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City of Saratoga, California
Comprehensive Annual Financial Report
For Fiscal Year Ended June 30, 2019
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Saratoga, California
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2019
City Council
Manny Cappello .......................................................................................................... Mayor
Howard Miller .................................................................................................... Vice-Mayor
Rishi Kumar ............................................................................................... Council Member
Mary-Lynne Bernald .................................................................................. Council Member
Yan Zhao .................................................................................................... Council Member
Presented under the direction of:
James Lindsay, City Manager
Finance & Administrative Services Department
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CITY OF SARATOGA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
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TABLE OF C ONTENTS
I NTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................... 9
GFOA Certificate of Achievement for Excellence in Financial Reporting ......................... 15
Principal Officers of the City .......................................................................................... 16
Organization Chart ......................................................................................................... 17
F INANCIAL SECTION
Independent Auditors ’ Report ........................................................................................... 20
Management’s Discussion and Analysis (Required Supplementary Information) ............. 22
Basic Fin a ncial Statements:
Government-Wide Financial Statements
Statement of Net Position .......................................................................................... 38
Statement of Activities and Changes in Net Position .................................................. 39
Fund Financial Statements
Governmental Funds:
Balance Sheet ........................................................................................................... 40
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Financial Statement of Net Position ............................... 41
Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 4 2
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balanc e s to the Government-Wide
Statement of Activities and Changes in Net Position ............................................. 4 3
Proprietary Funds:
Statement of Net Position .......................................................................................... 4 4
Statement of Revenues, Expenses, and Changes in Fund Net Position ......................... 45
Statement of Cash Flows ........................................................................................... 46
Fiduciary Funds:
Bal ance Sheet ........................................................................................................... 4 7
Basic Financial Statement Notes:
Notes to the Basic Financial Statements ..................................................................... 4 8
Required Supplementary Information
Budgetary Information .............................................................................................. 80
Modified Approach for City Streets Infrastructure Capital Assets ............................... 8 2
Pension Information .................................................................................................. 8 4
CITY OF SARATOGA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
6
TA B LE OF C ONTENTS CONTINUED
S UPPLEMENTARY I NFORMATION:
Non-Major Governmental Funds
Combining Balance Sheets ........................................................................................ 8 8
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........ 8 9
Combining Statement of Revenues, Expenditures and Changes in Fun d Balances
– Budget and Actual:
Capital Improvements .......................................................................................... 90
Landscape & Lighting Districts Special Revenue Funds........................................ 9 1
Library Bond Debt Service Fund .......................................................................... 9 2
Internal Service Funds
Combining Statement of Net Position ........................................................................ 94
Combining Statement of Revenue s, Expenses, and Change in Fund Balance ............... 96
Combining Statement of Cash Flows ......................................................................... 98
Fiduciary Funds
Combining Balance Sheet ........................................................................................ 102
Statement of Changes in Fiduciary Assets and Li abilities ......................................... 103
Capital Assets Used in the Operation of Governmental Funds
C o mparative Schedule by Source ............................................................................. 107
Schedule by Function and Activity .......................................................................... 108
Schedule of Changes by Function and Activity ........................................................ 1 10
Statistical Section (Unaudited)
Net Position by Component ..................................................................................... 114
Changes in Net Position .......................................................................................... 116
Fund Balance of Governmental Funds ...................................................................... 118
Governmental Activities Tax Revenues by Source ................................................... 1 20
Changes in Fund Balances of Governmental Funds .................................................. 1 22
Property Tax Rates - Direct and Overlapping Governments ...................................... 1 2 4
Assessed Value of Taxable Property ........................................................................ 1 2 6
Principal Property Taxpayers ................................................................................... 1 2 8
Property Tax Lev ies and Collections........................................................................ 1 2 9
Ratios of Outstanding Debt by Type ........................................................................ 1 30
Ratios of General Bonded Debt Outstanding ............................................................ 1 32
Legal Debt Margin Information ............................................................................... 1 3 4
Direct and Overlapping Governmental Activities Debt ............................................. 1 3 6
Demographic and Economic Statistics ..................................................................... 1 3 7
Principal E mployers ............................................................................................... 1 3 8
Full-Time Equivalent City Government Employees by Function ............................... 1 40
Operating Indicators by Function ............................................................................. 1 42
Capital Asset Statistics by Function ......................................................................... 1 4 4
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INTRODUCTORY SECTION
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C ITY OF S ARATOGA
C ITY H ALL
13777 F RUITVALE A VENUE
S ARATOGA, C ALIFORNIA 95070
(408) 868-1200
December 18, 2019
Honorable Mayor, City Council, and Citizens of the City of Saratoga, California
The Comprehensive Annual Financial Report (CAFR) of the City of Saratoga for the year ended June 30,
2019 is hereby submitted in accordance with mandated statutes. These statutes require that the City of
Saratoga issue a report on its financial position and activity, and that an independent firm of certified public
accountants audit the report. This annual report was prepared in accordance with accounting principles
generally accepted in the United States of America. City Management is responsible for both the accuracy of
the data and the completeness and fairness of the presentation, including all disclosures.
To provide a reasonable basis for making these representations, the City has established internal controls to
provide reasonable, rather than absolute, assurance that the financial statements will be free of material
misstatement. To the best of our knowledge and belief, the enclosed data is accurate in all material respects
and reported in a manner designed to present fairly the financial position and results of operations of the
City’s various funds. This report intends to present the reader with a comprehensive view of the City’s
financial position and the results of its operations for the fiscal year ending June 30, 2019, along with
additional disclosures and financial information designed to enable the reader to gain an understanding of the
City’s financial activities.
The report was prepared as prescribed in Governmental Accounting Standards Board (GASB) Statement
No. 34, Basic Financial Statements and Management’s Discussions and Analysis for State and Local
Governments. To facilitate the public’s understanding and usefulness of the City of Saratoga’s financial
statements, GASB Statement 34 requires that management provide a narrative introduction, overview,
and analysis to accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). The design of this formal letter of transmittal is to complement the MD&A and
should be read in conjunction with it.
Unaudited sections of this document are presented to supplement the basic financial statements. While not
audited, the supplemental information is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for operational, economic, and historical context.
THE REPORTING ENTITY AND ITS SERVICES
The City of Saratoga (City), incorporated in 1956, is located 40 miles south of San Francisco in the Santa
Clara Valley. The City currently covers a land area of approximately 12 square miles and contains a
population of 31,407 as of January 1, 2019, as reported by the California Department of Finance. The City is
a general law city of the State of California and operates under a council-manager form of government.
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-
10
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 six 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 and overseeing the daily operations of the City.
The City provides a range of services including public safety, development regulation, public works,
community and recreation activities and events, and general administrative functions. As a minimal service
city, operations are supplemented with service contracts. 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, and enhancement of services. Saratoga
residents who wish to assist the City Council in forming government policy may do so by serving on an
advisory commission. The commissions act in an advisory capacity to the City Council, and are comprised
of the Heritage Preservation Commission, Library Commission, Parks and Recreation Commission, Planning
Commission, Traffic Safety Commission, and Youth Commission.
The financial reporting entity (the City) includes all the fund activity of the primary government, as well as
all of its component units. Component units are legally separated entities for which the City is fully
accountable. The City does not currently report any Component Units. Blended component units, although
legally separate entities, are in substance, part of the City’s operations and data from these units are combined
with data of the City. Accordingly, the operations of the Landscaping and Lighting Assessment Districts, the
West Valley Clean Water Program Authority (WVCWP) and the Arrowhead Community Facilities District
(CFD) are reported in the City’s financial statements.
ECONOMIC CONDITIONS AND OUTLOOK
Saratoga is viewed as a desirable place to live in the Silicon Valley due to its highly-rated schools,
beautiful neighborhoods nestled in the foothills at the western edge of the valley, and close proximity to
many businesses associated with the high technology industry. Saratoga is predominantly a residential
community with limited commercial or industrial activity within City boundaries.
In general, the City is fiscally protected by the stability of its tax revenues. As is typical for California
cities, the City of Saratoga’s largest funding sources are property tax, franchise fees, sales tax, and
development fees and permits. It should be noted, however, that while development fees are a significant
funding source, expense related to the intake of this fee-based revenue more than offset the revenue
received.
Property Tax
Balancing the growing services provided to the community and the increasing costs to maintain aging public
infrastructure has been manageable in recent years given the enhanced growth in property tax revenue.
Property tax is the City’s most significant form of revenue making up 59% of total General Fund revenues.
In the last seven years, property taxes have grown extraordinarily fast. In large part this is due to the return of
the City’s full Tax Equity Allocation (TEA) and the addition of Educational Revenue Augmentation Fund
(ERAF) allocations. In FY 2018/19, the fourth year of the five-year TEA full-funding plan, the City’s
additional tax allocation of approximately $220,000 and ERAF revenues of $532,000 accounted for 62.5% of
the $1.2 million growth in property tax revenue.
Franchise Fees
Franchise Fees are assessments on a number of utility services including gas, electricity, water, cable, and
solid waste. These assessments are collected by the service companies and subsequently remitted to the City.
The assessments are determined by easement formulas or a percentage of service costs and are a pass-through
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fee on their utility billings. With most of these services considered necessities in an urban setting, there is
little fluctuation in the revenue stream. Cable revenue has increased due to growth in the use of internet
services. Over the last several years, solid waste franchise fee revenue has increased with the rise in service
charges. Both of these fees are expected to remain fairly flat in the future.
Sales Tax
With Saratoga primarily a residential community with limited retail sources, Sales Tax revenue is small in
comparison to other cities of similar size. In an average year, the City receives approximately $1 million in
Sales Tax, which is derived primarily from restaurants, grocery and drug stores, and gas stations. Although
spending habits are migrating towards online purchases, Saratoga’s Sales Tax revenue is anticipated to
remain fairly steady due to the in-person or immediate need for basic goods and services purchased.
Development Fees
Development fee revenue is derived from services related to planning reviews, planning applications,
building plan reviews, engineering reviews, building inspections, and all permits, fees and costs associated
with performing these activities. These regulatory services ensure compliance with all applicable laws, and
the health and safety of the community. Although the entire community benefits from an enforced regulatory
program, the service requestor initiates the development change and benefits the most from it. Therefore, the
service requestor pays for most, if not all, of the costs. While the financial strength of the Saratoga
community has insulated this revenue source from minor economic fluctuations in the past, the recession
years proved that development activity does correlate with strong economic ebbs and flows.
Fiscal Outlook
For Saratoga, these main funding sources continue to be stable and reliable. For the past seven fiscal years,
Saratoga’s revenue has increased at a steady pace through a recovery being led by the Silicon Valley’s strong
housing and labor markets. But with FY 2019/20 the last year of the TEA allocation boost, future budget
years will reflect much slower revenue growth, coming only from increases in assessed valuation.
Recognizing that the large increases in revenue growth have ended, is as critical to the long-term fiscal health
of the City as is containing operating expenditure growth. Moving into the new normal of slower property
tax revenue growth, additional sources of revenue must be considered in the future for the City to adjust to
the changing needs in the community, retain a highly competent workforce, and maintain aging public
infrastructure.
During this time of financial stability, the City is exploring measured and careful approaches to expand
services to address the needs of the community, become more inclusive, and respond to increasing mandates.
The City is focused on maintaining its commitment to its basic obligations, while keeping safeguards in place
that will allow the City to respond quickly and effectively in the event of a recession, without sacrificing core
services.
FINANCIAL INFORMATION AND MAJOR INITIATIVES
Financial Controls
City Management is responsible for establishing and maintaining an internal control structure designed to
ensure that the assets of the City are protected from loss, theft, or misuse, and to ensure that adequate
accounting data is compiled to allow for the preparation of financial statements in conformity with generally
accepted accounting principles. The internal control structure is designed to provide reasonable, but not
absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1)
the cost of a control should not exceed benefits likely to be derived, and (2) the valuation of costs and benefits
requires estimates and judgments by management.
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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 City
Management.
For cash management, the City practices a passive approach to investments and maintains flexibility by
managing a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with
maturities planned to coincide with cash needs. Idle cash is invested in certain eligible securities as
constrained by law and further limited by the City’s investment policy. The goals of the City’s investment
policy are safety, liquidity, and yield. Cash management is tracked by fund and reconciled monthly.
In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget approved by the City Council.
Activities of the general fund, special revenue funds, capital projects funds and debt service funds are
included in the annual appropriation.
The level of budgetary control (i.e., the level at which expenditures cannot exceed the appropriated amount)
is at the fund level. The City also maintains an encumbrance accounting system as another method of
maintaining budgetary control. Encumbered amounts lapse at year-end with the exception of the Capital
Improvements Projects, which are multiple-year projects. On occasion, the responsible department at year-
end reviews outstanding encumbrances of a material nature, and if deemed critical, a recommendation is
made to the City Council to take action by Resolution to re-appropriate these funds into the following year’s
budget.
Major Initiatives
The fiscal year 2018/19 budget was designed to enhance the quality of life for all Saratoga residents by
focusing on the City Council’s priorities and enhancing community enrichment. Enhancements in healthy
lifestyle programs, youth development programs, community engagement, and infrastructure maintenance
were prioritized.
In addition, the FY 2018/19 Budget contained a $1 million contribution for the City’s Tier I Unfunded
Accrued Liability (UAL) payment, and another $50,000 to pay off the City’s Tier II and Tier III unfunded
liabilities to proactively reduce the City’s UAL liability in the effort to mitigate pension funding impacts to
City services in the future. In past fiscal years, the Council committed to an annual liability payment of
$500,000 toward the Tier I liability, then increased that amount to $750,000 in fiscal year 2017/18 after
several actuarial changes increased the liability by approximately 40%. The Tier II and Tier III liabilities
occurred with the prior year’s actuarial changes and were paid off in full in fiscal year 2018/19. Additional
financial challenges are expected in upcoming years as the City addresses a proportional share of the Santa
Clara County Sheriff’s Office Public Safety required UAL contributions through increased service costs.
Streets are one of the most visible and fundamental services provided by the City as they are used daily by
residents going to work, school, or completing everyday errands. Consequently, improving the conditions of
our local roads has been a top priority with the City Council continuing to support $2 million for roadway
resurfacing and restoration in fiscal year 2018/19. The City reached this goal in fiscal year 2018/19 due in
part to the passage of Senate Bill (SB) 1 and VTA’s Measure B, which raised the gas tax, vehicle registration
fees, and the County sales tax. This is consistent with the Council’s strategic goal of maintaining the City’s
infrastructure in a safe, sustainable, and cost-effective manner.
In FY 2018/19, the City also increased its funding commitment for West Valley Community Services to
provide additional case management work for Saratoga residents. West Valley Community Services
provides a wide range of services, including benefits assistance (such as Covered California and CalFresh) for
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low income and high-risk households, a food pantry that serves Saratoga and other neighboring communities,
housing resources for homeless individuals and families or those at risk for losing their home, emergency
financial assistance, educational programs, and more. Since 2015, West Valley Community Services has
seen a 35% increase in demand for services.
In FY 2018/19, the City began providing fiscal agent services to support two external community groups: the
West Valley Clean Water Program Authority (WVCWP) and the Arrowhead Community Cooperative,
Incorporated (ACCI). The WVCWP Joint Powers Authority provides facilitation of collaborative stormwater
and pollution prevention efforts to assist the four West Valley cities comply with the municipal stormwater
permit, and to improve water quality. ACCI represents a Community Facility District made up of thirty-nine
parcels in a Saratoga hillside neighborhood. The City facilitated the issuance of the CFD’s bond for water
infrastructure improvements, payments for the water infrastructure project, and the debt service related to the
bond. For both of these entities, the City provides oversight for financial transactions, but does not manage
the entity’s functions or activities.
INDEPENDENT AUDIT
The City engaged Chavan & Associates, LLP to express an opinion on the financial statements based on
their audit. The audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation. Generally accepted
auditing standards set forth in the General Accounting Office’s Government Auditing Standards were used by
the auditors in conducting the engagement. The City’s Annual Financial Report received an unmodified
(clean) opinion from the auditors. The independent auditors’ report is presented as the first component of
the financial section of this report.
In addition to meeting the requirements set forth in statutes, the audit was also designed to meet the
requirements of the federal Single Audit Act of 1984, as amended, and the related U.S. Office of
Management and Budget’s Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. The City’s federal financial assistance program also received an unqualified (clean)
opinion from the auditors.
Awards
The Government Finance Officers Association (GFOA) of the United States and Canada awarded a
Certificate of Achievement to the City for its Excellence in Financial Reporting on the CAFR for the fiscal
year ended June 30, 2018. In order to be awarded a Certificate of Achievement, the City published an easily
readable and efficiently organized financial report. This report satisfied both generally accepted accounting
principles and applicable legal requirements.
The Certificate of Achievement is valid for a period of one year. We believe our current CAFR continues to
meet the Certificate of Achievement program’s requirements, and plan on submitting it to the GFOA to
determine its eligibility for another certificate.
ACKNOWLEDGEMENTS
This CAFR represents the culmination of numerous hours of hard work expended by many individuals in the
Finance & Administrative Services Department. In particular, we would like to express our appreciation to
Dennis Jaw, Finance Manager for his preparation of this annual financial report, and to our supporting staff
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members: Ann Xu, Accountant; Karen Caselli, Lead Accounting Technician; Julie Ingraham, Accounting
Technician; and Gina Scott, Administrative Analyst for their assistance with the audit and exemplary services
throughout the year. Furthermore, we would like to thank Chavan & Associates, LLP Certified Public
Accountants for their assistance in the preparation of this report. Finally, we would like to give credit to the
City Council for their ongoing interest and support in planning, conducting and advising on the operations of
the City in a responsible and representative manner.
Respectfully submitted,
James Lindsay Mary Furey
City Manager Finance and Administrative Services Director
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Government Finance Officers Association
Certificate of
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, 2018
Executive Director/CEO
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CITY OF SARATOGA
ELECTED OFFICIALS AND
ADMINISTRATIVE PERSONNEL
As of June 30, 2019
CITY COUNCIL
Manny Cappello - Mayor
Howard Miller - Vice-Mayor
Rishi Kumar
Mary-Lynne Bernald
Yan Zhao
CITY STAFF
James Lindsay – City Manager
Crystal Bothelio – Assistant City Manager
Debbie Bretschneider –City Clerk
Mary Furey – Administrative Services Director
Debbie Pedro – Community Development Director
John Cherbone – Public Works Director
CITY ATTORNEY
Richard S. Taylor – Shute, Mihaly & Weinberger, LLP
INDEPENDENT AUDITORS
Chavan & Associates, LLP Certified Public Accountants
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FINANCIAL SECTION
CHAVAN & ASSOCIATES, LLP
CERTIFIED PUBLIC ACCOUNTANTS
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the
City Council of the City of Saratoga
Saratoga, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of the City of Saratoga (the “City"), as of and for the year
ended June 30, 2019, and the related notes to the financial statements, which collectively comprise City’s
basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements The City’s management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America, the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the City of Saratoga, as of June 30, 2019, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
CHAVAN & ASSOCIATES, LLP
CERTIFIED PUBLIC ACCOUNTANTS
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Other Matters
Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s
discussion and other required supplementary information, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s financial statements as a whole. The introductory section, combining individual non-
major fund statements and schedules, and statistical section, as listed in the table of contents, are presented
for purposes of additional analysis and are not a required part of the financial statements. The combining
individual non-major fund statements and schedules have been subjected to the auditing procedures applied
in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole. The introductory and statistical sections have not
been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 9,
2019 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
December 9, 2019
San Jose, California
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
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INTRODUCTION
The Management’s Discussion and Analysis (MD&A) is a required section of the City’s Comprehensive
Annual Financial Report (CAFR), as shown in the overview below. The purpose of the MD&A is to
present discussion and analysis of the City’s financial performance during the fiscal year that ended on
June 30, 2019. This report will (1) focus on significant financial issues, (2) provide an overview of the
City’s financial activity, (3) identify changes in the City’s financial position, (4) identify any individual
fund issues or concerns, and (5) provide descriptions of significant asset and debt activity.
This information. presented in conjunction with the annual Transmittal Letter and Basic Financial
Statements is intended to provide a comprehensive understanding of the City’s operations and financial
standing.
Required Components of the Annual Financial Report
FISCAL YEAR 2018/19 FINANCIAL HIGHLIGHTS
• Total net position, or the City's assets plus deferred outflow of resources ($157.5 million) less
its liabilities plus deferred inflow of resources ($23.7 million), was $133.8 million as of June
30, 2019. This is an increase of $4.5 million over the prior fiscal year, which is primarily due to
an increase in property tax revenue and capital grants.
• The City’s Net Pension Liability is $7.2 million. This is a decrease of $0.3 million over the
prior fiscal year, primarily due to additional contributions made by the City to reduce this
liability.
• Net Position is comprised of $115.2 million for investment in capital assets, net of depreciation
and related debt, $2.7 million restricted for specific purposes, and $15.8 million in Unrestricted
Net Position (page 38).
• Total City-wide revenues of $31.0 million consists of $21.8 million in general revenue and $9.2
million in program revenue (page 39).
