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ACFR - Fiscal Year 2000 01 (PDF)
Te:-�ff.--7 - City of Saratoga California Be' Fic.IJ Paoli _ Comprehensive Annual Financial Report June 30, 2001 CITY OF SARATOGA, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2001 Prepared By: ADMINISTRATIVE SERVICES DEPARTMENT 29j~ City of Saratoga Comprehensive Annual Financial Report For the year ended June 30, 2001 Table of Contents Page Introductor.j Sec:tion Table of Contents................................................... i Letterof Transmittal.....................................................................................................................................v Certificate of Achievement for Excellence in Financial Reporting- Government Finance Officers Association......................................................................................xiii -- Principal Officials of the City...................................................................................................................xiv OrganizationChart.....................................................................................................................................xv Financial Section -- Independent Auditors' Report...................................................................................................................1 General Purpose Financial Statements.....................................................................................................3 Combined Balance Sheet-All Fund Types and Account Groups....................................................4 --- Combined Statement of Revenues,Expenditures and Changes in Fund Balances - AllGovernmental Fund Types.......................................................................................................7 -- Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -All Governmental Fund Types...................................................................8 Index to Notes to General Purpose Financial Statements..............................................................-11 Notes to General Purpose Financial Statements...............................................................................13 Required Supplementary Information......................................................................................................36 - Supplementary Information GeneralFund................................................................................................................................................37 BalanceSheet......................................................................... .................................................................38 Statement of Revenues, Expenditures, and Changes in Fund Balances........................................39 Statement of Revenues,Expenditures,and Changes in Fund Balances- Budgetand. Actual......................................................... ................................................................40 City of Saratoga - Comprehensive Annual Financial Report For the year ended June 30, 2001 _ Table of Contents, Continued Page Supplementary Information, Continued SpecialRevenue Funds..............................................................................................................................41 CombiningBalance Sheet.....................................................................................................................42 Combining Statement of Revenues, Expenditures and Changes in Fund Balance s....................44 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Budgetand Actual..........................................................................................................................46 - CapitalProjects Fund.................................................................................................................................51 CombiningBalance Sheet.....................................................................................................................52 Combining Statement of Revenues,Expenditures and Changes in Fund Balances....................53 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances- Budgetand Actual.......................................................................................................... DebtService Fund ......................................................................................................................................57 BalanceSheet..........................................................................................................................................58 - Statement of Revenues, Expenditures and Changes in Fund Balances.........................................59 Statement of Revenues,Expenditures,and Changes in Fund Balances- Budgetand Actual..........................................................................................................................60 AgencyFunds..............................................................................................................................................61 - Combining Statement of Changes in Assets and Liabilities............................................................62 AccountGroups...........................................................................................................................................63 Schedule of General Fixed Assets - By Source..................................................................................64 - Schedule of Changes in General Fixed Assets - By Function..........................................................65 Schedule of General Fixed Assets-By Function...............................................................................66 Scheduleof General Long-Term Debt................................................................................................67 City of Saratoga Comprehensive Annual Financial Report For the year ended June 30, 2001 Table of Contents, Continued _. Page Statistical Section General Fund KCVeIIUeS--By Source- Last Ten Fiscal Years................................................................70 General Fund Expenditures- By Function-Last Ten Fiscal Years..................................................... Property-Tax Levies and Collections-Last fen Fiscal Years........................ General Fund Tax Revenue-Last Ten Fiscal Years ...............................................................................73 Assessed and Estimated Actual Value of Taxable Property - LastTen Fiscal Years.......... -•............................................................................... .................................74 Property Tax Rates (Per ,)100 of Assessed Valuation} - All Overlapping Govermnents- LastTen Fiscal Years.............................................................................................................................75 Special Assessment: Billings and Collections-Last Ten Fiscal Years ..................................................76 Ratio of General Obligations Bonded Debt to Assessed Value and Bonded Debt Per Capita -Last Ten Fiscal Years..............................................................................77 Ratio of.Annual Debt Service Expenditures for General Bonded Debt to Total. General Fund Expenditures-Last Ten Fiscal Years..............................................................78 Demographic Statistics- Last Ten Fiscal Years................................................. ...79 Property Values, Remodeling and Construction-Dist Ten Fiscal Years............................................`L) Computationof Leal Debt Margin..------..-•............................................ .................................--...---.81 Computation of Le;:;al Debt Margin..........................................................................................................82 PrincipalTax Pave rs.....................................................................................................................................83 Mi-,cellaneous Statistical Data....................................................................................................................84 _ E7 ��sis��o� �.'i 1 D', u'{s�j� ��� r, J ;•� :, i'r� �-.iG,'.f..i 1 �� /`ryr Z� ��� �^" Je �r( V� U �7 :- r ,. �� -f �'` �_ C� C �C� C � 137771 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 • (408.) 868-1200 ('01:NCILINTENIRERS: Incorporated October 22, 1956 Ann November 7, 2001 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, 2001, 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 an independent firm of certified public accountants audit this report. 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 manner 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 enable 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 a certificate of award for financial 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 data from these units are combined with data 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. V ,,IrintF'e on r(cyci6u,papeo, Governmental Structure and Related Information The City, incorporated in 1956, is located 40 mules 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 29,843 as reported by the 2000 U.S. Census. The City is a general law city of the State of California and operates under a council-manager form of government. Policymaking and legislative authority are vested in the City Council, which consists of a Mayor, Vice Mayor and three additional council members. City Council members are elected at-large for staggered four- _ year terms. The Mayor is selected annually by the City Council. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing members to the City's seven advisory commissions and hiring the City Manager and City Attorney. The City Manager is _ responsible for implementing the policies and ordinances of the City Council, overseeing the daily operations of the City, and recommending appointments of the City's department directors to the City Council. _ The City provides a limited range of services including public safety, development regulation, public works,community and recreation activities and events, and general administrative functions. 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 — 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 Arts 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 and reflected a 16% increase over last year. By fiscal year-end, sales were beginning to flatten out and some business sectors were showing a slight decrease in sales tax revenue, with light industry, office and electronic equipment declining overall. The region's sustained economy continued to drive-up assessed valuations of real property, as vi ` new homes were built and major remodels triggered reassessment. The City's valuation's _ increased 11% from 2000 to 2001, but actual property tax receipts declined by $725,200 as the result of phasing out property taxes that were tied to a discontinued local tax and a one-time reimbursement in 1999-00. Property tax receipts still exceeded budget projections by about - $287,000 and continue to be the single, largest source of revenue for the City's General Fund. Similarly, Motor Vehicle License Fees remitted to the City by the State surpassed budgeted amounts by more than $300,000 and interest earnings on the City's investment portfolio by more than $600,000. These factors, coupled with the fiscal and organizational reforms enacted by the City in 1997 to deal with the loss of the City's Utility Users Tax (UUT), and the subsequent issuance of a $15,000,000 bond for the library expansion that will reinstate the property tax -- reduction, have placed the City in a healthy fiscal condition at the end of 2000-01. 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 conservative assumptions about the future performance of the economy, suggests that the City will continue to exist in a stable and healthy financial position during this time. Saratoga continues to support policies and practices intended to maintain the City's financial integrity. For example, a minimum $2.2 million General Fund operating reserve is maintained and a $200,000 contingency appropriation; as well as a $1.5 million economic uncertainty reserve beginning in FY 2001-2002. 