HomeMy WebLinkAboutACFR - Fiscal Year 2023 24City of Saratoga, California
Annual Comprehensive Financial Report
For the fiscal year ended June 30, 2024
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CITY OF SARATOGA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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T ABLE OF C ONTENTS
I NTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................... 5
GFOA Certificate of Achievement for Excellence in Financial Reporting ......................... 11
Principal Officers of the City .......................................................................................... 13
Organization Chart ......................................................................................................... 15
FINANCIAL S ECTION
Independent Auditors’ Report ........................................................................................... 19
Management’s Discussion and Analysis (Required Supplementary Information) ............. 22
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Position .......................................................................................... 37
Statement of Activities .............................................................................................. 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 ................................ 43
Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 44
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Government-Wide
Statement of Activities and Changes in Net Position ............................................. 46
Proprietary Funds:
Statement of Net Position .......................................................................................... 47
Statement of Revenues, Expenses, and Changes in Fund Net Position ......................... 48
Statement of Cash Flows ........................................................................................... 49
Fiduciary Funds:
Statement of Fiduciary Net Position .......................................................................... 50
Statement of Changes in Fiduciary Net Position ......................................................... 51
Basic Financial Statement Notes:
Notes to the Basic Financial Statements ..................................................................... 55
Required Supplementary Information
Schedule of Budget vs Actual Information ................................................. .................91
Schedule of the Net Pension Liability Information ..................................................... .93
Schedule of Net OPEB Liability In formation .............................................................. 95
Notes to Required Supplementary Information ............................................................97
CITY OF SARATOGA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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T ABLE OF C ONTENTS C ONTINUED
S UPPLEMENTARY I NFORMATION:
Non-Major Governmental Funds
Combining Balance Sheets ...................................................................................... 104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...... 106
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
– Budget and Actual:
Capital Improvements Capital Projects Fund ...................................................... 108
Gas Tax Special Revenue Fund .......................................................................... 109
Landscape & Lighting Districts Special Revenue Fund ....................................... 110
Stormwater Maintenance District Special Revenue Fund .................................... 111
Tree Fines Special Revenue Fund ....................................................................... 112
Park In-Lieu Fees Special Revenue Fund ............................................................ 113
Storm 2023 Special Revenue Fund ..................................................................... 114
Grants CIP Capital Projects Fund ....................................................................... 115
Library Bond Debt Service Fund ........................................................................ 116
Internal Service Funds
Combining Statement of Net Position ...................................................................... 118
Combining Statement of Revenues, Expenses, and Change in Fund Balance ............. 120
Combining Statement of Cash Flows ....................................................................... 122
Custodial Funds
Combining Statement of Fiduciary Net Position ....................................................... 126
Combining Statement of Changes in Fiduciary Net Position ..................................... 127
Statistical Section (Unaudited)
Net Position by Component ..................................................................................... 130
Changes in Net Position .......................................................................................... 132
Fund Balance of Governmental Funds ...................................................................... 134
Governmental Activities Tax Revenues by Source ................................................... 136
Changes in Fund Balances of Governmental Funds .................................................. 138
Property Tax Rates - Direct and Overlapping Governments ...................................... 140
Assessed Value of Taxable Property ........................................................................ 142
Principal Property Taxpayers ................................................................................... 143
Property Tax Levies and Collections ........................................................................ 144
Ratios of Outstanding Debt by Type ........................................................................ 145
Ratios of General Bonded Debt Outstanding ............................................................ 146
Legal Debt Margin Information ............................................................................... 148
Direct and Overlapping Governmental Activities Debt ............................................. 150
Demographic and Economic Statistics ..................................................................... 151
Principal Employers ............................................................................................... 152
Full-Time Equivalent City Government Employees by Function ............................... 153
Operating Indicators by Function ............................................................................. 154
Capital Asset Statistics by Function ......................................................................... 156
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INTRODUCTORY SECTION
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Incorporated October 22, 1956
CITY OF SARATOGA
13777 FRUITVALE AVENUE • SARATOGA, CALIFORNIA 95070 • (408) 868-1200
COUNCIL MEMBERS:
Belal Aftab
Chuck Page
Kookie Fitzsimmons
Tina Walia
Yan Zhao
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December 04, 2024
To the Residents of Saratoga, Honorable Mayor, Vice Mayor, and members of the City Council
We are pleased to present the Annual Comprehensive Financial Report (ACFR) for the City of Saratoga for the
fiscal year ended June 30, 2024. This transmittal letter provides an overview of the City’s finances, services,
achievements and economic prospects for readers without a technical background in accounting or finance.
Readers desiring a more detailed discussion of the City’s financial results may refer to the Management's
Discussion and Analysis in the Financial Section.
The ACFR is submitted in accordance with mandated statutes that require the City to 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 of Saratoga 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, 2024, 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). In addition, this
Letter of Transmittal is provided as a complement to the MD&A and should be read in conjunction with the
MD&A.
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
30,567 as of January 1, 2023 (a decrease of 191 people from January 1, 2022), 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-year terms. The Mayor is selected annually by the City Council. The City Council is
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responsible for, among other things, passing ordinances, adopting the budget, appointing members to the
City’s seven advisory commissions and hiring the City Manager and City Attorney. The City Manager is
responsible for implementing the policies and ordinances of the City Council 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. Some City operations are supplemented
with service contracts including law enforcement, traffic engineering services, infrastructure maintenance, and
legal services. Several typical city services are delivered through other agencies such as fire protection,
sanitary sewer, solid waste and recycling, and water service.
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 Planning
Commission, Heritage Preservation Commission, Library and Public Art Commission, Parks and Recreation
Commission, Traffic Safety Commission, and Youth Commission.
The financial reporting entity (the City) includes all the fund activity of the primary government and all
component units. Component units are legally separate 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 renowned as an appealing residence in Silicon
Valley, known for its top-rated schools, picturesque foothill
neighborhoods, and close proximity to the technology industry.
Primarily residential, the City has minimal commercial or
industrial activity within its boundaries. In the immediate
future, the City's economic forecast is secure, supported by
robust local personal income, steady growth in property values,
and consistent revenues from sales tax, development fees, and
permits.
Property Tax
Property Tax stands as the City’s primary revenue source, making up about 70% of General Fund revenues.
Over the past decade, there has been a consistent uptrend in property tax revenue. Comprising various
property tax assessments, most categories are anticipated to remain stable in the upcoming fiscal year, with
the 2024-25 budget incorporating a 5% increase in base property tax. However, Transfer Taxes are
expected to remain relatively flat due to limited properties for sale, and no growth is projected for Excess
Educational Revenue Augmentation Fund (ERAF) receipts.
Franchise and Encroachment Fees
Franchise and Encroachment Fees are paid by utility services including gas, electricity, water, cable, and solid
waste for the right to conduct business within the City of Saratoga, and use the public right-of-way. The fees are
determined by easement formulas or a percentage of service costs and are a pass-through fee on the utility billings.
Utilities collect the fees from customers and subsequently remit the payments to the City. Generally, these services
are considered necessities in an urban setting, leading to minimal fluctuations in the revenue stream year-over-
year.
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Sales Tax
Saratoga, predominantly residential with limited retail, generates modest Sales Tax revenue compared to
similar-sized cities. In an average year, the City garners around $1.3 million, primarily from restaurants,
grocery/drug stores, and gas stations. Sales tax revenues have rebounded, fully recovering from pandemic-
related lows, however projected sales tax growth is flat given recent trends.
Development Fees
Development Fee revenue encompasses charges for planning reviews, applications, building plan reviews,
engineering assessments, inspections, and associated permits and costs. These regulatory services ensure legal
compliance and community health and safety. While the entire community benefits from regulatory oversight, the
service requester, initiating development changes, bears the primary cost burden. In fiscal year 2022-23, the City
Council approved a user fee study and comprehensive cost allocation plan. The study informed updated fees
effective July 1, 2023, and again in January 2024, aligning with Council's subsidy targets for all services.
American Rescue Plan Act’s State and Local Fiscal Recovery Fund (ARPA SLFRF)
Fiscal year 2021-22 recorded the second half of the ARPA SLFRF allocation to Saratoga totaling $7.2 million
over two years. City Council approved a comprehensive clean water program that meets the objectives of the
ARPA legislation while addressing needed infrastructure improvements across the City’s stormwater system.
The most notable project approved will reduce runoff from the parking plazas in Saratoga Village thereby
reducing runoff of surface contaminants into the watershed. ARPA funds need to be fully committed to
contracts and projects by December 2024, and fully expended by December 2026.
External Factors Impacting Saratoga’s Financial Outlook
External factors may influence Saratoga's future financial outlook despite its current stability. Ongoing high
inflation, elevated interest rates, potential threats to local revenue sources, and the repercussions of extreme
weather events pose potential risks to the City's financial position. Rigorous monitoring of these external
factors allows for early risk identification and strategic planning to mitigate potential impacts on the City's
financial landscape.
Public Safety contract services. The City contracts with the Santa Clara County Sheriff’s Office for
public safety services and the City of San Jose for animal control services. These contracts combined
represent a significant portion of the general fund expenditures. As service organizations, both agencies
will experience similar inflationary pressures on employee salaries and benefits as the City. Both the
animal control and public safety services contracts were renewed in July 2024 and set to expire June 30,
2026.
Employee salaries. The 2024-25 budget includes increases in employee salaries and benefits as outlined
in the current labor agreements. The agreements include a 5.6% cost-of-living increase in 2023-24 and
a 2.39% increase in 2024-25 as part of a negotiated 2-year contract which increased personnel costs.
The impact of inflation on City personnel costs beginning with the 2025-26 budget and beyond is subject
to negotiations that commence in January 2025.
CalPERS pension costs. Inflation has also sparked concerns about an economic downturn and is widely
credited with significant stock market losses in recent months, most notably in the technology sector. If
the recent stock market performance flattens at the current level or worsens, the City’s unfunded pension
liability costs could increase in future years.
Property and Liability Insurance Premiums. The frequency and severity of natural disaster-related
insurance claims in California and across the nation have impacted the cost of maintaining property and
liability insurance. The City has experienced significant increases in premiums over the past several
years. The rapid escalation of premium costs are projected to continue in the near future.
Cost of goods and services. The high inflation environment in fiscal year 2022-23 increased the cost of
bids for public works projects and various contract services have surged at unprecedented rates
compared to previous years. Faced with mounting costs, forthcoming decisions will necessitate an
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evaluation of whether to uphold current service levels at the increased cost or contemplate potential
service reductions to ensure the maintenance of balanced budgets.
Revenue Loss Threats. In 2004, the State permanently reduced the vehicle license fee (VLF) from 2 to
0.65 percent, which reduced funding for cities and counties by approximately $4.4 billion (in 2004
dollars.) To mitigate this impact, the State agreed to backfill the lost VLF revenues dollar-for-dollar by
allocating more property tax revenues to cities and counties. The State Department of Finance has added
language to the State’s 2024-25 budget that threatened the VLF backfill for those agencies that receive
more Educational Revenue Augmentation Fund (ERAF) dollars than required to fund schools up to their
minimum state funding levels (“Excess ERAF”). Fortunately, the State’s budget item was not approved,
however recent court challenges to the Excess ERAF formula continue to threaten the future growth of
this revenue source.
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.
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 except for the Capital Improvement Projects, which
are multiple-year projects. Occasionally at year-end departments review their respective outstanding
encumbrances of a material nature, and if deemed critical, a recommendation is made to the City Council to
approve by Resolution the re-appropriation of these funds into the following year’s budget.
2023-24 Major Accomplishments
Electronic Plan and Permit Processing: Saratoga continues to refine and promote online services
using web-based planning and building division submittals. In 2023-24, the City began to implement a
new online rooftop solar permitting program. In 2023-24 the Camino portal was discontinued. Plans
for other on-going software implementations will take place in the future.
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Reimagining Facility Rentals: The City entered into a strategic partnership with Los Gatos-Saratoga
Community Health and Recreation (LGS-Rec) to assume management and administration of City
facility and park rentals beginning October 1, 2023. City staff assisted in facilitating the transition to
LGS-Rec for existing customers that regularly use the facility. The transition results in structural
savings of approximately $0.14 million per year.
Pavement Management Program: City Council expanded funding for the Pavement Management
Program CIP allocating $1.337 million from the General Fund’s Capital Reserve to ensure Saratoga
roadways are resurfaced and maintained as needed.
Business System Improvements: The City’s business systems continue to evolve where services are
provided with greater reliance on paperless and electronic systems. The City continues to manage
immediate and long-term business system improvements through a combination of administrative
policy updates, optimization of existing technologies, and training on new systems. Improvements
include implementation of a budgeting and forecasting database and a financial system upgrade.
2024-25 Major Initiatives
ARPA Capital Improvement Plan Projects: Public Works continues to make progress on CIP
projects funded by the American Rescue Plan Act’s (ARPA) $7.2 million allocation to Saratoga;
project descriptions and details begin on page 243. With $5.2 million of funding unspent, the
Saratoga Village Water Quality Improvement project is the largest of these projects, and makes
significant stormwater management improvements to runoff from the Village parking districts into
Saratoga Creek and advances Clean Water initiatives. Other smaller projects will also serve to
improve stormwater runoff and fulfill state mandates. ARPA projects are a key area of focus, as the
projects need to have funds fully committed by December 2024, and expended by December 2026.
Pavement Management Program: City Council expanded funding for the Pavement Management
Program CIP allocating $1.0 million from the General Fund’s Capital Reserve to ensure Saratoga
roadways are resurfaced and maintained as needed.
Online Applications & Permit Processing: Saratoga continues to refine and promote online
services. In 2024-25 CDD will upgrade the TRAKiT online portal which will provide a cloud-based
Planning and Building Division application, review and permitting system. This upgraded version of
eTRAKiT is designed to improve customer service and staff efficiency. Furthermore, the Building
Division will be implementing Symbium, an online solar permitting platform that ultimately helps
customers to obtain self-issued, photovoltaic (PV) permits.
Tree Inventory: In 2024-25 the City will work to develop a Tree Inventory that would include a
comprehensive catalogue of street and public property trees, implementing a web-based tree
management software system for efficient data management, and formulating a multi-year integrated
urban forest maintenance plan. This would help the City be more efficient in its approach to tree
maintenance and mitigation of potential risks from trees. It will also allow for better budget planning
across multiple years to address the mitigation and maintenance work identified in the inventory.
Business System Improvements: The City’s business systems continue to evolve where services
are provided with greater reliance on paperless and electronic systems. Improvements include
implementation of a budgeting and forecasting database, increased use of DocuSign to streamline
electronic signatures, and the continued movement to cloud-based applications for increased
functionality and accessibility.
Speed Survey: The City Traffic Engineer, Fehr and Peers, will conduct a new Speed Survey. The
data collected from a speed survey is used to engineer the safe and efficient flow of traffic across the
City.
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Distinguished Budget Award & Certificate of Achievement for Excellence in Financial Reporting: In 2023,
the Government Finance Officers Association awarded the City of Saratoga the Distinguished Budget Award
for the seventeenth year in a row, and the Certificate of Achievement for Excellence in Financial Reporting
for the twenty-ninth year in a row. These significant awards represent the City’s thoughtful budget
development to enhance the quality of life in the community while ensuring financial transparency and
stability in present and future years.
INDEPENDENT AUDIT
The City engaged Moss, Levy and Hartzheim, 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 ACFR for the fiscal year ended June
30, 2023 The award acknowledged the City published an easily readable and efficiently organized financial
report. This report satisfied both generally accepted accounting principles and applicable legal requirements.
ACKNOWLEDGEMENTS
The successful completion of the ACFR represents a full fiscal year of dedication and commitment from the
entire city organization with Administrative Services taking the primary lead in managing the City’s resources.
We thank Moss, Levy and Hartzheim for their diligent work completing the annual independent audit. In addition,
we acknowledge 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,
Matt Morley Ryan Hinchman
Matt Morley Ryan Hinchman
City Manager Administrative Services Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Saratoga
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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ANNUAL COMPREHENSIVE FINANCIAL REPRT
FISCAL YEAR ENDED JUNE 30, 2024
CITY COUNCIL
Yan Zhao, Mayor
Belal Aftab, Vice Mayor
Chuck Page
Kookie Fitzsimmons
Tina Walia
APPOINTED OFFICIALS
Matt Morley, City Manager
Richard Taylor, City Attorney
EXECUTIVE TEAM
Bryan Swanson, Community Development Director
John Cherbone, Public Works Director
Leslie Arroyo, Assistant City Manager
Ryan Hinchman, Administrative Services Director
ACFR PREPARATION TEAM
Ryan Hinchman, Administrative Services Director
Ann Xu, Finance Manager
Evangeline Villarico, Accountant I
Gina Scott, Administrative Analyst
Julie Ingraham, Accounting Technician
Isela Reyes, Accounting Technician
Vivian Lu, Senior Accounting Technician
Moss, Levy and Hartzheim LLP
CONTACT INFORMATION
City of Saratoga · Administrative Services Director
13777 Fruitvale Avenue · Saratoga, California 95070 · www.saratoga.ca.us
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Administrative
Services Department
Programs
Administrative Services
Finance
Human Resources
Information Technology
IT Equipment/
Replacement
Office Support
Non-Departmental
Risk Management
Workers Compensation
City Manager &
Community Services
Departments
Programs
City Manager’s Office
City Clerk’s Office
Public Information Office
Public Safety/
Emergency
Preparedness
Recreation
Facility Rentals
Community Engagement
City Funded Events
Community Events
Grants
Community Support
Services
Community
Development
Department
Programs
Development Services
Advanced Planning
Code Compliance
Building Inspection
Facility Maintenance
Furniture, Fixtures, &
Equipment
Public Works
Department
Programs
General Engineering
Development
Engineering
Environmental Services
Streets & Storm Drains
Parks & Landscape
Maintenance
Vehicle & Equipment
Maintenance
Lighting & Landscape
Districts
Capital Improvement
Program
CITY OF SARATOGA ORGANIZATIONAL CHART
Residents of Saratoga
2023 Estimated Population 30,567
City Council
Yan Zhao, Mayor
Belal Aftab, Vice Mayor
Chuck Page
Kookie Fitzsimmons
Tina Walia
City Council
Appointed
Commissions &
Committees
City Manager
Matt Morley
City-wide Totals*
$36.99 million Operating Budget
$13.98 million Capital Budget
56.5 FTEs**
City Attorney
Richard Taylor
Shute, Mihaley &
Weinberger LLP
The City's organizational structure serves as the foundation for translating its mission and strategic goals into
actionable plans and tangible results. By providing a clear framework for operations, decision-making, and
resource allocation, the structure enables the City to effectively pursue its mission and serve its residents.
