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FY 2017-18 Adopted Operating & Capital Budget C ITY OF Californi a 333 3 SARATOGA CITY COUNCIL Emily Lo Mary-Lynne Bernald Mayor Vice Mayor Manny Cappello Howard Miller Rishi Kumar Council Member Council Member Council Member Operating & Capital Summary Budget for Fiscal Year July 1, 2017 to June 30, 2018 Prepared under the direction of: James Lindsay ............................................................................................................................. City Manager Mary Furey ............................................................................. Finance & Administrative Services Director Tony McFarlane ..................................................................................................................... Finance Manager 13777 Fruitvale Avenue, Saratoga, CA 95070 www.saratoga.ca.us 444 4 CITY OF SARATOGA TABLE OF CONTENTS 555 5 TABLE OF CONTENTS INTRODUCTION City Manager’s Budget Message .................................................................................................................................................. 11 FY 2016/17 Accomplishments ..................................................................................................................................................... 14 FY 2017/18 Initiatives .................................................................................................................................................................... 15 Financial Overview ........................................................................................................................................................................... 16 Capital Budget Highlights .............................................................................................................................................................. 25 Government Finance Officers Association Budget Award ................................................................................................... 27 History & Culture of Saratoga....................................................................................................................................................... 28 City Commissions ............................................................................................................................................................................ 33 Strategic Goals & Objectives ......................................................................................................................................................... 35 Budget Process Overview ............................................................................................................................................................... 40 Budget Calendar ............................................................................................................................................................................... 42 Fund Descriptions ............................................................................................................................................................................ 44 Budgetary Fund Structure .............................................................................................................................................................. 47 Department to Fund Relationship ............................................................................................................................................... 48 List of Funds ...................................................................................................................................................................................... 49 List of Programs ............................................................................................................................................................................... 50 Fiscal Management Policy Statements ...................................................................................................................................... 53 Fund Balance Reserve Policies ...................................................................................................................................................... 63 CIP Project Process Policy .............................................................................................................................................................. 74 Gann Appropriation Limit ............................................................................................................................................................. 79 Gann Limit Resolution .................................................................................................................................................................... 82 Annual Budget Resolution ............................................................................................................................................................. 83 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION FINANCIAL SUMMARIES Total Revenues and Expenditures Total Fund Activity Summary ....................................................................................................................................................... 89 Total Revenues – by Fund .............................................................................................................................................................. 90 Total Expenditures – by Fund ....................................................................................................................................................... 92 Total Revenues – by Category....................................................................................................................................................... 94 Total Expenditure – by Category ................................................................................................................................................. 95 General Fund Revenues and Expenditures General Fund Revenues – by Department ................................................................................................................................. 96 General Fund Expenditures – by Department .......................................................................................................................... 97 General Fund Revenues – by Category ....................................................................................................................................... 98 General Fund Expenditures – by Category ................................................................................................................................ 99 General Fund Tax Revenues per Capita – Cities of Santa Clara County ....................................................................... 100 General Fund Tax Revenues – 10 Year History of Key Tax Revenues ............................................................................. 101 General Fund – Fund Balance Activity ...................................................................................................................................... 