Loading...
HomeMy WebLinkAboutACFR - Fiscal Year 1999 00 (PDF)- CITY OF SARATOGA California r Comprehensive Annual Financial Report - June 30, 2000 CITY OF SARATOGA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEARS ENDED JUNE 30, 2000 AND 1999 Prepared By: ADMINISTRATIVE SERVICES DEPARTMENT o� CITY OF SARATOGA Comprehensive Annual Financial Report For the Years Ended .Tune 30, 2000 and 1999 Table of Contents Page INTRODUCTORY SECTION _ Table of Contents......................................................................................................................................... i Letter of Transmittal................................................................... ........................ ........................................ v Elected Officials and Administrative Personnel.....................................................................................xiii OrganizationChart ...................................................................................................................................xiv GFOA Certificate of Achievement........................................................................................................... xv _ FINANCIAL SECTION IndependentAuditors' Report................................................................................................................... 1 General Purpose Financial Statements Combined Balance Sheets - All Fund Types and Account Groups ................................................... 4 Combined Statements of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types........................................................................... i Combined Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - (Non-GAAP Legal Basis) All Governmental Fund Types........................................................................................................... 8 Notes to General Purpose Financial Statements............................................................................... 10 Co►nbining Financial Statements and Schedules General Fund: _ Comparative Balance Sheets....................................................................................................... 26 Comparative Schedules of Revenues, Expenditures and Changes in Fund Balances - (Non-GAAP Legal Basis) Budget and Actual ........................................... .1 Special Revenue Funds: Combining Balance Sheets.........................................................................................................: 0 Combining Statements of Revenues, Expenditures and Changes in Fund Balances................................................................................................... - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual................................................................ . -I 0 CITY OF SARATOGA — Comprehensive Annual Financial Report For the Years Ended June 30, 2000 and 1999 Table of Contents Page Capital Projects Funds: BalanceSheets............................................................. ................................................................ 40 Statements of Revenues, Expenditures and Changes in Fund Balances.................................................................................................. 41 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual................................................................ 42 Debt Service Funds: BalanceSheet............................................................................... . ..................................... 45 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual................................................................ 46 Agency Funds: _ Combining Statement of Changes in Assets and Liabilities...................................................... 4S General Fixed Assets Account Group: — Comparative Schedules of General Fixed Assets - By Source .................................................. 50 Schedule of Changes in General Fixed Assets - By Source ....................................................... 51 — Schedule of General Fixed Assets - By Function....................................................................... 52 STATISTICAL SECTION General Fund Revenues by Source - Last Ten Fiscal Years........................................................... 53 General Fund Expenditures by Function - Last'Ten Fiscal Years ................................................... 54 Property Tax Levies and Collections - Last Ten Fiscal Years......................................................... 55 General Fund Tax Revenue - Last Ten Fiscal Years........................................................................ 56 Assessed and Estimated Market Value of Taxable Property LastTen Fiscal Years................................................................................................................I...... 57 Property Tax Rates - All Overlapping Governments - Last Ten - FiscalYears............................................................ ...................................................... --- .............. 5b Special Assessment Billings and Collections - Last Ten Fiscal Years ............................................ 59 T CITY OF SARATOGA Comprehensive Annual Financial Report For the Years Ended June 30, 2000 and 1999 Table of Contents Page STATISTICAL SECTION (Continued) Ratio of General Obligation Bonded Debt to Assessed Value and Bonded Debt Per Capita - Last Ten Fiscal Years.......................................................................................... 60 Ratio of Annual Debt Service Expenditures for General Bonded Debt to General Fund Expenditures - Last Ten Fiscal Years....................................................................... 61 Demographic Statistics - Last Ten Fiscal Years............................................................................... 62 Property Values, Remodeling, Construction and Bank Deposits - Last'Fen Fiscal Years....................................................................................................................... 63 Computationof Legal Debt Margin.................................................................................................. 64 Computation of Direct and Overlapping Debt.................................................................................. 65 Principal 'Taxpayers ............................... Miscellaneous Statistics......................................................................................... ........................ 67 U o, m OTZW @9 O&iaZUCO�OdA� 13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 • (408) 868-1200 Incorporated OctDber 22, 1956 November 7, 2000 COUNCIL. MEMBERS): Evan Raker Stan Bogosran John Mehaftey McA Stfelt Ann Waltonsmirh To the Honorable ]Mayor, members of the City Council and Citizens of the City of Saratoga: The Comprehensive Annual Financial Report (CAFR) of the City of Saratoga for the year ended June 30, 2000, is hereby submitted as mandated by applicable statutes. These statutes require that the City of Saratoga annually issue a report on its financial position and activity, and that this report be audited by an ~independent firm of certified public accountants. Responsibilities for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City's management. The enclosed data are accurate in all material respects and are reported in a mariner that presents fairly the financial position and results of operations of the various funds, account groups and component units of the City of Saratoga. All disclosures necessary to enablle the reader to gain an understanding of the City of Saratoga's activities have been included. The CAFR is presented in three sections: introductory, financial and statistical. The introductory section, which is unaudited, includes this letter of transmittal, a list of the City of Saratoga's elected officials and administrative personnel, an organization chart and certificate of award for financial W reporting. The financial section includes the independent auditor's report on the financial statements and schedules, general purpose financial statements (combined statements), notes to the financial statements, and combining and account group financial statements and schedules. The statistical section, which is unaudited, includes selected financial and demographic information, generally presented on a multi -year basis. The financial reporting entity (the City) includes all the funds and account groups 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. Blended component units, although legally separate entities, are, in substance, part of the City's operations and are included as part of the City. Accordingly, the operations of the Landscaping and Lighting Assessment District #1 and the agency cash flows and cash balances of the Saratoga Public Finance Authority are reported in the City's financial statements. ,inted on recycled paper (Governmental Structure and Related Information r The 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 contains a population of 31,320 as reported by the California Department of Finance. The City is a general law city of the State of California and operates under a council-manager form of government. Policy making and legislative authority are vested in the City Council, which consists of a Mayor, Vice Mayor and three additional council members. City Council members are elected at -large for staggered four-year tern -is. 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. y The City supports privatization and has supplemented its work force through numerous contracts with others. Contracted services include, but are not limited to, public safety, infrastructure T 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 all act in an advisory capacity to the City Council, and are comprised of the Finance Commission, Heritage Preservation Commission, Library Commission, Parks and Recreation Commission, Planning Commission, Public Safety Commission, and Youth Commission. Economic Conditions and Outlook Within a 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 occurring within the City's -- boundaries. Due to the community's residential character, the main measure of the City's economic condition is -- based on service charges and, to a lesser extent, sales activity. Service charges from development activity have been brisk for the last several years. Sales taxes received primarily from restaurants, retailers and food markets serving the local citizenry have kept pace with the region's economic — growth. This is partially due to the renovation of one of the major retail outlets in the City, in which two of the City's top five sales producers are located. The region's strong economy has continued to fuel a surging real estate market that has seen vi assessed valuations of real property in the City increase by nearly 9% from 1999 to 2000. This has resulted in corresponding increases in property tax apportionments to the City that account for the largest single source of revenue to the City's General Fund. In fiscal year 1999-00 for example, property tax receipts exceeded projections by about $100,000. Similarly, Motor Vehicle License Fees remitted to the City by the State and interest earnings on the City's investment portfolio each surpassed budgeted amounts by more than $200,000. These factors, coupled with the fiscal and organizational reforms enacted by the City in I997 to deal with the loss of the City's. Utility Users Tax and related revenues, have placed the City in a healthy fiscal condition as of the end of fiscal year 1999-00. — Each year, the City prepares a financial forecast that projects revenues and expenditures through the next five fiscal years. This is done to facilitate the City's budget development process and cash management activities. Additionally however, the forecast is used to identify opportunities as well as potential problems in advance of their occurrence so the City can adjust proactively. The forecast, which is based on generally conservative assumptions about the future performance of the economy, suggests that the City will continue to exist in a stable and healthy Inancial position during this time. Saratoga continues to support policies and practices intended to maintain the City's financial integrity. For example, a minimum $2.1 million General Fund operating reserve is maintained, as well as a $200,000 contingency appropriation. The budget is built upon a conservative set of assumptions for annual revenue growth and does not assume that any potential one-time revenue sources will materialize if not yet committed or guaranteed to the City. hinanc_i_al Information and Maior Tnitiatives Management of the City is responsible for establishing and maintaining an internal control :;tr-ucture designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in confon-nity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are niz-t. 