*2023-24 Adopted budget
**FTE = full time equivalent personnel; 2080 hours per year per 1.0 FTE
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FINANCIAL SECTION
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PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES
CRAIG A HARTZHEIM, CPA 8383 WILSHIRE BLVD., SUITE 800 5800 HANNUM AVE., SUITE E
HADLEY Y HUI, CPA BEVERLY HILLS, CA 90211 CULVER CITY, CA 90230
ALEXANDER C HOM, CPA TEL: 310.670.2745 TEL: 310.670.2745
ADAM V GUISE, CPA FAX: 310.670.1689 FAX: 310.670.1689
TRAVIS J HOLE, CPA www.mlhcpas.com www.mlhcpas.com
WILSON LAM, CPA
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OFFICES: BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members
of the City Council of the City of Saratoga
California
Opinions
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 fiscal year ended June
30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
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, as of June 30, 2024, and the respective changes in financial position for the fiscal year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and those standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material
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if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by
a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis, the budgetary comparison information for the General and major Special Revenue funds, Schedule
of the City’s Proportionate Share of the Net Pension Liability, and Schedule of Pension Plan Contributions be
presented to supplement the basic financial statements. Such information is the responsibility of management and,
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 basic financial statements. The combining and individual nonmajor governmental fund financial
statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the combining and individual nonmajor governmental fund financial
statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory and statistical sections but does not include the basic financial statements and our auditor’s report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express
an opinion or any form of assurance thereon.
21
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 15, 2024, 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.
Moss, Levy & Hartzheim, LLP
Culver City, California
November 15, 2024
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
22
INTRODUCTION
The Management’s Discussion and Analysis (MD&A) is a required section of the City’s Annual
Comprehensive Financial Report (ACFR), 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, 2024. 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 2023-24 FINANCIAL HIGHLIGHTS
The City's total net position as of June 30, 2024, was $151.08 million, calculated as total assets and
deferred outflows of $179.97 million, minus total liabilities and deferred inflows of $28.89 million.
This total net position increased by $5.25 million from the previous fiscal year, primarily because of
higher revenues in charges for services and property tax.
Net Position comprised of $117.04 million investment in capital assets net of depreciation and related
debt, $10.46 million restricted for specific purposes, and $23.57 million in Unrestricted Net Position.
Total city-wide revenues of $39.20 million included $29.12 million in general revenues (mainly from
property tax) and $10.08 million in program revenues (primarily from charges for services).
City expenses totaled $33.95 million, with the majority of the expenses related to Public Works ($12.30
million), and General Government Services ($9.59 million).
The Governmental Funds fund balances totaled $36.72 million
$18.04 million in the General Fund which is the City’s primary operating fund
$5.29 million in the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery
Funds (SLFRF) fund
$7.28 million in the Capital Improvement Funds
$6.10 million in Other Governmental Funds
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 FISCAL YEAR ENDED JUNE 30, 2024
23
This represents an increase of $5.77 million from the prior fiscal year, mainly due to increased revenues. It
should be noted that the ARPA funds will be expended in future years, which will reduce the total fund
balance.
General Fund revenues totaled $32.62 million and expenditures of $26.99 million. $3.51 million of
general funds were transferred to capital, primarily to fund the Pavement Management Program (PMP)
and priority capital projects. The net result was a $2.88 million increase in General Fund balance.
The City's Net Pension Liability increased by $1.32 million to $11.31 million this fiscal year. This
change reflects CalPERS' latest actuarial valuation, which incorporates investment returns, updated
assumptions, and overall plan experience as of June 30, 2023. To mitigate future costs, the City makes
additional pension payments to reduce this liability. For detailed information, refer to Note 8 in the
Notes to Basic Financial Statements.
In compliance with GASB Statement No. 75, Other Post-Employment Benefits (OPEB) are now
reported as a liability in our financial statements. To ensure comparability, we've included a prior period
adjustment for fiscal year 2022-23. For comprehensive information on OPEB, please refer to Note 13.
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 with two different
perspectives of the City's financial activities and financial position.
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.
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, 2024.
Government-Wide Financial Statements
Long-term view, including capital assets and long-term
liabilities similar to corporate financial statements.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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.
•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 fiscal 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.
Governmental 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.
Proprietary 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. The City reports two fiduciary funds: The West Valley Clean Water
Program and the 2018 Arrowhead Community Facilities District (CFD) Bond. Additional
information regarding these funds can be found in Note 1 of the financial statements.
Fiduciary Funds
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.
Fund Financial Statements
Near-term view, measuring current revenues,
expenditures, and fund balances.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
25
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements. The notes can be found immediately
following the fund financial statements.
REQUIRED SUPPLEMENTARY INFORMATION
Required supplementary information, other than presented in this MD&A, follows the Notes Section and
includes a budgetary comparison for the General Fund as presented in the Governmental Fund Financial
Statements, Schedules of the City’s Proportionate share of Net Pension Liability and Pension Contributions,
Changes in OPEB and OPEB Contributions, 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.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
26
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 $5,246,005 in Fiscal Year 2023-24. The primary reason for the increase in net position was due to
increases in revenue previously mentioned. The most significant portion of the City's Net Position
($117,042,752 or 77%) accounts for its investment in capital assets, (e.g., land, buildings, general government
infrastructure, equipment, etc.) less depreciation and any related debt used to acquire those assets that are still
outstanding. These capital assets represent infrastructure which provides services to the community and are not
available for future spending. Of the City’s Total Net Position, $10,464,369 or 7% is subject to external
restrictions on how the funding may be used. The remaining balance of $23,572,183, or 16% of the City's Net
Position, is unrestricted and may be used to meet the City's ongoing obligations to the community and creditors.
Table 1 – Net Position
Governmental Activities
2024 2023 Change
Assets
Current assets 48,911,933$ 44,391,010$ 4,520,923$
Leases receivable (GASB No.87)584,689 643,537 (58,848)
Capital assets, net 122,992,894 123,530,396 (537,502)
Total Assets 172,489,516 168,564,943 3,924,573
Deferred Outflow of Resources
OPEB related 95,341 95,341
Pension related 7,384,207 7,204,712 179,495
Total Deferred Outflow of Resources 7,479,548 7,204,712 274,836
Liabilities
Current liabilities 6,483,628 8,069,495 (1,585,867)
Long-term liabilities 20,224,088 17,509,273 2,714,815
Total Liabilities 26,707,716 25,578,768 1,128,948
Deferred Inflow of Resources
OPEB related 314,587 314,587
Pension related 1,308,783 1,418,107 (109,324)
Lease related 558,674 629,523 (70,849)
Total Deferred Inflow of Resources 2,182,044 2,047,630 134,414
Net Position
Net investment in capital assets 117,042,752 116,948,362 94,390
Restricted for special assessment funds 1,144,606 1,001,132 143,474
Restricted for public works programs 6,880,593 6,674,320 206,273
Restricted for debt service 1,013,048 910,655 102,393
Restricted for community services 1,426,122 1,101,842 324,280
Unrestricted 23,572,183 21,506,946 2,065,237
Total Net Position 151,079,304$ 148,143,257$ 2,936,047$
Prior Period Adjustments (2,309,958) 2,309,958
Net Position (restated)151,079,304$ 145,833,299$ 5,246,005$
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
27
As shown in the below summary of the Statement of Activities table, program revenues increased by
$2,650,577 from the prior fiscal year for governmental activities, and general revenues increased by
$1,711,832 from the prior year. This resulted in a total increase in revenues of $4,362,409. Total Expenses
decreased by $5,188,774 from the prior year primarily due to pension expense adjustments and changes in
capital activity in Public Works.
Table 2 – Statement of Activities
With total program and general revenues for Fiscal Year 2023-24 at $39,198,608 and total expenses at
$33,982,603, the net activity resulted in an increase in Net Position of $5,246,005.
Governmental Activities Increase
Functions/Programs 2024 2023 (Decrease)
Program Revenues
Charges for services 6,242,245$ 4,040,397$ 2,201,848$
Operating grants and contributions 2,439,200 3,178,578 (739,378)
Capital grants and contributions 1,396,828 208,721 1,188,107
Total Program Revenues 10,078,273 7,427,696 2,650,577
General Revenues
Property taxes 19,078,883 17,694,182 1,384,701
Sales taxes 1,253,649 1,381,033 (127,384)
Local taxes 2,382,640 1,588,632 794,008
Other taxes 2,642,686 3,442,530 (799,844)
Intergovernmental revenues 1,603,125 2,182,837 (579,712)
Investment earnings 2,089,856 696,483 1,393,373
Other revenues 69,496 422,806 (353,310)
Total General Revenues 29,120,335 27,408,503 1,711,832
Expens es
General and intergovernmental services 9,592,994 8,922,161 670,833
Public safety 8,199,549 7,744,567 454,982
Public works 12,297,863 16,597,611 (4,299,748)
Community services 835,927 1,501,159 (665,232)
Community development services 2,851,321 4,127,596 (1,276,275)
Interest on long-term debt (unallocated)174,949 248,283 (73,334)
Total Expenses 33,952,603 39,141,377 (5,188,774)
Increase / (Decrease) in Net Position 5,246,005 (4,305,178) 9,551,183
Net Position, Beginning of Year 145,833,299 152,448,435 (6,615,136)
Net Position, End of Year 151,079,304$ 148,143,257$ 2,936,047$
Prior Period Adjustments (2,309,958) 2,309,958
Net Position - Beginning of Fiscal Year (restated)151,079,304$ 145,833,299$ 5,246,005$
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
28
Revenues
Revenues in 20234-24 totaled $39,198,608 and comprised primarily of Property Taxes and Charges for
Services.
Charges for services
$6,242,245 16%
Operating grants
and contributions
2,439,200 6%
Capital grants and
contributions
1,396,828 4%
Property taxes
19,078,883 49%
Sales taxes
1,253,649 3%
Local taxes
2,382,640 6%
Other taxes
2,642,686 7%
Intergovernmental
revenues 1,603,125
4%
Investment earnings
2,089,856 5%
Other revenues
69,496 0%
2023-24 Revenues by Category
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
FY 2023/24 FY 2022/23
Total Revenues by Category Compared to Prior Fiscal Year
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
29
General Revenues increased by $1,711,832 from the prior fiscal year. The most significant changes
include:
Property Taxes - revenue increased $1,384,701 over the prior fiscal 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.
Investment Earnings - increased by $1,393,373, attributed to an increase in both LAIF interest rate
and CalTRUST interest rate. In fiscal year 2023-24, the City Council authorized investing in Joint
Powers Authority investment pools to increase investment opportunities and gain exposure to different
asset classes.
Capital Grants and Contributions – increased by $1,188,107 because of increased grant activity in
Public Works and Community Development.
Program Revenues increased by $2,650,577 from the prior fiscal year. The most significant changes
include:
Charges for Services - increased by $2,201,848 from the prior fiscal year due to increased building
activity and higher user fees from the City Council adopted comprehensive fee study .The higher
revenue is a result of increased planning and building fees that were implemented 7/1/2023, and updated
again on 1/1/2024
Expenses
Expenses in 2023-24 totaled $33,952,603 and comprised primarily of costs related to Public Works,
General and Intergovernmental Services, and Public Safety. Total expenses include the Net Pension
Liability (NPL) adjustment of $1,034,006 shown in Table 3.
General
services
9,592,994
28%
Public safety
8,199,549
24%
Public works
12,297,863
36%
Community
services
835,927 2%
Community
development
2,851,321 9%
Interest on
debt 174,949
1%
2023-24 Expenses by Category
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
30
Fiscal year 2023-24 expenses decreased by $5,188,774 compared to the prior fiscal year, primarily due to
fluctuations in capital outlay activity.
General and Intergovernmental – increased by $670,833 primarily because of increased general
liability insurance premium costs.
Public Safety – increased by $454,982 as a result of Sheriff contract increases.
Public Works - decreased by $4,299,748 due to capital outlay activity, primarily in PMP. Capital costs
often fluctuate year-over-year, and increased capital costs are expected in 2024-25.
Community Services - decreased by $0.67 million due to outsourcing Facility Rentals.
Community Development - decreased by $1.28 million primarily due to lower contract services costs.
Compared to the prior fiscal year, the GASB Statement No. 68 pension expense adjustment decreased
expenses by $2,918,127. This adjustment is broken down as follows:
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
FY 2023/24 FY 2022/23
Total Expenses by Category Compared to Prior Fiscal Year
Increase
2024 2023 (Decrease)
General and intergovernmental services 406,524$ 1,257,915$ (851,391)$
Public works 417,722 1,535,104 (1,117,382)
Community services 15,420 143,670 (128,250)
Community development services 194,340 1,015,444 (821,104)
Total Adjustment 1,034,006$ 3,952,133$ (2,918,127)$
Table 3 - Pension Expense Adjustment by Program
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
31
MAJOR AND OTHER GOVERNMENTAL FUNDS: CHANGE IN FUND BALANCE
A summary of the changes in fund balance of the Major Funds and Other Governmental Funds is presented
below:
The General Fund, ARPA/SLFRF fund and Capital Improvement Funds are listed as Major Funds in fiscal
year 2023-24. The Other Governmental Funds category includes thirty-four 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 $5,771,048.
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 $2,881,366. General Fund revenue budgets are conservatively based upon prior fiscal year
experience and revenue specific information. Strong interest revenue and the full year receipt of the Solid
Waste encroachment revenue, previously believed to be at risk with the Zolly vs. Oakland case, resulted in
the increased fund balance.
ARPA SLFRF Fund
The ARPA SLFRF fund records the City’s allocation from the ARPA SLFRF and has a net decrease of
$1,182,650 due to continued spending on capital projects. The revenue is a grant under the US Department
of Treasury’s lost revenue allowance under the SLFRF final rules. The City subsequently allocated the full
ARPA SLFRF allocation to clean water capital improvement programs consistent with the goals and
objectives of the ARPA legislation. The fund balance will continue to decline in future years, with all funds
mandated to be fully expended by December 31, 2026.
Capital Improvement Project Fund
The net increase of $957,037 in the Capital Improvement Funds occurred due to General Fund transfers to
fund capital improvements, partially offset by current fiscal year capital expenditures. The increased fund
balance is expected to decline next fiscal year as the City continues to work on existing capital projects.
Other Governmental Funds
Other Governmental Funds’ fund balances increased by a total of $3,115,295 as special assessments
exceeded public works expenditures and debt service costs in fiscal year 2023-24.
Other
ARPA Capital Governmental
General SLFRF Improvement Funds
Total Revenues 32,615,291$ -$ 1,468,965$ 5,284,447$
Total Expenditures 26,991,733 1,182,650 3,434,291 1,988,981
Revenues Over
(Under) Expenditures 5,623,558 (1,182,650) (1,965,326) 3,295,466
Transfers in 765,684 - 3,565,271 1,070,299
Transfers out (3,507,876) - (642,908) (1,250,470)
Net change in fund balances 2,881,366 (1,182,650) 957,037 3,115,295
Beginning of fiscal year 15,162,804 6,473,436 6,324,226 2,985,105
End of fiscal year 18,044,170$ 5,290,786$ 7,281,263$ 6,100,400$
Major Funds
Table 4 - Changes in Fund Balances
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
32
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’s adopted and final revenue budgets are shown in the schedule below:
Table 5 - Adopted to Final Budget
Fiscal Year Ended June 30, 2024
General Fund Revenues and Transfers In
+ =
Adopted Budget Final
Budget Adjustments Budget
Revenues $ 28,273,852 $ - $ 28,273,852
There were no budget adjustments to revenue in fiscal year 2023-24.
Expenses and Transfers Out
The original and final General Fund expense budget is shown in the schedule below:
Table 6 - Adopted to Final Budget
Fiscal Year Ended June 30, 2024
General Fund Expenditures & Transfers Out
+ =
Adopted Budget Final
Budget Adjustments Budget
Expenses & Transfer
Out $ 31,507,539 $ 407,876 $ 31,915,415
During the fiscal year, the original budget was increased to fund the General Plan Update and various cost
increases in updated contracts, dues, and services.
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
33
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 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 a
minimum. In the most recent assessment in 2022, the City’s overall PCI was calculated to be 69. While the
City Council continues to review infrastructure investment strategies, the City continues to make significant
investments into City streets in order to bring the average PCI rating up to the target of 70.
According to the City’s most recent assessment, an annual PMP project of $4.4 million would maintain the
measured PCI of 69, and a project of $8 million increases the PCI by 5 points over 5 years. For more
detailed information on Capital Assets activity, please refer to Note 5 and required supplementary
information on pages 96 and 87.
As reflected in the following schedule, the City has $122,992,894 invested in a variety of capital assets as
of June 30, 2024. This represents a decrease of $537,500 from the prior fiscal year primarily from
deprecation.
2024 2023
Land 20,173,790$ 20,173,790$
Building and structures 13,006,388 13,145,762
Machinery and equipment 550,789 698,653
Infrastructure 77,354,900 78,746,689
Construction in progress 11,907,027 10,765,502
Total Capital Assets, Net of Depreciation 122,992,894$ 123,530,396$
Table 7 - Capital Assets Net of Depreciation
Governmental Activities
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
34
The following reconciliation summarizes the changes in Capital Assets.
Major capital projects in progress during fiscal year 2023-24 included the following expenditures:
Blacksmith Shop Building Improvement - $500,000
Community Center Improvement - $164,311
Additional information on Capital Assets is included in Note 5 of the financial statements.
Balance Balance
June 30, 2023 Additions Retirements Reclassification June 30, 2024
Land 20,173,790$ -$ -$ -$ 20,173,790$
Building and structures 27,751,278 - - 664,311 28,415,589
Machinery and equipment 4,501,936 98,394 - - 4,600,330
Infrastructure 113,791,076 - - - 113,791,076
Construction in progress 10,765,502 1,875,598 (69,762) (664,311) 11,907,027
Depreciation (53,453,187) (2,441,731) - - (55,894,918)
Total Capital Assets,
Net of Depreciation 123,530,395$ (467,739)$ (69,762)$ -$ 122,992,894$
Table 8 - Changes in Capital Assets
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
35
DEBT AND OTHER LONG-TERM OBLIGATION ADMINISTRATION
The net change in outstanding obligations for the City of Saratoga was a decrease of $698,722. Total long-
term bonded debt, including premiums, decreased by $631,892. Outstanding compensated absences
decreased by $66,830.
Table 9 - Outstanding Long-Term Obligations
The current portion of long-term debt ($630,000 for the refunded 2011 General Obligation Bonds for fiscal
year 2023-24) 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 in the amount of $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 $610,000 and interest of $234,385 were
paid during the fiscal year.
Compensated Absences
Compensated absences are accrued liabilities for vested and unpaid vacation and sick pay. The
compensated absences balance decreased during the fiscal year by $66,830 due to an increase in use of paid
time-off. An estimated current liability of $664,754 is anticipated for the next fiscal year. Additional
information on outstanding obligations can be found in Note 6 of the financial statements.
Net Pension Liability
Net pension liability is the City’s proportionate share of the pension liability pool less the city's
proportionate share of the fiduciary net position. This may be a net pension asset when the Plan's fiduciary
net position exceeds its total pension liability. See Note 8 for more information.
OPEB Liability
The City’s OPEB liability refers to the financial obligation that the City must report on their balance sheet
for the future cost of providing "Other Postemployment Benefits" (OPEB), like health insurance, to retired
employees, as mandated by Governmental Accounting Standards Board (GASB) Statement 75. See note
13 for more information.