102 CITY OF SARATOGA TABLE OF CONTENTS 666 6 Operating Transfers Schedule of Interfund Transfers ................................................................................................................................................ 103 Fund Balance Total Fund Balance Activity Summary - by Fund .................................................................................................................. 104 Fund Balance - 5 Year Comparative Balances ....................................................................................................................... 106 Departmental Budgets Department Revenues – by Program ........................................................................................................................................ 108 Department Expenditures – by Program ................................................................................................................................. 110 SUPPLEMENTAL INFORMATION Employee Information Summary of Employee Salary & Benefits ................................................................................................................................. 114 Total Funded Positions by Department ................................................................................................................................... 120 Staffing by Department – Five Year History ........................................................................................................................... 122 Staffing by Fund – Five Year History ........................................................................................................................................ 123 Major Revenue Information General Fund Revenues ................................................................................................................................................................ 126 Non-General Fund Revenues ....................................................................................................................................................... 132 Capital Revenues ............................................................................................................................................................................ 133 Long Range Financial Planning General Fund Five Year Forecast ............................................................................................................................................... 136 DEPARTMENTAL BUDGETS OVERVIEW Department / Program List ............................................................................................................................. 143 Organization Chart ............................................................................................................................................. 145 COUNCIL & COMMISSIONS Council & Commissions Overview .................................................................................................................. 147 City Council .......................................................................................................................................................... 151 City Commissions ............................................................................................................................................... 155 CITY MANAGER’S DEPARTMENT City Manager’s Department Overview ............................................................................................................ 159 City Manager’s Office ......................................................................................................................................... 165 City Clerk .............................................................................................................................................................. 171 Public Information Office .................................................................................................................................. 175 CITY OF SARATOGA TABLE OF CONTENTS 777 7 ADMINISTRATIVE SERVICES DEPARTMENT Administrative Services Department Overview ..................................................................................................................... 179 Finance .............................................................................................................................................................................................. 185 Human Resources .......................................................................................................................................................................... 189 Administrative Services ................................................................................................................................................................ 193 Office Support Services ............................................................................................................................................................... 197 Information Technology Services .............................................................................................................................................. 199 IT Equipment Replacement ........................................................................................................................................................ 203 COMMUNITY DEVELOPMENT DEPARTMENT Community Development Department Overview ................................................................................................................. 207 Development Services ................................................................................................................................................................... 213 Advanced Planning ........................................................................................................................................................................ 217 Code Compliance .......................................................................................................................................................................... 221 Building & Inspection Services ................................................................................................................................................... 225 PUBLIC WORKS DEPARTMENT Public Works Department Overview ......................................................................................................................................... 229 General Engineering ...................................................................................................................................................................... 235 Development Engineering ............................................................................................................................................................ 239 Environmental Services ................................................................................................................................................................ 243 Streets & Storm Drains ................................................................................................................................................................. 247 Parks & Landscape Maintenance ................................................................................................................................................ 