• City expenses total $26.6 million (page 39).
Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
23
• The Governmental Funds fund balances total $20.5 million, with $14.7 million in the General
Fund, $3.2 million in the Capital Improvement Funds, and $2.6 million in Other Governmental
Funds. This represents an increase of $1.4 million from the prior year (page 40).
• General Fund revenues total $24.1 million, while General Fund expenditures total $20.9 million
(page 42).
THE BASIC FINANCIAL STATEMENTS
The Basic Financial Statements are comprised of 1) Government-Wide (City-wide) Financial Statements,
and; 2) Fund Financial Statements. These two sets of financial statements provide the reader two different
perspectives of the City's financial activities and financial position.
Government-Wide Financial Statements provide a longer-term view of the City's activities as a whole and are
comprised of the Statement of Net Position and the Statement of Activities. The Statement of Net Position
provides summary level information about the financial position of the City, including all its capital assets
and long-term liabilities on a full accrual basis, similar to that used by corporations. The Statement of
Activities provides summary level information about the City's revenues and expenses, also on a full accrual
basis, with the emphasis on measuring net revenues and/or expenses for each of the City's programs. The
Statement of Activities illustrates the change in Net Position for the fiscal year.
City financial activities are required to be grouped as either government activities or business-type activities.
The amounts in the Statement of Net Position and the Statement of Activities are required to be separated into
governmental activities or business-type activities in order to distinguish between the two types of activities.
In the case of the City of Saratoga, there are no business-type activities as of June 30, 2019.
Fund Financial Statements report the City's operations in more detail than Government-Wide statements and
focus primarily on the short-term activities of the City's General Fund and other major funds. The Fund
Financial Statements measure current revenues and expenditures and fund balances; they exclude capital
assets, long-term debt, and other long-term amounts.
Major funds account for the major financial activities of the City and are presented individually, while the
activities of non-major funds are presented in summary with subordinate schedules presenting the detail for
each of these other funds in the Supplementary Information section. Major funds are explained below.
The Government-Wide Financial Statements
Government-Wide financial statements are prepared on the accrual basis, which means they measure the flow
of all economic resources of the City as a whole. The Statement of Net Position and the Statement of
Activities present information about the following:
Governmental Activities - All of the City's basic services are considered to be governmental activities,
including general government, community development, public safety, transportation, and, culture and
leisure. These services are supported by general City revenues such as taxes, and by specific program
revenues such as development and recreation program fees.
Business-Type Activities - This category includes enterprise activities such as water, sewer, and utilities.
Unlike governmental services, these activities are meant to be fully supported by charges paid by users, based
on the services used. The City of Saratoga currently does not have any business-type activities.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
24
Fund Financial Statements
A fund represents a grouping of related accounts and is used to maintain control over resources that are
segregated for specific activities or objectives. The City, like other local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements.
Fund financial statements provide detailed information about each of the City's most significant funds, called
major funds. The concept of major funds, and the determination of which funds are classified as major funds,
was established by GASB Statement 34 and replaces the concept of combining like funds and presenting
them in total. Instead, each major fund is presented individually, with all non-major funds summarized and
presented in a single column. Subordinate schedules present the detail of these non-major funds. Major
funds present the major activities of the City for the fiscal year, and may change from year to year as a result
of changes in the pattern of the City's activities. The City's funds are segregated into three types:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds - The City's basic services are reported in governmental funds, which focus on how
money flows into and out of those funds and the balances available at year-end. Financial statements are
prepared on the modified accrual basis, which means they measure only current financial resources and uses.
Carrying amounts for capital assets and other long-lived assets, along with long-term liabilities are not
presented on the balance sheet in the governmental fund financial statements. Unlike the Government-Wide
financial statements, Governmental Fund financial statements focus on near-term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating the City's near-term financing requirements.
Proprietary Funds – Internal service funds are an accounting device used to accumulate and allocate costs
internally among the City’s various functions. The City uses internal service funds to account for
liability/risk management, worker’s compensation, office equipment support services, information
technology services, vehicle and building maintenance, and vehicle and information technology
equipment replacement. Because internal service funds primarily benefit governmental functions, they
have been included with the governmental activities in the Government-Wide financial statements.
Fiduciary Funds – These funds account for assets held by the City in a trustee capacity or as an agent for
individuals, private organizations, other governmental units, and/or other funds. Fiduciary funds are not
reflected in the government-wide financial statements because these resources are not available to support
the City's programs. Beginning in Fiscal Year 2018/19, the City is reporting three new fiduciary funds:
The West Valley Clean Water Program, the 2018 Arrowhead Community Facilities District (CFD) Bond,
and the Arrowhead CFD Project. Additional information regarding these funds can be found in Note 1 of
the financial statements.
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements. The notes can be found
immediately following the fund financial statements.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
25
REQUIRED SUPPLEMENTARY INFORMATION
Required supplementary information, other than presented in this MD&A, follows the Notes Section and
includes a budgetary comparison for the General Fund as presented in the Governmental Fund Financial
Statements, and information on the modified approach for city streets and infrastructure.
SUPPLEMENTARY INFORMATION
Combining and individual fund statements and schedules are included to provide additional information
on non-major governmental funds including special revenue, debt service, and capital project funds, as
well as proprietary internal service fund information and uses of capital assets. An un-audited statistical
section provides historical and current data on financial trends, revenue and debt capacity, demographic
and economic information, and operating information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position serves over time as an indicator of the City's financial position. The City's Total Net Position
increased $4,451,065 from $129,341,992 in Fiscal Year 2017/18 to $133,793,057 in Fiscal Year 2018/19.
The primary reason for the increase in net position is an increase in property tax revenues and capital grants.
The net pension liability decreased $0.3 million as a result of additional pension contributions made by the
City.
The most significant portion of the City's Net Position ($115,249,609 or 86.1%) accounts for its investment in
capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.) less any related debt
used to acquire those assets that are still outstanding. These capital assets represent infrastructure which
provides services to the citizens, consequently, these assets are not available for future spending.
Of the City’s Net Position, $2,718,008 or 2.0% is subject to external restrictions on how the funding may be
used. Within the restricted Net Position total, $1,621,946 is for Landscape & Lighting districts, $932,880 is
for repayment of long-term debt, and $163,182 is for environmental services.
The remaining balance of $15,825,440, or 11.8% of the City's Net Position, is unrestricted and may be used
to meet the City's ongoing obligations to citizens and creditors.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
26
Governmental Activities
2019 2018
Assets
Current assets 29,599,639$ 26,959,576$
Capital assets 124,134,211 122,459,410
Total Assets 153,733,850 149,418,986
Deferred Outflow of Resources
Deferred Outflow 3,728,611 3,711,379
Total Deferred Outflow of Resources 3,728,611 3,711,379
Liabilities
Current liabilities 6,817,238 5,608,315
Long-term liabilities 15,754,010 16,635,186
Total Liabilities 22,571,248 22,243,501
Deferred Inflow of Resources
Deferred Inflow 1,098,157 1,544,871
Total Deferred Inflow of Resources 1,098,157 1,544,871
Net Position
Net investment in capital assets 115,249,609 113,052,916
Restricted for environmental services 163,182 213,182
Restricted for special assessment funds 1,621,946 1,385,339
Restricted for debt service 932,880 997,756
Unrestricted 15,825,440 13,692,799
Total Net Position 133,793,057$ 129,341,992$
Net Position
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
27
Governmental Activities Increase
Functions/Programs 2019 2018 (Decrease)
Program Revenues
Charges for services 5,499,813$ 6,174,109$ (674,296)$
Operating grants and contributions 94,795 90,257 4,538
Capital grants and contributions 3,630,724 218,756 3,411,968
Total Program Revenues 9,225,332 6,483,122 2,742,210
General Revenues
Property taxes 15,250,230 14,123,801 1,126,430
Sales taxes 1,207,471 1,124,647 82,825
Local taxes 896,420 960,363 (63,943)
Franchise taxes 2,289,964 2,166,165 123,799
Motor vehicle in-lieu 15,089 16,091 (1,002)
Intergovernmental revenues 1,222,823 801,748 421,075
Investment earnings 697,863 318,699 379,164
Other revenues 205,395 212,543 (7,148)
Total General Revenues 21,785,255 19,724,056 2,061,199
Expenses
General and intergovernmental services 6,465,250 6,009,582 455,668
Public safety 6,004,406 5,728,276 276,130
Public works 10,271,134 7,942,898 2,328,236
Community services 1,286,667 1,594,469 (307,802)
Community development services 2,198,053 2,285,452 (87,399)
Interest on long-term debt (unallocated)334,012 358,703 (24,691)
Total Expenses 26,559,521 23,919,380 2,640,141$
Increase / (Decrease) in Net Position 4,451,065 2,287,798 2,163,267
Net Position, Beginning of Year 129,341,992 127,054,194 2,287,798
Net Position, End of Year 133,793,057$ 129,341,992$ 4,451,065$
Statement of Changes in Net Position
As shown in the above Statement of Changes in Net Position schedule, program revenues increased by
$2,742,210 from the prior fiscal year for governmental activities. General revenues increased by
$2,061,199 from the prior year. This resulted in a total increase in revenues of $4,803,409. Expenses
increased by $2,640,141 from the prior year primarily due to increased investment in capital outlay
activity.
With total program and general revenues for Fiscal Year 2018/19 at $31,010,587 and total expenses at
$26,559,521, the net activity resulted in an increase in Net Position of $4,451,065.
An analysis and graphical representation of the changes in revenues and expenditures by type of
significant events follows:
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
28
Revenues
For Fiscal Year 2018/19, the growth in property tax revenues reflect the ongoing strength of the San
Francisco Bay Area economy. The increase in Capital Grants illustrate the City’s initiative to seek
funding to improve infrastructure, as there was a significant increase in activity for grant-funded Public
Works and Community Services capital projects.
General Revenues increased by $2,061,199 from the prior year. The most significant changes include:
• Property Tax revenue increased $1,126,430 over the prior year. The increase is due to the continuing
demand for housing in the region, which has resulted in higher assessed valuations of property within
the City upon turnover, plus the incremental TEA increase in the property tax allocation percentage.
• Intergovernmental revenue increased $421,075 primarily due to increased Gas Tax and Road Repair
and Accountability Act of 2017 revenues related to the Road Maintenance and Repair funding.
Program Revenues increased by $2,742,210 from the prior year. The most significant changes include:
• Capital Grants & Contributions increased $3,411,968 from the prior year primarily due to significant
progress of the Prospect Road Improvements project, which is funded mostly by the Federal Highway
Safety Improvement Program (HSIP) grant through Caltrans.
• Charges for Services decreased by $674,296 from the prior year due to a significant decrease in
construction and remodeling, resulting in a sharp decrease in building permit related fees.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
29
Expenses
Fiscal Year 2018/19 expenses increased by $2,640,141, primarily due to capital outlay activity.
Compared to the prior year, the GASB 68 pension expense adjustment decreased expenses by $1,541,216.
This adjustment is broken down as follows:
Increase
2019 2018 (Decrease)
General and intergovernmental services (107,855) 394,051 (501,906)
Public works (135,425) 522,948 (658,373)
Community services (28,943) 111,074 (140,017)
Community development services (47,852) 193,068 (240,920)
Total Adjustment (320,075)$ 1,221,141$ (1,541,216)$
Share of Net Pension Liability Adjustment
The following analysis includes the Net Pension Liability (NPL) adjustment decreases listed above:
• Public Works expenses increased by $2,328,236 primarily due to capital outlay activity.
• Public Safety increased by $276,130 due to increases in sheriff contract costs.
• General Services increased by $455,668 primarily due to an increase in the annual additional payment
made to reduce pension liability.
• Community Services decreased by $307,802 primarily due to increased partnership with Los Gatos
Saratoga Recreation (LGS) for recreational services offered by the City.
• Community Development decreased by $87,399 primarily due to the aforementioned reduction in
building activity.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
30
MAJOR AND OTHER GOVERNMENTAL FUNDS: CHANGE IN FUND BALANCE
A summary of the changes in fund balance of the Major Funds and Other Governmental Funds is
presented below:
Other
Capital Governmental
General Improvement Funds
Total Revenues 24,115,948$ 5,515,696$ 1,550,769$
Total Expenditures 20,887,805 7,458,141 1,404,038
Revenues Over
(Under) Expenditures 3,228,143 (1,942,445) 146,731
Transfers in 158,391 2,127,626 25,000
Transfers out (1,840,867) (470,150) -
Net change in fund balances 1,545,667 (284,969) 171,731
Beginning of year 13,133,917 3,537,026 2,383,095
End of year 14,679,584$ 3,252,057$ 2,554,826$
Major Funds
The General Fund and the Capital Improvement Funds are listed as Major Funds in Fiscal Year 2018/19.
The Other Governmental Funds include thirty Landscape and Lighting Districts and Storm Drain funds
(presented as one combined fund in the financials) and the Library Bond Debt Service Fund. The total
net change from fiscal year transactions, including Major Funds and Other Governmental Funds, was an
increase of $1,432,429.
General Fund
As shown in the Major Funds table above, the net change in the General Fund's ending fund balance is an
increase of $1,545,667. This is a result of the net operating revenues exceeding net operating
expenditures.
General Fund revenue increased from the prior year for a net revenue gain of $1,145,840. This is
primarily due to significant increases in property tax ($1,202,647) as a result of the strength of the
housing market. General Fund revenue budgets are conservatively based upon prior year experience and
revenue specific information.
Expenses are budgeted at anticipated program needs at not-to-exceed projected funding levels. However,
the City has opted to commit additional funding towards the Unfunded Accrued Liability, or UAL, related
to pensions. In Fiscal Year 2018/19, the City Council directed staff to make a $1,000,000 payment
towards the UAL. This payment is in excess of the required minimum contribution amount required,
thereby reducing the actual liability. As of June 30, 2019, the Net Pension Liability, or NPL, is
approximately $7.2 million. This is a decrease of $0.3 million over the prior fiscal year, primarily due to
this additional payment made.
Capital Improvement Project Fund
As shown in the table on the previous page, the net decrease of $284,969 in the Capital Improvement
Funds occurred as additional progress was made on various capital projects, particularly for Annual
Roadway Improvements and Prospect Road Improvements.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
31
Other Governmental Funds
Of the net $171,731 increase in Other Governmental Funds, the collective 30 Landscaping & Lighting
District and Storm Drain funds comprise $236,607 of the total. The Library Bond debt service fund
balance decreased by $64,876 due to adjustments in property tax assessments regularly made as the bond
matures.
GENERAL FUND – BUDGETARY HIGHLIGHTS
Changes from the City's General Fund original budget to the final budget are detailed in the Required
Supplementary Information Section along with a comparison to actual activity for the fiscal year.
Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a
resolution of the City Council. Modifications to the budget that are a realignment of fiscal activities with
no impact to the fund's bottom line may be approved by the City Manager. Significant changes from the
City’s original budget to the final budget are summarized as follows:
Revenues and Transfers In
The General Fund adopted and final revenue budget was $22,296,576 as shown in the schedule below:
Adopted to Final Budget
Fiscal Year Ended June 30, 2019
General Fund Revenues and Transfers In
+=
Adopted Budget Final
Budget Adjustments Budget
Revenues 22,296,576$ - 22,296,576$
Transfers in -$ - -$
There were no revenue budget adjustments made in Fiscal Year 2018/19. Actual transfers into the
General Fund in Fiscal Year 2018/19 was $158,391, as a result of the City’s policy to return unused
capital project funds to the General Fund when a project is deemed completed or cancelled.
Expenses and Transfers Out
The final General Fund expense budget was $22,162,956 and final transfers out at $1,765,000, as shown
in the schedule below:
Adopted to Final Budget
Fiscal Year Ended June 30, 2019
General Fund Expenditures & Transfers Out
+=
Adopted Budget Final
Budget Adjustments Budget
Expenses 21,954,691$ 208,265 22,162,956$
Transfers out 1,270,000$ 495,000 1,765,000$
During the fiscal year, adjustments to the expense budget ($208,265) were due to a reallocation of certain
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
32
salary expenses to other funds. Transfers out were increased by $495,000 to fund various additional
capital projects, including the Garden Patio/Bocce Ball Court and Senior Center Entrances Remodel
projects.
The original budgeted amount of $1,270,000 for transfers from the General Fund to the Capital
Improvement Funds were allocated as follows: $832,000 for street, sidewalk, and storm drain repair;
$100,000 for park and trail improvements; $288,000 for City facilities related projects, and $50,000 for
various administrative projects.
CAPITAL ASSETS
The City of Saratoga elected to use the "Modified Approach" as defined by GASB Statement No. 34 for
infrastructure reporting in which eligible infrastructure capital assets are not required to be depreciated if
the following requirements are met:
• The City manages the assets using an asset management system which requires that the City (1)
perform an up-to-date inventory; (2) perform condition assessments and summarize the results using
a measurement scale; and (3) estimate the annual amount to preserve the assets at the established
condition assessment level.
• The City documents that the eligible infrastructure capital assets are being preserved approximately
at or above the established and disclosed condition assessment level.
City policy is to achieve a Pavement Condition Index (PCI) average rating of 70 for all streets, at
minimum. As of June 30, 2019, the City’s overall rating was estimated to be 68 with 59% of streets rated
“Very Good”, 21% rated as “Good”, 11% of streets rated “Poor,” and 9% of streets rated as "Very Poor."
While the City Council continues to review infrastructure investment strategies, the City anticipates that
the 2019 Pavement Management Project, which was not completed as of the date of the report, will bring
the average PCI rating up to the target of 70.
Overall, the City spent $6,389,281 to maintain and preserve eligible infrastructure assets during Fiscal
Year 2018/19. It was estimated in the most recent pavement study that the five-year (2017-2021) cost to
maintain street infrastructure would be $21,700,000. The amount that the City spent is reasonably in-line
with this estimate. For more detailed information on Capital Assets activity, please refer to Note 4 in the
section entitled "Notes to the Basic Financial Statements" and Note 2 in the "Required Supplementary
Section." The latest assessment study was conducted in 2016, and an update is underway for 2019.
As reflected in the following schedule, the City has $124,134,211 invested in a variety of capital assets as
of June 30, 2019. This represents an increase of $1,674,801, or 1.37% from the prior year.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
33
Governmental Activities
2019 2018
Land 15,591,925$ 15,591,925$
Building and structures 15,051,122 15,695,317
Machinery and equipment 1,411,088 1,129,549
Infrastructure 81,760,030 83,067,805
Construction in progress 10,320,046 6,974,814
Total Capital Assets, Net of Depreciation 124,134,211$ 122,459,410$
Capital Assets at Year End
Net of Depreciation
The following reconciliation summarizes the changes in Capital Assets.
Balance Balance
June 30, 2018 Additions Retirements Reclassification June 30, 2019
Land 15,591,925$ -$ -$ -$ 15,591,925$
Building and structures 26,480,195 90,000 - - 26,570,195
Machinery and equipment 3,505,887 558,412 - - 4,064,299
Infrastructure 111,370,019 19,569 - - 111,389,588
Construction in progress 6,974,814 3,639,644 - (294,411) 10,320,047
Depreciation (41,463,430) (2,338,412) - - (43,801,842)
Total Capital Assets,
Net of Depreciation 122,459,410$ 1,969,213$ -$ (294,411)$ 124,134,211$
Changes in Capital Assets
Major capital projects in progress during Fiscal Year 2018/19 included the following expenditures:
• Citywide Signal Upgrades – Phase II - $76,677
• Prospect/Saratoga OBAG Improvements - $2,617,789
• Hakone Gardens Koi Pond Improvements - $180,244
• Saratoga-to-the-Sea Trail - $174,077
• Community Center Stage Renovation - $90,000
Additional information on Capital Assets is included in Note 4 to the financial statements.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
34
DEBT AND OTHER LONG-TERM OBLIGATION ADMINISTRATION
The net change in outstanding obligations for the City of Saratoga is a decrease of $468,154. Total long-
term bonded debt, net of premium decreased by $521,892. Outstanding compensated absences increased
by $53,738.
Governmental Activities
2019 2018
2011 General obligation bond 8,600,000$ 9,100,000$
Net original issue premuim 284,602$ 306,494
Compensated absences 748,861$ 695,123
Total Outstanding long-term obligations 9,633,463$ 10,101,617$
Outstanding Long-Term Obligation at Year End
The current portion of long-term debt ($525,000 for the refunded 2011 General Obligation Bonds for
Fiscal Year 2019/20) and $21,892 of amortized net original premium are classified as a current liability in
the City's Statement of Net Position.
General Obligation Bonds
On July 14, 2011 the City refunded the 2001 General Obligation Bonds and, in their place, issued 2011
General Obligation Bonds for $11,995,000. Interest rates on the bonds range from 2.0% to 4.0%, and the
final payment is due August 1, 2031. Principal of $500,000 and interest of $341,210 were paid during the
fiscal year.
Compensated Absences
Compensated absences are accrued liabilities for vested and unpaid vacation and sick pay. The
compensated absences balance increased during the fiscal year by $53,738 due to a decrease in use of
paid time-off. An estimated current liability of $569,234 is anticipated for the next fiscal year.