2024 2023 Change
2011 General obligation bond 5,775,000$ 6,385,000$ (610,000)$
Net original issue premuim 175,142 197,034 (21,892)
Compensated absences 878,080 944,910 (66,830)
Total Outstanding long-term obligations 6,828,222$ 7,526,944$ (698,722)$
Governmental Activities
CITY OF SARATOGA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
36
ECONOMIC FACTORS
The City of Saratoga is primarily a residential community with limited commercial or industrial activity
within its boundaries. Saratoga is considered a desirable place to live due to its highly rated schools,
beautiful neighborhoods, fine dining, and proximity to many technology companies. In 2023-24, Saratoga’s
assessed property values continued to increase, consumer sales tax and hotel tax recovered to their pre-
pandemic highs, and personal income remained resilient. The following discuss the key economic factors
impacting the City’s finances.
Assessed Values - the assessed value of property in Saratoga continues to demonstrate strength.
Through the Great Recession, when many communities experienced assessed value losses,
Saratoga remained positive, providing stability in the City’s largest revenue source. The 2024 Santa
Clara County Assessor’s assessed valuation for the fiscal year 2023-24 reports an increase in
Saratoga’s property values of 5.24 percent, underperforming the countywide valuation increase of
6.65 percent.
Sales and transient occupancy/hotel taxes - unlike many of its neighbors, Saratoga’s
consumption-based tax revenues (sales and hotel taxes) center around experiences such as regional
and State parks, the downtown Village, Hakone Gardens, fine dining, vineyards, and performance
venues. Recent trends indicate that future growth of sales tax is expected to be flat with slowing
consumer spending.
Employment - the City’s unemployment rate is 4.4%, on par with the County’s overall
unemployment (California Employment Development Department, September 2024.) In the latest
U.S. report in October 2024, the UCLA Anderson Forecast foresees a weak economy in 2024,
followed by a return to trend growth rates, albeit below trend gross domestic product (GDP) levels,
in 2025, but no projected recession.
An additional economic indicator of note by Anderson Forecast is the higher interest rates can have various
effects on the housing market in the Bay Area. Changes in interest rates are often linked to broader
economic conditions. In spite of the higher interest rates, the continued demand for a limited housing stock,
coupled with state policies including new homebuilding, should result in the beginning of a recovery this
fiscal year followed by solid growth in new home production thereafter.
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 Director, 13777 Fruitvale Avenue, Saratoga, California 95070.
Governmental
Activities
Assets:
Cash and Investments 47,338,299$
Accounts Receivable 1,150,182
Leases Receivable 584,689
Interest Receivable 423,452
Capital Assets, Not Being Depreciated 85,215,595
Capital Assets, Net of Accumulated Depreciation 37,777,299
Total Assets 172,489,516
Deferred Outflows of Resources:
OPEB Related 95,341
Pension Related 7,384,207
Total Deferred Outflows of Resources 7,479,548
Liabilities:
Accounts Payable 1,639,329
Interest Payable 83,319
Accrued Liabilities 342,249
Deposits Payable 4,295,224
Claims Payable 123,507
Noncurrent Liabilities:
Net Pension Liability Due in More Than One Year 11,305,154
Net OPEB Liability Due in More Than One year 2,090,712
Due Within One Year 1,316,646
Due in More Than One Year 5,511,576
Total Liabilities 26,707,716
Deferred Inflows of Resources:
Lease Related 558,674
OPEB Related 314,587
Pension Related 1,308,783
Total Deferred Inflows of Resources 2,182,044
Net Position:
Net Investment in Capital Assets 117,042,752
Restricted for:
Debt Service 1,013,048
Streets and Roads 6,880,593
Community Services 1,426,122
Assessment Districts 1,144,606
Unrestricted 23,572,183
Total Net Position 151,079,304$
CITY OF SARATOGA
Statement of Net Position
June 30, 2024
The notes to the financial statements are an integral part of this statement.
37
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Net (Expenses)
Revenues and
Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Expenses Services Contributions Contributions Activities
Primary Government:
Governmental Activities:
General Government 9,592,994$ 602,744$ -$ -$ (8,990,250)$
Public Safety 8,199,549 16,562 590,843 (7,592,144)
Community Development 2,851,321 4,636,721 138,189 1,923,589
Public Works 12,297,863 149,730 1,710,168 1,396,828 (9,041,137)
Community Services 835,927 836,488 561
Interest on Long-Term Liabilities 174,949 (174,949)
Total Governmental Activities 33,952,603 6,242,245 2,439,200 1,396,828 (23,874,330)
Total Primary Government 33,952,603$ 6,242,245$ 2,439,200$ 1,396,828$ (23,874,330)
Taxes:
Property Taxes 19,078,883
Sales and Use Taxes 1,253,649
Business License Taxes 517,524
Transient Occupancy Taxes 512,261
Other Taxes 2,642,686
Licenses and Permits 1,352,855
Fines and Forfeitures 49,387
Special Assessments 1,553,738
Investment Earnings 2,089,856
Other Revenue 69,496
Total General Revenues 29,120,335
Change in net position 5,246,005
Net Position - Beginning of Fiscal Year 148,143,257
Prior Period Adjustments (2,309,958)
Net Position - Beginning of Fiscal Year (restated)145,833,299
Net Position - End of Fiscal Year 151,079,304$
General Revenues:
CITY OF SARATOGA
Statement of Activities
For the Fiscal Year Ended June 30, 2024
Program Revenues
Functions
The notes to the financial statements are an integral part of this statement.
39
Special Revenue
General ARPA/SLFRF
Assets:
Cash and Investments 22,295,167$ 5,381,879$
Accounts Receivable 828,474
Lease Receivable 584,689
Interest Receivable 411,112
Total Assets 24,119,442$ 5,381,879$
Liabilities, Deferred Inflows of Resources, and Fund Balances:
Liabilities:
Accounts Payable 921,823$ 91,093$
Accrued Liabilities 299,551
Deposits Payable 4,295,224
Total Liabilities 5,516,598 91,093
Deferred Inflows of Resources::
Unavailable Grant Revenue
Lease related 558,674
Total Deferred Inflows of Resources 558,674
Total Liabilities and Deferred Inflows of Resources 6,075,272 91,093
Fund Balances:
Restricted for:
Debt service
Community services
Streets and roads 5,290,786
District Assessments
Committed 1,000,000
Assigned 7,920,406
Unassigned 9,123,764
Total Fund Balances 18,044,170 5,290,786
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 24,119,442$ 5,381,879$
CITY OF SARATOGA
Balance Sheet
Governmental Funds
June 30, 2024
The notes to the financial statements are an integral part of this statement.
40
Capital Projects
Nonmajor Total
Capital Governmental Governmental
Improvement Funds Funds
7,648,965$ 6,101,402$ 41,427,413$
47,512 264,714 1,140,700
584,689
12,340 423,452
7,696,477$ 6,378,456$ 43,576,254$
415,214$ 155,820$ 1,583,950$
299,551
4,295,224
415,214 155,820 6,178,725
122,236 122,236
558,674
122,236 680,910
415,214 278,056 6,859,635
1,013,048 1,013,048
1,426,122 1,426,122
1,589,807 6,880,593
1,144,606 1,144,606
7,281,263 926,817 9,208,080
7,920,406
9,123,764
7,281,263 6,100,400 36,716,619
7,696,477$ 6,378,456$ 43,576,254$
41
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Total fund balances - governmental funds 36,716,619$
In governmental funds, only current assets are reported. In the statement of net position,
all assets are reported, including capital assets and accumulated depreciation.
Capital assets at historical cost 176,569,298$
Accumulated depreciation (53,859,420) 122,709,878
7,384,207
(1,308,783)
95,341
(314,587)
In governmental funds, certain receivables are not available to pay for current period expenditures
and, therefore, are offset by deferred inflows of resources. 122,236
In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities,
including long-term liabilities, are reported. Long-term liabilities relating to governmental activities
Bonds payable (5,775,000)
Original issue premium (175,142)
Interest payable (83,319)
Net pension liability (11,305,154)
Net OPEB liability (2,090,712)
Compensated absences payable (878,080)
Internal service funds are used by management to charge the costs of certain activities, such as
self-insurance, to individual funds. The assets and liabilities of the internal service fund
must be added to the statement of net position. 5,981,800
Total net position - governmental activities 151,079,304$
CITY OF SARATOGA
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2024
Deferred outflows and inflows of resources relating to pensions and OPEB: In governmental funds, deferred outflows
and inflows of resources relating to pensions and OPEB are not reported because they are applicable to future periods.
In the statement of net position, deferred outflows and inflows of resources relating to pensions and OPEB are
reported.
Deferred outflows related to OPEB
Deferred inflows related to OPEB
Deferred outflows related to pension
Deferred inflows related to pension
The notes to the financial statements are an integral part of this statement.
43
Special Revenue
General ARPA/SLFRF
Revenues
Property Taxes 19,078,883$ -$
Sales and Use Taxes 1,253,649
Business License Taxes 517,524
Transient Occupancy Tax 512,261
Other Taxes 2,587,206
Licenses and Permits 263,644
Fines and Forfeitures 49,387
Interest 2,017,988
Charges for Services 5,647,997
Intergovernmental 617,256
Special Assessments
Other 69,496
Total Revenues 32,615,291
Expenditures
Current:
General Government 8,371,657
Public Safety 8,195,291
Public Works 7,341,701 1,182,650
Community Services 462,696
Community Development 2,620,388
Capital Outlay
Debt Service
Principal
Interest and Fiscal Charges
Total Expenditures 26,991,733 1,182,650
Excess (Deficiency) of Revenues over
(under) Expenditures 5,623,558 (1,182,650)
Other Financing Sources (Uses):
Transfers In 765,684
Transfers Out (3,507,876)
Total Other Financing Sources (Uses)(2,742,192)
Net Change in Fund Balances 2,881,366 (1,182,650)
Fund Balances - June 30, 2023 15,162,804 6,473,436
Fund Balances - June 30, 2024 18,044,170$ 5,290,786$
CITY OF SARATOGA
Statement of Revenues, Expenditures, and Changes in Fund Balance
Governmental Funds
For the Fiscal Year Ended June 30, 2024
The notes to the financial statements are an integral part of this statement.
44
Capital Projects
Nonmajor Total
Capital Governmental Governmental
Improvement Funds Funds
-$ -$ 19,078,883$
1,253,649
517,524
512,261
55,480 2,642,686
1,089,211 1,352,855
49,387
71,868 2,089,856
28,316 565,931 6,242,244
295,958 3,092,910 4,006,124
1,553,738 1,553,738
69,496
1,468,965 5,284,447 39,368,703
8,371,657
8,195,291
1,558,693 926,032 11,009,076
215,776 678,472
2,620,388
1,875,598 1,875,598
610,000 610,000
237,173 237,173
3,434,291 1,988,981 33,597,655
(1,965,326) 3,295,466 5,771,048
3,565,271 1,070,299 5,401,254
(642,908) (1,250,470) (5,401,254)
2,922,363 (180,171)
957,037 3,115,295 5,771,048
6,324,226 2,985,105 30,945,571
7,281,263$ 6,100,400$ 36,716,619$
45
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds 5,771,048$
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those capital assets are allocated over their estimated useful lives
as depreciation expense. This is the amount by which depreciation exceeded capital outlay
in the current period. These amounts do not include activities of the internal service funds.
Capital outlay 1,875,598$
Disposal (69,762)
Depreciation expense (2,309,513) (503,677)
In governmental funds, certain receivables are not available to pay for current period expenditures
and, therefore, are offset by deferred inflows of resources. This is the net change in deferred inflows. (170,095)
Compensated absence expenditures reported in the statement of activities do not require
the use of current financial resources and therefore, are not reported as expenditures
in a governmental fund. This is the net change in compensated absences for the
current period.66,830
(1,034,006)
Accrued interest is interest due on long-term debt payable. This is the net change in accrued interest
for the current period.40,332
Internal service funds are used by management to charge the costs of certain activities,
such as self-insurance, to individual funds. The net revenues (expenses) of the
internal service funds are reported with governmental activities. 443,681
The amounts below, included in the Statement of Activities do not provide or require the use of
current financial resources and, therefore, are not reported as revenue or expenditures
in the governmental funds (net change):
Repayment of bond principal 610,000
Amortization - premium on bond 21,892
Change in net position of governmental activities 5,246,005$
CITY OF SARATOGA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
For the Fiscal Year Ended June 30, 2024
In governmental funds, pension costs are recognized when employer contributions are made. In the
statement of activities, pension costs are recognized on an accrual basis in accordance with GASB
Statement No. 68. This fiscal year, the difference between accrual-basis pension costs and actual employer
contributions was:
The notes to the financial statements are an integral part of this statement.
46
Governmental
Activities
Internal
Service
Funds
Assets
Current Assets:
Cash and Investments 5,910,886$
Accounts Receivable 9,482
Total Current Assets 5,920,368
Noncurrent Assets:
Capital Assets:
Machinery and Equipment 2,318,514
Less:
Accumulated Depreciation (2,035,498)
Total Noncurrent Assets 283,016
Total Assets 6,203,384
Liabilities
Current Liabilities:
Accounts Payable 55,379
Accrued Liabilities 42,698
Claims Payable 123,507
Total Current Liabilities 221,584
Total Liabilities 221,584
Net Position
Net Investment in Capital Assets 283,016
Unrestricted 5,698,784
Total Net Position 5,981,800$
CITY OF SARATOGA
Statement of Net Position
Proprietary Funds
June 30, 2024
The notes to the financial statements are an integral part of this statement.
47
Governmental
Activities
Internal
Service
Funds
Operating Revenues:
Charges for Services 4,413,237$
Other 91,286
Total Operating Revenues 4,504,523
Operating Expenses:
Cost of Services 3,928,624
Depreciation 132,218
Total Operating Expenses 4,060,842
Operating Income 443,681
Change in Net Position 443,681
Net Position - Beginning of Fiscal Year 5,538,119
Net Position - End of Fiscal Year 5,981,800$
CITY OF SARATOGA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2024
The notes to the financial statements are an integral part of this statement.
48
Governmental
Activities
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users 4,504,330$
Cash Payments to Suppliers and Contractors (4,001,304)
Net Cash Provided (Used) By Operating Activities 503,026
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Acquisition of Property, Plant, and Equipment (98,394)
Net Cash Provided (Used) In Capital and Related
Financing Activities (98,394)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 404,632
CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 5,506,254
CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR 5,910,886$
Reconciliation to Statement of Net Position:
Cash and Investments 5,910,886$
5,910,886$
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income 443,681$
Adjustment to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation 132,218
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (193)
Increase (Decrease) in Accounts Payable (63,742)
Increase (Decrease) in Accrued Liabilities (1,099)
Increase (Decrease) in Claims Payable (7,839)
Total Adjustments 59,345
Net Cash Provided By Operating Activities 503,026$
CITY OF SARATOGA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30, 2024
The notes to the financial statements are an integral part of this statement.
49
Custodial
Funds
ASSETS
Cash and investments 750,325$
Cash and investments with fiscal agent 83,551
Interest receivable 6,426
Accounts receivable 1,800
Right to use asset, net of accumulated amortization 76,365
Total Assets 918,467
LIABILITIES
Accounts payable 49,999$
Accrued liabilities 10,050
Long-term debt, due within one year 48,956
Long-term debt, due in more than one year 1,412,861
Total Liabilities 1,521,866
NET POSITION
Held in trust for others (603,399)
Total Net Position (603,399)$
CITY OF SARATOGA
FIDUCIARY FUNDS
STATEMENT OF NET POSITION
June 30, 2024
The notes to the financial statements are an integral part of this statement.
50
Custodial
Funds
Additions:
Assessments 844,852$
Charges for services 320,523
Interest 41,307
Total additions 1,206,682
Deductions:
Community Development 1,048,880
Amortization 20,863
Interest Expense 105,175
Total deductions 1,174,918
Change in net position 31,764
Net Position - July 1, 2023 (635,163)
Net Position - June 30, 2024 (603,399)$
CITY OF SARATOGA
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN NET POSITION
For the Fiscal Year Ended June 30, 2024
The notes to the financial statements are an integral part of this statement.
51
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53
NOTES TO
BASIC FINANCIAL STATEMENTS
54
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CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
55
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. 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 30,667 as of January 1, 2022.
The City operates under a Council-Manager form of government, with five-elected Council
members served by a full-time City Manager and staff. At June 30, 2024, the City's staff was
comprised of 58 full-time or part-time employees, and various 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 office. Emergency management and Fire services are
provided by a special district. Code enforcement and inspection services are provided by
City employees.
Public Works/Maintenance - The City builds and maintains its parks, streets, curbs,
gutters, and related public property with a force of 24 employees. Major projects may be
contracted out to reduce costs.
Community Development - Zoning administration, plan checking, and advance planning
services are provided by 16 employees.
Culture, Recreation, and Community Support services are provided by a total of 3
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 fiscal year-end. The City has no discretely presented component units.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
56
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity (Continued)
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 and
the City is financially responsible for the District and its operations. The activity for the District
has been included in the accompanying basic financial statements and no separate financial
statements are issued.
B.Basis of Presentation
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 regarding 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
Due to/from funds
Interfund services provided and used are not eliminated in the process of consolidation, except for
the internal service fund charges.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
57
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
B.Basis of Presentation (Continued)
Deferred Outflow of Resources and Deferred Inflow of Resources
Deferred outflows of resources represent a consumption of net assets by the City that applies to a
future reporting period.
Deferred inflows of resources represent an acquisition of net assets by the City that applies to a
future reporting period.
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:
The City reports three major governmental funds:
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.
The ARPA/SLFRF Fund is for federal grants from the American Rescue Plan Act
(ARPA), including the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).
The Capital Improvement Capital Projects Fund is 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 fiscal 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 those revenues subject
to accrual (up to 45 days after fiscal 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.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
58
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B.Basis of Presentation (Continued)
Governmental Fund Financial Statements (Continued)
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 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.
The City reports the following additional fund types:
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 and replacement, building
maintenance, equipment replacement, and information technology services and replacement.
Fiduciary Fund Financial Statements
Fiduciary Funds include a Statement of Net Position and a Statement of Changes in Net Position
for Trust Funds. The City's fiduciary funds include Custodial Funds which are accounted for on
the accrual basis of accounting. The following fiduciary activities are not held in a trust or
equivalent arrangement. The City is reporting the following Custodial 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. Its 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.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
59
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B.Basis of Presentation (Continued)
Fiduciary Fund Financial Statements (Continued)
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
its 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.
Arrowhead CFD 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,
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.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
60
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and
Equity
1. 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 fiscal 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 and interest rate risks.
2. Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as "due to/from other funds." Any residual
balances outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as “internal balances”. Advances between
funds, as reported in the fund financial statements, are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation and are not
expendable available financial resources.