251 Vehicle & Equipment Maintenance ............................................................................................................................................ 255 Vehicle & Equipment Replacement ........................................................................................................................................... 259 Landscape & Lighting Districts ................................................................................................................................................... 262 RECREATION & FACILITIES DEPARTMENT Recreation & Facilities Department Overview ........................................................................................................................ 265 Recreation Services ........................................................................................................................................................................ 271 Teen Services ................................................................................................................................................................................... 275 Facility Rentals ................................................................................................................................................................................ 279 Facility Maintenance ..................................................................................................................................................................... 283 Facility Furniture, Fixtures & Equipment (FFE) Replacement ........................................................................................... 287 PUBLIC SAFETY DEPARTMENT Public Safety Department Overview ......................................................................................................................................... 291 Public Safety Services .................................................................................................................................................................... 295 Emergency Preparedness ............................................................................................................................................................. 301 CITY OF SARATOGA TABLE OF CONTENTS 888 8 NON-DEPARTMENTAL Non-Departmental Overview ....................................................................................................................................................... 305 General Administration ................................................................................................................................................................ 309 Legal Services .................................................................................................................................................................................. 313 Community Grants ........................................................................................................................................................................ 317 Community Events ........................................................................................................................................................................ 319 Emergency Operation .................................................................................................................................................................... 323 Risk Management/Liability Insurance ...................................................................................................................................... 325 Workers Compensation Insurance ............................................................................................................................................ 329 General Obligation Bond Debt Service ..................................................................................................................................... 333 CAPITAL IMPROVEMENT PLAN Capital Improvement Plan Overview ........................................................................................................................................ 337 Streets Projects ............................................................................................................................................................................... 347 Parks & Trails Projects .................................................................................................................................................................. 423 Facility Improvements Projects .................................................................................................................................................. 467 Administrative & Technology Improvements Projects ........................................................................................................ 503 REFERENCE SECTION City Statistics ................................................................................................................................................................................... 544 List of Acronyms ............................................................................................................................................................................ 554 Glossary ............................................................................................................................................................................................ 556 CITY OF SARATOGA 9 INTRODUCTION SECTION CITY OF SARATOGA INTRODUCTION SECTION 10 CITY OF SARATOGA INTRODUCTION SECTION 11 C ITY H ALL 13777 F RUITVALE A VENUE S ARATOGA , C ALIFORNIA 95070 (408) 868 -1200 May 17, 2017 Honorable Mayor and Council Members, Celebrating 60 years of incorporation last fall was a good reminder of Saratoga’s founding philosophy: City government should be small, efficient, and unobtrusive, yet meet the essential needs of its residents. Over time, some of those specific needs have shifted with transitions in the Saratoga community. Though much has changed in the last 60 years, some resident needs remain the same, such as public safety, maintaining the City’s roads and infrastructure, and overseeing development. Moreover, the core values of Saratoga’s founders seem to transcend time as these principles continue to be relevant in Saratoga today. These values have undoubtedly left a mark on City policies, including the Fiscal Year (FY) 2017/18 budget. This budget strives to align with the City’s founding principles through a mix of fiscal stewardship, forward- thinking, adaptability, and responsiveness. Streets are one of the most visible and fundamental services provided by the City as they are used daily by residents going to work, school, or completing everyday errands. Consequently, improving the conditi ons of our local roads has been a top budget priority the past two years with the City Council appropriating $1.3 million (M) in FY 2015/16, $1.5 M in FY 2016/17, and supporting $2 M for roadway resurfacing and restoration in FY 2017/18. The condition of our local roads is measured by a Pavement Condition Index (PCI). Coming out of the 2008-2010 recession, the PCI of Saratoga’s roads dropped to a 69 rating for the first time in many years. I am very pleased to report that the City’s average PCI is now at 71, which is a “Good” rating based on the