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HomeMy WebLinkAbout FY 2025-26 Adopted Operating and Capital Budget Book City of Saratoga, California Operating and Capital Budget Fiscal Year 2025-26 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 2 PAGE LEFT BLANK INTENTIONALLY CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 3 FISCAL YEAR 2025-26 CITY COUNCIL ADOPTED BUDGET CITY COUNCIL Belal Aftab, Mayor Chuck Page, Vice Mayor Kookie Fitzsimmons Tina Walia Yan Zhao 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 BUDGET PREPARATION TEAM Andres Murillo, Administrative Analyst Frances Reed, Administrative Analyst Shaheen Sarwari, Administrative Analyst CONTACT INFORMATION City of Saratoga - Administrative Services Director 13777 Fruitvale Avenue - Saratoga, California 95070 www.saratoga.ca.us CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 4 TABLE OF CONTENTS 2025-26 Adopted Budget INTRODUCTORY PAGE City Manager’s Budget Message Transmittal letter 7 2024-25 Major Accomplishments 10 2025-26 Major Initiatives 11 Adopted Budget Summary 12 Organization Chart 13 CITY OVERVIEW Mission Statement 18 Location 19 History 20 Demographics 23 Resident Services 24 Governance 27 Strategic Goals & Objectives 29 Fiscal Stewardship 31 Annual Budget Process 36 BUDGET DISCUSSION General Fund Overview 40 General Fund Revenues 41 General Fund Expenditures 45 Table of Contents CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 5 OPERATING PROGRAMS PAGE City Council Programs 50 City Manager’s Department Programs 56 Administrative Services Programs 69 Community Development Programs 97 Public Works Programs 117 Community Services Programs 140 Public Safety Programs 155 Non-Departmental Programs 164 CAPITAL IMPROVEMENT PROGRAM Introduction 176 Streets Capital Program 178 Parks & Trails Capital Program 209 Facilities Capital Program 230 Administrative & Technology Capital Improvement Program 240 American Rescue Plan Act State and Local Fiscal Relief Fund (ARPA SLFRF) 255 SUPPLEMENTAL SECTION Accounting and Budgetary Structure 263 Financial Planning 273 Employee Compensation 280 Glossary 289 For additional financial resources including reports, policies, and schedules, please visit the City’s website: City Finance Documents CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 6 PAGE LEFT BLANK INTENTIONALLY City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 7 June 18, 2025 Honorable Mayor and City Council Members, It is my privilege to present the City of Saratoga’s budget for the fiscal year beginning July 1, 2025. This year’s budget reflects a balanced and strategic spending plan that sustains essential service levels while proactively addressing ongoing challenges. These challenges include significant anticipated increases in contracts for landscaping and maintenance, rising public safety expenditures, and ongoing insurance premium escalations. Notwithstanding these challenges, the budget balances competing priorities by maintaining essential services, investing in city infrastructure, and increasing funding for disaster preparedness to ensure the long-term well- being and resilience of our community. The budget process began at the City Council’s January retreat, where the multi-year financial forecast revealed that expenses are projected to grow faster than revenues, indicating a structural deficit in the coming years. The five-year forecast highlights the critical need for ongoing, strategic financial management, as both operating and capital costs are expected to outpace revenue growth. This forecast served as a foundational guide, shaping our budget planning and decision- making throughout the budget process. The City has implemented several strategies to maintain fiscal balance, including moderately conservative revenue projections, ongoing review of expenditures, and prioritization of critical infrastructure and safety projects. The 2025-26 budget assumes moderate continued building activity which generates cost recovery in Charges for Services. $1 million of excess Educational Revenue Augmentation Fund (ERAF) is included in the property tax budget, although county estimates are $1.2 million. Excess ERAF continues to be at risk as the State Controller’s Office is engaged in ongoing litigation with Santa Clara county to potentially claw back the funds. Budget requests were reviewed under the lens of the projected structural deficit, and City staff worked to refine cost estimates to achieve a balanced budget. Capital projects were analyzed for potential outside funding sources, and adjusted to increase grant and outside funding opportunities where appropriate. City staff will continue to work to identify potential funding opportunities through federal, state, and local grants on key projects. The City’s capital improvement program (CIP) for 2025-26 totals $12.1 million, with $3.7 million allocated from the General Fund and $8.4 million from dedicated revenues and grants. The CIP funding increased compared to prior years, with $3.9 million of funding from grants for traffic and pedestrian crossing projects. City Council created a new priority project for Park and Trail Fire mitigation, and increased funding from $100,000 to $349,100. The project will receive priority funding of $200,000 annually in future years. Other notable projects include significant investments in traffic safety and electric vehicle infrastructure. The Council has also increased City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 8 funding for hillside stabilization from $250,000 to $500,000, reflecting the community’s commitment to resilience and public safety. Our dedication to the City’s long-term financial stability and investment in critical infrastructure continues beyond the adoption of the 2025-26 budget. At the direction of City Council, staff are analyzing potential long-term financial strategies to strengthen the City’s fiscal outlook. This analysis includes a thorough review of protective services, landscaping and maintenance contracts, insurance costs, and various support programs, as well as an examination of historical financial data to guide decision-making. To address the projected structural deficit, we are working closely with the Santa Clara County Sheriff’s Office, the City of Cupertino, and the Town of Los Altos Hills to explore ways to manage and stabilize our law enforcement contract, which is the City’s second-largest expense. With the current contract set to expire on June 30, 2026, our focus over the next year will be on developing a sustainable, long-term solution that ensures the Sheriff’s Office can continue delivering reliable, responsive, and high-quality public safety services to our community. I want to express my appreciation to the City Council and City staff for their outstanding partnership in developing this budget. The Council continues to advance long-term financial strategies to reduce structural expenditures while strategically investing in key capital projects. Throughout the budget process, City staff identified opportunities for cost reductions. While our work continues, I am confident we will navigate these challenges and build a financially sustainable future for Saratoga. Respectfully submitted, Matt Morley Matt Morley City Manager City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 9 PAGE LEFT BLANK INTENTIONALLY City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 10 2024-25 Major Accomplishments 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 2025-26 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 2025-26 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. City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 11 2025-26 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 255. With about $4 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. The Village project is a key area of focus, and all funds need to be expended by December 2026. Park and Trail Fire Mitigation In response to the devastating losses from the recent Los Angeles wildfire, the City Council established a new priority capital project focused on Park and Trail Fire Mitigation. Funding for this project will be used to remove brush and dead trees, creating defensible space between City- owned land and private properties to reduce wildfire risk and improve community safety. For the 2025-26 fiscal year, the budget allocates $349,100 to this initiative, with a recommendation to provide $200,000 in priority funding for each subsequent year. These actions align with the City’s broader efforts to enhance wildfire resilience and address the urgent need to protect both public and private lands from future fire threats. Tree Maintenance Implementation Building on the development of the Tree Inventory, the City will implement a proactive tree maintenance program in 2025-26. Using the new tree management software, City staff will schedule and track regular inspections, pruning, and necessary removals to ensure the health and safety of street and public property trees. This data- driven approach will enable timely responses to potential hazards, support long-term urban forest health, and improve resource allocation. Business System Improvements Key improvements in business systems for 2025-26 include DocuSign integration with Laserfiche for contract management, and integration of eFinance and eTRAKiT for financial reporting. Online Applications & Permit Processing Saratoga continues to refine and promote online services. In 2025-26 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, and make some permits and business licenses available to the public online thru the new eTRAKiT system. City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 12 ADOPTED BUDGET SUMMARY Fund July 1, 2025 Est. Beginning Balances Revenues (Expenditures) Transfers In / (Out) June 30, 2026 Est. Ending Balances General Fund $19,223,465 $32,555,809 ($32,487,340)($3,600,000)$15,691,934 Special Revenue Funds L&L ALPR Districts 2,941 106,817 (106,419)3,340 Landscape & Lighting Districts (L&L 167,314 244,362 (317,014)94,662 Landscape Districts 617,925 363,770 (584,705)396,989 Lighting Districts 26,458 7,698 (10,789)23,367 Storm Drain Districts 129,803 7,605 (26,320)111,087 Special Revenue Funds Total 944,441 730,253 (1,045,247)629,446 Debt Service Funds Community Facility District Bonds (1,333,641)108,000 (117,530)(1,343,171) General Obligation Bonds 719,459 800,000 (842,273)677,186 Debt Service Funds Total (614,182)908,000 (959,803)(665,985) Capital Improvement Funds et bo Streets Capital 7,732,597 3,125,000 (5,910,000)2,785,000 7,732,597 Parks Capital 2,831,899 3,605,000 (4,259,100)654,100 2,831,899 Facilities Capital 130,763 224,100 (275,000)50,900 130,763 Admin & Technology Capital 478,444 1,875,000 (1,985,000)110,000 478,444 ARPA/ SLFRF Capital 1,919,958 0 Capital Improvement Funds Total 13,093,661 8,829,100 (12,429,100)3,600,000 11,173,703 Internal Service Funds Buildings & Facilities 1,933,016 1,440,000 (1,519,807)1,853,210 Information Technology 942,966 846,000 (1,369,086)419,880 Liability & Workers' Comp 1,043,389 2,408,000 (2,038,185)1,413,204 Vehicles & Equipment 1,350,617 550,000 (854,141)1,046,476 Internal Service Funds Total 5,269,988 5,244,000 (5,781,220)4,732,769 All Funds Total $37,917,373 $48,267,162 ($52,702,710)$0 $31,561,867 2025-26 Budget Funds Summary City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 13 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 Population 29,607 2023 Census Estimated City Council Belal Aftab, Mayor Chuck Page, Vice Mayor Tina Walia Kookie Fitzsimmons Yan Zhao City Council Appointed Commissions & Committees City Manager Matt Morley City-wide Totals $39.3 million Operating Budget $12.4 million Capital Budget 56.6 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. City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 14 AUTHORIZED PERSONNEL Department / Program 2021-22 2022-23 2023-24 2024-25 2025-26 City Manager's Department City Manager's Office 2.30 2.30 2.35 2.35 2.35 City Clerk 1.10 1.10 1.10 1.10 1.10 Public Information Office 1.10 1.10 1.10 1.10 1.10 Total 4.50 4.50 4.55 4.55 4.55 Administrative Services Administrative Services 1.10 1.10 1.10 1.00 1.00 Finance 5.25 5.25 5.25 5.50 5.50 Human Resources 1.65 1.65 1.65 1.45 1.50 Information Technology 2.25 2.25 2.25 2.15 2.15 Risk Management 0.30 0.30 0.30 0.45 0.45 Workers' Compensation 0.20 0.20 0.20 0.20 0.20 Total 10.75 10.75 10.75 10.75 10.80 Community Development Development Services 4.65 4.65 4.65 4.65 4.85 Advanced Planning 0.80 0.80 0.80 0.80 0.95 Code Compliance 1.55 1.55 1.55 1.55 1.10 Building Inspection 6.00 6.00 6.00 6.00 6.10 Facilities Maintenance 2.50 2.50 3.25 3.00 3.00 Total 15.50 15.50 16.25 16.00 16.00 Public Works General Engineering 4.75 5.00 5.00 5.10 5.75 Development Engineering 0.40 0.40 0.40 0.40 0.40 Environmental Services 1.70 1.70 1.70 1.85 1.25 Streets 7.55 7.30 7.30 7.30 7.30 Parks 8.35 8.35 8.35 8.35 8.35 Vehicle & Equipment Maint 0.75 0.75 0.75 0.75 0.75 Total 23.50 23.50 23.50 23.75 23.80 Community Services Recreation 0.05 0.05 0.05 0.05 0.05 Facility Rentals 1.55 1.55 0.00 0.00 0.00 Community Engagement 1.15 1.15 1.15 1.15 1.15 Total 2.75 2.75 1.20 1.20 1.20 Public Safety Emergency Preparedness 0.25 0.25 0.25 0.25 0.25 Total 0.25 0.25 0.25 0.25 0.25 All Programs Total 57.25 57.25 56.50 56.50 56.60 Authorized Full Time Equivalent (FTE) Personnel In the 2025-26 budget, the FTE allocation for the Administrative Analyst in Public Works and the Human Resource Analyst will each increase from 0.75 to 0.8. City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 15 Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Saratoga, California, for its Annual Budget for fiscal year beginning July 1, 2024. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of fiscal year beginning July 1, 2024 only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 16 PAGE LEFT BLANK INTENTIONALLY City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 17 ENABLING RESOLUTIONS Presented in the order of budgetary impact Resolution No. 25-034 Budget Adoption Resolution No. 25-035 Library Series 2011 General Obligation Bonds Debt Service 2025-26 Tax Levy Resolution No. 25-033 Arrowhead Community Facility District Bond Debt Service 2025-26 Tax Levy Resolution No. 25-032 2025-26 Appropriations Limit City Manager’s Budget Message CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 18 STATEMENT OF VALUES The City of Saratoga strives to maintain a high quality of life for its residents through careful planning and infrastructure maintenance, through activities to build community, and by providing opportunities for extensive citizen participation in community issues. Succinctly, the statement of values for our City is that: Saratoga is a Community…. Where the common good prevails; Where diversity and inclusivity are celebrated; Where the community values, respects, and actively supports the well-being of seniors, families, and people of all abilities; Where neighbors and community members work together for the common good; Where the natural beauty of the City and its hillsides is preserved; Where historic assets are preserved and promoted; Where value is placed on an attractive, well maintained, and well-planned community, with a small town, residential atmosphere; Where homes and neighborhoods are safe and peaceful; Where local businesses provide a vibrant presence in the Village and the other commercial areas; Where desirable recreational and leisure opportunities are provided; Where quality education is provided and valued; Where the arts and cultural activities which serve the community and the region are promoted; Where government provides high quality, basic services in a cost-effective manner; Where government values community involvement; Where leadership reflects community goals; and Where, because of the forgoing, the citizens and the families of Saratoga can genuinely enjoy being a part of and proud of this special community. MISSION STATEMENT Provide essential services which protect health, safety, and welfare, and satisfy the community’s desires to maintain its quality of while practicing fiscal responsibility. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 19 City Overview Located in the foothills of the Santa Cruz Mountains, approximately 26 miles east of the Pacific Coast, 10 miles southwest of San Jose, and 50 miles south of San Francisco, the City of Saratoga runs along the western edge of Santa Clara County. Saratoga is an attractive, residential community with a small-town feel in the midst of the world- famous Silicon Valley. It is the gateway to several distinctive destinations. The Village, Saratoga’s historic downtown district, features restaurants, shopping, galleries, a history museum, and landmarks. www.facebook.com/SVDC.Saratoga Hakone Estate and Gardens is a City of Saratoga park. The oldest Japanese-style residential gardens in the Western Hemisphere, Hakone Gardens is also a center for culture and art. www.hakone.com Villa Montalvo, is host to an art gallery, an artist-in-residence program, concerts, plays, public and private events, and 175 acres of park grounds and hiking trails. www.montalvoarts.org The Mountain Winery, a landmark winery and event venue, hosts special events, wine tastings, and world-class concerts. www.mountainwinery.com LOCATION City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 20 It began with a sawmill Although the incorporated City of Saratoga dates back only to 1956, the town had its beginning more than a century earlier when William Campbell began building a sawmill operation here in 1847 about two and one- half miles above the present downtown village, along what is now State Highway 9. Having spent the winter of 1846/47 in the abandoned adobe buildings of Mission Santa Clara, Campbell correctly surmised that the settlers who were beginning to come to the Santa Clara Valley would want to build sturdy wood houses, reminiscent of the homes they had left in the East. William Campbell saw opportunity in the Santa Cruz Mountain timber, and the settlement that would later become Saratoga owes its start and early development to that vision. William Campbell’s sawmill operation was delayed however after another millwright constructing a sawmill at the western base of the Sierra mountains, a hundred and fifty miles northeast, found gold flakes in the American River, touching off the 1849 California Gold Rush. In 1850, a young Irishman named Martin McCarty leased the sawmill Campbell had started and set about to improve its access by building a road to the site. To recoup his investment, McCarty erected a tollgate near the present intersection of Third Street and Big Basin Way and charged a fee for the use of the road. It was common practice in those early days for roads to be built on a private-enterprise basis, then after a period of time, counties would take them over and maintain them as public thoroughfares. In McCarty's case, although the tollgate was only used for about a year, it was sufficient for the settlement to be known as Tollgate for some years afterward. Due to the natural resources in the area, the town had a brief industrial era. With the settlement situated on a stream and an abundance of lumber products, a furniture factory, a tannery where harness and leather goods were manufactured, and paper mills were all built along the stream. And, with Santa Clara Valley’s growing wheat production, several flour mills were also built. Due to the collection of mills, the settlement was known for a short time as Bank Mills. HISTORY CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 21 City Overview During the 1850’s local mineral springs with a chemical content similar to that of Congress Spring at Saratoga Springs, New York was discovered below where the sawmill was located, in a small canyon off what is now known as Saratoga Creek. The property was owned by a group of financiers headed by Darius Ogden Mills, and eventually a resort was built in the grand manner of the famous eastern spa. The elaborate resort hotel Pacific Congress Springs flourished for almost forty years until it was destroyed by fire in 1903. The mountain setting and mild climate had made Saratoga a popular resort area, and the resort image lingered through succeeding years, even as agriculture became the dominant industry in Saratoga and the Santa Clara Valley. And while Campbell’s Gap, Tollgate, McCartysville, and Bank Mills were at various times used as settlement names, the community eventually settled on ‘Saratoga’ in 1865. In the latter part of the 1800’s, the area's fertile soil and available land developed into another industry - agriculture. Apricots, cherries, and French prunes were particularly well-suited to Saratoga's soil and climate. Starting in the late 1860’s, the planting of deciduous fruit trees increased until it became the chief means of livelihood for the whole region. During the late 1880’s, the hillsides were found to be amenable to viticulture and many wineries were established. In 1890, Saratoga became the home of the world- renowned Paul Masson Winery. Convinced that the rich California soil could produce grapes for champagnes comparable to those of France, the French immigrant Masson brought grape cuttings from his native land to plant on the hillsides. Over time, Saratoga had developed into a pleasant village and became the trading center for the surrounding vineyards and fruit-growing farms. During the early 1900's, Saratoga had an enviable reputation as a highly desirable place to live. The Interurban Rapid Transit of the day began service which connected Saratoga with the rest of the Santa Clara Valley and beyond. Saratoga soon became a haven for wealthy San Franciscans who came to build elegant hillside homes overlooking the lush valley. One of these was the palatial Mediterranean- style home of the United States Senator James Phelan. His Villa Montalvo is now a center for the cultural arts. After World War II, the valley’s rapid urbanization changed the character of Saratoga from agricultural to suburban. As space technology and the defense and electronics industries were established in nearby communities, Saratoga's open land soon became more valuable for homes for the rapidly growing population, than it was for City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 22 vineyards and fruit orchards, although some vineyards and a few scattered orchards do remain as a reminder of the bygone era. The City of Saratoga strives to maintain these elements of its natural beauty and colorful past through careful zoning policies and historic preservation. Public interest was stirred to new heights in the mid-1950s when, with orchards giving way to subdivisions, the annexation designs of the City of San Jose became obvious. As a result of this concern, Saratogans voted to incorporate in 1956 and to establish their own city government. Saratoga Today The City of Saratoga, as it exists today, is an attractive residential community of 30,546 (January 1, 2021) known for its excellent schools and prestigious neighborhoods. The community’s historic downtown district, known as "The Village", has distinctive dining, unique shops, and numerous buildings dating back to the late 1800’s and early 1900’s. Saratoga residents place an emphasis on historical preservation, and on retaining the quality of the city’s semi-rural ambiance. The City also is home to Villa Montalvo, the beautiful and palatial former home of Senator James Duval Phelan which now hosts an art gallery, an artist in residence program, concert performances, park trails and grounds. It serves as a desirable wedding venue, and reservations must be made a year in advance. Another local gem adjacent to City limits is the former Paul Masson homestead and winery in the Saratoga foothills, now known as the “Mountain Winery.” This high-end event venue features world-class concerts each spring and summer and is known for its stunning open-air backdrop and both hillside and valley views. Hakone Gardens, the oldest Japanese-style residential garden in the Western Hemisphere, is another beautiful park and desirable wedding venue. The garden lies just outside of the Village and is maintained and run by the Hakone Foundation. The Foundation offers classes, festivals, Japanese culture, and peaceful, contemplative walks as one strolls through the finely manicured gardens. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 23 City Overview DEMOGRAPHICS 11,124 Households 1 • $241,348 median household income • $2,000,000+ median value of owner- occupied house units • 2.80 persons per household 30,486 Residents1 • 2.1% persons under 5 years of age • 19.2% persons under 18 years of age • 25.9% persons 65 years of age and over • 51.0% female persons • 81.2% bachelor’s degree or higher Race 1 • 59.5% Asian • 34.2% White non-Hispanic or Latino • 4.6% Two or more races • 2.5% Hispanic or Latino • 0.2% American Indian and Alaska Native • 0.1% Black or African American Source: 1 US Census Estimate 2 City of Saratoga ACFR as of June 30, 2024 14,700 Total City Employment 2 Top 5 employers: • West Valley Community College • Saratoga Retirement Community • Saratoga Union School District • The Villas at Saratoga • Saratoga High School (Los Gatos- Saratoga UHSD) City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 24 The City of Saratoga’s budget includes appropriations for a limited portfolio of public services as detailed below. In addition, community members are served by several other governmental and for-profit companies including fire, utilities, and schools. CITY SERVICES Learn about the many City services available to Saratoga residents and businesses on the “How Do I” webpage. Community Development Community Development guides the physical growth of the City and preserves the community’s quality of life by administering zoning regulations, providing building inspections, code enforcement, arborist services, and ongoing advanced planning activities to maintain the City’s General Plan. The department also supports the City’s business community. Learn more on the Community Development Department webpage. Public Works Public Works oversees engineering and capital project functions; reviews the public’s development plans for engineering and geological oversight; maintains the City’s parks, trails, medians, right-of-way, grounds, bridges, and landscape districts; repairs and maintains the roadways system including streets, traffic and pedestrian signals, lighting, and storm drains; provides vehicle maintenance oversight and minor maintenance; and ensures the City’s environmental responsibilities are fulfilled, including externally-driven responsibilities under the Clean Water Act and solid waste mandates. Learn more on the Public Works Department webpage. Information about city infrastructure is on the Current Projects webpage. Public Safety The City of Saratoga contracts for law enforcement services with the Santa Clara County Sheriff’s Office. Services include traffic, patrol, and general law enforcement, as well as ancillary programs to educate the community on crime prevention, traffic safety, and emergency response. Animal control services, including licensing, animal control, and field and shelter services, are provided on contract by the City of San Jose Animal Care and Services Division (SJACS). Sheriff’s Office: Information about Santa Clara County Sheriff’s Office services and activities in are on the Sheriff’s Office webpage on the City website. Animal Control Services (San Jose Animal Care and Services (SJACS): www.sanjoseca.gov The City’s Emergency Preparedness Program is coordinated by City staff to support both City and community emergency response efforts in the event of a significant earthquake, fire, or other natural or man- made disasters, and coordinates with various emergency services agencies and utilities to prepare residents for self- sufficiency and proper response to emergency events. More information is on the Emergency Preparedness webpage. RESIDENT SERVICES CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 25 City Overview General Administration The City Manager’s Department supports the Council’s legislative and policy interests, provides management and leadership, and direction for the City organization. The City Manager’s Department also supports Commissions, interacts with community groups, fosters community relationships, and provides public awareness of municipal programs, services, and goals through effective community outreach, using avenues including the City website, media relations, social media, and various publications. https://www.saratoga.ca.us/234/City- Managers-Department Administrative Services provides internal support including finance, human resources, and information technology services to all City departments and operations. https://www.saratoga.ca.us/180/Administrati ve-Services OTHER RESIDENT SERVICES Saratoga residents are served by several other public agencies and organizations to complete the portfolio of resident services. Fire The Saratoga Fire Protection District and Santa Clara County Fire District (SCCFD) provide fire services to the Saratoga community. Both Districts are operated by the Santa Clara County Fire Department. The SCCFD serves Santa Clara County and the communities of Campbell, Cupertino, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno and Saratoga. https://www.sccfd.org/ Library The Santa Clara County Library District serves the cities of Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Milpitas, Monte Sereno, Morgan Hill, Saratoga, and the unincorporated areas of the County. www.sccld.org/locations/saratoga Recreation Programs, Facility & Field Rentals Saratoga contracts with Los Gatos Saratoga Recreation (LGS Recreation) for recreation services. www.lgsrecreation.org Schools Saratoga students are served by six school districts in and around the City of Saratoga. Depending on where you live in the city, the public school your children attend may be located nearby, but outside the City limits. Saratoga Union School District www.saratogausd.org Los Gatos-Saratoga High School District www.lgsuhsd.org Cupertino Union School District www.cusdk8.org Campbell Union High School District www.cuhsd.org Fremont Union High School District www.fuhsd.org Campbell Union School District www.campbellusd.org City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 26 UTILITIES Electricity and Natural Gas Pacific Gas and Electricity (PG&E) provides electric and natural gas to the Saratoga community. On February 2, 2016, the Saratoga City Council approved joining a countywide Community Choice Energy partnership, Silicon Valley Clean Energy (SVCE), which provides an option for residents to purchase 100 percent clean energy. PG&E www.pge.com SVCEwww.svcleanenergy.org Garbage and Recycling West Valley Collection & Recycling is the exclusive recycling, green waste and garbage hauler for Campbell, Los Gatos, Monte Sereno, and Saratoga. www.westvalleyrecycles.com Sewer West Valley Sanitation District provides wastewater collection and disposal services for the cities of Campbell, Monte Sereno, Los Gatos, much of Saratoga, and some unincorporated areas of the county within the district boundary. Cupertino Sanitary District provides sewer service to customers within the communities of Cupertino, portions of Saratoga, Sunnyvale, Los Altos, and unincorporated areas within Santa Clara County. www.westvalleysan.org Water Founded in 1866, San Jose Water is an investor-owned utility, and is one of the largest and most technically sophisticated urban water systems in the United States. www.sjwater.com CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 27 City Overview CITY COUNCIL The City of Saratoga was incorporated in 1956 and operates under a Council/Manager form of government. City Councilmembers are elected to staggered four-year terms and annually select a member of City Council to serve as mayor and vice-mayor. City Council appoints two City officials: City Manager and City Attorney. City Council also appoints members to the Planning Commission and several advisory bodies. More information is on the City Council webpage. City Council Bodies Finance Advisory Committee – The Finance Advisory Committee (previous formats included the Finance Committee and the Finance Commission) was originally formed in 1981 to advise the City Council on financial matters pertaining to the governing of the City, as well as on the use of fiscal resources and the development of technology for the City. In 2007, the Council reconstituted the Finance Commission as a Finance Committee to review financial matters with the City's Administrative Services Director in preparation for the City Council meetings. In 2016-17, the Council restructured the Committee as a “Committee of the Whole” to allow all Council Members to attend Finance Committee meetings and comment if they so desire, although only the two appointed members may vote on recommendations. The two appointed Council members each serve one-year terms of office; meetings are held monthly or on an as-needed basis. In 2024, the committee name was changed to Finance Advisory Committee, to clarify its advisory status. More information is on the Finance Advisory Committee webpage. Disaster Council – The Disaster Council is comprised of the Mayor, City Manager, Assistant Director of Emergency Services, and City department heads. The primary responsibility of the Disaster Council is to develop the City’s Emergency Operations Plan and recommend changes to the Plan for City Council consideration as needed. More information is on the Disaster Council webpage. City Council Appointed Commissions and Committees Planning Commission – The seven (7) member Planning Commission advises Council on land use matters such as the General Plan and specific plans, zoning, and subdivisions. The Commission plans for the future orderly physical development of the City and informs and educates the public on current land use and urban planning issues. In many areas, the Planning Commission also acts as a legislative body in making determinations within the framework of applicable State laws and City ordinances. Ultimate decisions on land use reside with the City Council. Members are required by State law to file an annual statement of economic interests. More information is available on the Planning Commission webpage. Heritage Preservation Commission – The Heritage Preservation Commission, comprised of seven (7) members, functions as a liaison working in conjunction with the Council, the Planning Commission, and the agencies and departments of the City to implement the City's Heritage Preservation Ordinance. The Commission's scope includes property surveys within the boundaries of the City of Saratoga for the purpose of establishing an official inventory of heritage resources and recommending to the City Council specific proposals for designation as a historic landmark, heritage lane or historic district. One member is nominated by the Saratoga Historical Foundation and two members must be trained and experienced in the field of construction and structural rehabilitation, such as a licensed architect, engineer, contractor, or urban planner. More City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 28 information is on the Heritage Preservation Commission webpage. Library and Public Art Commission – The seven (7) member Library & Public Art Commission serves as an advisory body on library and art policies, budgets, plans and procedures to the City Council, City staff, the Santa Clara County Library staff, and Friends of the Saratoga Library. The Commission also provides counsel and recommendations to the City Council on public art, including supporting cultural and artistic programs in the community, and fostering a stronger, more inclusive community. The Commission has no administrative authority over the library’s operations but does participate in the general planning for library operation and library- related programs and policies. Info: Library and Public Art Commission Parks and Recreation Commission – The Parks and Recreation Commission, consisting of five (5) members, advises the Council on matters that relate to parks and recreation. Principally, the commission serves as a conduit between the public and the Council, assesses public input, collects information, and makes recommendations to the Saratoga City Council. More information is on the Parks and Recreation Commission webpage. Pedestrian, Equestrian, and Bicycle Trails Advisory Committee – It is the mission of the Pedestrian, Equestrian, and Bicycle Trails Advisory Committee to advise the city regarding the planning, acquisition, and development of trails and sidewalks and to maintain the trails network to enhance the quality of life in Saratoga. The number of committee members vary over time, depending on interest. More information is on the Trails Advisory Committee webpage. Traffic Safety Commission – The Traffic Safety Commission investigates, reviews, and analyzes traffic safety issues raised by the Community members and Public Safety Agencies. The five (5) members meet on a bi-monthly basis to provide a venue for the public to express concerns regarding traffic safety matters. The Commission makes recommendations to the City regarding traffic safety. More information is on the Traffic Safety Commission webpage. Youth Commission – The Youth Commission is comprised of eleven (11) middle and high school students appointed by the City Council for two-year terms. The rotating appointments ensure both first- and second-year members are on the commission. Commissioners participate in community activities and serve as a liaison between the teen community and the City Council. More information is on the Youth Commission webpage. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 29 City Overview On January 24, 2025, the Saratoga City Council convened for its annual retreat to review and refine the city's strategic goals and objectives. This retreat provided an opportunity for council members to reflect on past accomplishments, address current challenges, and set priorities for the coming year in a collaborative and forward-thinking environment. Strategic Goals and Objectives support the City’s vision, and mission, and represent the foundation on which City Council makes decisions. The below list of goals and objectives are considered overall long-term guidance upon which shorter-term departmental objectives and general direction is developed and implemented within the City’s budget workplan. STRATEGIC GOALS & OBJECTIVES Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvements: •Strengthen the City’s fiscal health and stability •Preserve essential services •Effectively manage revenue streams •Expend and use fiscal resources responsibly •Maintain fund balance reserves •Nurture an environment which attracts, retains, and expands economic opportunities •Support externally funded community infrastructure improvements II. Fiscal Stewardship Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high-quality leadership for the community: •Responsive and accountable to the community •Effective City leadership •Organization performance management •Transparent government •Civic engagement •Community partnerships I. City Leadership Provide for a safe and secure community: •Preservation of life and property •Crime prevention •Wildfire prevention •Emergency preparedness III. Public Safety Maintain the City's facilities and public infrastructure in a safe and sustainable manner to address the functional needs of our residents in a cost-effective manner: •Excellent street system •Safe, well-functioning, and beautiful roadway Infrastructure •Well-maintained, safe parks •Useful and safe trails and open space •Clean, safe, and pleasant City facilities •Well-maintained vehicles and equipment IV. Facilities & Infrastructure City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 30 Honor Saratoga's heritage by preserving significant historic assets: •Enhance policies to maintain the City's historic heritage •Enhance standards to maintain architectural attractiveness •Protect Saratoga's natural beauty V. Community Heritage Proactively support environmental sustainability efforts: •Protect and optimize the City's natural resources and environment through sustainable practices •Establish and implement comprehensive, long- range environmental sustainability goals and policies •Embrace environmentally friendly practices •Educate the community on environmental issues •Reduce the City’s carbon footprint VII. Environmental Sustainability Foster a culturally enriched and diverse culture and engaged community: •Enhance community vibrancy and engagement •Enhance and promote quality of life in the community •Promote health as a community value •Cultivate organizational and leadership potential in the community •Foster a business-friendly environment •Strengthen Saratoga as an age friendly city VI. Community Enrichment CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 31 City Overview The City of Saratoga strives to achieve fiscal sustainability and has adopted several policies included in the Reference Section of this document. The following narrative summarizes the City Council adopted fiscal stewardship policies. The full policy is available online at www.saratoga.ca.us/FinancialDocuments. MAJOR RESERVES The following summarizes the City Council’s adopted fiscal sustainability policies that support the City’s approach to balancing the need for quality services to today’s community members while planning for anticipated and unanticipated financial needs that may impair the City’s ability to continue service to the community. Reserve Purpose and Funding Policy Annual Funding Goal Est. Balance 7/1/25 Hillside Stability Reserve To provide funding for emergency or extraordinary costs related to hillside degradation inclusive of slide prevention and mitigation, slide repair, and associated drainage and roadwork that must commence before the end of the fiscal year. $100,000, if balance falls below $1 million. $1.00 million Road & Facility Replacement Reserve To accrue funding for the major rehabilitation or replacement of City- owned roads, buildings, and structures. $500,000 $3.70 million Future Capital Improvement Program Reserve To accrue funding for future Capital Improvement Program (CIP) projects using General Fund operating surplus remaining after other funding goals. n/a $3.60 million Fiscal Stabilization Reserve To accrue funds for temporary budget stabilization caused by fiscal downturns, natural disasters, legislative action, claim loss. $100,000, if operating surplus is more than $1 million. $3.15 million FISCAL STEWARDSHIP City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 32 OPERATIONAL RESERVES Operational reserves are distinguished from Major Reserves in that the reserves are intended to fulfill commitments arising out of City operations. City Council establishes a threshold level based on operation. FINANCIAL POLICIES The City Council of Saratoga has established detailed financial policies to guide daily operations and future planning. Here are summaries of several significant policies: ASSETS Cash and Investments – The City follows a Council-approved Investment Policy that aims for fiscal security and sets investment risk levels within the City's defined security restrictions and investment objectives. The Investment Policy is reviewed and adopted by the Council annually, aligning with the State's California Debt and Investment Advisory Commission (CDIAC) guidelines. Fund reserves and excess operational funding requirements are deposited in the California State Treasurers’ Local Agency Investment Fund (LAIF) or CalTRUST, a Joint Powers Authority local government investment pool, unless explicitly approved by the City Council to invest in other vehicles as allowed by the Investment Policy. Administrative Services oversees Treasury functions and provides monthly Treasurer's Reports on City funds, investments, and interest earnings. Fixed Assets & Infrastructure – Tangible assets with a cost equal to or greater than $10,000 and a useful life of more than one Reserve Purpose and Funding Policy Annual Funding Goal Est. Balance 7/1/24 Carryforward Reserve To provide funding for year- end purchases that will record as a transaction in the next fiscal year and cannot be accrued to the prior year. As necessary at year end. $0.10 million Working Capital Reserve To accrue sufficient funds to meet General Fund obligations for sixty (60) days and avoid use of short-term borrowing for cashflow management. As necessary to maintain a $1 million balance at year-end. $1.00 million Compensated Absences Reserve To accrue funds to smooth expenditure fluctuations resulting from the payout of accrued leave to employees at their separation from city employment. One-third (1/3) of the liability as calculated each June 30. $0.33 million CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 33 City Overview year are considered fixed assets and included in the capitalization schedules. Repairs and maintenance of infrastructure assets are typically not capitalized unless they extend the asset's useful life. The City maintains a long-term fiscal perspective through a five-year Capital Improvement Program, which focuses on maintaining the quality of City infrastructure. Internal Service Fund programs are also utilized to maintain and replace operational infrastructure, such as City buildings, fixtures, equipment, vehicles, public works equipment, and technology-related equipment. Asset information is retained to facilitate the preparation of financial statements in accordance with Generally Accepted Accounting Principles (GAAP) and compliance with Governmental Accounting Standards Board (GASB) Statement No. 34 requirements. LIABILITIES Pension Liabilities – In pursuit of prudent fiscal practices and long-term financial sustainability, the City employs various strategies to mitigate the overall cost of pension benefits and prior-year liabilities. These strategies include offering lower-tier pension benefits for new employees, making lump sum prepayments, and accelerating unfunded pension liability payments. Long-Term Debt – Saratoga's debt policy adheres to State regulations and accounting standards. The City does not typically incur debt for operational or capital improvements. In exceptional circumstances, the City may seek voter approval for bonded debt, either city-wide or through Community Facility Districts. FUND BALANCE The City reserves a portion of its funds for future use to maintain fiscal stability, ensure orderly government operations, provide services to residents, and mitigate current and future risks. The City Council determines when and whether to appropriate available funds to and from a reserve account based on specific directions in the annual budget or separate City Council actions, unless otherwise specified by policy. Adequate reserves are maintained for all known liabilities and established City Council and community-directed initiatives, reflecting responsible fiscal stewardship. REVENUES Cost Recovery (User Fees) – Saratoga's Fee Schedule catalogs fees charged for services to the community, with varying levels of general taxpayer support. Planning and building services provided by the Community Development department aim for full cost recovery for certain land uses and improvements that primarily benefit the property owner. However, other services provided by Community Development offer greater community-wide benefits, and the City Council policy sets a lower cost recovery for those services, such as code compliance and event permits. The most recent comprehensive review of user fees and the cost of services was completed in 2022. The fee schedule establishes fees in Community Development to achieve an overall cost recovery for planning and building services of up to 90%. Annual escalators may be considered by the City Council to ensure that fees remain reasonably current with underlying personnel costs. Grants and Donations - The City recognizes the value of grants and donations in extending existing services, introducing new initiatives, enhancing artistic and cultural infrastructure, implementing technological advances, and subsidizing programmatic staffing for various purposes such as public safety, recreational activities, development support, social services, homeland security, and economic efforts. Saratoga actively pursues federal, state, local, foundation, business, and private grants that align with the City's priorities and provide a benefit, considering grant requirements. City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 34 EXPENDITURES Expenditure Budget Management - Expenditures must adhere to the City's purchasing policy, travel policy, credit card policy, contract policy, public contract code, state or federal law, and other applicable guidelines or regulations. Expenditure management occurs at the program level. The City Manager has the authority to transfer appropriations within a fund in the adopted budget, while the City Council retains authority for appropriation increases and decreases, transfers between funds, and scope and funding changes to Capital Improvement Program (CIP) projects. Capital Improvement Program - The City maintains five Capital Improvement Program (CIP) project areas that are comprised of multiple discrete projects. Unspent project funds carryover automatically from year to year, restricted to the project receiving the original appropriations unless directed otherwise by City Council through a formal budget amendment. In the case of some projects, the City may appropriate funds over serval years sufficient to accumulate the necessary amount to complete a project. The City Council has established a policy that allocates all revenue received in the budget year with a roadway nexus to fund the Pavement Management Program. For the 2025-26 fiscal year, the total revenue from various sources with a roadway nexus amounts to $3.1 million. This includes revenue generated from State Gas Taxes and the Roadway Rehabilitation Fund (SB1), the City's Refuse Vehicle Impact Fee, and Santa Clara County Measure B Sales Taxes. In addition to funding the Annual Pavement Management Program, the City Council has set a funding goal of $1.5 million for nine priority projects within the Capital Improvement Program. These priority projects receive special attention and resources to address their specific needs and importance to the City. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 35 City Overview CAPITAL IMPROVEMENT PROGRAM FUNDING PRIORITIES Project Name Annual Funding Goal 2025-26 Funded Level Project Description Page Annual Pavement Management Program 100% dedicated PMP revenues: Gas Taxes, Roadway Rehabilitation Fund (SB1), Refuse Vehicle Impact Fee, Santa Clara County Measure B Sales Taxes 100% dedicated revenues 181 Annual Sidewalk, Storm Drains, Curb & Gutter, and Bridge Infrastructure $250,000 100% 190 Hillside Stabilization Infrastructure $250,000 200% 207 Annual Parks, Trails, Grounds and Medians Infrastructure $250,000 100% 212 Annual Retaining Wall Infrastructure $200,000 100% 205 Park and Trail Fire Mitigation $200,000 175% 228 Annual Roadway Safety and Traffic Calming Infrastructure $150,000 100% 183 ADA Transition Plan Implementation $100,000 100% 248 *Annual Public Art Infrastructure $25,000 0% 249 Annual Hakone Gardens Infrastructure $25,000 100% 216 *In 2025-26, a one-time change was made to reduce Public Art funding by $25K, increase Hillside Infrastructure to $500K, and Park & Trail Fire Mitigation to $349K. City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 36 PURPOSE The budget serves multiple purposes and functions as a comprehensive financial plan for each fiscal year beginning July 1st. It is not only a document outlining the City's financial activities for a specific fiscal year, but also serves as a policy document, a tool for communication, and a guide to City operations. The budget focus is on long-term financial stewardship, sustainability, service delivery, and program management. It plays a crucial role in articulating the City's annual strategic plan by connecting the overall goals and objectives to the specific services and projects that the City intends to accomplish. It also highlights the resources allocated for these endeavors. To facilitate this linkage, the program-based budget presents programs organized under a main department. The program budgets identify the purpose of each program, outlines key projects, and sets workplan goals in relation to revenue and expenditure appropriations. Programs evolve year-over- year and can move between department umbrellas as operations change. This ensures transparency and accountability in the allocation and utilization of funds. The City adopts an annual budget that includes appropriations for both operating and capital improvement program expenditures for the upcoming fiscal year. The budget is presented as a summary level budget document that reflects the City's financial statements and follows industry standards and best practices. BASIS OF BUDGETING AND ACCOUNTING The budget is developed on a program basis with fund level authority, representing the services and functions provided by the City in alignment with the allocated resources for the fiscal year. The Capital Improvement Program (CIP) is funded and defined by its approved projects, and any ongoing or incomplete projects are re-appropriated into the following fiscal year. The Basis of Accounting and Budget refers to the timing factor concept in recognizing transactions. This basis plays a crucial role in the overall financial system as the budget determines the accounting system used. For example, if the budget anticipates revenues on a cash basis, only cash revenues are recorded as receipts in the accounting system. Similarly, if the budget uses an accrual basis, the accounting system follows suit. This consistency is also reflected in the City's Annual Comprehensive Financial Report (ACFR), the State Controller's Annual Cities Transactions Report, and all other report documents. Government budgets and accounting employ a mix of accounting methods. A hybrid cash and accrual accounting system known as "Modified Accrual Basis" is used, which recognizes revenues when measurable and available. Saratoga adopts the modified accrual basis, and the basis of budgeting is identical to the basis of accounting. The City considers all revenues reported in the governmental funds to be available if they are collected within 45 days after the fiscal year-end. Revenues such as licenses, property taxes, and taxpayer-assessed tax revenues (e.g., franchise taxes, sales taxes, and transient occupancy tax) are considered susceptible to accrual and recognized as revenues in the ANNUAL BUDGET PROCESS CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 37 City Overview period earned/collected. Revenues from grants and donations are recognized in the fiscal year when all eligibility requirements have been satisfied. Expenditures are recorded when the liability is incurred. Claims, judgments, compensated absences, and principal and interest on general long- term debt are recognized as expenditures to the extent that they have matured. The Modified Accrual Basis is used for governmental funds, while the full accrual basis accounting method is used for proprietary funds. Governmental Funds consist of the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds. Under this basis, revenues are estimated for the period if they are susceptible to accrual, meaning that the amounts can be determined and will be collected within the current period. Principal and interest on general long-term debt are budgeted as expenditures when due, while other expenditures are budgeted for liabilities expected to be incurred during the current period. Proprietary fund budgets are adopted using the full accrual basis of accounting. Revenue budget projections are developed by recognizing revenues expected to be earned during the period, and expenditures are developed for expenses anticipated to be incurred in the fiscal year. The City maintains one type of proprietary fund: Internal Service Funds. While not currently heavily utilized in Saratoga, Fiduciary Funds are also budgeted using the modified accrual basis. This includes Trust Funds, which are subject to trust agreement guidelines, and Agency Funds, which are held in a custodial capacity involving only the receipt, temporary investment, and remittance of resources. BUDGET PROCESS The City conducts a team-based budgeting approach, where the City Manager and Administrative Services Director guide the process, but program budgets and workplans are developed under the oversight and expertise of each department's director or program manager. This approach allows for hands-on planning and ensures a clear understanding of program goals and functions to be accomplished in the next budget year. Saratoga's City Code, Section 2-20.050(i), mandates the City Manager to prepare and submit an annual budget to the City Council. The general budget development calendar follows the outlined timeline, but it may vary based on operational and policy needs: January - The budget development process begins with the City Manager working with the City Council to develop and refine initiatives and directives for the upcoming budget year. Concurrently, a multi-year financial forecast is developed and presented for Council review during the annual Council Retreat. This forecast provides an overview of service level operations and helps guide the discussion on upcoming budget direction. The Capital Improvement Program (CIP) is also reviewed to determine funding capabilities, project priorities, and refine project workplans. CIP projects have a significant impact on the City's ongoing operations and are therefore a crucial part of financial planning. February – The budget preparation process kicks off in earnest. Budget assumptions, directives, and initiatives are provided to establish the City's overall objectives and goals. Over the next few months, staff identifies and analyzes program revenue and expenditure projections. CIP projects undergo assessment and refinement, and CIP funding and appropriation requirements are finalized. The community has an opportunity to attend Finance Advisory Committee, Planning Commission, and City Council meetings to provide input on the budget process. City Overview CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 38 March through May - Staff assembles the proposed budgets through rounds of briefings and revisions. Financial summary information is finalized, and the proposed budget document is prepared for City Council review. In accordance with Section 65401 of the State Government Code, the City's Planning Commission reviews the proposed Capital Improvement Program and reports back to the City Council regarding its conformity with the City's Adopted General Plan. May through June – The City Council considers final budget adoption through a two-step process. First, a public hearing is conducted, with notice of the hearing published in a local newspaper at least ten days prior to the hearing date. The public is invited to participate, and copies of the proposed budgets are made available for review on the City's website, in the City Manager's Office, and at the budget hearing. Final revisions directed by the Council are incorporated into the proposed budget, and the budget documents are resubmitted for adoption in a publicly announced meeting before the start of the fiscal year. BUDGET AMENDMENT AUTHORITY During the fiscal year, it is possible for economic factors, changes in workplans, or unforeseen needs to arise, requiring adjustments to the adopted budgets. In such cases, the City Manager is authorized to make transfers of appropriations between categories, departments, projects, and programs within a fund, as outlined in the adopted budget. However, the City Council retains discretion over fund-level and Capital Improvement Program project appropriation changes, as well as transfers between funds. This ensures that significant changes to City operations are reviewed and approved by the governing body. By granting the City Manager the authority for intra-fund budget transfers and reserving certain decisions for the City Council, the budgeting process maintains a balance between operational flexibility and the need for oversight and accountability in managing public funds. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 39 City Overview 2025-26 BUDGET TIMELINE 1/24/2025 City Council Retreat Mid-year update and financial forecast of operating budget and Capital Improvement Program (CIP) Preview 2/11/2025 Finance Advisory Committee Financial Policies - Comprehensive review & update of City Council adopted financial policies and general financial operating policies 2/19/2025 City Council CIP Prioritization Meeting 3/10/2025 Finance Advisory Committee Financial Policies Proposed Draft Proposed Fee Changes 4/7/2025 Finance Advisory Committee Long-Term Financial Strategies Proposed Fee Changes Final Financial Policies Review 4/16/2025 City Council Fee Schedule Public Hearing 5/12/2025 Finance Advisory Committee 2025-26 draft Proposed Operating Budget Review enabling 2025-26 Resolutions: Gann Limit, General Obligation (GO) Bond Rate, and Arrowhead Assessment review Proposed Summer recess June through August) 5/21/2025 City Council 2026 Proposed Operating and Capital Budget Public Hearing 6/18/2025 City Council 2026 Operating and Capital Budget Adoption Enabling Resolutions adopted 7/1/2025 Start of fiscal 2025-26 Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 40 FY21 Actuals FY22 Actuals FY23 Actuals FY24 Actuals FY25 Estimated FY26 Budget Revenues 26,405,189 26,873,597 29,213,545 32,615,292 33,031,684 32,555,809 Expenditures 23,238,768 23,724,585 25,572,201 26,991,735 29,933,464 32,487,340 Operating Balance 3,166,421 3,149,012 3,641,345 5,623,557 3,098,219 68,469 $0 $5 $10 $15 $20 $25 $30 $35 Mi l l i o n s OVERVIEW This budget is balanced while addressing financial challenges such as rising pension costs, implementing the new maintenance plan for the City's trees, and the rising contract costs for landscaping and maintenance. Although the 2025-26 budget is balanced, it relies on $2.3 million from interest earnings and excess Educational Revenue Augmentation Fund (ERAF), both of which are subject to fluctuations in the future. The ongoing trend of expenditures outpacing revenues will continue to present challenges for maintaining a balanced budget, as illustrated in the chart below. This section provides a summary of the most impactful drivers of the General Fund’s finances. General Fund Revenue & Expenditures Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 41 GENERAL FUND REVENUES General Fund Revenues Five revenue sources make up 90 percent of Saratoga’s resources available for General Fund operations: 1) Property Tax, 2) Sales Tax, 3) Charge for Services, and 4) Interest Earnings. Other revenue categories, such as rental income, transient occupancy tax, and construction tax, are also important to the overall revenue picture, but fluctuations in these revenues do not individually impact the City’s fiscal sustainability. Property Taxes The property taxes in Saratoga play a crucial role in funding essential services such as law enforcement, public works, and general administration. The property tax system in California underwent significant changes with the passage of Proposition 13 in 1978. At that time, Saratoga was a no/low property tax city, meaning it had relatively low property tax rates compared to other cities. In Saratoga, a resident's property taxes allocated to support city services are limited to a minimum amount required by law, which ranges from $0.055 to $0.075 per $1 of base property taxes, depending on tax rate area. For example, assuming the City received $0.07 per $1 of base property tax and a property has a Prop 13 assessed value of $2.0 million, the base property tax bill would be $20,000 per year. Out of that amount, the city would receive $1,400 to fund essential services. The remaining portion of property taxes goes to other districts such as schools, fire departments, community colleges, and the County of Santa Clara to support services provided by those entities. Changes in Saratoga's base property tax revenue stem from three factors. Prop 13 allows for a maximum 2.0 percent increase in assessed values based on the California 411 -Property Taxes 20,582,155 63% 413 -Other Taxes 2,440,920 7% 416 -Franchises & Surcharges 1,203,965 4%420 - Intergovernmental 592,300 2%440 -Charges for services 6,179,389 19% 450 -Fines & penalties 46,000 0% 460 -Use of money & property 1,511,080 5% 2025-26 General Fund Revenues by Type $32.6 million Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 42 Consumer Price Index. Additionally, when a property undergoes a change in ownership, its Prop 13 assessed value adjusts to 100 percent of its market valuation, which can lead to significant increases compared to previous assessments. Finally, Prop 13 assessed values can increase by 100 percent of building improvements, such as new construction, major remodeling, or additions. Property tax revenues in California are further complicated by state actions that redirected funds away from cities to fulfill obligations to schools and reduce motor vehicle license fees. The Educational Revenue Augmentation Fund (ERAF) transfers property taxes that were previously allocated directly to local agencies, including cities and fire districts, to meet the state's education funding requirements statewide. In Santa Clara County and several other counties in California, the amount of ERAF withheld from cities exceeds the amount required by state funding formulas. As a result, cities receive a refund of the excess ERAF, which amounts to approximately $1 million in 2025-26. The calculation and distribution of excess ERAF are monitored by the Santa Clara County Controller's Office, as any changes in laws or legal cases could impact this amount. Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 43 Future distributions of excess ERAF are currently uncertain. The state and Santa Clara County are currently reviewing the distribution of the funds, with the state potentially attempting to claw back funds from the county. This poses a significant risk to future funding available for the City. Another component of the city's property taxes is known as "property tax in-lieu of vehicle license fees." This component compensates cities for the loss of vehicle license fees due to changes in state tax policies in the early 2000s. The 2025-26 budget assumes a 5.5 percent increase in base property tax revenues and projects an additional $100,000 in Excess ERAF growth. However, no increase is expected in transfer tax revenues, as these have declined in recent years due to a limited supply of properties for sale. Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 44 Franchises & Surcharges: Franchise and encroachment fees in California are charges imposed on utilities such as electricity, gas, telecommunications, and solid waste services. These fees help local agencies offset the costs of maintaining the infrastructure necessary for these utilities to operate within a city. The largest franchise fee in Saratoga is related to solid waste services provided by the West Valley Solid Waste Management Authority (WVSWMA), amounting to approximately $1.5 million in 2025-26. In 2023-24, the Zolly v. City of Oakland case raised questions about the legality of Oakland’s solid waste franchise fee, prompting cities and solid waste providers statewide to reassess these fees. A recent study, however, found that the fee could be justified as an encroachment fee. As a result, the WVSWMA expects the fee to continue. Beginning in 2024-25, this revenue is classified as encroachment revenue and reported under Charges for Services instead of Franchise Fees. Charges for Services The category includes fees, licenses, permits, and revenue generated from development activity. The 2025-26 budget includes revenue estimates that reflect fees as a result of City Council policy direction to achieve overall cost recovery in Community Development’s planning services of up to 90% overall cost recovery in the department’s building services. To arrive at revenue estimates, City staff review current and past activity. Historical activity has shown that in general, during times of economic prosperity, property values grow and both new home buyers and long-term homeowners undertake remodeling projects. During economic downturns, property values decline or become stagnant, and remodeling activity also decreases. Construction activity varies significantly from year to year and responds quickly to economic changes, making it difficult to predict using trend lines. Therefore, the 2025-26 budget for charges for services is moderately conservative, as this revenue often signals early signs of an economic downturn or recession. Other Taxes Both sales and transient occupancy taxes have fully recovered from the devastating impacts of the pandemic. For 2025-26, the budget assumes relatively flat growth from the prior year estimated actual revenue based on estimates provided by the City’s sales tax consultant showing slowed spending in fuel and food services. Use of Money & Property This category includes revenue generated from the City’s investments and the management of its assets. The primary sources are interest earnings from the City’s funds invested in the Local Agency Investment Fund (LAIF) a state-run investment pool managed by the California State Treasurer and CalTRUST, an independent joint powers authority investment pool designed specifically for California public agencies. These investment vehicles provide the City with professional portfolio management, liquidity, and diversification. Additionally, smaller sources of revenue in this category include lease payments, facility fees, and rental income from City-owned properties. Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 45 GENERAL FUND EXPENDITURES The 2025-26 General Fund budgeted expenditures show a $2.6 million increase compared to the estimated actual expenditures for 2024-25 with the majority of the increases coming from contract services and salaries and benefits. Salaries and benefits constitute 32 percent of the budgeted expenditures in the 2025-26 budget. However, when including the UAL payments, this category accounts for 38 percent of the total budget. Public Safety contract services represents the next largest portion of the budget, comprising 28 percent. Internal Service Fund charges make up 15 percent of the budget and serve as the City's reimbursement for insurance premiums, support services, and fixed asset and infrastructure replacement costs. For year-over-year comparison, it is important to note that the budget is typically based on maintaining the same level of service as the prior year, with adjustments made for expected growth or decline in costs. Certain areas, such as Sheriff Services or staff salary and benefit costs, have contractual obligations in place. Reducing these areas would necessitate personnel reductions and could impact the City's ability to provide services or maintain public safety levels. 500 -Salaries & Benefits 10,527,698 32% 529 -UAL Payoff 1,533,492 5% 610 -Operating Expenses 1,869,756 6%640 -Contract Services 3,363,530 10% 648 -Public Safety Contract Services 9,246,105 28% 650 - Professional Services 1,150,600 4% 790 -Internal Services 4,796,159 15% 2025-26 General Fund Expenditures by Type $32.5 million Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 46 Salaries and Benefits The General Fund's personnel budget, which comprises salaries and benefits, assumes full staffing throughout the year, meaning that there are no salary savings resulting from vacancies. In the past, the City has filled vacancies using contract staff, and no budget amendment is processed unless the backfill requires a net increase to the overall General Fund budget. The estimated actual expenditures for 2024- 25 include salary savings from various vacant positions that occurred during the year. The year-over-year salary increases observed in these departments, therefore, do not reflect an increase in full-time equivalent personnel but rather reflect the City's practice of assuming no vacancies during the budgeting process. The 2025-26 personnel budget reflects higher costs from rising CalPERS contributions, and partial-year increases in health and welfare benefits. It also includes a modest increase in staffing, with a 0.05 full-time equivalent personnel (FTE) increase each for the Public Works Administrative Analyst and Human Resources Analyst positions. Together, these changes add $16,000 to personnel costs compared to the previous year. Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 47 Unfunded Pension Liability Payment As of June 30, 2023, the City of Saratoga’s Miscellaneous pension plan had a funded ratio of 79.1%, according to the most recent CalPERS actuarial valuation. This means that the plan’s assets cover 79.1% of its projected pension obligations, with the remaining 20.9% representing the unfunded accrued liability (UAL). The UAL as of this valuation date is a key metric for the City’s long-term financial planning. The funded status reflects a CalPERS net investment return of 5.8% for the 2022-23 fiscal year, which was below the actuarial discount rate of 6.8%. As a result, the funded ratio decreased compared to the prior year. For the 2025-26 fiscal year, the City’s required employer contribution rates are set by CalPERS and are expected to increase moderately to address the unfunded liability and ensure the plan’s long-term sustainability. Future contribution requirements may fluctuate based on investment returns, changes in actuarial assumptions, and demographic experience. Contract Services The City has made a strategic decision to rely heavily on contract services rather than grow employee headcount to trim trees, parks, landscape and median maintenance, and supplemental staff in cost recovery programs such as Community Development. The 2025-26 budget preserves the service levels needed to achieve an 8 out of 10 rating for the City’s parks and facilities. For landscaping and maintenance contracts, the budget includes a placeholder amount to account for ongoing price increases and the uncertainty of the upcoming bidding process. Final contract costs will be determined after the budget public hearing, and any necessary budget adjustments will be made during the new fiscal year. Public Safety Contract Services Public safety remains a top priority for Saratoga City Council members and residents. Since the city's incorporation in 1956, the City has contracted with the Santa Clara County Sheriff's Office for public safety services, which has proven to be a beneficial partnership in various ways. As a small city, Saratoga saves millions of dollars annually by contracting public safety services instead of maintaining an in-house police department, which would be more costly. The City also contracts with the City of San Jose for animal control services. The Santa Clara County Sheriff's Office is a large organization with 1,300 sworn officers and the ability to allocate resources to contract cities as needed. This provides flexibility for times when additional resources are required, while keeping services at a minimum during most periods. The Sheriff's Office offers all the services that an internal police department would provide, including patrol, traffic enforcement, investigations, crime analysts, technology services, public outreach, canines, and other valuable law enforcement services. The Sheriff's Office contract provides 20,060 general law enforcement service hours, 4,195 traffic enforcement hours, 2,400 investigative hours, 68 reserve activity hours, and a full- time School Resource Officer. In the 2025-26 budget, the Public Safety contract services accounts for 28 percent of the City's General Fund budget. This is favorable compared to other Santa Clara County municipalities that allocate upwards of 40 percent or more of their General Fund budgets for in-house police services. Saratoga's cost for Sheriff Services per resident is one of the lowest, or very near the lowest, among all Santa Clara County cities each year. In addition to cost savings, the City benefits from low crime rates due to its partnership with the Santa Clara County Office of the Sheriff. Being part of a larger law Overview Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 48 enforcement organization allows deputies to be aware of criminal activity throughout the county, not just within Saratoga. This broader communication reach enables deputies and crime analysts to identify targeted areas, criminal patterns, crime activity connections, and suspects. Year after year, Saratoga is recognized for its low crime rate at both state and national levels by various public safety organizations. Fixed Assets When there are new fixed assets needed, funding is sourced from the department's operating budget. Once purchased, funding for replacing these fixed assets is allocated to the "owners" over the asset's projected lifetime, with the aim of building up accumulated funding in the relevant replacement fund. The applicable replacement funds are the IT Replacement Fund, the Vehicle & Equipment Replacement Fund, and the Furniture, Fixtures & Equipment Replacement Fund. Internal Service Funds The City employs Internal Service Funds (ISF) to establish centralized cost centers for shared expenses and services, allowing for efficient cost tracking and resource management. Costs are allocated back to operational programs based on usage, ensuring that program expenditure reflects the fully burdened cost of service. These charges are treated as expenses in the General Fund programs and revenues in the ISFs. There are nine ISFs: two Insurance funds (Risk Management and Workers Compensation), four Service/Support funds (Office Support, IT Services, Vehicle & Equipment Maintenance, and Facility Maintenance Funds), and the three Asset Budget Discussion CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 49 Replacement funds mentioned in the Fixed Assets section above. With the exception of the Office Support Fund, which serves as a centralized cost center for copy and mail machines as well as centralized purchases of paper and related supplies, the service- based ISF funds have dedicated staff assigned to the programs. Ongoing increases in salary and benefits, along with other operational costs, contribute to rising expenditure in these funds each year. *A Net Expenditure means General Fund Reserves are used to fund capital projects. The 2025- 26 budget includes a $3.6 million transfer from the Future Capital Project Reserve to support capital programs. Full funding details for the Capital Program begin on page 176. Revenue & Expenditures Category 2024-25 Budget 2024-25 Estimate 2025-2026 Budget Revenue 411 - Property Taxes $19,305,458 $19,810,367 $20,582,155 413 - Other Taxes 2,575,000 2,382,487 2,440,920 416 - Franchises & Surcharges 1,246,296 1,282,942 1,203,965 420 - Intergovernmental 533,000 588,655 592,300 440 - Charges for services 5,501,121 6,893,301 6,179,389 450 - Fines & penalties 46,500 46,131 46,000 460 - Use of money & property 1,429,695 2,027,801 1,511,080 Revenue Total $30,637,070 $33,031,684 $32,555,809 Expense 500 - Salaries & Benefits $10,188,700 $9,922,854 $10,527,698 529 - UAL Payoff 1,350,000 1,350,000 1,533,492 610 - Operating Expenses 2,045,885 1,908,762 1,869,756 640 - Contract Services 2,780,950 2,544,443 3,363,530 648 - Public Safety Contract Services 8,792,685 8,793,685 9,246,105 650 - Professional Services 1,108,615 1,097,803 1,150,600 790 - Internal Services 4,315,918 4,315,918 4,796,159 Expense Total $30,582,753 $29,933,464 $32,487,340 900 - Transfer to Capital Program 3,214,625 3,214,625 3,600,000 Net Revenue / (Expenditures) ($3,160,308) ($116,406) ($3,531,531) City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budge 50 Department Overview The City Council and Commissions Department budget captures the revenue and expenditures of the governing body, City Council, and the City Council’s appointed Commissioners and advisory bodies. The City Council establishes City policy and serves as the decision-making body. The City Council acts upon recommendations from advisory bodies and City staff and then provides direction to the City Manager for implementation. Both the City Council and City Commissions play a key role in the implementation of the Council’s Strategic Goals. Current commissions include the Heritage Preservation Commission, Library and Public Art Commission, Planning Commission, Traffic Safety Commission and the Youth Commission. City Council & Commissions Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed City Council & Commissions City Council -161,502 -162,532 -232,845 -273,538 -272,695 -287,086 Commissions -55,451 -39,306 -48,012 -63,243 -63,243 -61,092 City Council & Commissions Total (216,953) (201,838)(280,856) (336,781)(335,938)(348,178) City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 51 PAGE LEFT BLANK INTENTIONALLY City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budge 52 City Council Program Net Revenue / (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed City Council Revenue 0 1,230 1,400 700 1,543 0 440 - Charges for services 0 1,230 1,400 700 1,514 0 460 - Use of money & property 0 0 29 0 Expense 161,502 163,762 234,245 274,238 220,588 287,086 500 - Salaries & Benefits 16,338 16,423 16,576 16,000 16,750 16,500 610 - Operating Expenses 44,917 52,891 92,826 123,700 77,300 124,700 650 - Professional Services 8,700 3,944 7,700 8,000 0 8,000 790 - Internal Services 91,548 90,504 117,143 126,538 126,538 137,886 City Council Total (161,502) (162,532) (232,845) (273,538) (219,045) (287,086) The City Council establishes City policy and serves as the decision-making body. The City Council acts upon recommendations from advisory bodies and City staff and then provides directions to the City Manager for implementation. Both the City Council and City Commissions play a key role in the implementation of the Council’s Strategic Goals. Key services include: •Represent the residents and community of Saratoga. •Provide community leadership as the legislative and policy-making body. •Represent the City of Saratoga in coordination with other local, county, state, and federal agencies. •Oversee the City’s Commissions and provide support to community organizations on emergent issues. •Work with the community to identify needs and issues in the City. •Manage City finances in a fiscally conservative and forward-thinking manner. 2025-26 Notable Budget Changes •No notable budget changes this fiscal year. 2025-26 Work Plan and Priorities •Fiscal Responsibility – Continue to closely monitor economic conditions to ensure that City finances can be adjusted as needed and essential services remain operational and enable the City to proactively seek opportunities to improve the strength of the City’s finances. •Community Engagement – Continue to strengthen the sense of community, increase inclusiveness, and celebrate Saratoga’s diversity. •Local Economy – Encourage the improvement and stability of the local economy and enhance business development by creating an environment that supports the City’s business community. •Sustainability – Continue to monitor water consumption, energy use, and carbon emissions to identify and realize opportunities to make Saratoga a more sustainable community. •City Ordinance Updates – Initiate the City’s planning process to revise and update key City ordinances to ensure the City Code reflects Saratoga’s regulatory needs and can be easily enforced. •Long Term Planning – Continue long term planning efforts to maintain Saratoga’s excellent quality of life and guide the City’s future development. City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 53 PAGE LEFT BLANK INTENTIONALLY City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budge 54 Commissions and Committees Commissions & Committees Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Commissions & Committees Expense 55,451 39,306 48,012 63,243 50,873 61,092 500 - Salaries & Benefits 12,595 13,564 13,564 12,600 13,230 12,600 610 - Operating Expenses 32,751 15,647 19,316 30,100 17,100 26,000 790 - Internal Services 10,104 10,095 15,131 20,543 20,543 22,492 Commissions & Committees Total (55,451) (39,306) (48,012) (63,243) (50,873) (61,092) Commissions and City Committees are designated bodies that provide specialized advice or other assistance to the City Council and City staff. Commissioners apply for and are appointed by the City Council to serve four-year terms. Youth Commissioners are appointed to two-year terms. At least one City staff member is assigned to each Commission to provide general support and ensure that agenda preparation, posting, minutes, and other meeting elements are fulfilled as required under the Brown Act. Currently, there are six active Commissions and two Committees to advise the City Council on specific issues: Heritage Preservation Commission, Library & Public Art Commission, Parks & Recreation Commission, Planning Commission, Traffic Safety Commission, Youth Commission, Council Finance Committee, and Disaster Council. Key services include: •Provide specialized advice and assistance to Council. •Broaden policy and decision making by providing additional forums for the public to provide input and testify at public hearings. •Work with City staff in researching issues, collecting information, and providing recommendations to the Council. 2025-26 Work Plan and Priorities •Community Engagement – Commissions support the efforts of the City Council to create an inclusive community by seeking input and involvement of residents in City matters and building a greater sense of connection between the City and its residents. •City Council Support – Commissions serve the City Council in an advisory capacity on designated subject matters. City Council Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 55 PAGE LEFT BLANK INTENTIONALLY City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 56 Department Overview The City Manager’s Department comprises the City Manager’s Office, the City Clerk’s Office, and the Communications and Public Affairs Office. The City Manager’s Department supports the Council’s legislative, and policy interests, provides management and leadership, and direction for the City organization. The City Manager’s Department also supports Commissions, interacts with community groups, fosters community relationships, and provides public awareness of municipal programs, services, and goals through effective community outreach, utilizing various avenues, including the City website, media relations, social media, and publications. In addition, the City Manager’s Department liaises with other local agencies that provide services to the City of Saratoga through contract or other means, such as public safety, parks and recreation, facility rentals, senior services, and emergency preparedness. Administrative Services Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed City Manager's Department City Clerk -389,103 -465,941 -420,958 -502,489 -518,087 -438,681 City Manager's Office -668,273 -831,769 -855,955 -837,230 -837,230 -859,208 Public Information Office -304,649 -313,581 -275,588 -373,484 -373,484 -422,803 City Manager's Department (1,362,025) (1,611,291) (1,552,501) (1,713,203) (1,728,801) (1,720,691) City Manager City Manager's OfficeCouncil support, organizational management and leadership City Clerk's Office Meets legal requirements related to City records and conducting City business Communications Office Responsible for community outreach City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 57 PAGE LEFT BLANK INTENTIONALLY City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 58 City Manager’s Office Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed City Manager's Office Expense 668,273 831,769 855,955 837,230 853,716 859,208 500 - Salaries & Benefits 579,943 627,636 686,544 707,380 720,116 717,219 610 - Operating Expenses 15,375 17,943 20,422 25,950 29,700 33,200 650 - Professional Services 114,511 60,105 20,000 20,000 20,000 790 - Internal Services 72,954 71,679 88,884 83,900 83,900 88,789 City Manager's Office (668,273) (831,769) (855,955) (837,230) (853,716) (859,208) The City Manager’s Office provides leadership, oversight, and direction for City functions, supports the City Council and appointed advisory bodies, nurtures community and intergovernmental relations, and cultivates public awareness of City services, programs, and activities. The Office also oversees the Clerk, Community Events staff, and Communications and Public Affairs Office, and coordinates with external agencies that provide Recreation/Facilities, Public Safety, and Emergency Preparedness services to the City. Key services include: • Provide comprehensive information, policy analysis, and support to the City Council. • Provide oversight, leadership, and direction to City functions. • Monitor state and federal legislation and effectively communicate the City’s position on legislative proposals affecting Saratoga. • Facilitate strong community and intergovernmental relations. • Cultivate public awareness of municipal services, programs, and activities. • Present a balanced budget to the City Council each fiscal year that accurately reflects the most current revenue estimates and economic conditions. • Ensure that City services are performed in accordance with City Council priorities and within the capabilities of the City’s resources. • Inform the City Council in a timely manner of the City’s financial condition and future needs on an ongoing basis. 2025-26 Notable Budget Changes Funding for emergency preparedness has increased to update the required 2025 Emergency Operations Plan for the State. 2025-26 Work Plan and Priorities • Annual Budget – The City Manager’s Office oversees the City’s annual budget for the City Council and the community, ensuring City finances, services, and projects are properly presented and budgeted. • Management and Council Retreats – Organize and facilitate an annual retreat to address organizational development and to prepare for the annual City Council retreat. Organize an annual City Council retreat to encourage the development of policies and address key issues, resulting in the generation of the City’s annual work plan and, subsequently, the development of operating and capital budgets. • Emergency Preparedness & Disaster Response – Recognizing the importance of preparedness, the City allocates funding to: • Community Emergency Response Team (CERT): Training residents to be self-sufficient during disasters. • Emergency Operations Center (EOC): Enhancing infrastructure and resources for coordinated emergency response. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 59 • Public Awareness Campaigns: Conducting drills and educational programs on wildfire prevention, earthquake preparedness, and evacuation planning. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 60 City Manager's Office Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Meet with each member of the Council biweekly prior to City Council Meetings: Yes Yes Yes Yes Yes b.Prepare a weekly newsletter for City Council:94%94%94%94%94% c.Provide Mayor and Council Members with presentation materials and talking points for special events, media inquiries, and presentations: Yes Yes Yes Yes Yes 2. a.Hold meetings following City Council meetings with the City's Management team to discuss upcoming agenda items and share information: 95%95%95%95%95% b.Make professional development and leadership training opportunities available to Directors and City staff: Yes Yes Yes Yes Yes c.Professional Association Memberships:14 14 14 14 14 3. a.West Valley Mayor's and Managers Meetings:10 10 10 10 10 b.Informational or Professional Association Meetings on Topics of interest to Cities in California, the Bay Area, and Santa Clara County: 30 30 30 30 30 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.32 29 37 30 23 Represent the City interests and stay apprised of local and regional issues. Number of City Council Meetings Per Year: Ensure the City Council is fully informed about City matters and provide support to City’s elected leadership. Promote effectiveness of City operations through collaboration, open communications, efficient coordination, creative thinking, and professional development. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 61 PAGE LEFT BLANK INTENTIONALLY City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 62 City Clerk’s Office Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed City Clerk Revenue 0 21,830 21 15,675 77 0 440 - Charges for services 0 21,830 21 15,675 77 0 Expense 389,103 487,771 420,979 518,164 415,224 438,681 500 - Salaries & Benefits 248,260 216,828 243,905 252,710 256,369 272,383 610 - Operating Expenses 11,366 142,881 29,919 127,375 22,308 23,050 640 - Contract Services 29,943 28,786 30,470 35,350 33,818 46,500 790 - Internal Services 99,535 99,276 116,686 102,729 102,729 96,748 City Clerk (389,103) (465,941) (420,958) (502,489) (415,147) (438,681) The City Clerk is responsible for meeting the legal requirements related to maintaining City records and conducting City business, as set forth in the State of California Government Code and City Municipal Code. The City Clerk prepares City Council agendas and minutes, ensures the timely indexing of resolutions, ordinances, and agreements, and maintains an accurate record of all Council proceedings. The City Clerk also works with the Santa Clara County Registrar of Voters to conduct local elections in a fair and impartial manner; and receives petitions and subpoenas on behalf of the City. Key services include: • Meet legal requirements as set forth in the State of California Government Code and City Municipal Code. • Maintain City records. • Prepare City Council agendas and minutes. • Maintain an accurate record of Council proceedings. • Maintain custody of the City Seal. • Administer Oaths and Affirmations. • Prepare and publish legal notices. • Maintain the Saratoga Municipal Code. • Ensure Fair Political Practices Commission filings are made on a timely basis. • Ensure all elected officials, appointed officials, and required staff meet mandatory AB 1234 biennial training requirements. • Administer recruitment process for City of Saratoga Commissions. • Respond to requests for public records 2025-26 Notable Budget Changes • The City holds a General Municipal Election every two years for positions on the City Council. The most recent election occurred in November 2024 and the next election will be held in November 2026. As a result, the expenditure costs associated with the election are not included in the 2025-26 budget. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 63 2025-26 Work Plan and Priorities • Records Management –With the adoption of the City’s Records Retention Schedule, the electronic records repository can be updated to reflect the new schedule. The City Clerk’s office will continue to manage the City’s records, including converting paper documents into electronic format, adding electronic documents to the City’s document management system, identifying records for final disposition, and preparing documents to be archived. Pursue the use of workflow for document retention in the document management system. • Open Government – Continue implementing open government efforts, including the Brown Act, Political Reform Act, Public Records Act, and other laws or policies that promote transparent governance. Broaden the number of public records accessible online to the public through the Laserfiche Weblink Repository. • City Contracts – Continue use of contract routing and electronic signature software. • Agenda Workflow and Video Streaming – Identify opportunities to improve the agenda workflow program that allows for review and approval of staff reports for City Council and Planning Commission meetings. Provide continued staff training on the agenda workflow program. Continue video streaming of City Council and Planning Commission meetings and archiving videos in high definition. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 64 City Clerk's Office Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of time in compliance with Brown Act requirements for noticing City Council meetings: 100%100%100%100%100% b.City Clerk or designee in attendance and recording actions at Regular City Council meetings: 100%100%100%100%100% c.Percentage of Regular City Council Meeting Minutes prepared and submitted to City Manager in time to be scheduled for approval on next Council agenda: 98%100%100%100%100% 2. a.Documents scanned into electronic repository:41,550 2,500 16,500 6,845 2,000 b.Provide efficient and effective Records Management by annually reviewing documents for retention and preparation for destruction: 100%100%100%100%100% 3. a.Percentage of Form 700 filed on time:90%85%90%90%90% b.Percentage of Public Record Requests responded to within 10 days: 100%100%100%100%100% 4. a.14 15 19 14 16 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.29 29 21 25 25 2.58 30 24 60 25 3.63 85 76 58 60 4.11 7 4 10 6 Number of Commission recruitments and appointments processed: Number of City Council minutes prepared per year: Promote transparency of City operations with scheduled noticing, recording, and prompt reporting of City Council meetings and actions. Maintain City documents and records to promote open government efforts, and in accordance with State law and City ordinances. Voluntarily comply with Public Records and Brown Act requirements. Number of boxes of City records processed for disposal: Number of resolutions: Number of ordinances: Promote resident participation in leadership roles by overseeing recruitment for positions on City Commissions and Committees. City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 65 PAGE LEFT BLANK INTENTIONALLY City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 66 Communications and Public Affairs Office Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Communications and Public Affairs Office Expense 304,649 313,581 275,588 373,484 384,794 422,803 500 - Salaries & Benefits 205,618 217,674 164,357 229,750 255,735 255,838 610 - Operating Expenses 2,499 4,134 8,243 9,000 5,925 12,075 640 - Contract Services 68,519 63,519 68,143 100,000 88,400 119,750 650 - Professional Services 0 384 300 0 0 0 790 - Internal Services 28,013 27,870 34,545 34,734 34,734 35,140 Communications and Public Affairs Office (304,649) (313,581) (275,588) (373,484) (384,794) (422,803) The Communications and Public Affairs Office is responsible for community outreach, ensuring that residents have access to timely, useful, and important information. The Communications and Public Affairs Office oversees and maintains various lines of communication with residents, including the City’s website, Median Banner Program, social media accounts, monthly e-newsletter, email services, videos, surveys, event tabling, flyers, and press releases. The Communications and Public Affairs Office also serves as a liaison between city departments and the community. Key services include: • Serve as the communications link between the City and residents. • Ensure that the community has easy access to important information through various forms of media, including print, online, and video. • Foster community pride and a positive sense of identity with the City among residents. • Increase interest and participation in City services, projects, and activities. • Promote City Council and departmental goals, initiatives, programs, and services. • Assist in creating better internal and external communication. • Enhance the City’s relationship with the news media. 2025-26 Notable Budget Changes Funding levels for printing services remain strong in anticipation of outreach to residents regarding Emergency Preparedness. 2025-26 Work Plan and Priorities • Community Outreach – The Communications and Public Affairs Office will continue the City’s efforts to enhance communication through the use of social media (Facebook, Instagram, Nextdoor, Twitter), online services (email newsletters), as well as through the City’s website and participation in events. This outreach will enhance the City’s engagement with the community by informing the public about important City- related matters, including meetings, events, and significant infrastructure projects. • Website ADA Accessibility – Website ADA accessibility ensures digital content is usable by people with disabilities, meeting City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 67 legal standards for inclusivity and compliance. • Crisis Communication Plan – The City will update its Crisis Communications plan and focus on additional outreach to reach more residents in the event of an emergency and obtain more email subscribers to the Saratoga Source. Communications and Public Affairs Office Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Produce weekly Saratoga Source; monthly Saratoga Spotlight and Saratoga News, and quarterly Outlook: 49 49 97 97 76 b.Continually, provide information about City news and activities on the City website, Facebook page, X, and Nextdoor site: Yes Yes Yes Yes Yes c.Send e-mail notifications for Council agendas, Commission meeting agenda/minutes, weekly Sheriff's Office updates and community events updates: 100%100%100%100%100% d.Produce outreach materials, such as postcards like Budget in Brief, Emergency Alert Information that provide an overview on City operations and safety: Yes Yes Yes Yes Yes Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.2600 2722 2807 2969 3110 2.43 30 32 25 25 3.271 165 141 96 100 4 10 10 12 11 11 Inform residents through proactive communications efforts, including media relations, social media, and other methods of communication. City of Saratoga Facebook Followers: Number of Median Banner Program reservations: Number of banners displayed through Median Banner Program: Events hosted by City: City Manager’s Department Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 68 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 69 Department Overview The Administrative Services Department oversees the City’s administrative, financial, human resources, technology and insurance programs. These programs are centralized, and general functions providing administrative, financial, and legally required comprehensive support of citywide operations are included within the General Fund. The Information Technology program offers centralized and user-specific technology support at varying service levels as requested or required by City departments. As an Internal Service Fund program, it allows for better tracking of program costs. The Information Technology Equipment Replacement and Office Support funds provide technology-related support and hardware for departmental and citywide purposes. Risk Management and Workers Compensation programs act as a cost center for citywide insurance costs for claims and coverage. Administrative Services Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Administrative Services Administrative Services -356,708 -265,593 -312,771 -285,304 -285,304 -274,946 Finance -984,434 -1,027,904 -1,006,936 -1,256,318 -1,253,549 -1,210,344 Human Resources -443,961 -508,420 -427,245 -477,853 -477,853 -482,763 Administrative Services Total (1,785,103) (1,801,917) (1,746,952) (2,019,475) (2,016,706) (1,968,053) *Information Technology, Office Support, Risk Management, and Workers’ Compensation Internal Service Funds are self-supporting and excluded from the General Fund presentation. Administrative Services Administrative ServicesBudget, investments, policy development, business systems improvements FinanceFinancial reporting, accounts payable, payroll, accounts receivable Human Resources Labor & employee relations, benefits administration, recruitment, and retention Information Technology Internal Service Cybersecurity, network, hardware, software, audio visual management and support Office Support Internal Service Office equipment leases, copy supplies, postage and centralized records management Risk Management Internal Service Insurance for general, auto and property risk management services Workers Compensation Internal Service Insurance related coverage or work-related illnesses and/or injuries Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 70 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 71 Administrative Services Administrative Services Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Administrative Services Expense 356,708 265,593 312,771 285,304 297,189 274,946 500 - Salaries & Benefits 307,772 230,610 267,571 233,540 262,820 233,223 610 - Operating Expenses 3,472 3,698 2,766 6,110 3,310 6,400 640 - Contract Services 18,074 4,056 9,675 15,000 405 5,000 790 - Internal Services 27,391 27,229 32,759 30,654 30,654 30,323 Administrative Services Total 356,708 265,593 312,771 285,304 297,189 274,946 The Administrative Services program focuses on policy and procedural development, long-range forecasting and financial communication, strategic and financial planning, coordination and development of the City’s annual budgets, records management and documentation, development and implementation of administration management tools and technology related process improvements, and professional and technical assistance and support to other departments relative to financial and administrative matters. Fiscal Year 2025-26 Work Plan and Priorities • Business System Improvements – The City’s business systems continue to evolve where services are provided with greater reliance on paperless and electronic systems. The program 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 budget and forecast database and integrating applications for streamline reporting. • Cloud-Based Applications – Continue to expand the use of cloud-based software for all documents. This transition offers increased functionality, system integration, and will allow access to all documentation, both historical and current, and ensure that staff can fully work from remote locations, if needed, especially in the event of a disaster. • Financial Forecasting – The City routinely reviews forecasted revenue and expenditures to proactively identify potential risks and opportunities. With future expenditures forecast to grow faster than revenue, careful planning for future projects and services will help control costs. • Disaster Recovery Planning – In the event of a disaster and cost recovery process, the City’s administrative and financial policies would be subject to a highly critical and restrictive review. These policies are the foundation upon which cost recovery decisions are made. Workload priorities include the development and revision of high priority policies to prepare for this rigorous process should it occur. As cost recovery planning and preparations are extensive, this activity will continue to be a high priority function for many years. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 72 Department Administration Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Annually provide Council and City Management with long- range fiscal planning tools in preparation of annual budget preparation and review processes: Yes Yes Yes Yes Yes b.Keep abreast of fiscal and administrative impacts to the City and communicate pertinent information to City management: Yes Yes Yes Yes Yes c.Protect the City's assets by updating policies and practices that regulate expenditures, review fiscal activities, and secure facilities, vehicles & equipment, and information systems: Yes Yes Yes Yes Yes 2. a.Percent of time actual expenditures do not exceed a fund's approved budget appropriations: 90%100%100%97%100% b.Governmental Finance Officer Association (GFOA) 'Certificate of Achievement of Excellence in Budgeting' awarded to the City: Yes Yes Yes Yes Yes Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.N/A Yes Yes Yes Yes 2.N/A Yes Yes Yes Yes 3.Yes Yes Yes Yes Yes 4.4 4 12 12 12 5.4 6 6 5 5Number of Public Budget Review Meetings Held Deliver fiscal and administrative support to assist Council with understanding and keeping current on the City's financial and operational health in the effort to preserve essential services, maintain City infrastructure, and achieve Council goals. Prepare accurate budget workplans in compliance with standard budgeting practices. Present Mid-year Budget Review at annual Council Retreat: Present Multi-Year forecast at annual Council Retreat: Update financial policies for Council adoption: Budget Performance Reporting Frequency Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 73 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 74 Finance Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Finance Revenue 54,477 68,376 67,537 65,330 68,099 66,900 440 - Charges for services 50,523 66,128 65,942 63,330 66,293 64,900 450 - Fines & penalties 3,954 2,248 1,595 2,000 1,806 2,000 Expense 1,038,911 1,096,280 1,074,473 1,321,648 1,049,402 1,277,244 500 - Salaries & Benefits 801,496 818,293 814,381 1,023,970 794,834 990,434 610 - Operating Expenses 27,686 32,056 31,929 43,500 29,750 43,820 640 - Contract Services 16,866 54,161 10,555 31,900 10,540 23,700 650 - Professional Services 43,000 43,200 36,750 52,000 44,000 47,200 790 - Internal Services 149,863 148,570 180,857 170,278 170,278 172,090 Finance (984,434) (1,027,904) (1,006,936) (1,256,318) (981,303) (1,210,344) The Finance program functions to assure both legal and fiscal accountability to the public through responsible, sustainable, and enforceable fiscal policies and practices. Key services include: • Monitor the City’s revenue and expenditures to ensure compliance with the annual operating and capital budget appropriations in accordance with the best practices and standards. • Coordinate the annual audit of the City’s financial statements and prepare the Annual Comprehensive Financial Report. • Maintain the City’s financial information system for record-keeping and reporting of all financial transactions. • Provide Accounts Payable and Payroll disbursement and reporting services; Accounts Receivable invoicing, revenue collection, and cash reconciliation; and Business License Tax processing and auditing services. • Provide accounting, arbitrage reporting, and claim reimbursement services for bond issues. • Provide oversight of procurement functions including purchase order processing, financial tracking of contracts, vendor resolution issues, and proper accounting allocations. Fiscal Year 2025-26 Notable Budget Changes • Budgeted salary and benefit expenditure growth reflects cost of living, and step increases. • Financial Software Enhancements– Finance completed its software upgrade to the latest version of the City’s Enterprise Resource Planning system, eFinancePlus at the end of FY 2023-24. A focus in 2025-26 will include integration with CentralSquare’s land management software TRAK-iT which the City currently uses and has potential to improve efficiencies if fully integrated with eFinancePlus. • Comprehensive Fee Schedule Update City staff will implement the rates from the comprehensive and extensive cost of services study, and new fees will be effective July 1, 2025. • Financial Records Management – Continue to scan items to Laserfiche as required by the City’s Record Retention Policy. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 75 Finance Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Annual Financial Statements receive an 'Unmodified Opinion' from the City's independent auditor: Yes Yes Yes Yes Yes b.City's Comprehensive Annual Finance Report meets the Governmental Finance Officer Association (GFOA) 'Certificate of Achievement of Excellence in Financial Reporting' program standards and receives award: Yes Yes Yes Yes Yes 2. a.Ratio of State and County regulatory and financial reports completed and filed by deadlines: 20 of 20 20 of 20 20 of 20 20 of 20 20 of 20 b.Percent of time department revenue and expenditure reports are completed within 30 days of month-end: 100%100%100%100%100% 3. a.State Controller's annual financial reports completed and filed by deadline: Yes Yes Yes Yes Yes b.Publish the monthly treasurer report within 45 days after month-end: Yes Yes Yes Yes Yes c.Percentage of Accounts Payable invoices processed accurately and on-time: 100%100%100%100%100% d Percent of time bank statements are reconciled to general ledger within 45 days of month-end: 100%100%100%100%100% 4. a.Uphold (Moody's) highest bond credit rating of Aaa:Yes Yes Yes Yes Yes b.Amount contributed to pay down CalPERS pension costs: $ 1,013,932 $ 1,631,015 $ 605,938 $ 1,350,000 $ 1,533,502 c.Investment revenues earned $ 124,568 $ 855,210 $ 1,623,342 $ 1,908,971 $ 1,766,156 d.Unrestricted fund balance as a percentage of total general fund expenditures: 30%24%35%43%40% Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1 843 586 538 523 516 2 1,894 2,130 2,015 1,905 1,920 3 6,404 6,842 6,734 7,220 6,800 4 39 38 45 43 42 5 3 1 1 3 1 6 15 35 21 18 20 7 1,899 1,840 1,835 1,793 1,870 Assure legal and fiscal accountability to the public, in compliance with established accounting standards. Ensure accurate and timely financial reporting within specified deadlines. Provide financial oversight and administer accounting functions for City funds and accounts. Proactively manage the City's finances to maintain excellent fiscal status. Number of payroll checks, paycheck vouchers, and stipends issued annually: Number of Cash Receipt batches processed annually: Number of Business Licenses issued annually: Number of invoices entered into Accounts Payable system: Average number of Accounts Payable checks issued weekly: Number of voided checks - due to processing errors: Number of voided checks - due to lost/destroyed checks, printer error, or incorrect invoice information: Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 76 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 77 Human Resources Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Human Resources Expense 443,961 508,420 427,245 477,853 511,953 482,763 500 - Salaries & Benefits 373,282 390,692 341,334 352,030 396,746 348,518 610 - Operating Expenses 12,183 13,612 16,653 28,865 16,664 25,715 640 - Contract Services 9,358 11,032 11,241 19,200 16,930 25,150 650 - Professional Services 4,195 48,490 4,245 26,500 30,355 30,900 790 - Internal Services 44,943 44,594 53,773 51,258 51,258 52,480 Human Resources (443,961) (508,420) (427,245) (477,853) (511,953) (482,763) The Human Resources Division works as a strategic partner with all City of Saratoga departments, fostering and supporting the organizational goals and values. It provides comprehensive, professional, technical, and support services and programs to full-time and part-time employees of the City. It also oversees various City programs, including Employee Recognition, Volunteering, Risk Management, Worker’s Compensation, Safety and Wellness, Custodian of Records Department of Justice, and the Department of Motor Vehicles’ Employee Pull Notice (EPN) program. Other key services include: •Implementing strategic recruitment and hiring processes that attract, retain, and develop a skilled workforce delivering exceptional customer service. •Executing comprehensive retention strategies including flexible scheduling, competitive compensation, professional development, recognition programs, and community-building events. •Promoting workplace safety through training and best practices. •Negotiating and bargaining Memorandums of Understanding (MOUs) with represented groups. · •Ensuring compliance with employment laws, including establishing and monitoring personnel policies. · •Administering employee benefits programs including health insurance and retirement plans. · •Implementing performance management systems. •Managing employee relations through conflict resolution and promoting positive workplace culture. •Conducting regular classification and compensation analysis to maintain competitive and equitable pay structures aligned with market standards. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 78 Fiscal Year 2025-26 Notable Budget Changes •Budgeted salary and benefit expenditure growth reflects cost of living increases. Fiscal Year 2025-26 Work Plan and Priorities •Recruitment and Selection – Efficiently execute recruitment and selection procedures, adhering to predetermined target dates for diverse positions, including regular benefited positions, at-will benefited positions, and temporary at-will non benefited positions. •Staff Training – Efficiently organize and coordinate mandatory training, along with management and supervision workshops, in partnership with LCW consortium. Furthermore, provide a diverse array of professional development training programs to support the continued growth and development of the City’s workforce. •Labor Relations – Proficiently manage and monitor the current employee memorandums of understanding (MOUs), ensuring full compliance with all applicable requirements. •Benefits Communication Enhancement – Implement improved communication strategies to increase employee understanding and utilization of available benefits. •Employee Recruitment & Retention Strategies – Attract and retain top talent by enhancing workplace satisfaction through targeted initiatives that build upon our comprehensive framework of flexible scheduling, competitive compensation, professional development, recognition programs, and community-building events. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 79 Human Resources Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Percent of time the Human Resources Division provides reports to outside agencies on or before the deadline: 100% 100% 100% 100% 100% 2. a.Manage contracts to ensure compliance with current laws, memoranda of understanding, and City policies and procedures: 100% 100% 100% 100% 100% b.Regularly review contracts to ensure cost-effective insurances and benefits that meet the needs of the organization are provided: 100% 100% 100% 100% 100% 3. a.Percent of time personnel policies are available on the City's website: 100% 100% 100% 100% 100% b.City personnel policies are updated regularly:Yes Yes Yes Yes Yes Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.7 9 10 7 6 2.122 245 211 559 250 3.68 66 69 71 72 4.220 177 250 265 250 5.