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 judgi-:lents 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 Nvith applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by the City's management. 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 h, the City Council. Activities of the general fund, special revenue funds, capital projects funds ane debt service funds are included in the annual appropriation. vii The level of budgetary control (i.e., the level at which expenditures cannot exceed the appropriated amount) is at fund level. The City also maintains an encumbrance accounting system as another method of maintaining budgetary control. Encumbered amounts lapse at year-end. However, outstanding encumbrances of a material nature are typically reappropriated as part of the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibilities for sound financial management. General Government Functions. The following schedule presents a summary of general fund, special revenue funds, capital projects funds and debt service funds revenues for the year ended June 30, 2000. Increase Total % of (Decrease) from Revenues FY 1999-00 Total FY 1998-99 Property taxes Special assessments Other local taxes Intergovernmental -State Intergovernmental -Federal Franchise fees Use of money and property Current service charges Reimbursement of interfund cost allocations Total revenues and transfers $2,879,698 17% $924,782 157,936 1 102,431 2,718,358 16 390,287 2,820,679 17 440,889 427,351 3 138,683 886,618 5 109,058 1,008,812 6 221,594 4,298,725 26 484,010 1,484,918 9 159,51 $16,683,095 100% $2,971.250 The largest source of revenues City-wide is from current service charges, comprising about 26% of total revenues. This is primarily development -related fees. Property taxes, other local taxes (primarily sales taxes) and intergovernmental state revenues (primarily motor vehicle license fees) also generate significant revenues for the City. The largest revenue increase was from property taxes, primarily due to a one-time payment of Tax Equity Allocation funds, as well as vigorous increases in the assessed valuation of property in Saratoga. Current service charges increased significantly as well, due to the active development environment that the City is currently experiencing. Increases in intergovernmental state revenues resulted from higher motor vehicle license fee revenues. Other local taxes increased primarily as a result of sales tax revenues. The schedule below summarizes general fund, special revenue funds, capital projects fiends and debt service funds expenditures for the year ended June 30, 2000. Expenditures Current: Public safety Environmental services Public works services Community services Conununity support General and inner -governmental services Capital outlay Debt Service: Principal Interest Total expenditures and transfers Total FY 1999-00 Increase % of (Decrease) from Total FY .1998-99 S2,825,749 21% 16,075 2,452,845 19 448,427 3,567,958 27 (316,687) 1,358,636 10 49,888 232,916 2 (131,436) 1,404,530 11 185,835 1,240,312 9 87:.,585 80,000 0.8 `5,000 _ 18,783 0.2 712 $13.181,729 100% $1,129,399 The increase in capital outlay expenditures was due to major park development, street repair and storm drain projects that were completed during the fiscal year. Environmental services expenditures increased as a result of development -related services and the City's Altrans congestion -' management program. Public works services decreased due to the less expensive overlay phase of the City's pavement management program that was completed this year, rather than the slurry seal phase that is performed in alternating years. General Fund Balance. The fund balance of the General Fund increased by S2,212,957 to $9,085,620 during the fiscal year. As previously discussed, this was attributable to several factors, - including higher than anticipated property taxes, sales taxes, development fees, and moto~ vehicle ID in lieu fees. Expenditures were also slightly lower than originally anticipated from savings throughout the City's General Fund programs. Debt Administration. At year-end, the City had a $185,000 general obligation bond debt outstanding, which is repayable from lease revenues from the County of Santa Clara for the Saratoga Library. Cash Management Policies and Practices. Excess cash revenues were invested in U.S. Treasure securities, certificates of deposit, and the California Local Agency Investment Fund during fiscal year 1999-00. At June 30, 2000, investments in the City Treasury matured in less than one year. The City's overall average rate of return on investments was 5.7% in fiscal year 1999-00. ix The City's investment policy minimizes credit and market risk while maintaining a competitive -- yield on its portfolio. The City invests primarily in the California Local Agency Investment Fund, a State -sponsored investment pool with an excellent record of financial management and liquidity. Remaining restricted investments were held in the bank's trust department with a separate account in the City's name. Risk Management. During the year ended June 30, 2000, the City continued its participation in the Association of Bay Area Governments (ABAG) risk plan and pool. ABAG is a non-profit corporation formed by member cities to pool their insurance risk and help lower the overall cost of providing insurance coverage for liability, property and workers compensation claims. Policy limits are as follows: $7,000,000 liability, $100,000,000 (total plan assets) property, and $10,000,000 workers compensation. Other information Independent Audit. California law requires cities to prepare an annual audit by an independent certified public accountant. The firm of Maze and Associates was selected by the City Council to prepare the accompanying financial reports. 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 and the related U.S. Office of Management and Budget's Circular A-128. Generally accepted auditing standards and the standards set forth in the General Accounting Officers Government Auditing Standards were used by the auditors in conducting the engagement. The auditor's unqualified report on the general purpose financial statements and combining fund statements and schedules is included in the financial section of this report. Awards. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for the CAFR for the fiscal year ended June 30, 1999. 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. x Acknowledgments. This CAFR represents the culmination of numerous hours of hard work expended by many individuals. In particular, we would like to express our appreciation to Rav Galindo, the City's Accounting Supervisor. We commend him for his professionalism and commitment to excellence. Furthermore, we would like to thank Maze and Associates for their helpful and timely assistance in the preparation of this report. Finally, we would like to give credit to the City Council and the Finance Advisory Commission for their ongoing interest and support in planning. conducting and advising, on the operations of the City in a responsible and progressive manner. Respcctfully submitted, Dave Anderson City Manager XZ Mary Jo Walker Administrative Services Director I�, CITY OF SARATOGA ELECTED OFFICIALS AND ADMINISTRATIVE PERSONNEL JUNE 30, 2000 CITY COUNCIL Stan Bogosian - Mayor John Mehaffey - Vice Mayor Evan Baker Nick Streit Ann Waltonsmith CITY STAFF Dave Anderson - City Manager Mary Jo Walker - Administrative Services Director James Walgren - Community Development Director Joan M. Pisani - Recreation Director - John Cherbone - Public Works Director CITY ATTORNEY Richard S. Taylor X 111 O CD CfLQ m D mw �mfD -nj MIM I _ xiv 4 n m CD n p) 0 0 0 r 9 iCD I f7 O n Z I 1 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Saratoga, California For its Comprehensive Annual -- Financial Report for the Fiscal Year Ended _.. June 30, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers _ Association of the United States and Canada to government units and public employee retirement s,,;stems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. Xj F �4� D THEM,p 11 WED STATES N owrrou President z� eoRrs • 5]Eel.l. oy� Executive Director Xv o� 9 A(J,A47E & ASSOCIATES ACCOUNTANCY CORPORA FION 1670 Riviera Avenue - Suite 100 Walnut Creek, Califomia 94596 (925) 930-0902 « FAX (925) 930- 0135 E-Mail: maze(Ornaaeassociates.com Website: www.ini�-eassociates.com INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council City of Saratoga, California _ We have audited the general purpose financial statements of the City of Saratoga as of and for the years ended June 30, 2000 and 1999 as listed in the Table of Contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our, audits in accordance with generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards (1994 Revision), issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estirmates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly in all material respects the financial position of the City of Saratoga at June 30, 2000 and 1999 and the resslts of its operations for the years then ended, in conformity with generally accepted accounting principles. Our audits were niade for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining financial statcrnents and schedules listed in the Table of Contents are. presented for purposes of additional analNIsis and are not a required part of the general purpo�c nancial statements of the City of Saratoga. Such information has been subjected to the auditing procedures applied in our audits of the general purpose financial statements and in our opinion is fairy stated in all material respects in relation to the general purpose financial statements taken as a whole. The statistical section listed in the Table of Contents was not audited by us and we do not express an opinion on this information. October 27, 2000 A Professional Corporation (A (�5 CITY OF SARA'COGA GENERAL PURPOSE FINANCIAL STATEMENTS The fbllowing combined financial statements, along with the notes to the general purpose financial staterrients, present an overview of the City's financial position and results of operations. Individual funds and account groups used by the City are grouped as follows: GOVERNMENTAL FUND TYPES General, special revenue, capital projects and debt service funds are used to account for governmental functions. The governmental fund measurement focus is on the "financial flow" basis, which accounts for sources and uses of available spendable resources. FIDUCIARY FUND TYPE Agency funds are used to account for assets held by the City in an agent capacity for others. ACCOUNT GROUPS Account groups are used to establish accounting control of general fixed assets and the unmatured principal of general long-term obligations. Assets and liabilities of these funds are neither spendable resources, nor do they require current appropriation. Therefore, they are accounted for separately from the govemmental fund types. 3 CITY OF SARATOGA COMBINED BALANCE SHEETS - ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2000 WITH COMPARATIVE AMOUNTS FOR ]LINE 30, 1999 FIDUCIARY GOVERNMENTAL FUND TYPES FUNI) TYPE Special Capital Debt General Revenue Projects Scnice Agency ASSETS AND OTI II:R DEBITS Cash and imestmctits (Note 3) Restricted cash and imcstments (Notes 3 and 6F) Recei%ables. Accounts Interest lfakone FOUnd3tiOn (Note 4A) Ilousino rehabilitation loan program (Note 413) Due from other funds (Note S) Fixed assets (Note 5) Other debits: Amount available in debt set -vice funds Amount to be provided for retirement of general long -terns debt Total Assets and Other Debits LIABILITIES Accounts payable Accrued payroli Accrued %acation and sick leave (Note 2M) Due to other funds (Note B) Due to assessment district bondholders Deposit; payable Deferred revenue (Hole 4) Claims paI.abtc I —,te 10) Long term dcht INotc b): General ubli atir,n honds Total Liabilities FUND EQL..'