Metropolitan Transportation Commission’s rating system. The Council’s continued commitment and fiscal stewardship are directly responsible for this significant increase in the quality of our local roads. Furthermore, an investment in our roads today represents a significant cost savings in the future. Delaying maintenance of our roads would exponentially increase road maintenance costs. Another continuing budget priority is paying down the City’s pension liability with the California Public Employee’s Retirement System (CalPERS). The CalPERS retirement plan is structured as a defined benefit plan, which means the plan provides benefits that are calculated based on a formula of age, years worked, and salary earned rather than accounting for individual members’ contributions and investment earnings in a savings plan, such as what occurs with a 401k-style plan. During the recent recession years, a combination of factors, including decreasing asset valuations and changing actuarial assumptions, led to a gap between CalPERS pension assets and liabilities. This gap is known as an Unfunded Accrued Liability (UAL). In addition to several pension reform measures, CalPERS raised employer contribution rates and implemented rate-smoothing policies in their effort to keep the pension plan sustainable. In late 2014, CalPERS notified member agencies that these methods had proven to be insufficient, and member agencies would now be required to contribute payments toward their unfunded liabilities over thirty-year periods. For Saratoga, the UAL would grow to $7.7 M by June 30, 2015. Once again, the Council demonstrated unprecedented fiscal stewardship by paying down the UAL with a one -time $3.3 M payment in early 2015, and committing to annual payments of $500,000 toward th e remaining balance over fifteen (15) years. We now know that subsequent actuarial assumption changes and discount rate revisions have increased the UAL substantially, and future shortfalls CITY OF SARATOGA INTRODUCTION SECTION 12 will add to this burden. Council remains committed to paying more than the minimum required contribution in their effort to reduce the UAL’s overall cost, and to stabilize liability payments. For FY 2017/18, Council has committed to a $750,000 payment. Council will consider the revised UAL information, which will arrive summer 2017, to establish future direction. Though the City is making strides to pay down its own UAL, CalPERS pension costs and liabilities for the Santa Clara County Sheriff’s Office will increase at a much higher rate than the City’s due to enhanced law enforcement plans and the County’s growing UAL. I anticipate those costs being passed through to the three cities that share the law enforcement services agreement with the Sheriff’s Office in future years. Preliminary analysis suggests the cost of Sheriff services will increase by 30 -40% over five years. Staff will be analyzing the Sheriff’s UAL and contract cost increases further in FY 2017/18 to better prepare for the upcoming impacts. While law enforcement service costs continue to increase, the quality of service we receive from the Sheriff’s Office is excellent. Captain Urena and his staff at the West Valley Station have been very supportive of the growing number of neighborhoods that have formed Neighborhood Watch Groups. Increased awareness and great detective work have led to a notable decrease in the number of residential burglaries in the City. The City Council continues to support this effort with the creation of a citizens’ Public Safety Task Force and annual grants to support the Neighborhood Watch Groups. The City has also become more involved with supporting residents that have received Community Emergency Response Team (CERT) training and will be implementing a neighborhood based operations plan with CERT members. A strong connection with neighborhoods is vital for a successful and resilient community in a city, like Saratoga, that takes pride in a small and unobtrusive local government. Effective communication between the City and residents is also key to a thriving community. As the way people communicate and receive information has changed, local governments have had to adapt. Self- publishing, providing information where people like to find it, communicating in a timely manner, and proactively engaging the public are all important strategies to effectively communicate with residents. In FY 2015/16, the City included a Public Information Office program within the budget for the first time to emphasize the importance of communication and to capture the increased staff hours and expenditures that are necessary to execute a proactive communication program. Staff hours in this program have increased in the proposed FY 2017/18 budget as 100% of the Administrative Analyst position in the City Manager’s Office will be allocated to the program. Communication is just one of many investments in the community the Council has prioritized over the past several years. The continued strength in the local economy has affor ded the Council opportunities to re-establish a City- wide public art program and continue to invest in solutions to address mobility challenges of our aging population. The first installation of public art, the PLACE bench on loan from Montalvo Arts Cente r at the Saratoga Library, was a great success. The Council provided grant funding to support the Peck Bronzes planned for installation at Blaney Plaza as well as funding to begin a utility box art program in FY 2017/18. Senior mobility is a growing challenge in Saratoga and throughout the County. A number of specific needs for seniors were identified through the Saratoga Senior Taxi Pilot Program that was funded and completed in FY 2016/17. Two of the biggest needs identified were (1) a common information source or concierge service to assist seniors with existing transportation options and services, and (2) a reliable door -to-door transportation service that can accommodate the unique needs of seniors. The Council has committed to a second pilot program in FY 2017/18 to address these specific needs and is in discussion with Santa Clara County, the Valley Transportation Authority, neighboring West Valley cities, the Saratoga Area Senior Coordinating Council, and West Valley Community Services to identify collaborative solutions. CITY OF SARATOGA INTRODUCTION SECTION 13 The continued priorities in public safety, communications, and senior mobility combined with additional priorities in public art and building strong neighborhood connections, all are significant community enhancements that will be primarily supported by the City Manager’s Office with a new Deputy City Manager position included in the FY 2017/18 budget. This administrative support is critical to the success of these initiatives. The FY 2017/18 budget is a milestone. After several years of strong financial growth, the City is in a position to make investments in the community during FY 2017/18, while still addressing the City’s long -term liability and infrastructure needs. As a result, the City can respond to the des ires of the community and uphold the quality of life for Saratoga residents without impacting fiscal stability in the near term. Ultimately, this represents an ongoing commitment to the founding principles and intrinsic values of the Saratoga community to