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. — Financial Information and Major Initiatives Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is _ designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1)the cost of a control should not exceed benefits _ likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state and local financial assistance, the City is also responsible for guaranteeing that an adequate internal control structure is in place to ensure and document compliance with. applicable laws and regulations related to these programs. This internal control _ structure is subject to periodic evaluation by the City's management. In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by vii the City Council. Activities of the general fund, special revenue funds, capital projects funds and debt service funds are included in the annual appropriation. The level of budgetary control (i.e., the level at which expenditures cannot exceed the appropriated amount) is at fund level. The City also maintains an encumbrance accounting system as another method of maintaining budgetary control. Encumbered amounts of the operating budget 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 project funds and debt service funds revenues for the year ended June 30,2001. Increase Total % Of (Decrease) from Revenues FY 2000-01 Total FY 1999-00 Property taxes $ 2,170,795 12% $ (708,903) Special assessments 95,973 1 (61,963) Other local taxes 2,938,209 16 219,850 Intergovernmental-State 5,133,146 28 2,312,467 _ Intergovernmental-Federal 291,228 2 (136,122) Franchise fees 876,652 5 (9,966) Use of money and property 1,450,778 8 394,984 Current service charges 4,085,193 22 (166,544) Reimbursement of interfund cost allocations 1,467,466 8 (17,452) Total revenues and transfers $18,509,440 100%v 1,826,351 The largest source of revenues citywide in 2000-2001 was received from the State due to a $2,006,000 State Park Bond grant for improving the Saratoga-Sunnyvale corridor and $1,725,765 in motor vehicle license fees. Current service charges are the second largest, comprising about 22% _ of total revenues, of which development-related fees make up over 45% of the charges. Property taxes and other local taxes (primarily sales taxes) also generate significant revenues for the City. All revenue sources in 2000-01, other than State revenues, Local taxes and Use of money and property, decreased slightly from the prior year. An increase occurred in local taxes due to higher sales taxes and an award of California Law Enforcement Equipment Program (CLEEP) monies for -- high technology equipment for public safety. Use of money and property increased due to higher than expected interest earnings on investments. As previously mentioned, property taxes and special assessments declined due to the final reduction in Tax Equity Allocation (TEA) payments for the discontinuance of the UUT in 1996. Of the $700,000 decrease in property taxes from the VZ11 prior year, TEA accounted for $243,000 of the reduction, and a reimbursement in 1999-00 of $595,700 from the County for TEA monies withheld from 97/98 and 98/99, resulted in a further year-to-year variance. The schedule below summarizes general fund, special revenue funds, capital projects funds and debt service funds expenditures for the year ended June 30, 2001. Increase Total % Of (Decrease)from Expenditures FY 2000-01 Total FY 1999-00 Current: Public safety $3,15 l,621 22% 325,872 -- Environmental services 714,549 5 (72,098) Public works services 2,937,056 20 (532,431) Community services 1,601,088 11 96,342 -- Development services 1,903,568 13 308,726 General and inter-governmental services 1,580,777 11 79,182 Capital outlay 2,571,210 18 1,171,330 Debt Service: Principal 85,000 5,000 Interest 9,774 (9,009) Total expenditures and transfers $14,554,643 100% $1,372,914 The contract with the County Sheriff's Office for public safety services is the single largest component of the City's operating expenditures. The change from the prior year is due to a contract increase in traffic patrol services. The sizeable increase in capital outlay expenditures reflects the library expansion project that began in May of this year. Development Services increased 20% from the prior year in order to keep up with building activity and due to vacant positions being filled. Public works services decreased as implementation of the pavement management program (PMP) was delayed to complete a pavement management survey. General Fund Balance. The fund balance of the General Fund increased by $2,989,177 to $12,074,797 during the fiscal year. As previously discussed, General Fund revenues and departmental expenditures changed only slightly from the prior year. The one significant change that increased the fund balance was the decrease in General Fund transfers, most specifically the $2,369,000 transfer to the Street and Roads Special Revenue Fund. The actual transfer for Public Works was $136,000, a decrease of$2,233,000 as a result of delaying the PMP and the 'Sunnyvale- Saratoga corridor project. Debt Administration. At year-end, the City had an $85,000 general obligation bond debt outstanding, which is repayable from lease revenues from the County of Santa Clara for the Saratoga Library. However, in March 2000, the citizens of Saratoga approved an increase in their property tax rate to pay for the debt service payments on new Library General Obligation Bonds in ix the amount of$15,000,000 for the Library Expansion project. The Library bonds were issued in May 2001, and the debt service payments begin in February 2002. The proceeds from the issuance and the accrued interest on the bonds are listed on the financial statements as Proceeds from long- term debt under Other Financing Sources. — Cash Management Policies and Practices. Excess cash revenues were invested in U.S. Treasury securities, certificates of deposit, and the California Local Agency Investment Fund (LAIF) during fiscal year 2000-01. At June 30, 2001, investments in the City Treasury matured in less than one year. The City's overall average rate of return on investments was 6.1% in fiscal year 2000-01. 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, 2001, 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 Caporicci, Cropper & Larson, LLP, 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 set forth in the General Accounting Office's 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, 2000. 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 - Acknowledgements. 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 Mary Jo Walker, who as Administrative Services Director until July 2001, kept the City's accounts in good order, and to Fray Galindo, the City's Accounting Supervisor. We commend Ray for his professionalism and commitment to excellence. Furthermore, we would like to thank Caporicci, Cropper & Larson 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. Respectfully submitted, Dave Anderson Melissa W. Eddy City Manager Interim Finance Director Xi t (Q3 f�7 hL •I- - G\•gib�,.:. -ti[rS I,J Ii S I� I, 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, 2000 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 systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting- LIE OFFkf Q� Of TiIE 9 UNRED STATES H w 4NC �, CACORP AZA res'dent Executive Director CITY OF SARATOGA ELECTED OFFICIALS AND _ ADMINISTRATIVE PERSONNEL As of _ JUNE 30, 2001 CITY COUNCIL _ John Mehaffey—Mayor Nick Streit—Vice Mayor _ Evan Baker Stan Bogosian Ann Waltonsmith _ CITY STAFF Dave Anderson—City Manager Lorie Tinfow— Assistant City Manager Mary Jo Walker—Administrative Services Director Tom Sullivan—Community Development Director Joan M. Pisani—Recreation Director John Cherbone— Public Works Director CITY ATTORNEY Richard S. Taylor Xis _ o T C N Vl Oi C O LLJ N W W om M F U V7 N 7 C LL 9 LL LL -5 L �.N O U U) O N W U CUi N m O N V a d N ?.�- U a u N CC LL a vy °� S H U d cn a 'm0 LL - d 0 O V mQ u _� E °JfL _ cn �p a) _ O a ai _ y 0 C ° c N ci a�� N 'o n °J] Z D 4 — , wcn — U U _ m C LL U C q C U O C m U n v N C W C C m Y y` C (O U W is L V 1n N 2 ++ •�' O O a x s 3 U O N C Q � a N S LL U H m N z 0 Z W�. Cn LL O - 10 Q O N V C ,y O a =' N C 11,vj m ° __ LL U Q O T C a LL 0 Q � c d C O w Q� p U N W C v y Q� rn V O LL LL LL co > CJ LU O rJ.n W O U U H v R v Q O C d c LL C r� u p E as 0 3 11 0 m C) .E o a� m o T E LL U T LL � m C cn a Sao 1 O m c s o a ILLI —1 -IG 0 N C C � � c W o E R ti w �w m m O � TUl~i o a T u d 0 U p �-' u� CO LO w W d nN : aUF- N V LL -> W T 47 m _-. C LL (n O L C m u G� °m ° n ++ cr a o m GJ cn � � U V 1'1 C i1J YA C ro� C N � O N � � a U N u LL U - LL W W _a O m`a U v— " w rn 3 _- co E E m ~-- w m ¢ C ° CL C N — C� G O d cn W w d ° E E Q U U O x�• q � �2, 5 �y�§ �@ «�/� �� ~ � ��� � � . . �® � � � �~� �� � � - �> ` . �A\ �/� !�2 ��% x _ \ � - ���pm,�s«�: ® ~��6�»\�»0- TOffices located in: L Bay Area Caporicci, Cropper&Larson,LLP Orange County CerNfled Public Accountants Sacramento INDEPENDENT AUDITORS' REPORT The I ionorable Mayor and Members of the City Council - of the City of Saratoga Saratoga, California - We have audited the general purpose financial statements of the City of Saratoga, California (City) as of and for the year ended June 30, 2001, as listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the City's management. Our - responsibility is to express an opinion on these general purpose financial statements based on our audit. -- We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Govcmnienr Aaditirr�, Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial staterents 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 estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit 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 as of June .30, 2001, and the results of its operations and changes in fund balances for the year then ended in conformity with accounting principles generally accepted in the united States. - As discussed in Note 1 to the general purpose financial statements, the City changed in 2001 its method of accc-unting and financial reporting for non-exchange transactions to conform to Governmental Accounting Standards Board Statement No.33. - Our audit was made for the purpose of forming an opinion tin the general purpose financial statements taken as a whole. The accompanying combining, individual fund and account group financial statements and schedules listed as supplementary information in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. This information is the responsibility of the City. This additional information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respect, in relation to the general purpose financial statements taken as a whole. The statistical information listed in the foregoing table of contents N as not audited. by us and, - accordingly, we express no opinion on the statistical section. - cei .e°it,���aac. , � .ae•�-, C[P September 13,2001 _ Oakland, California 11 11 DroaLhvag,Sulu:2300,I)akkind,California 916O.7 lull Prcc Tcl:•.`.R„)863-2200 'I'ol[I'n r Pax:(fiOG) 136-092- +I - i 1�7 4�f � CITY OF SARATOGA _. GENERAL PURPOSE FINANCIAL STATEMENTS - The following combined financial statements, along with the notes to the general purpose financial statements, present an overview of the City's financial position and results of operations. Individual fund 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 Irovernmental functions. The governmental fund measurement focus is on the "current financial resources" 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 unmature3 principal of general long-term o3ligations.Assets and liabilities of these funds are neither spendable resources, nor do they require current appropriation.Therefore,they are accounted for separately from the governmental fund types. 3 City of Saratoga Combined Balance Sheet All Fund Types and Account Groups June 30, 2001 Governmental Fund Types Special Capital Debt General Revenue Projects Service ASSETS AND OTHER DEBITS Assets: Cash and investments(Note 2) $ 11,604,681 $ 4,985,731 $ 2,628,336 $ 16,284 Restricted cash and investments(Notes 2) 8,400 103,461 13,538,773 - -- Receivables: Accounts 175,883 440,409 - Interest 279,909 - 60,969 _ Loans Note 3) - 425,463 - Prepaid items 4,625 5,585 - Due from other funds(Note 4A) 111,104 - Adv,mces to other funds(Note 413) 309,162 - - Fixed assets(Note 5) - - - - Other Debits: Amount available for debt service - Amount to be provided for debt service - - Total assets and other debits $ 12,493,764 $ 5,962,F,49 $ 16,228,078 $ 16,284 LIABILITIES,FUND BALANCES AND OTHER CREDITS Liabilities: Accounts payable $ 277,585 S 199,761 $ 231,034 5 - Accrued p,iyroll 91,382 37,254 - _ Due to other tunds (Note:4A) - 111,104 - - Due to assessment district bondholders - - - Deposits payable - 9,900 - Deferred revenue - 425,463 - Advances from other funds(Note:413) - 309,162 - Claims payable (Note 6) 5(}(}{l0 - - 1,ong-term debt(Note t)): General obligation bonds - - - Compensated absences - - - Total liabilities 418,967 1,092,644 231,034 ` Fund Balances and Other Credits: Other credits: Investment in general fixed assets - - - - Fund balances(Note 8): Reserved 324,114 5,585 16,284 Unreserved,designated 2,238,266 - - - Unreserved,undesignated 1),512,417 4,864,420 15,997,044 Total fund balances and other credits 12,074,7y7 4,870,00; 15,997,044 16,284 Total liabilities,fund balances and other credits $ 12,49',7 h4 $ 5,962,649 h lo,225,078 $ lh 28 4 See accornpanving notes to financial statements. 4 ` Fiduciary Fund Type Account Groups General Totals General Long-Term (Memorandum Ayency Fixed Assets Obligations Only) $ 833,569 $ - $ - $ 20,068,601 31.5,988 - - 13,968,622 49,070 - - 665,362 - - 340,878 425,463 111,104 - - 309,162 - - 112,331,927 - 112,331,927 - 16,284 16,284 - 15,265,666 15,265,666 $ 1,198,627 $ 112 331,927 $ 15,281,950 $ 163,513,279 $ $ - S 08380 128,636 - - - 111,104 370,664 - - 370,664 827,963 - - 837,863 - - - 425,463 - - - - 309,162 - 50,000 100,000 -- - - 15,100,000 15,100,000 - - 1-11,950 131,950 1,198,627 - 15,281,950 18,223,222 112,331,927 - 112,331,927 - - 345,983 'l & - - 2,238,266 j - - - 30,373,8§1 112,331,927 - 145,290,057 1,198,627 $ 112,331,927 $ 15,281,950 $ 163,513,279 5 I' City of Saratoga Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types For the year ended June 30, 2001 Governmental Fund Types _ Totals Special Capital Debt (Memorandurn General Revenue Projects Service _ Only) REVENUES: Property taxes $ 2,065,051 $ 105744 $ - $ $ 2,170,795 Special assessments - 95,973 - - 95,973 Other local taxes 2,938,209 - - 2,938,209 Intergovernmental-State 1,725,765 3,407,381 - - 5,133,146 Intergovernmental-Federal - 291,228 - - 291,228 Franchise fees 876,652 - - - 876,652 Use of money and property 930,430 339,481 69,809 111,058 1,450,778 Current service charges 494,656 3,477,053 113,484 - 4,085,193 Reimbursement of interfund cost allocations 1,467,466 - - - 1,467,466 Total revenues 10,498,229 7,716,860 183,293 111,058 18,509,440 EXPENDITURES: Current: Public safety 3,062,160 89,461 - - 3,151,621 Environmental services - 714,549 - - 7 14,549 -- Public works services 1,349,838 1,407,313 - - 2,757,1a1 Community services 262,696 1,338,397 - - 1,601,093 General and intergovernmental services 1,574,51i7 - - 1,574,597 _- Development services 140,SS3 1,762,671 - - 1,903,554 Capital outlay 651,814 667,089 1,438,401 - 2,757,304 Debt service: Principal - - - 85,000 85,000 Interest and fiscal charges - - - 9,774 9,774 Total expenditures 7,041,988 5,979,480 1,438,401 94,774 1.4,554,643 REVENUES OVER(UNDER) EXPENDITURES 3,456,241 1,737,380 (1,255,108) 16,284 3,954,797 OTHER FINANCING SOURCES (USES): Proceeds from long-term debt - - 15,108,188 - 15,108,188 Operating transfers in(dote 4C) 69,917 605,588 - - 675,505 Operating transfers out(Note 4C) (536,981) (138,.524) - - (675,505) Total other financing sources (uses) (467,064) 467,064 15,108,188 - 15,108,188 REVENUES AND OTHER FINANCING SOURCES OVER -• (UNDER)EXPENDITURES AND OTHER FINANCING USES 2,989,177 2,204,444 13,853,080 16,284 19,062,985 FUND BALANCES: Beginning of year,as restated 9,085,620 2,665,561 2,143,964 - 13,895145 End of year S 12,074,797 $ 4,870,005 $ 15,997,044 $ 16,281 $ 32,958,130 See accompanying notes to financial statements. 