For each fiscal year beginning July 1, taxes are levied on taxable real (secured) and personal
(unsecured) property located within the City as of the preceding January 1. Secured property
taxes are payable in two installments on November 1, and February 1 of each fiscal year, and
become delinquent after December 10 and April 10, respectively. Taxes on unsecured property
become delinquent if not paid by August 31. A 10 percent penalty attaches to delinquent taxes,
which have been levied on property on the secured roll. Such property may thereafter be
redeemed by payment of the delinquent taxes and the delinquency penalty, plus a redemption
penalty of 1 ½ percent per month to the time of redemption. If taxes are unpaid for a period of
five years or more, the property is deeded to the State and is subject to sale by the County Tax
Collector.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
61
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and
Equity (Continued)
2. Receivables and Payables (Continued)
GASB issued Statement No. 87 “Leases” 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 asset 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 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 City’s lease receivables are measured at the present value of payments expected to be
received during the lease term. Under the lease agreements, the City receives variable lease
payments as each lease has an annual increase in payment of 3% to 4%.
3. 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.
4. 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 on 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
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
62
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and
Equity (Continued)
4. Capital Assets (Continued)
In accordance with GASB 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
May 31, 2021. This condition assessment was performed in 2023. A Pavement Condition Index
(PCI) was assigned to each street segment. The index is expressed in a continuous scale from 0 to
100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to
segments of street that have the physical characteristics of a new street.
The following conditions were defined:
Condition Rating
Very Good 70-100
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.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
63
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and
Equity (Continued)
5. 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.
6. 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.
7. 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.
8. 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 another financing source. Premiums received on debt issuance are reported
as another financing source while discounts on debt issuance reported as another financing use.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
64
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and
Equity (Continued)
9. 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.
The City maintains four 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:
District Assessments – collectively represents fiscal year-end fund balances of thirty
Landscape & Lighting and Storm Drain zones which use is restricted to the individual
district.
Streets and Roads Programs – represents ARPA lost revenue grants restricted to public
works programs as well as other funds restricted for street and road projects.
Debt Service Fund Balance – represents funding collected for use in the City’s general
obligation bond debt.
Community Services Fund Balance – represents funding collected for various community
services.
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.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
65
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and
Equity (Continued)
9. Fund Balances (Continued)
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
reserve is to be used for funding the construction or to provide for the services of related
debt, but is not yet committed for a specific improvement project.
Carryforward – represents either prior fiscal year funds designated for one-time
operational activities not yet completed by fiscal year-end, or to carryforward prior fiscal
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 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, 2024, 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, 2024, 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. As of June 30, 2024, the Compensated Absences Reserve balance is $330,000.
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.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
66
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and
Equity (Continued)
10. 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 is 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 including enabling legislation.
Unrestricted Net Position – This amount is all net position that does not meet the
definition of "net investment in capital assets" or "restricted net position."
11. 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.
12. 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.
13. 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.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
67
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Deferred Outflow of Resources, Liabilities, Deferred Inflow of Resources, and
Equity (Continued)
14. New GASB Pronouncements
Implementation of New Accounting Pronouncements
GASB Statement No. 99 “Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial
reporting and to improve the consistency of authoritative literature by addressing (1) practice
issues that have been identified during implementation and application of certain GASB
Statements and (2) accounting and financial reporting for financial guarantees. The City did not
report any significant accounting changes from the implementation of this Statement during the
fiscal year ended June 30, 2024.
Upcoming Accounting and Reporting Changes
GASB Statements listed below will be implemented in future financial statements.
The provisions of Statement Number 100 “Accounting Changes and Error Corrections – an
amendment of GASB Statement No. 62” are effective for fiscal years beginning after June 15,
2023.
The provisions of Statement Number 101 “Compensated Absences” are effective for fiscal years
beginning after December 15, 2023.
The provisions of Statement Number 102 “Certain Risk Disclosures” are effective for fiscal years
beginning after June 15, 2024.
The provisions of Statement Number 103 “Financial Reporting Model Improvements” are
effective for fiscal years beginning after June 15, 2025.
15. Deferred outflows/inflows of resources
In addition to assets, the statement of net position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net assets that applies to future periods and so will not be
recognized as an outflow of resources (expense/ expenditure) until then. The City has deferred
outflows from net pension liability and net OPEB asset.
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net assets that applies to future periods and so will not be
recognized as an inflow of resources (revenue) until that time. The City recognizes deferred
inflow and outflows of resources pursuant to GASB Statement No. 68, 71, and 75 regarding
Pension and Other Post-Employment Benefits. The City also recognizes deferred inflow of
resources pursuant to GASB Statement No. 87 regarding leases receivable. The City also
recognizes unavailable revenue, which is reported only in the governmental funds balance sheet.
The governmental funds report unavailable revenues from sources such as: property taxes, grant
revenue, and long-term loan receivables. These amounts are deferred and recognized as an inflow
of resources in the period that the amounts become available.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
68
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, 2024:
The City’s Cash and Investments at June 30, 2024, in more detail:
A.Cash Deposits
The carrying amounts of the City's cash deposits was $4,871,968 at June 30, 2024. Bank balances
before reconciling items were $5,404,916 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 $250,000 by the
Federal Deposit Insurance Corporation (FDIC).
The City follows the practice of pooling cash and investments of all funds, except for funds
required to be held by fiscal agents under the provisions of bond indentures. Interest income from
cash and investments with fiscal agents is credited directly to the related fund.
Primary Fiduciary
Government Activities Total
Cash and investments 47,338,299$ 750,325$ 48,088,624$
Cash and investments with Fiscal Agent 83,551 83,551
Total Cash and Investments 47,338,299$ 833,876$ 48,172,175$
Cash and cash equivalents:
Petty cash 1,379$
Demand deposits 4,871,968
With Fiscal Agent 83,551
Total Cash and Cash Equivalents 4,956,898
Investments:
Local Agency Investment Fund (LAIF)37,617,987
Cal-Trust Investment Pool 5,597,290
Total Cash and Investments 48,172,175$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
69
NOTE 2 – CASH AND INVESTMENTS (Continued)
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.
Local agency bonds and U.S. Treasury obligations.
Bankers Acceptances.
Certificates of Deposit (or Time Deposits) placed with commercial banks and/or savings
and loans companies.
Negotiable Certificates of Deposit.
California Local Agency Investment Fund.
Cal-Trust JPA.
Mutual funds and Money market mutual funds.
Repurchase agreements and medium-term notes.
Investments 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.
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 Statement No. 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.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
70
NOTE 2 – CASH AND INVESTMENTS (Continued)
C.Investments Authorized by the California Government Code and City’s Investment
Policy
The table below identifies the investment types that are authorized for the City of Saratoga (City)
by the California Government Code (or the City’s investment policy, where more restrictive).
The table also identifies certain provisions of the California Government Code (or the City’s
investment policy, where more restrictive) that address interest rate risk, credit risk, and
concentration of credit risk. This table does not address investments of debt proceeds held by
bond trustee that are governed by the provisions of debt agreements of the City rather than the
general provisions of the California government Code or the City’s investment policy.
The investment policy allows for the above investments, which have equal safety and liquidity as
all other allowed investments. Maturity depends on the cash needs of the City.
D.Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt
agreements rather than the general provisions of the California Government Code or the City’s
investment policy. The table below identifies the Investment types that are authorized for
investments held by bond trustee. The table also identifies certain provisions of these debt
agreements that address interest rate risk, credit risk, and concentration of credit risk.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
71
NOTE 2 – CASH AND INVESTMENTS (Continued)
D.Investments Authorized by Debt Agreements (Continued)
E.External Investment Pool
Local Agency Investment Fund
The City's investments with LAIF at June 30, 2024 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 investment policy is listed on the LAIF
website, located at http://www.treasurer.ca.gov/pmia-laif/.
As of June 30, 2024, the City had $37,757,083 invested in LAIF. In accordance with GASB
Statement No. 72, a fair value factor of .996316042 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.
Cal-Trust Investment Pool
The City is a voluntary participant in the Investment Trust of California (Cal-Trust), a public joint
powers authority formed to pool and invest the funds of public agencies. Cal-Trust invests in
fixed income securities eligible for investment pursuant to California Government Code Sections
53601 and 53635. Investment guidelines adopted by the board of Trustees may further restrict the
types of investments that are held by the Trust. Leveraging within the Trust’s portfolios is
prohibited. The fair value of the City’s investment in this pool is reported in the accompanying
financial statements at amounts based upon the Authority’s pro-rata share of the fair value
provided by Cal-Trust for the entire Cal-Trust portfolio (in relation to the amortized cost of that
portfolio).
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
72
NOTE 2 – CASH AND INVESTMENTS (Continued)
F.Disclosures Relating to 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 maturity of an investment, the greater the sensitivity
of its fair value is to changes in market interest rates. One of the ways that an agency manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is
maturing or coming close to maturity evenly over time as necessary to provide the cash flow and
liquidity needed for operations.
The City had the following invested in LAIF and Cal-Trust Investment Pool:
G.Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. The monies held in the Cal-Trust and LAIF investment
pools are not subject to categorization by risk category. It is also not rated as to credit risk by a
nationally recognized statistical rating organization.
H.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 does not have a formal policy
related to custodial credit risk. The City did not hold any securities through investment
counterparties at June 30, 2024.
NOTE 3 – LEASES RECEIVABLE
The City has 2 lease agreements in place as of June 30, 2024. Revenue recognition is in
accordance with GASB Statement No. 87. Summarized information for each lease is as follows:
STC Five LLC
In November 2007, the City entered into a lease with STC Five LLC for use of land for the
operation of cellular towers at Congress Spring Park (APN 289-02-001) in Saratoga, California.
The term was for 5 years and includes three additional optional 5-year terms. If all extensions are
exercised, the lease would end in October of 2031. The options to extend are exercised unless
written notification of cancellation occurs within 60 days prior to the expiration of the existing
term. Initial rent payments were $1,800 a month increasing by 3% annually under the terms of the
lease. Payments received during the fiscal year were $2,888 to $2,975 monthly from July 2023
through June 2024.
Investment
Maturities
Fair Less Than
Value One Year
Local Agency Investment Fund (LAIF)37,617,987$ 37,617,987$
Cal-Trust Investment Pool 5,597,290 5,597,290
Total 43,215,277$ 43,215,277$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
73
NOTE 3 – LEASES RECEIVABLE (CONTINUED)
T-Mobile Cell Tower
In August 2021, the District entered into a lease with T-Mobile West LLC for use of land for the
operation of cellular towers at Congress Spring Park (APN 389-02-001) in Saratoga, California..
The term was for 10 years and includes three additional optional 5-year terms. If all extensions
are exercised the lease would end in November of 2032. The options to extend are exercised
unless written notification of cancellation occurs within 60 days prior to the expiration of the
existing term. Initial rent payments were $1,800 a month increasing by 4% annually under the
terms of the lease. Payments received during the fiscal year were $2,888 to $2,975 monthly from
July 2023 through June 2024.
NOTE 4 – INTERFUND TRANSACTIONS
A.Transfers In/Out
Transfers for the fiscal year ended June 30, 2024 were as follows:
The Capital Improvement Funds received $3,507,876 from the General Fund, as adopted in the
Budget. Out of this sum, $2,846,395 was allocated for street, sidewalk, and storm drain repair,
$375,000 for park and trail improvements, and $343,876 for various administrative projects.
Other transfers between funds were budgeted operating transfers for interfund charges, cost
allocation and other related purposes.
B. Interfund Receivables and Payables
During the course of normal operations, numerous transactions occur between individual funds
that may result in amounts owed between funds. Those related to goods and services type
transactions are classified as “due to and from other funds.” There were no interfund receivable
and payable balances during the fiscal year ended June 30, 2024.
Transfers-out
Major Fund:
General Fund 765,684$ 3,507,876$
Capital Improvement 3,565,271 642,908
Nonmajor Funds:
Tree Fines 25,875
Park In-Lieu Fees 1,070,299 1,070,299
Storm 2023 154,278
Grants CIP 18
Total Transfers 5,401,254$ 5,401,254$
Fund Transfers-in
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
74
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2024 is illustrated in the following table:
Depreciation expense was charged to the following departments:
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.
Balance at Balance at
Governmental activities:June 30, 2023 Additions Deletions Transfers June 30, 2024
Capital assets, not being depreciated:
Land and land improvements 20,173,790$ -$ -$ -$ 20,173,790$
Construction in progress 10,765,502 1,875,598 (69,762) (664,311) 11,907,027
Infrastructure:
Street pavement system 53,134,778 53,134,778
Total capital assets, not being depreciated 84,074,070 1,875,598 (69,762) (664,311) 85,215,595
Capital assets, being depreciated:
Buildings and structures 27,751,278 664,311 28,415,589
Machinery and equipment
Governmental funds 2,281,816 2,281,816
Internal service funds 2,220,120 98,394 2,318,514
Infrastructure:
Bridges 1,563,654 1,563,654
Signs and lights 3,049,976 3,049,976
Drainage system 40,139,949 40,139,949
Sidewalks 15,902,719 15,902,719
Total capital assets, being depreciated 92,909,512 98,394 664,311 93,672,217
Less accumulated depreciation for:
Buildings and structures (14,605,516) (803,685) (15,409,201)
Machinery and equipment
Governmental funds (1,900,003) (114,040) (2,014,043)
Internal service funds (1,903,280) (132,218) (2,035,498)
Infrastructure:
Bridges (1,250,594) (17,227) (1,267,821)
Signs and lights (1,818,292) (112,520) (1,930,812)
Drainage system (22,755,277) (801,668) (23,556,945)
Sidewalks (9,220,225) (460,373) (9,680,598)
Total accumulated depreciation (53,453,187) (2,441,731) (55,894,918)
Total capital assets, being depreciated net 39,456,325 (2,343,337) 664,311 37,777,299
Governmental activities capital assets, net 123,530,395$ (467,739)$ (69,762)$ -$ 122,992,894$
General Government 1,259,821$
Public Works 1,003,282
Community Services 142,035
Community Development 36,593
Total Depreciation Expense 2,441,731$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
75
NOTE 6 – LONG-TERM LIABILITIES
A summary of the City's governmental long-term obligations for the fiscal year ended June 30,
2024, is presented below:
General Obligation 2011 Library Bonds - Original Issue $11,995,000
On July 14, 2011, the City issued General Obligation Bonds Series 2011 in the amount of
$11,995,000. The bonds were issued to fully refund the General Obligation 2001 Library Bonds.
The bonds are payable from and secured by certain property taxes within the City held in the
Library Bond Debt Service Fund. 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
were 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. In the event of a default, all
amounts associated with this bond become immediately due.
The annual debt service requirements on these bonds are as follows:
Compensated Absences
The City's liability for vested and unpaid compensated absences (accrued vacation and sick pay)
has been accrued and amounts to $878,080 at June 30, 2024. The compensated absences liability
will generally be liquidated through the General Fund.
Classification
Balance at Balance at Due Within Due in More
Description June 30, 2023 Additions Reductions June 30, 2024 One Year Than One Year
Governmental Activities:
General Obligation Bonds:
2011 Library bonds 6,385,000$ -$ (610,000)$ 5,775,000$ 630,000$ 5,145,000$
Net original issue premium 197,034 (21,892) 175,142 21,892 153,250
Compensated absences 944,910 619,812 (686,642) 878,080 664,754 213,326
Total 7,526,944$ 619,812$ (1,318,534)$ 6,828,222$ 1,316,646$ 5,511,576$
Fiscal
Year Ended Principal Interest Total
2025 630,000$ 209,585$ 839,585$
2026 655,000 185,523 840,523
2027 685,000 162,073 847,073
2028 705,000 137,043 842,043
2029 760,000 109,400 869,400
2030-2032 2,340,000 144,600 2,484,600
Total 5,775,000$ 948,224$ 6,723,224$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
76
NOTE 6 – LONG-TERM LIABILITIES (Continued)
Debt Without City Commitment
A summary of the Fiduciary Fund long-term obligations for the fiscal year ended June 30, 2024,
is presented below:
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. In the event of a default, all amounts
associated with this bond become immediately due.
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:
Classification
Balance at Balance at Due Within Due in More
Description June 30, 2023 Additions Reductions June 30, 2024 One Year Than One Year
Fiduciary Funds:
Special Tax Bonds:
2018 Arrowhead CFD 1,477,214$ -$ (101,230)$ 1,375,984$ 26,287$ 1,349,697$
Total 1,477,214$ -$ (101,230)$ 1,375,984$ 26,287$ 1,349,697$
Fiscal Year Ended Principal Interest Total
2025 26,287$ 87,872$ 108,040$
2026 26,383 86,281 108,040
2027 27,979 84,595 108,040
2028 29,672 82,806 108,040
2029 31,468 76,572 108,040
2030-2034 188,304 351,896 540,200
2035-2039 252,588 287,612 540,200
2040-2044 338,818 201,382 540,200
2045-2049 454,485 85,715 540,200
Total 1,375,984$ 1,344,731$ 2,701,000$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
77
NOTE 7 – RISK MANAGEMENT
The City participates in the following public entity risk pool:
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, 2024, the City
contributed $405,002 for current year coverage. The City's contribution equals the ratio of the
City's payroll to the total payroll 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 $123,507 reported at June 30,
2024, is based on the requirements of GASB Statement No. 10, which requires that a liability for
claims be reported if information prior to the issuance of the basic financial statements indicates
that it is probable that a liability has incurred at the date of the basic financial statements and the
amount of the loss can be reasonably estimated. Changes in the claims payable amounts were as
follows:
The General Fund has been used in the prior years to liquidate the liability for claims and
judgments.
Each risk pool is governed by a board consisting of representatives from member municipalities.
The board controls the operations of each risk pool, including selection of management and
approval of operating budgets, independent of any influence by member municipalities beyond
their representation on the Board.
Audited financial information for each risk pool may be obtained from Bickmore at 1750
Creekside Oaks Dr., Ste. 200, Sacramento, California 95833.
Year Ended Year Ended
June 30, 2024 June 30, 2023
Claims payable, beginning of fiscal year 131,345$ 194,533$
Fiscal year claims and changes in estimates 405,002 466,212
Claims payments (412,840) (529,400)
Claims payable, end of fiscal year 123,507$ 131,345$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
78
NOTE 8 – 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 acts as a common investment and administrative agent for participating
public entities within the State of California. Benefit provisions and all other requirements are
established by State statute and City ordinance. 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 its 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, 2024, are summarized as follows:
Employees Covered – At June 30, 2024, the following employees were covered by the benefit
terms for the Plan:
Contributions – Section 20814(c) of California Public Employees’ Retirement Law requires that
the employer contribution rates for all public employers are determined on an annual basis by an
actuary and shall be effective on the July 1 following notice of a change in the rate. Funding
contributions for the Plan are determined annually on an actuarial basis as of June 30 by
CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs
of benefits earned by employees during the year, with an additional amount to finance any
unfunded accrued liability. The City is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees.