•IT'Y AND O I'HER CRF-DI I'S Other credits Investment in general fixed asset: fund balances (Note. 7) Rcscnrtl Ior [Lrcumbrmues Licht srrti ire Petty cash L';rzrescr%cd I)esi�flatcd for operations t_Jndcsrgnatad Total Fund Lquity and Other Credits Total I iahiltties and fund Equity & Other Credits S8,763,104 $2,475,409 $2,206,636 196,205 656,976 19r),-95 169,075 450,111 1 sr) 233 $571,677 361,246 $9.457,412 S3,5S2,496 $2,266,636 S932,923 S133,450 S369,057 S122,672 49.207 33,768 159,233 ` $361 ?46 571,677 169,f175 450,11 1 401,792 1,012,169 122,672 932,923 1S1,912 332,264 267..i66 2,1 14,497 6, 7 S9,2 1 1 2,238,003 1,876.548 9,085,620 2,570,327 2.143,904 $9,487,412 S1582,496 $2,266.616 S9 2 923 See accompanying notes to financial statements TOTALS MVOUNT(3ROUPS (Memorandum Only) General Fixed General Lon, -- Assets Yerro Obligations 2000 1999 $13,195,177 S13,195,177 $14,076,826 S10,754,413 361,246 313,539 853,181 576,759 199,795 105,271 169,075 207,641 450,1 1 1 492,501 159,231 153,302 13,19S,177 16,378,427 5,574 $353.096 353,096 425,612 $353,095 $29,817,740 S29,413,039 $025,171) S511,x30 93,r_i;5 44,711) S f ti,U'Ir, I I S, 196 1 l 6, l; l 159,233 153,0_ 161,24r1 307,73'1 571,677 477,149 619,156 700,142 50,000 100,00(; 100,000 185.000 185,i!u�i 2r,5,000 353 0') 2.,5'2.652 2 73("or, S13,195,177 13,195,177 10,378,427 78 1 ,542 M 74 1,300 2,1 14,497 2,00(1 00i) 10,903,872 8,291,671 13.19�,17r 26,995,088 26,676972 S13,195,177 5353,096 $29,817,740 $29,413,039 �11 CITY OF SARATOGA COMBINED STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2000 — WITH COMPARATIVE AMOUNTS FOR THE FISCAL. YEAR ENDED JUNE 30, 1999 -_OTA1.S GOVERNMENTAI. FE.'ND TYPES (Mernorandunt Only) Special Capital Debt General Revenue Projects Service 2000 1499 _ RLVFNLIES Propertvtaxes S2,790,294 $89,404 $2,879,698 $1,954,916 Special assessments 157936 1`,7,936 55,505 Other local taxes 2,718,358 2,7Is, 35ii 2 328.t171 Intergovernmental - State 1,623,583 1,197,096 2,Qi),(,79 2,379,790 Intergovernmental - Fedcral 427,351 427,-151 288,E 8 ianchise fees 886AI8 880,018 77-.,wo Use of money and property 630,833 284.77(.) $93 209 1,008.812 7b7,2I8 Current service charges 520,265 3,554,J00 S223,560 4,298,725 3.814,715 Reimbursement of interfund cost allocations (Note 2G) 1,484,918 l j4 ,4,916 1,525,4.02 Total Revenues 10,654.869 5,711,457 223,560 93,209 16,683,095 13,711,845 - F\PENDl-LURES (_-urrent: Public safety 2,?61,741 h4,008 2,825,741) 2,8()9.674 En 'ironmcntal services 129,849 2,322,990 2,452,845 2,004,�.18 Public «urks scr ices 1,113,570 2,454.11> 8 3,5(,7,958 3.S€,,(,45 Communitvservices 96393 1,2(,2,243 1,358.63(i 1 Crc .;'4A Communiv� suppw7 76,15o 150.760 2.2,916 -61,352 General and intergovernmental srrviccs 1.404,530 1,41)4,530 1..21 1I.695 _ Capital outlay 578,612 331),121 331,579 t,2401312 727 Debt scrl ice: Principal S0.000 80.000 75,000 Interest and fiscal charges lti,? 18.783 I8.071 — 'Total Fxpe rditures 6.161,151 0,590,216 331,579 98,783 13.181.729 12.(ISZ 33+) EXCESS OF REVENUES OVER (L'NDF..R)EXPENDITURES 4.493,718 (878.759) (108,019) (5,574) 3,%1.360 1,6_ii,515 0"11-IER FINANCING SOURCES (USES) Operatin;7 transfers in (Note 8) 22,267 2,761,661 2,783,9 88 2,771.893 Operatim transfers (out) (Note 8) (2.303,028) (480,900) (2,783.928) (2,771.03,: Total Other Financing Sources (Caen) (2.280,7611 2,280.761 I-V FSS OF RFC I'MIIiS AND OTHER — S, )1_ R(_'E:S UVFR (CNDER) EXPENDITURES ANI)OIHH?R SF.S 2'12957 1,402,002 (108,019) (.5.574) 3.501,366 1.6;9.41; Fund balances at beginning of year 6.871663 1,168,325 2,251!9S3 5-574 10>98.545 8.63 .03O - Fund balances at end of year $9,085,620 $2,570,327 $2,143,964 S 13,799-91 1 51(1,-9SS 445 _. See accompanying notes to financial stalements %I CITY OF SARATOGA COMBINED SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP LEGAL BASIS) AI.I. GOVERNMENTAL FUND TYPES FOR THE FISCAL YEAR ENDED JUNE 30, 2000 WITH COMPARATIVE ACTT )AL AMOUNTS FOR THE FISCAL YEAR ENDED JLJNF 30, 1999 REVENUES Property taxis Special assessments Otherlocaltaxes Intergovernmental - State Intergocemmcutal - Federal Franchise tees Use of money and property Current service charges Total Revenues EXPENDITURES Current Public safely' Environmental services Public ,o,ks serviccs Community services Commumth support General and mtrseovenunemal services Indirect cost allocation (Note 2G) Capital oudav Debt service. Principal Interest and fiscal charges Dotal Expenditures I V ESS OF P b % I[N(11S OVER (UNDER) I-XPLNDI TURFS OTHER HER FINANCING SOI IRCES (11SES) Operating transfers in Operating transfer, (out) Total O(her Financing Sources (Uses) EXCESS OF RE V ENCES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER IS1-ti Fund balanecs at kcgimiir- ol,year Fund baianc- at end of Vcnr GENERAL FUND SPECIAL REVENUE FUNDS Vanance Vanance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 52,689,431 $2,790,294 $100,903 $71.750 S89,404 S15,654 .� 157.645 157936 291 2,270,561 2,718,358 447,797 1,336,270 1,623,583 287,313 1.011,839 1,197,(Y)6 185,258 970,988 427.351 (443,637) 781,200 SS6,618 105,418 411,473 630,833 219,360 150,500 284,770 134,270 482,414 520.265 37,851 2,629,611 3,554,900 925,299 7,971,349 9,169,951 1,199,602 4.894,332 5,711,457 817,125 2,960,905 2,761,741 199.064 101,199 64,008 37,191 ` 177,974 129,S49 48,125 2,379,012 2.i22,996 56,016 1.153MA 1,113.A70 40,09E 2,649,600 2,454,i)B8 195.512 89,742 96,"93 (6,6'1) 1.157,581 1 '-6',243 1104d,62) 75,400 76,156 Cl (i1 315,529 156,760 158,769 2,097,563 2,037,857 59,706 (2,118,245) (2,119,245) 610,716 578,612 32.104 591,071 330.121 240.950 5,047,923 4,676,233 371,690 7,183.992 6.590.216 593,776 2.923,426 4,493,719 1.570,292 (2,289,660) (878.759) L41090I 109,294 22,267 (97,027) 2.069.185 2,761,661 692.476 r (1,676,336) (2,303,028) (626,692) (467.030) (480,900) (13.8101 (1,567,042) (2,25),761) (71,,7I')) 1,602.155 2.280.761 678.606 S1,350,384 2,212,957 $556573 (5687,505) 1.402,002 S2 089.507 6,872,66 L 161%325 $9,085,620 S2.570,327 See accompanving notes to financial statements m TOTALS CAPITAL PROJECTS FUND DF,BT SERVICE FUND (Memorandum OnN) 1999 Variance Variance % ariance Favorable Favorable Fa�crable - Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfawrable) Actual $2,763,181 $2,879,698 51.6,517 S1.954.916 157,645 157,936 291 5.505 2,270,561 2,718.358 4-17.797 2.3'IN -1 2,348,108 2,820,679 4,2.571 2,, 790 970,988 427,351 (4-13.6371 FS.IinS 781,200 886,618 1oi '418 --.,6) $94.262 $93.209 (51,053) 656,235 1,008,812 ', 2,577 $111,780 $223,500 S111,780 3,223,805 4.298,725 1.0'4.920 �.S14_T15 I11,780 223,560 111,780 94,262 93,209 (1,053) 13,071,723 15,198,177 2,126,454 3.062,004 2,823,749 2}6.255 2", 9.t,'4 2,55t.986 2,452,845 104.141 1(14.4 18 -- 3,R03.568 3.567,958 -_5.610 r"1.1,45 1,247,323 1.358,636 11_-131 390,929 232,916 I- - i)I- 2,097,563 1037,857 1 --4-09:. (2,118,2451 (2111R,245) 603,698 331,579 272,119 1,795,485 1,240,312 173 o-1.21).> 80,000 80,000 80,000 80,000 lil _ 13,505 18,783 (5,278) 13,505 18,783 27S1 :).1-! 603,698 331,579 272,119 93,505 98,783 (5,278) 12,929,118 11,696,811 1.-2.307 1%."'2 119 (491,918) (108.019) 383,899 757 (5,57.•4) (6,331) 142,005 3,501.366 �761 ; 2,178,479 2,79.3.928 of,, .449 2. '.... _ -- (2,143,366) (2,78:3.928) ff-.u.562i i= 35,113 _.113 ($491.918) UOK.019) $383,899 $757 (5,574) (56,331) 5177,7i8 3,501,366 S3.?_:.648 2.251.983 5.574 Y $2, 143,964 S 13.7 9101 1 5: • 0 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 1 - GF,NERAL The City of Saratoga is a largely residential community located in the foothills of the Santa Cruz Mountains. The City was incorporated as a municipal corporation in 1956, population at June 30, 2000 was 31,320. 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, 2000 the City's staff comprised 53 full time employees who were responsible for the following City -provided services: Public Safety - the City provides round-the-clock police services under a contract with the County Sheriff's offices. Fire services are provided by special districts. Emergency management, code enforcement and inspection services are provided by 5 City employees. Public Works/Maintenance - The City builds and maintains its parks, streets, curbs, gutters and related public property with a force of 19 employees. Major projects may be contracted out to reduce costs. Community Development - Zoning administration, plan checking and advance planning services are provided by 6 employees. Culture, Recreation and Community Support services are provided by a total of 8 employees. General Governmental services are provided by a total of 15 employees. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIF,S The accounting policies of the City conform with generally accepted accounting principles applicable to governments, as set forth below: A. Reporting Entity As required by generally accepted accounting principles, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. The general purpose financial statements of the City include the financial activities of the City and the Lighting and Landscaping District #1 since this District is controlled by the City. City Council is the governing body and adopts the budget and authorizes expenditure of funds for this District. The activities of the District have been merged (termed "blended) with those of the Citv. The City is collecting agent for Parking Assessment Districts #2 and #3 and the Leonard Road Assessment District but is not obligated for the repayment of debt issued by these three Districts, which have not been included in the general purpose financial statements. The City acts as the agent for the Saratoga Public Financing Authority, which was established to provide financing to Parking Assessment District #2 and the Leonard Road Assessment District. The Authority's revenue source is assessments remitted from the above Districts; its activity is included in the Assessment Districts Bonds Agency Fund. 10 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Financial statements for each of these component units may be obtained from the City o;' Saratoga, 13777 Fruitvale Avenue, Saratoga, CA, 95070. B. Fund Accounfint _ The accounts of the City are organized on the basis of funds and account groups, 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. Government 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. The various funds are grouped in the financial statement in this report as follows: GOVERNMENTAL FUNDS General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. Debt Service Funds are used to account for financial resources to be used for the payment of' principal and interest on long-term obligations. Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. FIDUCIARY FUNDS Agency Funds are used to account for assets held by the City as an agent for its employees, other individuals, private organizations or assessment districts in the City. C. Measurement Focus All governmental funds are accounted for on a spending or financial flow measurement focus which means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is their net current assets, which is considered orly to be a measure of available spendable resources. Governmental fund operating statements present a summary of sources and uses of available: spendable resources during a period by presenting increases and decreases in net current assets. Because of their spending measurement focus. governmental funds exclude fixed assets and noncurrent liabilities. Instead., these assets and liabilities are reported in the General Fixed Assets Account Group and the General Long -Term Obligations Account Group. These account-,roups measure only financial position; they are not funds and they do not measure results of optratioM�. -- They maintain accounting control over the City's governmental fund fixed assets and City debt which will be repaid by governmental funds. 11 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In those cases when a governmental fund records a long-term receivable or other non -current asset, _ an offsetting credit is made to deferred revenue, or undesignated fund balance is reduced to reflect the fact that this amount is not yet available. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All -- governmental funds and agency funds are accounted for using the modified accrual basis of accounting. These funds' revenues are recognized when they become measurable and available as net current assets. Measurable means the amount of the transaction can be determined and available means the amount is collectible within the current period or soon enough thereafter (generally sixty days) to be used to pay liabilities of the current period. Amounts which could not be measured or were not available were not accrued as revenue in the current fiscal year. Revenues susceptible to accrual include property taxes, assessments, certain charges for services, interest and rentals. Fines, forfeitures, licenses and permits, sales taxes and motor vehicle taxes are not susceptible to accrual because they are not measurable until received in cash. Expenditures are generally recognized when incurred under the modified accrual basis of accounting. Exceptions to this general rule include principal and interest on general long-term debt, which are recognized when due. Financial resources usually are appropriated in other funds for transfer to a debt service fund in the period in which maturing debt principal and interest must be paid. Such amounts thus are not current liabilities of the debt service fund, as their settlement will not require expenditure of existing fund assets. E. Fixed Assets and Long -Term Liabilities The General Fixed Assets Account Group provides accounting control over the cost of fixed assets used by the City's governmental funds. The General Fixed Assets Account Group is not a fund and its balances are not financial resources available for expenditure. Rather, they provide an historical accounting record of resources expended on general fixed assets. Public domain (infrastructure) general fixed assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized because these assets are immovable and of value only to the public. No depreciation has been provided on general fixed assets. The General Long Term Obligations Account Group provides accounting control over the unmatured principal of the City's general long term obligations. This debt will be repaid out of' governmental funds but is not accounted for in these funds because this part of the obligations does not require an appropriation or expenditure in this accounting period. 12 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Budgets rued Butl etaryAecounting The City follows these procedures in establishing the budgetary data reflected in the; financial statements: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expencitures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution. 4. The City Manager may authorize transfers of budget amounts within any 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. 5. Formal budgetary integration in the form of legally adopted budgets is employed as a mam.gement control device for all Funds except the Agency Funds. Budgets are adopted on a basis consistent with generally accepted accounting principles. Budgeted expenditures -- reported are as amended by supplemental appropriation of the City Council. G. Budget (lVon-GAAP Legal Basis) The City uses a budget basis which differs from generally accepted accounting principles in that the City allocates budgeted indirect costs to operating departments partially within the same fund. For _ the year ended June 30, 2000 a total of $2,118,245 in indirect General Fund costs were al located, of which $1,484,918 was allocated to other funds and S633,327 was allocated within the General Fund. The City's Budget and its Budget Basis Statements of Revenues, Expenditures and Changes in Fund Balances reflect the entire amount of indirect cost allocations as a separate line -item credit ` to expenditures, while for GAAP basis financial statement purposes the $633,327 of intra-General Fund costt allocations has been eliminated and the remaining S1,484,918 classified as General Fund revenue. H. Excess oj'E_vpenditures over Appropriations The following funds had expenditures in excess of budget in the following amounts for the year ended June 30, 2000. Each of these funds had sufficient fund balance to cover these excess expenditures. Development Services Special Revenue Fund $40,615 Recreation Special Revenue Fund 104,662 Lighting, and Landscaping Assessment District #1 Special Revenue Fur1d 5.815 13 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) _ L Encumbrances and Appropriations Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration. Encumbrances outstanding at year end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Unexpended appropriations lapse at year end and are reappropriated in the following year. J. Fund Balances, Resenes and Designations Governmental fund balances represent the net current assets of each fund. Net current assets _ generally represent a fund's cash and receivables, less its liabilities. Portions of a fund's balance may be reserved or designated for future expenditure. — K. Deferred Compensation Plat City employees may defer a portion of their compensation under City sponsored deferred compensation plans created in accordance with Internal Revenue Code Section 457. Under these plans, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination, retirement, death or in an emergency as — defined by the Plan. The City has contracts with the International City Managers' Association and National Plan Coordinators to manage and invest the assets of the Plans. The City's contracts with ICMA and NPC require the establishment of separate trusts for assets in the Plans, which are held for the exclusive benefit of plan participants and their beneficiaries and are not controlled by the City. L. Property Taxes 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 I and becomes delinquent on August 31. E CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued j M. Accrued Vacation and Sick heave - Employees accrue vacation and sick leave on a daily basis and have a vested interest in fifty percent of accrued leave. The City's obligation for accrued vacation and sick leave is recorded in the General Long Term Obligations Account Group since the amount is repayable from fixture resources. The City does not pay post -retirement health care benefits. Accrued vacation and sick leave increased $1,910 for fiscal year 1999-00. N. Closed Funds The City has closed the Hillside Street Repair Special Revenue Fund, the State Park Bond Capital Projects Fund and the Quarry Creek Trust Agency Fund_ These funds have been removed from the general purpose financial statements. The City changed the name of the State Gas Tax Special Revenue Fund to the Streets and Roads Special Revenue Fund. D. Total Columns on Combined Financial Statements Although each of the City's funds is a separate accounting entity, the Combined Financial Statements also include total columns, which are captioned Memorandum Only to indicate: that they are presented only to facilitate financial analysis. Data in these columns do not present: financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation, since no interfund elimination have been made; in the aggregation of this data. NOTE: 3 - CASH AND INVESTMENTS The City's dependence on property tax receipts, which are received semi-annually, req wires it to _ maintain significant cash reserves to finance operations during the remainder of the year. The Cit}° pools cash. from all sources and all funds except that held by fiscal agents under debt indentures, and the Housing Assistance and Rehabilitation Loans Program so that it can be safely invested at maximum yields, consistent with safety and liquidity, while individual funds can make expenditures - at any time. A. Categorization of Credit Risk of Securities Instruments The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, nts, or by an electronic -- entry registering the owner in the records of the institution issuing the security, called the book enirl system. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all its investments, regardless of their form. The City categorizes its individual securities instruments in ascending order to reflect tl,.c relative risk of loss of these instruments. This risk is called Credit Risk, the lower the number. the lower the risk. The three levels of risk prescribed by generally accepted accounting principles are described below: Category .1 - Securities instruments in this category are in the City's name and are in the Possession - of the Trust Department of the bank employed by the City solely for this purpose. The City is the registered owner of securities held in book entry fonn by the bank's Trust Department. IC CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 3 - CASH AND INVESTMENTS (Continued) Category 2 - Securities instruments and book entry form securities in this category are in the bank's name as the City's agent, but are held by its Trust Department in a separate account in the City's name. Category 3 - None of the City's investments are in this category, which would include only City - owned securities instruments or book entry form securities which were not in the City's name or which were not held by the bank's Trust Department. Pooled Investments - Pooled investments are not categorized because of their pooled, rather than individual, nature. Cash and investments, recorded at fair value, were as follows at June 30: Category i investments: Certificates of deposit (insured) Category 2 investments: Certificates of deposit (collateralized) Noncategorized investments: California Local Agency Investment Fund ins estment contract Mutual funds (U.S. securities) Cash deposits (overdraft) Total cash and investments B. Authorized Investments 2000 City 'Treasury Available for Operations Restricted Totals 1999 Totals S200,000 $200,000 200,000 862,683 862,683 831,35S 12,603,437 12,603,437 8.659,598 S 100,N 160,0t12 160,000 142,70'7 142,709 12 S,106 410,706 S5,53 169,241 1.(188,590 S14,076,S26 S361,246 S14,438,072 S11,067,952 Under the City's Investment Policy, applicable debt indentures, and in accordance with the California Government Code, the City may invest in the following t`-lics of investments: U.S. Treasury Bills with maturity to one year U.S. Treasury Notes with maturity of one to five years U.S. Government Agency issues with a maturity of six months to five years Certificates of Deposit or Time Deposits placed with commercial banks and/or savings and loan companies, limited to 20% of the portfolio per issuing institution Negotiable Certificates of Deposit, limited to 20% of the portfolio per issuing institution Local Agency Investment Fund with a maximum investment of S20,000,000 Passbook Savings Account and Demand Deposits, limited to the minimum necessary for current cash flows Investment -grade obligations of state, local governments or public authorities, limited to 20'Si& of the portfolio per issuing institution Money market mutual funds, limited to 20% of the portfolio per issuing institution. Investments held by the City's fiscal agent are governed by related debt indenture requirements. 16 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 3 - CASH AND INVESTMENTS (Continued) C. LAIF The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage -backed securities, other asset -backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government -sponsored enterprises, and corporations.. D. Cash and' Certificates of Deposit ` Cash and certificates of deposit are considered to be Category 1, because they are entirely insured, or Category 2, because they are collateralized by the institution holding the deposit. California law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the deposit or first trust deed mortgage notes with a value of 150% of the deposit as collateral for all municipal deposits. This collateral remains with the institution, but is considered under the law to be held in the City's name and places the City ahead of general credi tors of the institution.. The City has waived collateral requirements for the portion of deposits covered by federal deposit insurance. y The carrying amount of the City's cash and certificates of deposit was $1,531,924 at June 30, 2000. Bank balances before reconciling items were $1,966,733 of which $708,869 was insured (category 1), and $1,257,864 was collateralized (category 2) as discussed above. NOTE 4 - LOANS RECEIVABLE Since none of the loans discussed below are due within the next year, the City has offset them with deferred revenue. A. Hakone 1"oundation The City has a loan to the liakone Foundation, which bears interest at 6 1 /2% and matures March 1, 2004, with principal and interest payments due monthly. Proceeds of the loan Nve:-e used to complete improvements at the Hakone Gardens Cultural Exchange Center. Effective July 1, 1997 the City and the Foundation amended the loan agreement to require the Foundation to assume responsibility for operating and maintaining the Center and in exchange the City wall forgive principal and interest due in accordance with the original amortization schedule. "l'he outstanding balance on the loan was S 169,075 and 5207,641 at June 30, 2000 and 1999 respectively. 