7 City of Saratoga Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types For the year ended June 30, 2001 General Fund Special Revenue funds Variance Variance Favorable Favorable - Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Property taxes $ 1,777,705 $ 2,065,051 $ 287,346 $ 73,750 $ 105,744 $ 31,994 - Special assessments 620,000 - (620,000) 102,204 95,973 (6,231) Other local taxes 2,428,310 2,938,209 509,899 - - - inter-overnmental-State 1,457,203 1,725,765 268,562 4,381,257 3,407,381 (973,876) - Intergovernmental-Federal - - - 941,622 291,228 (650,394) Franchise fees 787,796 876,652 88,856 - - - Use of money and property 465,652 930,430 464,778 155,800 339,481 183,681 Current service charges 833,901 494,656 (339,245) 3,173,100 3,477,053 303,953 Reimbursement of interfund cost allocations 1,467,466 1,467,466 - - - - Total revenues 9,838,033 10,498,229 660,196 8,827,733 7,716,860 (1,110,873) EXPENDITURES: Current: Public safety 3,215,018 3,062,160 152,858 112,896 89,461 23,435 - Environmental services - - - 1,052,486 714,549 337,937 Public works services 1,740,566 1,349,838 390,728 3,237,453 1,407,313 1,830,140 Community services 321,135 262,696 58,439 1,397,306 1,338,397 58,909 - General and intragovernmental services 1,678,807 1,574,597 104,210 - - - Development services 195,491 140,883 44,608 1,939,577 1,762,671 176,906 Capital outlay 1,518,790 651,814 866,976 3,342,720 667,089 2,675,631 - Debt service: Principal - - - - - - Interest and fiscal charges - - - - - - Total expenditures 8,659,807 7,041,988 1,617,819 11,082,438 5,979,480 5,102,958 - REVENUES OVER(UNDER) EXPENDITURES 1,178,226 3,456,241 2,278,015 (2,254,705) 1,737,380 3,992,085 OTHER FINANCING SOURCES(USES): Proceeds from long;-term debt - - - - - - - Operating transfers in(Note 4C) 35,000 69,917 34,917 2,830,446 605,588 (2,224,858) Operating transfers out(Note 4C) (3,414,529) (536,981) 2,877,548 (426,981) (138,524) 288,457 Total other financing sources(uses) (3,379,529) (467,064) 2,912,465 2,403,465 467,064 (1,93(,,401) REVENUES AND OTHER - FINANCING SOURCES OVER (UNDER)EXPENDITURES AND OTHER FINANCING USES $ {2,201,303) 2,989,177 $ 5,190,480 S 148,760 2,204,444 $ 2,05_684 FUND BALANCES: Beginning of year,as restated 9,085,620 2,665,561 End of year $12,074,797 4,870,005 See accompanying notes to financial statements. ` 8 Capital Projects Fund Debt Service Fund Totals Variance Variance Variance Favorable Favorable Favorable Budget Actual _ (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable:) $ $ - $ - $ - $ - $ $ 1,851,455 $ 2,17C,795 $ 319,340 - 722,204 95,973 (626,231) - 2,428,310 2,93F,209 509,899 - - 5,838,460 5,13 ,146 (705,314) 941,622 291,228 (650,399) - - 787,796 87(-,652 88,856 69,809 69,809 93,678 111,058 17,380 715,130 1,45C,778 735,645 93,150 113,484 20,334 - - - 4,100,151 4,085,193 (14,95S) - -_ - - - - 1,467,466 1,467,466 93'.150 183,293- 90,143 93,678 111,058 _ 17,380 18,852,594 18,509,440 (343,154) - - - - - 3,327,914 3,157,621 176,293 .- - - - - 1,052,486 714,549 3.37,937 - - - 4,978,019 2,757,151 2,2.20,8(-)8 - - - - 1,718,441 1,601,093 117,34E 1,678,807 1,574,597 104,210 - - - - - 2,125,068 1,903,554 221,514 4,367,551 1,438,401 2,929,150 - - - 9,229,06-1 2,757,304 6,471,757 - - - 85,000 85,000 - 85,000 85,000 - - - - 9,774 9,774 _ - 9,774 9,774 - 4,367,551 1,438,401 2,929,150 94,774 94,774 - 24,204,570 14,554,643 9,619,927 _ (4,274,401) (1,255,108) 3,019,293 (1,096) 16,284 17,380 (5,351,976) 3,954,797 9,306,773 1,000,()00 15,108,188 14,108,188 - 1,()00,0()0 15,108,188 14,108,188 -. 10,000 - (10,000) - - 2,875,446 675,505 (2,199,941) - - - - _ - (3,1,41,510) (675.505) 3,166,005 1,()10,()0() - 15,108,188 14,098,188 - - - 33,936 -15,108,188 15,0:74,252 $(3,264,401) 13,853,080 $17,117,481 $ (1,096) 16,284 $ 17,380 $ (5,318,040) 19,062,985 $24,381402-5 2,143,964 - 3,ti95,145 $15,997,044 S 16,284 $32,958,130 9 2 Q c — � + �, L5� � City of Saratoga - Index to Notes to General Purpose Financial Statements For the year ended June 30, 2001 Pale Note 1 - Summary of Significant Accounting Policies ..........................................................13 - Financial Reporting Entity.............................................................................................13 FundAccounting.............................................................................................................14 Measurement Focus........................................................................................................15 Basis of.Accounting............................................... .............15 ............................................. Budgets and Budgetary Accounting ..........................................................I............... ..1fi Encumbrances..................................................................................................................17 Property Tax and Special Assessments........................................................................17 - Cash, Cash Equivalents and Investments....................................................................18 General Fixed Assets ......................................................................................................18 Long-Term Obligations..................................................................................................18 -- Use of Estimates ..............................................................................................................19 FundEquity .....................................................................................................................19 Interfund Transactions...................................................................................................19 Compensated Absences .................................................................................................19 Claims Liabilities..................................................................... ....20 Total Columns- "Memorandum Only„ .....................................................................20 NewAccounting Standard ...........................................................................................20 Note 2 - Cash and Investments...............................................................•...................................20 Note3 -Loans Receivable...........................................................................................................24 Note 4 -Interfund Transactions.................................................................................................24 11 City of Saratoga Index to Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 - Page - Note5 --- Fixed Assets..................................................................................................................26 Note6 - Long-Term Debt..........................................................................................................26 Note 7 - Non-City Obligations.................................................................................................28 - Note 8 - Reserved and Designated Fund Balances...............................................................29 Note 9 - Other Required Individual Fund Disclosures.......................................................29 Note10 - Risk Management ......................................................................................................30 _ Note11 - Retirement Plans .........................................................................................................31 Note 12 -joint Powers Agreements...........................................................................................32 Note 13 - Commitments and Contingent Liabilities..............................................................33 Note 14 - Prior Period Adjustment............................................................................................33 12 City of Saratoga Notes to General Purpose Financial Statements For the year ended June 30, 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The general-purpose financial statements of the City of Saratoga, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Financial Reporting Entity The City 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 under the general laws of the State of California,and has a population at June 30, 2001 of 29,843. The City operated under the Council-Manager form of government, with five elected Council members served by a full-time City Manager and staff. At June 30, 2001, the City's staff comprised 61 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 district. 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 21 employees. Major projects may be contracted out to reduce costs. Community Development - Zoning administration, plan checking and advance planning services are provided by 9 employees. Culture, .Recreation and Community Support services are provided by a total of 10 employees. General Government services are provided by a total of 16 employees. As required by GAAP, these general-purpose financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. Discretely presented component units, on the other hand, are reported in a separate column in the combined general-purpose financial statements to emphasize their legal separateness from the City. The City had no discretely presented component units for the current fiscal year. 13 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 _ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued ` A. Financial Reporting Entity, Continued Included within the reporting entity are the following blended component units: Saratoga Pitblic Financing Authority — The Saratoga Public Financing Authority (Authority) is a joint powers authority organized by the City of Saratoga(City) and the City of Saratoga Parking Authority (Parking Authority)on June 16, 1993, under the laws of the State of California. The Authority was organized to provide financial assistance to the City and Districts for public improvements for the City and the purchase by the Authority of Local Obligations within the meaning of the Act. �- Lisliting and Landscaping Assessnent District#1 The Lighting and Landscaping Assessment District #1 (District) was established in 1980 for the _ levy and the collections of assessments upon the several lots or parcels of land in the District, and for the construction or installation of improvements,including maintenance or servicing,or both. _ Complete financial statements for each component unit may be obtained from the City of Saratoga 13777 Fruitvale Avenue, Saratoga,CA 95070. _ B. Fund Accounting 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 or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. _ The various fund.used by the City are grouped into three broad fund categories and two account groups. The following is a brief description of each fund and account group: _ Governmental Fund Types: The General Fund is the general operating fund of the City and 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 for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes. 14 _ City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,Continued B. .Fund Accounting, Continued _ Governrnental Fund Types, Continued: Debt Service Funds are used to account for the accumulation of resources for, and the payment of, interest and principal on general long-term debt. Capital Projeci.s Funds are used to account for financial resources segregated for the acquisition of major capital facilities. Fiduciary Fund Type: - Agency Funds are used to account for assets held by the City as trustee or agent for individuals, private organizations, other government units, and/or other funds. These funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Account Groups: The General Fixed Assets Account Group is used to account for fixed assets not accounted for in proprietary or trust funds. The General Long;-Term Debt Account Group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. C. Measurement Focus All governmental funds and expendable trust funds are accounted for on a spending or "curreuf financial resources" measurement focus. This means that generally only current assets and current liabilities are included on their balance sheets, with the exception that the noncurrent portion of long-term receivables are reported on. their balance sheets, offset by fund balance reserve accounts or deferred revenue. Statements of revenues, expenditures and changes in fund balances for governmental funds _ generally present increases (revenue~ and other financing sources) and decreases (expenditures and other financing uses)in net current assets. D. Basis of Accounting The modified accrual basis of accounting is used by all governmental fund types and agency _. funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City considers property taxes and sales taxes as available if they are collected generally-ti ithin 60 days after year-end,and a one-year availability period for all other governmental fund revenues. 