Miscellaneous
Tier 1 Tier 1 & 2 PEPRA
Benefit formula 2.5 % @ 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 ben. As a % of eligible comp. 2.00%2.00%2.00%
Required employee contribution rates 7.00%7.00%8.25%
Required employer contribution rates 13.26%10.87%8.00%
Miscellaneous
Active 61
Transferred 34
Separated 38
Retired 132
Total 265
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
79
NOTE 8 – RETIREMENT PLANS (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to
Pensions - As of June 30, 2024, the City reported net pension liabilities for its proportionate share
of the net pension liability of the Plan as follows:
The City’s net pension liability for the Plan is measured as the proportionate share of the Plan’s
net pension liability. The net pension liability of the Plan is measured at June 30, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2022 and 2023 was as follows:
For the fiscal year ended June 30, 2024, the City recognized a credit to pension expense of
$1,428,617. At June 30, 2024, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Proportionate Share
of Net Pension
Liability/(Asset)
Miscellaneous 11,305,154$
Proportion - June 30, 2022 0.08642%
Proportion - June 30, 2023 0.09062%
Change - Increase/(Decrease) 0.00420%
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes of Assumptions 682,543$ -$
Differences between Expected and Actual Experience 577,529 (89,589)
Differences between Projected and Actual Investment Earnings 1,830,406
Differences between Employer's Contributions and
Proportionate Share of Contributions (1,219,194)
Change in Employer's Proportion 1,902,343
Pension Contributions Made Subsequent to Measurement Date 2,391,386
Total 7,384,207$ (1,308,783)$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
80
NOTE 8 – RETIREMENT PLANS (Continued)
The City reported $2,391,386 as deferred outflows of resources related to contributions
subsequent to the measurement date that will be recognized as a reduction of the net pension
liability in the fiscal year ended June 30, 2025.
Other amounts reported as deferred outflows and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Actuarial Assumptions – The total pension liabilities in the June 30, 2022 actuarial valuations
were determined using the following actuarial assumptions:
The underlying mortality assumptions and all other actuarial assumptions used in the June 30,
2022 valuation were based on the results of a January 2014 Actuarial Experience Study for the
period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS’
website.
Deferred
Outflows/
Fiscal Year (Inflows) of
Ending June 30: Resources
2025 1,444,621$
2026 910,909
2027 1,275,986
2028 52,522
2029
Total 3,684,038$
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investment Rate of Return 6.80% (2)
Mortality (3)
(1)Varies by entry age and service
(2)Net pension plan investment expenses, including inflation
(3)Derived using CalPERS' membership data for all funds
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
81
NOTE 8 – RETIREMENT PLANS (Continued)
Discount Rate – The discount rate used to measure the total pension liability was 6.90 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 6.90 percent discount rate is adequate,
and the use of the municipal bond rate calculation is not necessary. The long-term expected
discount rate of 6.90 percent will be applied to all plans 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 GASB Statement No. 68, the long-term discount rate should be
determined without reduction for pension plan administrative expense. The 6.80 percent
investment return assumption used in this accounting valuation is net of administrative expenses.
Administrative expenses are assumed to be 10 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.
Assumed
Asset Real Return
Asset Class Allocation Years 1 - 10(a) (b)
Global Equity - cap-weighted 30.00%4.54%
Global Equity - non-cap-weighted 12.00%3.84%
Private Equity 13.00%7.28%
Treasury 5.00%0.27%
Mortgage-backed Securities 5.00%0.50%
Investment Grade Corporates 10.00%1.56%
High Yield 5.00%2.27%
Emerging Market Debt 5.00%2.48%
Private Debt 5.00%3.57%
Real Assets 15.00%3.21%
Leverage -5.00%-0.59%
Total 100.00%
(a) An expected inflation of 2.3% used for this period.
(b) Figures are based on the 2021-22 Asset Liability Management study.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
82
NOTE 8 – RETIREMENT PLANS (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate – The following presents the City’s proportionate share of the net pension liability for the
Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-percentage
point lower or 1- percentage point higher than the current rate:
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary
net position is available in the separately issued CalPERS’ financial reports.
NOTE 9 – NET POSITION
A.Net Investment in Capital Assets
As of June 30, 2024, the net investment in capital assets consisted of the following:
NOTE 10 – 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.
Miscellaneous
1% Decrease 5.90%
Net Pension Liability 20,359,524$
Current 6.90%
Net Pension Liability 11,305,154$
1% Increase 7.90%
Net Pension Liability 3,852,630$
Capital assets, net 122,992,894$
2011 general obligation library bonds (5,775,000)
Net original issue premium (175,142)
Net investment in capital assets 117,042,752$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
83
NOTE 10 – JOINT POWERS AGREEMENTS (Continued)
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.
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 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 Grants Programs
The City participates in Federal and State grant programs. In qualifying years, 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 did not reach the level of qualifying cost during the current fiscal year, so no 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, 2024 totaling
$1,144,086 with an original contract amount of $2,696,33. The entire total of the outstanding
commitments are reported within the Capital Projects Fund when expenditures are incurred.
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, 2024.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
84
NOTE 12 – FUND BALANCES
GASB Statement No. 54 requires governmental funds to report fund balance in classifications based
primarily on the extent to which the City is bound to honor constraints on the specific purposes for
which amounts in the funds can be spent. As of June 30, 2024, fund balances for governmental funds
are made up of the following:
Nonspendable – amounts that cannot be spent either because they are in nonspendable form or
because they are legally or contractually required to be maintained intact.
Restricted – amounts that can be spent only for specific purposes because of constitutional provisions
or enabling legislation or because of constraints that are externally imposed by creditors, grantors,
contributors, or the laws or regulations of other governments.
Committed – amounts that can be used only for specific purposes determined by a formal action of
the governing board in the highest level of decision-making authority for the City. Commitments
may be established, modified, or rescinded only through resolutions approved by the governing
board.
Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that
are intended to be used for specific purposes. Under the City’s adopted policy, only the City
Manager may assign amounts for specific purposes.
Unassigned – all other spendable amounts.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance
is available, the City considers restricted funds to have been spent first. When an expenditure is
incurred for which committed, assigned, or unassigned fund balances are available, the City
considers amounts to have been spent first out of committed funds, then assigned funds, and finally
unassigned funds, as needed, unless the governing board (or City Manager for assignments) has
provided otherwise in its commitment or assignment actions.
The governing board adopted a minimum fund balance policy for the General Fund in order to
establish, dedicate, and maintain reserves annually to meet known and estimated future
obligations. 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. The General Fund
is the only fund that reports a positive unassigned fund balance. Other governmental funds may
report unassigned fund balance only when liabilities exceed assets resulting in a negative
unassigned fund balance.
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
85
NOTE 12 – FUND BALANCES (CONTINUED)
A detailed schedule of fund balances as of June 30, 2024 is presented below.
NOTE 13 – OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City provides health insurance benefits under various health plans to eligible retirees and
dependents in accordance with various labor agreements. Employees are eligible for retiree health
benefits if they retire from the City on or after age 50 (unless disabled) and are eligible for a
CalPERS pension. Part-time employees are not eligible.
Eligibility
The table below presents a summary of the basic participant information for the active and
inactive participants covered under the terms of the Plan.
Annual OPEB Cost and Net OPEB Obligation
For the fiscal year ended June 30, 2024, the total contribution made was $39,267. Twenty-one
inactive employees received OPEB benefits during the fiscal year.
Special Revenue Capital Project Nonmajor Total
Fund Fund Governmental Governmental
General ARPA/SLFRF Capital Improvement Funds Funds
Restricted for:
Debt service -$ -$ -$ 1,013,048$ 1,013,048$
Community services 1,426,122 1,426,122
Streets and roads 5,290,786 1,589,807 6,880,593
District Assessments 1,144,606 1,144,606
Total restricted fund balances 5,290,786 5,173,583 10,464,369
Committed to:
Hillside stability 1,000,000 1,000,000
Capital projects 7,281,263 926,817 8,208,080
Total committed fund balances 1,000,000 7,281,263 926,817 9,208,080
Assigned to:
Facility replacement 3,700,000 3,700,000
Future capital & efficiency 4,220,406 4,220,406
Total assigned fund balances 7,920,406 7,920,406
Unassigned 9,123,764 9,123,764
Total unassigned fund balances 9,123,764 9,123,764
Total fund balances 18,044,170$ 5,290,786$ 7,281,263$ 6,100,400$ 36,716,619$
Covered Participants
Inactives currently receiving benefits 21
Inactives entitled to but not yet receiving benefits 21
Active employees 57
Total 99
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
86
NOTE 13 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2023, and the total OPEB liability
used to calculate the OPEB liability was determined by an actuarial valuation as of June 30, 2022.
Actuarial Method and Assumptions
The total OPEB liability in the June 30, 2022 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:
Change in Total OPEB Liability
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Contribution Policy No pre-funding
Actuarial Assumptions:
Discount Rate 3.65%
Inflation 2.50%
Mortality CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality projected fully generation with Scale MP-2021
Salary Increases Aggregate 2.7% annually
Merit - CalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare 8.5% for 2023
decreasing to an ultimate rate of 3.45% in 2076
Medicare - 7.5% for 2023
decreasing to an ultimate rate of 3.45% in 2076
PEMHCA Minimum Increase 3.50% annually
Healthcare Participation at Retirement Active - 50%
Inactive - current election
Total OPEB
Liability
Balance at 6/30/23 2,005,823$
Changes for the fiscal year:
Service cost 121,832
Interest 73,857
Assumption changes (28,186)
Benefit payments (82,614)
Balance at 6/30/24 2,090,712$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
87
NOTE 13 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Sensitivity of Total OPEB Liability
There is sensitivity of the net OPEB liability due to changes in the discount rate and healthcare
cost trend rates. The following presents the net OPEB liability of the City, as well as what the
City’s total OPEB liability would be if it were calculated using the discount and trend rate that
were 1 percentage point lower or 1 percentage point higher than the current discount and trend
rates.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $141,739. At June
30, 2024, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Pension contributions made subsequent to the measure date of $95,341 will be recognized as
OPEB related expenses for the fiscal year ended June 30, 2025. Amounts reported as deferred
inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Changes in Discount Rate
1% Decrease 2.65%
Net Pension Liability 2,371,308$
Current 3.65%
Net Pension Liability 2,090,712$
1% Increase 4.65%
Net Pension Liability 1,860,190$
Changes in the Healthcare Trend Rate
1% Decrease 1,801,608$
Current 2,090,712$
1% Increase 2,452,987$
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes of Assumptions -$ 314,587$
Pension Contributions Made Subsequent to Measurement Date 95,341
Total 95,341$ 314,587$
CITY OF SARATOGA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
88
NOTE 14 – PRIOR PERIOD ADJUSTMENT
A prior period adjustment of ($2,309,958) was made on the government-wide statement of
activities related to an understatement of OPEB liability in the prior fiscal year.
Fiscal Year Deferred Outflows
Ending June 30: (Inflows) of Resources
2025 (54,549)$
2026 (54,549)
2027 (54,549)
2028 (54,549)
2029 (54,549)
Thereafter (41,842)
Total (314,587)$
89
REQUIRED SUPPLEMENTARY INFORMATION
90
THIS PAGE INTENTIONALLY LEFT BLANK
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Property Taxes 18,636,124$ 18,636,124$ 19,078,883$ 442,759$
Sales and Use Taxes 1,441,000 1,441,000 1,253,649 (187,351)
Business License Taxes 598,900 598,900 517,524 (81,376)
Transient Occupancy Tax 410,000 410,000 512,261 102,261
Other Taxes 2,033,500 2,033,500 2,587,206 553,706
Licenses and Permits 221,000 221,000 263,644 42,644
Fines and Forfeitures 47,300 47,300 49,387 2,087
Interest 1,200,000 1,200,000 2,017,988 817,988
Charges for Services 3,563,028 3,563,028 5,647,997 2,084,969
Intergovernmental 123,000 123,000 617,256 494,256
Other 69,496 69,496
Total Revenues 28,273,852 28,273,852 32,615,291 4,341,439
Expenditures
Current:
General Government 9,244,582 9,299,582 8,371,657 927,925
Public Safety 8,315,962 8,290,962 8,195,291 95,671
Public Works 7,174,962 7,363,962 7,341,701 22,261
Community Services 596,634 566,634 462,696 103,938
Community Development 2,886,399 2,886,399 2,620,388 266,011
Total Expenditures 28,218,539 28,407,539 26,991,733 1,415,806
Excess (Deficiency) of Revenues Over
(Under) Expenditures 55,313 (133,687) 5,623,558 5,757,245
Other Financing Sources (uses):
Transfers In 765,684 765,684
Transfers Out (3,289,000) (3,507,876) (3,507,876) -
Total Other Financing Sources (Uses) (3,289,000) (3,507,876) (2,742,192) 765,684
Net Change in Fund Balance (3,233,687) (3,641,563) 2,881,366 6,522,929
Fund Balance - July 1, 2023 15,162,804 15,162,804 15,162,804
Fund Balance - June 30, 2024 11,929,117$ 11,521,241$ 18,044,170$ 6,522,929$
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgeted Amounts
CITY OF SARATOGA
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
See Note to Required Supplementary Information
91
Variance with
Final Budget
Original Final Actual Positive (Negative)
Expenditures
Current:
Public Works 6,473,436$ 6,473,436$ 1,182,650$ 5,290,786$
Total Expenditures 6,473,436 6,473,436 1,182,650 5,290,786
Net Change in Fund Balance (6,473,436) (6,473,436) (1,182,650) 5,290,786
Fund Balance - July 1, 2023 6,473,436 6,473,436 6,473,436
Fund Balance - June 30, 2024 -$ -$ 5,290,786$ 5,290,786$
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgeted Amounts
CITY OF SARATOGA
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
ARPA/SLFRF SPECIAL REVENUE FUND
See Note to Required Supplementary Information
92
93
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
Cost Sharing Defined Benefit Pension Plan – City Miscellaneous Plan
As of June 30, 2024
Schedule of the City’s Miscellaneous Plan Proportionate Share of the Net Pension Liability – Last
10 Years*
Notes to Schedule
Change in Benefit Terms: The figures above do not include any liability impact that may have resulted
from plan changes which occurred after June 30, 2014 as they have minimal cost impact. This applies for
voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden
Handshakes).
Change in Assumptions: In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15
percent.
In 2023, the accounting discount rate was reduced from 7.15 percent to 6.90 percent.
Miscellaneous Plan
Fiscal Year Ended 2020 2021 2022 2023 2024
Proportion of Net Pension
Liability (Safety and Misc)0.07431% 0.07540% 0.01345% 0.08642% 0.09062%
Proportionate Share of
Net Pension Liability 7,614,972$ 8,204,013$ 727,447$ 9,982,329$ 11,305,154$
Covered Payroll 6,156,572$ 6,590,150$ 6,568,081$ 6,951,928$ 7,196,642$
Proportionate Share of NPL
as a % of Covered Payroll 123.69% 124.49% 11.08% 143.59% 157.09%
Plan's Fiduciary Net Position
as a % of the TPL 85.36% 85.12% 98.76% 76.68% 76.21%
Fiscal Year Ended 2015 2016 2017 2018 2019
Proportion of Net Pension
Liability (Safety and Misc)0.11163% 0.06216% 0.07322% 0.07620% 0.07510%
Proportion of Net Pension
Liability (Misc Plan Only)0.28104% 0.1551% 0.18238% 0.19170% 0.19202%
Proportionate Share of
Net Pension Liability 6,945,916$ 4,226,268$ 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% 87.03% 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%
94
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
Cost Sharing Defined Benefit Pension Plan – Miscellaneous Plan
As of June 30, 2024
Schedule of Pension Contributions – Last 10 Years*
Miscellaneous Plan
Fiscal Year Ended 2020 2021 2022 2023 2024
Contractually Required Contributions 1,701,847$ 1,733,461$ 1,756,965$ 1,428,617$ 1,441,386$
Contributions in Relation to Contractually
Required Contributions 1,701,847 1,733,461 1,756,965 1,428,617 2,391,386
Contribution Deficiency (Excess)-$ -$ -$ -$ (950,000)$
Covered Payroll 6,590,150$ 6,568,081$ 6,951,928$ 7,196,642$ 7,760,535$
Contributions as a % of Covered Payroll 25.82% 26.39% 25.27% 19.85% 30.81%
Fiscal Year Ended 2015 2016 2017 2018 2019
Contractually Required Contributions 4,203,599$ 1,109,589$ 1,016,197$ 1,289,450$ 1,637,179$
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)-$ -$ -$ -$ -$
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, 2022
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 2.30%
Investment Rate of Returns set at 6.90%
CalPERS mortality table based on CalPERS' experience and includes 15 years of projected ongoing mortality
improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.
95
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
Schedule of Changes in Net OPEB Liability and Related Ratios - Last 10 Years*
*Fiscal year 2022 was the 1st year of implementation, therefore only three years are shown.
2024 2023 2022
Measurement Period 2022-23 2021-22 2020-21
Changes in Total OPEB Liability
Service Costs 121,832$ 157,573$ 151,726$
Interest 73,857 51,457 49,241
Changes of Assumptions (28,186) (391,838) 15,378
Benefit Payments (82,614) (72,087) (64,030)
Net Change in Total OPEB Liability 84,889 (254,895) 152,315
Total OPEB Liability - Beginning 2,005,823 2,260,718 2,108,403
Total OPEB Liability - Ending (a)2,090,712$ 2,005,823$ 2,260,718$
Covered Payroll 7,809,193$ 7,915,061$ 7,122,272$
Net OPEB Liability as Percentage of Covered
Payroll 26.77% 25.34% 31.74%
96
CITY OF SARATOGA
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
Schedule of OPEB Employer Contributions - Last 10 Years*
1 Per GASB 75 paragraph 57c., these disclosures are only required if the employer calculates an Actuarially
Determined Contribution (ADC). The City does not currently calculate an ADC.
Notes to Schedule
Funding Policy: The City funds the benefits on a pay-as-you-go basis. No assets are accumulated in a trust.
*Fiscal year 2022 was the 1st year of implementation, therefore only three years are shown.
2024 2023 2022
Actuarially Determined Contributions (ADC)1 n/a n/a n/a
Contributions in relation to ADC n/a n/a n/a
Contribution deficiency/(excess)n/a n/a n/a
Covered payroll 7,809,193$ 7,915,061$ 7,122,272$
Contributions as a percentage of covered
payroll n/a n/a n/a
97
CITY OF SARATOGA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Budgetary Data
Through the budget, the City Council sets the direction of the City, allocates its resources and
establishes its priorities. The Annual Budget assures the efficient and effective uses of the
City’s economic resources, as well as establishes that the highest priority objectives are
accomplished.
The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly
communicates these priorities to the community, businesses, vendors, employees and other
public agencies. Additionally, 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 Governmental Funds include the General Fund, Special Revenue, Debt Service, and
Capital Projects funds. All funding sources are kept separate for both reporting and the use of
money. The General Fund is where most City services are funded that are not required to be
segregated.
Budgets and Budgetary Accounting
The City uses the following procedures in establishing the budgetary data reflected in the
financial statements:
1. Prior to June 30 of each fiscal year, the City Manager submits to the City Council a
proposed operating budget for the fiscal year commencing the following July 1 as well as
a five-year capital improvement plan. The operating budget includes proposed
expenditures and the means of financing them.