$65,300 $64,400 $70,000 $71,000 $72,500 6.200 520 150 400 200 7.56 56 56 56 56 Support transparency in government activities through providing timely reporting and/or responses to outside agencies. Provide effective and efficient employee benefit contract administration. Provide fair and proper administrative and personnel decisions that foster a proactive, responsible, and transparent government. Number of training hours offered to employees: Number of recruitments conducted for regular, benefited positions: Number of employment applications received and processed: Total number of employees (benefited, non-benefited, and temporary, part-time and full-time): Number of participants in Volunteer Saratoga program: Value of volunteer hours: Number of meet and confer process hours: Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 80 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 81 Information Technology Services Internal Service Fund Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed IT Services Revenue 960,866 952,848 1,046,873 850,000 866,000 820,000 460 - Use of money & property 960,866 952,848 1,046,873 850,000 866,000 820,000 Expense 828,500 793,088 816,788 1,210,306 989,399 1,294,604 500 - Salaries & Benefits 412,081 431,942 436,867 473,110 454,407 507,800 610 - Operating Expenses 125,324 76,428 63,339 366,200 240,040 384,600 640 - Contract Services 212,497 206,568 230,322 321,220 245,176 366,380 770 - Fixed Assets 0 0 0 0 0 0 790 - Internal Services 78,598 78,150 86,259 49,776 49,776 35,824 IT Services 132,366 159,760 230,086 (360,306) (123,399) (474,604) The Information Technology Services Program supports the delivery of technology-based services throughout the City’s operations. Core services include the maintenance and support for the City’s information systems, including all aspects associated with computers, network maintenance and support, infrastructure, and system implementation and upgrade support. Other core duties include maintaining the City’s various communication systems, including support for the streaming video technology system, internet, landline, and wireless communication systems, including voicemail, email, and the archiving of communication records. Key program services include: •Maintain and support the City’s information software systems, including the financial system, development permitting system, Laserfiche document management system, agenda management system, video streaming, traffic light systems, digital plan checking, EV charging stations, cloud- hosted City systems, and other specialty systems. •Maintain, support, repair, and upgrade servers. •Maintain and support video streaming, internet, voicemail, wireless and telecommunication systems, and AM radio station. •Maintain, support, repair, upgrade, assist, and educate staff on system usage, desktop computers, laptops, mobile devices, printers, and technology accessories. •Maintain and support cloud-based applications. •Provide ongoing network maintenance, security, and support. •Ensure business continuity and sustainability. •Oversee technology upgrades as well as lead new information technology initiatives. Fiscal Year 2025-26 Notable Budget Changes The budget includes funding for network equipment upgrades which will enhance network data connectivity and improve network security throughout the City’s data network infrastructure. Additional funding will be allocated toward cloud- based licensing and applications to provide scalable solutions that will benefit city services. The phone system will be replaced due to aging existing hardware. The City’s fiber optic infrastructure will also be upgraded to accommodate overall network traffic stability. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 82 Fiscal Year 2025-26 Work Plan and Priorities •Network Security Assessment –Network security assessments are conducted on a quarterly basis to ensure the security of the City’s data systems, and to conform to the Payment Card Industry (PCI) Data Security Standards (DSS), National Institute of Standards and Technology (NIST), and pass compliance audits. The identification of potential security vulnerabilities on City’s data network are addressed on an ongoing basis. •Streamline Services – IT is enhancing online services to include increased capabilities for processing permit applications, scheduling inspections, and making payments. •Staff Cyber Security Training – Continue providing training videos and quizzes that increase security awareness and allow staff to be more knowledgeable in identifying potential cybersecurity incidents. •Technology & Equipment Management – IT continues to keep abreast of emerging technology information to ensure the City is addressing concerns, issues, and opportunities, and maintaining equipment at appropriate levels to ensure infrastructure is up-to-date, cost-effective, and secure from cyber threats. •Data Network Upgrade – IT staff to enhance and improve the City’s network and data infrastructure from increased network traffic, integration of cloud-based solutions, security standards, and provide additional bandwidth and significant reliability for business continuity. The City’s fiber optic cabling will be replaced as part of the data network upgrade. •Phone system Upgrade – IT staff to upgrade existing upcoming end-of-life phone system. The new phone system will provide enhanced functionality and reliability for the City’s communications services. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 83 IT Services Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Percent of time online services are available to the public through the City's website and resource links: 99% 99% 99% 99% 99% b.Percent of time network remains available during normal business hours: 99% 99% 99% 99% 99% c.Percent of time IT responds/resolves support requests within one working day: 99% 99% 99% 99% 99% d.Percent of time IT responds to technology system emergency events: 100% 100% 100% 100% 100% 2. a.Number of system upgrades or modifications for which IT staff provided project management support: 9 11 9 15 18 b.Number of new technology systems or equipment for which oversight and support was provided by IT staff: 11 8 9 9 11 3. a.Staff has current knowledge of cybersecurity compliance, alerts and product vulnerabilities: Yes Yes Yes Yes Yes b.Number of times per year network assessment conducted:2 2 2 2 2 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.77 75 66 66 66 2.66 65 65 66 79 3.32 33 31 29 28 4.106 105 89 84 89 6.29 27 27 28 27 7.67 63 61 61 59 8.24 20 21 21 22Number of cell phones serviced and maintained: Number of IT software applications monitored and maintained: Number of network servers maintained: Number of computer systems maintained: Number of network copiers, printers, plotters, scanners, fax machines, and postage machines maintained: Number of landlines serviced and maintained: Number of system users supported: Support the delivery of technology services to citizens, residents, businesses, other governmental agencies, and internal City departments. Provide technology solution oversight and project management support to improve citywide functions. Protect the City's technology assets from unauthorized use. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 84 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 85 IT Equipment Replacement Internal Service Fund Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed IT Equipment Replacement Revenue 150,000 149,053 150,120 50,000 50,000 10,000 460 - Use of money & property 150,000 149,053 150,120 50,000 50,000 10,000 Expense 87,362 38,825 39,813 313,000 178,190 320,750 610 - Operating Expenses 87,362 38,825 39,813 313,000 178,190 320,750 770 - Fixed Assets 0 0 0 0 0 0 Grand Total 237,362 187,878 189,933 363,000 228,190 330,750 IT Equipment Replacement 62,638 110,228 110,307 (263,000) (128,190) (310,750) The Information Technology Equipment Replacement Fund Program provides for a consistent level of funding, based on a City IT replacement schedule, for the replacement of desktop computers and monitors, servers, laptops, printers, and various other technology equipment on an ongoing basis. The schedule is used to calculate the annual funding contribution requirement to smooth operating expenses over the years, as well as provide a more accurate cost of operations on an ongoing basis. Key services include: •Accumulate and provide annual funding for technology asset replacement. •Continually assess IT equipment for proper replacement timing. •Identify and procure best solution equipment. Fiscal Year 2025-26 Notable Budget Changes Per Council’s direction, the IT Replacement Fund incorporates all technology systems into the replacement program along with all IT infrastructure and fixed assets. This comprehensive accounting provides a level of detail to more accurately account for all IT operational costs and accumulates replacement funding during the lifetime of the asset while also creating a master IT replacement plan. The service chargeback is allocated to each program based on calculations that track citywide equipment costs and lifespan, and a weighted average cost determines how much is to be set aside each year to have funding available for replacements at the time the equipment’s lifespan is over. Planned replacements for the 2025-26 budget year total $320,750 and are listed in the following IT Equipment Replacement Schedule. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 86 2025-26 Equipment Replacement Schedule IT EQUIPMENT 2025-26 Scheduled Laptop Computers 22,500 Desktop Computers 3,000 Network Servers 75,750 Computer Monitors 5,000 Specialty Printers /Equip 7,500 UPS Battery/Desktop 2,000 UPS Battery/Servers 5,000 Network Equipment 200,000 TOTAL IT EQUIPMENT REPLACEMENT BUDGET 320,750 Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 87 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 88 Office Support Internal Service Fund Net Revenue/(Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Office Support Services Revenue 44,150 46,559 71,230 50,000 58,000 26,000 440 - Charges for services 9,150 12,674 10,110 0 8,000 6,000 460 - Use of money & property 35,000 33,885 61,120 50,000 50,000 20,000 Expense 32,873 39,790 66,262 64,600 49,026 74,482 610 - Operating Expenses 31,999 38,545 41,493 52,100 47,626 49,713 640 - Contract Services 874 1,245 2,269 2,500 1,400 2,269 650 - Professional Services 0 22,500 10,000 0 22,500 Office Support Services 11,277 6,769 4,968 (14,600) 8,974 (48,482) The Office Support Program accounts for various multi-function equipment leases, postage machine lease, copy supplies, city letterhead, forms and cards, and postage and related fees on a centralized basis. Usage expenses are allocated back to the appropriate department for services and supplies utilized on a quarterly basis. As this program functions primarily as a centralized funding mechanism, personnel are not assigned to this program. Key services include: •Provide postage and photocopy equipment, as well as other small office equipment, supplies, and services for citywide use. •Monitor service levels and performance of copier and postage machines, maintaining and replacing equipment as needed. •Centralized record management system and services. Fiscal Year 2025-26 Work Plan and Priorities The City’s Multi-Functional Devices (MFD), consisting of photocopying, scanning, and printing functions, are typically leased rather than purchased by the City based on the cost effectiveness of service contracts versus the cost of purchasing equipment. Although leasing does include built-in financing costs, the heavy usage MFDs sustain daily coupled with rapidly advancing technology improvements and cost and value reductions in these types of machines, leasing provides the City with cost efficiency and better ongoing quality over the long term. Additionally, the potential for repeated breakdowns, the cost-of-service contracts and quality issues with older machines makes “lease and replace” a better option than “purchase and retain.” With the expiration of the current copier lease agreement in 2024, the City entered a new lease effective August 2024. As expected, the new copiers are more advanced: they provide higher quality prints, have increased functionality and reliability, and are faster – while lease and service costs decreased. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 89 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 90 Risk Management Internal Service Fund Net Revenue/(Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Liability/Risk Management Revenue 763,902 869,792 1,229,005 1,811,500 1,850,000 2,100,000 420 - Intergovernmental 1,956 3,478 3,694 11,500 50,000 50,000 460 - Use of money & property 761,946 866,315 1,225,311 1,800,000 1,800,000 2,050,000 Expense 809,485 867,988 1,151,002 1,532,733 1,459,183 1,637,758 500 - Salaries & Benefits 80,126 76,304 92,654 118,000 98,740 117,844 610 - Operating Expenses 721,215 783,545 1,048,367 1,379,340 1,350,050 1,509,550 640 - Contract Services 0 0 0 25,000 0 0 790 - Internal Services 8,144 8,140 9,981 10,393 10,393 10,364 Liability/Risk Management (45,583) 1,804 78,003 278,767 390,817 462,242 The City of Saratoga is insured through a Joint Powers Authority (JPA). PLAN JPA, which consists of Bay Area cities, began operations July 1, 2018, as a pooled city entity to provide insurance coverage to its 28 members agencies. PLAN JPA contracts with a risk management consultant to procure and manage general liability, auto, and property insurance as directed by the JPA Board of Directors which is comprised of one representative of each member agency. The risk management consultant provides PLAN JPA members with policy guidance to effectively identify, analyze, and minimize risks, training to promote best practices, and grant incentives for safety programs. The City of Saratoga’s substantial annual premium reflects a low self-coverage retention level (deductible) of $25,000 per occurrence. The City submits claim information to the third-party administrator (TPA), Sedgwick. Sedgwick’s staff follows up with other parties and insurance firms, acting as the City’s insurance agent. Key services include: •Facilitate implementation of risk management best practices to increase public and staff’s safety and reduce the City’s liabilities. •Facilitate claim processing and reimbursements for the City, in coordination with the staff, the City Manager, and the City Attorney. Fiscal Year 2025-26 Notable Budget Changes Insurance premiums continue to climb as coverage becomes more and more expensive, particularly due to the deteriorating market for public entity insurance. Premiums are also dependent on, and reactive to, both the City’s and the entire JPA’s claim loss activity and, with the City’s recent claim loss history, the City is assessed an increase of 17% from $933,302 to $1,095,700, for Fiscal year 2025-26. The Plan JPA has removed the capping of premiums effective Fiscal Year 2025-26. Fiscal Year 2025-26 Work Plan and Priorities •Risk Management – Convene annual meetings with the Risk Management Committee to facilitate a collaborative effort in identifying and mitigating hazards through the City. These meetings will also include conducting a comprehensive claims review to effectively minimize potential losses. Additionally, conduct quarterly Safety Meetings to proactively identify and address Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 91 safety concerns, thereby promoting a culture of heightened safety awareness. •PLAN JPA Grant Management – Utilize PLAN JPA program grants to reimburse the City for risk prevention projects pre-approved by Sedgwick, coordinate risk management training for staff, and attend risk management training to implement best practice. Risk Management / Liability Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Contracts reviewed for compliance with Liability Insurance requirements within 48 hours of receipt: 100% 100% 100% 100% 100% b.Liability Claims processed within 48 hours of receipt:100% 100% 100% 100% 100% Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.4 4 5 21 2 2.0 1 4 15 2 3.Number of liability claims open:1 7 1 21 2 Number of liability claims received: Number of liability claims resolved: Provide timely, comprehensive Risk Management services to the City to reduce liability and claims costs. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 92 PAGE LEFT BLANK INTENTIONALLY Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 93 Worker’s Compensation Internal Service Fund Net Revenue/(Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Worker's Compensation Revenue 259,072 255,769 335,085 410,000 406,000 308,000 420 - Intergovernmental 9,072 7,348 9,893 10,000 6,000 8,000 460 - Use of money & property 250,000 248,421 325,192 400,000 400,000 300,000 Expense 254,610 263,729 317,826 358,303 357,923 400,427 500 - Salaries & Benefits 41,007 43,492 45,580 46,860 47,780 45,741 610 - Operating Expenses 204,097 212,836 263,418 301,775 301,475 345,263 640 - Contract Services 2,101 0 0 1,000 0 1,000 790 - Internal Services 7,406 7,401 8,827 8,668 8,668 8,423 Worker's Compensation 4,462 (7,960) 17,260 51,697 48,077 (92,427) The City is a member of the Shared Risk Pool (SHARP) Joint Powers Association, a self- funded public agency insurance pool providing workers compensation coverage for four public entities that are too small to self-insure independently. SHARP is liable for City of Saratoga claims up to a per occurrence self- insurance retention (SIR) of $250,000. SHARP members jointly purchase excess insurance to cover claims exceeding the SIR through the Local Agency Workers’ Compensation Excess (LAWCX) Joint Powers Authority. The Human Resources program manages the workers compensation processes according to the California State Department of Industrial Relations (DIR) regulations, serves as the liaison between the City and SHARP’s third-party administrator (TPA) Sedgwick Insurance Services Group, monitoring performance, and providing guidance and direction on behalf of the City, to the TPA. Human Resources staff works with the injured worker in developing a return-to- work plan thereby holding down the workers’ compensation costs. There are three major categories of workers compensation claims: 1) Medical only claims are claims that involve little or no time lost from work (3 days or less) and no disability payments; 2) Indemnity claims, which tend to be more serious injuries, and thus provide payments for lost wages for three or more days lost from work until full recovery after an injury; and 3) Indemnity claims which involve permanent disabilities. Permanent disability benefits (either permanent total disability or permanent partial disability) are paid to workers who never recover their full functions after an injury. The TPA investigates, accepts, or denies claims. Claims are paid based on the payment criteria for the claim. TPA issued payments are funded through SHARP. Key services include: • Minimize the City’s exposure to losses through employee work safety, wellness, and ergonomic training programs. • Manage the workers compensation processes according to the California State DIR regulations. • Serve on the SHARP Board and provide oversight of the TPA. • Provide mandatory reporting of injury and illness records (OSHA log 300) and recordkeeping. • Review injury and illness trends. • Communicate workplace safety and health practices and ensure workplace incidences (injuries, exposures, or illnesses) are reported, investigated, and that corrective actions are taken promptly. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 94 Fiscal Year 2025-26 Notable Budget Changes The annual revenue appropriation for this fund is comprised of internal service chargeback fees and SHARP grants. SHARP grants promote and enhance worker health and safety. In 2025-26, a $10,000 Wellness and Safety Grant will continue to be used for wellness promotion and training, and for safety training specifically related to the Illness and Injury Prevention Program (IIPP), such as the development of safety standards and compliance audit programs. Fiscal Year 2025-26 Work Plan and Priorities • Wellness Program Initiative - Continue Wellness Program Initiative (funded by SHARP Grant) to successfully minimize the exposure to incidents which may cause loss to the City or injury to its employees and promote employee wellness. • Return to Work, Modified Duty Program – To the extent possible and as needed, HR, department directors, managers, and line supervisors will actively identify appropriate light-duty assignments for injured employees, considering any anticipated restrictions recommended by employee’s physician. • Injury and Illness Prevention Program (IIPP) –Implement updated Injury and Illness Prevention Program (IIPP) and coordinate employee training sessions. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 95 Workers Comp Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Budget Budget 1. a.Managing workers compensation claims process and reporting requirements to ensure compliance with current workers compensation laws and City policies and procedures: 100%100%100%100%100% b.Regularly inspect injury claim files to insure they are up to date and all applicable information is in the file: 100%100%100%100%100% c.Keep procedures up to date and ensure employees have been trained and are well-versed in the claims process: 100%100%100%100%100% 2. a.Manage contract with third party administrator to ensure compliance with current laws, memoranda of understanding, and City policies and procedures: Yes Yes Yes Yes Yes 3. a.Provide and promote a safety and wellness program to encourage employees to maintain safe and healthy habits: Yes Yes Yes Yes Yes b. Annually provide safety training as required by the City's Injury and Illness Prevention Program, including at least six general sessions on rotating topics: Yes Yes Yes Yes Yes c. Annually provide one safety training as required by the City's Workplace Violence Prevention Policy: N/A N/A N/A Yes Yes Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Budget Budget 1.4 5 1 1 1 2.3 5 1 1 1 3.Number of open claims to date (since FY 1998/99):267 272 273 274 278 4.Number of closed claims to date (since FY 1998/99):262 272 273 274 278 5.Lost time in full work days:0 0 15 0 0 New claims (based on date of claim): Closed claims (based on date closed): Provide effective, efficient, and timely claims administration, working closely with supervisors, injured workers and workers compensation insurance carrier. Establish and uphold effective internal controls with Workers Comp third party administrators contracts. Provide safety training and internal controls to promote a safe working environment. Administrative Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 96 PAGE LEFT BLANK INTENTIONALLY Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 97 Department Overview The Community Development Department guides the physical development of the City and preserves the community’s quality of life by administrating zoning regulations, providing building and inspection services, code enforcement, arborist services, and ongoing advanced planning activities that implement the City’s General Plan. The Department also supports the City’s business environment through participation and funding of economic development activities and supports community engagement through various forms of communication, community meetings, and public hearings with the City’s Commissions and City Council. The Facilities Maintenance Services Program and the Furniture, Fixture and Equipment (FFE) Replacement programs together, are another division within the Community Development Department. Both programs are separate Internal Service Funds. The Facilities Maintenance Division provides city-wide facility custodial and maintenance services to ensure City facilities are safe, clean, and usable for employees and general public use. The FFE Replacement program supports Facilities Maintenance activities through the funding replacements of building assets as needed. Community Development Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Community Development Advanced Planning -39,221 -295,017 -230,362 -372,065 -372,065 -422,821 Building Inspection 872 610,097 743,440 139,572 714,380 224,483 Code Compliance -278,717 -362,033 -309,770 -359,517 -350,056 -289,747 Development Review -443,905 -513,558 -322,115 -638,628 -359,630 -607,511 Facility Maintenance 0 0 -199 0 0 0 Community Development Total (760,972) (560,510) (119,007) (1,230,638) (367,371) (1,095,597) *Facilities Maintenance and Furniture, Fixtures & Equipment Internal Service Funds are self-supporting and excluded from the General Fund presentation. Community Development Development Services Guides the physical growth of the City and preserves the community's quality of life Advanced Planning Guides physical development of the City and developes and updates the City's General Plan Code Compliance Promotes community health, safety, and welfare through zoning, licensing & other regulations as reflected in the City's Municipal Code Building Inspection A regulatory function that protects the community's safety, health, and property rights by ensuring minimum building and zoning standards are met Facilities Maintenance Ensures City facilities are clean, safe and functional for the general public and employee use Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 98 PAGE LEFT BLANK INTENTIONALLY Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 99 Development Services Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Development Review Revenue 564,312 549,680 857,329 657,334 936,332 824,898 440 - Charges for services 562,601 549,662 857,026 657,034 936,322 824,898 460 - Use of money & property 1,711 17 303 300 11 0 Expense 1,008,217 1,063,237 1,179,444 1,295,962 1,246,711 1,432,409 500 - Salaries & Benefits 741,204 801,507 880,931 943,930 905,329 1,066,600 610 - Operating Expenses 26,532 18,288 24,578 39,767 26,517 31,411 640 - Contract Services 10,894 13,880 31,645 26,200 28,800 35,000 650 - Professional Services 33,310 34,840 5,326 50,000 50,000 50,000 790 - Internal Services 196,276 194,722 236,964 236,065 236,065 249,398 Development Review Total (443,905) (513,558) (322,115) (638,628) (310,379) (607,511) Applicants for building and other development permits are required to comply with City codes, plans, and policies, in order to obtain the Planning Division’s approval of their projects. To help facilitate development projects, planning staff, the City Arborist, and land development engineering staff (collectively Development Services) assist applicants by reviewing, analyzing, and processing their applications. The process involves an assessment of a project’s consistency and compliance with the City’s Municipal Code, General Plan, and regulations, followed by plan checks and inspections. Depending on the project, more extensive historical, arboricultural, environmental, fire prevention, or geological reviews and assessments may also be required. Key services include: Planning Services • Provide on-demand services at the front counter, via telephone, and through email requests.  • Provide support to the Planning Commission, Heritage Preservation Commission, and City Council. • Provide staff support to the Public Works Department for City construction projects and CIP environmental assessments. • Assist the public with private land development questions and information. Review and process the following types of applications: • General Plan and Code Amendments • Architecture and Site, Residential Development, and Subdivisions • Environmental, Variances, Rezoning, and Planned Developments • Certificates of Use and Occupancy • Sign, Banner, and Conditional Use Permits Arborist Services • Assist planners with review of project site planning with respect to trees. • Provide specifications to residents and contractors so that trees are protected during construction. • Inspect projects prior to, during, and following construction to ensure adequate protection of trees. • Provide information to the public at the front counter and through phone and email for general information on tree pruning, selection, care, protection, and tree removal criteria. • Tree removal and “After the Fact” tree removal permits Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 100 Fiscal Year 2025-26 Notable Budget Changes Contract Planning Services funding will continue to be utilized to coordinate complex projects. Specialty software will be implemented for online project application and permit processing. Except for the SB330 applications received during the 2024/2025 fiscal year, development activity is expected to remain constant from previous years. Nearly all the development processes in Community Development are now completed online. Increased overall cost for specialty software and credit card processing fees have been incorporated into the departmental operating budget. Fiscal Year 2025-26 Work Plan and Priorities • SB 330 projects – Work continues on the review and processing (including environmental analysis) of SB330 “Builder’s Remedy” projects. Unless otherwise exempted by State law, these projects will require review by the Planning Commission and approval from the City Council. Updated Standard Conditions of Approval In collaboration with the City Attorney’s Office, City staff are preparing standard conditions of approval to help ensure that planning entitlements include minimum requirements. The standard conditions will be reviewed on a case-by-case basis to determine applicability to a particular project. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 101 Development Services Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Review planning applications and provide written comments deeming them complete or incomplete, within 30 days: 100%100%100%100%100% b.Review all zone clearances from the Building Division within 2 weeks:100%100%100%100%100% c.Work with City Attorney's office to update the zoning ordinance and land use policies in accordance with Council priorities, annually N/A N/A N/A Yes Yes d.Work with City Attorney's office to update the zoning ordinance and land use policies in accordance with new state laws, within 3-months of their effective date N/A N/A N/A 100%75% 2. a.1%1%1%1%1% b.100%100%100%100%100% c.N/A N/A N/A N/A 60-90 days 3. a.Percent of notices sent within 10 days of Planning Commission: meetings:100%100%100%100%100% b.Utilize three or more communication methods for all Community Development public outreach efforts (social media, postcards, etc.) N/A N/A N/A N/A 3 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.582 597 634*779 700 2.465 549 470 366 350 3.103 119 100 126 125 4.12 11 12 10 10 5.5 2 3 1 2 6.16 10 2 11 4 7.8 4 9 16 10 8.Development applications requiring geological review:43 39 44 43 44 9.Number of building permits finaled by planning (zone clearances) reviewed:N/A N/A N/A 94 100 10.Number of Business License Zone Checks processed annually:N/A N/A N/A 72 75 Number of complex projects (rezonings, planned developments, environmental review): Number of planning projects processed: Number of tree removal permits processed: Number of Arborist plan reviews: Number of Planning Commission Hearings: Number of Planning Commission Study Sessions: Number of public input meetings for citywide programs: Facilitate the development of land and structure consistent with City codes, plans, and policies. Analyze and process development applications efficiently and effectively. Percentage of applications continued at the request of the Planning Commission: Percentage of appealed applications upheld by the City Council: Enhance community awareness of land use projects. Average time between "application deemed completed" or completion of CEQA review, and project decision (includes Planning Commission/City Council): Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 102 PAGE LEFT BLANK INTENTIONALLY Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 103 Advanced Planning Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Advanced Planning Revenue 151,452 150,502 0 0 0 0 440 - Charges for services 151,452 150,502 0 0 0 0 Expense 190,673 445,519 230,362 372,065 372,234 422,821 500 - Salaries & Benefits 164,621 169,146 183,829 187,950 188,219 271,858 610 - Operating Expenses 490 1,015 2,185 2,000 1,900 2,200 640 - Contract Services 0 0 0 0 0 0 650 - Professional Services 0 12,658 150,000 150,000 115,500 790 - Internal Services 25,562 25,358 31,690 32,115 32,115 33,263 900 - Transfer to Capital Program 250,000 0 0 0 0 Advanced Planning Total (39,221) (295,017) (230,362) (372,065) (372,234) (422,821) Advanced Planning Services focus on guiding the physical development of the City by developing and updating the City’s standards, regulations, Specific Plans, and General Plan. The City’s General Plan is an adopted statement of policy for the physical development of the community. As such, it includes the following elements: Land Use, Housing, Circulation, Safety, Noise, Open Space, and Conservation. The City also establishes specific plans to provide additional guidance for future land use development in the plan area, with aspects such as detailed land use, design guidelines, and implementation strategies. Key services include: • Coordinate preparation of General Plan Element Updates, as needed. • Implement the 2023-2031 Housing Element Update. • Apply General Plan and Specific Plan policies to development projects and processes. • Develop administrative policies, plans, and ordinances in coordination with Advanced Planning updates. • Track development activity and implementation of the City’s Housing Element and General Plan for the Department of Housing and Community Development annual progress report. Fiscal Year 2025-26 Notable Changes Staff workplan activities in 2025-26 will focus on implementing the 2040 General Plan and 2023- 2031 Housing Element, including the following: • Saratoga Village Objective Design Standards • Code Amendments to Implement State Law • Amendment to Article 15-50 Tree Regulations Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 104 Fiscal Year 2025-26 Work Plan and Priorities • Annual Code Updates – Each year, staff identifies sections of the City Code that need updating, including removing inconsistencies, revising code which is difficult to interpret (e.g., ambiguous or subjective language), or amending code to reflect changes in state law (e.g. accessory dwelling units) • Saratoga Village Objective Design Standards – The 2023-2031 Housing Element includes a program to create objective design standards for the Saratoga Village. Public engagement efforts will include community input received through stakeholder interviews, a community questionnaire, and a community workshop. The City will also hold an in-person Joint Study Session with the Planning Commission and City Council that is open to the public. The input gathered at the joint Study Session will be reflected in a Public Review Draft for review and feedback at two study sessions, which may consist of a Planning Commission Study Session, a City Council Study Session, and/or Joint Study Session(s) with the Planning Commission and City Council. The feedback will be incorporated into a final draft of the Village Design Standards for review at Public Hearings before the Planning Commission and City Council. • Amend Article 15-50 Tree Regulations • Given concerns regarding wildfires, the Planning Commission will review the City’s tree regulations with regard to tree species in the City’s hillsides, wildland urban interface areas, and fire hazard severity zones. The Planning Commission will also review defensible space requirements and tree removal allowances in accordance with home insurance requirements Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 105 Advanced Planning Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Support the construction of at least 50 ADUs annually, including 15 very low and 15 low income ADUs. N/A N/A N/A N/A Yes b.Meet with 1-2 developers and non-profits annually to promote affordable housing opportunities. N/A N/A N/A N/A Yes 2. a.Five of seven General Plan were updated within last eight years:Yes Yes Yes Yes Yes b.Annual review of Housing Element submitted to State by deadline: Yes Yes No Yes Yes 3. a.Submit Annual Progress Report to State by April 1st deadline N/A N/A N/A N/A Yes b.Review state law annually and update the Municipal Code within 6 months of review, as needed. N/A N/A N/A N/A Yes a.Housing Element:Yes Yes Yes Yes Yes b.Land Use Element:Yes Yes Yes Yes Yes c.Circulation and Transportation Element:Yes Yes Yes Yes Yes d.Conservation Element:Yes Yes Yes Yes Yes e.Open Space Element:Yes Yes Yes Yes Yes f.Noise Element:Yes Yes Yes Yes Yes g.Safety Element:Yes Yes Yes Yes Yes Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.3 0 2 7 2 2.0 0 10 0 0 3.0 0 6 0 1 4.N/A N/A N/A N/A 2 Achieve quantitative objectives of the 2023-2031 Housing Element Number of General Plan amendments requested: General Plan complies with State of California requirements. General Plan elements are updated within the last eight years in order to administer and enforce development policies, and thereby maintain a high quality of life for the community. Number of ordinances completed (multiple section updates): General Plan Elements updated: Number of new or updated policies requiring Commission or Council approval Complete annual objectives of the 2023-2031 Housing Element Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 106 PAGE LEFT BLANK INTENTIONALLY Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 107 Code Compliance Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Code Compliance Revenue 9,257 9,097 11,517 9,100 18,561 12,600 440 - Charges for services 10,325 9,090 11,517 9,100 18,561 12,600 450 - Fines & penalties -1,068 7 0 0 0 0 Expense 287,974 371,130 321,287 368,617 342,333 302,347 500 - Salaries & Benefits 243,205 325,853 238,040 265,530 239,636 214,328 610 - Operating Expenses 1,624 2,345 1,958 3,400 2,500 3,300 650 - Professional Services 0 0 26,201 37,000 37,510 17,000 790 - Internal Services 43,145 42,932 55,088 62,687 62,687 67,719 Code Compliance Total (278,717) (362,033) (309,770) (359,517) (323,772) (289,747) The City’s Code Compliance Program supports community health, safety, and welfare through zoning, planning, business licensing, and other regulations as reflected in the City’s Municipal Code. Compliance is achieved through education, voluntary compliance, or direct enforcement of laws and municipal codes. The Code Compliance Officer investigates reported violations, conducts field inspections, gathers supporting evidence, maintains case files and, as necessary, prepares reports regarding violations. For code compliance cases which are not resolved through staff efforts or mediation, and a fine or enforcement action is issued, the City may need to utilize the services of a Hearing Officer, a contract attorney compensated for hours of service who will conduct a hearing if an appeal is requested for a code enforcement action issued by the City. The attorney is an impartial judge and does not have any other connection or working relationship with the City. Other key services in this division include: • Issue Special Event and Noise Exception Permits. • Administer masseuse and solicitor permit programs. • Enforce the City Municipal Code and continue with outreach and education efforts to increase the awareness of residents, businesses, and property owners about the City’s Municipal Code regulations. • Receive and maintain status on all violation complaints. Respond to, investigate, and abate legitimate complaints. • Resolve complex code and zoning violations and administer citation appeals. • Administer the Weed and Brush Abatement Program. • Assist the Building Division with un-permitted construction in progress and other Building Code violations. • Assist all other City Departments, the County Fire Department and the Sheriff’s Office. Fiscal Year 2025-26 Notable Budget Changes • No significant budget changes. Fiscal Year 2025-26 Work Plan and Priorities • Abatement Priorities –Efforts to prioritize responses to code compliance cases will be based on the Council’s adopted priorities and procedures. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 108 • Program Priorities – Development of new code compliance procedures to streamline work processes and improve workflow between Building, Planning and Code Compliance divisions. • Weed and Brush Abatement Program – The Code Compliance Officer manages these Programs, issues notices, inspects properties for compliance, and follows up with enforcement to abate overgrown vegetation, and assess costs and penalties against non-compliant property owners. Code Compliance Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a. Percentage of complaints receiving a response within 48 hours of receipt: 90%90%90%90%90% b. Average number of days to initiate investigation.N/A N/A N/A N/A 2 b. Average open to close cycle time for formal complaints:4 weeks 4 weeks 4 weeks 4 weeks 4 weeks c.Percent of violations resolved through voluntary compliance:90%90%85%85%90 2. a.Percentage of residents on the weed abatement list who voluntarily comply: N/A N/A N/A N/A 100 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.218 141 151 286 200 2.0 0 0 0 0 3.1 0 1 3 1 4.186 109 87 254 200 5.0 1 1 3 1 6.47 35 43 34 40 7.N/A N/A N/A N/A 5 Cases requiring City Attorney review: Ensure code compliance staff is responsive and accountable to the community. Ensure compliance with City regulations for permitted activities. Annual number of new code enforcement cases: Total number of Administrative Citations: Annual number of Code Enforcement cases investigated or mitigated/closed: Annual number of Solicitor Permits issued: Annual number of Noise Exemption permits issued: Annual number of Special Permits issued: Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 109 PAGE LEFT BLANK INTENTIONALLY Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 110 Building and Inspection Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Building Inspection Revenue 1,402,759 2,047,152 2,291,332 2,579,543 3,154,351 2,777,400 420 - Intergovernmental 0 0 0 0 0 0 440 - Charges for services 1,402,759 2,047,152 2,291,332 2,579,543 3,154,351 2,777,400 Expense 1,401,887 1,437,055 1,547,893 2,439,971 2,328,905 2,552,917 500 - Salaries & Benefits 1,000,026 978,069 1,039,287 1,141,870 1,059,104 1,205,558 610 - Operating Expenses 65,746 86,483 81,898 100,800 96,000 22,800 640 - Contract Services 88,649 126,733 91,852 783,500 760,000 865,000 790 - Internal Services 247,467 245,770 334,855 413,801 413,801 459,559 Building Inspection Total 872 610,097 743,440 139,572 825,446 224,483 The Building & Inspection Services Division is a regulatory function that protects the community’s safety, health, and property rights by ensuring minimum building and zoning standards are met. The City’s development ordinances and standards regulate the design, construction, quality of materials, use and occupancy of buildings, as well as the location and maintenance of all buildings within the City of Saratoga. Staff assist applicants with information concerning building regulations, disability access regulations, and other state and local ordinances, and provide plan check services in compliance with California Building Codes. Staff also maintain permit tracking and plan check systems, inspect commercial and residential buildings under construction, and reviews grading plans and perform grading inspections for construction projects with significant earthwork activity. The ability to expedite plans, check response time and issue over-the-counter permits improve customer service; therefore, the Division has implemented improvements that focus on utilizing technologies, standardizing processes, training staff, and attaining certifications. Key services include: Counter Services • Provide construction and zoning code information to developers, contractors, architects, engineers, homeowners, and the general public. • Maintain permit tracking and building permit system information. • Provide business license information and process new licenses and existing license renewals. Plan Check Services • Perform residential and commercial building, structural, and site plan reviews under California Building Code guidelines, State regulations, and City ordinances. • Provide building code information to applicants. Inspection Services • Perform on-site inspections of buildings and structures under construction. • Investigate housing code violations. • Coordinate building permit applications with other departments and agencies. Online Services • Provide step-by-step processes for obtaining the majority of City permits. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 111 • Allow residents and contractors the ability to apply for and pay for permits online. • Provide a means for uploading applications, plans, and supporting documents. • Provide construction and zoning code information to developers, contractors, architects, engineers, homeowners, and the general public. Fiscal Year 2025-26 Notable Budget Changes The Building Division is expecting revenue activity to remain constant with the previous year. Fiscal Year 2025-26 Work Plan and Priorities • Electronic Plan and Permit Processing – Refine and promote online services using the eTRAKiT portal which will provide web- based planning and building division submittals. Express Permits – implement new online program to automatically review and issue simple permits, such as re-roofs, water heaters, upgraded electrical panels and residential EV chargers. Building & Inspection Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of inspection requests scheduled within 2 business days of request: 99%99%99%99%99% b.Percentage of initial plan checks completed within 15 days of receipt: 99%99%99%99%99% c.Percentage of permits isued that are withdrawn:N/A N/A N/A 0.50%0.50% d.Ratio of Minor Permits to Major Permits issued N/A N/A N/A 4:1 4:1 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1 2,320 1,937 1,900 1,900 2,000 2.450 450 450 450 450 3.7,156 8,029 8,271 8,000 8,000 4.498 988 700 700 800 5.$113 $191 $185 $185 $190 6.N/A N/A N/A N/A 50 7.N/A N/A N/A N/A 500 9.N/A N/A N/A N/A 65Number of ADU permits issued annually: Number of online permits submitted: Number of building plan checks completed: Number of business license facility inspections: Number of inspections completed: Dollar value of construction permitted (in $Millions): Maintain staff's responsiveness and accountability to the community. Number of Building Division permits issued: Number of Over-the-Counter Plan Checks for Remodels: Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 112 Facility Maintenance Internal Service Fund Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Facility Maintenance Revenue 1,151,959 1,117,999 1,397,512 1,200,000 1,200,000 1,440,000 460 - Use of money & property 1,151,959 1,117,999 1,397,512 1,200,000 1,200,000 1,440,000 Expense 932,450 1,139,349 1,257,571 1,563,847 1,617,317 1,519,807 500 - Salaries & Benefits 415,182 460,269 596,753 577,770 618,787 594,685 610 - Operating Expenses 164,986 208,573 269,996 253,425 276,690 284,275 640 - Contract Services 139,960 170,517 159,935 233,500 222,688 218,000 650 - Professional Services 0 370 0 0 0 0 770 - Fixed Assets 60,463 148,186 47,999 316,170 316,170 248,647 790 - Internal Services 151,858 151,435 182,888 182,982 182,982 174,200 Facility Maintenance Total 219,509 (21,350) 139,941 (363,847) (417,317) (79,807) The Facility Maintenance Division is a citywide support function for custodial, maintenance, repair services, and building improvements for all facilities at the Civic Center, Prospect Center, and Museum Park, and supports the needs of the tenants of City leased buildings as defined in lease agreements (e.g., Senior Center) and LGS. The Facility Maintenance staff ensures the City’s facilities are clean, safe, and in a usable condition at all times for employees and the general public. Regular preventative maintenance services are on a schedule, which include items such as painting, roof maintenance, pest control, emergency generator testing and upkeep, HVAC, and alarm servicing. Other maintenance repair services such as electrical and plumbing repairs are contractually provided on an as-needed basis. The Facility Maintenance program also funds citywide facility expenses such as water, sewer, electricity and natural gas utilities, maintenance, and janitorial supplies and manages all city owned building security and access (keys and access cards). Facility Maintenance is accounted for as an Internal Service Fund program, with cost allocations based on service/support levels. Internal service charges represent costs associated for custodial and building maintenance. Internal Service Funds recognize costs on an ongoing basis through stabilized annual charges based on long-term operational and asset replacement costs. This averaging of costs helps to maintain fiscal sustainability. Due to building size and public use factors, the majority of the Facility Program’s service/support costs and functions focus on non-staff buildings such as the Civic Theater, Community and Senior Centers, Saratoga Prospect Center, and Museum Park buildings. The Facility Maintenance’s program cost to support janitorial, repair, and maintenance functions is allocated to operational programs based primarily on square footage percentages the program uses, with the public common area usage charged to the Non- Departmental Section’s General Administration Program. Key services include: • Provide facilities that are clean, safe, and usable for the public and City employees. • Follow environmentally friendly purchasing policies, sustainability, and green building practices. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 113 • Maintain facilities on a regular schedule to provide efficient and cost-effective maintenance. Fiscal Year 2025-26 Notable Budget Changes LED lights will continue to be installed throughout the City buildings when lighting replacement is needed. This project will be ongoing until all lights are updated with LED technology. Fiscal Year 2025-26 Work Plan and Priorities • Facility and Infrastructure Project Management – Facility staff will oversee planned facility improvement projects to ensure City facilities are clean, safe, and maintained according to best practices. • Environmental Sustainability - Staff will continue ongoing environmentally friendly and energy-saving projects such as installing energy-saving HVAC units in City buildings and maintaining EV charging stations at the City Civic Center. Facility Maintenance Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Annual Fire Alarm and Emergency Lights System Testing N/A N/A N/A 100%100% b.Semi-Annual Emergency Generator Testing N/A N/A N/A 100%100% c.Semi-Annual Kitchen Suppression Systems Testing N/A N/A N/A 100%100% d.Monthly Fire Extinguisher Testing N/A N/A N/A 100%100% 2. a.Quarterly preventative maintenance of all City HVAC systems:100%100%100%100%100% b.Six-days per week cleaning of all City facilities including emptying trash, vacuuming, mopping, and cleaning windows, etc.: 100%100%100%100%100% Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.3,500 3,500 3,500 3,500 3,500 2.11 11 11 11 11 3.4 4 4 2 2 4.7 20 36 33 36 5. Number of Event setups N/A N/A N/A 8 10 6.Percentage of work orders completed within three working days N/A N/A N/A 90%90% 7.Number of FFE (funiture, fixtures and equipment) projects N/A N/A N/A N/A 7 Refinish wood floors annually: Setup and takedown of Council Chamber dias: Maintain AED units on a monthly basis: Provide safe, functional, and attractive City buildings for the enjoyment of the public and to house the provision of City services. Provide safe and functional, City buildings using environmentally sensitive and cost-effective practices. Number of work orders completed: Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 114 Furniture, Fixtures & Equipment Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Furniture, Fixtures & Equipment Revenue 200,000 198,737 200,000 100,000 100,000 40,000 460 - Use of money & property 200,000 198,737 200,000 100,000 100,000 40,000 Expense 60,463 148,186 47,999 316,170 316,170 248,647 770 - Fixed Assets 60,463 148,186 47,999 316,170 316,170 248,647 Furniture, Fixtures & Equipment Total 139,537 50,551 152,001 (216,170) (216,170) (208,647) The Facility FFE Replacement Internal Service Fund (ISF) Program was added in recognition that the replacement of facility components is ongoing and should be treated similarly to how the City plans for technology equipment and vehicle replacements. The use of a steady annual charge helps to improve the irregular cost and timing of large facility equipment purchases over the years, as well as provide a more accurate cost of operations on an ongoing basis. The two direct General Fund allocations are in recognition of the program’s functions – Facility Rental charges are related to rent producing assets, and non-departmental charges are for general city-wide use that is not specific to City services. The ISF Facility Maintenance program receives an allocation that is subsequently reallocated out to the General Fund operational programs through the Building Maintenance allocation. Initially, furniture, fixtures, and equipment are purchased through a requesting department’s budget, or as part of a capital project for general citywide assets. If facility assets are replaced on an ongoing basis, the new equipment will be added to the department’s replacement schedule list. The addition of the FFE replacement program stabilizes funding requirements by accumulating funds annually over an asset’s lifespan to both ensure funding is available when needed, and to appropriately recognize overhead costs. This practice allows the City to replace facility FFEs on a scheduled basis, with built-in flexibility for unexpected timeframes or costs. Key services include: • Identify and track facility furniture, fixtures, and equipment. • Accumulate and provide annual funding for asset replacements. • Assess the condition of furniture, fixtures, and equipment for proper replacement timing. • Identify and procure best solution equipment. Fiscal Year 2025-26 Notable Budget Changes The annual funding chargebacks are set at with the expectation that this level of funding will provide adequate resources to purchase and replace identified facility assets for many years. The long-term replacement plan is reassessed each year to include reassessed replacement cost values, delays or expedited replacements, newly identified assets, or the addition of new assets. Planned replacements for the 2025-26 budget year total $248,647 and are listed in the following FFE Equipment Replacement Schedule. Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 115 LOCATION/CATEGORY ASSET LIFESPAN EST. COST City Hall Citywide Tables and Chairs 10 10,000 City Hall Portable Sound Podium 10 5,000 City Hall - CDD/PW Windows 40 52,193 Civic Theater/Council Chambers Theater/Council Chambers Auditorium - HD Projector (Seating Area)60 22,001 Community Center Community Center-Main Building MPR Sound System 10 20,000 Prospect Center Friendship Hall MPR Sound System 10 20,000 Grace Building Lighting 17 11,570 Corporation Yard Corporation Yard HVAC Replacement #2 15 30,477 Warner Hutton House Warner Hutton House Furniture 20 14,449 Senior Center Senior Center Portable Sound Podium 10 5,000 Portables Senior Portable Flooring 25 22,401 Senior Portable HVAC Unit # 1 23 17,778 Senior Portable HVAC Unit #2 23 17,778 TOTAL FFE REPLACEMENT FUNDING: 248,647$ FURNITURE, FIXTURES & EQUIPMENT 2025-26 REPLACEMENT SCHEDULE Community Development Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 116 PAGE LEFT BLANK INTENTIONALLY Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 117 Department Overview The Public Works Department oversees engineering and capital project functions; reviews the public’s development plans for impacts to roadways and public right of ways; maintains the City’s parks, trails, medians, rights-of-way, grounds, bridges, and landscape districts; repairs and maintains the roadway systems, including streets, traffic and pedestrian signals, lighting, and storm drains; provides vehicle maintenance oversight and minor maintenance; and ensures the City’s environmental responsibilities are fulfilled, including externally- driven responsibilities under the Clean Water and Solid Waste programs. The Public Works Department also supports the Traffic Safety Commission, the Pedestrian, Equestrian, Bicycle and Trails Advisory Committee, and facilitates community volunteer efforts such as the Village Gardeners and various Scout projects. Public Works consists of five main operational programs that provide information and outreach to the City’s residents, businesses, and the public regarding the department’s activities and infrastructure projects that may affect them and provides resources that are available to the community. Additionally, the department oversees two internal support programs: Equipment Maintenance and Equipment Replacement; and 32 separately funded Landscape and Lighting Assessment Zones. Public Works General Engineering Provides oversight for the City's engineering activities not related to private development Development Engineering Provides services for private development projects to ensure accordance with City Standards Environmental Services Oversees City's Clean Water and Solid Waste programs and promotes environmental services Streets & Stormdrains Provides ongoing maintenance to City's public infrastructure including roadways Parks & Landscape Maintenance Provides well maintained landscape, turf to City Parks, and open spaces Equipment Maintenance Ensures all vehicles and equipment are safe, function well, and are maintained. Landscape & Lighting Districts 32 districts Capital Improvement Progam City prioritized workplan for capital projects Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 118 Public Works Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Public Works Engineering Development -76,818 -159,065 -139,582 -176,046 -186,046 -128,179 Environmental Services -695,312 -752,300 -1,006,263 -870,764 -721,066 -681,645 General Engineering -339,510 -519,036 18,431 -982,264 -426,910 -936,191 Parks & Landscape Services -2,761,665 -2,710,125 -3,261,801 -3,706,722 -3,705,352 -4,198,078 Streets & Storm drains -1,727,532 -1,852,374 -2,010,361 -2,166,067 -2,162,150 -2,354,030 Public Works Total (5,600,837) (5,992,901) (6,399,577) (7,901,863) (7,201,524) (8,298,124) * Vehicle & Equipment Maintenance and Vehicle & Equipment Replacement Internal Service Funds and Lighting and Landscape Districts are self-supporting and excluded from the General Fund presentation. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 119 General Engineering General Engineering Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed General Engineering Revenue 807,996 734,846 1,538,599 600,250 1,155,604 750,250 440 - Charges for services 807,996 734,846 1,538,599 600,250 1,150,879 750,250 460 - Use of money & property 0 0 4,725 0 Expense 1,147,506 1,253,882 1,520,169 1,582,514 1,572,709 1,686,441 500 - Salaries & Benefits 888,346 966,680 1,184,603 1,178,770 1,189,470 1,265,762 610 - Operating Expenses 36,909 35,063 39,701 42,410 39,655 45,100 640 - Contract Services 8,776 11,596 32,241 35,950 21,700 37,000 650 - Professional Services 95,436 124,210 114,607 169,000 165,500 169,000 790 - Internal Services 118,040 116,334 149,016 156,384 156,384 169,579 General Engineering Total (339,510) (519,036) 18,431 (982,264) (417,105) (936,191) The General Engineering Program provides oversight for the City’s engineering activities not related to private development. This includes the design, management, and administration of the Capital Improvement Plan to improve the City’s public infrastructure (e.g. streets, storm drains, sidewalks, signalized intersections, parks, and medians) with an emphasis on delivering capital projects within planned schedules and budgets and department staff applying for annual grant opportunities. General Engineering operations also include traffic management, the development of Geographic Information System (GIS) data to manage the City’s infrastructure, and processing annexation requests, right-of-way, and property boundary issues. Key services include: • Provide assistance and information to the public regarding engineering services. • Provide administrative and engineering support services for capital improvement projects including preparing bids and contracts. • Perform traffic engineering analyses and manage traffic concerns. • Maintain current statistics on traffic accidents, traffic volumes, speeds, and street mileage, and prepare annual reports to state and local agencies, as required. • Review requests and issue encroachment permits to residents and utility companies. • Review and issue oversize load permits. • Process document imaging of department documents. 