17 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 4 - LOANS RECEIVABLE (Continued) B. Housing Rehabilitation Loan Program The City administers a housing rehabilitation program called the Saratoga Housing Assistance and Rehabilitation Program (SHARP) using Housing and Community Development Act funds. Under the Program, individuals with incomes below a certain level and corporations building rental housing for low and moderate income tenants are eligible to receive low interest loans, secured by deeds of trust, for construction work on their homes. Federal funds received by the City are deposited with a commercial bank. Upon approval of loans, the bank disburses the funds, arranges for and collects repayments. At June 30, 2000 and 1999, the City had outstanding Housing Assistance and Rehabilitation Program loans of $450,111 and $492,501, respectively. During the year ended June 30, 2000, the City received $47,546 from all participants. NOTE 5 - GENERAL FIXED ASSETS The City makes capital outlays for general fixed assets and for infrastructure. General fixed assets include land, buildings and equipment used in City operations. Depreciation is not provided on general fixed assets since the cost of these assets is accounted for as an expenditure, reducing fund balance in the year they are acquired. General fixed assets comprise the following: _ June 30, 1999 Additions Adjustment June 30, 2000 Land and land improvements $7,575,658 ($2,777,810) $4,797,848 _ Buildings 6,079,888 S144,767 (239,519) 5,985,136 Equipment and rolling stock 2,722,881 136,226 (446,914) 2,412,193 Total $16,378,427 S280,993 (53,464,243) $13,195,177 General fixed assets are stated at cost, or at estimated historical acquisition cost for assets acquired before July 1, 1986. Estimated historical acquisition costs are based on an independent appraisal of the City's general fixed assets. Donated fixed assets are valued at their fair market value on the date donated. Fixed assets acquired under lease agreements are capitalized at cost, based on the present value of future lease payments. �- The City conducted a physical inventory of its general fixed assets during fiscal year 1999-2000. An adjustment of $3,464,243 was recorded to reduce the historical cost of general fixed assets to _ the actual inventoried assets. 18 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 6 - LONG-TERM DEBT A. Additions and Retirements Long terra debt expected to be financed from governmental funds is accounted for in the general long-term. obligations account group, not in governmental funds. Changes in general long term debt were as follows: Interest Final Rates ]Maturity June 30, 1999 Retirements June 30, 2000 General Obligation 1976 Library Bonds 5%-7% 12/15/01 $265,000 $80,000 S 1 S5,00O B. General Obligation Bonds The City's general obligation bonds are due in 2001 and may be redeemed earlier. Principal payments are payable annually on December 15, with interest payments payable semiarinually on June 15 and December 15. The proceeds from these bonds were used to constrict a public library wiaich is leased to Santa Clara County. Lease revenues received from the County are pledged for repayment of the bonds. C. Special Assessment Debt Without City Commitment The City is the collecting and paying agent for bonds outstanding in the amount of S9 i. 5,000, as of June 30, 2000 for Village Parking District itif2 and the Leonard Road Improvement Assessment District. However, the City has no direct or contingent liability or moral obligation for the payment of these bonds and has not reflected them in its financial statements. The City is also responsible, as the Districts' agent, for the Districts' cash receipts, disbursements and balances. which are reported as Agency Funds transactions in the Assessment Districts Bonds A`,tnc% Fund. D. Repayment Requirements At June 30, 2000 future annual repayment requirements for long-term debt were as follows: Year Ending June 30, 2000 General Obli-ation Bonds 2001 9 ,40 7 2002 102,950 196,357 Less Interest 11,357 Principal SI SS,000 19 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 6 - LONG-TERM DEBT (Continued) The bond indentures contain certain limitations and restrictions regarding annual debt service requirements, maintenance and flow of monies through various restricted accounts. City management believes the City is in compliance with all such indenture requirements. E. Debt Authorized But Not Issued On March 7, 2000 voters approved the issuance of General Obligation Bonds not to exceed $15 million for the expansion and renovation of the Saratoga Library. As of the issuance of this report the bonds have not been issued. F. Debt Service Reserves With Trustees The City is required to maintain amounts of Restricted Cash and Investinents with trustees or fiscal agents under the terms of certain debt issues_ These funds generally include unexpended debt proceeds or amounts pledged as reserves to be used if the City fails to meet its obligations under the debt issues. Reserves; unexpended debt proceeds and other funds with fiscal agents totaled $361,246 and $313,539, respectively at June 30, 2000 and 1999. The California Government Code requires these funds to be invested in accordance with City ordinance, bond indentures or State statue. All these funds have been invested as permitted under the Code. NOTE 7 - FUND EQUITY A. Reservations of Fund Balance Fund equity consists of reserved and unreserved amounts. Reserved fund equity represents that portion of a fund balance that has been appropriated for expenditure or is legally segregated for a specific future use. The remaining portion is unreserved. Fund balances at June 30, 2000 are reserved for encumbrances. B. Designations of Fund Balance A portion of unreserved fund balance may be designated by City Council to indicate plans for financial resource utilization in a future period, such as for general contingencies or capital projects. Such plans are subject to change and may never be legally authorized or result in _ expenditures. City Council has designated an amount for Operations, which it has defined as being equal to the greater of one -quarter of the total budgeted General Fund appropriations for the current budge: year or $2,000,000. The designation is increased annually by an amount equal to the interest the City earned on an equivalent amount of cash and investments. 20 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 8 - INTERFUND TRANrSACTIONS A. Operatin); Transfers Between Funds With Council approval, resources may be transferred from one City fund to another. "11te purpose of the majority of transfers, called operating transfers, is to reimburse a fund which has made an expenditure on behalf of another fund. Less often, a residual equity transfer may be made to open or close a fund. Operating; transfers between funds during the fiscal year ended June 30, 2000 were as follows: Fund Receiving Transfers Fund Making Transfers Amount Special Revenue Funds: General Lund Transportation Development Act S3,748 General Fund Recreation 7,816 General Fund Environmental Programs 10,703 Special Revenue Funds: State Gas Tax Environmental Programs 319,366 State Gas Tax Traffic Safety 139,267 State Gas Fax General Fund 1,870,134 Community Development Block Grant General Fund 9,050 Local Law Enforcement General Fund 9,359 Recreation General Fund _ 414,485 S2, 783,928 B. Current Intetf ind Balances Current interfund balances arise in the nonnal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2000 the General Fund was owed w141,242 from the Community Development Block Grant Special Revenue Fund and $17,991 from the Traffic Safety Special Revenue Fund. NOTE 9 - PENSION PLAN CALPERS Miscellaneous Employee Plan Substantially all City employees are eligible to participate in pension plans offered by California Public Employees Retirement System (CALPERS), an agent multiple employer defined benefit pension plan which acts as a common investment and administrative agent for its participating member employers. CALPERS provides retirement and disability benefits, annual cost: of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. The City's employees participate in the Miscellaneous Employee Plan. Benefit provisions under the Plan are established by State statute and City resolution. Benefits are based on years of credited service, equal to one year of full time employment. Funding contributions for the Plan arc: determined annually on an actuarial basis as of June 30 by CALPERS; the City must contribute these amounts. The Plans' provisions and benefits in effect at June 30, 2000, are summarized as fellows: 21 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 9 - PENSION PLAN (Continucdj Miscellaneous Benefit vesting schedule 5 years service Benefit payments Monthly for life Retirement age 50 Monthly benefits, as a % of annual salary 1.092-2.418% Required employee contribution rates 7% Required employer contribution rates 0% The City's labor contracts require it to pay employee contributions as well as its own. CALPERS determines contribution requirements using a modification of the Entry Age Nonnal Method. Under this method, the City's total normal benefit cost for each employee from date of hire to date of retirement is expressed as a level percentage of the related total payroll cost. Normal benefit cost under this method is the level amount the City must pay annually to fund an employee's projected retirement benefit. This level percentage of payroll method is used to amortize any unfunded actuarial liabilities. The actuarial assumptions used to compute contribution requirements are also used to compute the unfunded actuarial accrued liability. The City does not have a net pension obligation since it pays these actuarially required contributions monthly. Annual pension costs, representing the payment of all contributions required by CALPERS, for the three fiscal years ended June 30, 2000, 1999 and 1998 amount to $177,444, $164,830 and $289,056, respectively. CALPERS uses the market related value method of valuing the Plan's assets. An investment rate of return of 8.25% is assumed, including inflation at 3.50%. Annual salary increases are assumed to vary by duration of service. Changes in liability due to plan amendments, changes in actuarial assumptions, or changes in methods are amortized as a level percentage of payroll on a closed basis over twenty years. Investment gains or losses are accumulated as they are realized and ten percent of the net balance is amortized annually. The Plan's actuarial value (which differs from market value) and funding progress over the most recent three years available are set forth below at the actuarial valuation date of June 30: Miscellaneous Plan: Actuarial Entry Age Valuation Accrued Value of Date Liability Assets 1996 $10,086,427 $10,722,758 1997 9,734,565 12,475,286 1998 10,540,332 15,721,109 is nfunded Unfunded Annual (Overfunded) (Overfunded) Funded Covered Liability as Liability Ratio Payroll %, of Payroll ($636,331) 106.3% $2,368,072 (26.871%) (2,740,721) 128.2% 2,322,420 (118.011 %) (5,180,777) 149.2% 2,12 7,63 8 (243.499%) Audited annual financial statements and 10 year comparison statistics are available from CALPERS at P.O. Box 942709, Sacramento, CA 94229-2709. 22 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTF, 9 - PENSION PLAN (Continued) The market value of the net assets held for pension benefits in the Plans changed as follow, during the year ended June 30, 1998, the most recent available: Miscellaneous Beginning Balance, June 30, 1997 $12,475,286 Contributions received 218,495 Benefits and Refunds Paid (334,826) Expected Investment Earnings Credited 1,024,508 Expected Actuarial Value of Assets, June 30, 199 $13,383,463 - Market Value of Assets, June 30, 1998 $16,548,536 Actuarial Value of Assets, June 30, 1998 $15,721,109 Additional disclosures will be included when made available by PERS. NOTE 10 - RISK MANAGEMENT The City participates in the following public entity risk pools: A. Risk Pooh; ABAG Plan Corporation (ABAG PLAN) covers general liability claims in an amount up to $7,000,000. The City has a deductible or uninsured liability of up to S25,000 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, 2000 the City contributed S76,520 for current year coverage and received a refund of $52,919 of prior years excess contributions. The ABAG Worker's Compensation Pool Insurance. Authority (ABAG Pool) covers worker's compensation claims up to the statutory limit. The City has no deductible for these claims. During _ the fiscal year ended June 30, 2000 the City contributed $75,756 for current year coverage. 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 man;,gcmcnt and approval ofoperating budgets, independent of any influence by member municipalities heyond their representation on the Board. The City's contributions to each risk pool equal 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. Audited financial information for each risk pool may be obtained from ABAG at P.O. Hox 2089, Oakland, CA 94604-2089. 