2.Public hearings are conducted at the City Hall to obtain citizen input.
3. Prior to July 1, the budget is adopted through passage of a resolution and is not included
herein but is published separately.
4. The City Manager is authorized to transfer budgeted amounts between departments within
any fund. However, any revision that increases the total appropriations of any fund must
be approved by the City Council. The appropriated budget is prepared by fund, function,
and department.
5. As Capital Projects are adopted on a project basis, the City Council approves 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.
6. Formal budgetary integration is employed as a management control device during the
year for all funds.
7. Budgets for General, Special Revenue, Debt Service, and Capital Projects Funds are
adopted on a basis consistent with accounting principles generally accepted in the United
States of America.
98
CITY OF SARATOGA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2024
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 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 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 27, 2023. 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 141.44 centerline miles of
paved surfaces. The City’s road system can be grouped by function class and includes 20.22
centerline miles of arterial, 28.77 centerline miles of collector, and 92.45 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.
99
CITY OF SARATOGA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2024
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS
(CONTINUED)
The following conditions were defined:
The City's policy is to achieve an average rating of 70 for all streets, which is a very good rating.
This rating allows minor cracking and raveling of the pavement along with minor roughness that
could be noticeable to drivers traveling at the posted speeds. As of April 27, 2023, the City's
street system was rated at an estimated PCI index of 69 on average with the detail condition as
follows:
The City’s expenditures needed to maintain street infrastructure over the previous five fiscal
years are as follows:
The City expended $3,235,157 on street maintenance and infrastructure for the fiscal year ended
June 30, 2024. These projects include resurfacing, safety improvements, sidewalks, curbs and
gutters, storm drain improvements, beautification projects, and various other routine maintenance
projects that help to delay deterioration and beautify the City’s roadway system. Council has
established a goal that a minimum of $2,000,000 be budgeted for the CIP Streets program on an
annual basis.
$10,113,447 was budgeted for various street projects in the five-year CIP cycle beginning Fiscal
Year 2022/23.
As of April 2023, approximately 17.2 percent of the City's streets were rated below the average
standard of “Fair.” 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 (2022-2026) will amount to approximately $45,999,062 for all streets.
Condition Rating
Condition I - Good to Excellent PCI 70-100
Condition II/III - At Risk to Fair PCI 50-69
Condition IV - Poor PCI 25-49
Condition V - Failed to Very Poor PCI 0-24
Condition Current
Condition I - Good to Excellent 55.0%
Condition II/III - At Risk to Fair 27.8%
Condition IV - Poor 14.2%
Condition V - Failed to Very Poor 3.0%
2024 2023 2022 2021 2020
Street Infrastructure 3,235,157$ 5,044,651$ 3,893,895$ 4,384,022$ 5,005,649$
Fiscal Year Ended June 30,
100
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101
OTHER SUPPLEMENTARY INFORMATION
102
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103
COMBINING STATEMENTS
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to
expenditure for particular purposes.
Gas Tax – This fund is used to account for revenues and expenditures pertaining to the
maintenance and construction of City streets.
Landscape & Lighting District - These funds are used to account for revenues and
expenditures associated with maintaining the City’s landscape and lighting zones which
were approved by consent of property owners living along or within the boundaries of the
zone.
Stormwater Maintenance District – This fund is used to account for revenues and
expenditures associated with maintaining the City’s storm drain zones which were
approved by consent of property owners living along or within the boundaries of the zone.
Tree Fines – This fund is used to account for revenues and expenditures associated with tree
fines.
Park In-Lieu Fees – This fund is used to account for revenues and expenditures associated
with park in-lieu fees.
Storm 2023 – This fund is used to account for revenues and expenditures associated with
storm damage during the year 2023.
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major
capital facilities other than those financed by proprietary funds and trust funds.
Grants CIP – This fund is used to account for projects funded in whole or in part by grant
revenues.
DEBT SERVICE FUNDS
Debt service funds are used to account for the accumulation of resources and repayment of
debt from governmental resources.
Library GO 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.
Stormwater
Gas L&L Maintenance Tree Park In-Lieu Storm
Tax Districts Districts Fines Fees 2023
Assets
Cash and Investments 1,451,465$ 1,096,764$ 136,350$ 41,216$ 1,400,206$ -$
Accounts Receivable 138,342 65
Interest Receivable 10,843 1,497
Total Assets 1,589,807$ 1,107,672$ 137,847$ 41,216$ 1,400,206$ -$
Liabilities
Accounts Payable -$ 100,359$ 554$ -$ 15,300$ -$
Total Liabilities 100,359 554 15,300
Deferred Inflows of Resources:
Unavailable Grant Revenue
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows
of Resources 100,359 554 15,300
Fund Balances
Restricted 1,589,807 1,007,313 137,293 41,216 1,384,906
Committed
Total Fund Balances 1,589,807 1,007,313 137,293 41,216 1,384,906
Total Liabilities, Deferred Inflows
and Fund Balances 1,589,807$ 1,107,672$ 137,847$ 41,216$ 1,400,206$ -$
June 30, 2024
Special Revenue Funds
CITY OF SARATOGA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
104
Capital Projects Debt Service
Fund Fund Total
Nonmajor
Library GO Governmental
Grants CIP Bond Funds
966,424$ 1,008,977$ 6,101,402$
122,236 4,071 264,714
12,340
1,088,660$ 1,013,048$ 6,378,456$
39,607$ -$ 155,820$
39,607 155,820
122,236 122,236
122,236 122,236
161,843 278,056
1,013,048 5,173,583
926,817 926,817
926,817 1,013,048 6,100,400
1,088,660$ 1,013,048$ 6,378,456$
105
Stormwater
Gas L&L Maintenance Tree Park In-Lieu Storm
Tax Districts Districts Fines Fees 2023
Revenues:
Interest -$ 61,171$ 8,798$ -$ -$ -$
Charges for Services 16,100 549,831
Intergovernmental 1,640,996 42,759
Special Assessments 595,634 10,437
Total Revenues 1,640,996 656,805 19,235 16,100 549,831 42,759
Expenditures:
Current:
Community Services 2,150 213,626
Public Works 520,566 12,000 89,365
Debt Service:
Principal
Interest and Fiscal Charges
Total Expenditures 520,566 12,000 2,150 213,626 89,365
Excess (Deficiency) of Revenues
over (Under) Expenditures 1,640,996 136,239 7,235 13,950 336,205 (46,606)
Other Financing Sources (Uses):
Transfers In 1,070,299
Transfers Out (25,875) (1,070,299) (154,278)
Total Other Financing
Sources (Uses)(25,875) (154,278)
Net Change in Fund Balances 1,640,996 136,239 7,235 (11,925) 336,205 (200,884)
Fund Balances - June 30, 2023 (51,189) 871,074 130,058 53,141 1,048,701 200,884
Fund Balances - June 30, 2024 1,589,807$ 1,007,313$ 137,293$ 41,216$ 1,384,906$ -$
CITY OF SARATOGA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2024
Special Revenue Funds
106
Capital Projects Debt Service
Fund Fund Total
Nonmajor
Library GO Governmental
Grants CIP Bond Funds
-$ 1,899$ 71,868$
565,931
1,409,155 3,092,910
947,667 1,553,738
1,409,155 949,566 5,284,447
215,776
304,101 926,032
610,000 610,000
237,173 237,173
304,101 847,173 1,988,981
1,105,054 102,393 3,295,466
1,070,299
(18) (1,250,470)
(18) (180,171)
1,105,036 102,393 3,115,295
(178,219) 910,655 2,985,105
926,817$ 1,013,048$ 6,100,400$
107
Variance with
Actual Final Budget
Budget Amount Positive (Negative)
Revenues:
Sale and Use taxes 643,000$ -$ (643,000)$
Other Taxes 6,603 55,480 48,877
Licenses and Permits 402,057 1,089,211 687,154
Charges for Services 39,145 28,316 (10,829)
Intergovernmental 227,394 295,958 68,564
Total Revenues 1,318,199 1,468,965 150,766
Expenditures:
Current:
Public Works 8,203,869 1,558,693 6,645,176
Capital Outlay 1,751,282 1,875,598 (124,316)
Total Expenditures 9,955,151 3,434,291 6,520,860
Excess (Deficiency) of
Revenues Over (Under)
Expenditures (8,636,952) (1,965,326) 6,671,626
Other Financing Sources (Uses)
Transfers In 3,565,271 3,565,271
Transfers Out (642,908) (642,908)
Total Other financing
Sources (Uses) 3,565,271 2,922,363 (642,908)
Net Change in Fund Balance (5,071,681) 957,037 6,028,718
Fund Balance - July 1, 2023 6,324,226 6,324,226
Fund Balance - June 30, 2024 1,252,545$ 7,281,263$ 6,028,718$
Final
CITY OF SARATOGA
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
See Note to Required Supplementary Information
108
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:
Intergovernmental 1,717,048$ 1,640,996$ (76,052)$
Total Revenues 1,717,048 1,640,996 (76,052)
Expenditures:
Current:
Public Works 1,667,662 1,667,662
Total Expenditures 1,667,662 1,667,662
Net Change in Fund Balance 49,386 1,640,996 1,591,610
Fund Balance - July 1, 2023 (51,189) (51,189)
Fund Balance - June 30, 2024 (1,803)$ 1,589,807$ 1,591,610$
CITY OF SARATOGA
GAS TAX SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
109
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:
Interest 12,902$ 61,171$ 48,269$
Special Assessments 576,641 595,634 18,993
Total Revenues 589,543 656,805 67,262
Expenditures:
Current:
Public Works 788,938 520,566 268,372
Total Expenditures 788,938 520,566 268,372
Net Change in Fund Balance (199,395) 136,239 335,634
Fund Balance - July 1, 2023 871,074 871,074
Fund Balance - June 30, 2024 671,679$ 1,007,313$ 335,634$
CITY OF SARATOGA
L&L DISTRICTS SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
110
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:
Interest 2,000$ 8,798$ 6,798$
Special Assessments 10,498 10,437 (61)
Total Revenues 12,498 19,235 6,737
Expenditures:
Current:
Public Works 28,490 12,000 16,490
Total Expenditures 28,490 12,000 16,490
Net Change in Fund Balance (15,992) 7,235 23,227
Fund Balance - July 1, 2023 130,058 130,058
Fund Balance - June 30, 2024 114,066$ 137,293$ 23,227$
CITY OF SARATOGA
STORMWATER MAINTENANCE DISTRICTS SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
111
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:
Charges for Services 17,486$ 16,100$ (1,386)$
Total Revenues 17,486 16,100 (1,386)
Expenditures:
Current:
Community Services 9,180 2,150 7,030
Total Expenditures 9,180 2,150 7,030
Other Financing Sources (Uses):
Transfers Out (25,875) (25,875)
Total Other Financing
Sources (Uses) (25,875) (25,875)
Net Change in Fund Balance 8,306 (11,925) (20,231)
Fund Balance - July 1, 2023 53,141 53,141
Fund Balance - June 30, 2024 61,447$ 41,216$ (20,231)$
CITY OF SARATOGA
TREE FINES SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
112
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:
Charges For Services 100,000$ 549,831$ 449,831$
Total Revenues 100,000 549,831 449,831
Expenditures:
Current:
Community Services 1,020,330 213,626 806,704
Total Expenditures 1,020,330 213,626 806,704
Other Financing Sources (Uses):
Transfers In 1,070,299 1,070,299
Transfers Out (1,070,299) (1,070,299)
Total Other Financing
Sources (Uses)
Net Change in Fund Balance (920,330) 336,205 1,256,535
Fund Balance - July 1, 2023 1,048,701 1,048,701
Fund Balance - June 30, 2024 128,371$ 1,384,906$ 1,256,535$
CITY OF SARATOGA
PARK IN-LIEU FEES SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
113
Variance with
Final Final Budget
Budget Actual Positive (Negative)
Expenditures:
Current:
Public Works -$ 89,365$ (89,365)$
Total Expenditures 89,365 (89,365)
Net Change in Fund Balance (89,365) (89,365)
Fund Balance - July 1, 2023 200,884 200,884
Fund Balance - June 30, 2024 200,884$ 111,519$ (89,365)$
CITY OF SARATOGA
STORM 2023 SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
114
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:
Intergovernmental 3,983,171$ 1,409,155$ (2,574,016)$
Total Revenues 3,983,171 1,409,155 (2,574,016)
Expenditures:
Current:
Public Works 3,749,183 304,101 3,445,082
Total Expenditures 3,749,183 304,101 3,445,082
Net Change in Fund Balance 233,988 1,105,054 871,066
Fund Balance - July 1, 2023 (178,219) (178,219)
Fund Balance - June 30, 2024 55,769$ 926,835$ 871,066$
CITY OF SARATOGA
GRANT CIP SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
115
Variance with
Final Actual Final Budget
Budget Amount Positive (Negative)
Revenues:
Interest -$ 1,899$ 1,899$
Special Assessments 846,385 947,667 101,282
Total Revenues 846,385 949,566 103,181
Expenditures:
Debt Service:
Principal 610,000 610,000
Interest and Fiscal Charges 236,385 237,173 (788)
Total Expenditures 846,385 847,173 (788)
Net Change in Fund Balance 102,393 102,393
Fund Balance - July 1, 2023 910,655 910,655
Fund Balance - June 30, 2024 910,655$ 1,013,048$ 102,393$
CITY OF SARATOGA
LIBRARY GO BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2024
116
117
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by
one department or agency to other departments or agencies of the City on a cost
reimbursement basis.
Liability/Risk Management Insurance - 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.
Workers’ Compensation - 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 - 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 - 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 - 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 - 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.
Risk Worker's Office IT
Management Compensation Support Services
Assets
Current Assets:
Cash and Investments 854,243$ 239,635$ 168,431$ 846,820$
Accounts Receivable 3,873 4,698 911
Total Current Assets 858,116 244,333 168,431 847,731
Noncurrent Assets:
Capital Assets:
Machinery and Equipment
Less:
Accumulated Depreciation
Total Noncurrent Assets
Total Assets 858,116 244,333 168,431 847,731
Liabilities
Current Liabilities:
Accounts Payable 9,520 661 1,251 1,548
Accrued Liabilities 3,878 1,544 15,713
Claims Payable 123,507
Total Current Liabilities 136,905 2,205 1,251 17,261
Total Liabilities 136,905 2,205 1,251 17,261
Net Position
Net Investment in Capital Assets
Unrestricted 721,211 242,128 167,180 830,470
Total Net Position 721,211$ 242,128$ 167,180$ 830,470$
CITY OF SARATOGA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
June 30, 2024
118
Total
Vehicle and Vehicle and IT Furniture and Internal
Equipment Building Equipment Equipment Fixtures
Maintenance Maintenance Replacement Replacement Replacement
188,570$ 735,039$ 819,509$ 1,018,872$ 1,039,767$ 5,910,886$
9,482
188,570 735,039 819,509 1,018,872 1,039,767 5,920,368
1,896,682 110,465 311,367 2,318,514
(1,718,847) (110,465) (206,186) (2,035,498)
177,835 105,181 283,016
188,570 735,039 997,344 1,018,872 1,144,948 6,203,384
4,281 37,122 996 55,379
3,987 17,576 42,698
123,507
8,268 54,698 996 221,584
8,268 54,698 996 221,584
177,835 105,181 283,016
180,302 680,341 819,509 1,018,872 1,038,771 5,698,784
180,302$ 680,341$ 997,344$ 1,018,872$ 1,143,952$ 5,981,800$
Service
Funds
119
Risk Worker's Office IT
Management Compensation Support Services
Operating Revenues
Charges for Services 1,162,423$ 325,192$ 71,230$ 882,814$
Other 66,582 9,893 13,939
Total Operating Revenues 1,229,005 335,085 71,230 896,753
Operating Expenses
Cost of Services 1,151,001 317,825 66,263 776,974
Depreciation
Total Operating Expenses 1,151,001 317,825 66,263 776,974
Operating Income (Loss)78,004 17,260 4,967 119,779
Changes in Net Position 78,004 17,260 4,967 119,779
Net Position - Beginning of Fiscal Year 643,207 224,868 162,213 710,691
Net Position - End of Fiscal Year 721,211$ 242,128$ 167,180$ 830,470$
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
CITY OF SARATOGA
120
Total
Vehicle and Vehicle and IT Furniture and Internal
Equipment Building Equipment Equipment Fixtures
Maintenance Maintenance Replacement Replacement Replacement
274,770$ 1,196,640$ 150,048$ 150,120$ 200,000$ 4,413,237$
872 91,286
274,770 1,197,512 150,048 150,120 200,000 4,504,523
362,856 1,209,572 39,813 4,320 3,928,624
88,539 43,679 132,218
362,856 1,209,572 88,539 39,813 47,999 4,060,842
(88,086) (12,060) 61,509 110,307 152,001 443,681
(88,086) (12,060) 61,509 110,307 152,001 443,681
268,388 692,401 935,835 908,565 991,951 5,538,119
180,302$ 680,341$ 997,344$ 1,018,872$ 1,143,952$ 5,981,800$
Service
Funds
121
Risk Worker's Office IT
Management Compensation Support Services
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Users 1,230,457$ 333,430$ 71,230$ 896,763$
Cash Payments to Suppliers and Contractors (1,190,981) (317,949) (68,109) (782,605)
Net Cash Provided (Used) By Operating Activities 39,476 15,481 3,121 114,158
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Acquisition of property, plant, and equipment
Net Cash Provided (Used) In Capital and Related
Financing Activities
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 39,476 15,481 3,121 114,158
CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 814,767 224,154 165,310 732,662
CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR 854,243$ 239,635$ 168,431$ 846,820$
Reconciliation to Statement of Net Position:
Cash and Cash Equivalents 854,243$ 239,635$ 168,431$ 846,820$
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating Income (Loss)78,004$ 17,260$ 4,967$ 119,779$
Adjustment to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by Operating
Activities:
Depreciation Expense
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 1,452 (1,655) 10
Increase (Decrease) in Accounts Payable (33,231) (230) (1,846) (6,946)
Increase (Decrease) in Accrued Liabilities 1,090 106 1,315
Increase (Decrease) in Claims Payable (7,839)
Total Adjustments (38,528) (1,779) (1,846) (5,621)
Net Cash Provided (Used) By Operating Activities 39,476$ 15,481$ 3,121$ 114,158$
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
CITY OF SARATOGA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
122
Total
Vehicle and Vehicle and IT Furniture and Internal
Equipment Building Equipment Equipment Fixtures
Maintenance Maintenance Replacement Replacement Replacement
274,770$ 1,197,512$ 150,048$ 150,120$ 200,000$ 4,504,330$
(364,231) (1,208,643) (18,173) (47,289) (3,324) (4,001,304)
(89,461) (11,131) 131,875 102,831 196,676 503,026
(85,523) (12,871) (98,394)
(85,523) (12,871) (98,394)
(89,461) (11,131) 46,352 102,831 183,805 404,632
278,031 746,170 773,157 916,041 855,962 5,506,254
188,570$ 735,039$ 819,509$ 1,018,872$ 1,039,767$ 5,910,886$
188,570$ 735,039$ 819,509$ 1,018,872$ 1,039,767$ 5,910,886$
(88,086)$ (12,060)$ 61,509$ 110,307$ 152,001$ 443,681$
88,539 43,679 132,218
(193)
(1,633) 4,797 (18,173) (7,476) 996 (63,742)
258 (3,868) (1,099)
(7,839)
(1,375) 929 70,366 (7,476) 44,675 59,345
(89,461)$ (11,131)$ 131,875$ 102,831$ 196,676$ 503,026$
Service
Funds
123
124
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125
CUSTODIAL FUNDS
Fiduciary funds are used to account for the receipt and disbursement of various taxes,
deposits, deductions, and property collected by the City, acting in the capacity of an agent
for distribution to other governmental units or other organizations.