Additional information on outstanding obligations can be found in Note 5 to the financial statements.
ECONOMIC FACTORS
The following economic indicators from Fiscal Year 2018/19 were taken into account when developing
the budget for Fiscal Year 2019/20.
• Taxable assessed value of property was $15.3 billion, an increase of 6.52% from the previous fiscal
year.
• The unemployment rate for the City was 2.2% versus 2.8% from the previous year. This aligns with
the County rate of 2.2% and is considerably less that the State rate of 4.2%.
• Per capita income was $85,392, an increase of 3.3% from the previous year.
General Fund revenues available for appropriation in Fiscal Year 2019/20 are $23.1 million, an increase
of $0.8 million over the final June /19 budget amount of $22.3 million. Property taxes, benefiting from
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
35
the rise in assessed valuation, lead this increase. The additional revenues will be used to accomplish the
major initiatives outlined in the letter of transmittal.
General Fund expenses available for appropriation in Fiscal Year 2019/20 are $22.8 million, an increase
of $0.6 million over the final Fiscal Year 2018/19 budget amount of $22.2 million. Increases are
anticipated in salaries and benefits due to cost-of-living adjustments. Increases will also be seen in
contract services related to public safety. The budget will continue to address the City’s standing policy of
reducing long-term liabilities related to pension obligations by maintaining the UAL payment of a total of
$1 million, and building reserves to weather future downturns in the economy.
OUTLOOK
The City maintains a strong financial position. Services have been restored to pre-recessionary levels. The
lessons learned from the “Great Recession” have led to a focus on long-term financial planning that will
help the City through the next economic downturn with hopefully little impact to service levels. In the
meantime, the City will continue to address its liabilities, deferred maintenance on infrastructure and
facilities, and explore ways in which the City can refine Saratoga and make it an even better place for the
people who live, work, and visit the community.
REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide a general overview of the City of Saratoga's finances for all of
Saratoga's residents, taxpayers, customers, investors, and creditors. This financial report seeks to
demonstrate the City's accountability for the money it receives. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to the
Administrative Services Department, 13777 Fruitvale Avenue, Saratoga, California 95070.
36
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37
BASIC FINANCIAL
STATEMENTS
CITY OF SARATOGA
STATEMENT OF NET POSITION
JUNE 30, 2019
38
Primary Government
Governmental
Activities
ASSETS
Current Assets:
Cash and investments 25,989,588$
Restricted cash and investments 2,607,892
Receivables:
Accounts 996,524
Prepaids 5,635
Total Current Assets 29,599,639
Noncurrent Assets:
Capital Assets:
Non-depreciable 78,595,210
Depreciable, net 45,539,001
Total Capital Assets 124,134,211
Total Noncurrent Assets 124,134,211
Total Assets 153,733,850
DEFERRED OUTFLOW OF RESOURCES
Adjustments related to pension liability 3,728,611
Total Deferred Outflow of Resources 3,728,611
LIABILITIES
Current Liabilities:
Accounts payable 2,095,760$
Accrued payroll 192,451
Interest payable 141,473
Deposits payable 2,886,473
Claims payable 53,293
Long-term obligations - due within one year 1,116,126
Total Current Liabilities 6,817,238
Noncurrent Liabilities:
Net pension liabilty 7,236,672
Long-term obligations - due in more than one year 8,517,338
Total Noncurrent Liabilities 15,754,010
Total Liabilities 22,571,248
DEFERRED INFLOW OF RESOURCES
Adjustments related to pension liability 1,085,454
Deferred revenue 12,703
Total Deferred Inflow of Resources 1,098,157
Net Position
Net investment in capital assets 115,249,609
Restricted for:
Environmental funds 163,182
Special assessment funds 1,621,946
Debt service 932,880
Total Restricted 2,718,008
Unrestricted 15,825,440
Total Net Position 133,793,057$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
39
Net (Expense)
Revenue and
Changes in
Program Revenues Net Position
Primary
Operating Capital Government
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Total Activities
Primary Government:
Governmental Activities:
General and intergovt'l services 6,465,250$ 106,711$ -$ -$ 106,711$ (6,358,540)$
Public safety 6,004,406 466,605 94,795 - 561,400 (5,443,006)
Public works 10,271,134 2,375,765 - 3,630,724 6,006,489 (4,264,645)
Community services 1,286,667 736,058 - - 736,058 (550,609)
Community development services 2,198,053 1,814,675 - - 1,814,675 (383,378)
Interest on long-term debt (unall.)334,012 - - - - (334,012)
Total 26,559,522$ 5,499,813$ 94,795$ 3,630,724$ 9,225,333$ (17,334,190)$
General Revenues:
Taxes
Property taxes 15,250,230$
Sales taxes 1,207,471
Local taxes 896,420
Franchise taxes 2,289,964
Motor vehicle-in-lieu 15,089
Total taxes 19,659,174
Intergovernmental 1,222,823
Investment earnings 697,863
Other revenues 205,395
Total General Revenues 21,785,255
Change in Net Position 4,451,065
Net Position - Beginning of Year 129,341,992
Net Position - End of Year 133,793,057$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
GOVERNMENTAL FUNDS – BALANCE SHEET
JUNE 30, 2019
40
Other Total
Capital Governmental Governmental
General Improvement Funds Funds
ASSETS
Cash and investments 18,244,900$ 4,045,177$ -$ 22,290,077$
Restricted cash and investments - - 2,607,892 2,607,892
Receivables:
Accounts 556,553 429,237 4,082 989,872
Prepaid Items 5,635 - - 5,635
Total assets 18,807,088 4,474,414 2,611,974 25,893,476
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 777,036$ 1,201,582$ 57,148$ 2,035,766$
Accrued payroll 140,405 - - 140,405
Deposits payable 2,865,698 20,775 - 2,886,473
Other payable 331,662 - - 331,662
Total liabilities 4,114,801 1,222,357 57,148 5,394,306
DEFERRED INFLOW OF RESOURCES
Unavailable Revenue 12,703 - - 12,703
Total deferred outflow of resources 12,703$ -$ -$ 12,703$
Fund Balances:
Restricted:
Environmental services 163,182 - - 163,182
Special assessment funds - - 1,621,946 1,621,946
Debt service - - 932,880 932,880
Committed:
Capital improvement program - 3,252,057 - 3,252,057
Hillside stability 1,000,000 - - 1,000,000
Assigned:
Future capital & efficiency 2,651,287 - - 2,651,287
Carryforwards 47,647 - - 47,647
Facility replacement 2,700,000 - - 2,700,000
Unassigned:
Working capital 1,000,000 - - 1,000,000
Fiscal stabilization 3,150,000 - - 3,150,000
Compensated absences 249,620 - - 249,620
Development services - - - -
Other unassigned 3,717,848 - - 3,717,848
Total fund balances 14,679,584 3,252,057 2,554,826 20,486,467
Total liabilities and fund balances 18,807,088$ 4,474,414$ 2,611,974$ 25,893,476$
The accompanying notes are an integral part of these financial statements
Major Funds
CITY OF SARATOGA
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
JUNE 30, 2019
41
Total Fund Balances - Total Governmental Funds 20,486,467$
Amounts reported for governmental activities in the statement of net position were
different because:
Capital assets used in governmental activities were not current financial resources. Therefore,
they were not reported in the Governmental Funds Balance Sheet. The capital assets were
adjusted as follows:
Non-depreciable capital assets 78,595,210
Depreciable capital assets, net 44,921,164
Total Capital Assets 123,516,374
Interest payable on long-term debt did not require current financial resources. Therefore,
interest payable was not reported as a liability in Governmental Funds Balance Sheet.(141,473)
Internal service funds are used by management to charge the costs of office stores,
vehicle and equipment maintenance and replacement, information services and replacement,
building maintenance, risk management, and workers compensation. The assets and
liabilities of the internal service funds are included in the governmental activities in
the statement of net position 4,158,667
Deferred outflow of resources are transactions that have already taken place but are not ready
to be recognized on the financial statements as expenses
Changes of Assumptions 825,002
Differences between Expected and Actual Experience 277,658
Differences between Projected and Actual Investment Earnings 35,776
Change in employer's proportion 952,995
Pension Contributions Made Subsequent to Measurement Date 1,637,179
3,728,611
Long-term obligations were not due and payable in the current period. Therefore, they were not
reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted
as follows:
General obligation bonds (8,600,000)
Net Pension Liability (7,236,672)
Compensated absences (748,861)
Net original issue premium (284,602)
Total Long-Term Obligations (16,870,136)
Deferred inflow of resources are transactions that have already taken place but are not ready
to be recognized on the financial statements as revenues
Changes of Assumptions (202,192)
Differences between Expected and Actual Experience (94,485)
Differences between Employer's Contributions and Proportionate Share of Contributions (553,812)
Change in employer's proportion (234,967)
(1,085,456)
Net Position of Governmental Activities 133,793,057$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2019
42
Other Total
Capital Governmental Governmental
General Improvement Funds Funds
REVENUES:
Property taxes 14,166,178$ -$ 308,924$ 14,475,102$
Special assessments - - 1,205,028 1,205,028
Sales taxes 1,207,471 - - 1,207,471
Other local taxes 896,420 - - 896,420
Licenses & permits 1,909,022 451,300 - 2,360,322
Fines & forfeiture 118,293 8,210 - 126,503
Intergovernmental - Federal (11,219) 3,385,956 - 3,374,737
Intergovernmental - State 501,110 1,276,352 - 1,777,462
Intergovernmental - Other 43,166 197,557 - 240,723
Franchise fees 2,289,964 - - 2,289,964
Use of money and property 1,071,748 39,338 36,817 1,147,903
Other revenue 1,923,795 156,983 - 2,080,778
Total revenues 24,115,948 5,515,696 1,550,769 31,182,413
EXPENDITURES:
Current:
General and intergovernmental services 5,204,878 - - 5,204,878
Public safety 6,004,406 - - 6,004,406
Public works 5,972,517 - 562,828 6,535,345
Community services 1,396,746 - - 1,396,746
Community development services 2,309,258 - - 2,309,258
Capital outlay - 7,458,141 - 7,458,141
Debt service:
Principal - - 500,000 500,000
Interest and fiscal charges - - 341,210 341,210
Total expenditures 20,887,805 7,458,141 1,404,038 29,749,984
REVENUES OVER
(UNDER) EXPENDITURES 3,228,143 (1,942,445) 146,731 1,432,429
OTHER FINANCING SOURCES (USES):
Transfers in 158,391 2,127,626 25,000 2,311,017
Transfers out (1,840,867) (470,150) - (2,311,017)
Total other financing sources (uses)(1,682,476) 1,657,476 25,000 -
Net change in fund balances 1,545,667 (284,969) 171,731 1,432,429
FUND BALANCES:
Beginning of year 13,133,917 3,537,026 2,383,095 19,054,038
End of year 14,679,584$ 3,252,057$ 2,554,826 20,486,467$
The accompanying notes are an integral part of these financial statements.
Major Funds
CITY OF SARATOGA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES AND CHANGES IN NET
POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
43
Net Change in Fund Balances - Total Governmental Funds 1,432,429$
Amounts reported for governmental activities in the Statement of Activities and Changes
in Net Position were different because:
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide
Statement of Activities and Changes in Net Position, the cost of those assets was allocated over
their estimated useful lives as depreciation expense. This is the amount of capital assets
recorded in the current period.3,639,646
Depreciation expense on capital assets was reported in the Government-Wide Statement
of Activities and Changes in Net Position, but it did not require the use of current financial
resources. Therefore, depreciation expense was not reported as expenditures in the
Governmental Funds.(2,171,515)
Internal service funds are used by management to charge the costs of office stores,
vehicle and equipment maintenance and replacement, information services and replacement,
building maintenance, risk management, and workers' compensation. The net revenue
or excess expenses of the internal service funds is reported with government activities.300,383
GASB 68 Adjustments to pension expense
Change in net pension liability - current year 320,076
Amortization of changes in deferred outflows 17,232
Amortization of changes in deferred inflows 437,461
Adjustments to pension expense as a result of GASB 68 774,769
Long-term compensated absences and claims payables were reported in the Government-Wide
Statement of Activities and Changes in Net Position, but they did not require the use of current
financial resources. Therefore, long-term compensated absences and claims payable were not
reported as expenditures in governmental funds.
Compensated absences (53,738)
Repayment of bond principal was an expenditure in governmental funds, but the repayment
reduced long-term liabilities in the Government-Wide Statement of Net Position.
Long-term debt repayments 500,000
Revenues resulting from the refunding of outstanding debt are not available to pay
current-period expenditures and therefore, are revenue in the funds.
Net original issue premium 21,892
Interest expense on long-term debt was reported in the Government-Wide Statement of
Activities and Changes in Net Position, but it did not require the use of current financial
resources. Therefore, interest expense was not reported as expenditures in governmental
funds. The following amount represented the change in accrued interest from prior year.7,198
Change in Net Position of Governmental Activities 4,451,065$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2019
44
Governmental
Activities -
Internal
Service Funds
ASSETS
Current assets:
Cash and investments 3,699,511$
Accounts receivable 6,652
Total current assets 3,706,163
Noncurrent assets:
Capital assets:
Machinery and equipment 1,795,011
Less: accumulated depreciation (1,177,174)
Total capital assets (net of
accumulated depreciation) 617,837
Total assets 4,324,000
LIABILITIES
Liabilities:
Current liabilities:
Accounts payable 59,994
Accrued payroll 52,046
Other payables 53,293
Total current liabilities 165,333
NET POSITION
Net investment in capital assets 617,837
Unrestricted 3,540,830
Total net position 4,158,667$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
45
Governmental
Activities -
Internal
Service Funds
Operating revenues:
Charges for services 2,840,000$
Other operating revenues 73,170
Total operating revenues 2,913,170
Operating expenses:
Cost of services 2,445,889
Depreciation 166,898
Total operating expenses 2,612,787
Operating income (loss)300,383
Change in net position 300,383
Total net position - beginning 3,858,284
Total net position - ending 4,158,667$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
46
Governmental
Activities -
Internal
Service Funds
Cash flows from operating activities:
Receipts from customers and users 2,913,969$
Payments to suppliers (1,518,596)
Payments to employees (950,954)
Net cash provided (used) by operating activities 444,419
Cash flows from capital activities:
Acquisition of capital assets (373,570)
Net cash provided for the acquisition of capital assets (373,570)
Net increase in cash and cash equivalents 70,849
Cash and cash equivalents, beginning of year 3,628,662
Cash and cash equivalents, ending of year 3,699,511
Reconciliation of operating income to net cash provided
by operating activities:
Operating income (loss)300,383
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 166,898
Change in operating assets and liabilities:
Accounts receivables 798
Accounts payable (19,668)
Claims payable (22,708)
Accrued payroll 18,716
Net cash provided (used) by operating activities 444,419$
The accompanying notes are an integral part of these financial statements
CITY OF SARATOGA
BALANCE SHEET
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
47
Total
Agency
Funds
ASSETS
Cash and investments 1,262,400$
Total assets 1,262,400
LIABILITIES
Accounts payable 57,618
Deposits payable 14,888
Due for debt service 280,736
Due to other agencies 909,158
1,262,400$
The accompanying notes are an integral part of these financial statements.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
48
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Saratoga, California (the City) have been prepared in
conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.
The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for
establishing governmental accounting and financial reporting principles. The more significant of the
City's accounting policies are described below.
A. Financial Reporting Entity
The City was incorporated as a municipal corporation in 1956 under the general laws of the State of
California. The City is a largely residential community located in the foothills of the Santa Cruz
Mountains with a population of 31,407 as of January 1, 2019.
The City operates under the Council-Manager form of government, with five-elected Council members
served by a full-time City Manager and staff. At June 30, 2019, the City's staff was comprised of 58 full-
time or part-time employees, and numerous part-time temporary and seasonal employees. Staff is
responsible for the following City services:
• Public Safety - The City provides around-the-clock police services under a contract with the Santa
Clara County Sheriff's offices. Emergency management and Fire services are provided by a special
district. Code enforcement and inspection services are provided by City employee s.
• Public Works/Maintenance - The City builds and maintains its parks, streets, curbs, gutters, and
related public property with a force of 22 employees. Major projects may be contracted out to
reduce costs.
• Community Development - Zoning administration, plan checking and advance planning services are
provided by 12 employees.
• Culture, Recreation and Community Support services are provided by a total of 9 employees.
• General Government services are provided by a total of 15 employees.
As required by GAAP, these basic financial statements present the City and its component units, entities
for which the City is considered to be financially accountable. The City Council acts as the governing
board. In addition, the City staff performs all administrative and accounting functions for these entities
and these entities provide their services entirely to the City. Blended component units, although legally
separate entities, are, in substance, part of the City's operations and data from these units are combined
with data of the City. Discretely presented component units, on the other hand, are reported in a separate
column in the government-wide financial statements to emphasize their legal separation from the City.
Each blended component unit has a June 30 year-end. The City has no discretely presented component
units.
The following entity is reported as blended component unit:
Landscape & Lighting District - The Landscape & Lighting District (the District) was established in 1980
for the levy and the collection of assessments upon lots or parcels of land in the District, and for the
construction or installation of improvements and maintenance. The District is reported as a blended
component unit of the City because it has the same Governing Board as the City. The activity for the
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
49
District has been included in the accompanying basic financial statements and no separate financial
statements are issued.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that are comprised of assets, liabilities, fund equity, revenues, and expenditures or expenses, as
appropriate. Governmental resources are allocated to and accounted for in individual funds based upon
the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of
Activities and Changes in Net Position. These statements present summaries of governmental activities
for the City. Fiduciary activities of the City are not included in these statements.
These statements are presented on an "economic resources" measurement focus and the accrual basis of
accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as
infrastructure assets, long-term liabilities, and deferred inflows and outflows of resources are included in
the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.
Under the accrual basis of accounting, revenues are recognized in the period in which they are earned
while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to inter-fund
activities, payables, and receivables. All internal balances in the Statement of Net Position have been
eliminated. The following inter-fund activities have been eliminated:
• Transfers in/Transfers out
• Internal Service Fund charges
• Landscape and Lighting District Service Fees
Deferred Outflow of Resources and Deferred Inflow of Resources
Deferred outflow of resources is a consumption of net position by the City that is applicable to a future
reporting period, such as deferred charges.
Deferred inflow of resources is an acquisition of net position by the City that is applicable to a future
reporting period, such as unavailable revenue and advance collections.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
50
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and aggregated non-major
funds. An accompanying schedule is presented to reconcile and explain the differences in net position as
presented in these statements to the net position presented in the government -wide financial statements.
The City has presented all major funds that met the applicable criteria. The following funds are major
funds:
General Fund
The General Fund is used to account for all of the general resources of the City not specifically levied or
collected for other City funds and related expenditures. The General Fund accounts for all financial
resources of the City which are not accounted for in another fund.
Capital Improvement Capital Projects Fund
This fund accounts for resources used for the major capital acquisition and construction activities.
All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows
of resources, current liabilities and deferred inflows of resources are included on the balance sheets. The
Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and
other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in
which they become both measurable and available to finance expenditures of the current period.
Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to
45 days after year-end) are recognized when due. The primary revenue sources, which have been treated
as susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental
revenues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures,
licenses and permits and parking meter revenues are not susceptible to accrual because they are usually
not measurable until received in cash. Expenditures are recorded in the accounting period in which the
related fund liability is incurred.
Unearned revenues arise when potential revenues do not meet both the "measurable" and "available"
criteria for recognition in the current period. Unearned revenues also arise when the government receives
resources before it has a legal claim to them, as when grant monies are received prior to incurring
qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when
the government has a legal claim to the resources, the unearned revenue is removed from the combined
balance sheet and revenue is recognized.
Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is
provided to explain the differences created by the integrated approach of GASB Statement No. 34.
Proprietary Funds
The City’s Internal Service Funds are proprietary funds. In the fund financial statements, proprietary
funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned,
and expenses are recognized when the related goods or services are delivered. In the fund financial
statements, proprietary funds are presented using the “economic resources measurement focus”. This
means all assets and liabilities (whether current or noncurrent) associated with their activities are included
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
51
on their balance sheets. Proprietary fund type operating statements present increases (revenues) and
decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and
investment earnings result from non-exchange transactions or ancillary activities. Amounts paid to
acquire capital assets are capitalized as assets in the internal service funds financial statements.
Internal Service Funds account for charges to City departments for services provided, on a cost
reimbursement basis, in the following areas: general liability, workers’ compensation, office support,
information technology services, vehicle maintenance, building maintenance, equipment replacement, and
information technology replacement.