23 CITY OF SARATOGA Notes to General Purpose Financial Statements NOTE 10 - RISK MANAGEMENT (Continued) B. Liability for Uninsured Claims The current portion of the City's estimated liability for uninsured claims is recorded in the General Fund, and the noncurrent portion is recorded in the General Long Tenn Obligations Account Group. These amounts were estimated by management based on claims experience; $6,530 was paid in fiscal 2000 for uninsured claims losses. Changes in the estimated liability are as follows: 2000 General Long -Term Obligations General Fund Account Group Total 1999 _ Liability at beginning of year $50,000 $50,000 $100,000 $100,000 Losses paid 6,530 6,530 109 Provision for losses (6,530) (6,530) (109) Liability at end of year $50,000 $50,000 s100,000 S100,000 NOTE I I- JOINT POWERS AGREEMENTS The City is a member of the Santa Clara County "Traffic Authority, which consists of various cities in the San Francisco Bay Area. The City is also a member of other JPAs, but has had no material transactions with them. The JPAs 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. The Traffic 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 fi-om Santa Clara County Traffic Authority, 1754 Technology Drive, Suite 224, San Jose, CA 95110. \OTF 12 - CONTINGENT LIABII.ITIF.S The City participates in Federal and State grant programs. These programs will be 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. No cost disallowances are expected as a result of these audits, however, these programs are subject to further examination by the grantors -' and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse ctfect on the financial position of the City. ME CITY OF SARATOGA 1 GENERAL FUND The General Fund is used to account for all of the general revenues 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. 25 CITY OF SARATOGA GENERAL FUND COMPARATIVE BALANCE SLEETS JUNE 30, 2000 AND 1999 ASSETS Cash and investments Receivables Accounts Interest Hakone Foundation Due from other funds Total Assets LIABILITIES Accounts payable Accrued payroll Deferred revenues [Jninsured claims Total Liabilities FUND BALANCES Reserved for: Petty cash Encumbrances Unreserved: Designated for operations Undesignated Total Fund Balances Total Liabilities and Fund Balances 2000 1999 $8,763,104 $6,610,965 196,205 248,132 199,795 105,271 169,075 207,641 159,233 153,302 $9,487,412 $7,325,311 $133,450 $168,764 49,267 26,243 169,075 207,641 50,000 50,000 401,792 452,648 1.300 181,912 2,114,497 2,000.000 6,789.211 4.S71, 363 9,085,620 6,872,663 $9,487,412 $7,325,311 26 CITY OF SARATOGA _ GENERAL FUND COMPARATIVE SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (NON-GAAP LEGAL. BASIS) BUDGET AND ACTUAL, FOR THE YEAR ENDED JUNE 30, 2000 WI I'll COMPARATIVE ACTUAL AMOUNTS FOR TIIF. YEAR ENDI-D DUNE 30, 1999 2000 REVENUFS Property taxes Other local taxes lntergovemm(:ntal - State Franchise fees Usc of money and property Current service charges Total Revenues EXPENDITURES Current: Public safety Environmental services Public works services Community Services Community support General and intragovemmentat services Ind1TUCt cost altocation Capital outlay Total Lkpenditures C.XCESS OF REVENUES OVER (UNDER) EXPENDIT'I )i:1,S OTHER FINANCING SOURCES (USFS) Operating transfers in Operating transfers (out) -total Other Financing Sources (l.ses) EXCESS 01� REl FNUES AND OTIIER SOURCES OVr:R (UNDI-R) L\11I{N1-1T1RliS AND OTI11:R USES Fund balances at beginning of year Fund balances at end of v car 1999 Varlancc Favorable Budget Actual {Unfavorahlc! Actual S2,689,431 S2,790,294 $100,863 S1,864,766 2,270,561 2,718,358 447,797 2,32R,1171 1,336,270 1,623,583 287,313 1,6SO,00 781,200 886,618 1Oi,418 777,560 411,473 630,933 219,360 472.198 482,414 520,265 37,551 380,290 7,971,349 9,169,951 1,198,602 7,503,555 2,960,905 2,761,741 199!j64 2.719,188 177,1)74 129,849 4S.125 42,735 1,153,96S 1,113,870 40j)L9S 1.051,334 89,742 9(j,393 (t.6 1) 49,787 75,400 76,156 ( 56) 71,845 2,097,')63 2,037,S57 59.-06 1.754,995 (2,118,245) (2,11S,245) (1,861,702i 610,716 578,()12 32.104 212,223 5,047,923 4,676.233 371,690 4 040,405 2,923,420 4,493,718 1.570.292 :.463.15') 109-194 22,267 (87.027) 0.242 (1,076,336) (2.303,028) (626,692) 2.444.102.! (1,567,042) (2,280,761) (713.719) 1'.437,8601 S1,356,384 2,212,957 5856.5'3 ] 025.29(1 6,872,663�;. 1-9,085,620 jr..872,663 27 IN "N CITY OF SARATOGA SPECIAL REVENUE FUNDS These funds account for the proceeds derived from specific revenue sources which are legally restricted to expenditures for specified purposes. Community Development Block Grant - This fund accounts for grant funds received from the federal government for the purpose of developing viable urban communities and for the City's rehabilitation loan program. Traffic Safety - This fund accounts for vehicle code fine and forfeiture revenues and related public satiety expenditures. Streets and Roads - This fund accounts for revenues and expenditures received from tnc Federal Government, under T.E.A. and State, under Street and Highway Code Sections 2105, 2106, 2107, and 2107.5. The allocations must be spent for street maintenance or repairs; a limited amount may be spent for engineering. Lighting and Landscaping Assessment District #I - This fund accounts for lighting and landscaping assessment revenues and the related maintenance expenditures. Environmental Programs - This fund accounts for environmental fees accumulated to offset the. - cost of environmental programs budgeted in the General Fund. Development Services - This fund accounts for revenues and expenditures associated with - development in the City. Recreation - This fund accounts for the City's recreation program revenues and related program expenditures. Transportation Development Act - This fund accounts for grants received from the State of California which are used for sidewalk construction. Local Law Enforcement - This fund accounts for State Supplemental law Enforcement entitlement allocated based on population. 29 CITY OF SARATOGA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEETS JUNE 30, 2000 WITH COMPARATIVE AMOUNTS FOR JUNE 30, 1999 Lighting and Community Landscaping Development Traffic Streets Assessment Block Grant Safety and Roads District #1 ASSETS Cash and investments $84,567 S403,797 S114,271 Accounts receivable 97,920 $24,397 459,767 374 Housing rehabilitation loans receivable 450.111 Total Assets $632,598 S24,397 $863,564 SI 14,645 LIABILITIES Accounts payable S41,000 S6,406 $216,888 S6.045 Accrued Payroll 245 7,942 660 Due to other funds 141,242 17,991 Deferred revenue 450,111 Total Liabilities 632,598 24,397 224.830 0,705 FUND I3A1_ANCFS Reserved forcncumbrances 51,776 280,488 Unreserved, undesignated (51,776) 358,246 107,940 Total Fund Balances 635,734 107,940 _ Total Liabilities and Fund balances $632.598 $24,397 58h3,,,64 Sl 14,645 1'ransportation TOTALS L•nvironmental Development Development Local Law Programs _ SerViCCS ReCieatl0n Act Enforcement 2000 1999 S390,63.3 $1,396,581 S40,567 S44.893 $2,475,409 $1,410,156 67,477 6,476 565 056,976 328,627 450,111 492,501 $458,110 $1,403,157 S41,132 $44,893 S3,582,496 S2,231,284 S36; )59 S31, )76 $29,783 $369,057 $398,680 693 12,276 11,179 S774 33,768 18,476 159,233 153302 _ 450,1 1 1 492,501 37,65 - 44,-, 52 40,961 774 1,012,109 1,062 959 332,264 1,358,905 171 44,119 2,238,063 1,168,325 420,45E 1,358,905 171 _ 44.119 2,570,327 1,168,325 S458,1IQ $1,403,157 S41,132 S44,893 $3,582,496 S2,231,284 31 CITY OF SARATOGA SPECIAL REVENUE FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES _ FOR THE FISCAL YEAR ENDED JUNE 30, 2000 WITH COMPARATIVE AMOUNTS FOR I[ IF FISCAL YEAR ENDED DUNE 30, 1999 Lighting Community Landscaping Development Traffic Streets Assessment Block Grant Safety and Roads District #I —. REVENUES Property S89,404 Special assessments 157,936 Intergovernmental - State $1,093,842 Intergovernmental - Federal $97,282 _. Use of money and property 3,584 2,836 Current service charges 46,944 $150,523 143,163 — Total Revenues 147,710 150,523 1,237,005 250,176 EXPENDITURES — Current: Public safety 11,256 Environmental services 350,094 — Public works services 2,249,433 204,655 Community services Community support 156,760 Capital outlay 327,521 — Total Expenditures 156,760 11,256 2,927,038 204,655 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (9,050) 139,267 (1,690,033) 45,521 OTHER FINANCING SOURCES (USES) Operating transfers in 9,050 2,328,767 Operating transfers end (139,267) Total other Financing Sources (Uses) 9,050 (139,267) 2,328,767 EXCESS OF REVE•NI_IFS AND 01-141:R FINANCING SOURCES OVER (UNDER) EXPE'NDI I I IRFS AND OTHER FINANCING USES 638,734 45,521 Fund balances at beginning 03 year 62,419 Fund balances at end of year S638,734 $107,940 32 .Transportation TOTALS Gnvironinental Development Development Local Law Programs Services Recreation Act Lnforcement 2000 1999 $89,404 $90,150 157,936 55,505 S27,512 56,348 569,394 1,197,096 699,120 330,069 427,351 288,668 26,992 580,528 5168,375 2,455 284,770 217,777 601,718 1,925,282 687,370 3,554,900 3,322,645 986,291 2,005,810 855,745 6,348 71,849 5,711,457 4,673,865 52,752 64,008 90,486 43:3,799 1,534,1 14 2,322,996 1,961,683 2,454,088 2,833,311 1,262,24: 1,262,243 1,258,961 156,760 292,507 $2,600 330,121 73,000 438,798 1,534,114 1.262,243 2.600 52,752 6,590,210 6,509.948 547,493 471,096 (406,49i.) 3,748 19,097 (879,759) (1,83r,,()831 414,484 9,359 2,701,661 2,705,651 (330,0091 (7,816) (3,748) (480,900) (327,791 ) (130.069) 406,66S (3,748) 9,359 2,290,761 2.437,860 217,424 411,696 171 28,456 1,402,002 601,777 20''M, 4 8, 7,�(19 15.603 1.168,325 506,548 $44,119 52.570,327 St,108,325 33 CITY OF SARATOGA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CI1ANGES IN FUND BALANCES --BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2000 COMMUNITY DEVELOF"OENT BLOCK GRANT TRAFFIC SAFETY Variance Variance Favorable Favorable Budret Actual (Unfavorable) Budget Actual (Unfavorable) RLVLNLfF.S Property taxes Special assessments Intergovernmental - State Intergovernmental - Federal $234,313 S97,282 ($137,031) Use of money and property 2,000 3,584 1,584 Current service charges 46,844 46,844 146,0ou 150,523 S4,523 Total Revenues 236,313 147,710 (88,603) 146,000 150,523 4,523 EXPENDITURES Current: Public safety 22,311 11,256 11,055 Environmental services Public works services Community services Community support 315,529 156.760 158,769 Capital outlay Total Expenditures 315,529 156,760 158.769 22.311 11,256 1 i,055 EXCLSS 01 REVLNUIiti OVEK (1"NDER)EXPENDIIUPES (79.216) (9,050) 70,166 12316h9 139,267 1�.'?3 .F OTHER FINANCING SOURCES (USFS) Operating transfers in 9.050 9.050 Operating transfers (out) (123,6a91 (139.267) (15,5 _ S) Total Other Financing Sources (Uses) 9,050 9,050 (123.i S't) (139,267) (15,57 '1 FXCESS OF REVENUES AND 01 HF.R SOURCES 0% ER (L INDER) EXPENDITURES AND 0111E'.R USES (g79,216) S79.216 Fund balances at beginning of year Fund balances at end of year 34 LIGHTING AND LANDSCAPING STREETS AND ROADS ASSESSMENT DISTRICT #1 ENVIRONMENTAL PR06KAMS Variance Variance � ariancc - Favorable Iavorable lavurablc Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) S"13,750 $99,404 $15,654 157,645 157,936 291 $919,938 $1,093,842 S173,904 $20,000 $27,512 S7,512 - 224,082 (224,082) 329.390 330.069 679 2,000 2,836 836 26,992 26,992 _- 13,566 143,163 129,597 2,800 (2,800) 527,290 601,718 74,428 1,157,586 1,237,005 79,419 2"6,195 250,176 13;)81 876,680 986,291 109,611 347,876 350,084 (2,208) 537,637 438,798 98,839 -- 2,450,760 2,249.433 201,327 198,840 204,655 (5,815) 482,983 327,521 155,462 - 3.281.619 2,927,038 354,581 198,840 204,655 0.815) 531,637 438.798 98.839 (2,124,033) (1,690,033) 434A00 37,355 45.521 8.166 339.043 547,493 208,450 1.7,58 942 2.329.767 569,825 - (329,r90) (339.069) (679) 1,758,942 - 2,328,767 569,825 01-9.3901 (330.069) (679) ($365,091) 638,734 SI,003,825 $37,355 45,521 $8,166 S9.653 217.424 s207.771 62.419 - 5638.734 5 107940 $42u.458 (hnunt•edl 35 CITY OF SARATOGA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES --BUDGET AND ACTUAL. FOR THE FISCAL YEAR ENDED JUNE 30, 2000 DEVELOPMENT SERVICL'S RECREATION Variance Variance favorable Fay orablc _ Budget Actual (Unfavorable) Budget Actual (Untau orable) REVENUES Property taxes — Special assessments Intergovemmental - State Intergovernmental - Federal ISsc of money and property $80,528 $80,528 $146.500 $168,375 521.875 Current service charges $1,283,100 1,925,282 642,192 656.855 687,370 UM15 Total Revenues 1,283,100 2,005,910 