15 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Basis of Accounting, Continued Those revenues susceptible to accrual are property taxes, sales taxes, special assessments, interest revenue, rental revenue and certain charges for services. Fines, forfeitures, licenses and permits and parking meter revenues are not susceptible to accrual because they are usually not _ measurable until received in cash. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the combined balance sheet and revenue is recognized. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded when paid. Fiduciary fund types are accounted for according to the nature of the fund. The City has only agency funds, which are purely custodial in nature (assets equal liabilities), and thus do not involve measurement of results of operations. The agency funds are accounted for on the modified accrual basis. E. Budgets and Budgetary Accounting 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 expenditures 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 a fund. However, any revisions that increase the total budgeted expenditures of any fund must be approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the fund level without City Council approval. 5. Formal budgetary integration in the form of legally adopted budgets is employed as a management 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 appropriations of the City Council. For the current fiscal year budget amendments were not material. 16 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Encumbrances Encumbrance accounting, under which purchase orders, contacts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General, special revenue and capital projects funds. Unexpended and unencumbered appropriations of these governmental funds automatically lapse at the end of the fiscal year. Encumbrances outstanding at year-end are reported as a reservation of fund balance. They do riot constitute expenditures or estimated liabilities. G. Property Tax and Special Assessments County Tax assessments included secured and unsecured property taxes, and special assessments. "Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the property being taxed. Revenue is recognized in the period for which the tax and assessment is levied. The County of Santa Clara levies, bills and collects property taxes for the City, the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1. Secured property tax is due in two installments on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10,respectively. Unsecured property tax is due on July 1 and becomes delinquent on August 31. H. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City considers pooled cash and - investment amounts with original maturities of three months or less to be cash equivalents. In accordance with GASB Statement No. 31, Accounting and Financial Reportin, for CertaIn ' Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. :Market value is used as fair value for those securities for which market quotations are .readily available. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset-Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates. 17 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. General Fixed Assets Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in the governmental funds. Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, and drainage systems are accounted for in the General Fixed Assets Account Group. No depreciation has been provided on general fixed assets. General fixed assets are valued at historical cost or estimated historical 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 estimated fair market ` value on the date donated. Interest accrued, if any, during construction of an asset financed by the governmental fund type is not capitalized as part of the asset cost. j. Long-Term Obligations The government reports long-term debt of governmental funds at face value in the general long- term debt account group. Certain other governmental fund obligations not expected to be financed with current financial resources are also reported in the general long-term debt account group. Long-term debt and other obligations financed by proprietary funds are reported as T liabilities in the appropriate funds. For governmental fund types, bond premiums and discounts, as well as issuance costs, are ` recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received,are reported as debt service expenditures. K. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 18 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Fund Equity Reservations of fund balances of governmental funds are created to either satisfy legal covenants, including state laws, that require a portion of the fund equity be segregated or to identify the portion of the land equity not available for future expenditures. A portion of 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 the total budgeted General Fund appropriations for the current budget 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. M. Interfund Transactions During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet. Quasi-external transactions are accounted for as revenues, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except quasi- external transactions and reimbursements, are reported as transfers. Nonrecurring or non-routine - permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. - N. Compensated Absences In governmental funds, compensated absences are recorded as expenditures in the years paid, as -- it is the City's policy to Iiquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. Accordingly, the entire unpaid liability for the governmental funds is recorded in the General Long-Term Debt Account Group and no expenditure is recorded for these amounts. 19 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Claims Liabilities The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" (IBNR) claims. The estimated long-term portion of claims payable has been accrued in the General Long-Term Debt Account Group. Amounts estimated to be payable with current financial resources are recorded in the General Fund. ` P. Total Columns—"Memorandum Only" "Memorandum Only" captions on total columns of combined statements mean that totals are presented for overview informational purpose only and they do not fairly present the financial position or results of operations for the governmental unit as a whole in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of these totals. Q. New Accounting Standard In 2001, the City adopted a new accounting standard in order to conform to Governmental ` Accounting Standards Board Statement No. 33, Accounting and Financial Reporting for Non- Exchange Transactions. GASB No. 33 established recording assets and revenues when the underlying exchange occurred, enforceable legal claim had arisen, all eligibility requirements had been met or when resources were received, whichever was first. By adopting this Standard, the City recognized assets and ` revenues from Non-Exchange Transactions which included sales taxes, property taxes, other taxes, fines and forfeitures, certain grants and entitlements, and certain government mandates. These Non-Exchange Transactions were accounted for as susceptible to accrual using the ' measurable and available criteria. 2. CASH AND INVESTMENTS The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds,which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated to the funds based on average month-end cash and investment balances in these funds. 20 ` City of Saratoga Notes to General[ Purpose Financial Statements, Continued For the year ended June 30, 2001 2. CASH AND INVESTMENTS, Continued A. Cash Deposits The carrying amounts of the City's cash deposits were $597,482 at June 30, 2001. Bank balances before reconciling items were $676,057 at that date. The total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City's name is discussed -- below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in - the City's name. The market value of pledged securities must equal at least 110 of the City's cash deposits. - California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150%) of the City's total cash deposits. The City may waive collateral requirements for cash deposits which are fully insured up to $100,000 by the Federal Deposit Insurance Corporation. The City,however,has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. B. Investments Under the provisions of the City's investment policy,and.in accordance with California Government Code, the following investments are authorized: Securities of the U.S. Government or its agencies. r Certificates of Deposit (or Time Deposits) placed with commercial banks and/or savings and loan companies. Y Negotiable Certificates of Deposit. California Local Agency Investment Fund. - Investment-grade obligations of state,local governments or public authorities. r Money market mutual funds. Passbook savings account and demand deposits. The City has complied with the provisions of GASB Statement No. 31, Accounting and Fitiancial Reporting for Certain Investinen.ts and for External Investments Pools. No current adjustments have - been made to the accompanying general purpose financial statements, because the City's investments were primarily in the State of California Local Agency Investment Fund and the fair value adjustment was immaterial. 21 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 2. CASH AND INVESTMENTS, Continued " C. Credit Risk Governmental Accounting Standards Board Statement No. 3 requires that deposits and investments be classified by credit risk. Classifications of deposits and investments by credit risk are as follows: Deposits: CategorV I — Insured or collateralized with securities held by the entity or by its agent in the entity's name. CatCgory 2 — Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name. CategorV 3- Deposits which are uninsured or uncollateralized. Investments: Cafe,>- t 1 — Insured or registered or securities held by the entity or its agent in the entity's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust _ department or agent in the entity's name. Category 3 — Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent,but not in the entity's name. ` Investments Not Subject to Categorization - Investments in the California Local Agency Investment Fund (LAIF) are not categorized, as GASB No. 3 does not require categorization of investment pools managed by another government. Certain fiscal agent investments are not categorized because the underlying assets are open-ended mutual funds. Guaranteed investment contracts are not categorized because they are direct contractual investments and are not securities. All such investments are not required to be categorized under interpretive guidelines issued by the GASB. 22 City of Saratoga - Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 2. CASH AND INVESTMENTS, Continued Deposits and investments were categorized as follows at June 30,2001: Not Required Category to be Fair 1 Categorized Value City'Treasury: Demand Deposits: Cash deposit $ 597,482 $ - $ 597,482 Certificates of deposit 1,095,948 - 1,095,948 T Total demand deposits 1,693,430 - 1,693,430 Investments: Local agency investment fund - 18,375,171 18,375,171 Total investments - 18,375,171 18,375,171 Total deposits and investments 1,693,430 18,375,171 2.0,068,601 -- Restricted cash and investments: Cash deposits - 1,122,634 1,122,634 Money market mutnial hinds - 315,988 315,988 Local agency investrnent fund - 12,530,000 12,530,000 Total restricted cash and investments - 13,968,622 13,968,622 - Totals $ 1,693,430 $ 32,343,793 $ 34,037,223 At June 30,2001, the City had no category 2 or 3 investments. The City's investments with Local Agency Investment Fund (LAIF) at June 30, 2001, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: • Structured Notes - debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. • Asset-Backed Securities - the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. As of June 30, 2001, the City had $18,375,171 invested in LAIF as cash and investments and $12,530,000 invested in LAIF as restricted cash and investments, which had invested 4.506"��, of the pool investment funds in Structured Notes and Asset-Backed Securities. 23 L City of Saratoga _ Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 2. CASH AND INVESTMENTS, Continued Cash and investments held in the City Treasury grouped by maturity date at June 30, 2001, are shown below: Maturity Current to one year $ 20,068,601 3. LOANS RECEIVABLE At June 30,2001,the City had the following loan receivable: Housing Rehabilitation Loan Program $ 425,463 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 SHARP, 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 properties. 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, 2001, the City had outstanding SHARP loans of $425,463. During the year ended June 30,2001, the City received $24,648 in repayments from all participants. 