Fiduciary Fund Financial Statements
Fiduciary Funds Financial Statements include a Statement of Net Position and a Statement of Changes in
Net Position for Trust Funds. The City's fiduciary funds include Agency Funds, which are custodial in
nature (assets equal liabilities) and do not involve measurement of results of operations. The Agency
Funds are accounted for on the accrual basis of accounting. Beginning in FY 2018/19, the City is
reporting the following Agency Funds:
West Valley Clean Water Program. The Cities of Campbell, Monte Sereno, Saratoga and the Town of Los
Gatos, representing the West Valley Communities, joined together to create West Valley Clean Water
Program (WVCWP) in 1994. Together they work to control discharge of polluted stormwater into local
creeks and the San Francisco Bay. Their mission is to:
• Reduce pollutants in stormwater and discharges from storm drains into creeks
• Maximize the effectiveness of pollution prevention efforts and work toward repair of impaired waters
• Help the four West Valley Communities meet State Water Resources Control Board & Federal Clean
Water Act goals for clean and healthy local water bodies
In late 2017, after notification from West Valley Sanitation District that the District would no longer be
involved in or provide fiscal agent services for WVCWP after June 30, 2018, the four agencies decided to
establish the operation as a legal entity by entering into a Joint Powers Agreement, consistent with what
the agencies had already set up for the West Valley Solid Waste Management oversight activities. With
this action, the West Valley Clean Water Program is now overseen by the same Board that includes
Council representation from each of the four municipalities. The Clean Water Program’s dedicated
program staff and contractors carry out the day-to-day operations. The JPA also collaborates with Santa
Clara Valley Urban Runoff Pollution Prevention Program, West Valley Sanitation District, and the Santa
Clara County Fire District in their operational activities.
With the loss of West Valley Sanitation functioning as the fiscal agent for the group, the four cities
determined one of the cities would take on this role. Effective July 1, 2018, the City of Saratoga began
performing these duties, which are limited to payroll and vendor payment functions, in addition to
financial reporting. The City does not oversee operational aspects of the WVCWP and is acting only in a
fiduciary function
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
52
Arrowhead Bond and Project Funding. The Arrowhead Community Facilities District encompasses 39
homes located along the hillside between Rolling Hills Road and Blue Hills Lane, off of Prospect Road.
Since 1951, this neighborhood has operated its own private water company (Arrowhead Cooperative
Company Inc., aka ACCI). Over the years the number of Arrowhead Cooperative residents and water
service meters have increased, to the extent that the water system infrastructure is no longer sufficient for
water and fire protection needs. The potential of the fire danger situation prompted the Arrowhead Board
to ask the City for assistance to issue a bond for the purpose of financing improvements to the water
system. Subsequently, on December 21, 2016, the City Council approved the formation of the Arrowhead
Community Facility District (CFD). On May 2, 2017, the CFD’s 39 residential parcel owners
unanimously approved Measure L, which allowed for the assessment of a special tax levy to finance a
bond.
On October 17, 2018, the City Council authorized the issuance of the Saratoga Community Facilities
District 2016-1 (Arrowhead Project) Special Tax Bonds, Series 2018, with the issue date of December 10,
2018. Debt service on the Special Tax Bond is payable only from special taxes levied annually on taxable
properties within the CFD in the manner set forth in the Rate and Method of Apportionment (RMA)
approved by the Council in connection with the formation of the District. The 2018 Bonds will not have
any impact on the City’s General Fund or Government-wide financial statements, and these special
financing district bonds are not assets or liabilities of the City for financial statement purposes.
C. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturity of
three months or less from the date of acquisition. Cash and cash equivalents are combined with
investments and displayed as Cash and Investments.
Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and
Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if
applicable, for Deposits and Investment Risks in the following areas:
• Interest Rate Risk
• Credit Risk
▬ Overall
▬ Custodial Credit Risk
▬ Concentrations of Credit Risk
• Foreign Currency Risk
Other disclosures are specified including use of certain methods to present deposits and investments,
highly sensitive investments, credit quality at year-end and other disclosures.
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.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
53
D. Inter-fund Transactions
Inter -fund services provided and used are accounted for as revenue, expenditures or expenses, as
appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially
made from it that are properly applicable to another fund are recorded as expenditures/expenses in the
reimbursed fund. All other inter-fund transfers are reported as transfers.
E. Capital Assets
Capital assets, including land, buildings, improvements, furniture, equipment and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental activities
in the government-wide financial statements. Capital assets were recorded at historical cost or estimated
historical cost if actual cost was not available. Donated capital assets, donated works of art and similar
items, and capital assets received in service concession agreement are reported at acquisition value. City
policy has set the capitalization threshold for reporting capital assets at $10,000. The City has chosen the
Modified Approach for reporting the streets subsystem of infrastructure capital assets.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings and structures 40 Years
Machinery and equipment 5 to 10 Years
Infrastructure 15 to 50 Years
In June 1999, GASB issued Statement No. 34 Basic Financial Statements – and Management’s
Discussion and Analysis – for State and Local Governments which requires the inclusion of infrastructure
capital assets in local governments' basic financial statements. In accordance with Statement No. 34, the
City has included the value of all infrastructure assets in its basic financial statements.
The City defines infrastructure as the basic physical assets that allow the City to function, which includes
the street system, park and recreation lands and improvements system; storm water conveyance and
drainage system, buildings combined with site amenities such as parking and landscaping areas used by
the City in the conduct of its business.
Each major infrastructure system can be divided into subsystems. For example, the street system can be
subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices
(signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in
the basic financial statements. The appropriate operating department maintains information regarding the
subsystems. The City elected to use the Modified Approach as defined by GASB Statement No. 34 for
infrastructure reporting of its streets, concrete and asphalt pavements. The City commissioned a physical
assessment of the streets condition as of June 30, 2016. This condition assessment was performed in
2017. A Pavement Condition Index (PCI) was assigned to each street segment. The index is expressed in
a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is
assigned to segments of street that have the physical characteristics of a new street.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
54
The following conditions were defined:
Condition Rating
Excellent 80 - 100
Very Good 70 - 79
Good 50 - 69
Poor 25 - 49
Very Poor 0 - 24
The City's policy relative to maintaining the street assets is to achieve an average rating of 70 for all street
segments. This acceptable rating allows minor cracking and raveling of the pavement along with minor
roughness that could be noticeable to drivers traveling at the posted speeds. For all other infrastructure
systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for
infrastructure reporting. An appraisal determined the original cost, which is defined as the actual cost to
acquire new property in accordance with market prices at the time of first construction/acquisition.
Original costs were developed in one of three ways: 1) historical records; 2) standard unit costs
appropriate for the construction/acquisition date; or 3) present cost indexed by a reciprocal factor of the
price increase from the construction/acquisition date to the current date. The accumulated depreciation,
defined as the total depreciation from the date of construction/acquisition to the current date on a straight
line, unrecovered cost method was computed using industry accepted life expectancies for each
infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation
from the original cost.
F. Interest Payable
In the government-wide financial statements, interest payable of long-term debt is recognized as an
incurred liability for governmental fund types. The City has not allocated the interest on long-term debt
to departments.
In the fund financial statements, governmental fund types do not recognize the interest payable when the
liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.
G. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general
liability claims (including property damage claims) and workers' compensation claims. The estimated
liability for workers' compensation claims and general liability claims includes "incurred but not
reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities.
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NOTES TO FINANCIAL STATEMENTS
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H. Compensated Absences
In the government-wide financial statements, compensated absences are recorded as incurred and the
related expenses and liabilities are reported.
In the fund financial statements, compensated absences are recorded as expenditures in the years paid, as
it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources,
rather than currently available financial resources. Only the amounts which become due at June 30 are
reported in the fund financial statements as a liability.
I. Long- Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported
as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance
costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds
payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financial sources. Premiums received on debt issuance are reported as other financing sources while
discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from
the actual debt proceeds received, are reported as debt service expenditures.
J. Fund Balances
In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54,
Fund Balance Reporting and Governmental Fund Type Definitions. This standard left unchanged the
total amount reported as fund balance, but substantially altered the categories and terminology used to
describe its components. Rather than focus on financial resources available for appropriation, the new
categories focus on “the extent for which the government is bound to honor constraints in the specific
purposes for which amounts in the reserve can be spent”.
The components of fund balance are now categorized as follows: “non-spendable fund balance”,
resources that are inherently non-spendable from the vantage point of the current period; “restricted fund
balance”, resources that are subject to enforceable legal restrictions; “committed fund balance”, resources
whose specified use is constrained by limitations the government entity imposes upon itself through
formal action at its highest level of decision making and remains binding unless removed in the same
manner; “assigned fund balance”, resources that reflects a government’s intended general use of
resources, such intent would have to be established at either the highest level of decision making, by a
body, or an official designated for that purpose; and “unassigned fund balance”, net resources in excess of
what can properly be classified in one of the other four categories. Currently, the City’s fund balance
reserves fall into one of the four spendable categories; restricted, committed, assigned, or unassigned fund
balance.
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NOTES TO FINANCIAL STATEMENTS
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The City maintains three restricted fund balances constrained by external legal restrictions that can be
spent only for the stipulated purposes. Restrictions may effectively be changed or lifted only with the
consent of resource providers. These fund balances are:
• Special Assessments Fund Balance – collectively represents year-end fund balances of thirty
Landscape & Lighting and Storm Drain zones which use is restricted to the individual district.
• Environmental Services Fund Balance – represents surcharges collected on solid waste bills for
use as supplemental funding of Environmental Services program fees for household hazardous
waste fees, storm drain, street sweeping, and other pollution mitigation expenses related to
integrated waste programs and storm water management. These funds are used to supplement
environmental expenditures by using $50,000 per year.
• Debt Service Fund Balance – represents funding collected for use in the City’s general obligation
bond debt.
The committed category, in which fund balance is constrained by limitations that the government imposes
upon itself at its highest level of decision making by formal vote on a resolution of the City Council, and
remains binding unless removed in the same manner, includes the following:
• Capital Improvement Program (CIP) Fund Balance – represents the collective balance of funding
appropriated for capital improvement projects. Capital Projects are funded through direct
revenues or budgeted transfers for improvement work within the following program funds:
Streets, Park & Trail, Facility, or Administrative & Technology Improvements.
• Hillside Stability - funding set aside for use either in emergency repairs or high-cost and non-
routine mitigation of hillside or landslide projects.
In the assigned category, fund balance reflects an intended use as established by Council that is neither
restricted nor committed. Use of Assigned Fund Balance is approved by formal vote of the Council or
official authorized to assign amounts to a specific purpose, either through specific action, fund balance
policy, or through budget direction and approval. This category includes the following reserves:
• Future Capital & Efficiency Funding - represents General Fund funding set aside for capital
and/or efficiency projects but not yet committed for a specific improvement project.
• Facility Replacement Reserve – represents accumulated funding for the future replacement, major
rehabilitation, or new construction of City-owned facilities. This funding is to be used for
funding the construction or provide for the services of related debt, but is not yet committed for a
specific improvement project.
• Carryforward – represents either prior-year funds designated for one-time operational activities
not yet completed by year-end, or to carryforward prior-year funding for specific activities as
directed by Council. Carryforward funds are appropriated for use in the following fiscal year.
The Unassigned Fund Balance category represents funding which may be held for specific types of uses
or stabilization purposes, but is not yet directed to be used for a specific purpose. Reserve amounts are
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determined by, and align with, fund policy direction. The General Fund is the only governmental fund
that reports a positive unassigned fund balance.
• Working Capital Reserve – Council policy is to maintain $1,000,000 to meet cash flow
requirements. As of June 30, 2019, the Working Capital Reserve balance is $1,000,000.
• Fiscal Stabilization Reserve – Council designates and annually revisits the level of undesignated
funding for use at Council direction in case of disasters, emergencies, and economic downturns.
As of June 30, 2019, the Fiscal Stabilization Reserve balance is $3,150,000.
• Compensated Absences Reserve – represents reserve funding for employee payout compensation
equal to one-third of the annual liability balance. This funding level is anticipated to be the
maximum potential payout in excess of budgeted salary in a fiscal year.
• Other Unassigned Fund Balance – represents funding not yet appropriated or assigned for use.
Council policy is to maintain a minimum of $500,000 in unassigned funds as a buffer for
unplanned expenditures or revenue shortfalls during the fiscal year.
Flow Assumption / Spending Order Policy – When expenditures are incurred for purposes for which both
restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first.
When expenditures are incurred for which committed, assigned, or unassigned fund balances are
available, the City considers amounts to be spent first out of committed funds, then assigned funds, and
finally unassigned funds, as needed, unless the City Council has directed otherwise.
K. Net Position
In the government-wide financial statements, net position is classified in the following categories:
• Net Investment in Capital Assets – This amount consists of capital assets net of accumulated
depreciation and reduced by outstanding debt that attributed to the acquisition, construction,
or improvement of the assets. In addition, deferred outflows of resources and deferred inflows
of resources that are attributable to the acquisition, construction, or improvement of those
assets or related debt also are included in the net investment in capital assets component of
net position.
• Restricted Net Position – This amount is restricted by external creditors, grantors,
contributors, or laws or regulations of other governments.
• Unrestricted Net Position – This amount is all net position that does not meet the definition of
"invested in capital assets, net of related debt" or "restricted net position."
L. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net positions are
available, the City's policy is to apply restricted net position first.
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M. Property Tax and Special Assessments
County tax assessments include secured and unsecured property taxes and special assessments.
"Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the
property being taxed.
Revenue is recognized in the period for which the tax and assessment is levied. The County of Santa
Clara levies, bills and collects property taxes for the City, the County remits the entire amount levied and
handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are
levied on January 1.
Secured property tax is due in two installments on November 1 and February 1, and becomes a lien on
those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is
due on July 1 and becomes delinquent on August 31.
N. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
O. New GASB Pronouncements
A. Implemented New Accounting Pronouncements
Statement No. 83, Certain Asset Retirement Obligations
This Statement addresses accounting and financial reporting for certain asset retirement obligations
(AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital
asset. A government that has legal obligations to perform future asset retirement activities related to
its tangible capital assets should recognize a liability based on the guidance in this Statement. As of
June 30, 2019, this Statement did not have an impact on the City of Saratoga’s financial statements.
GASB Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and
Direct Placements
This Statement addresses additional information to be disclosed in the notes to the financial
statements regarding debt, including unused lines of credit; assets pledged as collateral for the debt;
and terms specified in debt agreements related to significant events of default with finance-related
consequences, significant termination events with finance-related consequences, and significant
subjective acceleration clauses. As of June 30, 2019, this Statement did not have a significant impact
on the City of Saratoga’s financial statements.
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NOTES TO FINANCIAL STATEMENTS
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B. Upcoming Accounting and Reporting Changes
GASB Statement No. 84, Fiduciary Activities
The objective of this Statement is to improve guidance regarding the identification of fiduciary
activities for accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local
governments. The focus of the criteria generally is on (1) whether a government is controlling the
assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists.
Separate criteria are included to identify fiduciary component units and postemployment benefit
arrangements that are fiduciary activities. The requirements of this Statement are effective for
financial statements for periods beginning after December 15, 2018. Earlier application is
encouraged. The City of Saratoga is in the process of determining the impact this Statement will have
on future financial statements.
GASB issued Statement No. 87, Leases
The objective of this statement is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. This statement increases the
usefulness of governments’ financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. It establishes a
single model for lease accounting based on the foundational principle that leases are financings of the
right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability
and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a
deferred inflow of resources, thereby enhancing the relevance and consistency of information about
governments’ leasing activities. The requirements of this Statement are effective for financial
statements for periods beginning after December 15, 2019. Earlier application is encouraged. The
City of Saratoga does not believe that this statement will have a significant impact on the City’s
financial statements.
GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of the
Construction Period
This Statement addresses interest costs incurred before the end of a construction period be recognized
as an expense in the period in which the cost is incurred for financial statements prepared using the
economic resources measurement focus. As a result, interest cost incurred before the end of a
construction period will not be included in the historical cost of a capital asset reported in a business-
type activity or enterprise fund. The requirements of this Statement are effective for financial
statements for periods beginning after December 15, 2019. Earlier application is encouraged. The
City of Saratoga does not believe that this statement will have a significant impact on the City’s
financial statements.
GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statements No. 14
and No. 61
The objectives of this Statement are to improve the consistency and comparability of reporting a
government’s majority equity interest in a legally separate organization and to improve the relevance
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
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of financial statement information for certain component units. This Statement also requires that a
component unit in which a government has 100 percent equity interest account for its assets, deferred
outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the
government acquired a 100 percent equity interest in the component unit. The requirements of this
Statement are effective for financial statements for periods beginning after December 15, 2018. The
requirements should be applied retroactively, except for the provisions related to (1) reporting a
majority equity interest in a component unit and (2) reporting a component unit if the government
acquires a 100 percent equity interest. Those provisions should be applied on a prospective basis. The
City of Saratoga does not believe that this statement will have a significant impact on the City’s
financial statements.
GASB Statement No. 91, Conduit Debt Obligations
The objectives of this Statement are to provide a single method of reporting conduit debt obligations
by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers,
(2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This
Statement also clarifies the existing definition of a conduit debt obligation; establishing that a conduit
debt obligation is not a liability of the issuer; establishing standards for accounting and financial
reporting of additional commitment and voluntary commitments extended by issuers and
arrangements associated with the debt obligations; and improving required note disclosures. The
requirements of this Statement are effective for financial statements for periods beginning after
December 15, 2020. Earlier application is encouraged. The City of Saratoga does not anticipate this
Statement will have a significant impact on the City’s financial statements.
P. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of the City of
Saratoga’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions
to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are
reported by CalPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
NOTE 2 - CASH AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments
of all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is
allocated to the funds based on average month-end cash and investment balances in these funds. The City
has the following cash and investments at June 30, 2019:
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
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Primary Fiduciary
Government Activities Total
Cash and investments 28,597,480$ 764,561$ 29,362,041$
Cash and investments with Fiscal Agent - 497,839 497,839
Total Deposits and Investments 28,597,480 1,262,400 29,859,880
The City's Cash and Investments at June 30, 2019, in more detail:
Cash and cash equivalents:
Petty cash 1,300$
Demand deposits 1,035,423
With Fiscal Agent 497,838
Total Cash and Cash Equivalents 1,534,561
Investments:
Local Agency Investment Fund (LAIF)28,325,319
Total Cash and Investments 29,859,880$
A. Cash Deposits
The carrying amounts of the City's cash deposits were $1,035,423 at June 30, 2019. Bank balances before
reconciling items were $1,084,237 at that date due to deposits in transit and outstanding checks. The total
amount was collateralized or insured with securities held by the pledging financial institutions. The fiscal
agent deposits are related to the Arrowhead bond and funding activities and are held with BNY Mellon.
The California Government Code requires California banks and savings and loan associations to secure
the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in
this manner shall have the effect of perfecting a security interest, and places the City ahead of general
creditors of the institution.
The market value of pledged securities must equal at least 110 percent of the City's cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes
that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral
requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance
Corporation (FDIC). Other accounts are insured up to $250,000 per custodian within agency.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be
held by fiscal agents under the provisions of bond indentures. Interest income from cash and investments
with fiscal agents is credited directly to the related fund.
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NOTES TO FINANCIAL STATEMENTS
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B. Investments
Under the provisions of the City's investment policy, and in accordance with California Government
Code, the following investments are authorized:
• Securities of the U.S. Government or its agencies.
• Certificates of Deposit (or Time Deposits) placed with commercial banks and/or savings
and loan companies.
• Negotiable Certificates of Deposit.
• California Local Agency Investment Fund.
• Investment-grade obligations of State, local governments or public authorities.
• Money market mutual funds.
• Passbook savings account and demand deposits.
In vestments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value
Measurement and Application. Accordingly, the change in fair value of investments is recognized as an
increase or decrease to investment assets and investment income. This statement changed the definition of
fair value and is effective for periods beginning after June 15, 2015.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction. In determining this amount, three valuation techniques are available:
• Market approach - This approach uses prices generated for identical or similar assets or liabilities.
The most common example is an investment in a public security traded in an active exchange
such as the NYSE.
• Cost approach - This technique determines the amount required to replace the current asset. This
approach may be ideal for valuing donations of capital assets or historical treasures.
• Income approach - This approach converts future amounts (such as cash flows) into a current
discounted amount.
Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been
maximized in fair value measures, and unobservable inputs have been minimized.
GASB 72 established a hierarchy of inputs to the valuation techniques above. This hierarchy has three
levels:
• Level 1 inputs are quoted prices in active markets for identical assets or liabilities.
• Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for
identical or similar assets or liabilities in markets that are not active, or other than quoted prices
that are not observable.
• Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.
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NOTES TO FINANCIAL STATEMENTS
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C. External Investment Pool
The City's investments with LAIF at June 30, 2019 include a portion of the pool funds invested in
Structured Notes and Asset-Backed Securities. These investments include the following:
• Structured Notes - debt securities (other than asset-backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and/or that have embedded forwards or options.
• Asset-Backed Securities - the bulk of which are mortgage-backed securities, entitle their
purchasers to receive a share of the cash flows from a pool of assets such as principal and interest
repayments from a pool of mortgages (such as CMO's) or credit card receivables.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in
accordance with State statute. The approved investments policy is listed on the LAIF website, located at
http://www.treasurer.ca.gov/pmia-laif/ .