provide essential services in an efficient and discreet manner. It is my privilege to present to you and the Saratoga community the Proposed Operating and Capital Budgets for FY 2017/18. The preparation of these documents is a significant effort from ou r dedicated City staff and I thank them for a job well done. Sincerely, James Lindsay City Manager CITY OF SARATOGA INTRODUCTION SECTION 14 CITY OF SARATOGA INTRODUCTION SECTION 15 CITY OF SARATOGA INTRODUCTION SECTION 16 FINANCIAL OVERVIEW GENERAL FUND NET OPERATIONS FY 2017/18 General Fund budgeted funding sources exceeds budgeted funding uses by $405,2294. This budget funds ongoing operational functions and services with dedicated taxes, program fees, service charges, permits, and various other standard funding sources. These revenues are budgeted conservatively, while expenditures are fully funded to provide City services. The resulting budgeted Net Operations is the result of these conservative budget practices. Typically, the fiscal year ends with higher than budgeted excess funding. These Net Operations are then allocated as defined in the General Fund Reserve Policy. Most excess funding goes to the Capital Project Reserve. The Council then allocates the Capital Reserve funds at the Council Retreat held in late January or early February for capital and efficiency project use in the following budget year. This allocation is represented as the Transfer to Capital Project Funds in the adjacent schedule. Notable Operational Changes This year’s budget includes new and additional funding support for a number of programs. A new Public Art ad hoc Council Committee was funded with $15,000. The America in Bloom program was granted a total of $25,000 for beautification supplies and associated event costs. Funding for the Traffic Safety engineering services ha s risen to $95,000 in the FY 2017/18 budget in response to the jump in community traffic safety requests. A $20,000 grant was set aside to fund a Sr. Transportation Initiative, and another $10,000 was allocated to fund assorted volunteer project grants, such as Eagle Scout or church volunteer improvement projects. Staff time for new initiatives has also increased. The annual State of the City event takes months of planning to prepare. The Neighborhood Watch Program and Public Safety Task Force, the Weed Abatement program overhaul, revamping the Code Compliance program, and the Arrowhead Community Facility District and bond issuance effort are managed by staff. Most visible to the community are the enhanced communication and outreach efforts: social media platforms, videotape productions, better visual content, website update and management, and a new online monthly newsletter. A new Deputy City Manager position was added to manage the increase in staff responsibilities. For a high-level summary perspective, the graph on the following page depicts the historical General Fund Revenues versus Expenditures trend line – net of Transfers and Use of Fund Balance, to show the results of the City’s operational sustainability over the last ten years. The graph begins in FY 2007/08, the first year of the TEA partial funding restoration, and then drops into the beginning of the recession the following year. The three-plus year recession shows that although operational expenditures were held very close to revenues, the City did manage its way throu gh the financial downturn. FY 2011/12 shows the initial economic turn-around with property tax and development revenues climbing up from the slump. This economic climb has continued through to the proposed budget year of FY 2017/18, both with increasing revenues and increasing expenditures, however the revenue climb appears to be leveling out starting in FY 2016/17. The FY 2014/15 expenditure spike is an anomaly caused by a $3.3 million dollar payment to CalPERS to pay down almost 43% (at that time) of the City’s Unfunded Accrued Liability (UAL). To make this payment, $2.4 million of Fund Balance Reserves was used, meaning true operational expenditures were $17.4 million rather Total Revenues 20,777,773$ From Fund Balance Environmental Reserve 50,000 Capital & Efficiency Project Reserve 1,530,000 Total Funding Sources:22,357,773$ Total Expenditures 20,422,544 Transfers Out To Capital Project Funds 1,530,000 Total Funding Uses:21,952,544$ NET OPERATIONS:405,229$ GENERAL FUND CITY OF SARATOGA INTRODUCTION SECTION 17 than almost $19.9 million. If the graph was adjusted for this anomal y, the trend line would appear as an almost straight line up to the estimated FY 2017/18 expenditures. The narrowing of the gap in FY 2016/17 revenues and expenditures portrays a leveling of revenues. The near touching of the lines in FY 2017/18 reveals the expectation this flattening revenue stream will continue in conjunction with the City’s practice to budget revenues conservatively, while providing adequately for workplan expenditure costs. REVENUES The chart on the right shows the City’s total revenue by fund type to illustrate the magnitude of General Fund revenues in comparison to other fund types. General Fund Revenues are “general” in nature and provide funding for a majority of the City’s functions and services over a broad spectrum of activities. Because of this, this Financial Overview section focuses on the General Fund. Other fund types, by concept, are limited to specific purposes. For example, Special Revenue Funds– the Landscape and Lighting Districts – receive property assessment revenues that must be used for lighting and landscape maintenance services within the specific district’s property. Internal Service Funds receive charge-back funding to provide a specified type of service, or to replace assets, in support of operations. The General Obligation Bond Debt Fund receives tax assessments to pay the 2001 Library Bond’s debt obligations. Capital Improvement Program (CIP) Funds are comprised of projects with stated scopes of work and funding sources. Dedicated revenues such as Gas Tax, Road Impact Fees, and grants, as well as General Fund reserve transfers provide funding for the capital project work. General Fund - In the General Fund, Property Tax revenues make up the largest revenue category, followed by 2) Franchise Fees, 3) Charge for Services, 4) Fees, Licenses & Permits, and 5) Sales Tax. These top five revenue sources comprise 89% of General Fund Revenue. Other revenue categories, such as rental income, transient occupancy tax, and construction tax, are also important, but fluctuations in these revenues do not individually impact the City’s fiscal sustainability. With property taxes alone making up more than 56% of the General Fund Revenues, a clear understanding of this revenue source is paramount. CITY OF SARATOGA INTRODUCTION SECTION 18 Saratoga’s Property Tax - Saratoga is a bedroom community with just over 30,000 residents. Saratoga residents enjoy their quiet neighborhoods nestled against the Santa Cruz Mountain foothills, and their nearby commute to Silicon Valley companies where many are em ployed. The City is well known for its safety, thousands of beautiful and affluent high-end homes, quiet residential neighborhoods, richly landscaped roadways, finely manicured parks, and numerous hiking trails that lead to spectacular overlook vistas. Housing prices are at a premium due to its highly ranked school system, and