722,710 803,355 855,745 52,390 EXPFNDE'I ORES ` Current Public safety Environmental services 1,493,499 1,534,114 (40,615) Public tyorks services Communitvservices 1,157,581 1,262243 (104.662) .. Community support Capital outlay Total Expenditures 1,493,499 1,534,114 (40,615) 1,157,591 1,262,243 (104.0,2) EXCESS OF RLVENUFS OVER (17NDER)EXPENDITURFti (210,399) 471,696 682,095 (354,226) (40o_498j (52,272) 01 HER FINANCING SOI RCIi S II ISES) Operating transfers in 301.724 414ASS 11I. t'l Operating transfers (out) (7,578) 17.816) t' �S) Total Other Financing Sourccs(Uses) 294,146 406.669 112.5-3 EXCESS OI R1-:A FNUES AND O MER SOURCES OVER (L:\ill:hj E\PLNI)ll liitliS :\ND U'fHh:R I.:S£S ($210,399) 471.696 $682,095 (S60,080) 171 S60.251 Fund balaucci at end of year Fund balance; at end of vear S171 36 TRANSPORTATION ULVELOFMLN'I' ACT LOCAI. LAW ENFORCEMENT Vanancc Variance Favorable Favorable Budget Actual (Gnfav(Irable) Budd, t Actual (Unfavorable) $6,348 $6,348 571,900 S69,394 (S2,506) $83,203 (83,203) 2,455 2,455 83,203 6.348 (76,955) 71.900 71,849 (51) 78.888 52,752 26,136 98,089 2,600 95,488 98,088 2,600 95,488 78.889 52,752 26,136 (14,885) 3.748 18.633 (6.988) 19.091 26,085 c.519 9.359 840 _. (a.373) (3.7U) 2.625 (6.373) 0.7441 2,625 9.519 9,359 840 -- (S21.258) $21,258 SI.531 29,456 $26.925 (Continued) 37 CITY OF SARATOGA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES --BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2000 TOTALS 1999 ` Variance favorable Budget Actual (Unfavorable) Actual REVENUES Property taxes $73,750 S89,404 $15,654 $90,150 -- Special assessments 157,645 157,936 291 55,505 Intergovernmental - State 1,011,939 1.197,096 185,258 699,120 f Intergovernmental - Federal 870,988 427,351 (443,637) 299,668 Use of money and property 150,500 284,770 134,270 217,777 Current service charges 2,629,611 3,554,900 925,289 3,322,645 Total Revenues 4,894,332 5,711,457 917,125 4,673,865 L:XPENDITURF-S Current: Public safety 101,199 64,008 37,191 90,486 Environmental services 2,379,012 2,322,996 56,016 1,961,683 Public works services 2,649,600 2,454,088 195„512 2,933,311 Community services 1,157,581 1,262,243 (104,662) 1.259,961 .� Community support 315,529 156,760 158,769 292,507, Capital outlay 581,071 330,121 250,950 73,006 Total Expenditures 7,183,992 6,590,216 593.776 6,509,97'� EXCESS OF REVEiNI IFS OVER (UNDER)L'XPENUiIURES (2,299.660) (878,759) 1,410.901 (1,836.083) OTHER FINANCING SO(jRCL'S (USES) Operating transfers in 2.069,185 2,761,661 692,476 2-765-651 Operating transters(out) (467,030) (480,900) (13,870) (321.549) Iota] Other Financing Sources(Ilses) 1,602,155 2,280,761 678,606 2,444,102 FXCESS OF R1iV1N111 S AND O'LIIER SOURCES 01, LR (UNDE R) EXPENDITURES AND OTHER USES' (S687,505) 1,402,002 $2.089.507 608,019 Fund balances at beginning of year 1.168,325 560,106 Fund balances at end of year $2,570,327 S 1,168,325 38 CITY OF SARATOGA CAPITAL PROJECTS FUND Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. Park Dewtopnaenr - is utilized to account for resources used for the acquisition and construction of major capital facilities by the City, primarily the acquisition and construction of various City parks. 39 CITY OF SARAT OGA CAPITAL PROJECTS FUND BALANCE SHEETS JUNE 30, 2000 WITH COMPARATIVE AMOUNTS FOR JUNE 30, 1999 ASSETS Cash and investments Accounts receivable Total Assets LIABILITIES Accounts payable Total Liabilities FUND BALANCE, Reserved for encumbrances Unreserved, undesignated Total Fund Balances Total Liabilities and Fund Balance 2000 1999 $2,266,636 S2,253,123 S2,266,636 S2,25 3,123 $122,672 $1.140 122,672 1.140 267.366 1,876.598 2.251.983 2,143,964 2,251.983 S2.266.636 S21253.123 40 CITY OF SARATOGA CAPITAL PROJECTS FUND STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEARS ENDED JUNE 30, 2000 AND 1999 REVENUES Current service charges Total Revenues EXPENDITURES Capital outlay Total Expenditures EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Fund balance, beginning; of the year Fund balance, end of the year 2000 1999 $223,560 $111,7SO 223,560 111,780 331,579 83,504 331,579 83,504 (108,019) 28,276 2,251,983 2,223,707 $2,14 %964 S2,251,983 41 CITY OF SARATOGA CAPITAL PROJECTS FUND STATEMENT OF REVENUES, EXPENDITURES AND CIIANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED RUNE 30, 2000 2000 Variance Favorable Budget Actual (Unfavorable) REVENUES Current service charges $111,780 $223,560 $111,780 Total Operating Revenues 111,790 223,560 111,780 EXPENDI LURES Capital outlay 603,698 331,579 272,119 Total Expenditures 603,698 331,579 272,119 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES ($491,918) (108,019) $383,899 Fund balance, beginning of the year 2,251,983 Fund balance, end of year $2,143,964 42 CITY OF SARATOGA DEBT SERVICE FUND Debt Service Funds are used to account for the payment of interest and principal on the general debt service of the City and related entities. Library Debt - Santa Clara County lease revenues are accumulated in this fund to Fay annual principal and interest payments on the 1976 library bonds. 43 oz H CITY OF SARATOGA LIBRARY DEBT SERVICE FUND BALANCE SHEET JUNE 30, 2000 WITH COMPARATIVE. AMOUNTS FOR JUNE 30, 1999 2000 1999 ASSETS Cash and investm,.nts Restricted cash and investments 5,800 --- Total As.ets $5,800 LIABILITIEiS Accounts payable S226 Total Liabilitics 226 FU14D BALANCE Rosen ed for debt service 5,574 Total i-u-id Balance 74 -- Total Liabilitics and Fund Balance S5,800 ELI CITY OF SARATOGA LIBRARY DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES _ BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDFA) JUNE 30, 2000 2000 Variance Favorable Budget Actual (Unfavorable) r REVENUES Use of money and property $94,262 $93,209 ($1,053) Total Operating Revenues 94,262 93,209 (1,053) EXPENDITURES ` Debt service: Principal 80.000 90,000 Interest and fiscal charges 13,505 18,783 (5,278) Total Expenditures 93,505 98,783 (5,278) EXCESS OF REVI[NUt.S OVER (UNDER) EXPENDI I URNS 757 (5,574) (6,331) EXCESS OF REVENUES AND OTHER F1NANfINO SOURCES OVER (UNDER) $757 (5,574) ($6,331) Fund balance, beginning of the year 5.574 Fund balance, end of year 46 CITY OF SARATOGA AGENCY FUNDS Agency Funds account for assets held by a governmental unit in the capacity of agent for individuals, governmental entities and non-public organizations. Cable T.1! Trust - This agency fund accounts for funds of the Saratoga Community Access T.V. Foundation. Assessment Districts Bonds - This fund accumulates monies for payment of Bonds for Village Parking Districts #2 and #3, the Leonard Road Improvement District and the Saratoga Public; Financing; Authority which are financed by assessments placed on the County tax roil. Deposits - This fund accounts for deposits paid to the City which are subject to refund or held solely in custodial capacity. 47 AGENCYFUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2000 _ Balance Ba l an c u June 30, 1999 Additions Reductions June 30, 2000 Cablc T.V. Trust Cash and investments $81,630 S4.073 S86,363, Deposits payable S81,630 S4,673 S86?ii Assessment Districts Bonds -- Parking District #2 Restricted Cash Parking District #3 Restricted Cash Saratoga Public Financing Authority Restricted Cash Leonard Road Assessment District Restricted Cash Total Assets Accounts payable Due to bondholders Total Liabilities is Cash and investments Accounts payable Deposits payable Total Liabilities Iola] Aacncv Funds Cash and investmems Restricted cash and investments 'Iota] Assets Accounts payable Deposits payable Due to bondholders Total Liabilities $11,871 $10,363 $1,508 9,550 $176,149 169,001 16,69S 245,165 57,546 302,711 41,153 10,653 11,477 40,329 -- $307,739 $244,348 11190,841 S361,246 $307,739 $244,348 S190.841 S361, 4;, $307,739 S244,348 S190.841 S361,24,, $398,539 $86,835 S485,3-4 - $3,020 S:.020 395,519 S86,835 (1,020) S485._- _ S398,539 S86,835 5485.3 $490,169 S91,508 S571,6-- 307,739 244,348 S190.841 361.E-: $787,908 S335,856 S190.S41 $3,020 5:.020 477,149 S91,508 307,739 244,348 190.841 361,2-•. $787,908 $335,856 S191i.84193' 48 CITY OF SARATOGA GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Asset Account Group is used to record and account for the cost of all City property and equipment except infrastructure. 49 CITY OF SARATOGA COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS BY SOURCE JUKE 30, 2000 AND 1999 GENERAL FIXED ASSETS Land and Land Improvements Building Equipment and Rolling Stock Total General Fixed Assets INVESTMENT IN GENERAL FIXED ASSETS Donations Expenditures from: General Fund Revenues Special Revenue Fund Revenues Capital Projects Fund Revenues Total General Fixed Assets 2000 1999 S4,797,848 S7.575,658 5,985,136 6.079,SS8 2,412,193 2,722,881 $13,195,177 $16,378.427 $1,500 S1,�00 11,883,918 15.111.686 876,400 829.SS2 433,359 431.359 S13,195,177 $16.378.427 50 CITY OF SARATOGA - SCHEDULE OF CHANGES IN GENERAL, FIXED ASSETS BY SOURCE FOR THE YEAR ENDED JUNE 30, 2000 Land and Land Equipment and Improvements Building Rolling Stock Total BALANCE, JUKE 30, 1999 $7,575,658 $6,079,888 $2,722.881 S16.378.427 ADDITION'S: Expenditures from: General Fund Revenues 123,622 110,853, 234.475 Special Revenue Fund Revenues 21,145 25,373 46.518 Capital Projects Fund Revenues Total Additions 144,767 136,226 2S(1.99 INVENTORY ADJUSTMENT: General Fund Revenue (2,777,810) (239,519) (446,9141 (3,464.214= 1 BALANCE,, JUNE> 30, 2000 $4,797,848 $5,985,136 $2,412,193 S13,19�.177 51 CITY OF SARATOGA — SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION JUNE 30, 2000 " Land and Land Equipment and Improvements Building _Rolling Stock Total Public Safety $356,544 $356,544 Community Environment $114,383 292,707 407,090 Public Works $468,572 5,490 799,087 1,273,149 — Recreation 45,933 78,632 267,318 391,883 Assessment Districts 51,415 51,415 _ Community Support 216 216 General Government 4,158,648 5,756,003 429,464 10,344,115 Intragovernmental 73,280 30,629 266,857 370,765 Total $4,797,848 $5,985,136 $2,412,193 $13,195,177 52 CITY OF SARATOGA GENERAL FUND REVENUES BY SOURCE LAST TEN FISCAL YEARS $2 $1 — $0 IW: 1992 1993 1994 1995 1996 1997 1998 1999 2000 -- l'ropccyy 1'axcs Franchise Fees Othcr Local Faxes Use of Molloy and Pmpcn ]uter�•uvern�nental Umem Scr io- Char,es Use of _ Other Money Current Fiscal Property Local I11tergovern- Franchise and Service Year Taxes Taxes mental Fees Property Charkcs _Total 1991 1':n ..1 •1 S 1.972.750 I . ' ; =.I IU ' `♦:610.839 S612.603 S 1,282..'44 $6,598.977 1992 2.258.079 615,059 1.1107.3-t1 7,038,372 1993 :. +•.' 180.000 209,1 [ 1 1.55,;.690 6.630,132 1994 2.-+38.826 +'' .t:•. ?58,h1 183.U61 1.5;"425 6.943.361 _ 1995 2.134.07U Ic•;.,,• 7(17.5_'2 '7'.4?5 I.')')n.ti74 7.(i96,339 1996 2.905.069 '.'»,� h60.46 343.295 ',t124,.S5.1 8,713,815 1997 2.424.825 '�i;..t.l hti5,(Iti; 665.966 '..5`'.u50 9,771,821 1998 c,i,i. l.t.l 2.202,826 I . '+'.<V I --„ 8 457,382 - 0 ; , . 18 2 - 8,526.3 , 8- 1999 2.328.(171 n'e 1.6 t? hl) 472.198 1,705.691 8.828,957 2000 2.718.358 i W-,'0" SS6.618 630.83? 2.0011.181 10,654,869 Source: City of Saratoga Annual Financial Report 53 CITY OF SARATOGA GENERAL FUND EXPENDiTuRES BY FUNCTION LAST TEN FISCAL YEARS $3,000 3.2,500 $2,000 $1,500 0 1� $1,000 $500 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 I Public Safety Public W-k, f (3cceralAwriguNemmem I Community Ln,irmancnt Rccication,( ommumi'N' Capital Outlay Community General/ Fiscal Env]IWIJIICI)tal Services & Intra- Year Public Safety Services Public Works Support _g gvemynent Capital Qu Total 1991 1,-, 2 15 49 $515.449 $7.495,823 1992 W,691) 1.955.104 10,024,094 1993 014 601,792 8,593,594 1994 240.88" 0,144,518 1995 531,607 9,370,061 1996 1 4�4, 1 177, 154.695 7,017,231 1997 j, 1 280.500 7,840,174 1998 (o �0' 220,310 5,021,873 1999 I "S 2, 211,213, 5.365.807 2000 7 -5.161,151 Source: City ot'Saratoga Annual Financial Report 54 CITY OF SARATOGA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS $3,000 $5.0 $2,500 $4.5 ■ ■ $2,000 S4.0 1 ■ � ■ -- o $1,500 i $3.5 $1,000 • • • • $3.0 ■ ■ $500 $2.s $a $, 0 1991 1')93 1995 1997 1999 1991 1993 1995 1997 1999 1992 1994 1996 1998 2000 1992 1994 1996 19W 2000 Tax Levied ■ value of property' - Value of Property Property Tax Subject to _ Fiscal Levied and Local Year Collected Tax Rate 1991 1992 1993 1994 1995 1997 2000 Sources: City of Saratoga Annual Financial Reports Calilornia Municipal Statistics Inc. (1990-1992) _ County of Santa Clara Tax Rates and Information Publication (1993-2000) 55 CITY OF SARATOGA GENERAL FUND TAX REVENUE LAST TEN FISCAL YEARS 6 5 4 it 1h 3 2 1991 1 1993 1994 1995 1996 1997 1998 1999 2000 Other "Faxes 0 Sales Tax M Property tax 0 Util. Users' Tax Uti I itv Fiscal Year Users' I'a\ Property Tax (2) Sales Tax Other Taxes (I) 1991 Y)67,41 1 M51262 1 4� S 7 S'() 1992 5 f 'S I , " S 7, 1993 9 () I S 6 1 9 1 OX, 4 1994 1.04 9iy-•t 36 00S. 1 i I 1995 1,22 106. So., 1996 1.i46.162 896.799 1 .3 3 K S 02 1997 1 -A 4 2. 