As of June 30, 2019, the City had $28,325,319 invested in LAIF. In accordance with GASB 72, a fair
value factor of 1.001711790 was used to calculate the fair value of the investments in LAIF. GASB
Statement No. 72, Fair Measure Value and Application requires investments held primarily for the
purpose of income or profit and has a present service capacity based solely on its ability to generate cash
or to be sold to generate cash to be measured at their fair value.
D. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to
changes in market interest rates. Although the City’s investment policy allows for a broad range of
investment instruments with varying terms of maturity, investments are limited to the Local Agency
Investment Fund (LAIF) which is managed by the State Treasurer Office and overseen by the Pooled
Money Investment Board, the State Treasurer investment committee, and a Local Agency Advisory
Board.
Included in LAIF’s investment portfolio are U.S. Treasuries, Federal Agency obligations, time deposits,
negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. Funds are
available for withdrawal on demand and are recorded on an amortized cost basis. At June 30, 2019, these
investments had a weighted average maturity of 194 days. The City had the following invested in LAIF:
Investment
Maturities in Years
Fair Less Than
Value One Year
State of California - Local Agency Investment Fund (LAIF)28,325,319$ 28,325,319$
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
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Credit Risk
As of June 30, 2019, the City's investments in external investment pools are unrated. The City only
invests in LAIF, therefore has no other policy relating to the credit risk of investments.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City did not hold any securities through investment counterparties at
the year ended June 30, 2019.
NOTE 3 - FUND FINANCIAL STATEMENTS INTERFUND TRANSACTIONS
Transfers In/Out
Transfers for the year ended June 30, 2019 were as follows:
Transfer in Transfer out Amount
Capital Improvement Fund General Fund 1,840,866$
Capital Improvement Fund Landscape & Lighting District
Special Revenue Fund 25,000
Capital Improvement Fund Capital Improvement Fund 286,760
General Fund Capital Improvement Fund 158,391
470,151
Total 2,311,017$
The Capital Improvement Funds received monies from the General Fund adopted in the Budget in the
amount of $1,840,866. Of this amount, $1,037,866 was allocated for street, sidewalk, and storm drain
repair, $100,000 for park and trail improvements, $653,000 for City facilities projects and $50,000 for
various administrative projects. $286,760 was transferred between CIP projects and $158,391 was
transferred to the General Fund from closed CIP projects during the fiscal year. $25,000 was transferred
from the Landscape & Lighting District to fund a project in the Capital Improvement Fund.
NOTE 4 - CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2019 is illustrated in the following table:
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Primary Government
Balance Balance
July 1, 2018 Additions Retirements Reclassifications June 30, 2019
Governmental activities:
Capital assets, not being depreciated:
Land and land improvements 15,591,925$ -$ -$ -$ 15,591,925$
Construction in progress 6,974,814 3,639,644 - (294,411) 10,320,046
Infrastructure:
Street pavement system 52,663,670 19,569 - - 52,683,239
Total capital assets, not being depreciated 75,230,409 3,659,213 - (294,411) 78,595,210
Capital assets, being depreciated:
Buildings and structures 26,480,195 90,000 - - 26,570,195
Machinery and equipment
Governmental funds 2,084,447 184,842 - - 2,269,290
Internal service funds 1,421,441 373,570 - - 1,795,011
Infrastructure:
Bridges 1,563,654 - - - 1,563,654
Signs and lights 2,463,676 - - - 2,463,676
Drainage system 40,140,053 - - - 40,140,053
Sidewalks 14,538,964 - - - 14,538,964
Total capital assets, being depreciated 88,692,431 648,412 - - 89,340,844
Accumulated depreciation:
Buildings and structures (10,784,879) (734,194) - - (11,519,073)
Machinery and equipment
Governmental funds (1,366,063) (109,976) - - (1,476,039)
Internal service funds (1,010,276) (166,898) - - (1,177,174)
Infrastructure:
Bridges (1,159,643) (19,136) - - (1,178,779)
Signs and lights (1,321,592) (88,736) - - (1,410,328)
Drainage system (18,741,776) (802,801) - - (19,544,577)
Sidewalks (7,079,201) (416,671) - - (7,495,872)
Total accumulated depreciation (41,463,430) (2,338,412) - - (43,801,843)
Total capital assets, being depreciated, net 47,229,001 (1,690,000) - - 45,539,001
Governmental activities capital assets, net 122,459,410$ 1,969,213$ -$ (294,411)$ 124,134,211
In accordance with GASB Statement No. 34, the City has reported all capital assets including
infrastructure in the Government-Wide Statement of Net Position. The City elected to use the "Modified
Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its pavement system.
As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A
more detailed discussion of the "Modified Approach" is presented in the Required Supplementary
Information section of this report. All other capital assets including other infrastructure systems were
reported using the Basic Approach whereby accumulated depreciation and depreciation expense have
been recorded.
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NOTE 5 – LONG-TERM OBLIGATIONS
A summary of the City's governmental long-term obligations for the year ended June 30, 2019, is
presented below:
Classification
Balance Balance Due Within Due In More
Description June 30, 2018 Additions Retirements June 30, 2019 One Year Than One Year
Government Activities:
General Obligation Bonds:
2011 Library bonds 9,100,000$ -$ (500,000)$ 8,600,000$ 525,000$ 8,075,000$
Net original issue premium 306,494 - (21,892) 284,602 21,892 262,710
Compensated absences 695,123 53,738 - 748,861 569,234 179,627
Total 10,101,617$ 53,738$ (521,892)$ 9,633,463$ 1,116,126$ 8,517,337$
General Obligation 2011 Library Bonds - Original Issue $11,995,000
On July 14, 2011, the City issued General Obligation Bonds Series 2011 in the amount of $11,995,000.
The bonds were issued to fully refund the General Obligation 2001 Library Bonds. The bonds are
payable from and secured by certain property taxes within the City. Interest on the bonds ranges from
2.0 percent to 4.0 percent and is payable on February 1 and August 1 of each year, commencing February
1, 2012. Principal is due annually beginning on August 1, 2012, in amounts ranging from $455,000 to
$790,000, with a final payment on August 1, 2031 of $820,000. The bonds maturing on or before August
1, 2021 are not subject to redemption prior to their respective stated maturity dates. Bonds maturing on or
after August 1, 2022 are subject to redemption prior to their respective stated maturity dates at the option
of the city at the principal amount of the bonds called for redemption, together with interest accrued
thereon to the date of redemption, without premium.
The annual debt service requirements on these bonds are as follows:
Year Ended Principal Interest Total
2020 525,000$ 319,035$ 844,035$
2021 545,000 297,635 842,635
2022 565,000 278,260 843,260
2023 580,000 258,185 838,185
2024 610,000 234,385 844,385
2025-2029 3,405,000 803,623 4,208,623
2030-2032 2,370,000 144,600 2,514,600
Total 8,600,000$ 2,335,723$ 10,935,723$
Compensated Absences
The City's liability for vested and unpaid compensated absences (accrued vacation and sick pay) has been
accrued and amounts to $748,861 at June 30, 2019. The compensated absences liability will generally be
liquidated through the General Fund.
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A summary of the Fiduciary Fund long-term obligations for the year ended June 30, 2019, is presented
below:
Classification
Balance Balance Due Within Due In More
Description June 30, 2018 Additions Retirements June 30, 2019 One Year Than One Year
Fiduciary (Agency) Funds:
Special Tax Bonds:
2018 Arrowhead CFD -$ 2,498,848$ -$ 2,498,848$ 89,531$ 2,409,317$
Total -$ 2,498,848$ -$ 2,498,848$ 89,531$ 2,409,317$
Arrowhead Community Facilities District Bond
The Arrowhead Community Facilities District encompasses 39 homes located along the hillside between
Rolling Hills Road and Blue Hills Lane, off of Prospect Road. Since 1951, this neighborhood has
operated its own private water company (Arrowhead Cooperative Company Inc., aka ACCI). Over the
years the number of Arrowhead Cooperative residents and water service meters have increased, to the
extent that the water system infrastructure is no longer sufficient for water and fire protection needs. The
potential of the fire danger situation prompted the Arrowhead Board to ask the City for assistance to issue
a bond for the purpose of financing improvements to the water system. Subsequently, on December 21,
2016, the City Council approved the formation of the Arrowhead Community Facility District (CFD). On
May 2, 2017, the CFD’s 39 residential parcel owners unanimously approved Measure L, which allowed
for the assessment of a special tax levy to finance a bond.
On October 17, 2018, the City Council authorized the issuance of the Saratoga Community Facilities
District 2016-1 (Arrowhead Project) Special Tax Bonds, Series 2018, with the issue date of December 10,
2018. Debt service on the Special Tax Bond is payable only from special taxes levied annually on taxable
properties within the CFD in the manner set forth in the Rate and Method of Apportionment (RMA)
approved by the Council in connection with the formation of the District. The 2018 Bonds will not have
any impact on the City’s General Fund or Government-wide financial statements, and these special
financing district bonds are not assets or liabilities of the City for financial statement purposes.
Bond terms are 30 years at 6.05% interest. The payment amounts may change over time if bond holders
choose to pay off their share of the debt instead of following the bond’s payment schedule. The annual
debt service requirements on these bonds are as follows:
Year Ended Principal Interest Total
2020 89,531$ 148,472$ 238,003$
2021 32,442 144,782 177,224
2022 34,405 142,760 177,165
2023 36,487 140,616 177,103
2024 38,694 138,341 177,035
2025-2029 231,550 652,476 884,026
2030-2034 310,598 571,037 881,635
2035-2039 416,630 461,797 878,427
2040-2044 558,862 315,263 874,125
2045-2049 749,649 118,705 868,354
Total 2,498,848$ 2,834,249$ 5,333,097$
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
68
NOTE 6 - RISK MANAGEMENT
The City participates in the following public entity risk pools:
PLAN Joint Powers Authority - The City was a member of the Association of Bay Area Government
(ABAG) Pooled Liability Assurance Network (PLAN), a self-insurance program pool since it was
established in 1986. Following a merge with the Metropolitan Transportation Commission (MTC),
ABAG eliminated the risk management pool oversight services to better align their charter of service.
ABAG PLAN provided general liability, auto, property insurance, and risk management services to 28
cities within the Bay Area. Following the merger and elimination of ABAG PLAN, the 28 agency
members joined together and formed a Joint Powers Authority (JPA) and contracted with Bickmore Risk
Services for administrative support. Each member chooses a self-insured retention (SIR) ranging from
$25,000 to $250,000, which is reflected in premium rates. The insurance pool pays claims up to a limit of
$5 million. To extend this protection, the association purchases another $25 million of excess insurance
coverage for a total of $30 million per occurrence limit. Coverage provides protection for Bodily Injury,
Property Damage, Personal Injury, and Public Officials Errors and Omissions claims, and minimizes the
City’s exposure to losses as a result of City policy or actions. The City’s annual premium allows for a
self-coverage retention level of $25,000 per occurrence.
The City continues to submit claim information to a third party administrator (TPA), York Insurance
Services Group. York’s staff follows up with other parties and insurance firms, acting as the City’s
insurance agent. In addition to insurance, PLAN JPA provides a variety of risk management services,
including policy guidance to effectively identify, analyze, and minimize risks, guidance and training to
promote best practices, and grant incentives for safety programs.
PLAN Workers' Compensation Shared Agency Risk Pool (SHARP) – covers workers' compensation
coverage up to $250,000 and excess coverage provides an employer liability limit of $5 million per
occurrence, and workers’ compensation per occurrence limit to $100 million. The City has no deductible
for these claims. During the fiscal year ended June 30, 2019, the City contributed $141,633 for current
year coverage. The City's contribution equals the ratio of the City's payroll to the total payrolls of all
entities participating in the same layer of each program, in each program year.
Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread
to member entities on a percentage basis after a retrospective rating.
There have been no significant reductions of insurance settlements that exceeded insurance coverage for
the past three years.
The workers’ compensation and general liability claims payable of $53,293 reported at June 30, 2019, is
based on the requirements of GASB Statement No. 10, which requires that a liability for claims be
reported if information prior to the issuance of the basic financial statements indicates that it is probable
that a liability has incurred at the date of the basic financial statements and the amount of the loss can be
reasonably estimated. Changes in the claims payable amounts were as follows:
The General Fund has been used in the prior years to liquidate the liability for claims and judgments.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
69
Year Ended Year Ended
June 30, 2019 June 30, 2018
Claims payable, beginning of year 76,001$ 41,003$
Fiscal year claims and changes in estimates (15,404) 34,998
Claims payments (7,304) -
Claims payable, end of year 53,293$ 76,001$
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.
Audited financial information for each risk pool may be obtained from Bickmore at 1750 Creekside Oaks
Dr., Ste. 200, Sacramento, California 95833.
NOTE 7 - RETIREMENT PLANS
Defined Benefit Pension Plan
Plan Description – All CalPERS qualified employees are eligible to participate in the City’s
Miscellaneous Employee Pension Plan (the Plan), a cost-sharing multiple-employer defined benefit
pension plan administered by the California Public Employees’ Retirement System (CalPERS).
CalPERS act as a common investment and administrative agent for participating public entities within the
State of California. Benefit provisions and all other requirements are established by State statute and City
ordinance. CalPERS issues publicly available reports that include a full description of the pension plans
regarding benefit provisions, assumptions and membership information that can be found on the CalPERS
website or copies of these reports may be obtained from their Executive Office located at 400 P Street,
Sacramento, California 95811.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members with
five years of total service are eligible to retire at age 55. All members are eligible for non-duty disability
benefits after 10 years of service. Death benefits include the 1959 Survivor Benefit and the Optional
Settlement 2 Death Benefit. The cost of living adjustments for the Plan are applied as specified by the
Public Employee’s Retirement Law. The Plan’s provisions and benefits in effect at June 30, 2019, are
summarized as follows:
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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New Employees
Tier 1 Tier 2 PEPRA
Hire Date
Hired before
May 12, 2012
Hired on or after
May 12, 2012
Hired on or after
January 1, 2013
Benefit formula 2% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 Years 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life Monthly for Life
Retirement age 55 60 62
Monthly benefits as a % of eligible compensation 2.0%2.0%2.0%
Required employee contribution rates 7%7%6.5%
Required employer contribution rates 10.15%8.35%7.27%
Classic Employees
Employees Covered – At June 30, 2019, the following employees were covered by the benefit terms for
the Plan:
Miscellaneous
Active 59
Transferred 42
Separated 35
Retired 118
Total 254
Contributions – Section 20814(c) of California Public Employees’ Retirement Law requires that the
employer contribution rates for all public employers are determined on an annual basis by an actuary and
shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the
Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined
rate is the estimated amount necessary to finance the costs of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability. The City is required to
contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2019, the employer contributions, including the UAL payment of $1,000,000,
recognized as part of pension expense for the Plan were as follows:
Miscellaneous
Contributions - employer $ 1,637,179
Contributions - employee 426,494
Total $ 2,063,673
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions -
As of June 30, 2019, the City reported net pension liabilities for its proportionate share of the net pension
liability of the Plan as follows:
Miscellaneous
Proportionate Share of
Net Pension
Liability/(Asset)
$ 7,236,672
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
71
The City’s net pension liability for the Plan is measured as the proportionate share of the Plan’s net
pension liability. The net pension liability of the Plan is measured at June 30, 2019, and the total pension
liability for the plan used to calculate the net pension liability was determined by an actuarial valuation as
of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. The City’s
proportion of the net pension liability was based on a projection of the City’s long-term share of the
contributions to the pension plan relative to the projected contributions of all participating employers,
actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June
30, 2018 and 2019 was as follows:
Miscellaneous
Proportion - June 30, 2018 0.19170%
Proportion - June 30, 2019 0.19202%
Change - Increase/(Decrease)0.00032%
For the year ended June 30, 2019, the City recognized pension expense of $851,148. At June 30, 2019,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions 825,002$ 202,192$
Differences between Expected and Actual Experience 277,658 94,485
Differences between Projected and Actual Investment Earnings 35,776 -
Differences between Employer's Contributions and Proportionate
Share of Contributions - 553,812
Change in Employer's Proportion 952,995 234,967
Pension Contributions Made Subsequent to Measurement Date 1,637,179 -
Total 3,728,611$ 1,085,456$
The City reported $1,637,179 as deferred outflows of resources related to contributions subsequent to the
measurement date that will be recognized as a reduction of the net pension liability in the year ended June
30, 2020.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized as pension expense as follows:
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
72
634,533$
446,434
(9,902)
(65,090)
-
-
1,005,975$
2024
2020
Thereafter
Total
2021
2022
2023
Deferred
Outflows/
(Inflows) of
Resources
Fiscal Year
Ending June 30:
Actuarial Assumptions – The total pension liabilities in the June 30, 2017 actuarial valuations were
determined using the following actuarial assumptions:
Valuation Date June 30, 2017
Measurement Date June 30, 2018
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investment Rate of Return 7.15% (2)
Mortality (3)
(1) Varies by age and service
(2) Net of pension plan investment expenses, including inflation
(3) Derived using CalPERS' membership data for all funds
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
73
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017
valuation were based on the results of a January 2014 Actuarial Experience Study for the period 1997 to
2011. Further details of the Experience Study can be found on the CalPERS website.
Discount Rate – The discount rate used to measure the total pension liability was 7.15 percent for the
Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate
for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be
different from the actuarially assumed discount rate. Based on the testing, none of the tested plans ran out
of assets. Therefore, the current 7.15 percent discount rate is adequate, and the use of the municipal bond
rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to
all plan in the Public Employees’ Retirement Fund (PERF). The stress test results are presented in the
detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without
reduction for pension plan administrative expense. The 7.15 percent investment return assumption used in
this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be
15 basis points. Using this lower discount rate has resulted in a slightly higher Total Pension Liability
and Net Pension Liability. CalPERS checked the materiality threshold for the difference in calculation
and did not find it to be a material difference.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
(first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the single equivalent expected return that arrived
at the same present value of benefits for cash flows as the one calculated using both short-term and long-
term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated
above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset
allocation. These rates of return are net of administrative expenses.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
74
Assumed
Asset Real Return Real Return
Asset Class (a)Allocation Years 1 - 10 (b)Years 11+ (c)
Global Equity 50.00%4.80%5.98%
Fixed Income 28.00%1.00%2.62%
Inflation Sensitive 0.00%0.77%1.81%
Private Equity 8.00%6.30%7.23%
Real Estate 13.00%3.75%4.93%
Liquidity 1.00%0.00%-0.92%
Total 100.00%
(a) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity
Liquidity is included in Short-term Investments; Inflation Assets are included in both
Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period.
(c) An expected inflation of 2.92% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate –
The following presents the City’s proportionate share of the net pension liability for the Plan, calculated
using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-
percentage point higher than the current rate:
Miscellaneous
1% Decrease 6.15%
Net Pension Liability 13,913,795$
Current 7.15%
Net Pension Liability 7,236,672$
1% Increase 8.15%
Net Pension Liability 1,724,817$
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net
position is available in the separately issued CalPERS financial reports.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
75
NOTE 8 - NET POSITION
A. Net Investment in Capital Assets
As of June 30, 2019, the net investment in capital assets consisted of the following:
Capital assets, net 122,459,410$
2011 general obligation library bonds (8,600,000)
Net original issue premium (284,602)
Net investment in capital assets 113,574,808$
B. Restricted Net Position
As of June 30, 2019, the restricted net position consisted of the following:
Environmental Special Debt
Services Assessments Service Total
Restricted Net Position 163,182$ 1,621,946$ 932,880$ 2,718,008$
Restricted For
NOTE 9 - JOINT POWERS AGREEMENTS
The City is a member of several Joint Power Agreements, as follows:
The Santa Clara County Valley Transportation Authority (VTA) consists of various cities in the San
Francisco Bay area. The Transportation Authority was formed in 1985, by a joint exercise of powers
agreement between the County of Santa Clara and the cities of Santa Clara County for the purpose of
financing highway capital improvements within the County to serve transportation needs. Financial
statements may be obtained from the Traffic Authority at 1754 Technology Drive, Suite 224, San Jose,
California 95110.
The West Valley Solid Waste Management Joint Powers Authority consists of the West Valley cities of
Campbell, Los Gatos, Monte Sereno, and Saratoga. The JPA was formed to coordinate efforts in carrying
out solid waste collection and disposal activities, and in meeting the mandates of AB939, the States’
Integrated Waste Management Act.
The Silicon Valley Regional Interoperability Authority (SVRIA) consists of Silicon Valley agencies
formed to coordinate the design and implementation of an interoperable public safety communication
system.
The Santa Clara County Library System JPA consists of various member agencies as a policy making and
governing body of the County’s library system.
The Silicon Valley Clean Energy Authority (SVCEA) consists of various Silicon Valley agencies formed
to address climate change by reducing energy related greenhouse gas emissions and securing energy
supply and price stability, energy efficiencies and local economic benefits.
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
76
The West Valley Clean Water Program consists of the Cities of Campbell, Monte Sereno, Saratoga and
the Town of Los Gatos, and works to control discharge of polluted stormwater into local creeks and the
San Francisco Bay.
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.