4. INTERFUND TRANSACTIONS A. Interfund Receivables and Payables At June 30, 2001,the City had the following short-term receivables and payables: Due To Other Funds Special Revenue Funds Community Transportation Development Traffic Development Due From Other Funds Block Grant Safety Act Totals General $ 48,403 $ 15,305 $ 47,396 $ 111,104 24 City of Saratoga Notes to Generals Purpose Financial Statements, Continued For the year ended June 30, 2001 4. INTERFUND TRANSACTIONS, Continued B. Long-Term Advances At June 30,2001, the City had the following long-term advances: Advances From Other Funds Community Development Block Grant Special Advances To Other Funds Revenue Fund General $ 309,162 The advances 'were used for cash flow purposes and will be repaid as cash becomes available within the Community Development Block C:rant Special Revenue Fund. However, there are no set dates for repayment. C. Operating Transfers At June 30, 2001, the City had the following operating;transfers: Operating Transfers Out Special Revenue Funds General Hillside Operating Transfers In Fund Traffic Safety Street Repair Totals General Fund $ 67,400 5 - $ 2,517 $ 69,917 Special revenue funds: Community Development Block Grant 13,520 - - 13,520 Streets and Roads - 1.36,007 - 136,007 Recreation 420,592 - - 420,592 Transportation Development Act 24,815 - - 24,815 Local Law Enforcement 10,654 - - 10,654 Totals $ 536,981 $ 136,007 $ 2,517 $ 675,505 25 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 5. FIXED ASSETS " The following is a summary of changes in the General Fixed Assets Account Group for the fiscal year ended June 30,2001: ` Balance Balance JLdy 1,2000 Additions Deletions June 30,2001 Land and improvements $ 4,797,848 $ - $ - $ 4,797,848 Buildings and structures 5,985,136 191,043 - 6,176,179 Equipment and vehicles 2,412,193 182,817 (57,556) 2,537,454 ` Infrastructure - 98,820,446 - 98,820,446 Totals $ 13,195,177 $ 99,194,306 $ (57,556) $ 112,331,927 6. LONG-TERM DEBT The following is summary of changes in General Long-Term Debt Account Group for the year ended June 30, 2001: W` Balance Balance July 1,2000 Additions Deletions June 30, 2001 General Obligation 1976 Library Bonds $ 185,000 $ - $ (85,000) $ 100,000 General Obligation 2001 Library Bonds - 15,000,000 - 15,000,000 Claims Payable 50,000 _ _ 50,000 Compensated absences 118,096 13,854 - 131,950 Totals $ 353,096 $ 15,013,854 $ (85,000) $ 15,281,950 General Obligation 1976 Library Bands- Original Issue$1,200,000 On December 15, 1976, the City issued General Obligation 1976 Library Bonds of $1,200,000. The proceeds of the bonds were used to construct a library and associated site improvements which are leased to County of Santa Clara. Lease revenues received from the County are pledged for repayment of the bonds. Interest on the bonds is payable on June 15 and December 15 of each year, at 5`%, to a maximum of 7%. Principal is due annually on December 15. The bonds mature on December 15, 2001. At June 30, 2001,the outstanding balance of the bonds was $100,000. For the Year Ending June 30, Principal Interest Total 2002 5 100,000 $ 2,950 $ 102,950 26 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 6. LONG-TERM[ DEBT, Continued General Obligation 2001 Library Bonds - Original Issue$15,000,000 On May 1, 2.001, the City issued General Obligation Bonds Series 2001 in the amount of $15,000,000. The proceeds of the bonds were used to improve,renovate, and expand. the Saratoga Community Library. The bonds are payable from and secured by certain property taxes with-in the City. Interest on the bonds ranges from 5% to 6°% and is payable on February 1 and August: 1 of each year, commencing February 1, 2002. Principal is due annually beginning on August 1, 2002, in amounts ranging from $60,000 to$940,000. The bonds mature on August 1, 2032 and are subject to redemption prior to maturity at redemption prices ranging from 100% to 101% of par. The bonds may be called for redemption beginning on or after August 1, 2011, at the option of the City. At June 30, 2001, the outstanding balance of the bonds was $15,000,000. The annual debt service requirements on these bonds are as follows: For the Year Ending June 30, Principal Interest Totals 2002 $ - S - S _ 2003 60,000 981,570 1,041,570 2004 245,000 782,256 1,027,256 2005 255,000 770,006 1,025,006 2006 270,000 757,256 1,027,256 2007-2011 1,565,000 3,552,680 5,117,680 2012- 2016 2,070,000 3,051,980 5,121,980 2017-2021 2,430,000 2,496,280 4,926,280 2022-2026 3,125,000 1,811,451 4,936,451 2027-2031 4,040,000 914,313 4,954,313 2032 940,000 49,350 989,350 Totals $ 15,000,000 $ 15,167,142 $ 30,167,142 Claims Payable The estimated long-term portion of claims payable has been accrued in the General Long-Term Debt Account Group. Amounts estimated to be payable with current financial resources are recorded in the General Fund. There is no fixed payment schedule to pay these liabilities. The total amount of long-term claims payable at June 30, 2001,was$50,000. 27 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 6. LONG-TERM DEBT, Continued Compensated Absences The City's liability for vested and unpaid compensated absences (accrued vacation and sick pay) that exceeds current financial resources for governmental fund types is reported in the General Long-Term Debt Account Group. At June 30, 2001, the vested and unpaid compensated absences ` in the governmental fund types totaled$131,950. 7. NON-CITY OBLIGATIONS The following bonds bearing the City's name were issued to finance redevelopment projects; however,neither the faith and credit nor the general taxing power of the City has been pledged to the payment of the bonds. Furthermore, the City has no obligation for the payment of the bonds in the case of default. Therefore, the following obligations are not included in the accompanying general purpose financial statements. Original Outstanding at Amount June 30,2001 Parking Assessment Districts#2 and#3 $ 1,244,900 $ 565,000 Leonard Road Improvement Assessment District 101,686 75,000 Saratoga Public Financing Authority 1993 Revenue Bonds 1,600,000 790,000 The City is the collecting agent for Village Parking Assessment Districts #2 and #3 and the Leonard Road Improvement District, but is not obligated for the repayment of debt issued by _ these Districts. As a result, these Districts have not been included in the general purpose financial statements of the City. 28 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 8. RESERVED AND DESIGNATED FUND BALANCES Fund balance; at June 30,2001,have been reserved and designated for the following purposes: Special Capital Debt General M.venue Projectss Service Fund funds Funds Fund Reserved for: Prepaid items $ 4,625 $ 5,585 $ - $ - Petty cash 300 - AT&T settlement 10,027 - - _ Debt service - - - 16,284 Advances to other funds 309,162 - - _ Total reserved 324,114 5,585 - 16,284 Designated for: Operations 2,238,266 - - Total desigruited 2,238,266 - Unreserved,undesign-ited 9,512,417 4,864,420 15,997,044 - Total fund balances $ 12,074,797 $ 4,870,005 $ 15,997,044 $ 16,284 9. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES _. Deficit Fund Balances At June 30,2001, the following funds had deficit fund balances: Fund Deficit Traffic Safety Special Revenue Fund $ 2,057 29 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 10. RISK MANAGEMENT A. Risk Pools The City participates in the following public entity risk pools: 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 $25,000 per claim. Once the City's deductible is met ABAG PLAN becomes responsible for payment of all claims up to the limit. During the fiscal year ended June 30, 2001, the City contributed $78,007 for current year coverage and received a refund of$52,919 of prior year excess contributions. The ABAG Workers' Compensation Pool Insurance Authority (ABAG POOL) covers workers' compensation claims up to the statutory limit. The City has no deductible for these claims. During the fiscal year ended June 30,2001,the City contributed $84,441 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 management and approval of operating budgets, independent of any influence by member municipalities beyond 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. There have been no significant reductions of insurance settlements that exceeded insurance ` coverage for the past three years. The following represents summary audited financial information of ABAG for the fiscal year ended June 30, 2001: Total assets $ 33,366,139 Total liabilities $ 15,749,511 Fund equity $ 17,616,628 Total revenues $ 1,430,000 Total expenses $ 1,472,804 Net increase in fund equity $ (42,804) Audited financial information for each risk pod may be obtained from ABAG at P. O. Box 2089, Oakland,California 94604-2089. 30 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 10. RISK MANAGEMENT,Continued B. Liability,for Uninsured Claims The current portion of the City's estimated liabilities, including incurred but not reported claims (1BNR), for uninsured claims is recorded in the General Fund, and the noncurrent portion is recorded in the General Long-term Debt Account Group. These amounts were estimated by management based on claims experience. Claims payable amounts outstanding at June 30, 2001, were as follows: June 30,2001 General Fund $ 50,000 General Long-Term Debt Account Group 50,000 Total $ 100,000 Changes in estimated liabilities and current payments for the current and preceding year were as follows: Fiscal Year Year Claims Claims and Claims Ended Pavable Changes in Claims Payable June 30, July 1 Estimates Payments June.30 2000 $ 100,000 $ 6,530 $ (6,530) $ 100,000 2001. 100,000 15,279 (15,279) 1()0,000 - 11. RETIREMENT PLANS Pension Plan Plan Description - The City contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814. Fttnditig Polio--Active plan members are required by state statute to contribute for miscellaneous employees 70X, of their annual covered salary. The City employer makes the contributions required of City employees on their behalf and for their account, which amounted to$186,793 for the year ended June 30, 2001. The City employer is required to contribute for fiscal year 2000- 2001 at an actuarially determined rate of 0"4, of annual covered payroll for miscellaneous employees. 31 City of Saratoga Notes to General Purpose Financial Statements, Continued For the year ended June 30, 2001 11. RETIREMENT PLANS, Continued ` Pension Plan, Continued Annual Pef?sion Cost — For fiscal year 2000-2001, the City's annual pension cost of $188,080 for PERS was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 1999 actuarial valuation using the entry age normal actuarial — cost method. The actuarial assumptions included (a) 8.25% investment rate of return (net of administrative expenses), (b) projected annual salary increases ranging from 3.75% to 14.2% for miscellaneous employees depending on age, service, and type of employment, and (c) TX, per year cost-of-living adjustments. Both (a) and (b) included an inflation component of 3.5%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a three-year period. PERS unfunded actuarial accrued liability (or surplus) is amortized as a level percentage of projected payroll on a closed basis. The amortization period at June 30, 1999,was 30 years for miscellaneous employees. THREE-YEAR TREND INFORMATION FOR PERS Annual Percentage of Pension Cost APC Net Pension Fiscal Year (APC) Contributed Obligation 6/30/99 $ 161,363 1001% $0 6/30/00 177,433 1001y. 0 6/30/01 188,080 1001y, 0 12.JOINT POWERS AGREEMENTS The City is a member of the Santa Clara County Traffic Authority (Traffic Authority), which consists of various cities in the San Francisco Bay area. — 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 from the Traffic Authority at 1754 Technology Drive, Suite 224, San Jose, California 95110. — The City is also a member of other Joint Powers Authorities (JPA) but has had no material transactions with them. These JPA's are governed by boards consisting of representatives from — their members. The boards control the operations of each JPA, including selection. of management and approval of operating budgets, independent of any influence by its members beyond their representation on the board. 32 ` City of Saratoga Notes to Genera! Purpose Financial Statements, Continued For the year ended June 30, 2001 13. COMMITMENTS AND CONTINGENT LIABILITIES The City participates in Federal and State grant programs. These programs are aiidited by the City's independent accountants in accordance with the provisions of the Federal Sing';e Audit Act - Amendments of 1996 and applicable State requirements. No cost disallowance is e)cpected as a result of these audits;however, these programs aI'e subject N) further Examination by the: grantors. Expenditures which may be disallowed, if anv, by the granting agencies cannot be determined at - this time. The City expects such amounts, if anv, to be immaterial. 'I he Cite is presently involved in certain matters of litigation that have arisen in the normal course - of conducting Cite business. City Management believes, based upon consultation with the Cite AttoI'nev, that these cases, in the. aggregate, are not expected to result In a motel I ZI adverse financial impact on the City. Additionally, City management believes that the City s insurance programs are sufficient to cover any potential tosses should in unfavorable outcome materialize. - 14. PRIOR PERIOD ADJUSTMENT The: Citv recorded the following adjustment to more accurately reflect the: transactions in the prior - years: The City restated fund balances to more accurately record the transactions due to corrections irL revenue accrual. Tra rLSporta Lion Uowlopillmt All Act Special Special Kevcnue Pond Revenue Funds fund balance,as pre\ioLLL4 reported $ - S 2,570,327 Prior period adjustment 1-)5,2-34 95,2',-I Fund balance,as restated 952)34 �,n65,5r 1 City of Saratoga Required Supplementary Information For the year ended June 30, 2001 _ PUBLIC EMPLOYEE RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS Miscellimeoits Employees _ Unfunded Actuarial Entry Age Overfunded Liability as _ Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Asset Accrued Accrued Funded Covered Covered Date* Value Liability Liability Ratio Payroll Payroll _ 6/30/97 $ 12,475,286 $ 9,734,565 $ 2,740,721 128.20% $ 2,322,420 118.011% 6/30/98 15,721,109 11,459,289 4,261,820 137.2% 2,127,638 200.31 `% 6/30/99 17,347,660 12,626,128 4,721,532 137.4% 2,489,253 189.68 % "Latest information available. 