1 S-1 966.901) 1. 1 -4 S A 0 1 1998 1.601.1 1.1 1.057.077 1. 1 1 i. 119 1999 1 ,804-7Ofi 979.192 1. 11-MV9 2000 1. 790.294 1.071.1212 1 . (). 1 ".2) .1) 6 (1) Other Taxes include: 'FlanSiC111 Occupancy Tax. Real I 'rope rty Transfer Tax. Construction Tax, Business i-,iccT,se rax and Animal Licenses. (2) Property tax le%y's are remitted in full by Santa Clara County which handles delinquencies and retain,; all interest and penalties. Source: City ol'Saratoga Finance Department Total $2,940,184 3,322,256 3,171.862 3384,801 3,655,166 4,511,231 4,507,279 3,866,970 4,192,837 5.508,652 56 CITY OF SARATOGA ASSESSED AND ESTIMATED ACTUAL MARKET VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS 1JJO 1997 1998 1999 20W ®� 1nsecured Property E Secured Property Fiscal Secured Unsecured Total Estimated Year Property Property Assessed Market 195r1 h,. l;r, $2,623.305,289 $2,623,305,289 19� r2 2,809.614,703 2,809,614.70, 19"r3 '. rl,r,. I . i I " .:' 2,996,971,420 2,996,971-4-') 1994 153.1?r,.3tt� :� � 3,181,662,768 3.181,662,7r_,t' 1995 3'r,1.?-41- 6.1 3,289.435,553 3,289,435. ;. 1996 ?.. h.;_9r,.4.;3.I 3,398,224.679 3,398,224.E 9 1997 :.h6n-51.;.' :? 3,697,796,461 3,697,796.461 1 W8 I I -9Q4 .. 4,029.381,944 4,029,381.944 1999 4,432.656,416 4,432,656.4 � 6 2000t.7ti!. 4.823,743,087 4,823,743.087 Source: California Municipal Statistics Inc. The California Constitution requires properties to be assessed at full market value on the date of purchase but limits increases in assessed valuation to 2" b annually. 57 $1.2 $1.0 v L $0.6 rL L $0.4 S0.2 $0.0 CITY OF SARATOGA PROPERTY TAX RATES (PER $100 OF ASSESSED VALUATION) ALL, OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS 1996 1997 1998 1999 ..... 000 d,N Peialta College ■ ichool Districts ■ Special districts ■ Caunt} Widc Levy Basic Special Fiscal Count: Wide School Districts Year Levy Districts and Other 1991 1 .1 11 ' 50.001 1 $0.0164 1992 I . (i. I I ' 0.0104 1993 1."." 1; 0.0105 1994 l .+);, i; 0_0 16 1995 I .ii.,.;' 0.090; 0.0 18 0 1996 0.111 17 1997 1.111t,5 O.U74; f1.fII 112 1998 1.ii l I' 0.0098 1999 1.1,.104c 0.0647 0.0092 2000 1 (1." 1.1 f1.0012 0.0085 Source: County of'Santa Clara Tax Rates and Information Publication 58 CITY OF SARATOGA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS WC $500 $400 $300 $200 $100 So loan 1 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Special Assessment Special Assessment Billings Fiscd and Year Collections 1991 1992 18 82. 1) 1993 1 S0.068 199-" 17, 0, -, N 0 19V 1996 2111 1997 S31111 1999 1 o 1999 () 2000 157.9.10 Source: City of Saratoga Annual Financial Reports Comprises Parking Districts #1 and #4 and Lighting and Landscaping District #1 in 1992-1998 Prior years also include Parking Districts #2 and #3 59 CITY OF SARATOGA RATIO OF GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA LAST' TEN FISCAL YEARS $5 , 5 $5.0 $4.5 $4.0 ■ $3.5 $3.0 $2,5 $2.0 $15 1991 1993 1995 1997 1999 1992 1994 1996 1991 MOO Assessed Value Fiscal Assessed Year Population VUILIC 1991 28,061 0 -, 3 1992 28,031 0 14. 1993 28,390 :.QQW) 1.4211 1994 28,709 18 1 06 2, 74- (,,S 1995 29,576 3. 4:3 . 5. 5 1996 29,579 1.:" X 1 -11 , (, 1997 30,591 6 -. - () ('' -4 j 1998 31,097 () 9. Z I,- I . 1) 4-1 1999 31,255 1-4' '.6 , 56.4 16 2000 31,320 -1. Is zj.',.(jS 7 Sources: County ol'Santa Clara Tax Rate and Ini-ormation Publication California Municipal Statistics Inc. Note: Includes Library Bonds only $10 $25 • $20 • • $15 $10 • 1991 1993 1995 1997 19)9 1992 1994 1996 1998 2(KX) • Bonded Debt Per Capita Net Bonded Bonded Dcbt Per Debt. C vita $770,000 720,000 16 670,000 24 615,000 555,000 19 490,000 1 -, 415,000 14 140,000 11 205,000 8 185,000 0 60 2.2% 2.0% 1.8% 1.4% 1.2% 1.0% 0.8% CITY OF SARATOGA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES LAST TEN FISCAL YEARS M�Abkh.� - --------------------------- ----- - ---- - ----------- ---------------------------- - -------------- - - - — 1991 ---- ----- - 199'' ------------ - 1994 - -� 1995 -- L- 1997 --- -/: 1996 -=------- _ 1998 1999------------ - 2000 Debt. Service % Percent of Total Debt Service: Fiscal 'Total General Fund to General Fund Year Principal Interest Debt Scrvice Expenditures Ex enditurc 1991 S50,000 $44,725 $94,725 $7,495,823 1.20� - 1992 50,000 43.890 93,890 10,024,094 ().941.4 1993 50,000 42,ti23 92,523 8,593,594 1.08'ii 1994 55,000 36,590 91,590 6,144.518 I .-19'I 1995 60,000 33,644 93,644 8,370.061 1.I21.4 1996 65,000 30,307 95,307 7,017,231 1. 1997 75,000 26,700 101,700 7,840,174 1.30';'r 1998 75,000 22,178 97,178 5,021,873 1 .9a':4 - 1999 75,000 18,071 93,071 5.365,807 1.7I'll 2000 80,000 18,783 98,783 6,161,151 1.60'; -- Includes General Obligation Bonds Sourer. City of Saratoga Annual Financial Reports 61 CITY OF SARATOGA DEMOGRAPHIC STATISTICS LAST TFN FISCAL YEARS 32 --------------------------- 1700 ------------------ --------------1650 -- --- ------------ ------- 31 f ---------- — --- --- ------- --------o-o--o-�-------------------� - --------- 1600 - -------------- 30 -- --- - ------------------ --- -- 1550 - ----- --------- c -- - ----- -------------------- ---- — ----- - -------------------- --- --- ---------- 1500 ---- -- ----------------------------- ---------------------- i 28 --- -------- -------- -------------------------- 1450 --- ----------- — ----------------------------------------------- — ---- 27 ------ 1400 ]991 19o2 J '993 ----------- 19911 9)', 1993 19941995, ---------------- 194 191)5 1 996 1997 996 1997 1998 --------- — -- lg,)8 1 oog ■ City county Population llop'lation l. . .. ...... Santa Clara City Fiscal City County Population Year Population _Population % of Countti 1991 "'.061 1992 1993 lt)ji1.824 1994 1.81 1995 o I Wl'f 1996 1 .8 3 1997 1 , x 5 1998 1 s 4 "1 1999 L 82 2000 1.3 If I Source: Stab- of California Department of Financc - Population Research Unit 62 CITY OF SARATOGA PROPERTY VALUES, REMODELING AND CONSTRUCTION LAST TEN FISCAL YEARS $5.0 $4.0 $3.0 $2.0 $1.0 Soo 1991 1993 1995 1997 1999 1992 1994 1996 1999 2000 Property Values $60 $ 5 0 $40 $30 $20 $10 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Residential Remodeling & Construction $7 ....... $400 $6 $300 o $4 $200 $1 S100 $ so 1941 1993 1995 1997 1999 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1992 1994 1996 199E 2000 Commercial Remodeling II & Construction Batik Deposits, Commercial Remodeling Residential Remodeling and Construction . .. ....... and Construction . .. ...... . Fiscal Property Number Number Bank Year Values, of Permits Value of Permits Value Deposits 1991 .30 1371).,,()0 2,556 -,2S.0-4().�0o 19921 .53 61 1 2,493 1993 67 547.>02 2,481 20. 1 1.'40 1994 94 L509.805 2,653 1995 .57 L 147,7 11) 3,194 34;.0-" [ ('0 1996 69 1. 17 1, il, 2,535 0 0. 0 1 ".8 1) 1997 .52 S41.020 1,834 44.982.97-1 1998 47 1,844 4S. 2.' (). 11) 4 1999 "o .114, 66 1,916 66.2 I S. 150 2000 !;.11:C 57 4, 302,1,"5 1,960 65.90 1, 10' Source: City ol-Sarato;za Building Departnim Bank Deposits from Findley Reports and SheslicnoffInt"ormation Services 63 CITY OF SARATOGA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 2000 ASSESSED VALUE $4 823 743, 887 BONDED DEBT LIMIT (151/. OF ASSESSED VALUE) $723,561,463 AMOUNT OF DEBT SUBJECT TO LIMIT: Total Long Term Debt 185,000 LEGAL DEBT MARGIN $723,376,463 SOURCE: CITY OF SARATOGA FINANCE DEPARTMENT E CITY OF SARATOGA COMPUTATION OF DIRECT AND OVERLAPPING DEIST JUNE 30, 2000 PERCENTAGE AMOUNT APPLICABLE APPLICABLE TO CITY OF TO CITY OF SARATOGA SARATOGA DIRECT AND OVFRF.APPtTIG TAX AND ASSESSMENT DEBT: Santa Clara County Flood Control and Water Conservation District Zone NC -I 11.473% $101,5-.6 Santa Clara County Flood Control and Water Conservation District Zone W-1 3.643`,,' 426,049 Foothill -De Anza Community College District 1.815°%0 1,814,910 Fremont Union high School District 3.700°%0 1,406,000 Los Gatos Joint Union High School District 39.338".0 7,366,041 Campbell Union HighSchool District 5.644% 1,128,800 Campbell Union School District 7.2339,�d 3,050,757 Cupertino Union School District 6.443°io 4,434,394 Moreland School District 12.746% 303,3=19 Saratoga Union School District 86.546% 34,812,413 Midpeninsula Regional Open Space Park District 6.1150,'6 2,425,635 City of Saratoga 100.0000,10, 185,000 City of Saratoga 1915 Act Bonds 100.000170 765,000 TOTAL GROSS DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 61,719,884 Less: Santa Clara County Fc and l4%CD, Zone NC -I (100,'o Self Supporting) 101,5>6 TOTAL NET DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 61,618,348 DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT _ Santa Clara County General Fund Obligations 3.475% 17,Sy7,293 Santa Clara County Board of Fducation Certificates of Participation 3.4751'0 682,143 Foothill-DeAnza CornmUnity College District Ccrtiticates of Participation 1-IS I5411� 623,634 West Valley Community College District Certificates of Participation 10.482`4, 2,264,1 : 2 Campbell Union School District Certificates of Participation 7 233 831,795 Cupertino Union School District Certificates of Participation 6.441% 741,5&9 Moreland School District Certificates of Participation 12-746`,o ?69,299 _. Midpeninsula Regional Open Space Park District Certificates of Participation 6.115",;0 4,545,171 Santa Clara Valley Water District Certificates of Participation 3.475� 4,392,41 Santa Clara County Central Fire District Certificates of Participation 14.066,'0 67,91� f TOTAL DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT 32,506,3"0 GROSS COMBINED TOTAL DEBT S94,526,25-1 NET COMBINED TOTAI, DEBT $94,424,7 c (.) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligation. Ratios to Assessed Valuation: Direct Debt $185,000 0.004% _ Total Gross Debt and Overlapping Tax and Assessment Debt 1 289%0 Total Net Direct and Overlapping Tax and Assessment Debt Gross Combined Total Debt 1.961� Net Combined Total Debt 1.960i0' SOURCE: California Municipal Statistics, Inc. m" CITY OF SARATOGA PRINCIPAL TAXPAYERS JUNE 30, 2000 _. Percent of Assessed "Total Assessed Assessee Use Value Value - Income Opportunity Saratoga Co. Office Building $10,603,125 0.22% Carson Estate Company Shopping Center 8,630,000 0.18% San ,lose Water Works Water Utility 11,388,740 0.24% Argonaut Associates LLC Shopping Center 3,957,896 0.08% Inn at Saratoga, Inc. Commercial 4,062,020 0.08% Public: Storage Props IX Inc. Warehousing 7,735,653 0.16% Pfeiffer Ranch Investors Inc. Single Family Residential 9,374,682 0.19% Baglierand 14efayat Navid Single Family Residential 5,882,768 0.12% Dr. Walter Donald Head Office Building 4,466,628 0.09% Cali Investments Commercial 4,123,950 0.09% Dannz. Blue Hills LLC Office Building 4,685,238 0.10% George and Gloria Janac Single Family Residential 3,469,875 0.07% John 11. and Judy It I lart Single Family Residential 4,519,677 0.09% Ray A. Russo, Sr., Trustee Commercial 4,136,180 0.09% Saratoga Oaks LLC: Office Building 3,921,340 0.08% David I.. House Single Family Residential 4,013,489 0.08% Ronnoco Saratoga Properties Office Building 3.550,000 0.07% William G. and Marguerite Paseman Single Family Residential 3,510,000 0,07% August Partners 11 Commercial 3,412,735 0.07% Peninsula Recreation Inc. Commercial 3,272,911 0.07% Totals $108,716,907 2.25% Total :assessed valuation $4,823,743,087 SOURCE: CALIFORNIA NC IMCIPAL STATISTICS 66 CITY OF S,aRATOGA MISCELLANEOI IS STATISTICS JL.RvF. 30.2000 Date of Incorporation Farm of Governnn:nt —L'nrp (owes: C'ily Manager's Office Recrca[ion Ill Works%Maintenance Community Devchipment Finance Total Area Miles of Streets Lenkllr aj'srorm drums Fire Protccrioir Saratoga Fire District Number ofstations Numbcr of firefighters Number nfreserve frefightcrs Central Fire District Number of stations Number of firefighters Number of reserve firefighters Police Proreclinn. Nuntl,cr of sLvtions Dumber ol'police offieers Number of support personnel San lose water Company Number of meters Average daily consumption I.Cn_,Iii of water rnains I,eneth of Storm Drains See cr: West Vallcv Sanitation District Numbcr of uznnectiuns I..ength of sclacr lines Cuperbro S;mitalion District Numbcr of a1111ceti011s length of sewer lines Culture and Rect—o- Parks Acres in parks zr,t rrr�-.a./_ K,gr;rcred Durcrs Pnjru6lrtorr SOURCES: VARIOUS CITY Rl,:, ORIIS 1956 Council -Manager 5 9 19 9 9 51 13 Square miles 250 45 Miles 1 24 20 3 12 32 1 65 4 Il,Yizti 32 Gallons perhou;ehold 4s Miles 8,0 _ 1 t 22' Miles 2.0-4 35 Miles 14 4It. 20 Acres $107,1 12,247 1S.0,,x 31,320 67