%-
Safeway 83 10 0.55%65 2 0.51%
Gene's Fine Foods 85 1 0.67%
Saratoga Country Club 65 3 0.51%
24 Hour Fitness 30 4 0.24%
Windermere 27 5 0.21%
Longs Drugs 20 6 0.16%
Classic Car Wash 20 7 0.16%
Harmonie European Day Spa 20 8 0.16%
Hinshaw, Draa & Marsh 20 9 0.16%
Bella Saratoga 20 10 0.16%
Total City Employment1 15,100 12,700
1EDD Labor Market Information Division, MuniServices LLC
2015 20061
137
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CITY OF SARATOGA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST NINE FISCAL YEARS
138
2006 2007 2008 2009
Function
General government 10.75 11.00 13.00 12.00
Public works 20.75 21.75 22.75 21.75
Community development 13.00 14.00 14.00 14.00
Parks and recreation 10.35 10.60 10.60 10.60
Total 54.85 57.35 60.35 58.35
Source: City of Saratoga Budget Document
Fiscal Year
-
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Full-Time Equivalents
Parks & Rec
Comm Development
Public works
General gov't
139
2010 2011 2012 2013 2014 2015
11.75 11.45 10.80 10.90 13.65 13.70
21.75 21.65 21.55 20.65 20.75 20.65
12.00 12.00 12.00 11.00 12.00 12.00
9.35 9.50 9.50 9.60 9.60 9.55
54.85 54.60 53.85 52.15 56.00 55.90
CITY OF SARATOGA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
140
2006 2007 2008 2009
Function
Part 1 crimes1 426 425 381 282
Total incidents 40,567 39,663 41,243 41,384
Police reports 1,659 1,767 1,941 1,949
Public Works
Street resurfacing (miles)5 14 - 6
Street lights repaired 3 3 12 25
Potholes filled (sq. ft.)5,000 5,000 7,000 10,000
Community Development
Total permit valuation ($000)94,485 69,935 70,442 61,117
Parks and Recreation
Classes, trips (enrollment) community events 5,712 4,817 4,782 4,698
Adult Exercise (e.g. JS Dance. Jazzerxcise)312 285 362 515
Sports programs (e.g. Adult basketball, softball)473 515 591 459
Preschool programs (enrollment)163 159 225 171
Staffed Day/summer camps (enrollment)287 205 242 225
Teen/youth council (enrollment)3,798 2,221 94 419
Senior center (enrollment/attendance days)22,591 18,515 17,826 16,325
1Part 1 Crimes are the following as reported to DOJ: homicide, rape, robbery, burglary, assault, theft,
auto theft, and arson.
Source: City of Saratoga various records
Fiscal Year
141
2010 2011 2012 2013 2014 2015
173 373 287 277 408 315
39,942 41,642 35,664 40,141 41,228 40,695
1,273 1,549 1,329 1,106 978 917
3 - 6 6.2 4.3 2.5
24 25 41 29 34 39
10,000 11,000 10,000 12,060 11,000 10,500
44,658 50,936 59,675 79,896 79,702 89,929
4,366 6,135 5,479 5,365 6,235 8,390
545 661 647 1,663 2,173 1,650
423 - - - - -
161 142 132 188 274 186
331 326 - 45 160 90
2,110 1,323 787 605 673 747
16,533 14,640 15,221 12,269 12,941 10,786
CITY OF SARATOGA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
142
2006 2007 2008 2009
Function
Public safety
Police Station 1 - - -
Fire Station
Saratoga Fire District 1 1 1 1
Central Fire District 1 1 1 1
Public Works
Street Miles - Private 13 13 13 14
Street Miles - Public 137 137 137 140
West Valley Sanitation District
Number of Connections 8,621 8,651 8,651 8,683
Length of Sewer Lines 120 127 127 127
Cupertino Valley Sanitation District
Number of Connections 2,118 2,915 2,927 2,938
Length of Sewer Lines 36 36 36 37
Parks and Recreation
Parks Acreage 81 81 81 84
Parks 15 15 15 15
Source: City of Saratoga various records
Fiscal Year
143
2010 2011 2012 2013 2014 2015
- - - - - -
1 1 1 1 1 1
1 1 1 1 1 1
14 14 14 14 14.5 14.5
140 140 140 141 142 142
8,687 8,664 8,679 8,821 8,919 8,402
127 127 127 127 127 128
2,949 2,954 2,959 2,961 2,963 2,963
37 37 37 37 37 37
84 84 84 84 84 84
15 15 15 15 15 15