NOTE 10 - EXCESS EXPENDITURES OVER APPROPRIATIONS
Excess of expenditures over appropriations in individual funds did not occur during Fiscal Year 2018/19.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
A. Lawsuits
The City is presently involved in certain matters of litigation that have arisen in the normal course of
conducting City business. City management believes, based upon consultation with the City Attorney,
that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the
City. Additionally, City management believes that the City's insurance programs are sufficient to cover
any potential losses should an unfavorable outcome materialize.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's
independent accountants in accordance with the provisions of the Federal Single Audit Act Amendments
of 1996 and applicable State requirements. For Federal programs, the City reached the level of qualifying
cost during the current fiscal year, so a single audit was required. Expenditures which may be disallowed,
if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if
any, to be immaterial.
C. Commitments
The City had outstanding contracts or planned construction projects as of June 30, 2019 totaling $1.9
million. Of this amount, $0.8 million was committed to Wattis Construction Company for the Prospect
Road Improvement Project.
In the opinion of City management, there were no additional outstanding matters that would have a
significant effect on the financial position of the funds of the City as of June 30, 2019.
NOTE 12 – TAX ABATEMENT DISCLOSURES
A. Williamson Act and Mills Act
The City enters into property tax abatement agreements with local property owners under the California
Land Conservation Act of 1965, commonly referred to as the Williamson Act. Under the Act, local
CITY OF SARATOGA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
77
entities may lower property tax assessments on private parcels that have been restricted to agricultural or
open space land use.
The Mills Act is a state law allowing cities to enter into contracts with the owners of historic structures.
Such contracts require a reduction of property taxes in exchange for the continued preservation of the
property. Property taxes are recalculated using a formula in the Mills Act and Revenue and Taxation
Code.
For the fiscal year ended June 30, 2019, the City abated property taxes totaling $19,684 under these
programs.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2019
80
NOTE 1 - BUDGETARY INFORMATION
The following is the budget comparison schedule for General Fund.
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes 13,189,900$ 13,189,900$ 14,166,178$ 976,278$
Sales taxes 1,050,000 1,050,000 1,207,471 157,471
Other local taxes 930,000 930,000 896,420 (33,580)
Licenses & permits 1,724,150 1,724,150 1,909,022 184,872
Fines & forfeitures 141,100 141,100 118,293 (22,807)
Intergovernmental - Fed - - (11,219) (11,219)
Intergovernmental - State 452,500 452,500 501,110 48,610
Intergovernmental - Other 35,000 35,000 43,166 8,166
Franchise fees 2,462,000 2,462,000 2,289,964 (172,036)
Use of money & property 665,106 665,106 1,071,748 406,642
Other revenue 1,646,820 1,646,820 1,923,795 276,975
Total revenues 22,296,576 22,296,576 24,115,948 1,819,372
EXPENDITURES:
Current:
General and intergovernmental services 5,807,542 5,570,378 5,204,878 365,500
Public safety 6,003,634 6,003,634 6,004,406 (772)
Public works 6,019,955 6,179,955 5,972,517 207,438
Community services 1,598,968 1,884,397 1,396,746 487,651
Community development services 2,524,592 2,524,592 2,309,258 215,334
Capital outlay - - - -
Total expenditures 21,954,691 22,162,956 20,887,805 1,275,151
REVENUES OVER
(UNDER) EXPENDITURES 341,885 133,620 3,228,143 3,094,523
OTHER FINANCING SOURCES (USES):
Transfers in - - 158,391 158,391
Transfers out (1,270,000) (1,765,000) (1,840,867) (75,867)
Total other financing sources (uses)(1,270,000) (1,765,000) (1,682,476) 82,524
Net change in fund balances (928,115)$ (1,631,380)$ 1,545,667 3,177,047$
FUND BALANCES:
Beginning of year 13,133,917
End of year 14,679,584$
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2019
81
Through the budget, the City Council sets the direction of the City, allocates its resources and establishes
its priorities. The Annual Operating and Capital Budgets assure the efficient and effective uses of the
City's economic resources, as well as establishing that the highest priority objectives are accomplished.
The annual budgets are adopted for the period of July 1 to June 30, and prepared to accurately and openly
communicate service and infrastructure priorities to the community, businesses, vendors, employees, and
other public agencies. The Annual Operating Budget is developed on a program basis for all funds with
fund level authority. It establishes the foundation of effective financial planning by providing resource
planning, performance measures and controls that permit the evaluation and adjustment of the City's
performance. The City adopts an annual budget for the capital projects as part of adopting the five-year
Capital Improvement Plan. The annual capital budget is adopted on a project-by-project basis.
The City follows these procedures in establishing the budgetary data reflected in the basic financial
statements:
a. The City Manager submits to the City Council a proposed operating budget and five-year capital
improvements plan for the fiscal year commencing the following July 1. The operating and
capital budgets include proposed expenditures and the means of financing them.
b. Public hearings are conducted to obtain taxpayer comments.
c. The budgets are legally enacted through the passage of a resolution.
d. For the Operating Budget, the City Manager may authorize transfers of budget amounts within a
fund. However, any revisions that increase the total budgeted expenditures of any fund must be
approved by the City Council. Expenditures may not legally exceed budgeted appropriations at
the fund level without City Council approval.
e. As Capital Projects are adopted on a project basis, the City Council must approve increases or
decreases of budgeted amounts or changes in project scope. Upon project completion, immaterial
amounts are transferred to ongoing maintenance projects within the capital program. If remaining
project funds are material, the project balance is brought back to Council for approval to transfer.
f. Formal budgetary integration in the form of legally adopted budgets is employed as a
management control device for all funds. Budgets are adopted on a basis consistent with
generally accepted accounting principles. Budgeted expenditures reported are as amended by
supplemental appropriations of the City Council.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration in the General, Special Revenue, Internal
Service, and Capital funds. Unexpended and unencumbered appropriations automatically lapse at the end
of the fiscal year.
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2019
82
NOTE 2 - MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL
ASSETS
In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure
capital assets. The City defines infrastructure as the basic physical assets that allow the City to function
and those resources utilized primarily by the public which provide future economic benefits for a
minimum of two years. Infrastructure can be defined as assets that are immovable and of value only to
the government. Major infrastructure includes the street system, park and recreation lands and
improvements; storm water conveyance and drainage systems, and buildings combined with site
amenities such as parking and landscaping areas used by the City in the conduct of its business. Each
major infrastructure system can be divided into subsystems. For example, the street system can be
divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, streetlights,
traffic control devices (signs, signals and pavement markings), landscaping and land. Subsystem detail is
not presented in these basic financial statements; however, the City maintains detailed information on
these subsystems.
The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for
infrastructure reporting for its Streets Pavement System. Under GASB Statement No. 34, eligible
infrastructure capital assets are not required to be depreciated under the following requirements:
• The City manages the eligible infrastructure capital assets using an asset management system
with characteristics of (1) an up-to-date inventory; (2) perform condition assessments and
summarize the results using a measurement scale; and (3) estimate annual amount to maintain
and preserve at the established condition assessment level.
• The City documents that the eligible infrastructure capital assets are being preserved
approximately at or above the established and disclosed condition assessment level.
The City commissioned a physical assessment of the streets conditions with the final report received April
15, 2017. The study assists the City by providing current inspection data used to evaluate current
pavement condition. This helps to maintain a City-defined desirable level of pavement performance
while optimizing the expenditure of limited fiscal resources. The entire pavement network within the
City is composed of approximately 141.1 centerline miles of paved surfaces. The City’s road system can
be grouped by function class and includes 24.2 centerline miles of arterial, 23.2 centerline miles of
collector, and 93.7 miles of residential.
To determine the City’s street condition, a visual survey of all pavement segments is conducted to assess
the existing surface condition of each of the individual pavement segments. Upon completion of the
study, a Pavement Condition Index (PCI) is calculated for each segment in the City's pavement network
to reflect the overall pavement condition. Rating between 0 and 100, a PCI of 0 would correspond to a
badly deteriorated pavement with virtually no remaining life. A PCI of 100 would correspond to a
pavement with proper engineering design and construction at the beginning of its life cycle.
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2019
83
The following conditions were defined:
Condition Rating
Excellent 80 - 100
Very Good 70 - 79
Good 50 - 69
Poor 25 - 49
Very Poor 0 - 24
The City's policy is to achieve an average rating of 70 for all streets, which is a very good rating. This
rating allows minor cracking and raveling of the pavement along with minor roughness that could be
noticeable to drivers traveling at the posted speeds. As of May 31, 2018, the City's street system was
rated at an estimated PCI index of 68 on average with the detail condition as follows:
Percent of
Condition Streets
Very Good 59%
Good 21%
Poor 10%
Very Poor 10%
The City expended $2,957,167 on street maintenance for the year ended June 30, 2019. These projects
include resurfacing, safety improvements, sidewalks, curbs and gutters, storm drain improvements,
beautification projects, and various other routine maintenance projects help to delay deterioration and
beautify the City’s roadway system. Council has established a goal for a minimum of $2,000,000 be
budgeted for the CIP Streets program on an annual basis. $11,115,211 is budgeted for various street
projects in the five-year CIP cycle beginning Fiscal Year 2019/20.
As of June 2019, approximately 20 percent of the City's streets were rated below the average standard of
“Good.” The City will continue to rehabilitate these segments of the streets. Total deficiencies (deferred
maintenance) identified in the Pavement Management System Report at the end of a five-year period
(2019-2023) will amount to approximately $21,700,000 for all streets and are expected to be rehabilitated
with a minimum annual budget of $2,000,000.
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2019
84
NOTE 3 – PENSION INFORMATION
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018
Fiscal Year Ended 2015 2016 2017 2018 2019
Contractually Required Contributions 908,980$ 668,417$ 617,707$ 707,891$ 583,629$
Contributions in Relation to Contractually
Required Contributions 4,203,599 1,109,589 1,016,197 1,289,450 1,637,179
Contribution Deficiency (Excess)(3,294,619)$ (441,172)$ (398,490)$ (581,559)$ (1,053,550)$
Covered Payroll 4,856,304$ 6,335,330$ 5,908,831$ 5,692,653$ 6,156,572$
Contributions as a % of Covered Payroll 86.56%17.51%17.20%22.65%26.59%
Notes to Schedule:
Valuation Date:June 30, 2017
Assumptions Used:Entry Age Method used for Actuarial Cost Method
Level Percentage of Payroll and Direct Rate Smoothing
3.8 Years Remaining Amortization Period
Inflation Assumed at 2.5%
Investment Rate of Returns set at 7.15%
Fiscal year 2015 was the first year of implementation, therefore only five years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65%
to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions was adjusted in fiscal year 2019.
CalPERS mortality table based on CalPERS' experience and include 15 years of projected ongoing
mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.
Schedule of Proportionate Share of Net Pension Liability
Last 10 Fiscal Years
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018
Fiscal Year Ended 2015 2016 2017 2018 2019
Proportion of Net Pension Liability (Misc Plan Only)0.28104%0.15551%0.18238%0.19170%0.19202%
Proportionate Share of Net Pension Liability 6,945,916$ 4,266,268$ 6,335,606$ 7,556,748$ 7,236,672$
Covered Payroll 4,714,858$ 4,856,304$ 6,335,330$ 5,908,831$ 5,692,653$
Proportionate Share of NPL as a %
of Covered Payroll 147.32%87.85%100.00%127.89%127.12%
Plan's Fiduciary Net Position as a % of the TPL 81.15%90.52%85.60%84.66%85.34%
Fiscal year 2015 was the first year of implementation, therefore only five years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65%
to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions was adjusted in fiscal year 2019.
85
SUPPLEMENTARY INFORMATION
86
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87
NONMAJOR GO VERNMENTAL FUNDS
Special Revenue Funds
Landscape & Lighting District and Storm Drain Funds – These funds account for revenues and
expenditures associated with maintaining the City’s 30 Landscape, Lighting, and Storm Drain zones
which were approved by consent of property owners living along or within the boundaries of the zones.
Debt Service Fund
Library Bond - Santa Clara County general obligation bond tax revenues are accumulated in this fund to
pay annual principal and interest payments on the refunded 2011 Library Improvement Bond.
CITY OF SARATOGA
COMBINING BALANCE SHEETS
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
88
Special
Revenue Debt Service
Lighting and Total
Landscaping Other
Assessment Library Governmental
District Bond Funds
ASSETS
Cash and investments 1,677,784$ 930,108$ 2,607,892$
Receivables:
Accounts 1,310 2,772 4,082
Total assets 1,679,094$ 932,880$ 2,611,974$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 57,148$ -$ 57,148$
Total liabilities 57,148 - 57,148
Fund Balances:
Restricted:
Special revenue funds 1,621,946 - 1,621,946
Debt service - 932,880 932,880
Total fund balances 1,621,946 932,880 2,554,826
Total liabilities and fund balances 1,679,094$ 932,880$ 2,611,974$
CITY OF SARATOGA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
89
Special Debt
Revenue Service
Lighting and Total
Landscaping Other
Assessment Library Governmental
District Bond Funds
REVENUES:
Property taxes 308,924$ -$ 308,924$
Special assessment 429,899 775,129 1,205,028
Use of money and property 35,612 1,205 36,817
Total revenues 774,435 776,334 1,550,769
EXPENDITURES:
Current:
General and ingov't services
Public works 562,828 - 562,828
Debt service:
Principal - 500,000 500,000
Interest and fiscal charges - 341,210 341,210
Total expenditures 562,828 841,210 1,404,038
REVENUES OVER
(UNDER) EXPENDITURES 211,607 (64,876) 146,731
OTHER FINANCING SOURCES (USES):
Proceeds from bond issuance - - -
Transfers in 25,000 - 25,000
Transfers out - - -
Total other financing sources (uses)25,000 - 25,000
Net change in fund balances 236,607 (64,876) 171,731
FUND BALANCES:
Beginning of year 1,385,339 997,756 2,383,095
End of year 1,621,946$ 932,880$ 2,554,826$
CITY OF SARATOGA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CAPITAL IMPROVEMENT
FOR THE YEAR ENDED JUNE 30, 2019
90
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Licenses & permits 451,300$ 451,300$ 451,300$ -$
Fines & forfeitures - - 8,210 8,210
Intergovermental - Federal 6,551,779 6,551,779 3,385,956 (3,165,823)
Intergovermental - State 1,251,790 1,251,790 1,276,352 24,562
Intergovermental - Other 695,000 695,000 197,557 (497,443)
Use of money and property 35,000 35,000 39,338 4,338
Other revenue 561,920 561,920 156,983 (404,937)
Total revenues 9,546,788 9,546,788 5,515,696 (4,031,092)
EXPENDITURES:
Capital outlay 14,402,925 15,360,182 7,458,141 7,902,041
Total expenditures 14,402,925 15,360,182 7,458,141 7,902,041
REVENUES OVER
(UNDER) EXPENDITURES (4,856,137) (5,813,394) (1,942,445) 3,870,949
OTHER FINANCING SOURCES (USES):
Transfers in 1,270,000 2,042,432 2,127,626 85,195
Transfers out - (302,432) (470,150) (167,719)
Total other financing sources (uses)1,270,000 1,740,000 1,657,476 (82,524)
Net change in fund balances (3,586,137)$ (4,073,394)$ (284,969) 3,788,425$
FUND BALANCES:
Beginning of year 3,537,026
End of year 3,252,057$
CITY OF SARATOGA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE & LIGHTING DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2019
91
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes 241,932$ 241,932$ 308,924$ 66,992$
Special assessments 434,626 434,626 429,899 (4,727)
Use of money and property 7,693 7,693 35,612 27,919
Other revenue - - - -
Total revenues 684,251 684,251 774,435 90,184
EXPENDITURES:
Current:
Public works 824,620 824,620 562,828 261,792
Total expenditures 824,620 824,620 562,828 261,792
REVENUES OVER
(UNDER) EXPENDITURES (140,369) (140,369) 211,607 351,976
OTHER FINANCING SOURCES (USES):
Transfers in 25,000 25,000 25,000 -
Transfers out - - - -
Total other financing sources (uses)25,000 25,000 25,000 -
Net change in fund balances (115,369)$ (115,369)$ 236,607 351,976$
FUND BALANCES:
Beginning of year 1,385,339
End of year 1,621,946$
CITY OF SARATOGA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LIBRARY BOND DEBT SERVICE FUND
FOR THE YEAR ENDED JUNE 30, 2019
92
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Special assessments 717,539$ 717,539$ 775,129$ 57,590$
Use of money and property 7,500 7,500 1,205 (6,295)
Total revenues 725,039 725,039 776,334 51,295
EXPENDITURES:
Debt service:
General and ingov't services
Principal 500,000 500,000 500,000 -
Interest and fiscal charges 341,535 341,535 341,210 325
Total expenditures 841,535 841,535 841,210 325
REVENUES OVER
(UNDER) EXPENDITURES (116,496) (116,496) (64,876) 51,620
Net change in fund balances (116,496)$ (116,496)$ (64,876) 51,620$
FUND BALANCES:
Beginning of year 997,756
End of year 932,880$
93
INTERNAL SERVICE FUNDS
Liability/Risk Management Insurance Fund – Accounts for insurance premiums, self-insurance portion
of claims, and administrative cost associated with settling claims. Charges made to operating departments
are based on liability risk and claim occurrence history.
Worker’s Compensation Fund – Accounts for insurance premiums, self-insured portion of claims, and
administrative costs associated with settling claims. Charges made to operating departments are based on
liability risk and claim occurrence history.
Office Support Fund - Photocopy equipment, postage and bulk mail meter expenses are controlled at
one source point and expended to the departments as goods or services are utilized.
Information Technology Services Fund – Supports the delivery of technology-based services and
infrastructure, including desktop support, network systems, technology upgrades and initiatives,
community systems, and associated information technology equipment.
Vehicle & Equipment Maintenance Fund – Accounts for the cost of operating and maintaining
automotive equipment used for service operations in various City departments.
Building Maintenance Fund – Accounts for operating costs associated with building maintenance.
Expenses include custodial supplies and services, maintenance and repair, utilities, and staffing costs.
Vehicle & Equipment Replacement Fund – Established to accumulate funding for the replacement of
vehicles and equipment. Replacement costs are charged to program over the asset’s life span, reflective
of usage.
Information Technology Equipment Replacement Fund – Established to accumulate funding for the
replacement of information technology equipment. Replacement costs are charged to departments over
the asset’s lifespan, reflective of usage.
Facility Furniture, Fixtures & Equipment Replacement Fund – Established to accumulate funding for
the replacement furniture, fixtures and equipment within city facilities. Replacement costs are charged to
programs based on that program’s share of asset use over the asset’s lifespan, reflective of usage.