the diversity of cultures makes Saratoga an interesting, lively, and welcoming community for all ages. The quaint, historic downtown Village provides fine dining establishments and wine-tasting shops, and is the gateway to the historic Hakone Japanese Garden, the Mountain Winery and Montalvo Arts Center entertainment venues, and numerous open space trails within the Santa Cruz Mountains. The abundance of activities and positive characteristics combine to make Saratoga a highly desirable place to live, and is reflected in Saratoga’s housing prices, and subsequently, its Property Taxes. Santa Clara County oversees the property tax collection and distribution process on behalf of the State of California. The County distributes the property taxes paid by Saratoga property owners to multiple agencies and funds. Due to special legislation passed 30+ years ago, Saratoga and three other small Santa Clara County cities (Los Altos Hills, Cupertino, and Monte Sereno) only received a portion of the minimum 7% tax allocation prescribed by State law. When Proposition 13 was passed in 1978, the legislation held cities to the tax rates that were in place in the prior year. Saratoga, along with the cities of Cupertino, Los Altos Hills, and Monte Sereno, were among the cities in Santa Clara County that had no or very low property taxes. To mitigate this, legislation was passed in 1979 to bring no/low tax cities up to the minimum property tax rate of 7%. However, the legislation provided an exception that allowed Counties to retain the increase in property tax allocations if they choose to forego Trial Court funding. Because Santa Clara County would receive more funding by retaining Property Tax from the four no/low tax cities, than from Trial Court funding, they chose to retain the property tax, thereby limiting the amount of property taxes these four cities were to receive to 55% of the 7%. Throughout the years, the four cities launched collaborative lobbying efforts to introduce and pass legislation that would treat Saratoga, Cupertino, Los Altos Hills, and Monte Sereno like all the other no/low tax cities, and receive the minimum 7% of the property tax collected in the respective cities. Efforts were in part successful in late 2006 as the full 7% was restored, however the amount restored was burdened with the County’s ERAF rate of 40+% rather than the City’s much smaller ERAF rate of between approximately 9 and 17%. The County rate resulted in a significant shortfall, so the four cities continued to press for the full reinstatement of the 7% TEA funding. Fortunately, strong property tax revenue growth after the recession brought a financial momentum that helped convince State legislators they could afford to reinstate the four cities’ share of property tax revenue. Legislation was passed as part of the FY 2015/16 budget trailer bill that restored the funding back to the cities at an incremental 20% per year over the next five-year period. When enacted, the restoration was valued at an additional $660,000 of property tax revenue to the City each year when fully restored. This amount grows each year with the increase in assessment values. CITY OF SARATOGA INTRODUCTION SECTION 19 Property Tax Revenue Trends – Since the recession, property taxes have grown extraordinarily fast; between 6.2% and 9.6% each year. With the added bonus of the TEA reinstatement and ERAF allocations , revenues have been phenomenal. In FY 2016/17 Property Tax revenue is expected to grow by more than $750,000 from the prior year, due to a one-time ERAF payment of $187,000 and the second 20% TEA allocation of approximately $130,000. Primary factors for the revenue increase is strong market demand driving home prices higher, and the ownership turnover, which has generated record high Transfer Tax receipts. While these factors are still in play, Construction Tax revenues and development related revenue is dropping. While it had been tracking with the rise in home ownership turnover, there is a marked decline in FY 2016/17, indicating Saratoga’s strong housing boom may be slowing down. With this potential cooling in the housing market, Property Tax revenue projections for FY 2017/18 are conservative. Secured Property Tax growth is projected at a 3% increase plus the additional TEA allocation; however, Document Transfer Tax is projected to decline from a slowdown in home ownership turnover. Development Revenues- With housing turnover, many homeowners undertake remodeling projects and upgrades. This connection is directly linked to the heightened level of activity and increased revenues through development applications, plan checks, and building permits since the end of the recession. However, this high level of development activity that increased both the Community Development and Public Works’ development program revenues over the last five years dropped in FY 2016/17. Planning Services revenue held fairly steady with the prior year, however Building Permit revenue decreased by $300,000. This marked change signals the City should expect reduced service levels in the near future. Hence, workload and revenues are expected to remain fairly flat into the near future. The following schedule provides a high-level summary of General Fund Revenues and Transfers In. GENERAL FUND REVENUES & TRANSFERS IN Note - Schedule updated to actuals and adopted amounts FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 General Fund Revenues Actuals Actuals Actuals Adjusted Actuals Adopted Property Tax 9,526,189 10,436,621 11,301,176 11,331,350 12,003,942 12,110,800 Sales Tax 941,350 1,224,427 1,189,398 1,125,000 1,185,035 1,150,000 Transient Occupancy Tax 257,010 309,618 319,109 315,000 343,618 315,000 Business & Other Taxes 565,261 556,654 578,652 605,000 513,431 505,000 Franchise Fee Tax 2,112,596 2,234,068 2,235,514 2,242,113 2,356,539 2,349,429 Intergovernmental 466,424 586,596 547,075 437,000 584,480 372,000 Fees, Licenses & Permits 1,524,041 1,409,199 1,544,844 1,486,280 1,500,843 1,407,400 Charge for Services 1,942,388 1,789,649 2,079,939 1,849,127 1,666,164 1,682,215 Interest 40,003 45,229 79,341 55,000 102,787 147,500 Rental Income 440,287 474,750 527,596 497,714 494,176 463,802 Other Sources 452,817 452,734 379,952 280,302 361,396 274,627 Total GF Revenues 18,268,366 19,519,545 20,782,596 20,223,886 21,112,412 20,777,773 Fund Transfers In 167,050 - 267,918 - 55,384 - Total Rev & Transfers 18,435,416 19,519,545 21,050,514 20,223,886 21,167,796 20,777,773 Use of (Addition to) Fund Balance Reserves Environmental Reserve 50,000 50,000 50,000 50,000 50,000 50,000 CIP Reserve 280,880 1,633,345 1,777,896 1,410,648 1,410,648 1,530,000 Total Operating Sources 18,622,676 23,251,862 22,864,970 21,644,534 22,378,444 22,357,773 CITY OF SARATOGA INTRODUCTION SECTION 20 FY 2017/18 revenues are displayed in the far right darker brown column. The FY 2016/17 current year Adjusted Budget and Actual Revenues are the lighter brown two columns to the immediate left. Actual revenues for the three prior fiscal years are in the unshaded first, second, and third columns of numbers. Other notable revenue changes as shown on the preceding spreadsheet include: In comparing next fiscal year’s budget to the prior (current) year’s budget, it is useful to understand the following years budget is strongly guided by current year projections at the time of preparation, not the e actual amounts shown on the schedule.  