36 CITY OF SARATOGA 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. 37 City of Saratoga Balance Sheet General Fund — June 30, 2001 ASSETS Cash and investments $ 11,604,681 Restricted cash and investments 8,400 Receivables: Accounts 175,883 — Interest 279,909 Prepaid items 4,625 — Due from other funds 111,104 Advances to other funds 309,162 Total assets $ 12,493,764 — LIABILITIES AND FUND BALANCES — Liabilities: Accounts payable $ 277,�85 Accrued payroll 91,382 Claims payable Q,f)00 Total liabilities 418,967 — Fund Balances: Reserved for: Prepaid items 4,625 Petty cash 300 AT&T settlement 10,027 — Advances to other funds 309,162 Unreserved: Designated for operations 2,238,266 — Undesignated 9,512,417 Total fund balances 12,074,797 Total liabilities and fund balances $ 12,493,764 38 — City of Saratoga Statement of Revenues, Expenditures and Changes in Fund Balances General Fund For the year ended June 30, 2001 REVENUES: Property taxes 5 2,0E 5,051 Special assessments Other local taxes y3g 20y lntergovernmentaI -State 1,72,5,765 Franchise fees 876,h,52 Use of money and property 930,430 Current service charges 494,656 Reimbursement of interfund cost allocations 1,467,466 Total revenues 10,498,229 EXPENDITURES: Current: I't]blic safety 3,062,160 Public works services 1,349,838 Community services 262,696 General and intergovernmental services 1,574,597 Development services 140,883 Capital outlay 651,814 - Total expenditures 7,041,988 REVENUES OVER(UNDER) EXPENDITURES 3,456,241 OTHER FINANCING SOURCES (USES): _- Operating;transfers in 69,917 Operating transfers out Total other financing uses (467,064) REVENUES OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES 2,989,177 FUND BALANCES: Beginning of year 9,08 ,G20 End of year 5 12,074,797 39 City of Saratoga City of Saratoga Combining Balance Sheet Special Revenue Funds June 30, 2001 Lighting and Community Landscaping Development Traffic Streets Assessment Block Grant Safety and Roads District#1 — ASSETS Cash and investments $ - $ $ 2,160,365 $ 141,410 — Restricted cash and investments 105,461 - - receivables: Accounts 291,228 25,095 22,880 903 — Loans 425,463 - - Prepaid items - - 5,585 - Total assets $ 822,152 $ 25,095 $ 2,188,830 $ 142,313 ` LIABILITIES AND FUND BALANCES Liabilities: Accounts payabie S 14,189 $ 11,847 $ 57,792 $ 3,244 -- Accrued payroll 287 - 9,573 732 Due to other funds 48,403 15,305 - - Deposits payable - - - - — Deferred revenue 425,463 - - - Advances from other funds 309,162 - - - Total liabilities $ 797,504 5 27,152 S 67,365 $ 5,976 — Fund Balances: Reserved for prepaid items - - 51585 - LnreservE:d,undr.5inated 24,648 (2,057) 2,115,880 136,337 Total fund valances 24,648 (2,057) 2,121,465 136,337 Total liabilities and fund balances $ 822,152 S 25,095 $ 2,188,830 $ 142,313 Transportation Environmental Development Development Hillside Street Local Law Programs Services Recreation Act Repair Enforcenient Totals $ 71.7,276 $ 1,830,320 5 47,958 $ - $ - $ 88,402 $ 4,98 ,731 - - - - - 105,461 46,924 5,797 186 47,396 - 440,409 - - - - 425,463 - - - - 5,585 $ 764,200 S 1,836,117 $ 48,144 $ 47,396 S $ 88,40= $ 5,9t�ZF,49 S 7,749 $ 85,056 $ 17,884 $ - $ - $ $ 19i,761 1,102 12,410 12,255 - - 89; 37,254 - - - 47,396 - L.1,104 9,9O() - - 9,900 - - - 425,463 - - - - 309,162 8,851 g 97,466 $ 40,039 S 47,396 $ - S 895 $ 1,092,644 - - 5,585 755,349 1,738,651 8,105 - - 87,507 4,,tii,4,420 - 755,349 1,738,651 8,105 - - 87,517 4,870,005 $ 764,200 $ 1,836,117 $ 48,144 $ 47,396 $ - $ 88,402 $ 5,962,649 43 City of Saratoga Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds For the year ended June 30, 2001 Lighting and Community Landscaping Development Traffic Streets \ssessment Block Grant Safety and Roads District#1 REVENUES: Property taxes $ - $ $ 105,744 Special assessments - - 95,973 Intergovernmental-State - - 3,229,575 - Jntergovernmental-Federal 291,228 - - - L:-,e of money and property 24,648 - - 6,587 Current service charges - 150,352 1,374 - Total revenues 315,876 150,352 3,230,949 208 304 EXPENDITURES: Current: - Public safety - 16,402 - - Envimnmental services - 419,344 Public works services - - 1,407,313 CUMniunity services 74,795 - - - Development services - - - Capital outlay 229,953 - 57,568 17 U,Q07 Total expenditures 304,748 16,402 1,884,225 179,907 REVENUES OVER(UNDER) EXPENDITURES 11,128 133,9i0 1,346,724 28,397 OTHER FINANCING SOURCES (USES): Operating transfers in 13,520 136,007 - Operating transfers out - (136,007) - - Total other financing sources (uses) 13,520 (136,007) 136,007 - REVENUES AND OTHER FINANCING SOURCES OVER (UNDER)EXPENDITURES AND OTHER FINANCING USES 24,648 {2,057) 1,482,731 28,397 FUND BALANCES: Beginning of year,as restated - 638,734 107,940 End of year $ 24,648 $ (2,057) S 2,121,465 $ 136,337 44 Transportation Environmental Development Development Hillside Street Local Law Programs Services Recreation Act Repair Enforcement Totals - 5 $ $ - S - S 105,744 -- 30,410 - 47,396 100,()()(1 3,407,381 - - - - 291,228 40,067 107,641 154,745 - 5,793 3,39,48-1 -- �68,6;2 2,050,733 70'1,425 - 2 517 3 4,77 053 639,129 2,158,374 858,170 47,396 2,5-17 105,793 7,716,860 - - - - - 73,059 89,461 295,205 - - - 7-14,549 - - - - - 1,407,313 - - 1,263,602 - - 1,338,397 - 1,762,671 - - - 1,762,671 9,033 15,957 7,226 167,445 - 667,089 304,238 1,778,628 1,270,828 167,445 - 73,055 5,97 9,480 - 334,891 379,746 (412,658) (120,049) 2,517 32,734 1,737,380 - - - 420,592 24,815 - 10,654 605,588 - - - (2,517) - (735 ?4i - - 420,592 24,815 (2,517) 10,654 467,064 334,891 379,746 7,934 (95,234) 43,388 2,204,444 420,458 1,358,905 171 95,234 44,119 2,665,561 755,349 $ 1,738,651 $ 8,105 $ - $ $ 87,507 $ 4,bTO,OUS 45 City of Saratoga Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Special Revenue Funds For the year ended June 30, 2001 Community Development Block Grant Traffic Safetv Variance Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Property taxes $ - $ - $ - $ - $ - $ - Special assessments - - - - - Intergovernmental-State - - - - Intergovernmental-Federal 362,429 291,228 (71,201) -Use of money and property 3,000 24,648 2-1,648 - - Current service charges - - 153,500 150,352 (3,148) Total revenues 360,l29 315,876 (49,553) 153,500 150,352 (3,148) EXPENDITURES: Current: - I'ublic safety - - - 26,090 16,402 9,688 Environmental service; - - - - Public work,,tiervices - - - - - - Community services 79,535 74,795 4,740 - - Development ser\ices - - - - - Capital outlay 332,047 229,953 102,094 - - - Total expenditures 411,582 304,748 106,834 26,090 16,402 9,688 REVENUES OVER(UNDER) EXPENDITURES (46,153) 11,128 57,281 127,410 133,95{1 6,540 OTHER FINANCING SOURCES(USES): Operating transfers in - 13,520 13,520 - - - Operating transfers out (170,951) - 170,951 (127,410) (136,007) (8,597) Total other financing sources(uses) (170,951) 13,520 184,471 (127,410) (136,007) (8,597) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER)EXPENDITURES AND OTHER FINANCING USES $ (217,104) 24,648 $ 241,752 $ - (2,057) S (2,057) FUND BALANCES: Beginning of year, as restated - - End of vear $ 24,648 $ (2,057) - 46 - Lighting and Landscaping Streets and Roads Assetisment District#1 Environmental Programs Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ - $ 5 $ 73,750 $ 105,744 31,994 $ - 5 - - 102,204 95,973 (6,231) - 4,183,416 3,229,575 (1)53,841) - - - 30,479 30,410 (69) 579,193 - (579,193) - - - - - - - 2,000 6,587 4,587 - 40,067 40,067 140,83 1,374 (139,461) - - - 522,490 568,652 40,162 4,903,444 3,230,949 (1,672,495) 177,954 208,304 30,350 552,969 639,129 86,160 41'),.y4, 419,344 1 - - 633,141 295,205 337,936 3,237,453 1,407,313 1,830,140 - - 2,583,566 37,E+68 2,525,998 179,907 179,907 34,500 9,033 25,467 6,240,364 1,884,229 4,356,139 179,907 179,907 667,641 304,238 363,403 (1,336,920) 1,346,724 2,683,644 (1,953) 28,397 30,350 (114,672) 334,891 449,563 2,368,987 136,0017 (2,232,980) - - - - - 2,368,987 136,007 (2,232,980) - - - - _- $ '1,032,067 1,482,731. S 450,664 5 (1,953) 28,397 5 30,350 $ (114,672) 334.89I S 449,563 638,73 1 107,940 420,458 $ 2,121,465 $ 136,337 $ 755,349 {Cintinucdl 47 City of Saratoga Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Special Revenue Funds, Continued For the year ended June 30, 2001 Development Services Recreation Variance V.iriance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES: Property taxes $ $ S - $ - $ $ - Special as essments - - - - Inter overnmental-State - - - - Intergovernmental- Federal - - - - Use of money and property - 107,641 107,641 15()jxv 154,745 4,745 Current service charges 1,568,687 2,050,733 482,046 782,300 703,425 (78,875) Total revenues 1,568,687 2,158,374 559,687 932,300 858,170 (74,130) EXPENDITURES: Current: Public safety - - - Environmentll services - - - Public works services - - - - ` Community services - - - 1,317,771 1,263,602 54,169 Development services 1,939,577 1,762,671 176,906 - - - Capital outlay 18,500 15,957 2,543 25,000 7,226 17,774 Total expenditures 1,958,077 1,778,628 179,449 1,342,771 1,270,828 71,943 REVENUES OVER(UNDER) EXPENDITURES (389,390) 379,746 769,136 (410,471) (412,658) (2,187) OTHER FINANCING SOURCES(USES): Operating transfers in - - - 378,152 420,592 42,440 Operating transfers out (122,532) _ 122,532 - - - Total other financing sources(uses) (122,532) 122,532 378,152 420,592 42,440 REVENUES AND OTHER FINANCING SOURCES OVER (UNDER)EXPENDITURES AND OTHER FINANCING USES $ (511,922) 379,746 $ 891,668 $ (32,319) 7,934 S 40,2.53 FUND BALANCES: Beginning of year,as restated 1,35S,y05 171 End of year S 1,735,651 $ 8,105 48 - Transportation Development Act _ Hillside Street Repair Local Law Enforcement Variance Variance Variance _ Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ - $ - $ - $ $ - $ - S $ - $ 97,234 47,396 (49,838) - - - 70,128 100,000 29,872 - 800 - (800) 5,793 5,793 5,288 2,517 (2,771) - - 97,234 47,396 (49,838) 6,088 2,517 (3,571) 70,128 105,793 35,665 - - - - 86,8116 73,059 13,747 169,200 167,445 1,755 - - - -- 169,200 167,445 1,755 - - 86,806 73,Oa9 13,747 - (71,966) (120,(.)49,' (48,083) 6,088 21517 (3,571) (16,678) 32.,734 49,412 71,96b 24,815 (47,151) - - - 11,341 -1(:',654 (687) - - (6,088) (2,517) 3,571 - - 71,966 24,815 (47,151) (6,088) (2,517) 3,571 11,341 1C,654 (687) $ (95,234) $ (95,234) $ - S $ (5,337) 43,388 $ 48,725 95,234 - 44,119 $ - $ - $ 87,507 (Continued) 49 City of Saratoga - Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - Special Revenue Funds, Continued — For the year ended June 30,2001 Totals Variance Favorable Budget Actual (Unfavorable) REVENUES: — Property taxes $ 73,750 $ 105,744 S 31,994 Special assessments 102,204 95,973 (6,231) Intergovernmental-State 4,381,257 3,407,381 (973,876) Intergovernmental-Federal 941,622 291,22S (650,394) Use of money and property 155,800 339,481 183,681 — Current service charges 3,173,100 3,477,053 303,953 Total revenues 8,827,733 7,716,860 (1,110,873) EXPENDITURES: Current: Public safety I12,896 89,461 23,435 Environment,iI services 1,052,486 714,549 337,937 Public 3,237,453 1,4n7,313 1,830,140 — Community services 1,397,306 1,338397 58,909 Development services 1,939,577 1,762,671 176,906 Capital outlay 3,342,720 667,089 2,675,631 Total expenditures 11,082,438 5,979,480 5,102,958 REVENUES OVER(UNDER) EXPENDITURES (2,254,705) 1,737,380 3,992,085 OTHER FINANCING SOURCES(USES): Operating transfers in 2,830,446 605,588 (2,224,858) Operating transfers out (426,981) (138,524) 288,457 Total other financing sources(uses) 2,403,465 467,o(,4 (1,936,401) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER)EXPENDITURES AND OTHER FINANCING USES $ 148,760 2,204,444 $ 2,055,684 FUND BALANCES: ` Beginning of year,as restated Z.L67,561 End of year S 4,870,005 (Concluded) 50 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 Develop mefit - This fund accounts for resources used for the acquisition and construction of major capital facilities by the City,primarily the acquisition and construction of various City parks. Library Expansion - This fund accounts for resources used for the construction of the Citv's librarv. 51 City of Saratoga Combining Balance Sheet Capital Projects Funds June 30, 2001 Park Library Development Expansion Totals ASSETS Cash and ins e�,tments $ 1,972,432 S 655,904 $ 2,628,336 Restricted cash and investments - 13,538,773 13,135,773 Interest receivable - 60,969 60,969 Total assets $ 1,972,432 $ 14,255,646 $ 16,228,078 ` LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 22,861 $ 208,173 $ 231,034 Total liabilities 22,861 208,173 23"1,034 Fund Balances: Unreserved, undesignated 1,949,571 14,047,473 15,997,044 Total fund balances 1,949,571 14,047,473 1:5,997,044 Total liabilities and fund balances $ -1,972,432 5 14,255,h46 $ 16,228,078 52 City of Saratoga Combining Statement of Revenues, Expenditures and Changes in Fund Balances Capital Projects Funds For the year ended June 30, 2001 Park Library Development Expansion Totals - REVENUES: l:;se of money and property $ - S 69,809 S 69,809 Current service charges 113,484 - 113,484 Total revenues 113,484 69,809 183,293 - EXPENDITURES: Capital outhay 307,877 1,130,524 1,4.38,401 Total expenditures 307,877 1,130,524 1,438,401 REVENUES OVER(UNDER)EXPENDITURES (194,393) (1,060,715) (1,255,108) OTHER FINANCING SOURCES: Proceeds from long-term debt - I5,108,188 15,108,1.88 Total other financing sources - 15,108,188 15,138,188 REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES (194,393) 14,047,473 13,8.33,080 FUND BALANCES: Beginning of year 2,143,964 2,143,964 - End of year $ 1,941),571 $ 14,047,473 $ 15,997,044 53 City of Saratoga Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Capital Projects Funds For the year ended June 30, 2001 Park Development Variance Favorable Budget Actual (Unfavorable) REVENUES: Use of money and property $ - $ - $ - Current service charges 93,150 113,484 20,334 F Total revenues 93,150 113,484 20,334 EXPENDITURES: Capital outlay 3,367,531 307,877 3,059,(174 Total expenditures 3,367,551 307,877 3,059,674 REVENUES OVER(UNDER)EXPENDITURES (3,274,401) (194,393) 3,080,008 OTHER FINANCING SOURCES: Proceeds from long-term debt - - Operating transfers in 10,000 Total other financing sources 10,000 - (10,000) REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES $ (3,264,401) (194,393) 5 3,070,008 FUND BALANCES: Beginning of year 2,143,964 End of year $ 1,949,571 54 Library Expansion Totals Variance Variance Favorable Favora ale Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ - $ 69,809 $ 69,809 $ 69,809 $ 69,809 - - 93,130 113,484 20,334 - 69,809 69,809 93,150 183,293 90,143 - 1,000,000 1,130,524 (130,524) 4,367,551 1,438,401 2,929,150 1,000,000 1,130,524 (130,524) 4,367,551 1,438,401 2,929,150 (1,000,000) (1,060,715) (60,715) (4,274,401) (1,255,108) 3,019,293 1,0(.)