CITY OF SARATOGA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2019
94
Liability /Information
Risk Workers'Office Technology
Management Compensation Support Services
ASSETS
Current assets:
Cash and investments 648,183$ 272,612$ 120,990$ 403,057$
Accounts receivable - 4,109 - 2,543
Total current assets 648,183 276,721 120,990 405,600
Noncurrent assets:
Capital assets:
Machinery and equipment - - - -
Less: accumulated depreciation - - - -
Total capital assets (net of
accumulated depreciation) - - - -
Total assets 648,183 276,721 120,990 405,600
LIABILITIES
Liabilities:
Current liabilities:
Accounts payable - 490 612 2,083
Accrued payroll 15,608 1,314 - 11,692
Claims payable 53,293 - - -
Total current liabilities 68,901 1,804 612 13,775
NET POSITION
Investment in capital assets - - - -
Unrestricted 579,282 274,917 120,378 391,825
Total net position 579,282$ 274,917$ 120,378$ 391,825$
95
Information Building
Vehicle Vehicle Technology Furniture &
and Equipment Building and Equipment Equipment Fixtures
Maintenance Maintenance Replacement Replacement Replacement Total
275,897$ 605,232$ 476,587$ 496,083$ 400,870$ 3,699,511$
- - - - - 6,652
275,897 605,232 476,587 496,083 400,870 3,706,163
- - 1,511,470 110,465 173,076 1,795,011
- - (1,053,372) (110,465) (13,337) (1,177,174)
- - 458,099 - 159,739 617,837
275,897 605,232 934,686 496,083 560,609 4,324,000
5,846 23,248 - 6,400 21,315 59,994
3,953 19,479 - - - 52,046
- - - - - 53,293
9,799 42,727 - 6,400 21,315 165,333
- - 458,099 - 159,739 617,837
266,098 562,505 476,587 489,683 379,555 3,540,830
266,098$ 562,505$ 934,686$ 489,683$ 539,294$ 4,158,667$
CITY OF SARATOGA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2019
96
Liability /Information
Risk Workers'Office Technology
Management Compensation Support Services
Operating revenues:
Charges for services 350,000$ 175,000$ 40,000$ 575,000$
Other operating revenues 1,830 9,979 9,629 16,550
Total operating revenues 351,830 184,979 49,629 591,550
Operating expenses:
Cost of services 326,455 207,436 46,215 563,989
Administration - - - -
Depreciation - - - -
Total operating expenses 326,455 207,436 46,215 563,989
Operating income 25,375 (22,457) 3,414 27,561
Transfers in - - - -
Change in net position 25,375 (22,457) 3,414 27,561
Total net position - beginning 553,907 297,374 116,964 364,264
Total net position - ending 579,282$ 274,917$ 120,378$ 391,825$
97
Information Building
Vehicle Vehicle Technology Furniture &
and Equipment Building and Equipment Equipment Fixtures
Maintenance Maintenance Replacement Replacement Replacement Total
275,000$ 925,000$ 150,000$ 150,000$ 200,000$ 2,840,000$
(1) 3,029 32,156 - (2) 73,170
274,999 928,029 182,156 150,000 199,998 2,913,170
245,234 881,310 23,023 84,046 68,181 2,445,889
- - - - - -
- - 151,538 2,023 13,337 166,898
245,234 881,310 174,561 86,069 81,518 2,612,787
29,765 46,719 7,595 63,931 118,480 300,383
- - - - - -
29,765 46,719 7,595 63,931 118,480 300,383
236,333 515,786 927,090 425,752 420,814 3,858,284
266,098$ 562,505$ 934,685$ 489,683$ 539,294$ 4,158,667$
CITY OF SARATOGA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019
98
Liability /Information
Risk Workers'Office Technology
Management Compensation Support Services
Cash flows from operating activities:
Receipts from customers and users 351,830$ 187,281$ 49,629$ 590,046$
Payments to suppliers (252,295) (173,350) (46,100) (254,981)
Payments to employees (86,988) (36,126) - (316,107)
Other receipts - - - -
Net cash provided by operating activities 12,547 (22,195) 3,529 18,958
Cash flows from capital activities:
Acquisition of capital assets - - - -
Net cash used for acquisition of capital assets - - - -
Net increase (decrease) in cash and cash equivalents 12,547 (22,195) 3,529 18,958
Cash and cash equivalents, beginning of year 635,636 294,807 117,461 384,099
Cash and cash equivalents, ending of year 648,183$ 272,612$ 120,990$ 403,057$
Reconciliation of operating income to net cash provided
by operating activities:
Operating income (loss)25,375$ (22,457)$ 3,414$ 27,561$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation - - - -
Change in operating assets and liabilities:
Accounts receivables - 2,302 - (1,504)
Accounts payable (2,606) (2,132) 115 (8,005)
(Decrease) in deposits payable - - - -
Claims payable (22,708) - - -
Accrued payroll 12,486 92 - 906
Net cash provided (used) by operating activities 12,547$ (22,195)$ 3,529$ 18,958$
99
Information Building
Vehicle Vehicle Technology Furniture &
and Equipment Building and Equipment Equipment Fixtures
Maintenance Maintenance Replacement Replacement Replacement Total
274,999$ 928,029$ 182,156$ 150,000$ 199,999$ 2,913,969$
(144,220) (473,647) (26,553) (100,583) (46,867) (1,518,596)
(101,620) (410,113) - - - (950,954)
- - - - - -
29,159 44,269 155,603 49,417 153,132 444,419
- - (200,494) - (173,076) (373,570)
- - (200,494) - (173,076) (373,570)
29,159 44,269 (44,891) 49,417 (19,944) 70,849
246,738 560,963 521,478 446,666 420,814 3,628,662
275,897$ 605,232$ 476,587$ 496,083$ 400,870$ 3,699,511$
29,765$ 46,719$ 7,595$ 63,931$ 118,480$ 300,383$
- - 151,538 2,023 13,337 166,898
- - - - - 798
(1,142) (7,146) (3,530) (16,537) 21,315 (19,668)
- - - - - -
- - - - - (22,708)
536 4,696 - - - 18,716
29,159$ 44,269$ 155,603$ 49,417$ 153,132$ 444,419$
100
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101
FIDUCIARY FUNDS
West Valley Clean Water Program – Accounts for all activities of the West Valley Clean Water Program
Joint Powers Agreement. The City of Saratoga accounts for the JPA’s financial activities.
Arrowhead Community Facilities District Bond – Accounts for the bond reserves and debt service for
the Arrowhead District
Arrowhead Community Facilities District Project Funding - Accounts for the financial activity related
to the District’s capital outlay.
CITY OF SARATOGA
FIDUCIARY FUNDS
COMBINING BALANCE SHEET
FOR THE YEAR ENDED JUNE 30, 2019
102
West Valley Arrowhead Arrowhead Total
Clean Water CFD CFD Agency
Program Bond District Funds
ASSETS
Cash and investments 573,059$ 280,736$ 408,605$ 1,262,400$
Total assets 573,059 280,736 408,605 1,262,400
LIABILITIES
Accounts payable 57,618 - - 57,618
Deposits payable 14,888 - - 14,888
Due for debt service - 280,736 - 280,736
Due to other agencies 500,553 - 408,605 909,158
573,059$ 280,736$ 408,605$ 1,262,400$
CITY OF SARATOGA
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2019
103
Balance Balance
West Valley Clean Water Program July 1, 2018 Additions Deductions June 30, 2019
ASSETS
Cash and investments -$ 1,409,218$ (836,159)$ 573,059$
Total assets - 1,409,218 (836,159) 573,059
LIABILITIES
Accounts Payable - 57,618 - 57,618
Deposits payable - 14,888 - 14,888
Due to other agencies -$ 500,553$ -$ 500,553
Total liabilities -$ 573,059$ -$ 573,059$
Balance Balance
Arrowhead Community Facilities District Bond July 1, 2018 Additions Deductions June 30, 2019
ASSETS
Cash and investments -$ 315,952$ (35,216)$ 280,736$
Total assets - 315,952 (35,216) 280,736
LIABILITIES
Due for debt service - 315,952 (35,216) 280,736
Total liabilities -$ 315,952$ (35,216)$ 280,736$
Balance Balance
Arrowhead Community Facilities District July 1, 2018 Additions Deductions June 30, 2019
ASSETS
Cash and investments -$ 3,909,614$ (3,501,009)$ 408,605$
Total assets - 3,909,614 (3,501,009) 408,605
LIABILITIES
Due to other agencies - 3,909,614 (3,501,009) 408,605
Total liabilities -$ 3,909,614$ (3,501,009)$ 408,605$
Balance Balance
Total Agency Funds July 1, 2018 Additions Deductions June 30, 2019
ASSETS
Cash and investments -$ 5,634,784$ (4,372,384)$ 1,262,400$
Total assets - 5,634,784 (4,372,384) 1,262,400
LIABILITIES
Accounts Payable - 57,618 - 57,618
Deposits payable - 14,888 - 14,888
Due for debt service - 315,952 (35,216) 280,736
Due to other agencies - 4,410,167 (3,501,009) 909,158
Total liabilities -$ 4,798,625$ (3,536,225)$ 1,262,400$
104
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105
CAPITAL ASSETS
USED IN THE OPERATION OF GOVERNMENTAL FUNDS
106
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CITY OF SARATOGA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
COMPARATIVE SCHEDULE BY SOURCE
JUNE 30, 2019 AND 2018
107
2019 2018
Governmental Funds Capital Assets:
Land and land improvements 15,591,925$ 15,591,925$
Buildings and structures 26,570,196 26,480,196
Machinery and equipment 2,269,291 2,084,447
Infrastructure 111,389,586 111,370,017
Construction in progress 10,320,046 6,974,813
Total Governmental Funds Capital Assets 166,141,044 162,501,398
Accumulated depreciation (42,624,670) (40,453,154)
Total Governmental Funds Capital Assets, Net 123,516,374$ 122,048,244$
Investments in Governmental Funds
Capital Assets by Source:
General Fund 115,212,479$ 115,212,479$
Special revenue funds 960,972 960,972
Capital projects funds 49,120,244 45,480,598
Donations 847,348 847,348
Accumulated depreciation (42,624,670) (40,453,154)
Total Governmental Funds Capital Assets 123,516,374$ 122,048,244$
1 This schedule presents only the capital asset balances related to governmental funds. Accordingly
the capital assets reported in internal service funds are excluded from the above amounts.
Generally, the capital assets of internal service funds are included as governmental activities in the
statement of net position.
CITY OF SARATOGA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY1
JUNE 30, 2019
108
Land Buildings
and Land and
Improvements Structures
Function and Activity
General and intergovernmental services:
Management services -$ 564,632$
Administrative services - 521,073
Intergovernmental services 118,184 3,138,641
Total General and Intergovernmental Services:118,184 4,224,346
Public safety:
Police services - -
Code enforcement - -
Total Public Safety:- -
Public works:
Streets and sidewalks 835,155 62,921
Parks/open space 4,718,585 3,275,380
Total Public Works:5,553,740 3,338,301
Community services 8,177,538 4,692,650
Community development services 1,742,463 14,314,899
Total Governmental Funds Capital Assets 15,591,925 26,570,196
Accumulated depreciation - (11,519,074)
Total Governmental Funds Capital Assets, Net 15,591,925$ 15,051,122$
1 This schedule presents only the capital asset balances related to governmental funds. Accordingly
the capital assets reported in internal service funds are excluded form the above amounts.
Generally, the capital assets of internal service funds are included as governmental activities in the
statement of net position.
109
Machinery Construction
and in
Equipment Infrastructure Progress Total
624,241$ -$ 73,051$ 1,261,924$
140,332 - - 661,405
22,225 - - 3,279,050
786,798 - 73,051 5,202,379
15,434 - - 15,434
7,548 - - 7,548
22,982 - - 22,982
315,276 111,262,349 7,142,684 119,618,385
151,110 - 3,000,165 11,145,240
466,386 111,262,349 10,142,849 130,763,625
916,773 127,237 104,146 14,018,344
76,352 - - 16,133,714
2,269,291 111,389,586 10,320,046 166,141,044
(1,476,040) (29,629,556) - (42,624,670)
793,251$ 81,760,030$ 10,320,046$ 123,516,374$
CITY OF SARATOGA
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGE BY FUNCTION AND ACTIVITY
JUNE 30, 2019
110
Governmental Governmental
Funds Capital Funds Capital
Assets Assets
July 1, 2018 Additions Deletions June 30, 2019
Function and Activity
General and intergovernmental services:
Management services 1,261,924$ -$ -$ 1,261,924$
Administrative services 661,405 - - 661,405$
Intergovernmental services 3,279,050 - - 3,279,050$
Total General and Intergovernmental Services:5,202,379 - - 5,202,379$
Public safety:
Police services 15,434 - - 15,434$
Code enforcement 7,548 - - 7,548$
Total Public Safety:22,982 - - 22,982$
Public works:
Streets and sidewalks 116,758,760 2,879,194 (19,569) 119,618,385$
Parks/open space 10,572,461 572,779 - 11,145,240$
Total Public Works:127,331,221 3,451,973 (19,569) 130,763,625$
Community services 13,838,205 395,261 (215,122) 14,018,344$
Community development services 16,106,611 86,823 (59,720) 16,133,714$
Total Governmental Funds Capital Assets 162,501,398 3,934,057 (294,411) 166,141,044$
Accumulated depreciation (40,453,154) (2,171,516) - (42,624,670)$
Total Governmental Funds Capital Assets, Net 122,048,244$ 1,762,541$ (294,411)$ 123,516,374$
1 This schedule presents only the capital asset balances related to governmental funds. Accordingly
the capital assets reported in internal service funds are excluded form the above amounts.
Generally, the capital assets of internal service funds are included as governmental activities in the
statement of net position.
111
STATISTICAL SECTION
112
This page is intentionally blank
113
This part of the City of Saratoga's comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the government's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how
the government's financial performance and well being have changed over time. 114-119
Revenue Capacity
These schedules contain information to help the reader assess the government’s
most significant local revenue source; property tax. 120-129
Debt Capacity
These schedules present information to help the reader assess the affordability
of the government's current levels of outstanding debt and the government's ability
to issue additional debt in the future. 130-136
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities
take place. 137-138
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the government's financial report relates to the services the
government provides and the activities it performs. 140-145
The City of Saratoga implemented GASB Statement No. 34 in Fiscal Year 2001/02; schedules presenting
government-wide information include information beginning in that year.
The City of Saratoga implemented GASB Statement No. 44 in Fiscal Year 2007/08; newly required
schedules presenting information in the Statistical Section include the earliest available information.
CITY OF SARATOGA
NET POSITION BY COMPONENT
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
114
(amounts expressed in thousands)
2010 2011 2012 2013
Primary government
Governmental activities
Net investment in capital assets 108,966$ 110,016$ 111,201$ 112,353$
Restricted 5,519 5,830 1,938 1,971
Unrestricted 8,533 7,964 12,248 13,357
Total primary government 123,018$ 123,810$ 125,387$ 127,681$
Fiscal Year
$100,000
$105,000
$110,000
$115,000
$120,000
$125,000
$130,000
$135,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net Position by Component
Net investment in capital assets Restricted Unrestricted
115
2014 2015 2016 2017 2018 2019
112,116$ 112,092$ 112,030$ 111,241$ 113,053$ 115,250$
2,045 2,138 2,242 2,375 2,596 2,718
15,095 6,691 13,837 13,438 13,693 15,825
129,256$ 120,921$ 128,109$ 127,054$ 129,342$ 133,793$
CITY OF SARATOGA
CHANGES IN NET POSITION
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
116
(amounts expressed in thousands)
2010 2011 2012 2013
Expenses:
Governmental activities:
General and intergovernmental services 3,729$ 4,368$ 3,486$ 4,143$
Public safety 4,339 4,457 4,300 4,382
Public works 6,535 6,645 9,121 6,922
Community services 1,711 1,846 1,996 1,804
Community development services 1,751 1,839 1,553 1,713
Interest on long-term debt (unallocated)677 656 453 410
Total governmental activities expenses 18,742 19,811 20,909 19,374
Program revenues:
Charges for services:
General and intergovernmental services 125 171 140 102
Public safety 425 561 594 607
Public works 2,535 2,771 2,079 3,316
Community services 917 1,020 890 946
Community development services 1,586 1,734 1,923 2,184
Operating grants and contributions 275 401 1,319 75
Capital grants and contributions 674 1,221 2,337 599
Total governmental activates program revenues 6,537 7,879 9,282 7,829
Net (expense) revenue and change in net position (12,205) (11,932) (11,627) (11,545)
General revenue and other changes in net assets
Taxes:
Property taxes 8,371 8,199 8,457 9,153
Sales taxes 955 991 1,101 1,051
Local taxes 560 632 683 769
Franchise taxes 1,664 1,821 1,852 1,920
Motor vehicle in-lieu 101 146 16 16
Total Taxes 11,651 11,789 12,109 12,909
Intergovernmental 522 773 910 766
Investment earnings 101 65 67 51
Other revenues 91 97 118 113
Total general revenues 12,365 12,724 13,204 13,839
Change in net position 160 792 1,577 2,294
Net position - beginning of year 122,858 123,018 123,810 125,387
GASB 68 adjustment - - - -
Net position - beginning of year, as adjusted 122,858 123,018 123,810 125,387
Net position - end of year 123,018$ 123,810$ 125,387$ 127,681$
Source: CAFR
Fiscal Year
117
2014 2015 2016 2017 2018 2019
4,522$ 7,566$ 5,143$ 6,450$ 6,010$ 6,465$
4,491 4,850 4,787 5,444 5,728 6,005
7,379 6,273 6,181 9,164 7,943 10,271
1,586 1,589 1,582 1,557 1,594 1,287
2,179 1,962 2,012 2,906 2,285 2,198
400 391 381 367 359 334
20,557 22,631 20,086 25,888 23,919 26,560
120 122 98 153 152 107
330 354 310 327 368 467
2,768 2,474 3,004 2,462 2,397 2,376
958 952 1,114 1,071 914 736
2,220 2,234 2,397 2,127 2,343 1,815
117 107 165 223 90 95
808 785 183 1,062 219 3,631
7,321 7,028 7,271 7,425 6,483 9,227
(13,236) (15,603) (12,815) (18,463) (17,436) (17,333)
9,737 10,669 11,549 12,264 14,124 15,250
941 1,224 1,189 1,185 1,125 1,207
822 866 898 857 960 896
1,949 2,070 2,069 2,171 2,166 2,290
14 13 12 13 16 15
13,463 14,842 15,717 16,490 18,391 19,658
981 1,023 718 589 802 1,223
62 67 101 124 319 698
305 237 273 205 212 205
14,811 16,169 16,809 17,408 19,724 21,784
1,575 566 3,994 (1,055) 2,288 4,451
127,681 129,256 120,921 128,109 127,054 129,342
- (8,901) 3,193 - - -
127,681 120,355 124,114 128,109 127,054 129,342
129,256$ 120,921$ 128,109$ 127,054$ 129,342$ 133,793$
CITY OF SARATOGA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
118
(amounts expressed in thousands)
2010 2011 2012 2013
General fund:
Restricted 563$ 513$ 513$ 463$
Committed 300 500 600 675
Assigned 196 667 3,161 792
Unassigned 6,952 5,804 4,655 7,989
Total general fund 8,011$ 7,484$ 8,929$ 9,919$
All other governmental funds:
Restricted
Special revenue funds 569$ 504$ 563$ 622$
Debt service 893 851 862 886
Committed
Capital project funds 4,057 4,475 3,544 3,420
Total all other governmental funds 5,519$ 5,830$ 4,969$ 4,928$
Source: CAFR
Fiscal Year
Balances prior to fiscal year 2011 have been updated to conform with GASB 54 requirements
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
General -
Restricted
General -
Committed
General -
Assigned
General -
Unassigned
Debt
Service
Special
Revenue
Capital
Projects
Fund Balances of Governmental Funds
2010
2011
2012
2013
2014
2015
2016
2012
2018
2019
119
2014 2015 2016 2017 2018 2019
413$ 363$ 313$ 263$ 213$ 163$
993 1,000 1,000 790 1,000 1,000
2,648 2,854 2,672 3,272 3,705 5,399
7,782 5,589 6,655 6,659 8,216 8,117
11,836$ 9,806$ 10,640$ 10,984$ 13,134$ 14,679$
734$ 868$ 1,006$ 1,153$ 1,385$ 1,622$
898 907 923 959 998 933
3,126 3,859 4,716 5,085 3,537 3,252
4,758$ 5,634$ 6,645$ 7,197$ 5,920$ 5,807$
CITY OF SARATOGA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
120
(amounts expressed in thousands)
2010 2011 2012 2013
Tax revenues:
Property taxes 8,371$ 8,199$ 8,457$ 9,153$
Special assessments 1,247 1,255 1,243 1,185
Sales taxes 955 991 1,101 1,051