Custodial Funds
WVCWP Agency – 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.
Arrowhead CFD – This fund accounts for the activities of the Saratoga Community
Facilities District 2016-1 (Arrowhead Project) Special Tax Bonds, Series 2018.
West Valley
Clean Water Arrowhead
Program CFD Total
ASSETS
Cash and investments 737,988$ 12,337$ 750,325$
Cash and investments with fiscal agent 83,551 83,551
Interest receivable 6,426 6,426
Accounts receivable 1,800 1,800
Right to use asset, net of accumulated amortization 76,365 76,365
Total Assets 820,779 97,688 918,467
LIABILITIES
Accounts payable 49,181 818 49,999
Accrued liabilities 10,050 10,050
Long-term debt, due within one year 22,669 26,287 48,956
Long-term debt, due in more than one year 63,164 1,349,697 1,412,861
Total Liabilities 145,064 1,376,802 1,521,866
NET POSITION
Held in trust for others 675,715 (1,279,114) (603,399)
Total Net Position 675,715$ (1,279,114)$ (603,399)$
CITY OF SARATOGA
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
June 30, 2024
126
West Valley
Clean Water Arrowhead
Program CFD Total
Additions:
Assessments 735,896$ 108,956$ 844,852$
Charges for services 320,523 320,523
Interest 41,307 41,307
Total additions 1,097,726 108,956 1,206,682
Deductions:
Community Development 1,048,880 1,048,880
Amortization 20,863 20,863
Interest Expense 4,191 100,984 105,175
Total deductions 1,073,934 100,984 1,174,918
Change in net position 23,792 7,972 31,764
Net Position - June 30, 2023 651,923 (1,287,086) (635,163)
Net Position - June 30, 2024 675,715$ (1,279,114)$ (603,399)$
CITY OF SARATOGA
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended June 30, 2024
127
128
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129
STATISTICAL SECTION
City of Saratoga
Net Position by Component
Last Ten Years
(accrual basis of accounting)
(amounts expressed in thousands)
2024 2023 2022 2021 2020
Primary government
Governmental activities
Net investment in capital assets 117,043$ 116,948$ 117,017$ 117,671$ 117,086$
Restricted 10,464 9,688 8,910 1,727 1,689
Unrestricted 23,572 21,507 26,521 17,091 16,572
Total primary government 151,079$ 148,143$ 152,448$ 136,489$ 135,347$
Source: ACFR
Fiscal Year
$100,000
$110,000
$120,000
$130,000
$140,000
$150,000
$160,000
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Position by Component
Net investment in capital assets Restricted Unrestricted
130
2019 2018 2017 2016 2015
115,250$ 113,053$ 111,241$ 112,030$ 112,092$
2,718 2,596 2,375 2,242 2,138
15,825 13,693 13,438 13,837 6,691
133,793$ 129,342$ 127,054$ 128,109$ 120,921$
Fiscal Year
131
City of Saratoga
Changes in Net Position
Last Ten Years
(accrual basis of accounting)
(amounts expressed in thousands)
2024 2023 2022 2021 2020
Expenses:
Governmental activities:
General and intergovernmental services 9,535$ 8,922$ 4,381$ 7,287$ 7,071$
Public safety 8,195 7,745 7,197 6,735 6,355
Public works 12,225 16,598 9,309 12,530 11,340
Community services 821 1,501 532 966 865
Community development services 3,002 4,127 1,881 3,263 2,727
Interest on long-term debt (unallocated)175 248 274 289 308
Total governmental activities expenses 33,953 39,141 23,575 31,070 28,666
Program revenues:
Charges for services:
General and intergovernmental services 602 95 58 80 57
Public safety 17 420 573 330 340
Public works 150 884 3,280 2,404 2,056
Community services 836 356 282 136 240
Community development services 4,637 2,287 2,306 2,396 1,906
Operating grants and contributions 2,439 3,178 7,381 564 72
Capital grants and contributions 1,397 208 335 1,091 1,595
Total governmental activates program revenues 10,078 7,428 14,215 7,001 6,266
Net (expense) revenue and change in net position (23,875) (31,713) (9,360) (24,069) (22,400)
General revenue and other changes in net assets
Taxes:
Property taxes 19,079 17,694 17,428 16,294 16,056
Sales taxes 1,254 1,381 1,394 926 1,056
Local taxes 2,383 1,589 1,055 869 807
Franchise taxes 2,643 3,443 2,497 2,338 2,605
Motor vehicle in-lieu - - - - 25
Total Taxes 25,359 24,107 22,374 20,427 20,549
Intergovernmental 1,603 2,183 2,477 2,838 2,602
Investment earnings 2,089 696 (300) 34 623
Other revenues 69 422 768 1,912 180
Total general revenues 29,120 27,408 25,319 25,211 23,954
Change in net position 5,245 (4,305) 15,959 1,142 1,554
Net position - beginning of year 145,833 152,448 136,489 135,347 133,793
GASB 68 adjustment - - - - -
Net position - beginning of year, as adjusted 145,833 152,448 136,489 135,347 133,793
Prior Period Adjustments (2,309)
Net position - end of year 151,079$ 145,833$ 152,448$ 136,489$ 135,347$
Source: ACFR
Fiscal Year
132
2019 2018 2017 2016 2015
6,465$ 6,010$ 6,450$ 5,143$ 7,566$
6,005 5,728 5,444 4,787 4,850
10,271 7,943 9,164 6,181 6,273
1,287 1,594 1,557 1,582 1,589
2,198 2,285 2,906 2,012 1,962
334 359 367 381 391
26,560 23,919 25,888 20,086 22,631
107 152 153 98 122
467 368 327 310 354
2,376 2,397 2,462 3,004 2,474
736 914 1,071 1,114 952
1,815 2,343 2,127 2,397 2,234
95 90 223 165 107
3,631 219 1,062 183 785
9,227 6,483 7,425 7,271 7,028
(17,333) (17,436) (18,463) (12,815) (15,603)
15,250 14,124 12,264 11,549 10,669
1,207 1,125 1,185 1,189 1,224
896 960 857 898 866
2,290 2,166 2,171 2,069 2,070
15 16 13 12 13
19,658 18,391 16,490 15,717 14,842
1,223 802 589 718 1,023
698 319 124 101 67
205 212 205 273 237
21,784 19,724 17,408 16,809 16,169
4,451 2,288 (1,055) 3,994 566
129,342 127,054 128,109 120,921 129,256
- - - 3,193 (8,901)
129,342 127,054 128,109 124,114 120,355
133,793$ 129,342$ 127,054$ 128,109$ 120,921$
Fiscal Year
133
City of Saratoga
Fund Balances of Governmental Funds
Last Ten Years
(Modified accrual basis of accounting)
(amounts expressed in thousands)
2024 2023 2022 2021 2020
General fund:
Nonspendable -$ -$ 4$7$-$
Restricted - - - 63 113
Committed 1,000 1,000 1,000 1,000 1,000
Assigned 5,998 7,335 7,229 6,518 5,845
Unassigned 11,046 6,828 7,177 7,634 7,477
Total general fund 18,044$ 15,163$ 15,410$ 15,222$ 14,435$
All other governmental funds:(26)
Restricted
Special revenue funds 5,087$ 8,548$ 8,105$ 873$788$
Debt service 1,013 910 805 791 788
Committed
Capital project funds 12,572 6,324 7,545 5,764 4,717
Total all other governmental funds 18,672$ 15,782$ 16,455$ 7,428$ 6,293$
Match Table 4 changes in fund balances, check previous years
Source: ACFR
Fiscal Year
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
General -
Nonspendable
General -
Restricted
General -
Committed
General -
Assigned
General -
Unassigned
Special
Revenue
Debt Service Capital
Projects
Fund Balances of Governmental Funds
2024
2022
2021
2020
2019
2018
2017
2016
2015
134
2019 2018 2017 2016 2015
-$ -$ -$ -$ -$
163 213 263 313 363
1,000 1,000 790 1,000 1,000
5,399 3,705 3,272 2,672 2,854
8,117 8,216 6,659 6,655 5,589
14,679$ 13,134$ 10,984$ 10,640$ 9,806$
1,622$ 1,385$ 1,153$ 1,006$ 868$
933 998 959 923 907
3,252 3,537 5,085 4,716 3,859
5,807$ 5,920$ 7,197$ 6,645$ 5,634$
Fiscal Year
135
City of Saratoga
Governmental Activities Tax Revenues by Source
Last Ten Years
(accrual basis of accounting)
(amounts expressed in thousands)
2024 2023 2022 2021 2020
Tax revenues:
Property taxes 19,079$ 17,694$ 17,428$ 16,294$ 15,356$
Special assessments 1,553 1,506 - 1,332 1,174
Sales taxes 1,253 1,381 1,394 926 1,057
Local taxes 2,382 1,589 1,055 869 807
Franchise taxes 2,643 3,443 2,497 2,338 2,605
Motor vehicle in-lieu - - - - 25
Total tax revenues 26,910$ 25,613$ 22,374$ 21,759$ 21,024$
Source: ACFR
Fiscal Year
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
Property taxes Special
assessments
Sales taxes Local taxes Franchise taxes Motor vehicle in-
lieu
Tax Revenues by Source
2024
2022
2021
2020
2019
2018
2017
2016
2015
136
2019 2018 2017 2016 2015
14,475$ 13,247$ 12,264$ 11,549$ 10,669$
1,205 1,333 1,270 1,222 1,220
1,207 1,125 1,185 1,189 1,224
881 960 857 898 866
2,290 2,166 2,171 2,068 2,069
15 16 14 12 13
20,073$ 18,847$ 17,761$ 16,938$ 16,061$
Fiscal Year
137
City of Saratoga
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2024 2023 2022 2021 2020
Revenues:
Property taxes 19,079$ 17,694$ 17,428$ 16,294$ 15,356$
Special assessments 1,554 1,446 1,362 1,332 1,174
Sales taxes 1,254 1,381 1,394 925 1,057
Other local taxes 2,643 602 1,055 869 807
Licenses and permits 1,354 987 3,859 2,764 2,042
Fines and forfeitures 49 60 113 82 112
Intergovernmental - federal 295 224 7,251 740 1,035
Intergovernmental - state 3,093 1,950 1,933 1,879 1,819
Intergovernmental - other 617 1,597 1,010 1,874 2,082
Franchise fees 1,030 3,442 927 2,338 2,605
Use of money any property 2,089 4,110 2,497 216 916
Other revenues 69 208 20 2,015 1,394
Current services charges 6,242 697 757 960 -
Total tax revenues 39,368 34,398 39,606 32,288 30,399
Expenditures:
Current:
General and intergovernmental services 8,371 6,492 5,516 5,773 5,261
Public safety 8,195 7,725 7,197 6,735 6,355
Public works 11,009 14,191 7,516 7,299 6,919
Community services 678 1,255 1,031 972 962
Community development services 2,620 3,067 2,885 2,878 2,545
Capital outlay 1,876 1,751 5,397 5,866 7,270
Debt service:- - -
Principal 610 580 565 545 525
Interest and fiscal charges 237 259 281 298 321
Total expenditures 33,596 35,320 30,388 30,366 30,158
over (under) expenditures 5,773 (921) 9,217 1,922 241
Other financing sources (uses):
Transfers in 5,401,254 4,959 3,046 3,467 4,817
Transfers out (5,401,254) (4,959) (3,046) (3,467) (4,817)
Total other financing sources (uses)- - 220 - -
Net change in fund balances 5,773$ (920)$ 9,438$ 1,923$ 242$
Debt as a percentage of noncapital expenditures 2.67%2.50%2.88%3.00%3.18%
Source: ACFR
Debt as percentage of noncapital expenditures calculated by dividing total debt service expenditures by total noncapital expenditures
Fiscal Year
138
2019 2018 2017 2016 2015
14,475$ 13,247$ 12,264$ 11,549$ 10,669$
1,205 1,333 1,270 1,222 1,220
1,207 1,125 1,185 1,189 1,224
896 960 857 898 866
2,360 2,677 1,908 2,216 1,613
127 127 171 248 175
3,375 181 954 158 651
1,777 1,253 1,053 1,182 1,538
241 136 222 76 97
2,290 2,166 2,171 2,068 2,070
1,148 779 651 647 557
2,081 2,397 2,203 2,709 2,589
- - - - -
31,182 26,381 24,909 24,162 23,269
5,205 4,585 4,372 4,246 6,624
6,005 5,705 5,444 5,226 4,860
6,535 6,085 6,002 5,701 5,381
1,397 1,292 1,573 1,475 1,328
2,309 2,247 2,324 2,193 2,087
7,458 4,747 3,450 2,591 3,253
- -
500 485 475 500 495
341 362 373 385 395
29,750 25,508 24,013 22,317 24,423
1,432 873 896 1,845 (1,154)
3,397 3,397 3,580 1,768 785
(3,397) (3,397) (3,580) (1,768) (785)
- - - - -
1,433$ 874$ 897$ 1,845$ (1,153)$
3.77%4.29%4.23%4.67%4.20%
Fiscal Year
139
City of Saratoga
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
(Property Tax Rate per $100 of Assessed Value)
2024 2023 2022 2021 2020
General 1.0000 1.0000 1.0000 1.0000 1.0000
County Retirement Levy 0.0388 0.0388 0.0388 0.0388 0.0388
County Library 0.0024 0.0024 0.0024 0.0024 0.0024
City of Saratoga 0.0042 0.0044 0.0044 0.0046 0.0040
Total 1.0454 1.0456 1.0456 1.0458 1.0452
Campbell School District - - - 0.0220 0.0235
County Bond 2008 Hospital 0.0055 0.0063 0.0061 0.0069 0.0069
Co. Housing Bond 2016 0.0095 0.0108 0.0127 - 0.0100
Campbell Elementary 2002 0.0270 0.0270 0.0160 0.0139 0.0146
Campbell Elementary 2010 0.0295 0.0295 0.0295 0.0153 0.0131
Campbell Elementary 2016 0.0107 0.0107 0.0217 0.0160 0.0160
Campbell Union High 1999 0.0075 0.0082 0.0105 0.0097 0.0098
Campbell Union High 2006 0.0073 0.0085 0.0071 0.0097 0.0100
Campbell Union High 2016 0.0218 0.0234 0.0245 0.0245 0.0238
West Valley Community College District 2004 0.0068 0.0074 0.0080 0.0084 0.0081
West Valley Community College District 2012 0.0124 0.0095 0.0101 0.0104 0.0105
Cupertino Elementary School District - - 0.0123 0.0123 -
Moreland Elementary School District - - - - -
Saratoga School District - - - - -
Campbell Union High School District - - - - -
Fremont Union High School District - - - - -
Los Gatos-Saratoga Joint Union High School District - - - - -
Foothill-DeAnza Community College District - - - - -
Saratoga Fire District - - - - -
West Valley Mission Community College District 2018 0.0103 0.0114 - - 0.0110
Santa Clara Valley Water District - State Water Project 0.0041 0.0044 0.0051 0.0037 0.0041
Santa Clara Valley Water District - Zone W-1 - - - - -
Mid Peninsula Open Space 2014 0.0012 0.0013 0.0015 0.0015 0.0016
Total 0.1536 0.1584 0.1651 0.1543 0.1630
Total Tax Rate 1.1990 1.2040 1.2107 1.2001 1.2082
Source: Santa Clara County Auditor data, Avenu Insights & Analytics
Fiscal Year
140
2019 2018 2017 2016 2015
1.0000 1.0000 1.0000 1.0000 1.0000
0.0388 0.0388 0.0388 0.0388 0.0388
0.0024 0.0024 0.0024 0.0024 0.0024
0.0046 0.0056 0.0060 0.0065 0.0070
1.0458 1.0468 1.0472 1.0477 1.0482
0.0175 0.0244 0.0294 0.0220 0.0235
0.0072 0.0082 0.0086 0.0088 0.0091
0.0105 0.0127 - - -
0.0085 0.0148 0.0258 0.0196 0.0172
0.0240 0.0158 - 0.0136 0.0145
0.0172 0.0122 - --
0.0111 0.0120 0.0126 0.0119 0.0130
0.0108 0.0119 0.0126 0.0138 0.0154
0.0268 0.0280 - - -
0.0089 0.0096 0.0096 0.0118 0.0101
0.0190 0.0104 0.0100 0.0114 0.0019
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
0.0042 0.0062 0.0086 0.0057 0.0065
- - - - -
0.0018 0.0009 0.0006 0.0008 -
0.1675 0.1671 0.1178 0.1194 0.1112
1.2133 1.2139 1.1650 1.1671 1.1594
Fiscal Year
141
City of Saratoga
Assessed Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Total
Year Total Less: Total Taxable Direct
Ended Residential Commercial Industrial Other Unsecured Assessed Tax Exempt Assessed Tax
June 30 Property Property Property Property Property Property Real Property Value Rate
2024 19,366,742$ 147,892$ 11,656$ 556,269$ 55,325$ 20,137,884$ (313,706)$ 19,824,179$ 1.1990
2023 18,411,360$ 179,011$ 11,428$ 486,416$ 49,376$ 19,137,591$ (303,008)$ 18,834,583$ 1.2040
2022 17,069,857$ 175,367$ 11,204$ 481,442$ 50,249$ 17,788,119$ (292,483)$ 17,495,636$ 1.2107
2023 16,412,783$ 173,142$ 11,089$ 469,087$ 49,306$ 17,115,407$ (295,705)$ 16,819,702$ 1.2001
2020 15,671,996$ 164,159$ 10,872$ 458,536$ 48,661$ 16,354,224$ (236,668)$ 16,117,556$ 1.2082
2019 14,899,703$ 160,219$ 10,658$ 460,375$ 45,669$ 15,576,624$ (233,581)$ 15,343,043$ 1.2133
2018 14,000,116$ 154,592$ 10,449$ 440,188$ 39,751$ 14,645,096$ (244,172)$ 14,400,924$ 1.2139
2017 13,227,811$ 141,391$ 10,245$ 426,257$ 45,838$ 13,851,542$ (232,279)$ 13,619,263$ 1.1650
2016 12,581,463$ 134,321$ 11,143$ 397,318$ 50,193$ 13,174,438$ (232,693)$ 12,941,745$ 1.1640
2015 11,775,973$ 117,466$ 11,737$ 361,202$ 56,354$ 12,322,732$ (242,724)$ 12,080,008$ 1.1671
2014 11,158,775$ 113,915$ 11,684$ 352,830$ 59,684$ 11,696,888$ (238,683)$ 11,458,205$ 1.1688
Santa Clara County Assessor data, MuniServices, LLC
Source: Santa Clara County Auditor data, Avenu Insights & Analytics
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2024 2023 2022 2023 2020 2019 2018 2017 2016 2015 2014
Total Assessed Property