(),000 15,108,188 14,108,188 1,000,000 15,108,188 14,108,188 1,0O0,000 15,-108,188 14,108,188 I'M 9,000 15,108,188 14,098,188 5 - 14,047,473 $ 14,047,473 y (3,264,401) 13,853,080 $ 17,117,481 - 2,143,964 - $ 14,047,473 $ 15,997,044 55 .� /4, 11 TS �� /�'�1 +� V.l' �.�_ '+-y� .a '.'-fti�.S. �L� �� � -T CITY OF SARATOGA DEBT SERVICE FUND Debt Service Funds are used to account for the accumulation of resources for, and the payment of, interest and principal on general. long-term debt. Library Debt - Santa Clara County lease revenues are accumulated in this fund to pay annual principal and interest payments on the 1976 and 2001 library bonds. 57 City of Saratoga Balance Sheet Library Debt Service Fund June 30, 2001 ASSETS Cash and investments $ 16,284 Total assets $ 16,284 FUND BALANCES Fund Balances: Reserved for debt service $ 16,284 Total fund balances S 16,284 58 City of Saratoga Statement of Revenues, Expenditures and Changes in Fund Balances Library Debt Service Fund - For the year ended June 30, 2001 REVENUES: Use of money and property $ 1"i l,(158 Total revenues 111,058 1;XPENDITURES: Debt service: Principal 85,000 Interest and fiscal charges 9,774 Total expenditures 94,774 REVENUES OVER(UNDER)EXPENDITURES 1.6,284 FUND BALANCES: Beginning of year - 1:nd of year $ 16,281 59 City of Saratoga Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Library Debt Service Fund For the year ended June 30, 2001 Variance Favorable _ Budget Actual (Unfavorable) REVENUES: Use of money and property $ 93,678 $ 111,058 S 17,380 Total revenues 93,678 1 11,058 17,380 EXPENDITURES: Debt service: Principal 85,000 85,000 Interest and fiscal charges 9,774 9,774 Total expenditures 94,774 94,774 - REVENUES OVER(UNDER)EXPENDITURES $ (1,096) 16,284 $ 17,380 FUND BALANCES: Beginning of year — Fnd of year $ 16,2H4 60 CITY OF SARATOGA AGENCY FUNDS .......... ...................................... Agency Funds account for assets held by a governmental unit in the capacity of agent fcr individuals, governmental entities and non-public organizations. Cable T.V. Trust - This 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 roll. Deposits - This fund accounts for deposits paid to the City which are subject to refund or held solely in custodial capacity. 61 City of Saratoga Combining Statement of Changes in Assets and Liabilities Agency Funds - For the year ended June 30, 2001 Balance Balance luly 1,2000 Additions Reductions June 30,2001 Cable T.V.Trust Assets: Cash and Investments $ 86,303 $ 7,ti30 S $ 94,133 Liabilities: Deposits payable $ 86,303 $ 7,830 $ - $ 94,133 Assessment Districts Bonds Assets: Cash and investments $ - $ 5,606 $ - S 5,606 Restricted cash and investments 361,246 192,329 (237,587) 315,988 Accounts receivable - 49,070 - 49,070 Total assets $ 361,246 $ 247,005 $ (237,587) $ 370664 Liabilities: Due to assessment district bondholders 5 361,246 $ 13,277 $ (3,859) $ 370,664 Deposits Assets: Cash and investments $ 485,374 $ 733,830 $ (485,374) $ 733,�30 Liabilities: Deposits payable $ 485,374 $ 733,830 $ (485,374) $ 733,830 Total Agency Funds Assets: r Cash and investments $ 571,677 $ 747,266 $ (485,374) $ 833,569 Restricted cash and investments 361,246 192,329 (237,587) 315,988 Accounts receivable - 49,070 - 49,070 Total assets $ 932,923 $ 988,665 $ (722,961) $ 1,198,627 Liabilities: - Due to assessment district bondholders 361,246 13,277 (3,859) 370,664 Deposits payable 571,677 741,660 (485,374) 827,963 Total liabilities S 932,923 $ 754,937 $ (459,233) $ 1,198,627 62 - CITY OF SARATOGA _ ACCOUNT GROUPS The General Fixed' Assets Account Group accounts for the cost of all City property, equipment, and infrastructure. The Lang-Tenn DebtAccount Group accounts for unmatured general long-term indebtedness of the City. 63 City of Saratoga Schedule of General Fixed Assets - By Source June 30, 2001 GENERAL FIXED ASSETS: Land and improvements $ 4,797,848 — Buildings and structures 6,176,179 Equipment and vehicles 2,.337,454 Infrastructure 98,820,446 Total general fixed assets $ 112,331,927 INVESTMENT IN GENERAL FIXED ASSETS: Expenditures from: General fund revenues S 110,872,519 ` Special revenue fund revenues 1,026,049 Capital projects fund re\enues 433,359 Total investment in general fixed assets $ 112,331,927 — 64 City of Saratoga `schedule of Changes in General Fixed Assets - By Source ;dune 30, 2001 Land and Buildings Equipment Improvements and Structures and Vehicles Infrastructure Totals Balance,June 30,2000 $ 4,797,848 $ 5,985,136 $ 2,412,193 $ $ 13,195,177 Additions: Expenditures from: General fund revenues - - 175,487 98,820,446 yti,9L)5,`�33 Special revenue fund revenues - 191,043 7,330 7 )5,373 Total additions 5 - $ 191,043 S 182,817 $ 98,820,446 5 yy,1()4,3(Ih Inventory adjustment: General fund revenue - - (4,411) - (4,411) Special revenue fund revenues - - (53,145) (53,145) Balance,June 30,2001 $ 4,797,848 $ 6,176,179 $ 2,537,454 $ 98,820,44Ei $ 112,331,927 65 City of Saratoga Schedule of General Fixed Assets - By Function June 30, 2001 Land and Buildings Equipment Improvements and Structures and Vehicles Infrastructure Totals Public safety $ - $ - $ 356,544 $ - $ 356,544 Community environment 1.14,383 292,707 - 407,090 Public works 46S,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 5,947,046 554,725 98,820,446 109,480,865 Intragovernmental 73,280 30,628 266,857 - 370,765 Totals $ 4,797,848 $ 6,176,179 $ 2,537,454 98,820,446 112,331,927 66 City of Saratoga Schedule of General Long-Term Debt June 30, 2001 .AMOUNT AVAILABLE AND TO BE PROVIDED FOR PAYMENT OF GENERAL.LONG-TERM DEBT: _ .Amount available for debt service $ 1.6,284 Amount to be provided for debt service 15,265,666 Total available and to be provided for payment of general long-term debt $ 15,281,950 GENERAL LONG-TERM:DEBT PAYABLE: (Maims payable 50,000 General obligation 1976 library bonds 100,000 — i_eneral Obligation 2001 library bonds 15,000,000 Compensated absences 131,950 Total general long-term debt payable $ 15,281,950 67 _ r� '� _ -,�� `1 fA+ yo .., i ,� ', �'� /��„�, - 1 �.� -:—, ,,��'� �,> ��_ , .,. i , �, ��� '``�- -� -� ��''°'Li lr':s�?�i4�r'.�5��'"" BLS I i I i '�I�,��+.3 c_� �. City of Saratoga General Fund Revenues - By Source Last ten fiscal years $3,000,000 $2,500,000 2 $ 000 00 0 $1,500,000 $1,000,000 500 000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 _ ■Property Taxes 170ther Local Taxes ®Intergovernmental 01'ranchise Fees _ ■Use of Money and Property ■Current Service Charges Current Property Other Inter- Franchise Use of Money Services Fiscal Year Taxes Local Taxes governmental Fees and Property Charges Totals 1992 $ 1,064,177 $ 2,258,079 $ 1,125,916 $ 667,800 $ 615,059 $ 1,307,341 $ 7,038,372 1993 991,862 2,180,000 1,047,480 647,989 209,111 1,553,690 6,630,132 _ 1994 1,045,975 2,338,826 1,029,463 758,611 183,061 1,587,425 6,943,361 1995 1,221,096 2,434,070 1,064,052 707,822 272,425 1,996,874 7,696,339 1996 1,546,162 2,965,069 1,152,968 669,467 343,295 2,036,854 8,713,815 1997 2,142,454 2,424,825 1,301,443 685,083 665,966 2,552,050 9,771,821 1.998 1,664,144 2,202,826 1,392,591 772,258 457,382 2,037,182 8,526,383 1999 1,864,766 2,328,071 1,680,670 777,560 472,198 1,705,692 8,828,957 2000 2,790,294 2,718,358 1,623,583 886,618 630,833 2,005,183 10,654,869 2001 2,065,051 2,938,209 1,725,765 876,652 930,430 1,962,122 10,498,229 Source: City of Saratoga Annual Financial Report 70 City of Saratoga General Fund Expenditures - By Function Last ten fiscal years $3,500,000 - 41011liINRt f Lr I415 ni{!I� ^ 6 a� l d�lld'l4 iC iN IP,I �I� a`, W'ixn641 V 111 P 44 ll r� A r' Jq US 'YI iIW illl'+I Ji �'iC"i7 rd} r�ullyl'd e p l;l`kI III ' �IJiIIP^lilltl ��I� il�"VI"II'li - " �iF I�I+`.lBNbl l�IV"h�I:Iry6Jw�V o `, ��i IrIIIIt�I�ir h Ur k r � 'I lililh9iiliijii�ilililn�i,; ` � Fl�n ai��q�h�l�liiiVh� "" r irk ilhJ�i°� h Ilil�6 $3,000,000 $2,500,000 v Vili�llllh l 9iJUll� Pii tl JI flr �il " rJ f J L. p lii V{ M t ll lii l� hr�I l i �'b qi1llil i r c $2,000,000 r ��l uJV'. Ilu1I�NU�f tri iI $1,500,000 J d v'. d II 1"I,I n Ilti V II pi VI 0 ti� lua � I,JiL.I I i �i L lii r r ill JuJ S ol�iurl�; r� yrl ii IN I'll, $1,000,000 P' lll'�Ihqu fii� ;M d'IIII hlhll�l ip $500,000 _ I h ll l l �tll'I n °l1H,71% r r r � �Iolli II Fii' VI III i ry 19921 1993 1994 1995 19 �9b 1997 1998 1999 2000 2001 ■Public:Safety E3 Environmental Services ®Public Works _ ©Community Service&Support ■General/Intragovernment ■Capital Outlay General/ Public Development Public Community Inter- Capital Fiscal Year Safety Services Works Services Governmental Outlay Totals _-_ 1992 IS 2,357,189 $ 737,911 $ 2,119,201 $ 665,699 $ 2,188,990 $ 1,955,104: IS 10,024,094 1993 2,523,782 645,466 1,896,690 786,702 2,139,162 601,792 8,593,594 1994 2,119,313 801,058 1,258,065 209,890 1,515,310 240,882 6,144,518 --- 1995 2,411,207 907,232 2,587,008 234,788 1,698,219 531,607 8,370,061 1996 2,322,425 1,098,931 1,444,155 177,837 1,819,188 154,69-5 7,017,231 1997 2,616,973 1,616,532 2,697,413 349,019 279,737 280,500 7,840,174 1998 2,598,233 65,502 877,204 179,928 1,074,696 226,310 5,021,873 1999 2,581,940 30,947 712,822 72,880 1,754,995 212,222. 5,365,807 2000 2,761,741 129,849 1,113,870 172,549 1,404,530 578,612. 6,161,151 2001 3,062,160 140,883 1,349,838 262,696 1,574,597 651,814 7,041,988 Source: City of Saratoga Annual Financial Report 71 City of Saratoga Property Tax Levies and Collections Last ten fiscal years i $3 000 000 6,000,000,000 --- $2,500,000 5,000,000,000 — $2,000,000 4,000,000,000 $1,500,000 3,000,000,000 $1,000,000 2,000,000,000 $500,000 is — $0 1,000,000,000 I N I 0 r rti r N 0 9 cV M d' in �O 1, 00 a� O O', 011 C� 6, a, C F- 0 Tax Levied Q r- a ON 0` 0` °` N N �—Value of Property Property Tax Value of Property Fiscal Levies and Subject to Local Year Collections Tax Rate 1992 $ 1,064,177 $ 2,809,614,703 1993 991,862 2,996,971,420 1994 1,045,975 3,181,662,768 — 1995 1,221,096 3,289,435,553 1996 1,546,162 3,398,224,679 — 1997 2,142,454 3,697,796,461 1998 1,664,144 4,029,381,944 1999 1,864,766 4,432,656,416 2000 2,790,294 4,823,743,087 2001 2,065,051 5,331,749,683 Sources: City of Saratoga Annual Financial Report California Municipal Statistics Inc.(1990-1992) — County of Santa Clara Tax Rates and Information Publication(1993-2001) 72 City of Saratoga - General Fund Tax Revenue Last ten fiscal years °1 i 'IIII UPgI IId III,P,P JII $6,000,000 III ui�f kl 1lrl' 4 II�I ll� qI,i1ial yF� I�`�, +IG III f�,f�ll IA11111il�ldfolif' IIII,,III r�+ li�Plt 111 pp J q t y IP II 1 IIHP{I�I ���I hP MY Y u� II �I 91 �I �i11°kI111111 Itll111d19h111IlIlI �IIIII�I II"Il�li'll IP h k� jl PI I141 l u lur iy�,, M V �� IIII {lAd y J, FBI } V A fill $5,000 000 ,Y 9 F I III III I I x I a�,I, d0511 +� M � , V Jr u A ,.,�rreN _ � dhl'qIIIIII I�IIII 1,III kll>II s, i i���I, �WhJ a i III I,`:� ` �II I Iwlo� u III I Pl,l�, �5 Ili �'fl � I III+� I IIkI�II�rV�IIIIVIfldll ll,� .� � 3 <J I�161h1gqI I�111111 iy I,IJIhI V II ,In!.I 1 I I,. 000 000 �I II i I tlC �r,% IIIIII11111II,iPlli, a'I Dill I $3,000,000 IP II Ir,',k �I�kl'II�IIJi � P,P a 4= k I IX y y ` �i�il Ylill Ylll —io�I'YI I!� f I I S I I 6I $2 000 oao +, I , . - I Dill U Liil I`'�I II .0f i +I I I $1,000,000 lr� i11 1 I:�"I �fIPIi�+I� a will�I;IIIII�I`li Illjll Iola Ik I I ;. I II II II�I;ti' II i, 92 1 993 1 994 19 95 199 b 1 �997 19 98 1 1_-- 999 2000 �0�1 ■Utility Users'Tax ■Property Tax(2) 1 ❑Sales Tax ❑Other Taxes(1) Fiscal Utility Year _ User's Tax Property Tax(2) Sales Tax Other Taxes(1) Totals 1992 $ 634,057 $ 1,064,177 $ 939,635 IS 684,387 $ 3,322,256 1993 735,562 991,862 910,834 533,604 2.,171,862 1994 715,239 1,045,975 958,436 665,151 3,384,801 1995 725,373 1,221,096 872,134 836,563 3,655,166 1996 729,468 1,546,162 896,799 1,338,802 4,511,231 1997 312,464 2,142,454 966,900 1,145,461 4,567,279 1998 - 1,664,144 1,057,677 1,145,149 3,866,970 1999 - 1,864,766 979,192 1,348,879 4,192,837 2000 - 2,790,294 1,071,122 1,647,236 5,508,652 2001 - 2,065,051 1,255,726 1,682,483 5,003,260 (1) Other Taxes include: Transient Occupancy Tax, heal Property Transfer Tax, Construction Tax, Business License 'Tax and Animal Licenses. P) Property Tax levy's are remitted in full by Santa Clara County which handles delinquencies and retains all interest and penalties. Source: City of Saratoga Finance Department 73 City of Saratoga Assessed and Estimated Actual Market Value of Taxable Property Last ten fiscal years j $6,000,000,000 i I : I $5,000,000,000 i $4,000,000,000 _ i I $3,000,000,004 ; t $ , 2 000 000 000 $1,000,400,000 I I 'I I II�i G I�II4 IIIII:II l i i i I G II I i i I Illl IIIII'I I 1992 199 3 1994 1995 1996 1997 1998 1999 2400 2001 0 Secured Property ■Unsecured Property ' --------- i i Fiscal Secured Unsecured Total Estimated Year Property Property Assessed Market 1992 $ 2,779,394,739 $ 30,219,964 $ 2,809,614,703 $ 2,809,614,703 _ 1993 2,966,543,181 30,428,239 2,996,971,420 2,996,971,420 1994 3,153,176,308 28,486,460 3,181,662,768 3,181,662,768 1995 3,261,741,964 27,693,589 3,289,435,553 3,289,435,553 _ 1996 3,363,964,334 34,260,345 3,398,224,679 3,398,224,679 1997 3,660,513,753 37,282,708 3,697,796,461 3,697,796,461 1998 3,990,741,994 38,639,950 4,029,381,944 4,029,381,944 _ 1999 4,392,456,823 40,199,593 4,432,656,416 4,432,656,416 2000 4,789,325,625 34,417,462 4,823,743,087 4,823,743,087 2001 5,292,676,050 39,073,633 5,331,749,683 5,331,749,683 Source: California Municipal Statistics Inc. The California Constitution requires properties to be assessed at full market value on the date or purchase but limits increases in assessed valuation to 2%annually. 