Local taxes 560 632 683 769
Franchise taxes 1,664 1,821 1,852 1,920
Motor vehicle in-lieu 101 146 16 16
Total tax revenues 12,898$ 13,044$ 13,352$ 14,094$
Source: CAFR
Fiscal Year
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Property
taxes
Special
assessments
Sales taxes Local taxes Franchise
taxes
Motor
vehicle in-
lieu
Tax Revenues by Source
2010
2011
2012
2013
2014
2015
2016
2012
2018
2019
121
2014 2015 2016 2017 2018 2019
9,737$ 10,669$ 11,549$ 12,264$ 13,247$ 14,475$
1,207 1,220 1,222 1,270 1,333 1,205
941 1,224 1,189 1,185 1,125 1,207
822 866 898 857 960 881
2,024 2,069 2,068 2,171 2,166 2,290
14 13 12 14 16 15
14,745$ 16,061$ 16,938$ 17,761$ 18,847$ 20,073$
CITY OF SARATOGA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
122
(amounts expressed in thousands)
2010 2011 2012 2013
Revenues:
Property taxes 8,371$ 8,199$ 8,457$ 9,153$
Special assessments 1,247 1,255 1,243 1,185
Sales taxes 954 991 1,101 1,051
Other local taxes 560 632 683 769
Licenses and permits 1,489 1,950 1,728 2,177
Fines and forfeitures 359 285 234 199
Intergovernmental - federal 430 1,033 1,915 975
Intergovernmental - state 1,258 1,480 1,728 1,142
Intergovernmental - other 258 337 73 269
Franchise fees 1,664 1,821 1,852 1,920
Use of money any property 595 550 589 527
Other revenues 1,794 2,169 2,199 2,421
Total tax revenues 18,979 20,702 21,802 21,788
Expenditures:
Current:
General and intergovernmental services 3,102 3,524 3,145 3,269
Public safety 4,349 4,467 4,310 4,392
Public works 4,730 4,717 4,751 4,966
Community services 1,223 1,322 1,269 1,318
Community development services 2,111 2,193 1,888 2,047
Capital outlay 2,584 3,704 5,179 3,979
Debt service:
Principal 330 350 370 455
Interest and fiscal charges 685 665 551 414
Total expenditures 19,114 20,942 21,463 20,840
over (under) expenditures (135) (240) 339 948
Other financing sources (uses):
Transfers in 1,172 1,725 510 510
Transfers out (1,017) (1,700) (485) (485)
Total other financing sources (uses)155 25 25 25
Net change in fund balances 19$ (215)$ 364$ 973$
Debt as a percentage of noncapital expenditures 5.80%5.56%4.68%4.76%
Source: CAFR
Fiscal Year
123
2014 2015 2016 2017 2018 2019
9,737$ 10,669$ 11,549$ 12,264$ 13,247$ 14,475$
1,207 1,220 1,222 1,270 1,333 1,205
941 1,224 1,189 1,185 1,125 1,207
823 866 898 857 960 896
2,023 1,613 2,216 1,908 2,677 2,360
196 175 248 171 127 127
796 651 158 954 181 3,375
1,410 1,538 1,182 1,053 1,253 1,777
129 97 76 222 136 241
1,949 2,070 2,068 2,171 2,166 2,290
521 557 647 651 779 1,148
2,547 2,589 2,709 2,203 2,397 2,081
22,279 23,269 24,162 24,909 26,381 31,182
3,247 6,624 4,246 4,372 4,585 5,205
4,491 4,860 5,226 5,444 5,705 6,005
5,243 5,381 5,701 6,002 6,085 6,535
1,383 1,328 1,475 1,573 1,292 1,397
2,182 2,087 2,193 2,324 2,247 2,309
3,096 3,253 2,591 3,450 4,747 7,458
- -
485 495 500 475 485 500
405 395 385 373 362 341
20,532 24,423 22,317 24,013 25,508 29,750
1,747 (1,154) 1,845 896 873 1,432
1,291 785 1,768 3,580 3,397 3,397
(1,291) (785) (1,768) (3,580) (3,397) (3,397)
220 - - - - -
1,967$ (1,154)$ 1,845$ 896$ 873$ 1,432$
4.74%3.83%4.23%3.63%3.82%3.26%
CITY OF SARATOGA
PROPERTY TAX RATES – DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN YEARS
124
(Property Tax Rates per $100 of Assessed Value)
2010 2011 2012 2013
General 1.0000 1.0000 1.0000 1.0000
County Retirement Levy 0.0388 0.0388 0.0388 0.0388
County Library 0.0024 0.0024 0.0024 0.0024
City of Saratoga 0.0094 0.0094 0.0088 0.0080
1.0506 1.0506 1.0500 1.0492
Campbell School District 0.0285 0.0249 0.0283 0.0246
County Bond 2008 Hospital 0.0122 0.0095 0.0047 0.0051
Co. Housing Bond 2016 - - - -
Campbell Elementary 2002 0.0267 0.0298 0.0266 0.0220
Campbell Elementary 2010 - 0.0005 0.0003 0.0086
Campbell Elementary 2016 - - - -
Campbell Union High 1999 0.0183 0.0196 0.0186 0.0165
Campbell Union High 2006 0.0131 0.0131 0.0156 0.0160
Campbell Union High 2016 - - - -
West Valley Community College District 2004 0.0140 0.0139 0.0137 0.0139
West Valley Community College District 2012 - - - 0.0150
Santa Clara Valley Water District - State Water Project 0.0071 0.0070 0.0063 0.0069
Santa Clara Valley Water District - Zone W-1 0.0003 0.0002 0.0001 -
Mid Peninsula Open Space 2014 - - - -
0.1202 0.1185 0.1142 0.1286
Total Tax Rate 1.1708 1.1691 1.1642 1.1778
Source: Muniservices, LLC
Fiscal Year
125
2014 2015 2016 2017 2018 2019
1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
0.0388 0.0388 0.0388 0.0388 0.0388 0.0388
0.0024 0.0024 0.0024 0.0024 0.0024 0.0024
0.0074 0.0070 0.0065 0.0060 0.0056 0.0046
1.0486 1.0482 1.0477 1.0472 1.0468 1.0458
0.0264 0.0235 0.0220 0.0294 0.0244 0.0175
0.0035 0.0091 0.0088 0.0086 0.0082 0.0072
- - - - 0.0127 0.0105
0.0288 0.0172 0.0196 0.0258 0.0148 0.0085
- 0.0145 0.0136 - 0.0158 0.0240
- - - - 0.0122 0.0172
0.0134 0.0130 0.0119 0.0126 0.0120 0.0111
0.0156 0.0154 0.0138 0.0126 0.0119 0.0108
- - - - 0.0280 0.0268
0.0125 0.0101 0.0118 0.0096 0.0096 0.0089
0.0130 0.0019 0.0114 0.0100 0.0104 0.0190
0.0070 0.0065 0.0057 0.0086 0.0062 0.0042
- - - - - -
- - 0.0008 0.0006 0.0009 0.0018
0.1202 0.1112 0.1194 0.1178 0.1671 0.1675
1.1688 1.1594 1.1671 1.1650 1.2139 1.2133
CITY OF SARATOGA
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN YEARS
126
(amounts expressed in thousands)
Fiscal
Year Total
Ended Residential Commercial Industrial Other Unsecured Assessed
June 30 Property Property Property Property Property Property
2010 9,724,687 120,769 9,656 327,898 58,210 10,241,220
2011 9,639,782 107,269 9,633 323,881 57,172 10,137,737
2012 9,834,082 111,232 9,706 323,563 55,535 10,334,118
2013 10,312,597 112,875 11,455 335,765 62,378 10,835,070
2014 11,158,775 113,915 11,684 352,830 59,684 11,696,888
2015 11,775,973 117,466 11,737 361,202 56,354 12,322,732
2016 12,581,463 134,321 11,143 397,318 50,193 13,174,438
2017 13,227,811 141,391 10,245 426,257 45,838 13,851,542
2018 14,000,116 154,592 10,449 440,188 39,751 14,645,096
2019 14,899,703 160,219 10,658 460,375 45,669 15,576,624
Source:Santa Clara County Assessor data, MuniServices, LLC
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Assessed Property
Unsecured
Other
Industrial
Commercial
Residential
127
Total
Less:Total Taxable Direct
Tax Exempt Assessed Tax
Real Property Value Rate
(230,127) 10,011,093 1.0506
(230,477) 9,907,260 1.0506
(230,868) 10,103,250 1.0476
(233,895) 10,601,175 1.0492
(238,683) 11,458,205 1.0486
(242,724) 12,080,008 1.0482
(232,693) 12,941,745 1.0477
(232,279) 13,619,263 1.1650
(244,172) 14,400,924 1.2139
(233,581) 15,343,043 1.2133
CITY OF SARATOGA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
JUNE 30, 2019
128
(amounts expressed in thousands)
% of Total % of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Fellowship Plaza LP 47,861$ 1 0.31%
Humboldt Fields LLC 45,900 2 0.30%
SHP Quito Village LLC 35,210 3 0.23%
San Jose Water Works 27,863 4 0.18%13,308 5 0.13%
Keller Trustee 22,398 5 0.15%
House Trustee 15,214 6 0.10%14,346 5 0.15%
Osheanic Capital LLC 13,914 7 0.09%
Stormin Norman, LLC 13,636 8 0.09%
HJJ, LLC 13,390 9 0.09%
Nupont Properties LLC 13,260 10 0.09%
Cupertino Village Ass LLC 34,889 1 0.35%
Quito Village Associates LLC 31,110 2 0.31%
Sobrato Trustee 15,341 3 0.15%
Gregpenn Properties, LLC 14,424 4 0.14%
John Keller 12,201 6 0.12%
Argonaut Assoc LLC 10,510 7 0.10%
Krishnamurthi Ashok 10,439 8 0.10%
Rakesh and Dipti Mathur 10,193 9 0.10%
Stephen Luzco 10,043 10 0.10%
Top Ten Total Assessed Value 248,646$ 1.6%176,804$ 1.8%
City Total Assessed Value 15,343,045$ 10,011,093$
Source: Santa Clara County Assessor data, MuniServices, LLC
2019 2010
CITY OF SARATOGA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS
129
Fiscal Year Total Tax Collections in
Ended Levy for Subsequent
June 30 Fiscal Year Amount Percentage Years Amount Percentage
2010 8,371,396 8,371,396 100.0%- 8,371,396 100.0%
2011 8,199,341 8,199,341 100.0%- 8,199,341 100.0%
2012 8,456,687 8,456,687 100.0%- 8,456,687 100.0%
2013 9,152,865 9,152,865 100.0%- 9,152,865 100.0%
2014 9,737,144 9,737,144 100.0%- 9,737,144 100.0%
2015 10,669,281 10,669,281 100.0%- 10,669,281 100.0%
2016 11,549,213 11,549,213 100.0%- 11,549,213 100.0%
2017 12,263,575 12,263,575 100.0%- 12,263,575 100.0%
2018 13,247,030 13,247,030 100.0%- 13,247,030 100.0%
2019 14,475,102 14,475,102 100.0%- 14,475,102 100.0%
Source: City of Saratoga
Collected within the
Fiscal Year of the Levy Total Collections to Date
CITY OF SARATOGA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN YEARS
130
(amounts expressed in thousands, except per capita amounts)
2010 2011 2012 2013
Governmental activities
General obligation bonds 12,955$ 12,605$ 11,995$ 11,540$
Net original issue premium - - 438 416
Total primary government 12,955$ 12,605$ 12,433$ 11,956$
Percentage of Personal Income1 0.54%0.57%0.57%0.53%
Per capita2 405 417 409 389
Source: CAFR
1 US Census Bureau, adjusted for inflation, MuniServices LLC
2 Population information from California State Controller's Office
Fiscal Year
131
2014 2015 2016 2017 2018 2019
11,055$ 10,560$ 10,060$ 9,585$ 9,100$ 8,600$
394 372 350 328 306 285
11,449$ 10,932$ 10,410$ 9,913$ 9,406$ 8,885$
0.49%0.47%0.45%0.40%0.35%0.32%
371 355 344 324 299 283
CITY OF SARATOGA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN YEARS
132
(amounts expressed in thousands, except per capita amounts)
2010 2011 2012 2013
General obligation bonds 12,955$ 12,605$ 11,995$ 11,540$
Net original issue premium - - 438 416
Less: Amount available in debt service fund (890) (848) (860) (885)
Total primary government 12,065$ 11,757$ 11,135$ 10,655$
Percentage of actual taxable
value of property 0.12%0.12%0.11%0.10%
Per capita1 377 389 367 347
Source: CAFR
1Population information from California State Controller's Office
Fiscal Year
133
2014 2015 2016 2017 2018 2019
11,055$ 10,560$ 10,060$ 9,585$ 9,100$ 8,600$
394 372 350 328 306 285$
(898) (906) (923) (959) (998) (933)
10,551$ 10,026$ 9,487$ 8,954$ 8,408$ 7,952$
0.09%0.08%0.07%0.07%0.06%0.05%
342 326 314 293 267 253
CITY OF SARATOGA
LEGAL DEBT MARGIN INFORMATION
LAST TEN YEARS
134
(amounts expressed in thousands)
2010 2011 2012 2013
Debt Limit 1,536,183$ 1,520,660$ 1,550,118$ 1,625,261$
Total net debt applicable to limit 12,065 11,757 11,135 10,655
Legal debt margin 1,524,118$ 1,508,903$ 1,538,983$ 1,614,606$
Total net debt applicable to the limit
as a percentage of debt limit 0.79%0.77%0.72%0.66%
Legal debt margin calculation
Assessed value 10,011,093$ 9,907,259$ 10,103,250$ 10,601,175$
Add back: exempt real property 230,127 230,477 230,868 233,895
Total assessed value 10,241,220$ 10,137,736$ 10,334,118$ 10,835,070$
Debt limit (15% of total assessed value)1,536,183$ 1,520,660$ 1,550,118$ 1,625,261$
Debt applicable to limit:
General obligation bonds 12,955$ 12,605$ 11,995$ 11,540$
Net original issue premium - - 438 416
Less: Amount available in debt service fund (890) (848) (860) (885)
Total net debt applicable to limit 12,065$ 11,757$ 11,135$ 10,655$
Legal debt margin 1,524,118$ 1,508,903$ 1,538,983$ 1,614,606$
Source: CAFR
Fiscal Year
135
2014 2015 2016 2017 2018 2019
1,754,233$ 1,848,410$ 1,976,166$ 2,077,731$ 2,196,764$ 2,336,494$
10,157 9,654 9,137 8,626 8,102 7,667
1,744,076$ 1,838,756$ 1,967,029$ 2,069,105$ 2,328,827$ 2,328,827$
0.58%0.52%0.46%0.42%0.33%0.33%
11,458,205$ 12,080,008$ 12,941,745$ 13,619,263$ 14,400,924$ 15,343,043$
236,683 242,724 232,693 232,279 244,172 233,581
11,694,888$ 12,322,732$ 13,174,438$ 13,851,542$ 15,576,624$ 15,576,624$
1,754,233$ 1,848,410$ 1,976,166$ 2,077,731$ 2,196,764$ 2,336,494$
11,055$ 10,560$ 10,060$ 9,585$ 9,100$ 8,600$
394 372 350 328 306 285$
(898) (906) (923) (959) (998) (933)$
10,157$ 9,654$ 9,137$ 8,626$ 8,102$ 7,667$
1,744,076$ 1,838,756$ 1,967,029$ 2,069,105$ 2,188,662$ 2,328,827$
CITY OF SARATOGA
DIRECT AND OVERLAPPING
GOVERNMENTAL ACTIVITIES DEBT
136
(amount expressed in thousands)
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable 1 Debt
Direct Debt:
City of Saratoga 8,885$ 100.000%8,885$
City of Saratoga Community Facilities District No. 2016-1 2,499 100.000%2,499
Total Direct Debt 11,384
Overlapping Tax and Assessment Debt:
Santa Clara County 947,220 3.188%30,197
Foothill-De Anza Community College District 620,144 1.450%8,992
West Valley Community College District 635,310 9.209%58,506
Campbell Union High School District 389,345 5.621%21,885
Fremont Union High School District 562,210 3.203%18,008
Los Gatos-Saratoga Joint Union High School District 95,760 38.458%36,827
Campbell Union School District 194,775 6.826%13,295
Cupertino Union School District 274,238 5.709%15,656
Moreland School District 103,742 13.069%13,558
Saratoga Union School District 23,580 86.494%20,396
Saratoga Fire Protection District 2,743 97.660%2,679
Midpeninsula Regional Open Space District 92,460 5.377%4,972
Santa Clara Valley Water District Benefit Assessment 73,570 3.188%2,345
Total Overlapping Tax and Assessment Debt 247,316
Overlapping General Fund Debt:
Santa Clara County General Fund Obligations 987,719$ 3.188%31,488$
Santa Clara County Pension Obligations 352,379 3.188%11,234
Santa Clara County Board of Education
Certificates of Participation 4,255 3.188%136
Santa Clara County Vector Control District
Certificates of Participation 2,245 3.188%72
Foothill-De Anza Community College District
Certificates of Participation 26,723 1.450%387
West Valley-Mission College District
General Fund Obligations 62,200 9.209%5,728
Campbell Union High School District
Certificates of Participation 20,000 5.621%1,124
Los Gatos-Saratoga Joint Union High School District
Certificates of Participation 3,538 38.458%1,361
Campbell Union High School District
Certificates of Participation 2,680 6.826%183
Saratoga Union School District
Certificates of Participation 3,535 86.494%3,058
Midpeninsula Open Space Park District
General Fund Obligations 117,451 5.377%6,315
Total Overlapping General Fund Debt 61,086
Total Overlapping Tax & Assessment and General Fund Debt 308,402
Combined Total Debt2 319,786$
1Percentage of overlapping agency's assessed valuation located within boundaries of the city.
2Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation
bonds and non-bonded capital lease obligations.
Source: Muniservices, LLC
CITY OF SARATOGA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN YEARS
137
Personal Per Capita
Fiscal City Income Personal Labor Unemployment
Year Population1 (in thousands)2 Income2 Force 3 Rate 3
2010 31,997 2,401,151 75,043 13,200 5.6%
2011 30,195 2,211,963 73,256 13,400 5.0%
2012 30,363 2,119,463 69,804 14,000 4.4%
2013 30,706 2,179,904 70,993 13,900 4.2%
2014 30,887 2,243,458 72,634 14,200 3.4%
2015 30,799 2,248,481 73,005 15,100 2.7%
2016 30,219 2,239,926 74,123 14,700 2.9%
2017 30,569 2,374,919 77,690 14,600 2.7%
2018 31,435 2,597,561 82,706 15,000 2.8%
2019 31,407 2,681,900 85,392 15,000 2.0%
Source:1Popluaton information from California State Controller's Office
2US Census Data, adjusted for inflation, MuniServices LLC
3EDD Labor Market Information Division, MuniServices LLC
10,000
15,000
20,000
25,000
30,000
35,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Labor Force vs. Population
Population Labor Force
CITY OF SARATOGA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO AT JUNE 30, 2019
138
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
West Valley Community College 485 1 3.23%-
Saratoga Retirement Community 295 2 1.97%-
Saratoga Union School District 280 3 1.87%-
Sub-Acute Saratoga Hospital 150 4 1.00%-
Saratoga High School 135 5 0.90%-
Prospect High School 125 6 0.83%-
Our Lady Fatima Villa 121 7 0.81%-
Safeway 70 8 0.47%65 2 0.49%
City of Saratoga 56 9 0.37%-
Saint Andrew's Episcopal School 49 10 0.33%-
Gene's Fine Foods 85 1 0.64%
Saratoga Country Club 65 3 0.49%
Windmere SVP 27 4 0.20%
Longs Drugs 20 5 0.15%
Classic Car Wash 20 6 0.15%
Harmonie European Day Spa 20 7 0.15%
Hinshaw, Draa & Marsh 20 8 0.15%
Jakes of Saratoga 20 9 0.15%
Bella Saratoga 18 10 0.14%
Total Top 10 Employers 1,766 11.8%360 2.7%
Total City Employment1 15,000 13,200
1EDD Labor Market Information Division, MuniServices LLC
2019 2010
139
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CITY OF SARATOGA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
140
2010 2011 2012 2013
Function
General government 11.75 11.45 10.80 10.90
Public works 21.75 21.65 21.55 20.65
Community development 12.00 12.00 12.00 11.00
Parks and recreation 9.35 9.50 9.50 9.60
Total 54.85 54.60 53.85 52.15
Source: City of Saratoga Budget Document
Fiscal Year
-
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Full -Time Equivalents
General gov't Public works Comm Development Parks & Rec
141
2014 2015 2016 2017 2018 2019
13.65 13.70 13.70 13.65 14.55 14.65
20.75 20.65 20.65 20.65 21.15 21.75
12.00 12.00 12.00 12.00 12.50 12.00
9.60 9.55 9.55 8.35 8.30 8.70
56.00 55.90 55.90 54.65 56.50 57.10
CITY OF SARATOGA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
142
2010 2011 2012 2013
Function
Part 1 crimes 1 173 373 287 277
Total incidents 39,942 41,642 35,664 40,141
Police reports 1,273 1,549 1,329 1,106
Public Works
Street resurfacing (miles)3 - 6 6
Street lights repaired 24 25 41 29
Potholes filled (sq. ft.)10,000 11,000 10,000 12,060
Community Development
Total permit valuation ($000)44,658 50,936 59,675 79,896
Parks and Recreation
Classes, trips (enrollment) community events 4,366 6,135 5,479 5,365
Adult Exercise (e.g. JS Dance. Jazzerxcise)545 661 647 1,663
Sports programs (e.g. Adult basketball, softball)423 - - -
Preschool programs (enrollment)161 142 132 188
Staffed Day/summer camps (enrollment)331 326 - 45
Teen/youth council (enrollment)2,110 1,323 787 605
1Part 1 Crimes are the following as reported to DOJ: homicide, rape, robbery, burglary, assault, theft,
auto theft, and arson.
Source: City of Saratoga various records
Fiscal Year
143
2014 2015 2016 2017 2018 2019
408 315 463 301 190 289
41,228 40,695 39,213 38,893 32,222 31,955
978 917 1,334 1,295 927 885
4.3 2.5 15.2 0 - 8
34 39 33 37 15 12
11,000 10,500 21,010 13,000 9,000 11,000
79,702 89,929 75,599 106,631 128,062 82,722
6,235 8,390 5,898 5,081 5,769 3,632
2,173 1,650 2,099 2,824 2,082 731
- - - - - -
274 186 180 221 224 448
160 90 172 71 129 -
673 747 848 1,049 927 265
CITY OF SARATOGA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
144
2010 2011 2012 2013
Function
Public safety
Police Station - - - -
Fire Station
Saratoga Fire District 1 1 1 1
Central Fire District 1 1 1 1
Public Works
Street Miles - Private 14 14 14 14
Street Miles - Public 140 140 140 141
West Valley Sanitation District
Number of Connections 8,687 8,664 8,679 8,821
Length of Sewer Lines 127 127 127 127
Cupertino Valley Sanitation District
Number of Connections 2,949 2,954 2,959 2,961
Length of Sewer Lines 37 37 37 37
Parks and Recreation
Parks Acreage 84 84 84 84
Parks 15 15 15 15
Source: City of Saratoga various records
Fiscal Year
145
2014 2015 2016 2017 2018 2019
- - - - - -
1 1 1 1 1 1
1 1 1 1 1 1
15 14.5 14.5 14.5 14.5 14.5
142 142 142 142 142 142
8,919 8,402 8,488 8,563 9,051 9,058
127 128 129 126 126 126
2,963 2,963 2,999 3,000 3,000 3,003
37 37 37 37 37 37
84 84 148 148 148 148
15 15 16 16 16 16