2025-26 Notable Budget Changes The revenue stream in 2025-26 is expected to remain at prior year levels. The expenditure budget has been increased for City Traffic Engineering Services to include a Citywide Speed Survey. 2025-26 Work Plan and Priorities • Capital Improvement Program Oversight Provide plans, specifications, estimates and right-of-way documents, coordinate consultants, and administer contracts. Fiscal Year 2025-26 CIP Project oversight includes Quito Road Bridges replacement, Bellgrove Park Playground Replacement, Pedestrian Streetlights Installations, Pierce Road Culvert Repairs, ARPA Funded Projects, and the Annual Pavement Management Program. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 120 • Traffic Management – Receive resident traffic safety concerns and investigate by means of the city’s Traffic Engineer and Traffic Safety Commission as needed. With approximately 1,800 deputy hours focused on traffic control services, the Sheriff works with the City’s schools and the Traffic Safety Committee to improve traffic management around school activity. Future traffic management projects for the upcoming year will include roadway markings for traffic calming on various streets by direction of the Commission. Larger projects include the installation of bike lanes on Saratoga Avenue and Allendale Avenue. • Laserfiche Document Management Project – Staff will continue to prepare the backlog of Public Works documents for scanning services, and when returned, will assess the quality of the files to ensure they are legible, complete, and correctly scanned and indexed. General Engineering Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Respond to traffic safety concerns from residents:100%100%100%100%100% b. Utilize traffic engineer experts to identify solutions to potential roadway hazards: Yes Yes Yes Yes Yes 2. a.Issue encroachment permits for residential projects within 3 weeks of receipt of application: 100%100%100%100%100% b.Maintain average pavement condition index at a rating of 70 or above: No No No No No c. Establish best practices roadway maintenance plans, such as for resurfacing, pothole repairs, tree pruning, and weed control: Yes Yes Yes Yes Yes d.Respond to road hazard complaints within 48 hours of notification: 100%100%100%Yes Yes Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.30 35 16 25 25 2.468 513 579 586 500 3.7 5 4 5 4 4.110 145 200 200 150 Number of bids issued: Number of contracts executed: Increase roadway safety through effective traffic management practices. Maintain safe, well-functioning roadway infrastructure. Number of traffic concerns investigated and reviewed by Traffic Safety Committee: Number of encroachment permits issued: Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 121 Development Engineering Engineering Development Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Engineering Development Revenue 78,450 -585 43,538 10,000 0 67,551 440 - Charges for services 78,450 -585 43,538 10,000 0 67,551 Expense 155,268 158,480 183,120 186,046 187,877 195,730 500 - Salaries & Benefits 86,833 91,065 98,146 99,390 102,971 102,305 610 - Operating Expenses 304 1,068 655 750 750 750 640 - Contract Services 289 228 0 250 0 250 650 - Professional Services 2,670 1,820 2,735 4,000 2,500 4,000 790 - Internal Services 65,171 64,300 81,583 81,656 81,656 88,425 Engineering Development Total (76,818) (159,065) (139,582) (176,046) (187,877) (128,179) The Development Engineering Program, in coordination with the City’s Community Development Department, provides services for private development projects to ensure they are constructed in accordance with City standards. Development Engineering Services includes reviewing engineering plans and specifications, subdivision maps, and lot line adjustments; and controlling encroachments in the public right-of-way connected to private developments ensuring compliance with the City’s NPDES permit. This program seeks to fully recover the costs associated with development services. Key services include: • Review and comment on Design Reviews and Tentative Map applications. • Review initial improvement plan submittals. • Issue encroachment permits for single family developments. 2025-26 Notable Budget Changes Fiscal Year 2025-26 revenues are based on the number of development projects received. Fiscal Year 2025-26 budgeted expenditures continue to reflect a shift of staff time from development oversight to general engineering program work. With Community Development staff providing more of the development services, engineering staff are now freed up to focus on City infrastructure projects. The remainder of program expenditures reflect minimal operational costs other than staff salary and internal service charges. Operational expenses include a small amount of office supplies and external civil engineering services. 2025-26 Work Plan and Priorities • Development Review – Review applications for compliance with City, State and Federal laws for public improvements in the city’s right-of-way. Process subdivision development plans, reviewing for traffic impacts. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 122 Development Engineering Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of development applications reviewed within 30 days: 100%100%100%100%100% Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.72 46 45 50 50 2.N/A N/A N/A N/A N/A 3.3 2 1 23 1 Maintain a high quality of life through development review by adhering to City standards. Number of development applications processed: Development applications requiring geological review: Number of subdivision plan check reviews processed: Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 123 Environmental Services Environmental Services Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Environmental Services Revenue 277,344 231,442 428,683 59,296 208,994 213,965 413 - Other Taxes 100,000 100,000 99,999 0 0 0 416 - Franchises & Surcharges 149,086 105,408 302,272 46,296 192,942 213,965 420 - Intergovernmental 28,257 26,033 26,413 13,000 16,052 0 Expense 972,656 983,742 1,434,946 930,060 765,135 895,610 500 - Salaries & Benefits 311,347 326,075 320,288 377,370 327,509 275,517 610 - Operating Expenses 389,409 360,387 557,014 346,743 310,083 349,243 640 - Contract Services 239,825 260,639 512,279 159,000 80,000 220,000 650 - Professional Services 0 4,991 4,991 5,000 5,596 6,000 790 - Internal Services 32,076 31,650 40,374 41,947 41,947 44,850 Environmental Services Total (695,312) (752,300) (1,006,263) (870,764) (556,141) (681,645) The City of Saratoga’s Environmental Services Program supports an Environmental Program in the Public Works Department that oversees the following three areas relating to sustainability: solid waste management; clean water compliance; and clean energy. The level of service delivery to community members and agency compliance for these three areas are mostly guided by state laws and regional requirements. Key services include: • Provide street sweeping services for the City’s streets and parking lots. • Provide storm drain cleaning. • Manage the City’s Clean Water Program to fulfill the City’s requirements of the NPDES permit. • Manage the City’s agreements with the West Valley solid waste Joint Powers Authority and the hauler to ensure that community members are receiving quality integrated waste management collection services and paying reasonable service rates. • Monitor sustainability programs that are offered in other cities to ensure that the same programs are offered to Saratoga community members. 2025-26 Notable Budget Changes Saratoga’s share of the Solid Waste JPA assessment will increase due to additional general services costs for implementation of the City’s Mandatory Organic Waste Disposal Reduction Ordinance mandated by SB 1383, Collection Contract Implementation, Franchise Fee Study, C&D Program Development, Street Sweeping Program, Development, and Grant Administration. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 124 2025-26 Work Plan and Priorities • Clean Water Program –Continue to work with the West Valley Storm Water Authority (WVSA) – formerly the West Valley Clean Water Program Authority (WVCWPA) - staff to meet regulations resulting from the National Pollution Discharge Elimination System (NPDES) and their Municipal Regional Permit (MRP). The MRP regulates regional stormwater regulations for activities related to construction sites, industrial sites, illegal discharges and illicit connections, new development, and municipal operations. Cities must renew their MRP every 5 years and during that period of time, the state has the ability to tighten regulation regional requirements. Changes in state requirements most directly impact the City’s General Fund. • Hazardous Household Waste – Continue efforts to inform Saratoga residents of the HHW program and the proper disposal of hazardous substances. The goal is to increase participation levels. • Solid Waste Management – Continue to work with the West Valley Solid Waste Management Authority and residents to provide quality solid waste and recycling services to Saratoga community members and remain in compliance with state mandated programs. Most recently, the state passed Senate Bill 1383 (SB1383) in 2016 to reduce organic waste disposal by 75% and increase edible food recovery by 20% by 2025. Under this law, jurisdictions must provide organics recycling services to nearly all residents and businesses. Jurisdictions must also develop or expand existing organic collection systems in all sectors and plan for adequate organic processing. The City adopted its Mandatory Organic Waste Disposal Reduction Ordinance in November 2021 to comply with the SB 1383 requirements. Additionally, jurisdictions must implement other requirements, such as contamination monitoring, record keeping, and reporting and enforcement. The City will experience an increase in spending to comply with SB 1383 and the expenses will be paid by the City’s operating budget. • Clean Energy Program – Continue to meet the goals of the Saratoga Climate Action Plan 2030 and work with local and regional agencies to support sustainable best practices. Over the past few years, the City has been increasing energy efficiency in buildings, electrifying buildings and appliances, accelerating zero emission vehicle adoption, and using clean, renewable energy sources.  The City works in partnership with Silicon Valley Clean Energy (SCVE) since 2016 to reduce greenhouse gas emissions within the Saratoga community. In 2017, the City began purchasing 100% renewable electricity from SVCE for all municipal facilities.   In 2019, the City adopted a green building reach code that requires new one and two-family homes and townhouses with attached garages to install two EV charger outlets, with one outlet located on the exterior of the building. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 125 Environmental Services Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Tons of solid waste collected in Saratoga:22,000 9,743 9,500 8,675 9,000 b.Tons of solid waste diverted from landfills:12,000 14,269 14,000 14,275 14,000 c.Meet State requirements for garbage diversion:Yes Yes Yes Yes Yes 2. a.Percentage of regional meetings attended:100%100%100%100%100% b. Percentage of required reports completed and submitted by deadline: 100%100%100%100%100% 3 a.Percentage of regional meetings attended:100%100%100%100%100% b. Respond to reports of illicit and illegal discharges:100%100%100%100%100% Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.1182 836 2000 984 800 2.Miles of streets swept per month:550 550 550 550 550 3.1 1 1 1 1 Number of Saratoga residents participating in Countywide Household Hazardous Waste Program: Number of bags of garbage collected at creek clean-up events: Provide effective oversight of waste collection and recycling programs. Meet requirements of the Non-Point Source Pollution Prevention Permit specified for City staff: Protect Saratoga's natural environment through participation in the West Valley Clean Water Program. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 126 Streets and Storm Drains The Streets and Storm Drains Program provides for ongoing maintenance and minor repairs to the City’s roadways, storm drains, asphalt pathways, bridges, curbs, gutters, and concrete sidewalks to ensure the City’s public infrastructure is maintained in a safe, sustainable, and cost-effective manner. Program activities include small street repair projects, filling of potholes, maintenance of roadway signs, traffic markings (paint), signals, streetlights, and debris removal. Streets program staff coordinate program work with the General Engineering Program for traffic and roadway projects, and with the Parks Program for weed control and storm drain work. Auxiliary duties include storm preparation and cleanup, risk management/damage prevention activities, responding to public requests, and emergency preparedness functions. Other key services include: • Maintain roadway infrastructure with minor repairs, provide roadside weed control, and conduct litter pickup and bicycle lane sweeping along arterial streets and school sites. • Remove illegal signage from public rights-of- way. • Resolve sight distance, obstruction, and encroachment complaints. • Respond to graffiti removal requests. • Inspect open channel drainage facilities to ensure blockages do not impede drainage flows. • Respond to emergencies impacting roadways, drainage, and other City facilities. • Assist with community events, such as the Chamber of Commerce’s Village events, the Blossom Festival, the 4th of July event, and the Annual Village Tree Lighting. • Report PG&E owned streetlight outages to PG&E. • Repair City owned streetlights. 2025-26 Notable Changes The City expects approximately $200,000 per year from a voter approved $10 Vehicle Registration Fee surcharge which is used to help support this program’s maintenance activities. While roadway resurfacing contracts and related expenses are funded in the Capital Improvement Plan, staffing costs for contract oversight and roadway maintenance services are provided Streets & Storm Drains Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Streets & Storm Drains Revenue 188,243 191,908 228,397 200,000 203,917 200,000 420 - Intergovernmental 186,722 176,838 226,501 200,000 200,000 200,000 440 - Charges for services 1,521 15,070 1,896 0 2,627 0 460 - Use of money & property 0 0 1,290 0 Expense 1,915,775 2,044,283 2,238,757 2,366,067 2,397,107 2,554,030 500 - Salaries & Benefits 1,080,951 1,137,591 1,164,619 1,177,930 1,219,970 1,240,548 610 - Operating Expenses 103,980 107,556 121,626 131,540 150,540 144,247 640 - Contract Services 248,052 318,446 341,462 304,500 274,500 315,000 790 - Internal Services 482,792 480,690 611,050 752,097 752,097 854,235 Streets & Storm Drains Total (1,727,532) (1,852,374) (2,010,361) (2,166,067) (2,193,190) (2,354,030) Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 127 through this General Fund Street and Storm Drain Maintenance Operating Budget program, through both staff and contract service efforts. Other expenditures in this budget include funding for traffic light repair services, street tree maintenance, minor tools, supplies, equipment, and training for staff to carry out this work, as well as internal service charges to support the program. 2025-26 Work Plan and Priorities • Pavement Management – Street Program staff will manage various street capital projects and all maintenance work on City roadways (145 miles), storm drains (45 miles), sidewalks (15 miles), bridges (20), as well as maintain approximately 15,000 signs and street restriping as needed. Council Policy, effective 2016-17, set a goal of $2 million of funding be designated for Street Resurfacing in the Capital Budget. Funding from the VTA Measure B program, Gas Tax, General Fund allocations, and various grants provides the remainder of CIP Street project funding while Street staff time and regular maintenance work is budgeted in the Operating Budget. In 2025-26 the budget will be $3.1 million, which represents additional revenue from PMP dedicated revenues and Gas Tax. • Infrastructure Maintenance & Repairs – Projects administered under the Roadway Infrastructure Maintenance & Repairs capital project are supported by Streets and Storm Drain program staff, with supplies or contract services funded by the CIP. • Retaining Wall Maintenance – Projects administered under the CIP for Retaining Wall repair projects are funded through the CIP but supported by Streets and Storm Drain program staff in the operating budget. Minor retaining wall maintenance expenses will continue to be funded through the operating budget. Streets & Storm Drains Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Maintain Pavement Condition Index average above 70 (out of 100 total points): 65 68 67 65 69 b.Percentage of potholes repaired within 24 hours of notification:100%100%100%100%100% 2. a.Storm drains cleaned and maintained to function properly and avert damage from major storm events: 1,050 1,050 1,050 1,050 1,050 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.1,200 172 1,500 15 25 2.$0 $0 $0 $0 $0 To provide safe and functional roadway systems throughout the City. Maintain safe, well-functioning infrastructure. Number of signs installed and replaced: Amount of grant funding the City received for street resurfacing: Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 128 Parks & Landscape Maintenance Parks & Landscape Services Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Parks & Landscape Services Revenue 143,075 135,067 148,408 156,989 158,359 174,071 440 - Charges for services 128,787 130,167 146,632 151,489 147,068 167,291 460 - Use of money & property 14,288 4,900 1,776 5,500 11,291 6,780 Expense 2,904,740 2,845,192 3,410,209 3,863,711 3,946,676 4,372,149 500 - Salaries & Benefits 1,157,457 1,141,283 1,314,336 1,359,080 1,372,596 1,395,862 610 - Operating Expenses 485,241 478,541 604,140 596,225 701,924 583,475 640 - Contract Services 820,487 773,389 928,257 1,235,100 1,198,850 1,636,180 770 - Fixed Assets 0 12,526 0 0 0 0 790 - Internal Services 441,555 439,453 563,477 673,306 673,306 756,632 Parks & Landscape Services Total (2,761,665) (2,710,125) (3,261,801) (3,706,722) (3,788,317) (4,198,078) The focus of the Parks & Landscape Maintenance Program is to provide attractive, well maintained, water efficient landscaping and turf through the management and maintenance of the City’s parks, trails, open spaces, and facility grounds, as well as the landscaped medians and islands in the roadways. Facilities within the City’s parks, trails, and open spaces such as bathrooms, pedestrian lighting, walkways, playground, and other recreation facilities are safe, clean, and well-maintained for residents and visitors. The Parks & Landscape Maintenance Program is responsible for maintaining 87 acres of parkland in 14 parks, and 250 acres of trails and open space areas throughout the City. The City-owned Hakone Gardens Park Japanese Garden areas are tended by a separate non-profit foundation; however, the City continues to maintain the facility’s infrastructure. Key services include: • Maintain all parks, trails, and open space areas in a safe, usable, and attractive condition. • Foster community awareness and support of the City’s parks and open space resources. • Coordinate and assist sport groups with use and care of recreational facilities. • Aid with community events, such as the Chamber of Commerce’s Art & Wine Festival, the Blossom Festival, the 4th of July event, the Annual Village Tree Lighting, Arbor Day, Movie Night, and the Heritage Orchard Community Harvest. • Provide attractive, well maintained landscaped areas with plant maintenance and functioning irrigation systems. • Maintain trash receptacles throughout the City. • Provide management and oversight of the City’s Landscape & Lighting District contract maintenance work. • Conduct monthly playground inspections to maintain safety standards. • Maintain pedestrian lighting fixtures throughout City parks, properties, and Landscaping and Lighting Districts. Fiscal Year 2025-26 Notable Budget Changes Contract services for tree work and maintenance will continue to increase. Additional funding has been added for the Citywide Tree Inventory project. The Park & Landscape Maintenance Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 129 expenditure budget includes funding for landscaping materials, supplies, equipment, and services. Annual funding is included to replenish playground Fibar at the various parks and additional tree work. The cost of water continues to play an important role in Parks & Landscape operations, making drought tolerant planting a focus. The remainder of the expenditure budget is for staffing and internal service charges. Fiscal Year 2025-26 Work Plan and Priorities • Water Efficiency – The Parks and Landscape Maintenance Program will continue to monitor the City’s irrigation system to reduce water use through plant selection, soil management, and irrigation methods. Turf areas will continue to be investigated as potential conversion sites into native landscape, hardscape or mulched areas to reduce water usage.  • Playground Safety Improvements – Staff continues to oversee the safety and structural integrity of playground equipment at all parks. Improvements include converting sand surfaces to engineered wood fiber material as mandated by the “Fall Zone/Impact Attenuation Guidelines.” In 2025-26, Bellgrove Park will be improved with updated designs of playground equipment and all rubber surfacing. • Playground Monitoring – Monitor playgrounds on an on-going basis in accordance with a 15 to 25-year replacement schedule. Replacement criteria are based on major equipment wear and tear and changes in safety regulations on outdated structures. • Parks, Trails, Grounds & Medians (PTGM) Fixed Asset Oversight – Staff will manage PTGM fixed asset replacements in accordance with funding availability in the PTGM capital project, assessing and revising replacements schedules as necessary. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 130 Parks & Landscape Maintenance Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of parks with playground equipment inspected monthly: 100%100%100%100%100% 2. a.Percentage of reports of needed park maintenance receiving response within 48 hours: 100%100%100%100%100% b.Percentage of reports of needed trail maintenance receiving response within 48 hours: 100%100%100%100%100% 3. a.Staff Maintenance workers maintaining pesticide licenses:100%100%100%100%100% b.Improved irrigation controllers installed to increase water efficiency: 3 1 32 3 5 c.Turf removed and converted to landscape or hardscape for water conservation (in square feet):15,088 0 0 0 0 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Actuals 1.191 191 191 191 191 2.10 7 8 3 5 3.6 5 6 6 6Parks and Recreation Commission Meetings: Maintain safety standards in parks and playgrounds. Protect Saratoga's natural beauty by maintaining parks and open space. Protect the environment through sustainable practices. Total acres of City parks maintained: Total number of new trees planted in City parks: Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 131 PAGE LEFT BLANK INTENTIONALLY Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 132 Vehicle & Equipment Maintenance Vehicle & Equipment Maintenance Internal Service Fund Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Vehicle & Equipment Maintenance Revenue 275,000 273,263 274,770 350,000 350,000 400,000 460 - Use of money & property 275,000 273,263 274,770 350,000 350,000 400,000 Expense 298,688 283,193 362,735 375,083 355,683 450,607 500 - Salaries & Benefits 114,295 102,993 128,649 134,720 133,888 140,370 610 - Operating Expenses 77,982 73,031 69,608 68,100 74,532 85,200 640 - Contract Services 46,617 49,275 86,552 90,000 65,000 130,000 790 - Internal Services 59,794 57,894 77,926 82,263 82,263 95,037 Vehicle & Equipment Maintenance Total 160,705 170,270 146,121 215,280 216,112 259,630 The Vehicle & Equipment Maintenance Fund Program is operated as an Internal Service Fund and ensures that all vehicles and equipment are safe and function well. Staff maintain the repair, ownership, warranty, and maintenance records of vehicle and equipment inventory and perform monthly operational tests of emergency generators. Mechanical and body work repairs are provided through auto and equipment shops and services. Key services include: • Provide preventative maintenance and repairs for all City owned vehicles and equipment. • Comply with State and County air quality requirements. • Maintain the City’s fueling system and equipment. • Perform routine safety inspections to ensure safe operation of fleet. Fiscal Year 2025-26 Notable Budget Changes Revenues from this program reflect allocated charges to departments with assigned vehicles for the cost of providing maintenance and repair services and fueling vehicles and equipment. The Internal Service Fund chargeback increased to $350,000 in anticipation of increased maintenance costs. Increases in the cost of fuel are offset in part by the transition to more electric vehicles in the fleet. The Vehicle & Maintenance program chargeback is set approximately equal to operating expenditure. At year-end, any net operations savings help to increase fund balance reserves in line with Council policy. Overall, this budget supports the Council’s objective to maintain vehicles and equipment in a safe, secure, sustainable, and cost-effective manner. Fiscal Year 2025-26 Work Plan and Priorities • Fleet Maintenance – The Vehicle & Equipment Maintenance program tracks vehicle and equipment repair and maintenance history. Staff will continue to refine maintenance schedules and recordkeeping activities to ensure all City vehicles & equipment are included in replacement schedules. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 133 Vehicle & Equipment Maintenance Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of fleet vehicles receiving annual safety inspections:100%100%100%100%100% b.Percentage of fleet vehicles receiving annual preventative maintenance: 100%100%100%100%100% 2. a.Percentage of City vehicle fleet using alternate fuels (including hybrid vehicles): 25%20%20%20%20% Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.25 30 29 27 27 2.52 27 58 29 29 3.6 1 8 13 10Number of required smog checks performed per year: Provide safe and functional vehicles and equipment for City use. Protect natural resources through sustainable practices. Number of vehicles maintained: Number of oil changes performed per year: Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 134 Vehicle & Equipment Replacement Vehicle & Equipment Replacement Internal Service Fund Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Vehicle & Equipment Replacement Revenue 150,000 149,053 150,050 50,000 50,000 150,000 460 - Use of money & property 150,000 149,053 150,050 50,000 50,000 150,000 Expense 146,474 118,436 88,539 187,676 187,676 403,534 615 - Operating Expenses 0 0 0 0 0 0 770 - Fixed Assets 146,474 118,436 88,539 187,676 187,676 403,534 Vehicle & Equipment Replacement Total 3,526 30,617 61,511 (137,676) (137,676) (253,534) The Equipment Replacement Fund Program provides a consistent level of funding for the replacement of vehicle and equipment assets at the end of their life span. With the high level of care and maintenance staff put into the City’s vehicles, the replacement schedules reflect a longer than average life span than other agencies use. The City uses ten years for most vehicles and trucks, whereas other cities use five-seven years for general purpose vehicles. A vehicle or equipment’s life span could be shorter or longer than expected, but with a replacement fund, adjustments can be made without significantly impacting the ongoing operating budget. Key services include: • Accumulate and provide annual funding for asset replacement. • Assess vehicles and equipment for proper replacement timing. • Prepare cost effectiveness study for asset replacement program. Fiscal Year 2025-26 Notable Budget Changes Several pieces of equipment are scheduled for replacement in 2025-26. At present, the annual $150,000 per year chargeback amount is expected to maintain asset replacement for the next several years. Operating expenditure for this program is limited to replacement costs only. New assets must first be purchased through the owning department’s Operating Budget per approval by the Council. Once purchased, the assets are added to the replacement fund list, and then the cost to replace the asset is charged over the life of the asset, so that the funds are there when needed. Scheduled replacements are assessed and may be delayed on a year-by-year basis to ensure adequate funding levels are in place. Fiscal Year 2025-26 Work Plan and Priorities • Streets Equipment Replacement – Purchase replacement paint sprayer, trailer, and pressure washer in accordance with the 2025-26 replacement schedule. • Parks Replacement Equipment – Purchase replacement parks equipment in accordance with the 2025-26 replacement schedule. The full list of replacements assets scheduled for 2025-26 are identified in the following Equipment Replacement Schedule. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 135 2025-26 VEHICLE & EQUIPMENT REPLACEMENT SCHEDULE Current Yr Current Asset Replacement Replacement Type/Program Asset # Purch Vehicle/ Equipment Life Purpose Cost Vehicles PW Parks 129 2016 Chevy 3500 Dump 10 Parks 2 man crew 95,000 PW Streets 130 2016 Chevy 3500 Dump/crane 10 Streets 2 man crew 110,000 PW Streets 131 2016 Chevy 3500 Dump/crane 10 Streets 2 man crew 110,000 Special Use Vehicles Equipment PW Streets E001 1996 Paint Sprayer Graco 3500 21 Graffiti abatement 3,500 PW Streets E018 2002 Jacobsen Trailer 21 Trailer for Graco Line Lazzar 13,000 PW Streets E059 1985 Top Gun Pressure Washer 15 Pressure Washer 3,500 PW Parks E048 2010 Fertilizer Spreader 15 Fertilizer Spreader 22,207 PW Parks E054 2014 John Deere Gator 10 Gator Utility Vehicle 44,237 PW Parks E064 2016 Roadclipper Trailer 72" 10 Trailer for Toro Mower 3,371 PW Parks E080 2014 Gravely Utility Vehicle 9 Utility Vehicle 18,719 TOTAL REPLACEMENT FUNDING $ 423,534 Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 136 PAGE LEFT BLANK INTENTIONALLY Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 137 Lighting and Landscape Districts The City’s Landscape and Lighting District comprises 24 landscape and/or lighting zones, as well as two storm drain maintenance zones located throughout the City. These zones are created when a majority of property owners residing along or within the boundaries of the zones choose to establish a legal entity that authorizes the City to collect a parcel assessment and maintain the zone on their behalf. Funding for these zones is obtained through property tax assessments or benefit assessments approved by the property owners. Benefit assessment-based zones are exempt from the requirements of Proposition 218, which mandates a 2/3 majority approval, unless there is a request to increase the approved assessment rates. According to Section 5 of Proposition 218, assessments existing as of November 1996 are not subject to the measure if they were initially imposed based on a petition signed by all the parcel owners subject to the assessment at that time. Consequently, the City is not obligated to conduct an election among the property owners unless there is a proposal to raise the annual assessment beyond the limits defined in the existing agreement. Since the passage of Proposition 218, the City has ensured that annual increases are incorporated into the assessment agreements to allow for up to 5% assessment increases. As operational costs continue to rise each year, these built-in annual escalation allowances enable the City to maintain the same level of services consistently. Only two of the zones established prior to the enactment of Proposition 218 currently lack this provision for annual increases in their agreements. Fiscal Year 2025-26 Notable Budget Changes Each year there are moderate increase in assessments due to increases in electricity, water, landscaping services and contract maintenance services. There is also a pro-rated administrative fee for staffing administration and oversight, legal fees, and engineering services. The Landscape & Lighting District administrative service fee expense is, in turn, a revenue to the Parks & Landscape Maintenance program. In compliance with Regional Water Control Board permit requirements, the City creates Clean Water Assessment Zones for private developments that meet the threshold of mitigation. Currently, there are two zones of this kind for the City. Five new zones, which will provide funding for automatic license plate readers are anticipated for fiscal year 2025-26. Fiscal Year 2025-26 Work Plan and Priorities • District Zone Assessments – Staff will continue to closely monitor all Landscape & Lighting Assessment District Zones for appropriate service and funding levels and to assess whether assessment increases are needed for several of the districts with low fund balances. • Clean Water Assessment Zones – The Regional Water Control Board conditions development projects of a certain size to contain storm water infrastructure to protect water ways. These conditions require the City to ensure that inspections, maintenance, and capital expenditures are conducted into the future. To fund these expenditures, the City creates assessment zones to manage property tax assessments and expenditures. Staff oversees these storm water activities and will continue to create and maintain additional storm water assessment zones as required. Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 138 Number of Parcel Total Total Total Zone Fund Assessment Zones Parcels Assessment Assessment Property Tax Admin Fee Lighting Zones 6 233 Sarahills Lighting 64 113 7,248 - 2,918 Landscape Zones 11 241 Arroyo de Saratoga Landscape 250 74 18,518 - 13,022 15 242 Bonnet Way Landscape 41 120 4,906 - 2,150 33 243 Carnelian Glen Landscape 20 276 5,522 - 1,436 27 244 Cunningham/Glasgow Landscape 31 402 12,452 - 1,810 2 245 Fredericksburg Landscape 85 181 15,360 1,600 4,400 3 246 Greenbriar Landscape 176 140 24,591 10,000 10,506 28 247 Kerwin Ranch Landscape 16 1,047 16,744 - 1,300 12 248 Leutar Court Landscape 9 535 4,811 - 1,062 1 249 Manor Drive Landscape 29 105 3,040 6,500 1,742 9 251 McCartysville Landscape 48 524 25,157 - 2,388 22 252 Prides Crossing Landscape 863 148 127,896 - 34,617 25 253 Saratoga Legends Landscape 15 1,033 15,500 - 1,266 17 254 Sunland Park Landscape 200 145 29,054 - 11,322 10 255 Tricia Woods Landscape 9 232 2,088 - 1,062 36 256 Allendale Landscape 43 141 6,052 - 1,487 Landscape & Lighting Zones 37 257 Covina Landscape & Lighting 192 119 22,910 - 11,050 16 271 Beauchamps Landscape & Lighting 55 240 13,211 - 4,590 26 272 Bellgrove Landscape & Lighting 94 1,497 140,680 - 6,774 32 273 Gateway Landscape & Lighting 34 - 13,305 - 2,660 31 274 Horseshoe Landscape & Lighting 53 322 17,091 - 4,478 29 276 Tollgate Landscape & Lighting 61 238 14,517 - 4,926 34 278 Westbrook Landscape & Lighting 92 72 6,604 - 3,074 39 279 Brookview Landscape & Lighting 326 111 36,179 - 15,606 Landscape & Lighting Zones (ALPR) 41 280 Saratoga Woods L&L 376 51 19,109 - 3,587 42 281 Gardiner Park L&L 109 84 9,179 - 1,680 43 282 Lower Pierce L&L 46 115 5,295 - 932 44 283 Golden Triangle L&L 909 37 33,488 - 6,896 45 284 Burgundy L&L 76 81 6,129 - 1,129 46 285 Austin Bainter L&L 48 126 6,054 - 1,055 47 286 Padero 19 75 3,758 - 608 48 287 Glen Una L&L 132 116 15,181 - 2,581 40 288 Quito Oaks L&L 10 854 8,544 - 1,281 Storm Drain Zones 35 291 Hill Ave Storm Water 5 536 2,679 - 916 38 292 Paramount Court Storm Drain 7 418 2,926 - 980 35 4,543 695,779$ 18,100$ 167,291 Annual Zone Assessments FY 2025-26 Public Works Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 139 PAGE LEFT BLANK INTENTIONALLY CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 140 Community Services Program Budgets Department Overview The primary goal of the Community Services Department is to strengthen the City’s relationships with residents through City events, such as Summer Movie Nights, facilitating Community Event grants, work with our Orchard Ambassadors and the harvest season, volunteer programs, engages with our youth through the Youth Commission and Youth in Government, and builds community through outreach and engagement. Community Services Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Community Services City Events -22,270 -50,793 -22,253 -29,000 -29,000 -25,000 Community Engagement -213,328 -166,509 -198,299 -240,790 -240,540 -268,574 Community Event Grants -19,443 -37,656 -58,476 -73,900 -73,900 -91,000 Community Support Service -179,820 -165,758 -188,260 -186,100 -186,100 -186,995 Facility Rentals -233,834 -138,869 -81,229 -180,730 -147,515 -221,057 Recreation -81,059 -87,264 -52,345 -59,709 -59,709 -59,666 Community Services Total (749,755) (646,850) (600,863) (770,229) (713,233) (852,292) Community Services Serving Youth Manages the Youth Commission and annual Youth in Government program Orchard Harvest Manages the City's annaul orchard harvest program Community Engagement Strengthens relationships between the City and its residents City Events Hosts City events that bring the community together Community Event Grants Allows event organizers to seek funding in support of Community funding Community Support Services Grants provide grant support to outside agencies Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 141 Recreation Recreation Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Recreation Revenue 14,500 0 65,285 52,000 52,000 75,000 440 - Charges for services 0 0 0 0 0 0 460 - Use of money & property 14,500 0 65,285 52,000 52,000 75,000 Expense 95,559 87,264 117,630 111,709 111,955 134,666 500 - Salaries & Benefits 14,429 9,698 16,247 17,170 17,416 18,467 610 - Operating Expenses 39 7 39 0 0 0 640 - Contract Services 0 0 0 0 790 - Internal Services 81,092 77,559 101,344 94,539 94,539 116,199 Recreation Total (81,059) (87,264) (52,345) (59,709) (59,955) (59,666) In April 2019, the City Council authorized a two- year agreement with the Los Gatos-Saratoga Community Education and Recreation (LGS) to provide recreation services in the City of Saratoga. Per the agreement, LGS Recreation offers a variety of classes and activities at the Joan Pisani Community Center and Saratoga Prospect Center. Recreation services provide health, wellness, arts, and enrichment programs for all ages. The lease has been extended through June 30, 2025 and will be reviewed by Council. Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 142 PAGE LEFT BLANK INTENTIONALLY Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 143 Facility Rentals Facility Rentals Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Facility Rentals Revenue 265,422 354,618 170,711 32,000 65,215 35,000 440 - Charges for services 0 0 0 0 0 0 460 - Use of money & property 265,422 354,618 170,711 32,000 65,215 35,000 Expense 499,256 493,487 251,939 212,730 220,635 256,057 500 - Salaries & Benefits 240,368 245,133 5,103 0 4,905 0 610 - Operating Expenses 9,654 5,403 4,284 0 3,000 3,000 640 - Contract Services 5,897 7,874 0 0 0 0 790 - Internal Services 243,337 235,077 242,553 212,730 212,730 253,057 Facility Rentals Total (233,834) (138,869) (81,229) (180,730) (155,420) (221,057) In October 2023, City staff transitioned facility rentals to Los Gatos-Saratoga Community Education and Recreation (LGS) to continue the City’s tradition of providing high quality, safe, affordable, clean, and enjoyable facilities that are convenient to residents for meetings, parties, receptions, and gatherings in a safe, sustainable, and cost-effective manner. This includes rental programs for private individuals, non-profit, or for-profit-based groups to use for receptions, parties, events, meetings, memorials, workshops, or other community activities. Rental facilities include rooms of various sizes and uses in the Community Center and auxiliary buildings, the Warner Hutton House, the Saratoga Prospect Center complex, the Civic Theater, and numerous City Park facilities. The lease has been extended through June 30, 2025 and will be reviewed by Council. 2025-26 Notable Budget Changes The service delivery model will save the Facility Rental Program approximately $140,000 on an annual basis. Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 144 Facility Rentals Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.According to facility rental survey, the percentage of visitors who felt their visit to the facility was clean, comfortable, and safe: 100%100%N/A N/A N/A b.Percentage of customers which agreed facilities met or exceeded expectations: 100%100%N/A N/A N/A 2. a.Percentage of surveyed visitors which agreed the facility was clean, comfortable, and safe: 100%100%N/A N/A N/A Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.250 500 N/A N/A N/A 2.2,000 2,000 N/A N/A N/A 3.$250 $450 N/A N/A N/A * Provide safe, functional, and attractive City buildings for community use and enjoyment of the public. Provide safe, functional, and attractive City buildings for the provision of City services. The City entered into a strategic partnership with Los Gatos- to assume management and administration of City facility and park Number of facility rental applications processed: Number of fee-based and no-charge (for City meetings, events, etc.) facility rental hours for public use: Average dollars per receipt: Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 145 PAGE LEFT BLANK INTENTIONALLY Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 146 Community Engagement Community Engagement Services Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Community Engagement Services Revenue 1,607 1,694 1,202 1,000 1,250 1,500 440 - Charges for services 1,515 1,675 1,202 1,000 1,250 1,500 460 - Use of money & property 92 19 0 0 0 0 Expense 214,935 168,204 199,501 241,790 218,709 270,074 500 - Salaries & Benefits 183,431 138,448 163,730 205,030 176,324 227,818 610 - Operating Expenses 6,973 5,384 4,303 3,550 9,175 9,175 640 - Contract Services 0 0 0 0 0 0 790 - Internal Services 24,532 24,372 31,468 33,210 33,210 33,081 Community Engagement Services Total (213,328) (166,509) (198,299) (240,790) (217,459) (268,574) The Community Engagement Program aims to foster stronger relationships between the City and its residents, cultivate community and civic pride, and create a more inclusive and welcoming environment for all segments of the community. This program encompasses youth and school engagement efforts, the inclusion of individuals with disabilities, and initiatives to engage older adults, as well as support for Age- Friendly Community efforts. Key services include: • Foster a sense of community and civic pride. • Increase partnerships and opportunities for collaboration with local organizations that serve Saratoga residents. • Engage all segments of the Saratoga community, including those at the greatest risk for isolation. 2025-26 Notable Budget Changes Division revenues are limited and consist primarily of donations and nominal participation fees for programs such as Youth in Government. Expenditures, other than staff costs, are for materials and supplies to support these programs. No notable budget changes this fiscal year. 2025-26 Work Plan and Priorities • School Partnerships – Continue and strengthen partnerships with Saratoga-area schools. • Community Partners – Increase connections with various community organizations that serve Saratoga residents to create greater awareness of available services in the City and leverage resources where appropriate. • Farmers’ Market – Continue to support the Mayor during local office hours at the West Valley Farmers’ Market. Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 147 Community Engagement Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of time Community Services staff member attends Youth Commission meetings: 100%100%100%100%100% b. Annually provide a teen internship program in local government: Yes Yes Yes Yes Yes 2. a.Provide community activities to build stronger community relationships: Yes Yes Yes Yes Yes 3.Develop and broaden services for underserved populations. a.Develop and provide services and events for individuals with Special Needs: Yes No Yes Yes Yes b.Provide opportunities annually for individuals with Special Needs to engage with the City: Yes Yes Yes Yes Yes c.Strengthen relationships annually with community-based organizations that serve target populations, such as older adults and at-risk groups: Yes Yes Yes Yes Yes 4.Enhance culture and community through Public Art: a.Provide opportunities for community engagement in public art: Yes Yes Yes Yes Yes Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.600 800 800 1260 1260 2.21 25 25 125 125 3.0 0 0 1 0 4.8 15 15 15 15 Partner with the community to improve the quality of life for teens. Promote healthy lifestyles and personal growth through organized recreation activities. Number of teen-age volunteer service hours offered: Number of teen-age volunteers: Number of utility boxes painted through Paint the City: Number of Community Event Grant Programs funded: Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 148 City Funded Events City Events Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed City Events Expense 22,270 50,793 22,253 29,000 24,500 25,000 500 - Salaries & Benefits 0 0 73 0 0 0 610 - Operating Expenses 22,270 50,793 22,180 29,000 24,500 25,000 City Events Total (22,270) (50,793) (22,253) (29,000) (24,500) (25,000) The City of Saratoga recognizes the value of community events and their role in bringing residents together, fostering community, and establishing a sense of identity for the City. The City Funded Events program covers a variety of City-hosted events. These include groundbreakings and grand openings, as well as annual events, such as the Tree Lighting Ceremony, Arbor Day, and the summer outdoor movie series, among others. Key services include: • Foster a sense of community and civic pride. • Increase partnerships and opportunities for collaboration with local organizations that serve Saratoga residents. 2025-26: No notable budget changes are expected this fiscal year. 2025-26 Work Plan and Priorities • Community Partners – The City’s engagement efforts also include strengthening partnerships with community organizations through the sharing of resources and collaboration on various community events. Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 149 City Sponsored Events Schedule 2022 Actuals 2023 Actuals 2024 Actual 2025 Budget 2025 Estimated 2026 Proposed City Celebrations State of the City Event 4,565 6,769 5,478 6,000 6,000 6,000 Village Celebrations Village Tree Lighting Event 2,058 475 - 2,000 2,000 2,000 Celebration of Light 2,119 547 93 2,500 - - Community Events Outdoor Movie Nights 8,116 10,482 8,001 7,500 8,250 8,500 Arbor Day Celebration 574 535 - 500 500 500 Public Safety Events - 5,283 - 5,000 5,000 5,000 Color Dash 4,188 382 2,885 3,500 - - Community Harvest - 1,454 829 2,000 2,000 2,000 Total Annual Sponsored Events 22,270 50,793 22,180 29,000 23,750 24,000 Total Community Event Funding 22,270 50,793 22,180 29,000 23,750 24,000 Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 150 Community Events Grants Community Event Grants Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Community Event Grants Expense 19,443 37,656 58,476 73,900 70,900 91,000 610 - Operating Expenses 19,443 37,656 58,476 73,900 70,900 91,000 Community Event Grants Total (19,443) (37,656) (58,476) (73,900) (70,900) (91,000) Community events help bring people together, foster a sense of pride, and can define the identity of a city. In recognition of the value of events and the City’s limited ability to host events, the City Council established a Community Event Grant Program to allow event organizers to seek funding to support community events in Saratoga. In recent years, the event grant program has evolved to include secured and competitive funding allocations. The City Council has identified several cornerstone events that now receive secured grant funding. The organizers of these events do not have to go through a formal application process to receive grant funding. Those seeking competitive grant funding may apply during the annual application process. All event grants, including secured and unsecured grants, must meet the following criteria: • Must be a volunteer-led event held in Saratoga • Event is free and open to everyone • Event concentrates on Saratoga’s character, diversity, or history • Event celebrates the community as a whole and is not limited to a small group, such as reunions Additionally, allocations of unsecured grant funds are now capped at $2,000, secured grant recipients may not participate in the annual application process, and event organizers must obtain a minimum $1 million in liability coverage for the event. 2025-26 Notable Budget Changes The event grants awarded by the City Council help community groups pay for expenses associated with coordinating events, including City-related fees (i.e., permits, park attendants, renting parks or facilities), security, entertainment, signage, event materials and food. A total of $13,000 has been allocated for 2025-26 competitive funding community event grants. Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 151 2022 2023 2024 2025 2025 2026 Actuals Actuals Actuals Budget Estimated Proposed Chamber of Commerce Events Misc Chamber Festivals 10,000 15,000 15,000 15,000 25,000 25,000 Community Celebrations Community Events - General - - - 7,400 8,000 8,000 Month of the Child Celebration 2,000 - Blossom Festival 5,083 5,424 5,184 5,000 5,000 5,000 Saratoga My Home - - - 1,400 Community Mitzvah Day - - - 2,000 Saratoga Community Band 795 634 968 1,250 1,250 1,000 Sister City Celebration - 2,000 2,170 - Cultural Celebrations Hakone Matsuri - 6,900 7,000 5,000 5,000 5,200 Serbian Food Festival - - - 2,000 Dragon Boat Festival - - - 2,000 Holiday Celebrations MLK Jr. Day Celebration - 850 850 2,500 2,500 5,000 Memorial Day Event 339 794 851 1,000 1,000 1,000 Fourth of July Event 2,500 2,500 2,500 4,500 4,500 4,500 Healthy City Events SASCC Health Fair - - - 5,000 5,000 5,000 Saratoga Village Events Saratoga Village Dev Council Events 725 1,554 1,953 2,000 2,000 2,500 Classic Car Show - - 22,000 25,250 25,250 30,000 Total Community Event Grants 19,443 37,656 58,476 73,900 91,900 92,200 Total Community Event Funding 19,443 37,656 58,476 73,900 91,900 92,200 COMMUNITY EVENT GRANTS SCHEDULE Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 152 Community Support Services Community Support Service Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Community Support Service Expense 179,820 165,758 188,260 186,100 185,000 186,995 500 - Salaries & Benefits 0 0 0 2,000 0 0 610 - Operating Expenses 179,820 165,758 188,260 184,100 185,000 186,995 Community Support Service Total (179,820) (165,758) (188,260) (186,100) (185,000) (186,995) The Community Grants program consolidates the City’s grant support to outside agencies into one program, thereby retaining historical funding information. The City allocates grant funding to local organizations to support the services these groups provide to the Saratoga community, including: the Saratoga Chamber of Commerce for business support; West Valley Community Services for housing and food services; Catholic Charities Ombudsmen to support the poor and vulnerable; and the Saratoga Area Senior Coordinating Council (SASCC) for operational support of the Senior Center. The City also contributes in-kind services, such as building space and utilities to the Saratoga Area Senior program as the Senior Center is located in the City’s Community Center facilities. This non-profit organization provides a variety of health services – such as blood pressure checks, flu shots, vision screening, hearing tests, and senior nutrition programs, as well as social and support services – such as tax return assistance and Fifty-Five Alive driving program. Recreational games and classes, including ping-pong, card games, and karaoke are popular, and the curriculum continues to expand to other non-cost-recovery services the senior population finds valuable. Grant amounts listed reflect City funding provided to service groups and non-profit organizations. Non-monetary support, such as staff assistance, rental and permit waivers, law enforcement services, and street sweeping provided to various community groups is considered part of normal City operations and therefore not accounted for in the budget. Key services include: • Build community and sense of civic pride. • Provide critical services to vulnerable Saratoga populations. • Create a vibrant and thriving business community. • Prevent and prepare for wildfire risk. • Encourage volunteerism. 2025-26 Notable Budget Changes No notable budget changes this fiscal year. Community Services Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 153 2022 2023 2024 2025 2025 2026 Actuals Acutals Actuals Budget Estimated Proposed Community Services Support SASCC Senior Services 44,892 46,015 23,008 46,100 48,000 49,495 Adult Care Support 24,282 24,891 24,891 25,000 25,000 25,000 Chamber of Commerce 12,487 4,162 25,979 18,000 20,500 21,000 West Valley Community Services 28,000 28,000 - - 28,000 28,000 United Way 211 Funding 2,000 2,000 - 2,000 2,000 2,000 Catholic Charities Ombudsmen Funding 5,000 5,000 5,000 5,000 5,000 5,000 SCC FireSafe Council - Fuel Reduction Serv 50,000 50,000 50,000 50,000 50,000 50,000 Neighborhood Watch Grant 11,870 5,232 6,037 7,500 6,500 6,500 Total Community Support Services Grants 179,820 165,757 134,914 153,600 185,000 186,995 COMMUNITY SUPPORT SERVICES GRANTS SCHEDULE Community Services CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 154 PAGE LEFT BLANK INTENTIONALLY Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 155 Department Overview The Public Safety Department is comprised of two safety-oriented programs: the Public Safety Services Program, which provides day-to-day law enforcement services; and the Emergency Preparedness Program which prepares the City for infrequent large-scale disaster and emergency occurrences. The assorted Public Safety functions are delivered through several external agencies and joint efforts. The City of Saratoga contracts for law enforcement services with the Santa Clara County Sheriff’s Office. Services include traffic, patrol, and general law enforcement, as well as ancillary programs to educate the community on crime prevention, traffic safety, and emergency response. Animal control services, including licensing, animal control, and field and shelter services, are provided on contract by the City of San Jose Animal Care and Services Division (SJACS). Fire protection services are provided to Saratoga residents by Santa Clara County Fire District (SCCFD) as a separate tax-funded district. As part of the SCCFD’s emergency oversight function, they also provide the cities with staff support for coordinating city-based emergency response services. Saratoga is a member of the Silicon Valley Regional Interoperability Authority (SVRIA). This local agency coalition task force has undertaken the mission to design and implement a comprehensive public safety radio communications system to improve countywide communication. In past years, the funding formula billed the cities directly. The Emergency Preparedness Program supports the preparation of both City and community emergency response efforts in the event of a significant earthquake, fire, or other natural or man-made disasters, and coordinates with various emergency services agencies and utilities to prepare residents for self-sufficiency and proper response to emergency events. The City plans and trains for various situations in the effort to employ best practices; determine outstanding needs; create awareness; and educate City staff about their emergency response duties. The Emergency Preparedness Program receives additional support from SCC Fire and SCC Office of Emergency Services unit through grants, staff oversight assistance, and Community Emergency Response Team (CERT) training courses. The CERT programs train the Saratoga community in Emergency Preparedness through the planning and supervision of drills and exercises. Public Safety Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Public Safety Emergency Preparedness -128,638 -118,892 -143,788 -263,884 -256,734 -190,931 Public Safety -6,333,993 -7,185,354 -7,415,913 -8,325,585 -7,971,955 -8,837,005 Public Safety Total (6,462,630) (7,304,247) (7,559,702) (8,589,469) (8,228,689) (9,027,936) Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 156 Public Safety Public Safety Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Public Safety Revenue 734,418 420,429 648,292 352,500 706,130 374,500 420 - Intergovernmental 333,912 339,166 337,082 295,000 285,000 317,500 440 - Charges for services 20,116 21,275 16,562 13,000 14,085 13,000 450 - Fines & penalties 92,536 59,988 49,387 44,500 44,000 44,000 460 - Use of money & property 287,854 0 245,261 0 363,045 0 Expense 7,068,410 7,605,783 8,064,206 8,678,085 8,679,085 9,211,505 610 - Operating Expenses 5,108 4,035 3,299 4,400 5,400 5,400 648 - Public Safety Contract Services 7,063,303 7,601,748 8,060,907 8,673,685 8,673,685 9,206,105 Public Safety Total (6,333,993) (7,185,354) (7,415,913) (8,325,585) (7,972,955) (8,837,005) Since the City’s incorporation in 1956, the City has contracted public safety services with the Santa Clara County Sheriff’s Office rather than employing in-house police services. The City has found this option very satisfactory as the Sheriff provides a full range of services and competencies associated with a large police department without the full large City expense. This is evidenced by the City being lauded in numerous “safest cities” lists every year. • Law enforcement services include traffic management, patrol and code enforcement, and response to calls for service and traffic incidents. • Public education and participation in community, school, and neighborhood groups. • Crime prevention, deputy response, investigation, resolution of criminal cases, and subsequent participation in the prosecution of offenders. • Records management functions include processing deputy reports and citations, criminal and traffic warrants, and fingerprinting services. • School resource officer • Coordination of Emergency Response activities with SCC Fire District and City staff. 