Sales Tax revenues are projected to decline in FY 2017/18. The final closeout payment of the State’s Triple Flip program was booked in FY 2016/17. The proposed budget amount reflects status quo receipts less the extra payment.  Business & Other Taxes also show a $100,000 decline. This is attributable to a decline in Construction Tax revenues, which is working in conjunction with the reduction in development related fees – under Fees, Licenses, & Permits and Charge for Services revenues.  The remainder of the budgeted revenues reflect status quo or modest increases. Budgeted hotel tax (TOT) revenue is flat, and TOT is expected to maintain this higher revenue level for the near future as premier entertainment events continue to be held at nearby venues, and th e City’s parks and trails continue to grow in popularity. These nearby attractions add to the desirability of lodging in the village. Unfortunately, with only two small inns, revenue growth is limited. EXPENDITURES The City’s General Fund expenditure schedule on the following page provides a high-level summary.. The Adopted FY 2017/18 budget in the darker brown far right column, the FY 2016/17 current year Adjusted Budget and Actual Expenditures are the two lighter brown columns to the immediate left, and the actual expenditures for the three prior fiscal years are in the first three unshaded columns of numbers. The FY 2017/18 budget, salaries and benefits account for 38.3% of budgeted expenditures. The Sheriff’s contract follows with 27.0% of the budget. Internal Service Fund charges account for 12.9% and represents the City’s reimbursement for support services and fixed asset and infrastructure replacement costs. This ranges from insurance payments to Vehicle & Equipment replacement allocations, to Facility Maintenance charges. These expenditures are reflected as revenues in the Internal Service Funds. Consultant and Contract Services comprise 10.3%, and represents the compilation of many separate contract services, from attorney services to traffic engineering, to janitorial services. In comparing the adopted budget to prior years, it is useful to understand the budget, as originally proposed, is based on the estimated prior year’s year-end actuals and projected growth or decline for the next fiscal year. The prior year’s adjusted budget (adopted budget plus Council approved changes) provides the expenditure plan – and in total, represents the spending authority. In certain areas, such as Salary & Benefits, the comparison against the budget year provides a more useful assessment, as actual expenditures can differ significantly if vacancies occur during the year. Additionally, contingent funding is included in the budget for termination or vacation pay-out amounts, which may or may not be utilized. This built-in contingency typically results in a higher budgeted salary and benefits than actuals. The unused funding contributes to year-end net operations. Overall, General Fund budget expenditures increased 2.25% from the prior year budget. Three components made up the majority of the increase combined with two major decreases to result in a net $450,000 increase: Salary & Benefits ($236,000), UAL payment increase ($250,000), and Sheriff Services ($143,000). Salary increases are explained in the following section. The Sheriff’s annual increase represents the County’s COLA and PERS cost increases for the deputies, and a portion for operational cost increases (rent, utilities, etc.). The level of service provided to Saratoga remains the same for FY 2016/17. CITY OF SARATOGA INTRODUCTION SECTION 21 GENERAL FUND EXPENDITURES & TRANSFERS OUT Note - Schedule updated to actuals and adopted amounts Salary & Benefits For Salary and Benefits, the Proposed Salary & Benefit budget grew by $236,000 for FY 2017/18. Salary increases support the addition of a full-time Deputy City Manager position, cost-of-living-adjustments (COLA), step and longevity increases, and promotions. Benefit increase support medical insurance premium and pension cost increases. FTE Changes –Saratoga’s practice is to keep employee count stagnant, utilizing contract staff and consultant services to address the ebbs and flows in the workload and economy. On occasion, significant growth in workload demands force a reconsideration of staffing assignments, and personnel count. In FY 2016/17, the growing demands in the City Manager’s Department were addressed with the addition of a temporary assistant. With more and more new initiatives requiring program development and oversight, Council supported the addition of a Deputy City Manager position in the FY 2017/18 budget. Fortunately, Saratoga is able to keep its salary expenditure growth low as its minimal services structure incorporates contracting out many of its services. While it does not work best for all situations (i.e. for program development and oversight duties) contracting out allows the City to increase and decrease service levels as needed—either seasonally, during economic downturns, for special projects, or to backfill positions when necessary. While contracting for services creates savings in employee and equipment expenses, the FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 General Fund Expenditures Actuals Actuals Actuals Adjusted Actuals Adopted Salary & Benefits 6,408,421$ 6,484,653$ 6,814,803 7,592,718 7,171,061 7,833,226 UAL Payment - 3,294,619 500,000 500,000 500,000 750,000 Materials & Supplies 236,925 195,949 207,649 323,820 248,600 339,090 Fees & Charges 759,799 732,387 835,636 961,238 939,859 847,112 Consultant & Contract Svs 2,054,371 1,966,367 2,115,325 2,256,345 2,123,635 2,095,153 Sheriff Services 4,225,024 4,611,024 4,973,080 5,374,750 5,375,092 5,517,918 Meetings, Events & Training 80,468 73,668 59,431 140,525 87,606 145,800 Community Grants & Events 169,725 162,516 202,525 243,381 222,127 247,751 Operating Grant Expenditures - - 34,762 - - - Fixed Assets - 35,343 - 10,000 - 20,000 Internal Services Charges 2,202,844 2,325,823 2,455,758 2,535,472 2,535,472 2,626,494 Total Expenditures 16,137,576$ 19,882,349$ 18,198,969$ 19,938,250$ 19,203,452$ 20,422,544$ Streets CIP 150,000 662,753 1,099,000 1,305,000 1,305,000 1,034,000 Park & Trails CIP 45,880 443,445 295,000 75,000 75,000 420,000 Facilities CIP - 339,900 233,896 190,648 190,648 - Admin & Technology CIP 85,000 120,000 265,000 50,000 50,000 76,000 CIP Reserve Transfers 280,880$ 1,566,098$ 1,892,896$ 1,620,648$ 1,620,648$ 1,530,000$ Developmt Reserve Transfer - - 60,000 - - - General Fund Transfers Annual Facilities CIP 100,000 100,000 - - - - Transfer to Street CIP - - 64,760 - - - Total General Fund Transfers 100,000$ 100,000$ 64,760$ -$ -$ -$ Total Transfers Out 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 Total Expenditure & Transfers 16,518,456$ 21,548,447$ 20,216,625$ 21,558,898$ 20,824,100$ 21,952,544$ Net Operations 2,104,220$ 1,703,415 2,648,344$ 85,636$ 1,554,343$ 405,229$ CITY OF SARATOGA INTRODUCTION SECTION 22 price of contract services is directly tied to changes in fuel and consumer prices and therefore costs increase over time – which collectively can be significant. The City works diligently to manage costs and service levels, thereby controlling financial impacts. Unfunded Accrued Liabilities - CalPERS’ 2014 