Unsecured
Other
Industrial
Commercial
Residential
142
City of Saratoga
Principal Property Taxpayers
Current Year and Nine Years Ago
June 30, 2024
(amounts expressed in thousands)
% of Total % of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Pulte Home Company LLC 54,750,000$ 1 0.28%
Humboldt Fields LLC Et Al 50,198,355$ 2 0.25%
San Jose Water Works 30,604,294$ 3 0.15% 20,572,515$ 2 0.17%
Keller John IV Trustee & Et Al 19,273,937$ 5 0.10% 14,541,036$ 3 0.12%
Osheanic Capital LLC 16,420,492$ 4 0.08%
Zhu Huican Trustee & Et Al 15,465,536$ 6 0.08%
HJJ LLC 14,643,943$ 7 0.07% 12,367,000$ 5 0.10%
Ctr Partnership LP 14,492,667$ 8 0.07%
Pak Yong Kil Trustee & Et Al 14,079,513$ 9 0.07%
Argonaut Associates,LLC 13,026,885$ 10 0.07% 11,041,185$ 6 0.09%
Krishnamurthi Ashok Trustee & Et Al 12,921,171$ 0.07% 9,454,000$ 8 0.08%
Kriens Scott Trustee & Et Al 12,770,816$ 0.06%
Sordello Steven J And Susan L Trustee 12,065,822$ 0.06%
Public Storage Inc 11,656,490$ 0.06% 9,892,962$ 7 0.08%
Chen Juanping And Shao Yongyi 11,584,990$ 0.06%
Jayavant Rajeev And Mendez Ana M 11,507,361$ 0.06%
Wunderling John M Trustee 11,485,699$ 0.06%
Fan Colin 11,324,084$ 0.06% 8,000,000$ 0.07%
Martin Philip M Trustee & Et Al 10,965,000$ 0.06%
Hammerwood LLC 10,664,100$ 0.05%
Lindholm John E Trustee & Et Al 9,980,840$ 0.05%
Chen Lee Trustee 9,761,211$ 0.05% 7,288,315$ 0.06%
Jain Ashok K Trustee & Et Al 9,688,486$ 0.05% 8,222,701$ 10 0.07%
Huang Qian Trustee 9,685,773$ 0.05%
Vitaldevara Krishna C and Janaswamy Sri 9,586,520$ 0.05%
SHP Saratoga II LLC 57,553,624$ 1 0.48%
Stormin Norman LLC 12,657,203$ 4 0.10%
Morrison Terri E Trustee 9,184,496$ 9 0.08%
Balakrishnan Balu Mohini Trust 8,121,738$ 0.07%
JF Plaza Partners L P 7,770,881$ 0.06%
Klayko Michael A Trustee 7,434,895$ 0.06%
Coyote Properties IV LLC 7,341,900$ 0.06%
Harari Eliyahou Britt M Truste 7,312,333$ 0.06%
Duc Daniel A Lynn K 7,268,030$ 0.06%
John Carole Freitas LLC 7,159,859$ 0.06%
Russo Ray A Sr Trustee 6,862,509$ 0.06%
Mathur Rakesh Dipti B Trustee 6,817,674$ 0.06%
Zhang Rachelle Gao 6,800,200$ 0.06%
Stolle Bryan D Trustee 6,761,107$ 0.06%
Oak Creek Partners LLC 6,600,000$ 0.05%
Jalan Rajkumar R Poonam R Trus 6,499,300$ 0.05%
Top Ten Total Assessed Value 408,603,985$ 2.06% 273,525,463$ 2.26%
City Total Assessed Value 19,824,178,924$ 12,080,008,082$
Source: Santa Clara County Auditor data, Avenu Insights & Analytics
2024 2015
143
City of Saratoga
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year Total Tax Collections in
Ended Levy for Subsequent
June 30 Fiscal Year Amount Percentage Years Amount Percentage
2024 19,078,883$ 19,078,883$ 100.0%-$ 19,078,883$ 100.0%
2023 17,694,182$ 17,694,182$ 100.0%-$ 17,694,182$ 100.0%
2022 17,427,588$ 17,427,588$ 100.0%-$ 17,427,588$ 100.0%
2021 16,294,043$ 16,294,043$ 100.0%-$ 16,294,043$ 100.0%
2020 15,356,471$ 15,356,471$ 100.0%-$ 15,356,471$ 100.0%
2019 14,475,102$ 14,475,102$ 100.0%-$ 14,475,102$ 100.0%
2018 13,247,030$ 13,247,030$ 100.0%-$ 13,247,030$ 100.0%
2017 12,263,575$ 12,263,575$ 100.0%-$ 12,263,575$ 100.0%
2016 11,549,213$ 11,549,213$ 100.0%-$ 11,549,213$ 100.0%
2015 10,669,281$ 10,669,281$ 100.0%-$ 10,669,281$ 100.0%
2014 9,737,144$ 9,737,144$ 100.0%-$ 9,737,144$ 100.0%
Source: City of Saratoga
Collected within the
Fiscal Year of the Levy Total Collections to Date
144
City of Saratoga
Ratios of Outstanding Debt by Type
Last Ten Years
(amounts expressed in thousands, except per capita amounts)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Governmental activities
General obligation bonds 5,775$ 6,385$ 6,965$ 7,530$ 8,075$ 8,600$ 9,100$ 9,585$ 10,060$ 10,560$
Net original issue premium 175 197 219 241 263 285 306 328 350 372
Total primary government 5,950$ 6,582$ 7,184$ 7,771$ 8,338$ 8,885$ 9,406$ 9,913$ 10,410$ 10,932$
Percentage of Personal Income1 0.13% 0.16% 0.21% 0.26% 0.29% 0.32% 0.35% 0.40% 0.45% 0.47%
Per capita2 193 215 234 254 269 283 299 324 344 355
Source: ACFR
1US Census Bureau, adjusted for inflation, Avenu Insights & Analytics
2Population information from California State Controller's Office
Fiscal Year Fiscal Year
145
City of Saratoga
Ratios of General Bonded Debt Outstanding
Last Ten Years
(amounts expressed in thousands, except per capita amounts)
2024 2023 2022 2021 2020
General obligation bonds 5,775$ 6,385$ 6,965$ 7,530$ 8,075$
Net original issue premium 175 197 219 241 263
Less: Amount available in debt service fund (1,013) (910) (805) (790) (788)
Total primary government 4,937$ 5,672$ 6,379$ 6,981$ 7,550$
Percentage of actual taxable
value of property 0.05% 0.05% 0.06% 0.06% 0.06%
Per capita 1 160 186 208 229 243
Source: ACFR
1Population information from California State Controller's Office
Fiscal Year
146
2019 2018 2017 2016 2015
8,600$ 9,100$ 9,585$ 10,060$ 10,560$
285 306 328 350 372
(933) (998) (959) (923) (906)
7,952$ 8,408$ 8,954$ 9,487$ 10,026$
0.06% 0.06% 0.06% -3.91% -4.29%
253 267 293 314 326
Fiscal Year
147
City of Saratoga
Legal Debt Margin Information
Last Ten Years
(amounts expressed in thousands)
2024 2023 2022 2021 2020
Debt Limit 3,017,859$ 2,866,279$ 2,668,218$ 2,611,667$ 2,453,134$
Total net debt applicable to limit 4,937 5,672 6,160 6,740 7,287
Legal debt margin 3,022,796$ 2,871,951$ 2,674,378$ 2,618,407$ 2,460,421$
Total net debt applicable to the limit
as a percentage of debt limit 0.16% 0.20% 0.23% 0.26% 0.30%
Legal debt margin calculation
Assessed value 19,871,183$ 18,881,148$ 17,495,636$ 17,115,407$ 16,117,556$
Add back: exempt real property 313,706 303,007 292,483 295,705 236,668
Total assessed value 20,184,889$ 19,184,155$ 17,788,119$ 17,411,112$ 16,354,224$
Debt limit (15% of total assessed value)3,027,733$ 2,877,623$ 2,668,218$ 2,611,667$ 2,453,134$
Debt applicable to limit:
General obligation bonds 5,775$ 6,385$ 6,965$ 7,530$ 8,075$
Net original issue premium 175 197 219 241 263
Less: Amount available in debt service fund (1,013) (910) (805)(790)(788)
Total net debt applicable to limit 4,937$5,672$ 6,160$ 6,740$ 7,287$
Legal debt margin 3,022,796$ 2,871,951$ 2,662,058$ 2,604,927$ 2,445,847$
Source: ACFR
Fiscal Year
148
2019 2018 2017 2016 2015
2,336,494$ 2,196,764$ 2,077,731$ 1,976,166$ 1,848,410$
7,667 8,102 8,626 9,137 9,654
2,329,207$ 2,188,662$ 2,069,105$ 1,967,029$ 1,838,756$
0.33%0.37%0.42%0.46%0.52%
15,343,044$ 14,400,924$ 13,619,263$ 12,941,745$ 12,080,008$
233,581 244,172 232,279 232,693 242,724
15,576,625$ 14,645,096$ 13,851,542$ 13,174,438$ 12,322,732$
2,336,494$ 2,196,764$ 2,077,731$ 1,976,166$ 1,848,410$
8,600$ 9,100$ 9,585$ 10,060$ 10,560$
285 306 328 350 372
(933)(998)(959)(923)(906)
7,667$ 8,102$ 8,626$ 9,137$ 9,654$
2,328,827$ 2,188,662$ 2,069,105$ 1,967,029$ 1,838,756$
Fiscal Year
149
City of Saratoga
Direct and Overlapping Governmental Activities Debt
(amounts expressed in thousands)
2023-24 Assessed Valuation 19,871,183$ Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable1 Debt
Direct and Overlapping Tax and Assessment Debt:
City of Saratoga 5,775$ 100.000% 5,775$
City of Saratoga Community Facilities District No. 2016-1 1,452 100.000% 1,452$
Santa Clara County 956,770 3.010% 28,799
Foothill-De Anza Community College District 640,179 1.335% 8,546
West Valley Community College District 663,040 8.858% 58,732
Campbell Union High School District 336,185 5.528% 18,584
Fremont Union High School District 737,130 2.979% 21,959
Los Gatos-Saratoga Joint Union High School District 78,180 37.552% 29,358
Campbell Union School District 250,309 6.744% 16,881
Cupertino Union School District 235,883 5.509% 12,995
Moreland School District 100,974 12.724% 12,848
Saratoga Union School District 11,791 85.563% 10,089
Saratoga Fire Protection District 1,666 97.328% 1,621
Midpeninsula Regional Open Space District 80,700 4.891% 3,947
Santa Clara Valley Water District Benefit Assessment 29,235 3.010%880
Total Overlapping Tax and Assessment Debt 232,467$
Overlapping General Fund Debt:
Santa Clara County General Fund Obligations 1,057,709$ 3.010% 31,848$
Santa Clara County Pension Obligations 323,734 3.010% 9,744
Santa Clara County Board of Education COP 12,073 3.010%363
Santa Clara County Vector Control District COP 945 3.010%28
West Valley-Mission College District General Fund Obligations 2,520 8.858%223
Campbell Union High School District General Fund Obligations 13,500 5.528%746
Campbell Union School District General Fund Obligations 1,230 6.744%83
Cupertino Union School District General Fund Obligations 40,233 5.509% 2,216
Saratoga Union School District COP 1,455 85.563% 1,245
Santa Clara County Central Fire Protection District General Fund Obligations 27,130 15.441% 4,189
Midpeninsula Open Space Park District General Fund Obligations 79,796 4.891% 3,903
Total Overlapping General Fund Debt 54,579
Less: Santa Clara County Supported Obligations (80)
Total Net Overlapping General Fund Debt 54,499$
Total Direct Debt 5,775$
Gross Total Overlapping Debt 281,271$
Net Total Overlapping Debt 281,191$
Gross Combined Total Debt 2 287,046$
Net Combined Total Debt 286,966$
Ratios to 2023-24 Assessed Valuation:
Direct Debt ($5,775,000) 0.03%
Total Direct and Overlapping Tax and Assessment Debt 1.17%
Gross Combined Total Debt 1.44%
Net Combined Total Debt 1.44%
Source: Avenu Insights & Analytics and California Municipal Statistics, Inc.
1 The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the
overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
2 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
150
City of Saratoga
Demographic and Economic Statistics
Last Ten Years
Per Capita
Fiscal City Personal Personal Labor Unemployment
Year Population1 Income2 Income2 Force3 Rate3
2024 30,819 4,428,290 143,687 14,700 3.6%
2023 30,567 3,925,823 128,433 14,900 3.3%
2022 30,667 3,376,774 110,111 14,800 1.7%
2021 30,546 2,928,264 95,864 14,000 5.0%
2020 31,030 2,755,859 88,813 13,600 6.5%
2019 31,407 2,681,900 85,392 15,000 2.0%
2018 31,435 2,597,561 82,633 15,000 2.8%
2017 30,569 2,374,919 77,690 14,600 2.7%
2016 30,219 2,239,926 74,123 14,700 2.9%
2015 30,799 2,248,481 73,005 15,100 2.7%
Source: Avenu Insights & Analytics
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Per Capita Income Data is provided by the United States Census Data and is adjusted for inflation.
Personal Income has been restated from prior years.
3.) Unemployment and Labor Force Data are provided by the EDD's Labor Market Information Division.
10,000
15,000
20,000
25,000
30,000
35,000
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
LABOR FORCE VS. POPULATION
Population Labor Force
151
City of Saratoga
Principal Employers
Last Fiscal Year and Nine Years Ago
June 30, 2024
Employer Number of
Employees Rank
Percentage of
Total City
Employment
Number of
Employees Rank
Percentage of
Total City
Employment
West Valley Community College 472 1 3.21% 408 1 2.70%
Saratoga Retirement Community 318 2 2.16% 275 2 1.82%
Saratoga Union School District 210 3 1.43% 240 3 1.59%
The Villas at Saratoga (formerly Our Lady of Fatima Villa) 189 4 1.29% 108 8 0.72%
Saratoga High School (Los Gatos-Saratoga UHSD)149 5 1.01% 124 6 0.82%
Sub-Acute Saratoga Children's Hospital 148 6 1.01%- 5 0.00%
Prospect High School (CUHSD)121 7 0.82% 101 9 0.67%
Saint Andrew's Episcopal School 84 8 0.57%- 0.00%
City of Saratoga 56.5 9 0.38%- 0.00%
Saratoga Country Club 55 10 0.37%- 0.00%
Mountain Winery - 214 4 1.42%
YMCA - 133 7 0.88%
Safeway - 83 10 0.55%
Total Top 10 Employers 1,803 12.26% 1,686 11.18%
Total City Employment1 14,700 15,100
Source: Avenu Insights & Analytics
Source: 2015 data from previously published ACFR
Results based on direct correspondence with city’s local businesses.
*Includes all personnel, full and part time.
1 Total City Labor Force provided by EDD Labor Force Data.
2024 2015
152
City of Saratoga
Full-Time Equivalent City Governmental Employees by Function
Last Ten Fiscal Years
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Function
General government 15.55 15.75 15.25 14.90 15.15 14.65 14.55 13.65 13.70 13.70
Public works 23.50 23.50 23.50 23.50 23.50 21.75 21.15 20.65 20.65 20.65
Community development 16.25 16.00 15.50 15.50 16.00 12.00 12.50 12.00 12.00 12.00
Community services 1.20 2.00 3.00 3.00 2.25 8.70 8.30 8.35 9.55 9.55
Total 56.50 57.25 57.25 56.90 56.90 57.10 56.50 54.65 55.90 55.90
Source: City of Saratoga Budget Document
Fiscal Year Fiscal Year
-
10
20
30
40
50
60
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Full-Time Equivalents
General Gov't Public Works Comm Dev.Comm Services
153
City of Saratoga
Operating Indictors by Function
Last Ten Fiscal Years
2024 2023 2022 2021 2020
Function
Part 1 crimes1 237 230 225 241 241
Total incidents 28,039 40,758 31,003 37,652 37,652
Police reports 801 827 832 837 837
Public Works
Street resurfacing (miles)6 9 2 5 5
Street lights repaired 14 17 15 10 10
Potholes filled (sq. ft.)12,000 12,000 12,000 8,000 8,000
Community Development
Total permit valuation ($000)184,359 169,864 113,151 80,513 80,513
Parks and Recreation2
Classes, trips (enrollment) community events - - - -
Youth Programs 2,032 1,906 1,503 655 655
Adult Programs 845 669 617 679 679
Sports programs (e.g. Adult basketball, softball)- - - - -
Preschool programs (enrollment)- - - - -
Staffed Day/summer camps (enrollment)- - 217 146 146
Teen/youth council (enrollment)- - - 265 927
Senior center (enrollment/attendance days)- - - - 24,336
1 Part 1 Crimes are the following as reported to DOJ: homicide, rape, robbery, burglary, assault, theft,
auto theft, and arson.
2 Beginning in FY 2019/20, the City outsourced Recreation Services to Los Gatos-Saratoga Community
Education and Recreation (LGS).
Source: City of Saratoga various records
Fiscal Year
154
2019 2018 2017 2016 2015
289 190 301 463 315
31,955 32,222 38,893 39,213 40,695
885 927 1,295 1,334 917
8 - - 15.2 2.5
12 15 37 33 39
11,000 9,000 13,000 21,010 10,500
82,722 128,062 106,631 75,599 89,929
3,632 5,769 5,081 5,898 8,390
1,497 1,072 968 853 791
731 2,082 2,824 2,099 1,650
- - - - -
448 224 221 180 186
- 129 71 172 90
1,049 848 747 673 605
10,063 10,786 12,941 12,269 15,221
Fiscal Year
155
City of Saratoga
Capital Asset Statistics by Function
Last Ten Fiscal Years
2024 2023 2022 2021 2020
West Valley Sanitation District
Number of Connections 9,198 9,128 9,128 9,063 9,060
Length of Sewer Lines (miles) 126 126 126 126 126
District Lower Sanitary Sewer Laterals (miles)42
Cupertino Sanitation District
Number of Connections 2,432 2,429 2,429 3,003 3,003
Length of Sewer Lines (miles)42 42 42 37 37
Parks and Recreation
Parks Acreage 148 148 148 148 148
Parks 16 16 16 16 16
Source: City of Saratoga various records
Fiscal Year
156
2019 2018 2017 2016 2015
9,058 9,051 8,563 8,488 8,402
126 126 126 129 128
3,003 3,000 3,000 2,999 2,963
37 37 37 37 37
148 148 148 148 84
16 16 16 16 15
Fiscal Year
157