2025-26 Notable Budget Changes The 2025-26 Sheriff Office services contract increased by $525,200 from the prior year due to personnel cost and PERS increases. General Fund revenue is the primary funding source for Public Safety, but the City also receives external funding support from public safety related operational activities and state funding. The law enforcement contract calls for annual increases based on the percentage increase in total compensation provided to patrol deputies or an average January to December consumer price index for urban wage earners (CPI/W) plus 2%, whichever is less. The increase over the life of the agreement will not exceed the annual cumulative average of CPI/W plus 2%. Additional budget appropriations in the Public Safety Program support animal-related services through a contract with the City of San Jose. A new contract was executed in June 2024. The initial terms of the new agreement will go through June 30, 2027, with the option to extend in two (2) additional three-year increments through Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 157 June 30, 2033. Under the new contract, the City of Saratoga will pay $186,100 for the period of July 1, 2025 – June 30, 2026. 2025-26 Work Plan and Priorities • Crime Prevention/Neighborhood Watch - The Sheriff’s burglary suppression efforts include identifying crime hot spots and engaging in saturation patrols in high frequency areas.  The crime analyst’s crime mapping and predictive policing techniques, and the detective’s investigations and follow- up efforts have resulted in identifying and arresting suspects committing burglaries and preventing further burglaries.  Community outreach and relationship building, along with public safety presentations to educate the community on safety awareness and crime prevention will also continue.  The Sheriff’s Office supports the facilitation of Neighborhood Watch groups, with the goal of encouraging citizens to report any suspicious activity immediately, ultimately improving the quality of life for all residents. • Patrol Division – The Sheriff’s Office West Valley Patrol Division added a bicycle unit to patrol operations.  Deputies assigned to bicycle patrol focus their enforcement efforts primarily in the business districts. Goals include maintaining a visible presence in busy shopping areas as well as building a stronger working relationship with City business partners. • School Resource Officer – School Resource Officers are active at the schools, acting as mentors to students, and conducting numerous presentations and drills with students, faculty and parents on topics including active shooter protocol, stranger danger, internet and digital media safety, bullying and suicide awareness, among others. • Community Academies – The annual teen academy provides high school students with a new perspective of law enforcement, raising their awareness of issues that may impact them currently and in their future. • Automatic License Plate Reader (APLRs) In 2022, the City implemented a one-year Automated License Plate Reader (ALPR) pilot program. In the fall of 2023, the City decided to implement this program on a permanent basis. The ALPR system captures images of vehicle license plates, then compares license plate numbers against law enforcement databases which track vehicles of interest to law enforcement. Examples may include a stolen vehicle, an Amber or Silver Alert, etc. If a plate matches a listing on a database, the system alerts the Sheriff’s Office so a deputy can be deployed to investigate. Funding for the ALPR is included in the 2025-26 operating budget. Several lighting and landscape districts have also chosen to take part in this safety program beginning in fiscal year 2023 with the cost of those installations paid by the requested Lighting and Landscaping funds. Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 158 Public SafetyPerformance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Priority I calls (serious emergency and public hazard):42 59 34 21 34 b.Priority II calls ( immediate response, but non-emergency):2,468 2,865 2,867 2,784 2,558 c.Priority III calls (non-emergency):1,480 1,482 1,321 1,295 1,486 2. a.Average response to Priority I calls for service:4.91 min 5.26 min 7.66 min 4.45 min 5.53 mins b.Average response to Priority II calls for service:7.22 min 8.32 min 6.89 min 6.58 mins 7.15 mins c.Average response to Priority III calls for service:11.46 min 13.11 min 7.54 min 6.30 mins 9.89 mins 3. a.Prepare and provide city staff with weekly reports of crime activity in the city: 100%100%100%100%100% b.Provide community with crime prevention tips and weekly reports on city website: 100%100%100%100%100% c. Educate residents through participation in community events and Neighborhood Watch meetings: 28 39 33 31 30 4. a.Processing of criminal reports:3 days 3 days 3 days 3 days 3 days b.Processing of collision reports for involved parties:7 days 7 days 7 days 7 days 7 days c.Processing of collision reports for insurance companies:7 days 7 days 7 days 7 days 7 days 5. a. Number of Emergency Operation Plan trainings, drills, or activities to enhance Emergency Preparedness skills: 62 72 17 27 37 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.12,115 11,615 11,904 11,128 11,673 2.680 710 626 570 646 3.152 187 175 148 158 4.832 897 801 718 804 For effective protection of life and property, ensure a safe and secure community through diligent enforcement of regulations, codes and law. Provide Public Safety service response in a timely, professional manner. Meet or exceed service goals. Promote Crime Prevention awareness and educate community in the protection of their neighborhood and property. Total number of collision reports taken: Total number of cases assigned to Detectives: Ensure Sheriff's Office responsiveness to community needs by documenting and providing response turnaround time to responsible parties. Develop Sheriff's Office Emergency Preparedness to provide public safety leadership in the event of emergency situations. Radio calls for service received in the city: Total number of crime reports taken: Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 159 PAGE LEFT BLANK INTENTIONALLY Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 160 Emergency Preparedness Emergency Preparedness Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Emergency Preparedness Revenue 0 0 7,150 0 420 - Intergovernmental 0 0 6,500 0 460 - Use of money & property 0 0 650 0 Expense 128,638 118,892 143,788 263,884 275,374 190,931 500 - Salaries & Benefits 72,139 48,491 81,238 85,700 87,029 92,360 610 - Operating Expenses 10,943 10,852 15,421 17,200 26,361 16,700 640 - Contract Services 34,965 29,764 0 30,000 30,000 30,000 648 - Public Safety Contract Services 0 19,250 34,427 119,000 120,000 40,000 790 - Internal Services 10,591 10,536 12,703 11,984 11,984 11,871 Emergency Preparedness Total (128,638) (118,892) (143,788) (263,884) (268,224) (190,931) The City of Saratoga is responsible for coordinating emergency response and recovery efforts in the event of a significant earthquake, fire, or other natural or man-made disaster. To prepare for this responsibility, City staff work in conjunction with the Sheriff’s Office, Santa Clara County Fire Department (SCCFD), and the Santa Clara Office of Emergency Management (OEM) to plan and prepare for emergency situations. The City of Saratoga has a robust Community Emergency Response Team (CERT) and is fortunate to have a dedicated crew of Ham radio operators organized under the Saratoga Amateur Radio Association (SARA) that can step in to assist with emergency communications. These two organizations meet regularly to hone skills, orient members, and conduct exercises so that they can assist in disaster response efforts if needed. The members of these organizations also learn about preparing themselves and their households for emergencies. Key services include: • Prepare and update Emergency Operations Plan Annexes. • Train City staff and community members on emergency preparedness. • Maintain EOC, equipment, and technology to ensure Saratoga is in compliance with Federal, State, and County standards and requirements. • Plan and supervise emergency drills and exercises. • Maintain an emergency shed at Argonaut Elementary School to serve as a Division Field Incident Command Post and Rally Point location. • Oversee Emergency Management grants as available. • Oversee Community Emergency Response Team. • Develop and implement disaster event preparation practices for proper cost recovery documentation purposes. 2025-26 Notable Budget Changes Funding for an emergency preparedness consultant has been included in the budget to update the Emergency Operations Plan required by the State and other emergency preparedness planning documents. 2025-26 Work Plan and Priorities • Fuel Reduction – Funding for fuel reduction is included again in the budget. Evacuation Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 161 routes in the City’s Wildland Urban Interface area, which is the part of the City considered at the greatest risk for wildfire, will be the priority for fuel reduction efforts. Clearing dry and dead weeds, brush, and low hanging limbs along these critical roads helps prevent spread of fire and can help keep flames further away from vehicles using evacuation routes during a disaster. • Emergency Preparedness Consultant – The Emergency Operations Plan is comprised of general procedures for disaster and emergency response, and individual topic specific plan annexes. This Plan was updated in 2018-19. Hazard specific and function specific annexes to the plan are under development, such as a Wildfire Annex and Crisis Communication Plan. Funding is also included in the budget to allow for the development of other emergency planning documents. Public Safety Program Budgets CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 162 Emergency Operations Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.CERT Training Courses available to community members:No Yes Yes Yes Yes b. Coordinate community outreach to heighten awareness of emergency preparedness programs and needs: Yes Yes Yes Yes Yes c.Prepare emergency preparedness and public education materials:Yes Yes Yes Yes Yes d.Annually coordinate training of City Staff in personal preparedness and EOC functions: Yes Yes Yes Yes Yes 2. a. EOC radios, emergency telephones, and computers available and quarterly tested to ensure emergency communication needs: Yes Yes Yes Yes Yes b.Bi-annually prepare, test, and revise emergency response and recovery policies, plans, and procedures: Yes Yes Yes Yes Yes 3. a.Participates in and/or maintains communication with local, state, or national emergency preparedness organizations: Yes Yes Yes Yes Yes b. Remain current on technology and emergency management trends:Yes Yes Yes Yes Yes 4. a.Inter-agency technology and emergency equipment tested and maintained monthly: Yes Yes Yes Yes Yes b.Staff attends annual emergency management meetings and training programs: Yes Yes Yes Yes Yes Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.1 1 1 1 1 2.1 1 2 2 2 3.1 5 4 4 4 Develop emergency readiness of City staff and community members through disaster training and exercise programs. Maintain the City's Emergency Operations Center in a state of readiness. Maintain effective liaisons with local, state, and national emergency management organizations. Ensure inter-agency/multi-agency coordination and communication for disaster planning and responses. Number of annual community disaster training exercises: Number of annual disaster training exercises for City staff: Number of CERT training courses offered per year: CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 163 Public Safety Program Budgets PAGE LEFT BLANK INTENTIONALLY CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 164 Non-Departmental Department Budget Non-Departmental The General Administration program represents revenues and expenditures that are generated as a result of being a governmental entity rather than from departmental operations. Tax Revenues, Intergovernmental Revenues, Interest, and Rental Income are the primary nonservice-based revenue sources for the City, and account for approximately 80% of the City’s Total General Fund Operating Revenues each year. General Administration expenditures are minimal in comparison, consisting primarily of the UAL pension payoff, and transfers to Capital Programs from the general fund. Non-Departmental Department Programs Net Revenue/ (Expenditure) General Fund Programs Program 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Non-Departmental 17,127,156 17,871,899 20,375,139 19,401,350 19,875,594 19,779,340 Federal Grants -45,186 0 0 0 0 0 Grants 0 0 8,500 0 8,500 8,500 Legal Services -257,490 -399,672 -641,512 -587,115 -587,115 -683,000 Non-Departmental 17,429,832 18,271,570 21,008,150 19,988,465 20,428,714 20,453,840 Facility Rentals -233,834 -138,869 -81,229 -180,730 -147,515 -221,057 Recreation -81,059 -87,264 -52,345 -59,709 -59,709 -59,666 Non-Departmental Total 17,127,156 17,871,899 20,375,139 19,401,350 19,875,594 19,779,340 Non-Departmental Program Budgets CITY OFSARATOGA, CALIFORNIA 2025-26 Adopted Budget 165 PAGE LEFT BLANK INTENTIONALLY Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 166 Legal Services Legal Services Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Legal Services 257,490 399,672 641,512 587,115 592,342 683,000 Revenue 0 0 0 0 0 0 440 - Charges for services 0 0 0 0 0 0 Expense 257,490 399,672 641,512 587,115 592,342 683,000 610 - Operating Expenses 0 0 0 0 0 0 650 - Professional Services 257,490 399,672 641,512 587,115 592,342 683,000 Legal Services Total (257,490) (399,672) (641,512) (587,115) (592,342) (683,000) The City of Saratoga contracts with the firm Shute, Mihaly & Weinberger LLP (Shute Mihaly) to provide City Attorney services, advice, and representation on legal matters to ensure City actions and activities are legally sound. Shute Mihaly in turn, utilizes Wittwer & Parkins, LLP for land use/development attorney services on an as-needed basis. The City Attorney also oversees the City’s use of Mouser Law Firm legal services for employment law, and occasionally other legal firms for specialized services. The City Attorney manages the City’s pursuit or defense in litigation matters as directed by the City Council, supervises litigation costs, and provides the City with a monthly status report of all outstanding litigation, case updates, and potential lawsuits. In addition, the City Attorney: reviews all proposed ordinances and resolutions requiring City Council action to ensure proper format and content; reviews staff reports for reasoned and sound commentary; identifies policy options and alternatives; and provides direction, recommendations, and appropriate summaries consistent with Council requirements. Additional city attorney services include review and recommendations on legislative issues, recommendations on environmental review requirements and preparation of environmental review documents, review of bid requests, vendor contract documents, purchase and sale agreements, code enforcement matters, and the preparation and/or review of contractual agreements with other agencies. Employment Law services include policy development, human resources oversight, and negotiation services as needed. The City Attorney attends the bi- monthly City Council meetings, and special City Council sessions as needed. Overall, Legal Services provides support to the City Council’s Strategic Goals for a transparent and ethical City government, in conformance with and abiding by the rule of law. Key services include: • Provides sound legal advice for the City and represents the City regarding litigation matters. • Attends City Council meetings to provide legal guidance. • Drafts and/or reviews staff reports, resolutions, and proposed ordinances. • Prepares and/or reviews contractual agreements with other agencies. • Reviews and make recommendations on legislative issues. • Reviews bid requests, vendor contract documents, and purchase and sale agreements. • Provides legal advice on code enforcement matters. Non-Departmental Program Budgets CITY OFSARATOGA, CALIFORNIA 2025-26 Adopted Budget 167 • Provides legal advice on employment law matters. • Makes recommendations on environmental review requirements and preparation of environmental review documents. 2025-26 Notable Budget Changes The legal program does not typically include budgeted revenues; however, services reimbursements may occur during the course of the year if the City provides legal representation, such as in development lawsuits. 2025-26 Work Plan Priorities • Risk Management – Work with staff to improve and implement Best Practices to mitigate risk in City operations and provide guidance in the administration of claims as needed. • City Codes and Ordinances – Research and prepare ordinances as necessary to implement City Council priorities. Work with staff on the annual code update to reflect changes in State law and lessons learned in ordinance implementation. • Community Development – Work with Community Development Department staff on reviews of complex projects. • General Plan & Housing Element Implementation – Provide a legal review of General Plan Update and implementation efforts to ensure language and changes are compliant with legal requirements. • Public Works – Work with Public Works department staff on environmental review, regulatory compliance, contracts, and real property matters for major public works projects such as Quito Road Bridges and the Saratoga-to-the-Sea Trail. • Code Enforcement – Work with Code Enforcement staff to develop systems and procedures to minimize the need for City Attorney involvement in day-to-day code enforcement proceedings. Advise the City in connection with complex code enforcement matters and continue to manage prosecution of citations issued by the Sheriff’s office for violations of the City Code. Legal Performance Objectives and Measures 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1. a.Number of staff reports and resolutions drafted or reviewed:38 66 50 51 60 b.Number of ordinances drafted or reviewed:13 6 5 7 8 2. a.Number of agreements/contracts using standard forms reviewed:161 116 140 130 130 b.Number of agreements/contracts using non-standard forms prepared or reviewed: 11 8 12 6 8 Activity and Workload Highlights 2021/22 2022/23 2023/24 2024/25 2025/26 Actuals Actuals Actuals Actuals Budget 1.27 24 23 24 24 2.4 4 10 3 5 Review staff reports, resolutions, and proposed ordinances to ensure City is in compliance with legal requirements and applicable laws, and performing in a transparent and ethical manner. Ensure legal documents protect the City's interests and are in compliance with Federal, State, and City requirements. Number of City Council meetings or study sessions attended: Number of multi-agency agreements prepared: Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 168 Disaster Recovery Federal Grants Program Net Revenue/ (Expenditure) Category 2021-22 Actuals 2022-23 Actuals 2023-24 Actuals 2024-25 Budget 2024-25 Est. Act. 2025-26 Proposed Federal Grants Revenue -776 0 0 0 0 420 - Intergovernmental -776 0 0 0 0 Expense 44,410 0 0 0 0 0 500 - Salaries & Benefits 17,775 0 0 0 0 0 610 - Operating Expenses 4,234 0 0 0 0 640 - Contract Services 22,401 0 0 0 0 Federal Grants Total 43,634 0 0 0 0 0 The City of Saratoga’s operating budget plans for normal operations, using conservative estimates for revenues, and expenditure budgets that allow for minor contingencies. When unusual weather patterns or natural disasters occur that cause resources to be expended at unexpected levels in response, and those expenditures fall outside of normal operating budget resources, staff will bring the related expenditures to the Council both for their awareness, and to approve budget funding adjustment requests to address the unexpected needs. These unplanned expenditures are accounted for in the Disaster Recovery program. Under extraordinary circumstances, Federal, State, and local governments may declare a State of Emergency. When these emergency declarations occur, Federal and State funding is made available to assist impacted agencies with the unexpected expenditures. The City may then submit claims to request reimbursement, per Federal Emergency Management Agency (FEMA) or California’s Office of Emergency Services (CalOES) guidelines. For transparency, both the emergency claim expenditures and emergency operations reimbursement claim revenues will be accounted for in this program. In past years, this budget accounted for emergency relief to public agencies for the impacts of the COVID-19 Pandemic proclaimed disaster. 2025-26 Notable Budget Changes None. City staff are working with FEMA and CalOES to ascertain eligibility for reimbursement from the 2023 Storm Emergencies. Once eligibility and reimbursement are confirmed, City staff will request an amendment to the 2025-26 budget. Non-Departmental Program Budgets CITY OFSARATOGA, CALIFORNIA 2025-26 Adopted Budget 169 PAGE LEFT BLANK INTENTIONALLY Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 170 General Obligation Bond Debt Service Fund 2001 Saratoga Community Library General Obligation Bond More than two-thirds of the electors of the City voting at a general municipal election held on March 7, 2000, approved the issuance of $15 million of General Obligation Bonds to improve, renovate, and expand the Saratoga Community Library. The Series 2001 General Obligation Bonds were subsequently issued by the City of Saratoga pursuant to Chapter 4 of Division 4 of Title 4 of the California Government Code, and a resolution of the Saratoga City Council authorizing the issuance of the Bonds. Bonds constitute general obligations of the City, and the vote to approve the bond authorized the establishment of a property tax levy to fund debt service payments. The property tax levy is added to Saratoga property owner’s annual property tax bill, collected by the County Assessor, and subsequently remitted to the City. The 2001 GO Bond’s principal and interest on the bonds was established to be payable on February 1 and August 1 of each year, commencing February 1, 2002, and ending August 1, 2031. With interest rates falling to historic lows in the fall of 2010, Council requested the 2001 GO Bonds be refunded. 2011 Saratoga Community Library General Obligation Bond The refunding was completed with the refunding effective date held until the ten-year anniversary date, August 1, 2011 to eliminate the premium penalty. As with the 2001 GO Bonds, principal and interest for the new 2011 GO Bonds are payable on February 1 and August 1 of each year, commencing February 1, 2012, and ending August 1, 2031. The refund will save Saratoga taxpayers approximately $2.7 million over twenty years. In 2011, as part of the refunding process, the City obtained an updated credit rating. The City of Saratoga was awarded AAA issuer credit rating by Standard and Poor’s, one of the nation’s top-ranked independent credit rating agencies. Saratoga’s solid tax base and low debt burden, high property values and personal income levels, and the expectation of continued strong financial operations by the City supported this high rating and resulted in lower debt costs and savings to the Saratoga community. Subsequent reviews have continued to award the City an AAA rating. 2025-26 Notable Budget Changes None. The Bank of New York Mellon acts as Saratoga’s fiscal agent to administer the debt servicing of the bonds. To ensure compliance with the IRS Code and US Treasury Obligations, NBS Government Services provides services related to arbitrage rebate calculations and consulting services. NBS will also assist in compliance with the annual disclosure regulations of the SEC continuing disclosure Rule 15c.2-12. Non-Departmental Program Budgets CITY OFSARATOGA, CALIFORNIA 2025-26 Adopted Budget 171 August August February Fiscal Year Bond Fiscal Interest Annual Interest Interest Annual Debt Principal Year Rate Principal Payment Payment Interest Service Balance @ YE - - $11,995,000 2011/12 2.00% - - 228,211 228,211 228,211 11,995,000 2012/13 2.00%455,000 208,518 203,968 412,485 867,485 11,540,000 2013/14 2.00%485,000 203,968 199,118 403,085 888,085 11,055,000 2014/15 2.00%495,000 199,118 194,168 393,285 888,285 10,560,000 2015/16 2.00%500,000 194,168 189,168 383,335 883,335 10,060,000 2016/17 3.00%475,000 189,168 182,043 371,210 846,210 9,585,000 2017/18 3.00%485,000 182,043 174,768 356,810 841,810 9,100,000 2018/19 4.00%500,000 174,768 164,768 339,535 839,535 8,600,000 2019/20 4.00%525,000 164,768 154,268 319,035 844,035 8,075,000 2020/21 4.00%545,000 154,268 143,368 297,635 842,635 7,530,000 2021/22 3.00%565,000 143,368 134,893 278,260 843,260 6,965,000 2022/23 4.00%580,000 134,893 123,293 258,185 838,185 6,385,000 2023/24 4.00%610,000 123,293 111,093 234,385 844,385 5,775,000 2024/25 4.00%630,000 111,093 98,493 209,585 839,585 5,145,000 2025/26 3.50%655,000 98,493 87,030 185,523 840,523 4,490,000 2026/27 3.50%685,000 87,030 75,043 162,073 847,073 3,805,000 2027/28 3.70%705,000 75,043 62,000 137,043 842,043 3,100,000 2028/29 4.00%730,000 62,000 47,400 109,400 839,400 2,370,000 2029/30 4.00%760,000 47,400 32,200 79,600 839,600 1,610,000 2030/31 4.00%790,000 32,200 16,400 48,600 838,600 820,000 2031/32 4.00%820,000 16,400 - 16,400 836,400 - TOTALS 11,995,000 2,601,993 2,621,686 5,223,678 17,218,678 Total Bond Principal $11,995,000 Total Bond Interest 5,223,678 Total Cost of Bond $17,218,678 City of Saratoga 2011 Series General Obligation Bonds Debt Schedule Bond Refunding Date - August 1, 2011 Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 172 Arrowhead CFD Bond Debt Service Arrowhead Cooperative Company, Inc. (ACCI) is a private water company that was formed in 1951 to serve six homes in a neighborhood located between Rolling Hills Road and Blue Hills Lane along Prospect Road. Over the years, the Arrowhead Water Cooperative grew to serve a total of 39 homes, but the infrastructure became outdated, making the water supply tenuous and fire safety an ominous concern. The homeowners sought to transition over to San Jose Water Company to ensure a reliable water supply, however before San Jose Water Company would accept the 39 homes into their system, they required ACCI to improve the existing water infrastructure. As the cost for the improvements grew to nearly $4 million, the neighborhood petitioned the City of Saratoga to help them issue a bond to finance the improvements. The issuance of such a bond required ACCI property owners to form a Community Facility District (CFD) upon which a special assessment would be levied to collect the necessary funds to pay the Bond’s debt service payments. 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. Concurrently, City staff began working with a bond financing team to issue the CFD’s Special Tax Assessment Bond, but construction delays put the bond issuance on hold. When construction was rescheduled for late 2018, the bond issuance process began again, and was finally issued on December 10, 2018, as a private sale bond. Fifteen of the 39 ACCI property owners chose to pre-pay their share of the construction costs; the remaining 24 property owners chose to participate in the bond issuance. The Bond Issuance totaled $2,498,848, which was combined with the $1,500,000 contributed to the funding account by the pre-paid property owners for the total funded cost of the project. As of 7/1/24, a total of 18 property owners participated in the bond issuance. Bond terms are 30 years at 6.05% interest. This interest rate was slightly higher than a negotiated bond sale was expected to be but had the advantage of locking in the interest rate during a volatile rate timeframe, and the total bond amount was reduced due to a lower reserve requirement under the private sale. The bond’s debt service payment schedule is at the end of this section. These 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. This Debt Service program reflects the accounting for the Bond’s Debt Service functions, including tax assessment receipts, the bond’s debt interest and principal payments, earned interest, and bond administration service fees. The full amount of the project funds from both the bond sale and the contributed funds are accounted for in the Arrowhead CFD Project Agency Fund. Non-Departmental Program Budgets CITY OFSARATOGA, CALIFORNIA 2025-26 Adopted Budget 173 September September March Fiscal Year Bond Fiscal Interest Annual Interest Interest Annual Debt Principal Year Rate Principal Payment Payment Interest Service Balance @ YE Bond Issue Date: December 1, 2018 - - 2018/19 6.050%- - 33,176 33,176 33,176 - 2,498,848 2019/20 6.050%89,531 75,590 69,845 145,435 234,966 100,388 2,308,929 2020/21 6.050%31,090 69,845 53,332 123,177 154,267 514,797 1,763,042 2021/22 6.050%25,520 53,332 45,393 98,725 124,245 236,934 1,500,588 2022/23 6.050%23,374 45,393 44,686 90,079 113,453 1,477,214 2023/24 6.050%24,787 44,686 41,624 88,622 111,096 76,443 1,375,984 2024/25 6.050%26,287 41,624 40,828 82,452 108,739 - 1,349,697 2025/26 6.050%26,383 40,828 40,030 80,859 107,242 - 1,323,314 2026/27 6.050%27,979 40,030 39,184 79,214 107,193 - 1,295,335 2027/28 6.050%29,672 39,184 38,286 77,470 107,142 - 1,265,663 2028/29 6.050%31,468 38,286 37,334 75,621 107,089 - 1,234,195 2029/30 6.050%33,371 37,334 36,325 73,659 107,030 - 1,200,824 2030/31 6.050%35,390 36,325 35,254 71,579 106,969 - 1,165,434 2031/32 6.050%37,531 35,254 34,119 69,373 106,904 - 1,127,903 2032/33 6.050%39,802 34,119 32,915 67,034 106,836 - 1,088,101 2033/34 6.050%42,210 32,915 31,638 64,553 106,763 - 1,045,891 2034/35 6.050%44,763 31,638 30,284 61,922 106,685 - 1,001,128 2035/36 6.050%47,472 30,284 28,848 59,132 106,604 - 953,656 2036/37 6.050%50,344 28,848 27,325 56,173 106,517 - 903,312 2037/38 6.050%53,389 27,325 25,710 53,035 106,424 - 849,923 2038/39 6.050%56,620 25,710 23,997 49,708 106,328 - 793,303 2039/40 6.050%60,045 23,997 22,181 46,178 106,223 - 733,258 2040/41 6.050%63,678 22,181 20,255 42,436 106,114 - 669,580 2041/42 6.050%67,531 20,255 18,212 38,467 105,998 - 602,049 2042/43 6.050%71,616 18,212 16,046 34,258 105,874 - 530,433 2043/44 6.050%75,948 16,046 13,748 29,794 105,742 - 454,485 2044/45 6.050%80,543 13,748 11,312 25,060 105,603 - 373,942 2045/46 6.050%85,416 11,312 8,728 20,040 105,456 - 288,526 2046/47 6.050%90,584 8,728 5,988 14,716 105,300 - 197,942 2047/48 6.050%96,064 5,988 3,082 9,070 105,134 - 101,878 2048/49 6.050%101,878 3,082 - 3,082 104,960 - - TOTALS 1,570,286 952,100 909,685 1,864,098 3,432,071 928,562 Total Bond Principal 2,498,848$ Total Bond Interest 1,864,098 Total Cost of Bond 4,362,946$ 2,498,848$ City of Saratoga 2018 Arrowhead Community Facility District Bond Debt Schedule Less Approx Bond Debt Non-Departmental Department Budget CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 174 Legal Debt Margin City of Saratoga Legal Debt Margin The California Government Code Section 43605 states: A city shall not incur an indebtedness for public improvements which exceeds in the aggregate 15 percent of the assessed value of all real and personal property of the city. Within the meaning of this section, "indebtedness" means bonded indebtedness of the city payable from the proceeds of taxes levied upon taxable property in the city. This schedule calculates the City of Saratoga's legal debt margin by determining the 15% debt limit and comparing this limit to the City's outstanding debt at the end of the fiscal year so as to determine the difference between the two. Only certain types of debt are subject to the legal debt limit, most prominently General Obligation Bond debt. Therefore, while this schedule recognizes all types of long-term debt, the total debt is reduced by that debt not subject to the legal debt limit, as well as amounts held in sinking funds for debt repayment. The City's debt is comprised of one General Obligation Bond and one Community Facilities District Special Assessment Bond. City of Saratoga Legal Debt Margin Information (in thousands) 2023-24 Assessed value $19,871,183 Add back: Exempt Real Property 313,706 Total Assessed Value 20,184,889 Debt Limit: 15% of Total Assessed Value 3,027,733 Amount of Debt Applicable to Limit General obligation bonds 5,775 Net original issue premium 175 Less: Amount Available in debt service fund (1,013) Total net debt applicable to limit 4,937 Legal debt margin $3,022,796 Source: 2023-24 City of Saratoga Annual Comprehensive Financial Report Non-Departmental Program Budgets CITY OFSARATOGA, CALIFORNIA 2025-26 Adopted Budget 175 PAGE LEFT BLANK INTENTIONALLY Capital Improvement Program Introduction CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 176 Introduction The Capital Improvement Program (CIP) endeavours to identify all funded capital improvements planned for completion within the next five years, with cost estimates based on current year dollars. Project estimates are updated each year based upon current design specifications and bid prices. Equipment, operation, and maintenance costs incurred as an outcome of CIP projects are to be identified and included in the operating budget. As a city is comprised of diverse infrastructure, CIP projects are categorized by infrastructure type: streets; parks and trails, and facilities. The CIP policy is available here. The City of Saratoga’s fiscal year 2025-26 CIP represents an ongoing process through which the City identifies, prioritizes, and develops a multi-year workplan for major capital expenditures and their associated funding sources, in the effort to improve and maintain the City of Saratoga’s roadways, parks, facilities, and other infrastructure. Program Areas The CIP is divided into five discrete program areas as described below. Each program area’s classifications are then grouped by sub- classifications of projects the City is undertaking, and the tracking of resources expended for these purposes. The five programs are structured as follows: Streets Projects which develop and maintain the City’s roadway system to provide safe and efficient traffic flows while minimizing traffic movement and noise through residential neighborhoods; street lighting for traffic safety at intersections and throughout public streets; infrastructure development and maintenance of street surfaces, storm drain systems, curbs, gutters and sidewalks; bridges and retaining walls; and roadway landscaping to maintain the quality streetscapes of the Saratoga community. Gas Tax revenues, Road Maintenance and Rehabilitation Account funds (SB1), Refuse Impact Fees, and Santa Clara County Measure B are dedicated funding sources for the Streets Program, with total revenues of approximately $3 million per year. Funding for projects may also come from prior year General Fund savings, from development projects requiring mitigation of impacts, from partnerships with other jurisdictions, or from federal, state, and local grants as either part of statewide initiatives or through grant applications based on specific City projects. Parks & Trails Projects to develop and improve parks and sport fields, park structures, trails, the city plaza park, and various citywide tree planting and maintenance. Dedicated funding for the Parks Program includes a Park Development Fee collected when a development project subdivides property, and from Tree Fines collected from un-permitted tree removals. Funding may also come from prior year General Fund savings, from grants and park bond funds, and from donations. Park projects may, on occasion, include community volunteer services for minor construction and clean-up projects. American Rescue Plan Act’s State and Local Fiscal Recovery Fund (ARPA SLFRF) In March 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law with $350 billion made available through the State and Local Fiscal Recovery Funds (SLFRF) to assist state and local governments with pandemic related response and recovery efforts. Saratoga’s ARPA/SLFRF funding allocation is approximately $7.2 million, released directly to Saratoga in June/July of 2021 and 2022. Funds must be spent in accordance with the US Department of Treasury guidance with commitment of funds by December 31, 2024, and expenditures by December 31, 2026. Capital Improvement Program Introduction CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 177 Facilities Projects for purchasing, constructing, or making capital repairs to City buildings, structures, and equipment. City buildings include the Civic Center and Chamber/Theater Building, the Senior/Community Center and auxiliary structures, the Corporation Yard and structures, the North Campus, the Historical Buildings including the Saratoga Museum, the McWilliams House, and the Book-Go-Round. Funding is not specifically designated for this capital program; allocations generally come from General Fund prior year savings or grant funds applied to qualified improvements such as Community Development Block Grant funds for ADA improvements. Administrative & Technology Improvements Projects which provide operational efficiencies and improvements in the administration of City services. Administrative & Technology Improvement Projects typically include major expenditures for new systems or system upgrades, new technology equipment or services, and one-time and/or multi-year administrative projects such as converting a decades-long accumulation of microfiches, building plans, and legal documents; the development of business and community incentives; the implementation of risk management programs, and for non-recurring operational improvement projects. Revenue for administrative projects may come from the City’s Internal Service Replacement Funds, from grants, or from prior year General Fund savings. Capital Planning Guidelines and Process The standard definition of a CIP project is for construction, acquisition, rehabilitation, or non- routine maintenance work that generally costs $25,000 or more with a minimum useful life of 5 years at a fixed location. The City also includes projects under $25,000 in the CIP if they qualify as staged or ongoing improvement projects, or if they are significant multi-year projects. Additionally, non-infrastructure projects may be included in the CIP under the Administrative & Technology programs if they are one-time, operational efficiency, technology, or multi- faceted administrative projects. Under direction from the City Manager, Public Works takes the lead in the preparation of most street and parks CIP projects and Facilities takes the lead in most facility-related CIP projects. Administrative & Technology CIP projects are typically recommended by the City Manager, Administrative Services, or Community Development departments as they represent non-infrastructure projects. The CIP Procedure Process Policy establishes the guidelines to move proposed projects through the proposal preparation and capital project review process. This includes a review by the Planning Commission to ensure projects are consistent with the City’s General Plan prior to Council’s final budget review. Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 178 Streets Capital Improvement Program STREET REPAIR AND RESURFACING PROJECTS PAGE 9111-003 Pavement Management Program (PMP) 181 ROADWAY SAFETY PROJECTS 9121-001 Annual Roadway Safety & Traffic Calming 183 9121-008 Safe Routes to School Implementation 184 9121-009 Citywide Bikeways and Sidewalk Masterplan 185 9121-010 Pedestrian Street Lights 186 9122-006 Prospect Road Improvements 187 9122-011 Saratoga Avenue at Herriman Traffic Signal Installation 189 SIDEWALK, CURBS & STORM DRAIN PROJECTS 9141-005 Annual Sidewalks, Curbs & Gutters, Storm Drains, Bridges Maintenance and Repair 190 9141-009 Annual Corrugated Pipe Rehabilitation 192 9142-005 Saratoga Avenue Sidewalks 193 9142-019 Saratoga Village Crosswalk & Sidewalk 195 9142-020 Quito Road Sidewalk Improvement Design 196 9142-021 Saratoga/Sunnyvale Road Sidewalks 198 9142-035 Pierce Road Culverts 199 RIDGE AND RETAINING WALLS 9152-001 Fourth Street Bridge Widening 200 9152-002 Quito Road Bridges – Preliminary Engineering, ROW Engineering 202 9152-005 Bridge Rehabilitation Project Phase 1 204 9153-003 Annual Retaining Wall Maintenance & Repairs 205 9153-005 Mt. Eden Erosion Repair 206 9153-008 Hillside Stabilization 207 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 179 Program Area Descriptions The Capital Improvement Program’s Street Improvements Program provides for a safe and functional roadway and pedestrian street system. Projects within the Street Program are classified by their primary scope of work into five project categories: • Street Resurfacing, Repair & Maintenance Projects • Roadway Safety Improvements • Street Landscape & Beautification Improvements • Sidewalks, Curbs & Storm Drain Improvements • Bridge & Hillside Support Projects Street Resurfacing, Repair & Maintenance Projects consist of projects that primarily repave and improve roadway surfaces. Projects include resurfacing the neighborhood(s), collector, and arterial streets on a priority basis. Funding is added to the ongoing street resurfacing project each year as available. Individual Street Repair & Resurfacing projects may be established when grants are provided for specifically identified sections of roadway. Roadway Safety Improvements consist of projects that improve roadway safety factors. Roadway safety improvement projects include small site-specific improvement items that include signs, striping, and curbs as directed by the Traffic Safety Commission; ADA projects for accessibility enhancements, such as curb ramps and audible signals; refuge lanes for traffic merging; railroad crossing improvements; radar feedback signs; and larger safety projects, such as the bicycle and pedestrian safety improvements made to Highway 9. Street Landscape & Beautification Improvements consist of projects that improve the visual component of streets. This includes median landscape improvements, city entrance signs, tree lighting, sidewalk furniture, and accessories such as trash receptacles and news rack stands. Sidewalk, Curbs, Gutters & Storm Drains consist of sidewalk improvement and repair projects; curb, gutter, and storm drain improvements; and pedestrian safety improvement projects. These projects are both general and specific, depending on funding sources. Bridge & Hillside Support Projects consist of projects that repair, replace, or rehabilitate deficient bridge structures or provide support for hillside roadways. Bridge structures fall under the guidance of federal and state regulations, and are often funded by these regulatory agencies, such as Caltrans or the Federal Highway Bridge Replacement and Rehabilitation Program (HBBR). Hillside Support projects are generally funded through transfers from the General Fund. Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 180 Funding Summary by Project Project Category & Project Name Budget Est. Full Year Actual Carryover Approved Additions Total Budget Street Repair and Resurfacing Projects 9111-003 - Pavement Management Program (PMP)6,648,879 4,362,879 2,286,000 3,100,000 5,386,000 Streets Capital Improvement Program Total 6,648,879 4,362,879 2,286,000 3,100,000 5,386,000 Roadway Safety Projects 9121-001 - Annual Roadway Safety & Traffic Calming 150,850 122,000 28,850 150,000 178,850 9121-007 - Traffic Signal Controller Upgrades 17,504 17,504 - CLOSED - 9121-008 - Safe Routes to School Implementation1 295,055 215,500 79,555 760,000 839,555 9121-009 - Citywide Bikeways and Sidewalk 57,395 - 57,395 - 57,395 9121-010 - Pedestrian Street Lights 200,000 10,000 190,000 - 190,000 9122-006 - Prospect Road Improvements 1,404,499 3,254 1,401,245 - 1,401,245 9xxx-xxx - Saratoga Avenue At Herriman Traffic - - - 850,000 850,000 Roadway Safety Projects Total 2,125,303 368,258 1,757,045 1,760,000 3,517,045 Street Landscape & Beautification Projects 9132-006 - Village Clock/Saratoga Village Beautification 2,560 2,560 - CLOSED - Street Landscape & Beautification Projects Total 2,560 2,560 - - - Sidewalk, Curbs & Storm Drain Projects 9141-005 - Annual Sidewalks, Curbs & Gutters, Storm Drains, Bridge Maintenance and Repair 304,247 200,000 104,247 250,000 354,247 9141-009 - Annual Corrugated Pipe Rehabilitation 165,005 - 165,005 - 165,005 9142-005 - Saratoga Avenue Sidewalks 67,177 10,800 56,377 25,000 81,377 9142-019 - Saratoga Village Crosswalk & Sidewalk 360,472 - 360,472 - 360,472 9142-020,023, 030 - Quito Road Sidewalk Imp Design 525,979 - 525,979 - 525,979 9142-021 - Saratoga/Sunnyvale Road Sidewalks 92,158 - 92,158 - 92,158 9142-035 - Pierce Road Culvert Repair 255,200 - 255,200 500,000 755,200 Sidewalk, Curbs & Storm Drain Projects Total 1,770,238 210,800 1,559,438 775,000 2,334,438 Bridge and Retaining Walls 9152-001 - Fourth Street Bridge Widening 547,846 - 547,846 - 547,846 9152-002, 004 - Quito Road Bridges - Preliminary Engineering, ROW Engineering 166,230 1,139 165,091 - 165,091 9152-005 - Bridge Rehabilitation Project Phase 1 700,000 - 700,000 - 700,000 9153-003 - Annual Retaining Wall Maintenance & 499,401 50,000 449,401 200,000 649,401 9153-005 - Mt. Eden Erosion Repair 32,776 15,000 17,776 75,000 92,776 9153-008 - Hillside Stabilization 250,000 - 250,000 500,000 750,000 Sidewalk, Curbs & Storm Drain Projects Total 2,196,253 66,139 2,130,114 775,000 2,905,114 Total 12,743,233 5,010,636 7,732,597 6,410,000 14,142,597 1 Includes Fund 411 & 434 2024-25 2025-26 Expenditures Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 181 Pavement Management Program (PMP) Project No. 9111-003 Project Manager – Emma Burkhalter, Associate Civil Engineer The City has a comprehensive annual Pavement Management Program (PMP) that includes road resurfacing and maintenance to keep the City's single largest piece of infrastructure in good condition. The PMP combines regular maintenance of roadways to prevent road conditions from rapidly deteriorating and significant repairs for streets with the highest need. Resurfacing City streets regularly extends the lifetime of the roadways and minimizes the need for larger and more costly projects in the future. Keeping streets in good condition also reduces liability risks and staff time required for minor repair work. An engineering consultant assesses City roads using the Paving Condition Index (PCI) every three years. PCI measures average road conditions on a scale of 0 to 100, which, when combined, then provides an overall score of City roads. A zero (0) PCI indicates that a road has failed, and a PCI of 100 indicates that a road is in excellent condition. The following PCI brackets communicate the relative significance of a PCI score in ranges: In the most recent assessment in 2022, the City’s overall PCI was calculated to be 69. The annual PMP project scope identifies streets based on several factors, including PCI, maintenance recommendations, and budgetary constraints. This information, combined with the City Engineer's observations and residents' input, determines which streets to include in the annual PMP. According to the City’s 2022-23 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. Saratoga does not have a structural funding source to fill the gap of $2.6 to $4.4 million necessary to maintain or improve the current PCI. Project Milestones Identified/proposed Approved/funded 2016-17 Design/Construction Ongoing Completion Ongoing Excellent Very good Good Poor Very Poor 90 to 100 70 to 89 50 to 69 25 to 49 0 to 24 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 182 Pavement Management Program (PMP) (continued) Project No. 9111-003 Each year, approximately $200,000 is used for improvements such as signage installations, engineering studies, roadway stripping, materials purchases, and other miscellaneous repairs within the City rights- of-way. In addition, up to 20% of the resurfacing cost of a street can be for curb and gutter repairs which are necessary to improve drainage and longevity of the road surface. Funding Source: 2025-26 revenue dedicated to the PMP totals an estimated $3.1 million, with 55 percent from the State and 30 percent from the County. Only 15 percent of the structural revenue for the PMP originates from a City source, the refuse impact fee. Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 3,438,580 3,438,580 0 1,400,000 1,400,000 481 Gas Tax 3,210,299 3,210,299 0 1,700,000 1,700,000 Total 6,648,879 6,648,879 0 3,100,000 3,100,000 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 183 Annual Roadway Safety & Traffic Calming Project No. 9121-001 Project Manager – Emma Burkhalter, Associate Civil Engineer In conjunction with the Traffic Safety Commission (TSC), this project funds safety and traffic calming improvements. The Traffic Safety Commission (TSC) and staff meet on a bi-monthly basis to review and assess traffic safety matters throughout the City. As part of this review, the TSC periodically recommends improvements to enhance safety and/or calm traffic. Most improvements are small and fall within the scope of the operating budget. Occasionally, more costly remediation is warranted, and Roadway Safety and Traffic Calming funds are used. Examples include speed humps, radar signs, medians, bulb-outs, and enhanced crosswalks. Additionally, the TSC reviews the Unfunded CIP traffic projects each year and prioritizes according to safety and proximity to schools. Funding Source: General Fund Expenditure Budget: 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 150,850 122,000 28,850 150,000 178,850 Total 150,850 122,000 28,850 150,000 178,850 Operating Budget Impact (if any): None Mid-year adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State Mandate Environmental Sustainability Other Project Milestones Identified/proposed 2008 Approved/funded 2020-21 Design/Construction Ongoing Completion Ongoing Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 184 Safe Routes to School Implementation Project No. 9121-008 Project Manager - Mainini Cabute, Environmental Programs Manager This project implements the Safe Routes to School (SRTS) Masterplan and the SRTS Need Assessment CIP. Improves pedestrian and student safety around schools. In July 2023, the City received a Community Project Funding Grant from Congress member Anna Eshoo’s office of $500,000 towards this project. The grant award requires matching funds in the amount of $125,000. The cost of developing design plans for phase 0 and phase 1 totals $173,000. In FY2025-26 Staff will prioritize improvements at key intersections near schools including installations of Flashing Beacons and high visibility crosswalks. Visit https://www.saratoga.ca.us/509/Safe-Routes-to-School for more information on the SRTS Masterplan. Funding Source: General Fund and Grant Funds Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 136,300 56,745 79,555 260,000 339,555 414 CIP Admin & Tech 158,755 158,755 0 0 0 434 Street CIP Grant 500,000 500,000 Total 295,055 215,500 79,555 760,000 839,555 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate x Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2022-23 Design/Construction 2022-23 Completion 2026-27 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 185 Citywide Bikeways and Sidewalk Masterplan Project No.431/411.9121-009 Project Manager – Mainini Cabute, Environmental Programs Manager This project will identify and prioritize locations for new bikeways and sidewalks and opportunities for gap closures Citywide. Funding Source: OBAG grant $443,000 and required Local Match of $57,000 Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 57,395 0 57,395 0 57,395 431 Street CIP Grant 443,000 0 443,000 0 443,000 Total 500,395 0 500,395 0 500,395 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety × Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source × Community Engagement Federal or State mandate Environmental Sustainability × Other: Project Milestones Identified/proposed July 2022 Approved/funded July 2023 Design/Construction 2023-24 Completion 2025-26 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 186 Pedestrian Streetlights Project No. 9121-010 Project Manager – Emma Burkhalter, Associate Civil Engineer This project would fund the installation of streetlights at crosswalks identified by the Traffic Safety Commission. The crosswalk locations include: Saratoga Avenue at Crestbrook Drive, Fruitvale Avenue at Douglass Lane, Fruitvale Avenue at Farwell Avenue, Fruitvale Avenue at Three Oaks Way, Cox Avenue at Glen Brae Drive, Cox Avenue at Sea Gull Way, and Cox Avenue at Cumberland Drive and Cox Avenue at DeHavilland Drive. Funding Source: General fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 200,000 10,000 190,000 0 190,000 Total 200,000 10,000 190,000 0 190,000 Operating Budget Impact (if any): None Mid-year budget adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2024 Approved/funded 2024-25 Design/Construction 2024-25 Completion 2025-26 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 187 Prospect Road Improvements Project No. 9122-006 Project Manager - Macedonio Nunez, Engineering Services Manager This project will improve the Prospect Avenue corridor through the addition of roadway medians and a variety of pedestrian and bicycle improvements. Project work will occur along a 1.9- mile section of Prospect Road between Saratoga- Sunnyvale Road and Lawrence Expressway. Phase 1: This phase was completed in July 2019, which installed roadway medians, sidewalks, bicycle loops, and accessible ramps to improve the safety of Prospect Road in Saratoga. This phase physically reduced the width of the road, channeling vehicles into defined turn lanes, reducing the threat of vehicles crossing the center lane, and creating safer pedestrian crossings. Improvements to existing pedestrian, bicycle and VTA bus stop facilities, will enhance pedestrian accessibility and provide a safe and convenient walking and bicycling experience. Phase 2: This phase consists of improvements such as new irrigation and landscaping to 3 existing medians on Prospect Rd. between Titus Ave. and English Dr. that had not been worked on during the Phase 1 contract. On Saratoga Ave. & Cox Ave. signalized intersection improvements will improve safety and the Level of Service. This will include installing new traffic signal light poles, adding a second westbound left turn lane from Cox Ave. to southbound Saratoga Ave. which will require modification to the existing eastbound Cox Ave. number one lane from a combo through and left turn lane to an only left turn lane. The improvements will remove the pedestrian island on the south/west corner and install a bulb-out extension concrete corner. Also, at all the corners, the improvements will include new ADA ramps. Funding Source: General Fund & Grant Funds Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 306,254 3,254 303,000 0 303,000 431 Street CIP Grant 1,049,967 0 1,049,967 0 1,049,967 481 Gas Tax 48,278 0 48,278 0 48,278 Total 1,404,499 3,254 1,401,245 0 1,401,245 Project Milestones Identified/proposed Approved/funded 2013-14 Construction 2023-24 Completion 2026-27 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 188 Prospect Road Improvements (continued) Project No. 9122-006 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 189 SARATOGA AVENUE AT HERRIMAN TRAFFIC SIGNAL INSTALLATION Project Name Saratoga Avenue at Herriman Traffic Signal Installation Project Number Department Public Works Project Manager John Cherbone Description This project would install a three-way traffic signal at the intersection of Saratoga and Herriman Avenues. Location The project is located at the intersection of Saratoga Avenue and Herriman Avenue. Priority Factors This project applies to the Health and Safety Issues and Business or Community Support Priority Factors. Project Background The Traffic Safety Commission (TSC) recommended installation of a traffic light at the intersection of Saratoga Avenue and Herriman Avenue. The TSC made their recommendation on the basis that a traffic signal at this location would allow vehicles a smoother transition onto Saratoga Avenue while alleviating traffic congestion on Herriman Avenue, especially during Saratoga High School’s peak morning and afternoon commuting periods. Traffic queues on westbound Herriman, due to vehicles attempting a left turn onto Saratoga Avenue, consistently spill back to the bridge and beyond. Because of this backup, drivers seek alternative routes through surrounding neighborhood streets to bypass this intersection. Data showed vehicles traveling from Herriman Avenue to Beaumont, then to Glen Brae heading either to Cox Avenue or Scotland Drive to access Saratoga Avenue via the signal at that intersection. Installing a traffic signal at Saratoga Avenue and Herriman Avenue would allow for better traffic flow at this intersection and reduce the impact of through traffic on the surrounding residential streets. This project was added to the Unfunded Capital Improvement Projects list as part of the Fiscal Year 2017/18 budget. Estimated Cost $850,000 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 190 Annual Sidewalks, Curbs & Gutters, Storm drains, Bridges Maintenance and Repair Project No. 9141-005 Project Manager - Rick Torres, Public Works Manager This project is one of the capital projects that the City council has designated as a priority for capital funding, as it helps preserve and maintain critical City infrastructure on an ongoing basis. Sidewalks: There are approximately 17 linear miles of sidewalk in Saratoga. Sidewalk repairs ensure that the City’s sidewalks are maintained in good condition, minimizing tripping hazards, reducing liability risk, and preventing larger and more costly improvement projects in the future. Approximately 35,000 square feet of sidewalk is repaired each year. Curbs and Gutters: Ongoing repairs to curbs and gutters prevent flooding through improved water runoff. Additionally, well maintained curbs and gutters improve pedestrian and bicycle safety by reducing tripping hazards. Damage to curbs and gutters is most frequently caused by tree roots or impact from a heavy vehicle. Storm drains: Storm drains are inspected to identify failures, or potential failures. Sections of storm drains that have failed, which often result in flooding, are either replaced or repaired. Bridges: Each year Caltrans inspects all bridges in the state, including locally owned bridges, provides repair recommendations, determines the safe load capacity of all bridges, and assists in specifications and estimates for bridge maintenance projects. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 304,247 200,000 104,247 250,000 354,247 Total 304,247 200,000 104,247 250,000 354,247 Project Milestones Identified/proposed Approved/funded 2016-17 Design/Construction Ongoing Completion Ongoing Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 191 Annual Sidewalks, Curbs & Gutters, Storm drains, Bridges Maintenance and Repair (continued) Operating Budget Impact (if any): None Mid-year adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate X Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 192 Corrugated Metal Pipe Rehabilitation Project No. 9141-009 Project Manager - Macedonio Nunez, Engineering Services Manager This Project will fund the ongoing rehabilitation of existing deteriorating corrugated metal pipe (CMP) that is used for the storm drain system throughout the City. The aging CMP, once it is deteriorated and compromised, will cause an underground cavity which can collapse and cause underground soil erosion that results in sinkhole incidents. In FY 2023-24, CMP rehabiliations will include the culvert at Pirece Road and Pike Road that failed in the January 2023 Storms and the culvert at the intersection of Pierce Road and Palomino Way. The rehabilitation of the culvert at Pierce Road and Pike Road is currently pending review for FEMA funding. If it gets approved, then the City funding will be available for additional CMP rehabilitation projects as prioritized by City Staff. The City Storm Drain Master Plan, which is currently under development by Sandis Engineering, calls out future repair work to CMPs. This will require expenditures in the hundreds of thousands of dollars. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 165,005 0 165,005 0 165,005 Total 165,005 0 165,005 0 165,005 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2023-24 Approved/funded 2023-24 Design/Construction Ongoing Completion Ongoing Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 193 Saratoga Avenue Sidewalks Project No. 9142-005 Project Manager – Macedonio Nunez, Engineering Services Manager Since 1992, the City has been adding new sections of sidewalk along Saratoga Avenue, using Transit Development Act (TDA) funds to create a continuous sidewalk between the Village and Quito Road. The City generally allows these funds to accumulate over several years and identifies the pathway sections to be completed along Saratoga Avenue. Sidewalks provide a safe path for pedestrians away from the roadway. The sidewalk also allows residents in wheelchairs or other wheeled devices to travel in the City. Furthermore, extension of the City’s sidewalk system increases the City’s walkability and adds to the recreational opportunities available to residents. This project has been Ongoing since 1992 and will continue until all sidewalk gaps are closed. To date, this CIP has completed Pedestrian Safety Improvements along Saratoga Ave at the following locations: • Reconstruction of deteriorating existing asphalt concrete pathway between Shadow Oaks and Heritage Oak • Crestbrook Drive bulb-out ramp/crosswalk improvement • Herriman Avenue bulb-out ramp/crosswalk improvement • La Paloma Avenue intersections bulb-out ramp/crosswalk improvement • Bus Stop locations near the intersection of Highway 9 • Sidewalk and ADA ramps at the frontage of the Old Post Office to Park Place • Handicap ramp between Juniper Lane and Douglass Ln (just south of Douglass Ln on the southbound direction) • Upgrade deteriorating handicap ramps along Saratoga Ave between Lutheria Way to Scotland Dr. Funding Source: General Fund & Grant Funds Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 431 Street CIP Grant 67,177 10,800 56,377 25,000 81,377 Total 67,177 10,800 56,377 25,000 81,377 Project Milestones Identified/proposed 1992 Approved/funded 2008-09 Design/Construction Ongoing Completion Ongoing Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 194 Saratoga Avenue Sidewalks (continued) Project No. 9142-005 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 195 Saratoga Village Crosswalk & Sidewalk Rehabilitation Project No. 9142-019 Project Manager - Macedonio Nunez, Engineering Services Manager This project is located on Big Basin Way between 5th Street and 6th Street. The Village, Saratoga’s historical downtown, offers shops, restaurants, salons, and office space. The City has been making a series of improvements to the Village to make it a more walkable destination, including installation of pedestrian bulb- outs and enhanced crosswalks to make pedestrians more visible, as well as installation of benches, bike racks, aesthetic improvements, and a renovation of Blaney Plaza to make the Village a more desirable place to gather. This project will improve the crosswalks at Big Basin Way and 5th Street, as well as the crosswalk in front of Rose’s Market. These improvements will include installation bulb-outs, enhanced crosswalks, decorative landscaping, and benches. This project has been delayed due to Caltrans scheduling. Funding Source: General Fund & Grant Funds Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 26,932 0 26,932 0 26,932 431 Street CIP Grant 333,540 0 333,540 0 333,540 Total 360,472 0 360,472 0 360,472 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2020-21 Construction 2024-25 Completion 2025-26 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 196 Quito Road Sidewalk Improvements Project No. 9142-020 Project Manager - Macedonio Nunez, Engineering Services Manager Quito Road travels from Lawrence Expressway to Highway 9. The road serves as a connection to several local schools in Saratoga and nearby cities. Currently, there are some sections of sidewalk along the east side of Quito. However, the street lacks a continuous stretch of sidewalk. The Traffic Safety Commission (TSC) received numerous complaints from residents who felt unsafe walking along Quito Road. Subsequently, the TSC assessed Quito Road and recommended filling sidewalk gaps. The project includes the design and construction of new segments of sidewalk on Quito Road and reconstruction of existing facilities to improve pedestrian safety and access in the area. This encompasses costs associated with initial planning, topographical survey and construction for each section being improved. The design work for the stretch of Quito Road from State Route 85 to Allendale Avenue is complete. In addition, the design and construction of upgrades to existing walkways and fill-in gaps on the Southbound side of Quito Road, from Allendale Avenue to Marshall Lane has been completed Future scope includes; • The sidewalk gap closure and handicap ramp installation along the northbound side from Pollard Road to Allendale Avenue • Sidewalk improvements along both northbound and southbound sides of the road from Allendale Avenue to Highway 85. The design and construction of sidewalk gap closure and handicap ramp installation on the southbound direction between (City limits at the north) Paseo Cerro to Cox Ave. Funding Source: General Fund Project Milestones Identified/proposed Approved/funded 2021-22 Design 2022-24 & Construction 2025-26 Completion 2027-28 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 197 Quito Road Sidewalk Improvements (continued) Project Nos. 9142-020, 9142-023, 9142-030, Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 525,979 0 525,979 0 525,979 Total 525,979 0 525,979 0 525,979 Operating Budget Impact (if any): none Md-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate X Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 198 Saratoga - Sunnyvale Road Sidewalks Project No. 9142-021 Project Manager - Macedonio Nunez, Engineering Services Manager In April 2017, the City Council voted to allow a homeowner to purchase a 19-foot wide portion of Saratoga-Sunnyvale Road that lies along the property’s boundary, which the City was not using for roadway purposes, for $92,183. The proceeds from the sale were assigned to be used for pedestrian improvements along Saratoga-Sunnyvale Road. As part of the 2020-21 Capital Improvement Program, the City Council adopted the staff recommendation that the funds be used to design a walkway on Saratoga-Sunnyvale Road from Reid Lane to Big Basin Way. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 92,158 0 92,158 0 92,158 Total 92,158 0 92,158 0 92,158 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed 2017 Approved/funded 2019-20 Design/Construction 2023-24 Completion 2026-27 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 199 Pierce Road Culvert Repairs Project No. 9142-035 Project Manager – Macedonio Nunez, Engineer Services Manager This project will replace a culvert at Pirce Road that failed during the January 2023 storms. The failed culvert caused severe erosion to the roadway embankment. Emergency roadway repairs prevented complete failure of the roadway at the time. Funding Source: General fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 255,200 0 255,200 500,000 755,200 Total 255,200 0 255,200 500,000 755,200 Operating Budget Impact (if any): None Mid-year budget adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability X Other: Project Milestones Identified/proposed 2024 Approved/funded 2024-25 Design/Construction 2024-25 Completion 2025-26 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 200 Fourth Street Bridge Widening Project No. 9152-001 Project Manager – Macedonio Nunez, Engineering Services Manager The 4th Street Bridge was constructed in 1939 and crosses Saratoga Creek near the entrance to Wildwood Park. This project will widen the bridge to accommodate a sidewalk for pedestrian traffic, as well as make structural improvements to bring the bridge in compliance with current standards. A California Department of Transportation review of Saratoga bridges in 2004 listed the 4th Street Bridge as being in “generally good condition.” There are 20 bridges located in the City with 9 of these bridges passing over Saratoga Creek. This project will be completed in three phases; • Phase 1: Preliminary engineering and environmental, right-of-way acquisition, and construction with a total estimated cost of $1.41 million. The Preliminary Engineering and Environmental phase will include survey work, constraint analysis, environmental review and design with an estimated cost of $455,000. • Phase 2: The Right-of-way acquisition phase will include the acquisition or obtaining rights to access property needed to widen the bridge, with an estimated cost of $10,000. • Phase 3: The construction phase will include work on widening the bridge with an estimated cost of $945,000. The project has sufficient funding for the preliminary engineering, environmental, and right-of-way acquisition. Additional funding will be needed to complete the construction phase of this project. Funding Source: General Fund & Grant Funds Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 134,331 0 134,331 0 134,331 431 Street CIP Grant 413,515 0 413,515 0 413,515 Total 547,846 0 547,846 0 547,846 Operating Budget Impact (if any): none Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction 2023- to 2025 Completion 2026-27 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 201 Mid-year adjustment $ amount and explanation: none Fourth Street Bridge Widening (continued) Project No. 9152-001 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 202 Quito Road Bridges Project Nos. 9152-002, 9152-004 Project Manager - Macedonio Nunez, Engineering Services Manager Periodically, the California Department of Transportation (Caltrans) conducts assessments of bridges in Saratoga. Caltrans rated the two bridges on Quito Road between Sobey Road and Vessing Road as needing replacement. Additionally, the bridges are not wide enough to meet current CalTrans standards for roadway size. This project will rebuild the bridges, bringing the width of the Quito Road bridges in compliance with State roadway standards, which will ultimately increase safety for people using Quito Road. Both bridges pass over San Tomas Creek, which flows through Saratoga, Campbell, Los Gatos, Monte Sereno, San Jose, and Santa Clara. As these two bridges fall along the city limit lines of Saratoga and Los Gatos and along the San Tomas Creek, Los Gatos, Saratoga, and the Santa Clara Valley Water District all share in the boundaries and responsibilities. As Saratoga holds the primary share of allocated responsibility, the City agreed to manage this bridge replacement project. A cooperative agreement between the three agencies has been executed with Saratoga named as the lead agency. • Preliminary Engineering Phase (Project No. 9152-002): Preliminary design work for the bridge replacement was completed as part of this phase. Staff anticipates updates to the design will be required prior to start of construction in order to bring the designs up to current Caltrans standards. • Right of Way Acquisition, Environmental Review and Construction Phase (Project no. 9152-004): Replacement and widening of the two bridges requires the acquisition of 4,532 square feet of easements from three privately owned parcels adjoining the existing right of way. This Phase funds the right-of-way acquisition needed to build the bridges, Envornmental Review and reconstruction of the 2 bridges. Funding Source: General Fund & Grant Funds Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction 2024-25 Completion 2027-28 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 203 Quito Road Bridges (continued) Project Nos. 9152-002, 9152-004 Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 131,139 1,139 130,000 0 130,000 431 Street CIP Grant 28,006 0 28,006 0 28,006 481 Gas Tax 7,085 0 7,085 0 7,085 Total 166,230 1,139 165,091 0 165,091 Operating Budget Impact (if any): None Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate X Environmental Sustainability Other: Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 204 Bridge Rehabilitation Project Project Nos. 9152-005 Project Manager - Poh Yee, Civil Engineer Caltrans issues annual bridge inspection reports to the City for bridges within the City’s jurisdiction, Recent reports have identified deficiencies in 6 City bridges the require repair work. This project will address those deficiencies by repairing bridge abutments, scouring, deck rehabilitation and railings. If not completed, bridges will continue to deteriorate and the costs to make the repairs will increase substantially. The project requires review and permits from Santa Clara Valley Water District, Regional Water Control Board, Fish & Wildlife, and Army Corps of Engineers. • Phase 1: This phase mitigates deficiencies at 3 of 6 bridge locations called out in the Caltrans inspection reports. • Phase 2: This phase mitigates deficiencies at the remaining 3 of 6 bridge locations called out in the Caltrans inspection reports which were not addressed in Phase 1. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 700,000 0 700,000 0 700,000 Total 700,000 0 700,000 0 700,000 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed 2023-24 Approved/funded 2023-24 Design/Construction 2024-25 Completion 2026-27 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 205 Annual Retaining Wall Maintenance & Repairs Project No. 9153-003 The City is responsible for retaining walls throughout the City. These retaining walls help prevent soil erosion, provide stability for hillsides, and prevent surface runoff from obstructing roadways. Winter storms caused damage to retaining walls in various locations in the City. Rather than funding projects individually, the City Council created the Annual Retaining Wall Maintenance & Repairs capital project to maintain existing retaining walls, monitoring them for signs of failure, and make repairs as needed. This project is one of several capital projects identified as a priority by the City Council and receives $200,000 each year, depending on funding availability. Retaining walls with active failures on Pierce Road, Mount Eden Road, Palomino Way, Continental Circle, Bohlman and Prospect Road and Saratoga Heights will be monitored and prioritized. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Full Year Actual Carryover Proposed Budget Total Budget 411 CIP Street 499,401 50,000 449,401 200,000 649,401 Total 499,401 50,000 449,401 200,000 649,401 Operating Budget Impact (if any): None Mid-year budget adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2016-17 Approved/funded 2017-18 Design/Construction Ongoing Completion Ongoing Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 206 Mt. Eden Erosion Repair Project No. 9153-005 Project Manager - Poh Yee, Civil Engineer This project stabilized the portion of the Mt. Eden Rd shoulder where it had been eroded by Calabazas Creek. An external consultant evaluated the erosion and prepared a design to stabilize the roadway. The construction required the City to obtain State permits, as it takes place along the edge of the creek. Construction began in 2021 and was completed in 2021-22. State permit requirements for 5-year follow-up monitoring will keep the project open through 2028-29. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 32,776 15,000 17,776 75,000 92,776 Total 32,776 15,000 17,776 75,000 92,776 Operating Budget Impact (if any): None Mid-year adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability X Other: Project Milestones Identified/proposed Approved/funded 2019-20 Design/Construction 2020-21 & 2021-22 Completion 2028-29 Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 207 Hillside Stabilization Project Project No. 9153-008 Project Manager – John Cherbone, Public Works Manager Several areas of potential landslides in the City have been identified and are being monitored by City Staff and the City Geologist. These areas include sections of Bohlman Road, Diamond Oaks Way, Old Oak Way, Palomino Way, Sarahills Drive, Chiquita Way, and multiple sections on Pierce Road and Mt. Eden Road. The cost to repair and stabilize the locations is estimated to be over $1 million for each site. This project will provide annual funding that will be rolled over to accumulate sufficient budgets to complete the repair and stabilization of one section at a time as prioritized by Staff. Funding Source: General Fund Expenditure Budget: 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 411 CIP Street 250,000 0 250,000 500,000 750,000 Total 250,000 0 250,000 500,000 750,000 Operating Budget Impact (if any): None Mid-year adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate X Environmental Sustainability Other: Project Milestones Identified/proposed 2024 Approved/funded 2024-25 Design/Construction Ongoing Completion Ongoing Streets Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Proposed Budget 208 PAGE LEFT BLANK INTENTIONALLY Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 209 Park & Trail Capital Improvement Program CITYWIDE PROJECTS PAGE 9211-001 Annual Parks, Trails, Grounds, & Medians Infrastructure 212 9211-002 Citywide Tree Replanting Program 213 9211-011 Annual Mechanical Weed Abatement 214 9211-012 Residential Tree Planting Program 215 PARK PROJECTS 9222-004 Hakone Gardens Infrastructure Improvements 216 9222-008 Hakone Gardens Pond Renovation – Phase I 217 9233-001 Bellgrove Park Playground Replacement 218 9251-001 Congress Springs Park Concrete Repairs 219 9252-004 El Quito Park Community Garden 220 9224-002 Historical Museum Landscaping 221 9226-006 Quarry Park Parking Expansion 222 TRAILS & OPEN SPACE PROJECTS 9226-005 Quarry Park Mtc Building Utility Project 223 9274-002 Blue Hills Elementary Pedestrian Crossing at Union Pacific Railroad (UPRR) 224 9277-004 Saratoga Village to Quarry Park Walkway 226 9281-005 Park and Trail Fire Mitigation 228 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 210 Program Area Descriptions The Parks & Trails Program provides for capital improvements to the City of Saratoga’s neighborhood and city parks and plaza, sports fields, bike and pedestrian trails, and open space areas throughout the city. Projects within the Parks & Trails Program are classified as General/Citywide Park Improvements, City Park Projects, Neighborhood Park Projects, Sport Park Projects, or Trail and Open Space Projects. Within the project classification, the projects are sub-classified by site. This structure allows for the tracking of resources by individual park, trail, or open space area, and by specific project work completed. General Repairs & Maintenance General and citywide park and trail repair projects provide minor repairs that are not specified bodies of work to an individual site, and for citywide projects that apply to multiple sites. Projects could include fence repairs or improvements, tree removals, park furniture and equipment, lighting or irrigation enhancements, structure repairs, or various minor projects that arise to improve the infrastructure. This category also includes the Citywide Tree Replanting project which is primarily funded through tree fines and used for tree planting and irrigation throughout the City. A third subcategory is funding projects for open space contributions. City Parks Projects which improve the larger parks which draw the entire community. These include Quarry Park, Wildwood Park, Hakone Gardens, Heritage Orchard Park, Blaney Plaza, and the Village Historical Park. City Parks generally have features and attractions in addition to playground equipment, picnic areas, and ball courts. Neighborhood Parks Projects for the City’s smaller parks located within neighborhoods. These include Azule Park, Beauchamps Park, Bellgrove Park, Brookglen Park, Foothill Park, Gardiner Park, Kevin Moran Park, and Ravenswood Park. Sport Parks & Facilities Projects Improvement projects at the City’s sport field type parks. These sites include Congress Springs Park, El Quito Park, and West Valley Soccer Fields. Trails & Open Space Projects Joe’s Trail at Saratoga De Anza, Saratoga Village to Quarry Park Walkway and Saratoga-to-the- Sea Trail. Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 211 Funding Summary by Project Project Category & Project Name Budget Est. Full Year Actual Carryover Approved Additions Total Budget Citywide Park & Trail Projects 9211-001 - Annual Parks, Trails, Grounds, & Medians 374,829 200,829 174,000 250,000 424,000 9211-002 - Citywide Tree Replanting Program 7,030 - 7,030 - 7,030 9211-011 - Annual Mechanical Weed Abatement 125,000 25,000 100,000 - 100,000 9211-012 - Residential Tree Planting Program 55,000 55,000 - 55,000 55,000 Citywide Park &Trail Projects Total 561,859 280,829 281,030 305,000 586,030 Park Projects 9222-004 - Hakone Gardens Infrastructure 85,228 65,500 19,728 25,000 44,728 9222-008 - Hakone Gardens Pond Renovation-Phase 300,000 - 300,000 - 300,000 9233-001 - Bellgrove Park Playground Replacement 150,000 - 150,000 50,000 200,000 9251-001 - Congress Springs Park Concrete Repairs 85,000 55,820 29,180 35,000 64,180 9252-003 - El Quito Park Pickleball Courts 110,387 110,387 - CLOSED - 9252-004 - El Quito Park Community Garden 332,000 100,000 232,000 - 232,000 9xxx-xxx - Historical Museum Landscaping 100,000 9xxx-xxx - Quarry Park Parking Expansion 75,000 Park Projects Total 1,062,615 331,707 730,908 285,000 840,908 Trail & Open Space Projects 9226-005 - Quarry Park Mtc Building Utility Project 11,150 5,000 6,150 - 6,150 9274-002 - Blue Hills Elementary Ped Crossing at Union 1,515,273 155,273 1,360,000 1,800,000 3,160,000 9274-003 & 4 - Joe's Trail Phase 2 & Phase 3 394,755 394,755 - CLOSED - 9277-004 - Saratoga Village to Quarry Park Walkway1 453,811 - 453,811 1,520,000 1,973,811 9277-005 - Village Oaks Birdge Reconstruction & 30,000 30,000 - CLOSED - 9277-006 - Hakone Gardens to Quarry Prk Trail Gap 50,000 50,000 - CLOSED - 9281-005 - Park and Trail Fire Mitigation 109,344 109,344 - 349,100 349,100 Trail & Open Space Projects Total 2,564,333 744,372 1,819,961 3,669,100 5,489,061 Total Park & Trail CIP 4,188,807 1,356,908 2,831,899 4,259,100 6,915,999 2024-25 2025-26 Expenditures Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 212 Annual Parks, Trails, Grounds, & Medians Infrastructure Project No. 9211-001 Project Manager – Shawn Gardner, Public Works Manager This project annually funds infrastructure maintenance and replacement related to parks, trails, grounds, and medians to keep them beautiful and functioning properly for the enjoyment of Saratoga residents. This project is one of the priority projects identified by the City Council and receives an annual transfer of $250,000 from the General Fund, as funding permits. In 2021- 22, the City Council increased the priority project funding goal from $125,000 to $250,000. • Parks: Infrastructure at parks includes, but is not limited to, playground equipment, restroom and concessions buildings, fencing, tennis and basketball courts, playfields, drinking fountains, pathways, and parking lots. • Trails: Trail infrastructure includes pathways, signage, irrigation systems, ramps & parking lots. • Grounds: Grounds infrastructure is located at properties including the Civic Center, Saratoga-Prospect Center, Library, and Blaney Plaza. • Medians: Median infrastructure includes irrigation systems located at medians throughout the City. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 412 CIP Park & Trails 374,829 200,829 174,000 250,000 424,000 Total 374,829 200,829 174,000 250,000 424,000 Operating Budget Impact (if any): None Mid-year adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship X Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2011-12 Approved/funded 2011-12 Design/Construction Ongoing Completion Ongoing Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 213 Citywide Tree Replanting Program Project No. 9211-002 Project Manager - Shawn Gardner, Public Works Manager This ongoing project provides for the upkeep of the City’s urban forest through the planting of City trees and shrubbery, installation of irrigation for new plantings, tree maintenance, and removal of damaged trees on City property. To mitigate the loss of the urban forest, the City assesses fines for unpermitted tree removal and related violations, and then uses these funds to reforest the City. Fines provide the funding for the cost to plant new trees and shrubbery and if needed, to install irrigation to sustain the new plantings on public property. Staff sometimes complete citywide tree replanting work; however, larger-scale projects may be contracted out to tree and landscape contractors. The Citywide Tree Replanting Program offsets tree planting and related maintenance expenses that are funded through the City’s operating budget. Additionally, maintaining the City’s urban tree canopy adds to Saratoga’s attractiveness and increases its desirability. To some degree, this helps to generate higher property values and consequently higher property tax revenues received by the City. Funding Source: Tree Fine Revenue Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 421 Tree Fine 7,030 0 7,030 0 7,030 Total 7,030 0 7,030 0 7,030 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability x Other: Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction Ongoing Completion Ongoing Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 214 Mechanical Weed Abatement Project No. 9211-011 Project Managers – Bridget Cash/Martin Barajas The City of Saratoga’s Integrated Pest management Policy and Standard Operating Procedures Stipulate the City aims to reduce or eliminate the use of chemicals to the maximum extent. Mechanical weed abatement on City Trails will reduce on-going dependence on chemical herbicides. Staff will run an initial full year cycle of mechanical abatement at the Parker Ranch Trail in FY24- 25 and 25-26 Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 412 CIP Park & Trails 50,000 25,000 25,000 0 25,000 432 Park & Trails CIP Grant 75,000 0 75,000 0 75,000 Total 125,000 25,000 100,000 0 100,000 Operating Budget Impact (if any): None Mid-year budget adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement X Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability X Other: Project Milestones Identified/proposed 2024 Approved/funded 2024-25 Design/Construction Ongoing Completion Ongoing Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 215 Residential Tree Planting Program Project No. 9211-012 Project Manager – Mainini Cabute, Environmental Program Manager The City of Saratoga’s Climate Action Plan (CAP) 2030, adopted by the City Council in December 2020, recommends that the City continue to proactively increase carbon sequestration efforts to improve air quality and natural cooling through increasing tree cover in Saratoga. This Residential Tree Planting Program would be similar to the 2020 Trees by 2020 program that the City funded in 2016. This Program will require partnership with a tree supplier that will allow the City to subsidize trees purchased by private property owners in Saratoga for the purpose of planting in their front yards. If successful, this program will continue until 2030. Funding Source: General fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 412 CIP Park & Trails 55,000 55,000 0 55,000 55,000 Total 55,000 55,000 0 55,000 55,000 Operating Budget Impact (if any): None Mid-year budget adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship X Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement X Federal or State mandate Environmental Sustainability X Other: Project Milestones Identified/proposed 2024 Approved/funded 2025-26 Design/Construction Ongoing Completion Ongoing Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 216 Annual Hakone Gardens Infrastructure Improvements Project No. 9222-004 Project Manager - Poh Yee, Civil Engineer Hakone Gardens, a city-owned eighteen-acre park nestled in the foothills just outside of Saratoga Village, is maintained and operated by the Hakone Foundation, a non-profit organization that seeks to promote a deeper understanding of Japanese and general Asian culture through the preservation of the oldest Japanese-style residential garden in the Western Hemisphere. In May 2016, the City Council approved the Hakone Gardens Master Plan. During the development of the Plan a number of deferred maintenance projects that required more than simple maintenance or repairs were identified. Project examples include well pump replacement, wood damage mitigation, pest control, and garden, electrical, and lighting improvements. Initial funding for this project came from a $125,000 allocation from the CIP reserve. These funds have been used for the replacement of railings, lighting and fixtures, painting or public restrooms, and other repairs. Past improvements included the replacement of the Cultural Center deck railings. Planned improvements include the reconstruction of the Upper Wisteria Pavilion and maintenance projects identified in the master plan. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 412 CIP Park & Trails 59,390 40,000 19,390 0 19,390 422 Park-in-Lieu 25,838 25,500 338 25,000 25,338 Total 85,228 65,500 19,728 25,000 44,728 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage X Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction Ongoing Completion Ongoing Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 217 Hakone Gardens Pond Renovation – Phase I Project No. 9222-008 Project Manager - John Cherbone, Public Works Director This project would fund renovation of the Hakone Gardens Koi Pond. Hakone Gardens, a city-owned eighteen-acre park nestled in the foothills just outside of Saratoga Village, is maintained and operated by the Hakone Foundation, a non-profit organization that seeks to promote a deeper understanding of Japanese and general Asian culture through the preservation of the oldest Japanese-style residential garden in the Western Hemisphere. The project would include site clearing and demolition, excavating and grading, shotcrete preparation work, shotcrete with fibers, sealing, boulder work, accent stone materials, ADA accessibility, plumbing, drainage, irrigation, planting, wood structures, survey staking, and geotechnical inspections. The total cost for the Koi Pond is estimated to be $5 million. Phase 1 is estimated to cost $ 3.7 million. The City will pursue grant funding from intergovernmental and private sources. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 412 CIP Park & Trails 300,000 0 300,000 0 300,000 Total 300,000 0 300,000 0 300,000 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage x Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2022-23 Design/Construction Ongoing Completion Ongoing Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 218 Bellgrove Park Playground Replacement Project No. 9233-001 Project Manager – Shawn Gardner Remove and replace the playground structure at Bellgrove Park to upgrade to one that is more compliant to the current standards. The existing play structure was installed in the 1990s. Funding Source: LLA Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 422 Park-in-Lieu 150,000 0 150,000 50,000 200,000 Total 150,000 0 150,000 50,000 200,000 Operating Budget Impact (if any): None Mid-year budget adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement X Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2023 Approved/funded 2024-25 Design/Construction 2025-26 Completion 2025-26 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 219 Congress Springs Park Concrete Repairs Project No. 9251-001 Project Manager – Shawn Gardner Remove and replace concrete square, slabs in turf area and paver lips at Congress Springs Park to mitigate tripping hazards. Funding Source: Park Development Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 422 Park-in-Lieu 85,000 55,820 29,180 35,000 64,180 Total 85,000 55,820 29,180 35,000 64,180 Operating Budget Impact (if any): None Mid-year budget adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2023 Approved/funded 2024-25 Design/Construction 2024-25 Completion 2025-26 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 220 El Quito Park Community Garden Improvement Project No. 9252-004 Project Manager – Shawn Gardner This project will overhaul the dated Community Garden at El Quito Park. City staff will collaborate with the Parks and Recreation Commission to develop a new garden layout design. Remove and replace fencing, irrigation, and standardized raised planters for each plot. Create communal landscape toolshed, compost area, and updated signage. Funding Source: Park Development Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 422 Park-in-Lieu 332,000 100,000 232,000 0 232,000 Total 332,000 100,000 232,000 0 232,000 Operating Budget Impact (if any): None Mid-year budget adjustment $ amount and explanation: None City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system X Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement X Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2024 Approved/funded 2024-25 Design/Construction 2024-25 Completion 2025-26 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 221 2024-25 Preliminary Proposed Budget Capital Improvement Program Budget Request Project Name Historical Museum Landscaping CIP Category Parks and Trails Project No. 422.9224-002 Des c r i p t i o n Landscape and irrigation improvements at the Historical Park to be done after the ongoing ADA improvements are completed. The design plans have been completed as part of the ADA improvements design. Pr o j e c t f i n a n c i a l s Describe Revenue/Expenditure (Prelim Eng, Design, Construction, etc.) Revenues Expenditure s Fu n d i n g S o u r c e s Sources Amount Labor and materials 100,000 Transfers from Park Development Funds 100,000 Preliminary 2024-25 budget request 100,000 5-year projected requirements, unfunded City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Additional Resource Requirements Project Milestones/Timeline Project Manager Shawn Gardener Project identified and proposed 2023-24 Project Team Shawn Gardner, Martin Barajas City Council approved and funded Operatin g budget impacts Design 2023-24 Construction 2025-26 Completion 2025-26 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 222 Park & Trail Capital Improvement Program 2025-26 Preliminary Proposed Budget NEW - Capital Improvement Program Budget Request Project Name: Quarry Park Parking Expansion CIP Category Parks Project No. 422.9226-006 Pr o j e c t f i n a n c i a l s Describe Revenue/Expenditure (Prelim Eng, Design, Construction, etc.) Revenues Expenditures Fu n d i n g S o u r c e s Sources Amount Design and Construction 75,000 Park Development Fee 75,000 Preliminary 2025-26 budget request 75,000 5-year projected requirements, unfunded City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement X Federal or State mandate Environmental Sustainability Other: Additional Resource Requirements Project Milestones/Timeline Project Manager Shawn Gardener, Parks Manager Project identified and proposed FY2025-26 Project Team City Council approved and funded Operating budget impacts Design FY2025-26 Construction FY2025-26 Completion FY2025-26 De s c r i p t i o n Describe Project: Expand existing parking area at Quarry Park to gain approximately 10 additional parking spaces. Costs: $75,000 Funding Sources: Park Development Fee Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 223 Quarry Park Maintenance Building Utility Project Project No. 9226-005 Project Manager - Shawn Gardner, Public Works Manager This project will fund the installation of electricity and water to the Quarry Park maintenance building. Provides for additional operational services as well as lighting for security and worker safety. Funding Source: Park In-Lieu Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 422 Park-in-Lieu 11,150 5,000 6,150 0 6,150 Total 11,150 5,000 6,150 0 6,150 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2022-23 Approved/funded 2022-23 Design/Construction 2024-25 Completion 2024-25 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 224 Blue Hills Elementary Pedestrian Crossing at Union Pacific Railroad Project No. 9274-002 Project Manager - Mainini Cabute, Environmental Programs Manager The Blue Hills Pedestrian Crossing at UPRR project (formally named Guava/Fredericksburg Entrance & Railroad Crossing) will construct an at-grade pedestrian crossing connecting Fredericksburg Drive and Guava Court, which will enhance pedestrian connectivity to Blue Hills Elementary School. As part of the process of reopening a crossing, UPRR requires that cities close three existing railroad crossings. Due to the City’s inability to close three crossings, UPRR instead requires the City to upgrade pedestrian and bicycle facilities at the following four railroad crossings citywide: Glen Brae Drive, Cox Avenue, Saratoga-Sunnyvale Road, and Arroyo de Arguello. The specific upgrades at these four locations have been identified by the California Public Utilities Commission and focus on improving pedestrian and bicycle access and safety. The proposed pedestrian crossing and the four railroad crossing upgrades are all part of this project. The scope of this original contract, which began in 2016, focused mostly on the pedestrian crossing at Fredericksburg Drive and Guava Court and the four railroad crossing upgrades. Subsequently, the design work for the contract was amended to include drainage repairs and bioswales along the southside of Guava Court. However, in 2021, the City received funding from the American Rescue Plan Act (ARPA) and the stormwater improvements at Guava Court was an eligible project for funding and was therefore removed from the Blue Hills Pedestrian Crossing project. To date, the City has paid approximately $383,000 for this project, which includes design work with BKF Engineering and consulting with UPRR. To pay for the upcoming costs, such as final design work for the project and construction, the City will use two grants it recently received totaling $3 million. On June 23, 2021, the MTC Board approved the Blue Hills project to receive $1.8 million in Safe and Seamless Mobility Quick Strike Program funding. The grant requires a local match in the amount of $234,000. The grant approved projects that emphasized Project Milestones Identified/proposed Approved/funded 2013-14 Design/Construction 2023-24 & 2025-26 Completion 2025-26 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 225 Blue Hills Elementary Pedestrian Crossing at Union Pacific Railroad (continued) Project No. 9274-002 bicycle and pedestrian safety and mobility, connections to transit and projects that advance equitable mobility. The Blue Hills Pedestrian Crossing at UPRR project will connect two neighborhoods in Saratoga and allow community members, especially the Greenbrier neighborhood, to easily access Joe’s trail and various destinations by bike and on foot. A resolution receiving this grant was approved by the City Council in November 2021. In early 2023, Caltrans notified Saratoga public works staff that Saratoga had a $1.2 million allocation from the state’s Priority Legislative Budget Projects (PLBP) process. The $1.2 million funding is earmarked for pedestrian safety improvements at railroad crossings. City staff worked with Caltrans to develop a Fund Transfer Agreement and resolution, which City Council approved at its July 5, 2023 Council meeting. Staff submitted an invoice to Caltrans at the end of October 2023 and the City received the funds on November 15, 2023. Total available funding of $3,160,000 million will allow Saratoga to construct many, if not all, of the pedestrian safety improvements required by both the California Public Utilities Commission (CPUC) and UPRR. City staff is waiting on cost estimates from UPRR with hopes that this total funding will be sufficient to construct all of the improvements and complete the project. Funding Source: General Fund and Grant Funds Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 412 CIP Park & Trails 330,163 30,163 300,000 0 300,000 432 Park & Trails CIP Grant (PLBP) 1,185,110 125,110 1,060,000 0 1,060,000 432 Park & Trails CIP Grant (MTC) 1,800,000 1,800,000 Total 1,515,273 155,273 1,360,000 1,800,000 3,160,000 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship X Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement X Federal or State mandate X Environmental Sustainability Other: Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 226 Saratoga Village to Quarry Park Walkway Project No. 9277-004 Project Manager - John Cherbone, Public Works Director This project will fund the design, environmental review and construction of a walkway from Saratoga Village to Hakone Gardens and Quarry Park. When complete, this project will result in construction of a walkway from Saratoga Village, past Hakone Gardens, to Quarry Park. The project will be implemented over several phases. Phase I of the project will begin with a pathway between the Village and Hakone Gardens, phase II will extend the walkway to the Quarry Park East Entrance, and the third and final stage will continue the trail to the Quarry Park Main Entrance. Currently, only the design of phase 1 is funded. Developing a pedestrian connection from the Village to Hakone Gardens and Quarry Park will enhance and enliven Saratoga Village, as the project would help to bring foot traffic to the Village, Hakone Gardens and Quarry Park. Additionally, the project will provide a safer path of travel for pedestrians who are currently walking along the highway when the parking lot at Hakone Gardens is full. The path will also serve as a critical starting point for the Saratoga- to-Sea Trail that is part of the Santa Clara County Trail Master Plan. The Saratoga-to-Sea Trail will begin in Saratoga Village, travel up to Hakone Gardens and Quarry Park, through the existing Sanborn-Skyline and Skyline-to-the-Sea trail systems to the Pacific Ocean. In 2016-17, $50,000 was allocated from the CIP reserve and 2017-18 Council authorized an additional allocation of $100,000 from Park Development fees to fund the design of phase I of this project. Construction costs for phase I are estimated at $1.9 million. The City Council allocated $175,000 in 2019- 20, $25,000 in 2020-21, and $150,000 in 2022-23, from the CIP reserve towards construction to serve as the City’s 20 percent local match should grant funding become available. Recent Federal legislation awarded $1.52 million to support this project. Funding Source: General Fund & Grant Funds Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 412 CIP Park & Trails 230,000 0 230,000 0 230,000 422 Park-in-Lieu 223,811 0 223,811 0 223,811 432 Grant 0 0 0 1,520,000 1,520,000 Total 453,811 0 453,811 1,520,000 1,973,811 Project Milestones Identified/proposed Approved/funded 2017-18 Design/Construction 2025-26 Completion 2027-28 Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 227 Saratoga Village to Quarry Park Walkway Project No. 9277-004 (continued) Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other: Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 228 Park and Trail Fire Mitigation Project No. 9281-005 Project Manager - Shawn Gardner, Public Works Manager Drought conditions have created high fire danger within the City Wildland Urban Interface (WUI) area. The project removes brush and dead trees to create defensible space between City land and private property. Creating this defensible space will improve safety. If not completed residential areas adjacent to City properties will be subject to increased fire danger. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 412 CIP Park & Trails 109,344 109,344 0 349,100 349,100 422 Park-in-Lieu 35,905 35,905 0 0 0 Total 145,249 145,249 0 349,100 349,100 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship X Health and safety issue Public Safety X Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement X Federal or State mandate Environmental Sustainability X Other: Project Milestones Identified/proposed Approved/funded 2022-23 Design/Construction Ongoing Completion Ongoing Park & Trail Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 229 PAGE LEFT BLANK INTENTIONALLY CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 230 Facilities Capital Improvement Program Facilities Capital Improvement Program CIVIC CENTER IMPROVEMENT PAGE 9322-001 Annual Civic Theater Annual Improvements 233 9322-013 PEG Projects 235 9xxx-xxx Corporation Yard Charging Station 236 LIBRARY BUILDING 9372-001 Saratoga Library Building Exterior Maintenance 237 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 231 Facilities Capital Improvement Program Program Area Descriptions The Capital Improvement Program’s Facility Improvement Program provides for capital maintenance and improvements of the City of Saratoga’s buildings and structures. Projects in the Facility Program are classified by site to capture both funding resources and site improvement information. There are further sub-classifications by building within these sites. In summary, the Facility Improvement Program categories are: • Citywide Projects • Civic Center • Community Center • Corporation Yard • Saratoga-Prospect Center • Village Historical Buildings • Library Building Civic Center – located at 13777 Fruitvale Avenue, this site classification includes the Administration and Community Development/ Engineering buildings, Theater/ Chamber Building, and the Warner Hutton House. Community Center – located at 19655 Allendale Avenue, this site includes the Senior Center, the Adult Care Center, the Recreation Center, and the associated portables. Corporation Yard – located at 19700 Allendale Avenue, The Corporation Yard Offices, associated open bays, and the entire fenced-in parking lot complex comprise this site. Saratoga Prospect Center – located at 19848 Prospect Avenue, this site is comprised of the Grace Building, Friendship Hall, and the parking lot and grounds surrounding the buildings. Village Historical Park – located at 20450 Saratoga-Los Gatos Road, this Historical Park represents a collection of older City owned buildings in the village. This includes the Saratoga Historical Museum, the Book-Go-Round, and the McWilliams House. All three buildings are occupied under long-term leases by community-based organizations; however, the City bears some external building maintenance responsibilities. Library Building – located at 13650 Saratoga Avenue, near the corner of Saratoga Avenue and Fruitvale Avenue, and adjacent to the Heritage Orchard Park. The building is leased to the Santa Clara County Library Joint Powers Authority on a 30-year lease (effective July 2003) for use as a branch library. The City retains responsibility for the parking lot. Exterior maintenance of the building is funded through an annual allocation of $5,000 from Santa Clara County. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 232 Facilities Capital Improvement Program Funding Summary by Project Project Category & Project Name Budget Est. Full Year Actual Carryover Approved Additions Total Budget Civic Center Projects 9321-017 - Open Work Space/Office 102,400 102,400 - CLOSED - 9322-001 - Civic Theater Annual 99,323 10,000 89,323 35,000 124,323 9322-013 - PEG Projects 267,453 225,203 42,250 80,000 122,250 9xxx-xxx - Corporation Yard Charging Station - - - 150,000 150,000 Civic Center Projects Total 469,176 337,603 131,573 265,000 396,573 Library Projects 9372-001 - Saratoga Library Building Exterior Mtc 13,070 13,880 (810) 10,000 9,190 Library Projects Total 13,070 13,880 (810) 10,000 9,190 Total Facilities CIP 482,246 351,483 130,763 275,000 405,763 Expenditures 2024-25 2025-26 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 233 Facilities Capital Improvement Program Annual Civic Theater Improvements Project No. 9322-001 Project Manager – Thomas Scott, Facilities Manager The Theater groups and other local groups lease the Civic Theater for rehearsals and performances. The main two Theater groups both have three productions per year that have shows lasting approximately six weeks each. The usage by other groups are for various amounts of days. To keep the Theater in optimal operating condition and offset maintenance expenses resulting from the usage of the Theater for performances, a $2.55 per ticket surcharge is collected on each ticket sold and is then subsequently remitted to the City to fund improvements. The surcharge totals approximately $30,000 to $40,000 per year. Each year, the two groups that primarily use the Civic Theater work with staff to identify improvement priorities. Improvements are made on an Ongoing basis and in the past have included the installation of new LED lights throughout the Theater, a new lighting control system, fully accessible seating, new acoustic treatments, Lobby upgrades, and stage flooring replacement. Regular improvements to the Civic Theater ensure that it remains an attractive venue for audiences and Theater groups. The productions of the Theater groups draw visitors to Saratoga, which helps to support the local economy, as audience members often visit Saratoga restaurants and shops before or after attending shows. Most Theater improvements are performed by contractors and supervised by staff. Funding Source: Fee revenue Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 413 CIP Facility 99,323 10,000 89,323 35,000 124,323 Total 99,323 10,000 89,323 35,000 124,323 Operating Budget Impact (if any): Mid-year adjustment $ amount and explanation: Project Milestones Identified/proposed Approved/funded 2008-09 Design/Construction Ongoing Completion Ongoing CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 234 Facilities Capital Improvement Program Civic Theater Annual Improvements (continued) Project No. 9322-001 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement X Federal or State mandate Environmental Sustainability Other: CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 235 Facilities Capital Improvement Program PEG Projects Project No. 9322-013 Project Manager – Leslie Arroyo, Assistant City Manager Pursuant to Section 611 of the Communications Act, The City of Saratoga requires cable operators to set aside channels for public, educational, or governmental ("PEG") use and provide funds for equipment for local studios for these channels and operating funds to cover the expenses of operating the studios. The City receives approximately $80,000 each year in PEG funds from various cable operators. As of the end of FY 2018/19, the balance of PEG fees is estimated to be $260,800. The City has partnered with the local Saratoga Community Access Television station (KSAR) to use the funds for improvement of the local television equipment. However, the funds have accumulated to a position which may allow the City to move forward on a major project that will augment the City’s local broadcasting abilities. This project will account for the PEG funds and subsequent use if the Council identifies and approves an appropriate project at a future time. Funding Source: Fee revenue from cable operators Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 413 CIP Facility $267,453 $225,203 $42,250 $80,000 $122,250 Total $267,453 $225,203 $42,250 $80,000 $122,250 Operating budget Impact (if any): Mid-year adjustment $ amount and explanation: City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement X Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed (1) Control Booth Revision (2) Office Expansion Approved/funded 2024/25 Design/Construction Ongoing Completion Ongoing CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 236 Facilities Capital Improvement Program 2025-26 Preliminary Proposed Budget NEW - Capital Improvement Program Budget Request Project Name: Corporation Yard Charging Stations CIP Category Facilities Project No. 413.9341-003 Des c r i p t i o n Describe Project: Upgrade to electrical panel and installation of electric vehicle charging facilities at the Corporation Yard for City vehicle fleet. Costs: $150,000 Funding Sources: General Fund Pr o j e c t f i n a n c i a l s Describe Revenue/Expenditure (Prelim Eng, Design, Construction, etc.) Revenues Expenditures Fu n d i n g S o u r c e s Sources Amount Design and Construction 150,000 General Fund 150,000 Preliminary 2025-26 budget request 150,000 5-year projected requirements, unfunded City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate x Environmental Sustainability x Other: Additional Resource Requirements Project Milestones/Timeline Project Manager Rick Torres, Streets Manager Project identified and proposed FY2025-26 Project Team City Council approved and funded Operating budget impacts Design FY2025-26 Construction FY2025-26 Completion FY2025-26 Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 237 Saratoga Library Building Exterior Maintenance Project No. 9372-001 Project Manager - Thomas Scott, Facilities Manager This project funds improvements to the exterior of the Saratoga Library. The Saratoga Library is a City owned property leased by the Santa Clara County Library Joint Powers Authority. Under the current 30-year lease (effective 2003), the County is responsible for maintaining the interior of the building. However, the County agreed to pay the City $5,000 on an annual basis to oversee and perform certain maintenance work to ensure the building’s exterior is maintained in accordance with City standards. Every year these funds are used to repair and re-paint the exterior walls of the Library building under the direction of the Facilities Department. The unexpended funds are capped at $25,000. The exterior maintenance work is primarily performed by contractors and managed by staff. Performing on-going maintenance to the exterior of the Saratoga Library keeps the building in good operating condition and prevents higher costs associated with deferred maintenance. Exterior maintenance projects range from siding repairs and re-painting. In 2010-11, the southern exposure of the library was re-painted, and in 2012-13, the entire exterior was re-painted. In 2017-18, repairs and re-painting of the north and east facing walls were completed. In 2023-2024 and 2024-2025, the exterior walls will be repaired and repainted. Funding Source: Outside agency Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 413 CIP Facility 13,070 13,880 -810 10,000 9,190 Total 13,070 13,880 -810 10,000 9,190 Operating Budget Impact (if any): Mid-year adjustment $ amount and explanation: Project Milestones Identified/proposed Approved/funded Design/Construction Ongoing Completion Ongoing Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 238 Saratoga Library Building Exterior Maintenance (continued) Project No. 9372-001 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure X Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source X Community Engagement Federal or State mandate Environmental Sustainability Other:   Facilities Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 239 PAGE LEFT BLANK INTENTIONALLY Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 240 Administrative & Technology Capital Improvement Program INFORMATION TECHNOLOGY PROJECTS PAGE 9415-004 Software Technology Management 243 COMMUNITY ENHANCEMENT PROJECTS 9442-001 Landscape & Lighting District Initiation Match Program 245 9442-002 Horseshoe Landscape & Lighting 247 9443-002 ADA Transition Plan Implementation 248 9443-003 Annual Public Art Infrastructure 249 9443-004 Safe Routes to School Needs Assessment 250 9443-005 El Quito Neighborhood Improvements 251 DEVELOPMENT IMPROVEMENT PROJECTS 9451-002 General Plan and Advanced Planning Update 252 Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 241 Program Area Descriptions The Capital Improvement Program’s Administrative & Technology Improvements Program provides for major capital expenditures to improve or enhance administrative, technological, and operational systems, processes, or functions. At this point, with few projects active at one time, the Administrative & Technology Improvement Program is limited to four categories: • Information Technology Projects • Community Enhancement Programs • City Development Projects & Programs • Administrative Projects In the future, Administrative & Technology Improvements projects may also include projects for operational assessments, community surveys, or emergency operations projects. Currently, all projects and programs fall within the following category descriptions: Information Technology Projects – are comprised of projects that increase operational efficiencies through software or hardware improvements. Currently, projects in this category include the Financial System Upgrade and several document imaging projects. Communication System Projects – include projects which acquire or upgrade communication infrastructure. No projects are currently planned. Community Enhancement Programs – consist of projects that fund infrastructure or policy updates that have long-term impacts. This category includes the Secondhand Smoke Prevention Program. City Development Projects & Programs – include projects and programs which provide funding for quality-of-life enhancements, business incentives, and beautification efforts. Administrative Projects & Programs – include projects and programs which improve administrative operations or act as a funding placeholder and are not appropriately placed in a different category. Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 242 Funding Summary by Project Project Category & Project Name Budget Est. Full Year Actual Carryover Approved Additions Total Budget Information Technology Projects 9415-004 - Software Technology Management 208,086 108,090 99,997 350,000 449,997 Information Technology Projects Total 208,086 108,090 99,997 350,000 449,997 Community Enhancement Projects 9442-001 - Landscape & Lighting District Initiation 9,331 3,331 6,000 10,000 16,000 9442-002 - Horseshoe Landscape & Lighting 5,751 3,000 2,751 - 2,751 9443-002 - ADA Transition Implementation Plan 167,234 127,770 39,465 100,000 139,465 9443-003 - Annual Public Art Infrastructure 103,669 - 103,669 - 103,669 9443-004 - Safe Routes to School Needs 81,816 24,884 56,932 25,000 81,932 9443-005 - El Quito Neighborhood Improvements 134,507 - 134,507 - 134,507 9443-008 - ADA Self-assessment & Transition - - - Closed - Community Enhancement Projects Total 502,308 158,985 343,324 135,000 478,324 Development Improvement Projects 9451-002 - General Plan & Advanced Planning 351,124 316,000 35,124 1,000,000 1,035,124 Development Improvement Projects Total 351,124 316,000 35,124 1,000,000 1,035,124 Total Administrative & Technology CIP 1,061,518 583,075 478,444 1,485,000 1,963,444 Expenditures 2024-25 2025-26 Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 243 Community Development Software Technology Management Project No. 9415-004 Project Manager – Bryan Swanson, Community Development Director This project accounts for technology fee revenues and expenditures in support of community development software technology. The current fee and expenditure structure shifted from the operating budget to the capital budget to isolate the functions, clarify the nexus, and track dedicated revenues for multi- year operational expenses. In 2020-21, a separate technology fee was implemented and accounted for in the Software Technology Management project. The previous Community Development Document Management CIP project has been closed and the 2023/24 Fee Schedule updated. This CIP project funds the Community Development Department’s permit system (CentralSquare’s TRAKiT) as well as document digitization projects. Although many documents now come into Community Development in electronic form, there are still previous documents that need to be converted into a digitized format. Funding Source: Fee revenue Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 414 CIP Admin & Tech 208,086 108,090 99,996 350,000 449,996 Total 208,086 108,090 99,996 350,000 449,996 Operating Budget Impact (if any): Mid-year adjustment $ amount and explanation: Project Milestones Identified/proposed 2008 Approved/funded 2020-21 Design/Construction Ongoing Completion Ongoing Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 244 Community Development Software Technology Management (continued) Project No. 9415-004 City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source × Community Engagement Federal or State mandate Environmental Sustainability × Other: Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 245 Landscape & Lighting District Initiation Match Program Project No. 9442-001 Project Manager - John Cherbone, Public Works Director The LLD Initiation Match Program is available for new districts formed within the City of Saratoga. This project provides matching funds for initial landscaping improvements to encourage neighborhood associations to enter into a Landscape and Lighting District arrangement with the City. It also funds the initial assessment engineering and public noticing costs incurred in the formation of new LLDs. Improvements are typically made along City arterials leading into a neighborhood, thereby providing a beautiful gateway entrance. New LLDs have also been formed to fund the installation of automatic license plate readers (ALPR) in the public right of way. District assessments will fund the subsequent upkeep of the improvements, including water, lighting, and landscape maintenance costs as well as the ALPRs. This project represents a contribution of City funds to be provided to new Landscape and Lighting Districts (LLD) on a 50 percent match basis, up to $25,000, toward initial improvements to be completed at the onset of the new LLD. The program is intended to encourage residents to form a neighborhood assessment district by matching the district’s initial assessment with funds from the City, thereby enabling the quick implementation of landscape and/or lighting improvements within a newly formed district. To date, the program has supported the development of the following new districts; Allendale, Covina, and Brookglen, with improvements including entryway beautification, landscaping, signage, lighting, and irrigation. It has also supported the initiation of several new LLDs formed for the purpose of funding installation and annual costs of ALPRs in neighborhoods including Saratoga Wood, Gardiner Park, Lower Pierce, Burgundy, Golden Triangle and Austin-Bainter. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 414 CIP Admin & Tech 9,331 3,331 6,000 10,000 16,000 Total 9,331 3,331 6,000 10,000 16,000 Project Milestones Identified/proposed Approved/funded 2016-17 Design/Construction Ongoing Completion Ongoing Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 246 Landscape & Lighting District Initiation Match Program (continued) Project No. 9442-001 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 247 Horseshoe Landscape & Lighting District Beautification Project Project No. 9442-002 Project Manager - John Cherbone, Public Works Director This project funds minor beautification projects within the Horseshoe Lighting and Landscaping District. During Fiscal Year 2014/15, the City received payment from a cellular service provider as a result of the installation of a cell phone tower within the Horseshoe Landscaping and Lighting District. The provider made initial improvements, including planting trees to screen the cellular site equipment, and agreed to pay the City for landscape maintenance. This project is funded by a contribution from a cellular service provider in the amount of $25,000. When the available funds are exhausted, the continued maintenance costs will be budgeted in the Parks Operating Budget. This will include water usage bills to SJWC for the irrigation. Funding Source: One-time private funds Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 414 CIP Admin & Tech 5,751 3,000 2,751 0 2,751 Total 5,751 3,000 2,751 0 2,751 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source x Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2015-16 Design/Construction Ongoing Completion Ongoing Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 248 ADA Transition Plan Implementation Project No. 9443-002 Project Manager - John Cherbone, Public Works Director There are a number of regulations that help ensure people with disabilities can access buildings, parks, parking, and other facilities. For example, there are specifications establishing minimum ratios of accessible parking spaces in parking lots and requirements for minimum width for parking spaces and access aisles to provide individuals in wheelchairs or with mobility limitations with sufficient room to exit or enter vehicles. This project (formally named Citywide Accessibility Needs Assessment) includes assessment of the City’s compliance with accessibility requirements at City parking lots, (including those owned or leased by the City) and traffic signals and subsequent implementation of modifications as needed to bring an identified areas into compliance. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 414 CIP Admin & Tech 167,234 127,770 39,464 100,000 139,464 Total 167,234 127,770 39,464 100,000 139,464 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed Approved/funded 2018-19 Design/Construction 2022-23 & 2023-24 Completion Ongoing Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 249 Annual Public Art Infrastructure Project No. 9443-003 Project Manager – Leslie Arroyo, Assistant City Manager This priority capital project would fund various public art projects in the City. In 2016, the City Council established a public art committee to make recommendations related to the City’s public art efforts. Since then, the Committee was suspended and the Public Art Commission was formed to advise the City Council on public art policies, budgets, plans, procedures, and projects, including major efforts that could be funded through the Annual Public Art Infrastructure project. In December 2023, the City Council voted to disband the Public Art Commission and merge it with the Library and Community Engagement Commission to now be called the Library and Public Art Commission. This capital project will fund a variety of public art initiatives and any public art proposals that may arise. The project receives an annual allocation of $25,000 as a priority project. Funding Source: General Fund Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 414 CIP Admin & Tech 103,669 0 103,669 0 103,669 Total 103,669 0 103,669 0 103,669 Operating Budget Impact (if any): Mid-year adjustment $ amount and explanation: City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2019 Approved/funded 2019-20 Design/Construction Ongoing Completion Ongoing Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 250 Safe Routes to School Needs Outreach Project No. 9443-004 Project Manager - Mainini Cabute, Environmental Programs Manager This project will fund a traffic engineering plan which would include several elements aimed to promote bicycling and walking as the preferred travel modes to school. Project elements for this design plan include: • Conceptual plan drawings of traffic safety improvements near schools, prioritize based on safety, to promote pedestrian and bike travel. • School maps, developed for each school, to show the distribution of students around the community, identifying corridors that should be improved. • An enforcement evaluation that reviews and improves signage and/or markings to allow for effective enforcement. In addition, the project includes efforts in outreach and education aimed to inform residents of safe pedestrian and bicycle rider practices and routes. The City receives a community outreach grant from the VTA for education and encouragement of bicycle and pedestrian activities and projects. The grant allocation varies from year to year. To date, the City has expended $33,436 of the allocations received. Funding Source: General Fund & Grant 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 414 CIP Admin & Tech 14,932 0 14,932 0 14,932 434 Admin & Tech CIP Grant 66,884 24,884 42,000 25,000 67,000 Total 81,816 24,884 56,932 25,000 81,932 Operating Budget Impact (if any): Mid-year adjustment $ amount and explanation: City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety x Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Design 2022-23 Education and Outreach 2023-24 Completion 2025-26 Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 251 El Quito Neighborhood Improvements Project No. 9443-005 Project Manager - John Cherbone, Public Works Director This project will fund future projects within the El Quito Neighborhood in the City of Saratoga. In 2019-20, the City dissolved the El Quito Landscape & Lightning District and incorporated the neighborhood’s maintenance within the City’s normal operations. A portion of the funds in the district is set aside in this project for future projects within this area. Funding Source: One-time funds from the El Quito Landscape & Lighting District dissolution Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 414 CIP Admin & Tech 134,507 0 134,507 0 134,507 Total 134,507 0 134,507 0 134,507 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship x Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure x Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement x Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2019-20 Approved/funded 2019-20 Design/Construction Ongoing Completion Ongoing Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 252 General Plan & Advance Planning Update Project No. 9451-002 Project Manager – Bryan Swanson, Community Development Director Although the General Plan 2040, which includes the Housing Element, the Circulation Element, Open Space Element, Land Use Element, and Safety Element will be completed by June 30, 2024, fees are still being collected for the next General Plan Update. The General Plan and Advanced Planning policy document contains approved long-range policies of acceptable land uses for the city. Each city adopts and periodically updates its General Plan and Advanced Planning policy documents to guide the long-term growth and land development of the community. The General Plan and Advanced Planning policy documents are the foundation for establishing goals, purpose, zoning, and activities to ensure compatibility and continuity throughout the city. As the legislature requires a city’s zoning and subdivision approvals be consistent with their adopted General Plan, updates to the General Plan must be made in conjunction with development related code changes. Development fees are collected to provide the funding needed to meet this requirement as a result of changing land uses in the community. Government code dictates that the General Plan contain seven mandatory elements: land use, circulation, housing, conservation, open space, noise, and safety. As each of these elements require technical expertise, consultants and attorneys are retained to assist with the updates. Additionally, the State Planning Law also allows for specific plans to serve as “mini-General Plans” for predesignated and defined planning areas such as the City’s Hillsides or The Village. Most communities update their Specific Plans overtime in conjunction with periodic updates of their General Plan and sub-elements. Funding Source: Fee revenue Project Milestones Identified/proposed Approved/funded 2014-15 Design/Construction Completion Ongoing Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 253 General Plan & Advance Planning Update (continued) Project No. 9451-002 Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 414 CIP Admin & Tech 351,124 316,000 35,124 1,000,000 1,035,124 Total 351,124 316,000 35,124 1,000,000 1,035,124 Operating Budget Impact (if any): Mid-year adjustment $ amount and explanation: City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source Community Engagement Federal or State mandate x Environmental Sustainability Other: Administrative & Technology Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 254 PAGE LEFT BLANK INTENTIONALLY ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 255 ARPA SLFRF Capital Improvement Program STORMWATER AND STORMDRAIN PROJECTS PAGE 9142-025 Storm Drain Master Plan 258 9142-029 Saratoga Village Water Quality Improvement Plan 259 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 256 Program Area Descriptions The Capital Improvement Program’s ARPA/SLFRF Capital Improvement Program provides for Public Works Projects that are funded by the American Rescue Plan Act’s (ARPA) $7.2 million allocation to Saratoga. Eight projects are currently funded through ARPA and are expected to be completed either in fiscal year 2025-26 or 2025-26. The projects include Park Sewer Lateral Replacement Upgrades, a Storm Water Master Plan and a Water Quality Improvement Plan all designed to improve Saratoga’s infrastructure. A complete set of current projects is below: • Park Sewer Lateral Replacement Upgrades • Storm Drain Master Plan • Stormwater Pollution Prevention Program Compliance (SWPPP) • Saratoga Village Water Quality Improvement Plan • City Hall Sustainable Landscape Beautification & Demonstration Project • Guava Court Improvements • Monte Vista Storm Drainage Improvements • Historical Park Storm Drainage Improvements ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 257 Funding Summary by Project Project Category & Project Name Budget Est. Full Year Actual Carryover Approved Additions Total Budget ARPA/SLFRF Projects 9142-024 Park Sewer Lateral Replacement 415,470 415,470 - Closed - 9142-025 Storm Drain Master Plan 81,171 40,000 41,171 - 41,171 9142-028 Stormwater Pollution Prevention (SWPPP)87,514 87,514 - Closed - 9142-029 Saratoga Village Water Quality Imp. Plan 4,378,787 2,500,000 1,878,787 - 1,878,787 9142-031 City Hall Sustainable Landscape Project 11,000 11,000 - Closed - 9142-032 Guava Court Improvements 27,019 27,019 - Closed - 9142-033 Monte Vista Storm Storm Drain Imp.6,200 6,200 - Closed - 9142-034 Historical Park Storm Drain Imp.97,432 97,432 - Closed - ARPA/SLFRF Projects Total 5,104,592 3,184,634 1,919,958 - 1,919,958 Expenditures 2024-25 2025-26 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 258 Storm Drain Master Plan Project No. 9142-025 Project Manager - Emma Burkhalter, Associate Engineer Stormwater infrastructure is located throughout the City. This project updates the Stormwater Infrastructure Master Plan by determining the condition, age, type, and accurate location of all storm drains, drain inlets, outfalls, and other storm drain facilities operated and maintained by the City. Most of the City’s stormwater infrastructure is between 50 and 100 years old. The Stormwater Master Plan provides accurate information to manage the system’s operational integrity through a proactive infrastructure program. Revenue sources include federal funds advanced by the Department of Treasury under the State and Local Fiscal Recovery Funds (SLFRF/ARPA) in 2021-22 and 2022-23 and the General Fund for City staff project management, as necessary. The Stormwater Master Plan Project is one of five phased and integrated stormwater infrastructure projects totaling $7.2 million. Funds may be reallocated between phases, as necessary, based on project design and bids. Funding Source: American Rescue Plan Act’s State and Local Fiscal Relief Fund (ARPA/SLFRF) Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 435 ARPA 81,171 40,000 41,171 0 41,171 Total 81,171 40,000 41,171 0 41,171 Operating Budget Impact (if any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue Public Safety Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement × Community Heritage Availability of external funding source × Community Engagement Federal or State mandate Environmental Sustainability Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Design/Construction Ongoing Completion 2025-26 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 259 Saratoga Village Water Quality Improvement Plan Project No. 9142-029 Project Manager - Mainini Cabute, Environmental Programs Manager This project will repair, resize, remove, and replace storm sewers, and additional types of stormwater infrastructure improvements to the City’s stormwater collection and treatment systems in the Village to reduce parking district surface contaminants in stormwater runoff that discharges into Saratoga Creek. This project will improve water quality in Saratoga and will fulfill State mandates. If not completed, the City would be out of compliance with State Water permit requirements. Stormwater treatment in the Village Parking districts also benefit regional water quality for approximately 8 miles across the Santa Clara Valley, including through the cities of San Jose and Santa Clara, before entering the San Francisco Bay. Anticipated revenue sources include SLFRF/ARPA and the General Fund for City staff project management, as necessary. The Saratoga Village Water Quality Improvement Plan is one of five phased and integrated stormwater infrastructure projects totaling $7.2 million. Funds may be reallocated between phases, as necessary, based on project design and bids. Funding Source: American Rescue Plan Act’s State and Local Fiscal Relief Fund (ARPA/SLFRF) Expenditure Budget 2024-25 2025-26 Fund Available Budget Est. Full Year Actual Est. Carryover Proposed Budget Est. Total Budget 435 ARPA 4,378,787 2,500,000 1,878,787 0 1,878,787 Total 4,378,787 2,500,000 1,878,787 0 1,878,787 Operating Budget Impact (If any): none Mid-year adjustment $ amount and explanation: none City Council Adopted Strategic Goals & Priorities CIP Priority Factors City Leadership & Fiscal Stewardship Health and safety issue x Public Safety X Imminent failure of structure/system Facilities & Infrastructure × Short-term cost of repair vs. long-term cost of replacement Community Heritage Availability of external funding source x Community Engagement Federal or State mandate x Environmental Sustainability x Other: Project Milestones Identified/proposed 2021-22 Approved/funded 2021-22 Design/Construction 2023-24 Completion 2025-26 ARPA SLFRF Capital Improvement Program CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 260 PAGE LEFT BLANK INTENTIONALLY Supplementary Budget Information CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 261 INTRODUCTION The Supplementary Section of the budget includes information that enhances the usability of the budget document as a policy document, financial plan, operating guide, and communication tool. Starting in 2022-23, City staff initiated a budget document refresh to embrace recent trends in budget documents that serve to improve accessibility and understanding of city finances for those less familiar with government operations or accounting. We strive for continuous improvement and work to improve this document so that it is user-friendly and allows readers to easily navigate to various sections and relevant external documents using hyperlinks. With the understanding that printed documents do not benefit from hyperlinks, City staff continues to incorporate best practices in budget communication by focusing on opportunities to effectively communicate the budget with both paper and electronic formats. The 2025-26 budget builds on the success of past budgets by continuing the use of tables and charts to allow readers to clearly view financial details and trends. Visuals placed throughout the document help to showcase the City's services and highlight Saratoga's unique character. Supplementary Budget Information CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 262 PAGE LEFT BLANK INTENTIONALLY CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 263 Accounting and Budgetary Structure ACCOUNTING AND BUDGETARY STRUCTURE CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 264 Accounting and Budgetary Structure FUND DESCRIPTIONS The basic accounting and reporting entity for the City of Saratoga is a fund. A fund is a fiscal and accounting entity used to record all financial transactions related to the specific purpose for which the fund was created. Funds are established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Funds used in government are classified into three broad categories: governmental, proprietary, and fiduciary. Governmental funds include activities usually associated with a typical state or local government's operations (public safety, general government activities, etc.). Proprietary funds are used in governments to account for activities often found in the private sector (such as utilities, stadiums, or golf courses). Trust and Agency funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent. The City’s various funds are grouped in fund types and categories as follows: GOVERNMENTAL FUNDS Includes activities usually associated with governmental entity operations, including public safety, planning and building services, parks and public works, and general administrative functions. General Fund The General Fund serves as the City’s primary operating fund. All general tax revenues and other receipts not allocated by law or some other contractual agreement to other funds are accounted for in the General Fund. Expenditures of this fund include the general operating expenses traditionally associated with governments such as city administration, development services, public works, and public safety. Special Revenue Funds Special Revenue Funds are used to account for revenues that are legally restricted to expenditures for specific purposes. The City of Saratoga has the following type of Special Revenue Funds: Special Assessment District Funds – Saratoga currently has 32 special assessment districts which voted to have the City provide oversight and maintenance of trees, landscaping, irrigation systems, and lighting systems in neighborhood and commercial areas. Separate funds are established to account for each district. Debt Service Funds Debt Service Funds are used to account for the acquisition of resources and the payment of long-term debt on City obligations. The City has the following Debt Service Funds: • 2001 Series General Obligation Bond Fund – established to account for the obligation incurred under the citizen approved 2001 General Obligation Bond debt for the Library remodel. • 2018 Arrowhead Community Facility District (CFD) Bond Fund – established to account for the obligation incurred by the Arrowhead CFD to fund water infrastructure improvements for the 39 properties within the District. Capital Project Funds Capital Project Funds are used to account for the acquisition, construction, and improvement of capital infrastructure. The City budgets and accounts for capital projects in: • Capital Project Funds – established to provide resources for capital projects funded from accumulated reserves and designated capital revenues. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 265 Accounting and Budgetary Structure • Development Impact Funds – accounts for revenues restricted for specific capital project uses. • Grant Project Funds – budgets and accounts for projects funded in whole or in part by grant revenues. • Gas Tax Fund – budgets and accounts for revenues and expenditures pertaining to the maintenance and construction of City Streets. PROPRIETARY FUNDS Proprietary funds are structured to impose fees or charges upon those who use their services. There are two classifications of proprietary funds: Enterprise Funds, and Internal Service Funds. • Enterprise Funds – are used to account for activities that are operated in a manner similar to a private business enterprise, where the costs of the goods are to be financed or recovered primarily through external user charges. The City of Saratoga does not currently provide services or activities (e.g. golf course or utility service) which would be accounted for through Enterprise Funds. • Internal Service Funds – the City utilizes Internal Service Funds to provide centralized cost centers for shared expenses and services in order to efficiently track costs and manage resources. Costs are allocated back to operational programs and users based on usage to better reflect the full cost of operations. Internal Service Funds Used to account for services provided to departmental programs by City-wide administered programs and staff. The City has several of these types of funds: • Liability/Risk Management Insurance Fund – Accounts for insurance premiums, self-insured portion of claims, and administrative costs associated with settling claims. Charges are allocated to programs based upon liability risk and claim occurrence history. • Worker's Compensation Insurance Fund - Accounts for insurance premiums, self-insured portion of claims, and administrative costs associated with settling claims. Charges made to operating departments are based on liability risk and claim occurrence history. • Office Support Services Fund – Photocopy equipment, postage and bulk mail meter expenses are controlled at one source point and expended to the departments as goods or services are utilized. • Information Technology (IT) Services Fund – Information Technology Services supports the delivery of technology-based services and infrastructure, including desktop support, network systems, technology upgrades and initiatives, communication systems, and associated IT equipment. • Vehicle & Equipment Maintenance Fund - Accounts for the cost of operating and maintaining vehicles and equipment used for service operations in various City departments. • Facility Maintenance Fund – Accounts for operational costs associated with building maintenance. Includes 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 departments over the asset’s life span, reflective of usage. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 266 Accounting and Budgetary Structure • IT Equipment Replacement Fund – Established to accumulate funding for the replacement of information technology equipment. Replacement costs are charged to departments over the asset’s lifespan, reflective of usage. • Furniture, Fixtures and Equipment (FFE) Replacement Fund – Established to accumulate funding for the replacement of facility furniture, fixtures, and equipment. Replacement costs are charged to departments over the asset’s lifespan, reflective of usage. FIDUCIARY FUNDS Fiduciary Funds are used to account for assets held by the City acting in a fiduciary capacity for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances and other governing regulations. There are two categories of fiduciary funds: Trust, and Agency. Trust Funds Trust Funds account for assets held by the City in a trustee capacity where the City oversees the use of resources in accordance with formal trust agreements. The City does not currently administer this fund type. Agency Funds Agency funds account for assets held in the capacity of an agent for individuals, governmental entities, and non-public organizations. The City does not direct fiscal or operational activities, just receives and disburses funds per direction from the entity’s management. For this reason, these funds are not included in the City budget document but may be included in the City’s Annual Comprehensive Financial Report at the direction of the City’s Auditors. • West Valley Stormwater Authority – Beginning July 1, 2018, the City began acting as the fiscal agent for the West Valley Stormwater Authority - formerly West Valley Clean Water Program Authority. This is an ongoing arrangement to support the joint powers authority (JPA) formed by the Town of Los Gatos and the Cities of Campbell, Monte Sereno and Saratoga to collectively manage the Clean Water Program and the Non-Point Pollution Control Program efforts. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 267 Accounting and Budgetary Structure BUDGETARY FUND STRUCTURE LIST OF PROGRAMS PROPRIETARY FUNDS FIDUCIARY FUNDS DEPARTMENTS General Fund Special Revenue Capital Improvement Debt Service Internal Service Funds Trust / Agency Council & Commissions  City Manager  Administrative Services  Community Development  Public Works  Community Services  Public Safety  Non-Departmental  GOVERNMENTAL FUNDS CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 268 Accounting and Budgetary Structure General Fund (Major Fund )Special Revenue Funds Debt Service Fund Capital Funds (Major Fund) Primary Operating Fund Landscape & Lighting District Funds Bond Repayment Fund Capital Improvement Programs 111 General Fund 311 GO Bond Debt Street Improvements 411 City Funded CIP 431 Grant Funded CIP 481 Gas Tax Funded CIP Park Improvements 412 City Funded CIP 432 Grant Funded CIP 421 Tree Fine Funded CIP 422 Park In Lieu Fund CIP Facility Improvements 413 City Funded CIP 433 Grant Funded CIP Admin & Technology 414 City Funded CIP 434 Grant Funded CIP ARPA 435 Grant Funded CIP Internal Service Funds Enterprise Funds Trust Funds Agency Funds None None Insurance Funds 611 Risk Management 612 Workers Comp Operation & Maintenance 621 Office Support 622 IT Services 623 Vehicle & Equip Mtc 624 Facility Maint Asset Replacement Funds 631 Veh & Equip Rplcmt 632 IT Equip Rplcmt 633 Facility FFE Rplcmt Joint Powers Authority 713 West Valley Clean Water Authority Agency Fund is not included in the City budget document GOVERNMENTAL FUNDS 32 Assessment District Funds Fiscal Agent Programs 361 Arrowhead Community Facility District Bond Debt Operational and Asset Funding Programs PROPRIETARY FUNDS FIDUCIARY FUNDS CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 269 Accounting and Budgetary Structure LIST OF FUNDS GENERAL FUND .......................................................................................................................................... 111 SPECIAL REVENUE FUNDS LIGHTING DISTRICT Sarahills Lighting ................................................................................................................................ 233 LANDSCAPE DISTRICTS Arroyo de Saratoga Landscape .......................................................................................................... 241 Bonnet Way Landscape ..................................................................................................................... 242 Carnelian Glen Landscape ................................................................................................................. 243 Cunningham/Glasgow Landscape...................................................................................................... 244 Fredericksburg Landscape ................................................................................................................. 245 Greenbriar Landscape ........................................................................................................................ 246 Kerwin Ranch Landscape ................................................................................................................... 247 Leutar Court Landscape ..................................................................................................................... 248 Manor Drive Landscape ..................................................................................................................... 249 McCartysville Landscape .................................................................................................................... 251 Prides Crossing Landscape ................................................................................................................ 252 Saratoga Legends Landscape ............................................................................................................ 253 Sunland Park Landscape ................................................................................................................... 254 Tricia Woods Landscape .................................................................................................................... 255 Allendale Landscape .......................................................................................................................... 256 Covina Landscape .............................................................................................................................. 257 LANDSCAPE & LIGHTING DISTRICTS Beauchamps Landscape & Lighting ................................................................................................... 271 Bellgrove Landscape & Lighting ......................................................................................................... 272 Gateway Landscape & Lighting .......................................................................................................... 273 Horseshoe Landscape & Lighting....................................................................................................... 274 Tollgate Landscape & Lighting ........................................................................................................... 276 Westbrook Landscape & Lighting ....................................................................................................... 278 Brookview Landscape & Lighting ............................................................................................... 279 Automatic License Plate Reader (ALPR) Districts Saratoga Woods .................................................................................................................................. 280 Gardiner Park ....................................................................................................................................... 281 Lower Pierce ........................................................................................................................................ 282 Golden Triangle ................................................................................................................................... 283 Burgundy .............................................................................................................................................. 284 Austin Bainter ....................................................................................................................................... 285 Padero.................................................................................................................................................. 286 Glen Una .............................................................................................................................................. 287 Quito Oaks ........................................................................................................................................... 288 STORM WATER MAINTENANCE DISTRICTS Hill Avenue Storm Water District ........................................................................................................ 291 Paramount Court Storm Water District ............................................................................................... 292 INTERNAL SERVICE FUNDS Risk Management / Liability Fund ...................................................................................................... 611 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 270 Accounting and Budgetary Structure Workers Compensation Fund ............................................................................................................. 612 Office Support Services Fund ............................................................................................................. 621 Information Technology Services Fund .............................................................................................. 622 Vehicle & Equipment Maintenance Fund ........................................................................................... 623 Facility Maintenance Fund .................................................................................................................. 624 Vehicle & Equipment Replacement Fund ........................................................................................... 631 IT Equipment Replacement Fund ....................................................................................................... 632 Facility Furniture, Fixture, Equipment (FFE) Replacement Fund ....................................................... 633 DEBT SERVICE FUNDS 2011 Series G.O. Bonds Debt Service Fund ...................................................................................... 311 2018 Arrowhead CFD Bond Debt Service Fund ................................................................................ 361 CAPITAL PROJECT FUNDS Capital Improvement Fund – Streets Projects .................................................................................... 411 Capital Improvement Fund – Park and Trail Projects ......................................................................... 412 Capital Improvement Fund – Facility Improvement Projects .............................................................. 413 Capital Improvement Fund – Administrative & Tech Projects ............................................................ 414 Tree Fund ........................................................................................................................................... 421 Park-in-Lieu Fund ............................................................................................................................... 422 Streets Grant Fund ............................................................................................................................. 431 Park & Trail Grant Fund ...................................................................................................................... 432 Facility Improvements Grant Fund ..................................................................................................... 433 Administrative & Technology Grant Fund ........................................................................................... 434 American Rescue Plan Act (ARPA SLFRF) Capital Fund.................................................................. 435 Gas Tax Fund .................................................................................................................................... 481 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 271 Accounting and Budgetary Structure LIST OF PROGRAMS GENERAL FUND Council & Commissions City Council ....................................................................................................................................... 1101 Commissions .................................................................................................................................... 1201 City Manager’s Department City Manager’s Office ....................................................................................................................... 2101 City Clerk .......................................................................................................................................... 2201 Public Information Office .................................................................................................................. 2401 Administrative Services Department Finance ............................................................................................................................................. 3101 Human Resources ............................................................................................................................ 3301 Administrative Services .................................................................................................................... 3401 Community Development Department Development Services ...................................................................................................................... 4101 Advanced Planning ........................................................................................................................... 4102 Code Compliance ............................................................................................................................. 4103 Building & Inspection Services ......................................................................................................... 4201 Public Works Department General Engineering ........................................................................................................................ 5101 Development Engineering ................................................................................................................ 5102 Environmental Services .................................................................................................................... 5103 Streets & Storm Drains ..................................................................................................................... 5201 Parks & Landscape Maintenance ..................................................................................................... 5301 Community Services Department Recreation Services ......................................................................................................................... 6101 Facility Rentals ................................................................................................................................. 6201 Community Engagement .................................................................................................................. 6103 City Events ........................................................................................................................................ 6301 Community Grants ............................................................................................................................ 6302 Community Events............................................................................................................................ 6303 Public Safety Public Safety Services ...................................................................................................................... 7101 Emergency Preparedness ................................................................................................................ 7102 Non-Departmental General Administration ..................................................................................................................... 8101 Legal Services .................................................................................................................................. 8202 Emergency Operation Claims ........................................................................................................... 8901 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 272 Accounting and Budgetary Structure INTERNAL SERVICE PROGRAMS Administrative Services Department Office Support ................................................................................................................................... 3102 Information Technology Services ..................................................................................................... 3201 IT Equipment Replacement .............................................................................................................. 3202 Risk Management / Liability .............................................................................................................. 3501 Workers Compensation .................................................................................................................... 3601 Community Development Department Facility Maintenance ......................................................................................................................... 4401 Facility (Furniture, Fixture, and Equipment) FFE ............................................................................. 4402 Public Works Vehicle & Equipment Maintenance................................................................................................... 5202 Vehicle & Equipment Replacement .................................................................................................. 5203 SPECIAL REVENUE FUNDS Public Works Assessment Districts ........................................................................................................................ 5302 DEBT SERVICE FUNDS Non-Departmental 2011 Series G.O. Bonds Debt Service ............................................................................................. 8601 2018 Arrowhead CFD Bond Debt Service ........................................................................................ 8602 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 273 Financial Planning FINANCIAL PLANNING CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 274 Financial Planning Overview City staff provide City Council and the community with a multi-year financial forecast as part of the annual budget kickoff in the third quarter of the fiscal year which can be found here. The following section summarizes the methodology employed in the annual long-range plan development. This first section of the forecast process is focused on the General Fund, the City’s primary operating fund. The forecast sections then move to focus on the other funds separately, which helps to provide clarity to the individual components and operating basis of the City’s financial structure. These funds include Capital Improvement Funds, Internal Service Funds, Special Revenue Funds, and Debt Service Funds. General Fund The 2025-26 budget process continued a multi-year approach to addressing a narrowing gap between revenues and expenditures primarily due to slowing property tax growth rates and increases in the cost of goods and services. To facilitate budget development, City staff provided an updated multi-year forecast as discussed below. The multi-year General Fund Forecast looks forward three to five years, typically under static assumptions, using prior year actuals, trends, known future changes, and the current year’s forecast as the base. The forecast does not project future operational changes as those are the prerogative of City Council and management. Instead, it provides revenue and expenditure data based on trend analysis, new data impacting trends, and relatively conservative forward-looking assumptions. The following graph shows the General Fund three-year forecast, using 2025-26 budget as the base year: Developing the five-year forecast for the 2025-26 budget cycle was challenging, as several factors made historical trends unreliable. The pandemic caused unusual revenue fluctuations, and high inflation has 20.0 25.0 30.0 35.0 40.0 45.0 Operating Expense Op & Capital Expense Revenues In ( $ mi l l i o n s ) CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 275 Financial Planning complicated predictions for both revenues and expenditures. Despite these challenges, the forecast indicates that annual property tax growth is slowing from pandemic highs of 8% to a more typical rate of about 5.5%. The 2025-26 budget assumes 5.5% property tax growth, with 5.7% projected for future years based on the 15-year average. The purpose of the annual forecast is to act as a guide to identify potential financial challenges requiring attention in the near future. For instance, a negative net revenue amount in an out-year does not reflect what will happen, but rather indicates that projected revenue is not keeping pace with projected expenditure growth, and that considerations for future operational adjustments and prioritization of scarce resources are required. The General Fund receives tax revenues, fees and service charges, and receipts not allocated by law or contractual agreement to other funds. Expenditures of this fund include operating expenses traditionally associated with governments such as city administration, legal oversight, development services, public works maintenance, and public safety. Overall, the General Fund accounts for and represents the primary operational activities of the City and is the focus for long-term planning. Other funds have specific purposes and are therefore not included in this forecast. To maintain clarity in the City's main operational functions, a summary-level forecast for these other funds is now included separately, following the General Fund forecast, in accordance with GFOA requirements. General Fund Revenue Assumptions Property Taxes A number of Property Tax accounts make up the broadly termed ‘Property Tax Revenue’ but only two of the taxes make up the majority of the revenue. The 1 percent ad valorem tax (Secured Property Tax) typically accounts for 60-65 percent, while Property Tax In-Lieu-of-VLF accounts for about 25 percent of the revenue. Property-Tax-In-Lieu-of VLF is budgeted conservatively as payments are estimates based on prior year information rather than current year growth. If the prior year’s estimates were low, a positive true- up payment is paid with the following year’s revenues – and a negative true-up if payments were too high. Therefore, In-Lieu Property Tax Revenue growth trends loosely mirror Secured Property Tax revenue growth, with variation caused by the true-ups. Property Transfer Tax and Supplemental Tax receipts will fluctuate with housing sales as Supplemental Tax revenue comes from mid-year assessed valuation increases, and Transfer Tax revenues from the preparation of document fees. Increases and decreases in these revenues indicate growth in Secured Property Tax the following year. Santa Clara County provides the City with updated assessment roll information on a monthly basis, which is used to further refine the estimate throughout the year. An ad valorem 1 percent tax based on a property owner’s taxable value – is slow to react to economic changes. This is due to the time period in which property assessment values are set, to when the tax payments are made about a year later. It takes a significant downturn trend to occur countywide before a property’s assessment value is reassessed lower. Hence, the City’s property tax revenue stream is not impacted until at minimum a year later, and often two. This delay also works in reverse with revenues taking longer to reflect economic recovery. At the same time, related property tax revenues such as Transfer Tax and Supplemental Tax are immediately reactive to economic shifts and can differ significantly year to year. This combination of slow and fast reactions helps to mitigate Property Tax revenue swings and allows for some lead time to prepare for revenue decreases. Though, to be prudent, Property Tax forecast projections are based on broader economic data as Saratoga data is heavily weighted toward higher-end homes that may not accurately reflect the wider economic view for the future of property values. That said, the Saratoga housing market is strong as buyers fight for a small CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 276 Financial Planning pool of inventory for recently remodeled homes in the City’s top-rated school districts. While this phenomenon is expected to slow, the property tax base will increase based on past purchases. With these recent valuation gains, ownership changes will noticeably increase the taxable value, and any new construction and remodeling improvements will also increase a home’s value. These will contribute to property assessment increases during the upcoming years as the economy settles. Since the end of the recession in 2012, rapid property tax growth resulted in excess educational revenue augmentation funds (ERAF) distributions to Santa Clara County cities, and in turn, to revenue growth. This revenue stream has been unpredictable in the past, is dependent on schools and community colleges receiving more funding than needed to meet their general fund obligations. Recently the state has attempted to claw back excess ARF funds, and Santa Clara County has filed suit as a result. Although excess ERAF is included in the budget and future forecast years, it has been called out as a potential risk that may change in the future. A tentative trial date for the Excess ERAF litigation is set for September 30, 2025. The State Controller’s Office (SCO) has not yet begun a property tax audit of Santa Clara County, as it is currently auditing San Francisco; the earliest our county may be audited is late 2025 or early 2026. The financial risk to the City will depend on the results of the Santa Clara County audit, but based on Marin County’s recent audit findings, the estimated risk is 20%. Sales Tax Sales Tax revenue distributions from the State are impacted by economic conditions and more quickly reflect economic trends. This revenue is distributed in several ways, with estimated payments, true-ups, and allocation corrections, making revenue projections unreliable. And because the City’s small revenue base can unexpectedly fluctuate by more than 10 percent year to year, the City depends upon our Sales Tax Consultants to closely monitor receipts and provide us with reasonable estimates. Sales tax projections for 2025-26 are down slightly with declines in fuel and food services, reflecting changes in consumer spending. Transient Occupancy Tax (TOT) Saratoga’s TOT reacts quickly to economic changes, as illustrated in the 2008 economic downturn and the 2021 pandemic, where revenues in this category contracted suddenly and sharply. The pandemic shut down travel overnight, and all jurisdictions experienced an immediate loss of TOT revenue. As public health mandates eased, TOT rebounded, with domestic travel and staycations fueling the early recovery. TOT recovered in 2021-22, and the TOT forecasts assume relatively flat growth based on recent trends. Business License Tax Business License Tax revenue comprises two revenue streams: 1) the actual license portion and 2) for contractors, a supplemental tax that is a percentage of any building permit’s valuation they pull during the year. The license portion of the Business License Tax can fluctuate by 10 percent year over year with normal business growth and decline. Still, over the long term, Business License Fee revenue typically holds steady. The license fee applies to a fixed universe of retail and out-of-town businesses, meaning that any growth is from home-based businesses. 2025-26 and future year business license forecasts assume relatively flat growth. The Supplemental Business License Tax portion has different trends as revenues depend not only on the building level but also on the type and value of building permits. While valuations continue to increase as the cost of building increases, projections reflect small increases with the expectation that construction activity will slow down from the high of 2022-23 as construction cost rose significantly. Construction Tax This revenue represents a City enacted tax charged on additional square footage as part of a building permit fee. At this point, building activity is expected to remain steady in 2025-26. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 277 Financial Planning Franchise & Encroachment Fees Franchise Fees are an alternative to Business License Taxes for those businesses exempt from the tax, including utilities (PG&E and San Jose Water Company), and cable providers. Fees and charges are levied by the City on a variety of utilities. Gas, electric, and water utility franchise fees are unpredictable yearly as consumption habits fluctuate. The forecast includes an assumed growth rate equal to 2 percent. The largest revenue source in this category is from solid waste for the city's various state-mandated environmental programs. A recent study justified the continuation of solid waste revenue, and $1.5 million is included in the budget and future years forecast. Development Revenues The projected growth rate for Community Development revenues is low, with the unknown impact of return- to-office impacts on remodels and the impact of inflation and stock market volatility on home investments. Forecast projections will change as uncertain economic impacts settle out. For now, each of the planning and building revenues is assessed individually, with most projections ranging from 0 percent to 4 percent annual growth. Recent trends in building activities have increased planning and building revenue, which now accounts for about 20 percent of general fund revenues. The 2022 Comprehensive Cost of Services (User Fee) Study identified approximately $0.8 million in General Fund subsidy of fee services. In response, the City Council established an updated cost recovery target for building services at 90 percent and planning at 75 percent in acknowledgment that some fees require a subsidy to advance the City’s policy objectives for protecting life, property, and environment. Fees increased effectively on January 1, 2024, and again in July 1, 2024 to incorporate City Council’s updated direction on cost recovery. The forecast assumes future year increases to offset the City’s personnel cost and overhead costs increase, including the cost-of-living adjustments and benefit cost increases contained in negotiated Memoranda of Understanding. Rental Income Cell tower lease revenue has been flat with the consolidation of cell phone service providers over the last five years. Effective October 1, 2023, expanded its existing partnership with Los Gatos Saratoga Recreation (LGS Rec) for recreation programs to include facility rentals. The agreement provides the City a net cost savings through the reduction of 1.0 full-time equivalent personnel by attrition. The agreement is in place for two years at which time the City confirmed the cost benefit of the expanded partnership. Interest Income The City invests available funds in the Local Agency Investment Fund (LAIF) and CalTRUST investment pools. Annual yields in both investment pools have steadily increased as federal monetary policy boosted interest rates paid on fixed income securities. The 2025-26 budget includes a $1.3 million in interest income which substantially offsets impacts of the forecast structural deficit. The forecast continues to rely on favorable interest rates in the investment portfolio considering their investment return lag the market by several months. Interest income will decline if interest rates are lowered, and when the City draws down on the American Rescue Plan Act’s State and Local Government Fiscal Recovery Fund allocation to Saratoga, $4 million. The funds are appropriated for capital projects and must be fully utilized by December 2026. GENERAL FUND EXPENDITURE ASSUMPTIONS Salary Forecasted salary & benefit expenditures reflect maximum MOU increases for current staff levels, promotional increases, and a zero-vacancy factor, whereas prior year amounts are actual costs. The impact of this assumption is that the forecast years are typically much higher than actuals. Another consideration in salary projections is the anticipated turnover of a large number of long-term staff expected to retire over CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 278 Financial Planning the next five years. Service model changes and tighter restrictions on overtime and temporary help could potentially help contain salary increases. Benefits The majority of employee benefit costs arise from the City’s retirement plan contract with the California Public Employees’ Retirement System (CalPERS). For 2025-26, the City’s contribution rates range from 8.3 to 13.4 percent of eligible salary, depending on the employee’s benefit plan. The second largest benefit cost is the City’s contribution to medical premiums which are capped by contract. Miscellaneous benefits are also provided based on the employee’s group however the costs of those benefits are less material. Pension Unfunded Accrued Liability In 2014, CalPERS separated the “Normal Cost” for current year pension costs from the prior year’s liability, known as the “Unfunded Accrued Liability” (UAL). The Normal Cost is a rate applied on the current payroll and represents the minimum required cost to provide the CalPERS pension benefit. Additional payments to the UAL allow agencies to reduce pension liabilities accrued due to CalPERS investment and assumption changes over a long-term payment plan. Similar to making additional payments on a home mortgage, this will result in lower overall costs due to the time factor of interest costs. Saratoga’s City Council established a policy to make additional UAL payments to help reduce the outstanding liability, reduce the overall cost, and stabilize future annual payments. The City decision to reduce the UAL resulted in an additional UAL payment of $500,000, above the minimum required payment of $1 million for 2025-26. Forecast for future years assumes $1M total pension contributions (combined minimum and additional UAL payments). Operating Expenditures General operating expenses include costs for ongoing operations such as dues, utilities, supplies, materials, and fees. The level of service and available budget determine the amount of materials and supplies, fees, contract services, and consultants available with operating expenditures held to maintain services. Much of the spending in this category is subject to inflationary pressures and are forecast to increase in future years. 