74 City of Saratoga - Property Tax Rates (Per$100 of Assessed Valuation) - All Overlapping Governments Last ten fiscal years $1.2000 -�----- I I ', III II'�tl�q IIJ dVllr�hl No- i IPi11 li'I � I I II �i Ii I �I 11 IIII IIII III Ih� �141hiI,lUYIJII� 44rrp fil' III I � III Iu III 1 6�II,I IIIII I r I�IIIIryIgI[III lie Y Ili o- Ir..h, I�16 h r.c'W I 111 � �•:111111p7 I�I I - •- .III 4 �p$1.0000 �' II�,II i': 1Y rI IrNIIVi�iP�R� II141s,1 Vier "�� I�I�iIIIIIIII�II II r III tl �I�'lIlI1 a IIII& R Gnu Y�. 'F ��yl Ii'ir i. a III,J,I I{ Sul IIII,IIII I,I ,1�, IYI IIIII _Ls Ir IIIIIIbI{. IY,� III ri sl'I I,kI IIII Y r IN �u r I' I111+ III Ililll':J tl�� $0.8000 .' a1 Ihl IIIII IPI I,u Ilrrl �h � 1 r �Ilr q I. I I YI,uIIIIIYIIIrI II Illlllul IFII,G, � � � I�Y � i. rI1�, °JIY'iIIIII,IIiIIIIII,IIY I`�� N b SIIUIIi�lryllll� ] i f Il rid"III II�II�II�II��IWII a Por,.i��Ibi � .. I,' I a 4 IL I Y .6000$0 I I h I , r, IIII, IIIII IIII Y I I � ,, i ,d. P III U II III I@ IQ i 4�• I 4III Ii I1 Plwi $0.4000 pl'Irllhl'IIII�I�IdVIIuIh �I"'F w'III'p1P�al �I uoF P II l p,�p II � �u ill III III � I VI II �I,11 I iu $0.2000 i III I! III I,I �1I III IIII U IP...,� y llln 11 tl �.J,.v I III.,IIIII, IIII„! 1* r 1992 199 3 1994 9 �199 5 19 7 b 19 9 III 19 98 1999 2 000 �)(01 ®Basic Country Wide Levy ■School Districts ❑Special Districts&Other Fiscal Basic County School Special Districts Year Wide Levy Districts and Other 1992 $ 1.0412 $ - $ 0.0104 1993 1.0313 - 0.0165 1994 1.0305 - 0.0165 1995 1.0332 0.0903 0.0180 1996 1.0338 0.1170 0.0147 1997 1.0365 0.0743 0.0102. 1998 1.0412 0.0415 0.0098 1999 1.0405 0.0647 0.0082 - 2000 1.0343 0.0612 0.0085 2001 1.0380 0.0745 0.0075 Source: California Municpal Statistics Inc. 75 City of Saratoga Special Assessment Billings and Collections Last ten fiscal years $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 POM $8 0 000 $6 0 000 $4 0 000 $20,000 $- 1992 1 93 1994 1995 1996 1997 1998 1999 1-00C) 21101 ®Special Assessment Special Assessment Fiscal Billings and Year Collections 1992 $ 187,829 _ 1993 180,068 1994 176,280 1995 154,097 _ 1996 104,292 1997 83,101 1998 102,164 1999 55,505 2000 157,936 2001 95,973 — Source: City of Saratoga Annual Financial Report — Comprises Parking Districts#1 and#4 and Lighting and Landscaping District#1 in 1992-1998 Prior years also include Parking Districts#2 and#3 76 — City of Saratoga Ratio of General Obligation Bonded Debt to Assessed Value and Bonded Debt Per Capita Last ten fiscal years $6,000,000,000 _ j N9"III II'l if^^Vfnur"I III I'll a pµ' $600 � a fNIP I"II R, III NI�Ih IIIII I,. II III IN r Edi�mI;III�IIIaIlllull l IIII Iii41r�Ii II p $5,000,000,000 Nrlr III�Ihhlll Iti l r _ IIII II $50Q rl u'I I�IIh II utlu I VI I $4,000,000,000 II I Il IIIII°fII 'rr r��� r u JI II d 11I II i 1 �- I�:.m I. III II II II II }� $400 i d II I I I IIII I'. I" I 1 -- .°h „III If uVl�Ii�l II II[. I $3,00c,noo,000 l I I I� I III I I $300 I! I II IIII '.I I. hPl wIP N p1 IIIII;! I�OIIIIII�IdI:I l9 i r l FI�r l I,IIIIII ! $2,000,000,000 tl IIiIVII I'llll I r I�;IIIIIII 1 I, $ �QO I I I!I�lu.�IIII I I �I II p q Ir Ilrl^I a u` I, b. I,I II IIVVppfFI, �I IIII Itl IaYi'I �I S $1,000 U0 0 OUO - III ill"IIIII II II'I $100 ] I � I r II II el I I� II S � IIII I I III ` 4 it I; iI al. I J I I I u I I r,R l I I I 16 ., M �O � M C, O� O� � Cn p r^ e•- �--� r --i .--i .-i �� CV tom! -- —4--Assessed Value -->k—Bonded Debt Per Capita Net Bonded Fiscal Assessed Bonded Debt Year Population Value Debt Per Capita 1992 28,034 $ 2,809,614,703 $ 720,000 $ 26 1993 28,390 2,996,971,420 670,000 24 1994 28,709 3,181,662,768 615,000 21 1995 29,576 3,289,435,553 555,000 19 1996 29,579 3,398,224,679 490,000 17 _. 1997 30,591 3,697,796,461 415,000 14 1998 31,097 4,029,381,944 340,000 11 1999 31,255 4,432,656,416 265,000 8 -- 2000 31,320 4,823,743,087 185,000 6 2001 29,843 5,331,749,683 15,100,000 506 - Sources: County of Santa Clara Tax Rate and Information Publication California Municipal Statistics Inc. .-_ Note: Includes Library Bonds only 77 City of Saratoga Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures- Last ten fiscal years - � 1.60°6 1.40% 1,20% 1.00 0.80% o 0.60 0.40% 0.20°b ° 0.00 ° 1992 1993 ` 1994 19% 1996 1997 1998 1999 ®Debt Service% Percent of Total Debt Service to Fiscal Total General Fund General Fund Year Principal Interest Debt Service Expenditures Expenditures 1992 $ 50,000 $ 43,890 $ 93,890 $ 10,024,094 0.94% 1993 50,000 42,523 92,523 8,593,594 1.08% 1994 55,000 36,590 91,590 6,144,518 1.49% 1995 60,000 33,644 93,644 8,370,061 1.12% 1996 65,000 30,307 95,307 7,017,231 1.36% _ 1997 75,000 26,700 101,700 7,840,174 1.30% 1998 75,000 22,178 97,178 5,021,873 1,94% 1999 75,000 18,071 93,071 5,365,807 1.73% 2000 80,000 18,783 98,783 6,161,151 1.60% 2001 85,000 9,774 94,774 7,041,988 1.35% Includes General Obligation Bonds Source: City of Saratoga Finance Department 78 City of Saratoga Demographic Statistics Last ten fiscal years - 32,000 1,800,000 31,000 0 l l l l ,- III �III'I olllvhlll; lil IIIIIIII;I�4 30,004 '` 1,700,000 29,000 III iI I11J1gi1 y� , 1, 600,000 II 28,000 Ilil ;lou I I I� Y� 1,500,000 fI --- 27,004 i IIIII tlll Itlllll��l it II .. i lill 26,000 p""" "- �'I 1,400,000 N 911I'J: liil N e-+ oo rn o O� O O G C rA N N ! — i I ®City Population r■County Population Santa Clara City Fiscal City County Population Year Population Population %of County 1992 28,031 1,526,768 1.84`!0 1993 28,390 1,559,755 1.82% 1994 28,709 1,587,768 1.81% 1995 29,576 1,607,673 1.84`.ie 1996 29,579 1,612,258 1.83`.io 1997 30,591 1,653,061 1.85`.io - 1998 31,097 1,689,908 1.84% 1999 31,255 1,715,374 1.82% 2000 31,320 1,736,722 1.80% 2001 29,843 1,682,585 Source: State of California Department of Finance-Population Research Unit U.S.Census 2000 79 City of Saratoga Property Values, Remodeling and Construction Last ten fiscal years $6,000,000,000 $7,000,000 $5,000,0O0,000 $6,000,000 i $5,000,000 $4,000,000.000 $4,000,000 $3,000,000.000 $3,000,000 S2.000,000.000 $2,000,0{]0 f 51,000,000,000 $1,000,000 i $ $ N en -r in In N ao C, o _ c, rn s o a, rn a, o 0 I rn a, a, Q. o 492 7 993 1994 1995 1496 1997 1995 1999 2000 2001 ■Property Values ■Residential Remodeling&Construction -- ... $70,000,000 �_._._ _ ::::_.:: $60,000,000 $350,000,000 $50,000,000 $300,000,000 $40,000,000 $250,000,000 ` $200,000,000 $30,000,000 $150,000,000 $20,000 OOo $100,000,000 00 0[ (10 000 0 50 0� ) -00 I N M, t -r n � � �c rn o ,� a` a` , rn rn rn a, 01• a o ]992 1993 1994 1995 199ti 1997 1998 1999 2000 2001 o, a o, rn rn a a o ■Commercial Remodeling&Construction MBank Deposits Commercial Remodeling Residential Remodeling and Construction and Construction Fiscal Property Number Number Bank _ Year Values of Permits Value of Permits Value Deposits 1992 $ 2,809,614,703 53 $ 636,851 2,493 $ 27,263,597 $ 298,512,000 _. 1993 2,996,971,420 67 547,502 2,481 26,151,346 292,516,000 1994 3,181,662,768 94 1,509,805 2,653 23,020,867 304,441,000 1995 3,289,224,679 57 1,147,719 3,194 35,922,169 304,179,000 1996 3,398,224,679 69 1,171,533 2,535 66,013,893 331,014,000 1997 3,697,796,461 52 843,020 1,834 44,982,977 343,982,200 1998 4,029,381,944 47 5,300,593 1,844 48,230,194 376,130,000 1999 4,432,656,416 66 6,383,068 1,916 66,218,156 391,733,000 2000 4,823,743,087 57 4,362,875 1,960 65,901,107 N/A 2001 5,331,749,683 61 1,438,538 1,631 68,500,341 N/A ` Source: City of Saratoga Finance Department Bank deposits from Findley Reports and Sheshenoff Information Services 80 City of Saratoga Computation of Legal Debt Margin June 30, 2001 Assessed value $ 5,331,749,683 Bonded debt limit(15%of assessed value) $ 799,762,452 Amount of debt subject to limit: Total long-term debt 15,100,000 Legal debt margin $ 814,862,452 Source: City of Saratoga Finance Department 81 City of Saratoga Computation of Legal Debt Margin June 30, 2001 Percentage Amount Applicable Applicable to City of to City of Saratoga Saratoga _ DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Santa Clara County Flood Control and Water Conservation District Zone NC-1 11.908% 5 80,379 _ Santa Clara County Flood Control and Water Conservation District Zone W-1 3.706 369,859 Foothill-De Anza Community College District 1.778 1,777,912 Campbell Union High School District 5.612 1,122,400 Fremont Union High School District 3.663 3,465,1.98 Los Gatos Joint Union High School District 39.709 16,779,038 Campbell Union School District 7.280 2,999,237 Cupertino Union School District 6.294 4,279,920 _ Moreland School District 12.533 3,638,901 Saratoga Union School District 85.897 34,358,090 Midpeninsula Regional Open Space Park District 6.180 2,445,238 ` Saratoga Fire Protection District 97.623 5,831,741 City of Saratoga 100.000 15,100,000 City of Saratoga 1915 Act Bonds 100-000 790,000 Total Gross Direct and Overlapping Tax and Assessment Debt $ 93,037,913 Less:Santa Clara County FC and WCD,Zone NC-1 (100%self supporting) 80,379 Total Net Direct and Overlapping Tax and Assessment Debt $ 92,957,534 DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT: Santa Clara County General Fund Obligations 3.525% 17,537,404 _ Santa Calra County Board of Education Certificates of Participation 3.525 672,570 Foothill-De Anza Community College District Certificates of Participation 1.778 575,983 West Valley Community College Districts certificates of Participation 10.751 2,200,730 Los Gatos-Saratoga Joint Union High School district Certificates of Participation 39.709 1,981,479 Campbell Union School District Certificates of Participation 7.280 837,200 Cupertino Union School District Certificates of Participation 6.294 623,735 Moreland School District Certificates of Participation 12.533 747,593 Midpeninsula Regional Open Space Park District Certificates of Participation 6.180 4,500,784 Santa Clara Valley Water District Certificates of Participation 3.525 7,210,035 Santa Clara County Central Fire District Certificates of Participation 14.250 53,833 Total direct and overlapping general fund obligation debt $ 36,941,346 Gross combined total debt $ 129,979,259 (1) Net combined total debt $ 129,898,880 (1) 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 0.28% Total gross debt and overlapping tax and assessment debt 1.74% Total net direct and overlapping tax and assessment debt 1.74% Gross combined total debt 2.44% Net combined total debt 2.44% Source: California Municipal Statistics,Inc. _ 82 City of Saratoga - Principal Taxpayers June 30, 2001 Percent of Assessed Total Assessed Assessee Use Value Value Income Opportunity Saratoga Co. Office building $ 10,815,186 0.20% Carson Estate CO. Shopping center 9,900,103 0.19% Pfeiffer Ranch Investors Inc. Residential properties 9,105,196 0.17`.'/0 Public Storage Props IX Inc. Warehousing 7,890,365 0.15 David C.and Roxanne N.Peterschntidt,Trustee Single family residential 7,715,174 0.15% Bagher Navid,Trustee Single family residential 7,475,322 0.14% — David J.and Terri E.Morrison,Trustees Office building 7,087,871 0.13 San Jose Water Works Water utility 6,987,052 0.13% Argonaut Associates LLC Shopping center 5,132,303 0.1090 David L.House Single family residential 5,118,700 0 109% Richard J.Justice,Trustee Single family residential 4,933,587 0..09% Danna Blue Hills LLC Office building 4,778,942 0..09% Gary Valenzuela,Trustee Single family residential 4,590,000 0.09% lclbal A.Jusain and Sharmin S.Khan,Trustee. Single family residential 4,476,526 0.08% John H.and Judy H.Hart Single family residential 4,341,766 0.0800 Ray A.Russo,Sr.,Trustee Commercial 4,218,902 0.08°0 Cali Investments Commercial 4,214,133 0.08°0 Haresh and Vina Patel Single family residential 4,200,000 0.0800 Inn at Saratoga Inc, Commercial 4,148,493 0.08% Saratoga Oaks LLC Office building 3,999,766 0.08% Totals $ 121,129,387 2.29% Total assessed valuation $ 5,292,676,050 Source: California Municipal Statistics,Inc. 83 City of Saratoga Miscellaneous Statistics June 30, 2001 Date of Incorporation 1956 Form of Government Council-Manager Employees: Public safety 5 City manger's office 6 Recreation 10 _. Public works/ maintenance 21 Community development 9 Administrative services 10 Total employees 61 Area 12 square miles Miles of Streets 150 — Length of Storm Drains 45 miles Fire Protection: Saratoga Fire District: Number of stations 1 Number of firefighters 24 Number of reserve firefighters 15-20 — Central Fire District: Number of stations 2 Number of firefighters 12 ` Number of reserve firefighters 45 Police Protection: Number of stations 1 Number of police officers 65 Number of support personnel 5 Water Utility: San Jose Water Company: Number of meters 10,038 Average daily consumption 393 gallons per household Length of water mains 133 miles Length of storm drains 45 miles Sewer: West Valley Sanitation District: Number of connections 8,071 Length of sewer lines 122 miles Cupertino Sanitation District: Number of connections 2,074 Length of sewer lines 35 miles Culture and Recreation: Parks 15 Acres in parks 81 acres Taxable Sales $ 125,572,655 Registered Voters 18,658 Population 29,843 Sources: Various City records 84