2025-26 budget assumes small savings compared to the prior year as there are no election fees and credit card processing will now be paid by the customer. These two items resulted in about $180,000 in savings, which is partially offset by increased utility costs. Public Safety The largest City contract is the Sherriff’s service contract. Annual increases are either 1) the change in personnel costs or 2) CPI plus 2 percent, whichever is less. The agreement provides service level flexibility, allowing for service or hour increases or decreases each year. The standard service level is brought forward for the forecast with an estimated increase of 6 percent. The current agreement in place is a two-year extension that ends in June 2026 and is subject to potential changes in the future. Community Grants Future year grants grow slightly higher to reflect the Council’s practice of gradually increasing support over time as costs to provide services increase and additional community grant funding requests are received. Internal Service Funds (ISF) ISF functions growth factors vary by fund driven primarily by contract services outside the City's direct control. These funds have stable funding charges that are adequate to improve resource management funding, transparency, and management over a 20-year long-term projection. Liability Risk premiums are escalating quickly over the next few years as the insurance marketplace hardens, with providers exiting the market making it difficult to obtain competitive pricing. Workers Comp is also increasing but at a slower pace. Vehicle Maintenance, IT Services, and Building Maintenance ISF programs also grow yearly due to ongoing labor and service level cost increases. Replacement ISF programs include a Vehicle & Equipment CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 279 Financial Planning replacement program, a Facility Furniture, Fixture, & Equipment (FFE) program, and a more comprehensive IT Replacement program. GENERAL FUND FISCAL SUSTAINABILITY Overall, the City’s General Fund forecast projections illustrate that revenues are not keeping pace with expenditures. Operational reductions, or possibly structural changes will be needed to align revenue and expenditure growth in future years. Further, changes in technology and communication have increased resident expectations, and because of this, the City’s goal to provide a high-level of services has expanded at a pace over the last decade that is exceeding funding resources currently available to the City, and under the forecast projections, not attainable in the future. Additionally, the bigger picture of maintaining city infrastructure into the future puts another level of funding needs on the table that cannot be addressed through current revenue sources. Staff has developed and implemented some infrastructure maintenance funding through the budget process for streets, parks, and facility infrastructure, but much more needs to be done to create a comprehensive business plan to adequately address the full breadth of city infrastructure. As time and resources allow, infrastructure replacement master plans will be developed for categories including streets, parking lots, streetlights, signal lights, storm drains, and city facilities. While the development of citywide infrastructure Master Plans and potential funding sources are expected to take decades, it is on City management’s radar. Current practice has some revenues dedicated to Capital Improvement Programs, such as pavement management. Additionally, the City uses net revenue to add to reserves established by City Council for future capital use. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 280 Employee Compensation EMPLOYEE COMPENSATION CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 281 Employee Compensation PERSONNEL COSTS The City of Saratoga’s total salary and benefit expenditures include labor increases from cost-of-living- adjustments (COLA), employee step increases, pension cost increases, fringe benefit cost increases, and additional payments to the City’s unfunded pension liability. While the City is the fiduciary agent for the West Valley Stormwater Authority – formerly West Valley Clean Water Program - their budget is not included in the City’s budgetary information as the City only assists them with their financial transactions. 2025-26 NOTABLE CHANGES The 2025-26 budget includes a modest increase in full-time equivalent personnel (FTEs) compared to the previous year. Specifically, there is a budgeted 0.05 FTE increase each for the Administrative Analyst position in Public Works and the Human Resources Analyst position. These adjustments will enable both analysts to take on expanded responsibilities-such as enhanced contract administration and additional support for human resources functions-helping to meet the growing needs of their respective departments. STAFFING STRATEGY Saratoga’s fiscal health has benefited from a staffing strategy with three components: regular benefited employees, temporary un-benefited employees, and contract services to provide services responsive to community needs. Contract Services The strategy provides the City with flexibility to meet fluctuating demand for services while ensuring stability in core public services such as planning and public works. Contract services are typically utilized for landscape maintenance, janitorial, development and building, and attorney services. The City also finds that the contract arrangement with the Santa Clara County Sheriff’s Office provides a cost-effective service with a higher level of police services than could be attained by in-house City-funded resources. Dedicated Sheriff Deputies and staff are assigned to the City, although personnel and services can easily adjust as circumstances warrant. This beneficial arrangement provides for expertise in management, administrative, technical, and operational duties, as well as equipment, and communication resources integrated into the smaller city service level on a day-to-day basis. PERSONNEL BUDGETING Labor cost projections are prepared using known data on current employees, current MOU provisions, and California Public Employees’ Retirement System (CalPERS), medical, dental, vision, long-term disability, and life insurance premiums. In some years, these projections are predictable, and in others there is fluctuation, such as when MOUs expire, and new MOU provisions have not yet been finalized. The City does not use a vacancy factor in salary projections as typically there is very little turnover due to successful retention strategies. When there is turnover or retirements, most positions require temporary backfill or a quick recruitment process due to the City’s limited staffing model. With strong retention, the City has many long-term staff that are at the top salary step, but that ratio is expected to change as long-term staff are beginning to age out of the City’s workforce in growing numbers. A payroll expense buffer is built into budgeted salary to fund unplanned cost impacts that may occur during the fiscal year, such as turnover or disability backfill, PTO payouts, excess overtime, and to fund the Compensated Absences Reserve in compliance with policy, if needed at year-end. Health and dental insurance benefits are calculated at the employee’s current coverage status under their chosen health insurance plan to provide accuracy in budgeted benefit costs. The difference in premiums between Single, Plus One, and Family rate is significant and tracked closely. Other insurance benefit CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 282 Employee Compensation coverage costs are stable and not based on coverage status. Because an employee’s insurance coverage status may change during the course of the year, there is a slight buffer built into budgeted benefit costs. Adopted salary and benefit schedules are available online at: https://www.saratoga.ca.us/177/Salary-Benefits TERMS OF EMPLOYMENT Government Code Section 3505, commonly referred to as the Meyers-Milias-Brown Act (MMBA) governs the City’s relationship with all employees. The MMBA authorizes creation of collective bargaining units (employee unions or associations) and requires the City to “meet-and-confer” over “…wages, hours, and other terms and conditions of employment.” Most regular employees are represented by one of two bargaining units: 1) the Saratoga Employees Association (SEA) with currently 25 benefited full and part-time employees, and 2) the United Brotherhood of Carpenters and Joiners of America Local Union No 2236 (UNION) for the 13 Public Work’s Corporation Yard staff. 15 City employees, primarily management, are classified as unrepresented. The City Manager, while also unrepresented, has a negotiated contract. Hourly (non-benefited, temporary) staff are not represented and only receive benefits prescribed by law such as the Affordable Care Act and State paid time off requirements for part-time employees. Salaries and benefits for regular employees are enumerated in two bargaining unit Memoranda of Understanding (MOUs). Unrepresented employees receive substantially similar benefits with several exceptions as outlined in City Council Resolution. Employee salaries are posted to the City’s website incompliance with State law regarding publicly available pay schedules. Terms of employment, including the above-mentioned contracts, are available online at: https://www.saratoga.ca.us/178/Employee-Terms- of-Employment COMPENSATION Salaries are adjusted annually as defined by the MOUs or resolution, and typically provide cost-of-living adjustments (COLA) based on the annual average for the 12-month period running from January 1 to December 31 of the U.S. Department of Labor, Bureau of Labor Statistics, “All Urban Consumers (CPI-U)” for the San Francisco-Oakland-San Jose region. Per State law, the City Manager’s annual cost of living adjustment increase is capped at the California Department of Industrial Relations (DIR) rather than the US Bureau of Labor Statistics. PENSION BENEFITS Saratoga’s benefited employees are enrolled in one of three pension benefits, all based on date of hire and State law. The City pays a variable annual cost as a percentage of payroll for active employees plus a flat unfunded liability cost. Employees pay a fixed contribution to the pension benefit, based on their tier, ranging from 7.0 percent to 8.25 percent. City employees enrolled in a CalPERS pension are in what CalPERS describes as a “full formula” plan and are not covered by Social Security. Medicare participation is required for all employees hired after March 31, 1986. • Tier 1 employees were hired before May 12, 2012 and receive the “2.0% @ 55” benefit. The benefit provides 2 percent of the employee’s highest 12-month eligible compensation for each year of service to the City of Saratoga when the employee is age 55. The benefit increases annually to a maximum of 2.418 percent for each year of service if the employee retires at 63. The 2% @ 55 benefit schedule is available at: https://www.calpers.ca.gov/docs/forms-publications/benefit-factors-local-misc-2-at-55.pdf CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 283 Employee Compensation • Tier 2 employees are those hired on or after May 12, 2012 and were an active employee for another CalPERS agency before May 12, 2012, receive the “2.0% @ 60” benefit. The benefit provides 2 percent of the employee’s highest 36-month eligible compensation for each year of service to the City of Saratoga when the employee is age 60. The benefit increases annually to a maximum of 2.418 percent for each year of service if the employee retires at 63. The 2% @ 60 benefit schedule is available at: https://www.calpers.ca.gov/docs/forms-publications/benefit-factors-local-misc-2-at-60.pdf • Tier 3 employees receive the “2.0% @ 62” benefit formula and are those hired after January 1, 2013 and otherwise ineligible for Tier 2 benefits. Tier 3 employees are also referred to as “PEPRA” after the Public Employee’s Pension Reform Act of 2013 (PEPRA) which mandated the creation of “2.0% @ 62” benefit for all CalPERS employers. The benefit provides 2 percent of the employee’s highest 36-month eligible compensation for each year of service to the City of Saratoga when the employee is age 62. The benefit increases annually to 2.418 percent for each year of service if the employee retires at 67. Unlike Tier 1 and Tier 2, Tier 3 pension benefit is capped at approximately $162,000. The 2% @ 62 benefit schedule is available at: https://www.calpers.ca.gov/docs/forms-publications/benefit-factors-local-misc-2-at-62.pdf City of Saratoga Council Members have the option to join the City’s CalPERS pension plan, with all five members currently electing to do so. Public safety services are contracted through Santa Clara County Sheriff’s Office, meaning all Sheriff Office personnel belong to the County’s pension account and their benefit costs are paid by the County. The County recovers salary and benefit costs through the contractual service fees. Pension Benefit Costs The City’s CalPERS Contribution payments are comprised of employee and employer contributions. The Employee Contribution Rates are under the 2% @55, and the 2% @60 benefit plans is constant at 7 percent. Under the PEPRA 2% @62 plan rate, the Employee Contribution Rates are determined each year through an actuarial valuation, with the employee responsible for approximately 50 percent of the cost. The following chart shows a history of Saratoga’s contribution rates and the number of active employees enrolled in the various pension benefit Tiers. (Rate is Percentage of Eligible Payroll) Tier 1 Tier 2 Tier 3 2.0% @ 55 2.0% @ 60 2.0% @ 62 Fiscal Year UAL Minimum Payment Headcount City Contrib. Headcount City Contrib. Headcount City Contrib. 101,604 41 9.56% 9 7.81% 7 6.93% 2017-18 183,002 38 9.60% 10 7.85% 10 6.91% 2018-19 286,594 37 10.15% 8 8.35% 13 7.27% 2019-20 416,921 36 10.87% 8 8.67% 14 7.07% 2020-21 502,729 35 11.75% 7 9.44% 16 7.87% 2021-22 598,945 32 11.60% 7 9.30% 19 7.73% 2022-23 725,952 29 11.60% 8 9.30% 21 7.70% 2023-24 605,938 27 13.26% 9 10.87% 26 8.00% 2024-25 790,564 24 13.31% 7 10.93% 28 8.18% 2025-26 1,033,492 24 13.38% 5 10.97% 30 8.27% Note: Vacant headcount reported as Tier 3 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 284 Employee Compensation Pension Costs Drivers Employer rates are based on actuarial studies performed as of June 30th using several assumptions including but not limited to investment return assumptions, rate smoothing policies, and demographics. Various agency-based factors such as covered payroll changes including increases and decreases in employee headcount or wages. A guide to CalPERS funding is available at: https://www.calpers.ca.gov/page/about/organization/facts-at-a-glance/pension-buck CalPERS actuarial assumptions are established based on the concept that the value of its stock, bonds and other holdings generate income over an employee’s lifetime to fund the majority of the pension costs. In the early 1990s, with record high interest rates bringing in large returns, the actuarial Investment Rate of Return (IRR) rate had risen to a high of 8.75 percent. By 2003, CalPERS had adjusted the income growth rate down to 7.75 percent as the longer-term annualized IRR was only slightly higher. After the economic downturn began in 2008, returns heavily diminished for many of the following fiscal years and CalPERS staff repeatedly requested the IRR be adjusted further downward. In 2012, the CalPERS Board agreed to reduce the IRR to 7.5 percent, to be phased in over two years. This IRR change impacted Miscellaneous Employer Contribution Rates by increases of around 1 percent, and up to 2 percent of payroll while most Public Safety Plan’s Employer Contribution Rate increased by 3 percent of payroll. Saratoga’s rate increase was 0.6 percent in 2013-14, and another 0.73 percent in 2014- 15. The increases were lower than most other cities due to having stayed with the original 2% @ 55 benefit plan, while some agencies increased their benefits to 2.5 or 2.7% at 55 before the Great Recession. Rate Smoothing Policies The severity of the economic downturn that began in 2008 severely impacted CalPERS portfolio’s actuarial value of assets, which in turn prompted actuarial staff to adjust their existing methodology. Initially the remedy was a widening of the corridor through a smoothing policy that spread investment return impacts over a rolling 15-year period, and experience gains and losses over a rolling 30-year period. This methodology led to stabilized rates, but CalPERS staff quickly came to understand this policy would understate risk due to the slow progress to full funding. The impact from rolling the smoothing and amortization periods would lead to unknown rate peaks and a lack of transparency. With Governmental Accounting Standards Board’s issuance of a new accounting standard that required 1) the reporting of actual pension liability, not just pension funding, and 2) favored closed periods without smoothing, CalPERS approved a further change in their amortization and smoothing policy in April of 2013. This new policy had employers paying for annual gains and losses over a fixed 30-year period, with the increases or decreases in the direct rate spread over a 5-year period – the rates would then plateau for twenty years, and then ramp back down over the final 5 years. This methodology was intended to improve the funded status in the long term and significantly reduce the probability of employer contribution rates increasing by more than 5 percent of payroll in a single year. In addition, CalPERS separated the pension costs for current year liabilities (called the normal cost) from the actuarial assumption changes and prior year liabilities, (known as the UAL). This change was to provide better rate stability, and a payment option for cities. However, with the severe devaluing of CalPERS investments during the recession, CalPERS actuarial staff continued to state the IRR decrease was insufficient and asked for a further decrease to 7.25 percent. In 2015-16, the CalPERS Board agreed to lower the rate over a long-term plan that would allow very small decreases only in positive investment years. In FY 2016/17, CalPERS staff convinced the Board that this slowly decreasing IRR Rate plan was not enough to ensure CalPERS would remain sustainable. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 285 Employee Compensation Subsequently, the Board agreed to lower the rate applied to new fiscal year UAL bases to 7 percent over a three-step phase-in (7.375 percent, 7.25 percent, and 7.0 percent), with each step having a five-year phase in period – meaning the total phase in period would take seven years. The Board understood that the impact of the IRR change would be both financially substantial and detrimental to CalPERS agencies and offered this incremental change plan so agencies would have time to adjust to the increases. The downside to this phase-in policy is that the ramp-up period postpones payment and thereby incurs negative amortization, resulting in increased cost over the long-term. CalPERS also conceded that the IRR rate would need to continue to be decreased, down to 6.5 percent in the future. The result was that after the 7 percent phase-in is complete, CalPERS plans to make small, incremental decreases only in positive investment years to reduce financial impacts. The current discount rate is 6.8 percent. More information about CalPERS’ smoothing policies are available at https://www.calpers.ca.gov/docs/actuarial- amortization-policy.pdf In 2017-18, CalPERS announced another actuarial modification. The Board agreed that going forward, the annual Experience Study gains and losses would no longer be factored in over 30 years with a five-year phase-in. Their new plan factored in all new future year gains and losses over 20 years, with a five-year phase-in period. Together, these actions are expected to bring the pension plans up to a safe and sustainable funding level within a shorter time frame. CalPERS updated their Experience Study in 2021 and is accessible at: https://www.calpers.ca.gov/docs/forms-publications/calpers-experience-study-2021.pdf Actuarial Assumptions As part of CalPERS’ ongoing actuarial analysis, the various demographic assumptions are reassessed on a rotating basis. A review was conducted in 2013 and again in 2016 that revealed mortality, retirement age, -7.2%-6.1% 3.7% 16.6% 12.3% 11.8% 19.1% -5.1% -24.0% 13.3% 21.7% 0.1% 13.2% 18.4% 2.4% 1.6% 11.2%8.6% 6.7%4.7% 21.3% -6.1% 5.8% 9.3%11.6% FY 0 1 FY 0 2 FY 0 3 FY 0 4 FY 0 5 FY 0 6 FY 0 7 FY 0 8 FY 0 9 FY 1 0 FY 1 1 FY 1 2 FY 1 3 FY 1 4 FY 1 5 FY 1 6 FY 1 7 FY 1 8 FY 1 9 FY 2 0 FY 2 1 FY 2 2 FY 2 3 FY 2 4 FY 2 5 CalPERS Historical Annual Investment Returns Annual Investment Return 6.8% Discount Rate CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 286 Employee Compensation and wage increase factors changed considerably, thereby impacting benefit costs. CalPERS’ standard practice is to amortize the Assumption Changes over 20 years rather than the 30 years they had used for investment impacts. As it stands now with the recent modification, all future year impacts will be amortized over 20 years. Even though the economic downturn and demographic updates have negatively impacted pension rates, the “Miscellaneous 2% at 55 Risk Pool” suffered less because the plan design was based on actuarially sound principles and experience data. Whereas the enhanced plans (2.5% @ 55, 2.7% @ 55 for miscellaneous, 3% @ 50 or 55 for Public Safety) were based on short-term assumptions that used estimated – not realized factors. The higher benefit plans ultimately proved to be fiscally unsustainable, and as a result, will experience much larger PERS rate increases in the coming years. Over time, all CalPERS defined contribution plans other than the new PEPRA plans will be phased out as “Classic” employees leave the workforce. With the new amortization and smoothing policies and ever-changing actuarial assumptions, Saratoga’s pension costs will continue to increase in the upcoming years. However, because the City took proactive measures to pay a large portion of the Unfunded Accrued Liability and has continued to pay more than the annual required contribution UAL payment each year, the City’s susceptibility to rate volatility is significantly decreased, and the overall cost reduced. This fiscally responsible approach allows the City to better plan for and endure economic impacts during inevitable future economic downturns and has contributed toward the City’s efforts to operate under a financially sustainable strategy. The actuarial valuation reports for all public agencies participating in CalPERS area available online at: https://www.calpers.ca.gov/page/employers/actuarial-resources/public-agency-actuarial-valuation-reports Note: Search “Saratoga City” in the name field and click the plus sign to the left of the Employer ID Number to open the list of available reports. Reports are issued once per year in the August timeframe and lag approximately 12 full months from the asset and liability measurement date. For example, the valuation report dated July 2022 uses a measurement date of June 30, 2021. Pension costs and unfunded pension liabilities resulting from the June 30, 2021 valuation date impact City costs beginning July 1, 2023; 24 months following the measurement date. Summary of Cost Containment Measures • Effective with the 2011 MOUs, employees began paying the full 7 percent CalPERS employee contribution from their wages. • Effective May 12, 2012, Tier II was implemented for new employees. • Effective January 1, 2013, all new CalPERS members were assigned to the PEPRA pension plan. • Annual savings equals the total difference between what a Tier I pension factor would cost for employees less the actual cost incurred for Tier II and PEPRA employee pension costs. • The City makes additional payments to the Unfunded Accrued Liability (UAL) as funds are available. DEFERRED COMPENSATION EMPLOYER MATCH Under the MOUs effective July 1, 2023, the City provides employees with a $50 per month contribution to an IRS Section 457 deferred compensation plan, plus an additional match contribution, up to $100 per month, for a total employer contribution of $150 to their retirement savings plan, in addition to their pension. For at-will employees (Directors and City Manager) the City provides a match contribution up to $250 per month. CAFETERIA PLAN AND MEDICAL BENEFITS The City offers employees a Cafeteria Plan allowance to purchase or opt out of purchasing medical insurance for themselves and their dependents. Saratoga contracts with the CalPERS medical insurance pool as authorized in the Public Employees’ Medical and Hospital Care Act (PEMHCA), which offers a variety of different HMO and PPO medical options. As a contract agency through PEMHCA, the City is required to make a minimum contribution (referred to as the PEMHCA minimum) for active and retired CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 287 Employee Compensation employees to purchase medical insurance through PEMHCA. More information about CalPERS medical insurance plan options is available online at: https://www.calpers.ca.gov/page/active-members/health-benefits/plans-and-rates Although CalPERS has substantial negotiating powers, medical insurance premiums typically continue to increase each year. In 2015, MOU negotiations resulted in a change to the medical insurance benefits from employer paid coverage to a base contribution of $800 for Single Employees, $1600 for Employee + One plans, and $2,080 for Employee + Family plans, beginning calendar year 2016. Under the MOU, the City’s base increases by 50 percent of the average medical premium increase each future year, and employees pay the remainder of the insurance premium. Section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA), establishes a minimum monthly employer premium contribution assessed on participating agencies who do not provide retiree health insurance but have City retirees that choose to continue their participation in CalPERS health plans. The employer contribution is adjusted annually by the board to reflect changes in the medical care component of the CPI-U. The minimum employer annual contribution is $1,896 for calendar year 2025. The City includes this amount in the operating budget as an ongoing retiree cost, which currently amounts to approximately $40,000 per year for an estimated 20 to 22 participating retirees next fiscal year. The table below shows City contributions for unrepresented staff for reference. Effective January 1st Annualized Saratoga Cafeteria Plan Contributions with Kaiser Permanente Premiums for Reference Employee Only Employee + 1 Employee + 2/More City Cap Kaiser City Cap Kaiser City Cap Kaiser 2017 9,684 8,801 19,368 17,601 25,176 22,882 2018 9,792 9,358 19,584 18,717 25,464 24,332 2019 9,792 9,219 19,584 18,438 25,464 23,969 2020 10,044 9,222 20,076 18,444 26,112 23,977 2021 10,428 9,764 20,868 19,527 27,120 25,386 2022 10,644 10,285 21,288 20,569 27,672 26,740 2023 11,013 10,965 22,029 21,930 28,638 28,509 2024 11,625 12,257 23,262 24,514 30,246 31,868 2025 11,908 13,355 23,819 26,710 30,964 34,722 2026 12,265 14,026 24,534 28,053 31,893 36,468 CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 288 Employee Compensation Summary of Cost Containment Measures Medical insurance is the second largest benefit cost. The City has implemented various cost containment measures over the past decade to address the impacts of premium increases. Like many other service costs, from 2024 to 2025, premium increases for the most popular plan, Kaiser, is 9 percent year-over-year. Previous year increases have been anywhere from 50 to 75 percent lower. The City's most recent agreement with the largest employee group and the benefits plan provided to the unrepresented employees caps the year-over-year increase in the employer's contribution to medical at the cost-of-living adjustment. Benefit costs beyond 2025 for the largest employee group are subject to future negotiations. OTHER WELLNESS BENEFITS The City contracts for its dental insurance and with Principal for Life and Disability (AD&D) Insurance. Dental insurance premiums and Life and AD&D premiums are paid 100 percent by the City. Employees may elect to enhance their AD&D coverage through the group plan, at their own cost. Currently, the City self-funds short-term disability coverage for 75 percent of wages after an employee’s paid time-off is exhausted, up until long-term coverage activates at six months. Employees have the option to enhance their long-term disability and life insurance plans, and to obtain vision care coverage through a group plan, again at their own cost. OVERALL EMPLOYEE COMPENSATION SUMMARY In summary, personnel costs are comprised of salaries for full and part-time personnel, inclusive of holidays and paid time off and benefits which includes health, life and disability insurances, and retirement contributions. Annual wage increases and benefit adjustments are negotiated under each bargaining unit’s Memorandum of Understanding (MOU). https://www.saratoga.ca.us/178/Employee-Terms-of-Employment CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 289 Glossary GLOSSARY CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 290 Glossary Acronyms and Abbreviations Following is a list of acronyms common to local government terminology: AB Assembly Bill ABAG Association of Bay Area Governments ACFR Annual Comprehensive Financial Report ADA American Disabilities Act ARPA American Rescue Plan Act ARS Automated Reporting System BMP Below Market Price (Housing) CalPERS California Public Employee’s Retirement System CARES Act Coronavirus Aid, Relief and Economic Security Act CDBG Community Development Block Grant CEQA California Environmental Quality Act CERT Community Emergency Response Team CFD Community Facility District CIP Capital Improvement Program COP Certificates of Participation CPI Consumer Price Index CSMFO California Society of Municipal Finance Officers CY Current Year DART Disaster Aid Response Team DOJ Department of Justice EOC Emergency Operations Center ERAF Educational Revenue Augmentation Fund FEMA Federal Emergency Management Agency FFE Furniture, Fixtures & Equipment (IS) FTE Full-Time Equivalent (2080 annual work hours) FY Fiscal Year GAAP General Accepted Accounting Principals GASB Governmental Accounting Standards Board GFOA Government Finance Officers Association GIS Geographical Information System G.O. General Obligation (Bond) HAZMAT Hazardous Materials HHW Household Hazardous Waste HUD Housing & Urban Development HVAC Heating/Ventilation Air Conditioning ISF Internal Service Fund IT Information Technology JPA Joint Powers Authority LAIF Local Agency Investment Fund LLD Landscape and Lighting District LT Long-Term (as in Long-Term Notes Receivable) MF Major Fund MIS Management Information Systems MOU Memorandum of Understanding MVLF Motor Vehicle in Lieu Fee (See also VLF) NPDES National Pollutant Discharge Elimination System OCJP Office of Criminal Justice Planning OEM Office of Emergency Manufacturer CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 291 Glossary OES Office of Emergency Services PC Personal Computer PCI Pavement Condition Index PERS Public Employees Retirement System POA Police Officers Association PW Public Works Department PY Prior Year RDA Redevelopment Agency ROW Right-of-Way SB Senate Bill SCC Santa Clara County SLESF Supplemental Law Enforcement Services Fund Grant SLFRF State and Local Fiscal Recovery Funds TDA Transportation Development Act TEA Tax Equity Allocation TFCA Transportation Fund for Clean Air TOT Transient Occupancy Tax VLF Motor Vehicles In Lieu Fee (see also MVLF) VTA Valley Transportation Agency WVCWP West Valley Clean Water Program WVSD West Valley Sanitation District CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 292 Glossary PAGE LEFT BLANK INTENTIONALLY CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 293 Glossary TERMS Accounting System - The set of records and procedures that are used to record, classify, and report information on the financial status and operations of the City. Accrual Basis Accounting –An accounting method in which transactions are recognized at the time they are incurred, regardless of the timing of related cash receipt and/or disbursement. Ad Valorem Taxes - Latin for “in proportion to the value.” This classification refers to real and personal property taxes levied on the basis of the property’s value. These rates are applied to the secured, unsecured, supplemental, and other miscellaneous tax rolls. General Obligation (G.O.) Bond assessments are also included in this classification. Adoption – A formal determination by the City Council, which approves an action, such as the Budget Adoption sets the spending limits for the fiscal year. Some adoptions, such as the City's budget, are adopted by Council resolution. Agency Fund – A fund used to account for assets held by the City in the capacity of Fiscal Agent for individuals, organizations, or other governmental entities. ARPA (American Rescue Plan Act) – Federal legislation enacted in 2021 to address the economic and social impacts of the of 2020 Coronavirus (COVID-19) pandemic. The Act created the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) which provides state, local, and Tribal governments direct allocations disbursed in two tranches: July 2021 and July 2022. Use of the funds is overseen by the United Stated Department of Treasury and requires annual reporting to disclose their uses. Saratoga received $7.2 million in funding and allocated the funds to the capital improvement program for needed regional clean water infrastructure improvements in 2021-22. Amortization - The gradual elimination of an asset or liability, such as a bond premium, over a specified period of time. Annual Budget - A budget applicable to a single fiscal year. Annual Comprehensive Financial Report (ACFR) - The official financial report of the City. The ACFR includes an audit opinion as well as basic financial statements and supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions. Appropriation - An authorization made by the City Council, which permits officials to incur obligations against and to make expenditures of government resources. Appropriations are typically granted for a one- year period. Assessed Valuation - A value established for real property for use as a basis in levying property taxes. For all agencies in the State of California, the County for the secured and unsecured property tax rolls establishes assessed value; the utility property tax roll is valued by the State Board of Equalization. Under Article XIII of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100 percent of full value. Proposition 13 also modified the value of real taxable property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change of ownership. Personal property is excluded from these limitations and is subject to annual reappraisal. Assessment Fund –A fund used to account for special levies made against certain properties to defray part or all of the costs of a specific improvement or service deemed to primarily benefit those parties. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 294 Glossary Audit - Prepared by an independent Certified Public Accountant (CPA), the primary objective of an audit is to determine if the City's Financial Statements present fairly the City's financial position and results of operations in conformity with generally accepted accounting principles. In conjunction with their performance of an audit, it is customary for an independent auditor to issue a Management Letter stating the adequacy of the City's internal controls as well as recommending improvements to the City's financial management practices. Balanced Budget – Refers to a budget funding plan in which total funding sources exceed total funding uses. Total funding sources would include revenues, transfers in from other funds, use of fund balance, and other sources such as grants, loans, or bond proceeds. Total funding uses would include expenditures, transfers out to other funds, and retention of funds to fund balance. Bi-Annual Budget – A budget plan that is applicable to two fiscal years. Bonds - A bond is a written promise to pay a specified sum of money (called the face value or principle amount) at a specified date or dates in the future (called the maturity date) together with period interest at a specified rate. Bonds are typically used to finance capital facilities. Budget - As the City's financial operating plan for the fiscal year, the budget displays the estimated expenditures (costs) for providing services and the estimated sources of revenue (income) to pay for them. Once the City Council adopts the budget, the total becomes the maximum spending limit. Saratoga’s budget encompasses fiscal year (July 1 through June 30). Budget Amendment - The Council has the sole responsibility for adopting the City budget, and may amend or supplement the budget at any time after adoption. The City Manager has the authority to approve administrative adjustments to the budget as outlined in the Financial and Administrative Policies set by Council. Budgetary Basis – This refers to the basis of accounting used to estimate financing sources and uses in the budget. This generally takes one of three forms: GAAP, cash, or modified accrual. Budget Calendar - The schedule of key dates which the City follows in the preparation and adoption of the budget. Budget Document - The official financial spending and resource plan submitted by the City Manager and adopted by the City Council explaining the approved budget to the public and City Council. Budget Message - Included in the opening section of the budget, the Budget Message provides the Council and the Public with a general summary of the most important aspects of the budget, comparative data from previous fiscal years, goals and objectives, and the views and recommendations of the City Manager. Budget Overview – A department or program section in which the operational focus in the upcoming year is discussed. Significant fiscal data and impacts of budgetary changes are included in the discussion. Budget Policies - General and specific guidelines adopted by the Council that govern the financial plan's preparation and administration. Building Permit - Fee required for new construction or for any alteration or addition to a residence or commercial building. The fee is based on square footage and valuation. Electrical or plumbing/mechanical work will require a similar permit. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 295 Glossary Business License Tax – A tax imposed on those conducting business within the City limits. Business License Tax is a non-regulatory tax implemented for the purpose of raising revenue to support General Fund activities. California Public Employee's Retirement System (CalPERS) – A State of California administered pension plan provided to State and Local Government employees, with contributions paid by both the City and the employees. CARES Act –Coronavirus Aid, Relief and Economic Security Act A stimulus bill passed in response to the economic fallout of the COVID-19 pandemic in the United States. Capital Assets - Assets exceeding $10,000 and having a useful life of several years. Capital assets are also called ‘Fixed Assets’ and include land, buildings, machinery, and equipment. Capital Expenditures – Funds spent for the construction, improvement, or rehabilitation of City infrastructure. Capital Improvement Plan (CIP) - The workplan or collection of schedules for the major construction of roads, sidewalks, City facilities and/or park improvements and for the purchase of equipment. The first year of the capital budget appropriations are adopted along with the operating budget, and the overall 5-year capital workplan. Capital Projects - Expenditures that have a value of $25,000 or more which result in the acquisition of, construction of, rehabilitation of, or additions to, infrastructure and fixed assets with a useful life of at least 5 years at a fixed location. Capital Projects Fund - In governmental accounting, a fund that accounts for financial resources to be used for the acquisition or construction of capital facilities. The total cost of a capital project is accumulated in a single expenditure account which accumulates until the project is completed. Capital Reserve – A fund balance account used to segregate a portion of funds set aside for capital program expenditures. These funds are subsequently used to fund future capital acquisitions or infrastructure construction. Carryforward/Carryover – Funds used during a financial year which are transferred to the budget for the following year. Cash Basis Accounting - A basis of accounting under which transactions are recognized only when cash is received or disbursed. City Code – The City’s listing of City Council approved ordinances currently in effect. The code defines City policy with respect to areas such as planning and land use regulations, business regulations, etc. Contingency - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contingent Liabilities - Items which may become liabilities of the City but are undetermined at a given date, such as pending lawsuits, unsettled disputed claims, unfilled purchase orders and uncompleted contracts. Contract Services - Services provided to the City from the private sector or other public agencies. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 296 Glossary Debt Service - Payment of the principal and interest on an obligation resulting from the issuance of bonds, notes, or Certificates of Participation (COPs). Debt Service Fund - A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Deficit - The excess of liabilities over assets. Department - A major organizational unit of the City, which has been assigned overall management responsibility for an operation, or a group of related operations within a functional area. In Saratoga, Department Heads are the chief administrators within a department. Depreciation – The prorated expense of a fixed asset, less any salvage value, charged as an expenditure over the estimated service life of the asset. Encumbrances - Commitments against an approved budget for unperformed (executory) contracts for goods or services. They cease to be encumbrances when the obligations are paid or otherwise terminated. Enterprise Funds - Established to account for the financing of self-supporting activities of governmental units, which render services on a user charge basis to the general public. Equipment Replacement Fund – This fund is used to account for the replacement of existing fixed assets as equipment, machinery or building improvements become unserviceable or obsolete. Expenditure -The outflow of funds paid or to be paid for an asset obtained or goods and services obtained. Note: An encumbrance is not expenditure; an encumbrance reserves funds to be expended. (See encumbrances.) Fiduciary Funds – Used to account for assets held by the City acting in a fiduciary capacity for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances and other governing regulations. There are two categories of fiduciary funds: Trust and Agency. Fiscal Year - A 12-month period to which the annual operating budget applies and at the end of which the City determines its financial position and results of its operations. The City’s fiscal year runs from July 1st to June 30th. Fixed Assets - Non-consumable assets of long-term nature such as land, buildings, machinery, furniture, and other equipment. The City has defined such assets as those with an expected life in excess of one year and value in excess of $10,000. Franchise Fees - Imposed on utility companies for the privilege of doing business in the City. Fees are usually based upon a percentage of gross revenue derived from business conducted in the City. Full-time Equivalents (FTE) - The amount of time a position has been budgeted for in terms of the amount of time a regular, full-time employee normally works in a year. Full-time employees are paid for 2,080 hours in a year equating 1.0 FTE. Correspondingly, a part-time employee who worked 1,040 hours would equate to 0.5 FTE. Fund - An independent fiscal and accounting entity with a self-balancing set of accounts in which cities record financial transactions relating to revenues, expenditures, assets, and liabilities. Each fund type typically has a unique funding source and purpose. Establishing funds enables the City to account for the use of restricted revenue sources that carry specific activities or pursue specific objectives. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 297 Glossary Fund Accounting - System used by non-profit organizations, particularly governments. Since there is no profit motive, accountability is measured instead of profitability. The main purpose is stewardship of financial resources received and expended in compliance with legal requirements. Fund Balance - Also known as the net financial position in a governmental fund, fund balance is the excess of current assets over current liabilities and represents the cumulative effect of revenues and other financing sources over expenditure and other financing uses. Fund Equity – represents the net financial position in a non-governmental fund. See Fund Balance definition above. GAAP (Generally Accepted Accounting Principles) - Uniform minimum standards for financial accounting and reporting. They govern the form and content of the basic financial statements of the City. Gann Appropriation Limit – This is the common name of Proposition 4, approved by voters on November 6, 1979, which mandated an appropriation limit on the amount of tax revenues that government jurisdictions may appropriate within a fiscal year. This bill was named after Paul Gann, who was a co-sponsor of the famous Proposition 13 initiative enacted by the voters of California on June 6, 1978, which resulted in a cap on property taxes in the state, and a prominent author and advocate of this subsequent spending limitation bill. Gas Fund Tax - The Gas Fund Tax is used to account for revenues and expenditures apportioned under the Streets and Highways Code of the State of California. Expenditures may be made for any street related purpose in the City’s system of streets. General Fund - In governmental accounting, this is the primary fund used to account for assets and liabilities of a non-profit entity, except for those items specifically assigned for other purposes in another more specialized fund. General Government – City Council, City Manager, City Clerk, City Attorney, Human Resources, Finance, Community Development, Public Works, Recreation, and Public Safety. General Liability Self Insurance Fund - The General Liability Self Insurance Fund is used to provide the City with liability and property insurance. Coverage is provided through participation in a joint powers agreement (PLAN JPA) that consists of 28 Bay Area Cities. General Obligation Bond – A municipal bond backed by the credit and "taxing power" of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. No assets are used as collateral. Government Finance Officers Association (GFOA) – GFOA is the professional association of state/provincial and local finance officers in the United States and Canada, and has served the public finance profession. Approximately 16,000 GFOA members are dedicated to the sound management of government financial resources. Governmental Funds – the fund used to account for all assets and liabilities of a government agency, except those particularly assigned for other purposes in another more specialized fund. There are five different types of governmental funds: the general fund (which is the primary operating fund), special revenue funds, debt service funds, capital project funds, and permanent funds. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 298 Glossary Grant - External contributions, and/or gifts of cash, or other assets typically from another governmental entity to be used or expended for a specific purpose, activity, or facility. An example is Community Development Block grant funding from the Federal Government. Infrastructure – The basic facilities, services, and installations needed for the functioning of a community or society, such as streets and roads, sidewalks, bridges, communications systems, water and power lines, and public institutions including schools, police stations, libraries, and post offices. Interest Income – The prudent investment of idle funds. The types of investments that can be made are limited by the Government Code to protect the safety of taxpayers' money. Intergovernmental Revenue – Revenue received from other governmental agencies and municipalities, such as grants from the State or Federal government. Internal Services Fund –The Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis. Inter-Fund Transfers – When the City moves money between its various funds, it makes an inter-fund transfer, referred to as transfers-in and transfers-out. In aggregate, transfers in and out offset each other for the fiscal year. Landscape and Lighting Fund – The City forms landscape and lighting zone funds within the City, via majority consent of the property owners, to manage the landscape, storm water, or lighting services for the property owners. Levy – To impose taxes, special assessments, or service charges for the support of governmental activities. The total amount of taxes, special assessments or service charges imposed by Santa Clara County levying property taxes. Licenses and Permits – Revenues earned by the issuance of licenses or permits levied in accordance with the benefits conferred by the license or permit. Limited Obligation Bond - A bond sold by a municipality to finance projects which are secured by the revenue generated by those projects. Line-Item Budget – A detail level budget that lists individual expenditures (staff time, paid-time-off, insurance, pension, office supplies, small tools, membership dues, water, electricity, janitorial services, etc.) Major Fund – A major fund in government accounting is a fund that meets specific criteria based on its financial significance. Major funds are reported separately in the fund financial statements, providing more detailed information about the government's most important funds. Modified Accrual Basis – An accounting method used by governmental agencies that is in part accrual basis, and in part cash basis. Under modified accrual, revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures are recognized when the related fund liability is incurred – with exceptions for prepayments, accumulated employee leave and long-term debt. Governmental Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Motor Vehicle in Lieu Fee (MVLF) – A State fee charged for the privilege of operating a vehicle on public streets. A VLF is levied annually against the market value of a motor vehicle and is imposed by the State “in lieu” of local property taxes. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 299 Glossary Net Operations – Term used to define the positive or negative residual between sources (revenues, transfers-in) and uses (expenditures, transfers out) in an income statement type of schedule. Non-Departmental – This program has the sole purpose of accounting for all expenditures that the City cannot specifically designate to any operating department within the General Fund. Net Revenue – The balance after the expenditures are subtracted from the revenue. Objective - A statement of specific direction, purpose, or intent based on the needs of the community and the goals established for a specific program or service level. Ordinance - A formal legislative enactment by the City Council. It has the full force and effect of law within City boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal standing than a Resolution and is typically codified in a City's municipal code. Operating Budget - The operating budget is the primary means by which most of the financing of acquisition, spending and service delivery activities of a government are controlled. The use of annual operating budgets is required by law. Other Revenues - Revenues from sources other than those specifically identified that are too immaterial in amount to justify the creation of new revenue account line items. Performance Measure - Sets forth a performance objective and a goal for achieving the objective. Personnel Benefits - Those benefits paid by the City as conditions of employment. Personnel – In the context of this document, refers to City employees. Present Value - The amount that a future sum of money is worth today, given a specified rate of return. Proposition 218 - A statewide initiative passed by the voters of California on November 5, 1996 that provides California voters with the right to vote on new taxes. Program - As subdivisions of departments, programs are budgetary or organizational units of government with limited sets of work responsibilities within their respective departments. Programs also serve to increase budgetary accountability. Saratoga's budget is compiled on a program basis. Property Tax - Imposed on real property (land and permanently attached improvements). The tax is based upon the assessed value of such property. The tax rate may not exceed 1 percent of assessed value. Proprietary Funds – Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. Reserve - An account used to indicate that a portion of fund equity is legally restricted for a specific purpose. Resolution - A special order of the City Council which has a lower legal standing than an ordinance. Resources - Total amounts available for appropriation including estimated revenues, inter-fund transfers, and beginning fund balances. CITY OF SARATOGA, CALIFORNIA 2025-26 Adopted Budget 300 Glossary Revenue - Sources of income, which the City receives during a fiscal year. Examples of revenue include taxes, intergovernmental grants, service charges, fees, permits, rental and lease income, interest income, and other financing sources such as the proceeds derived from the sale of fixed assets. Sales Tax – The consumer goods tax that includes a designated 1 percent that is returned to the local agency by the State Board of Equalization on a monthly direct deposit basis. Special Assessment Bonds - Bonds payable from the proceeds of special assessment. Special Revenue Fund - In governmental accounting, fund used to account for the proceeds of special revenue sources (other than special assessments, expandable trusts, or for major capital projects) that are legally restricted to expenditure for a specified purpose. Service Charge - Charges for specific services rendered. Services and Supplies - Expenditures for services and supplies which are directly related to a department's primary service activities. SLFRF (State and Local Fiscal Recovery Funds) Provision of the American Rescue Plan Act (ARPA) to provide funding to state, local, and Tribal governments with the resources needed to respond to the pandemic and its economic effects. Saratoga received $7.2 million in funding and allocated the funds to the capital improvement program for needed regional clean water infrastructure improvements in 2021-22. Summary Budget – A budget that provides a tabular listing of revenues by source and expenditures by fund and by department within each fund for the budget year. Supplies - An expenditure classification for articles and commodities purchased for consumption or resale. Tax Equity Allocation (TEA) – State of California property tax law requires the auditor of each county with qualifying cities to make property tax revenue allocations as defined in Section 98 of the Revenue and Taxation Code. TEA typically refers to the minimum 7 percent allocation established by legislation in Proposition 13 clean-up bills. Taxes - Compulsory charges levied by the City, County, and State for the purpose of financing services performed for the common benefit. Transient Occupancy Tax - Imposed on hotels, motels, inns or other lodging facilities. The rate in Saratoga is 10 percent. Transfers In/Out – Money transferred from one City fund to another. Differs from revenue and expense in that it is a reallocation from one category to another, such as General Fund money that is transferred for use in the Capital Improvement program is neither an expense of the General Fund, nor a revenue of a Capital Project Fund. VLF – See MVLF. Working Capital – The difference between current assets and current liabilities in Enterprise Funds (versus Net Operations in Governmental Funds). Measures the relatively liquid portion of total Enterprise Fund capital.