Actuarial Report modified the way CalPERS assesses the employer’s portion of the pension benefit contribution. CalPERS had separated the normal cost (the actual cost attributable to the pension cost under current assumptions) from the unfunded liability that had resulted from prior years’ accumulated investment gains, losses, and assumption changes. CalPERS identified and presented the employer’s unfunded accrued liability portion as a separate dollar amount, and then continued to assess the normal cost as a percentage rate of salary. With this change, CalPERS presented a payment plan for employers to fund the liability: the UAL would have a 30 year refunding period. Flat dollar amount payments would increase for the first five years, stay level for twenty years, and then decrease in the final five years. In each subsequent year, the UAL is reassessed, and a new UAL base amount is added that reflects the difference between investment returns and the asset amounts required. The UAL represents a debt the City owes to CalPERS. The amount is adjusted by investment returns and actuarial assumptions. Each year, the unfunded liabilities increase by the assumed liability, and decrease by the investment earnings and payments made. Repaying the liability over 30 years would double the total cost of the liability. To reduce the total cost, the City Council decided to make an immediate $3.3 million payment toward the CalPERS Employers Unfunded Accrued Liability to reduce the amount of liability outstanding and the overall cost. This decision saved the City about $3.6 million in discount rate interest. In addition, the City Council reduced the 30 year payment schedule down to 15 years with a plan to pay a total of $500,000 per year toward the outstanding UAL instead of the employer’s normal cost expense. In FYs 2015/16 and 2016/17, $500,000 payments were made as planned. Unfortunately, CalPERS then changed the playing field. A new actuarial assumption study in 2014 determined that many assumptions, such as life expectancy, length of service, retirement age, future salary increases, and investment returns required adjustment. These assumption changes led to an additional pension liability base in the FY 2015/16 actuarial valuation report. CalPERS then determined that the 30 -year rolling amortization repayment plan they had just implemented would not bring the plan to a sustainable level quickly enough. They made changes that further impacted required contributions. The rate smoothing amortization periods changed from rolling to fixed 30-year periods for experience gains and losses. Changes in actuarial assumptions would be amortized separately over 20 years. Market rates would be used rather than actuarial rates. And most significantly, the 7.5% discount rate, similar to a Return on Investment rate, was too high. CalPERS determined the 7.5% rate must be lowered to 7% in the short term for the pension plans to remain sustainable, and to 6.5% over the long term. The 7% would be implemented over seven years. Then, there would be continual small decreases when economic conditions were right, to reduce it down to 6.5%. The CalPERS board put this decision forth in FY 2016/17, providing preliminary projection worksheets so agencies could determine their own short-term impacts for the upcoming budget preparations. CalPERS will provide an updated Actuarial with the new liability and required contribution amounts later this summer. The following CalPERS chart provides both the impact these changes will bring and Saratoga’s payment plan strategy. The color shades represent the discount rate’s three-step phase-in over a five-year period, meaning the third step finishes the phase-in period in year 7. For reference, FY 2017/18 is year 2. The blue line represents Saratoga’s accelerated payment scheduled to reduce the UAL’s overall cost and payment length, and to stabilize payments. Subsequent assumption changes and investment returns may impact this payment plan strategy in future years. CITY OF SARATOGA INTRODUCTION SECTION 23 Required Contribution Increase Impact for Three Added Bases Vs. Saratoga’s Accelerated Payment (blue line) $750,000 - $ 500.000 As the chart illustrates, the lowering of the discount rate will be phased-in with a three-step implementation. The impact of this change to Saratoga is that employer overall pension costs will increase by about 40%. Saratoga’s UAL liability is expected to increase somewhere in the 30 -40% range, and the annual required contributions (payroll based contributions) will also increase under the new required contribution amount due. The increases will compensate for the sustainability changes of lower discount rates and shorter 20 - year payment recovery period. Although liability details were not yet fully provided, Council addressed this impact immediately by increasing the annual UAL payment to CalPERS up to $750,000, thereby exceeding the FY 2017/18 required contribution of $189,000 by $560,000. This excess payment will help to reduce the UAL’s future annual required contribution amounts, and the total overall cost of the pension liability. Operational Expenditures Budgeted FY 2017/18 operational expenditures are fairly status quo. Expenditure variations are explained in detail in the individual department and program sections in the Departmental Budgets section beginning on page 139. Public Safety Public safety continues to be a top priority for City Council members, residents, and the Santa Clara County Office of the Sheriff. The City has contracted with the Sheriff’s Office for public safety services since the City was incorporated in 1956. This partnership has been rewarding in multiple ways. As a small city, Saratoga saves millions of dollars a year by contracting for public safety rather than employing an in-house police department. The Santa Clara County Sheriff is a large organization with 1300 sworn officers. The Sheriff delegates resources to its contract cities in the county on an as-needed basis, providing flexibility for those times where more resources are needed, while keeping services minimal during the majority of the time. The Sheriff’s Office provides all the services that an internal police department would —patrol, traffic enforcement, and investigations—but with the added benefit of crime analysts, technology services, public outreach, and other valuable law enforcement services. In FY 2017/18,the Sheriff’s Office contract will provide 20,060 general law enforcement service hours, 4,195 traffic enforcement hours, 2,400 investigative hours, 340 reserve activity hours, and a full-time School Resources Officer. CITY OF SARATOGA INTRODUCTION SECTION 24 For FY 2017/18, while the City will see a 2.66 % cost increase from the prior year. The Sheriff Contract accounts for just 27% of the City’s General Fund budget. This compares favorably to other Santa Clara County municipalities that dedicate upwards of 40% or more of their General Fund budgets for police services. In addition, the cost for Sheriff Services per resident is the lowest, or near the lowest, of all the Santa Clara County cities each year. Not only does the City see considerable cost savings through its agreement with the Santa Clara County Office of the Sheriff, crime rates also remain low compared with surrounding municipalities. This is due to being part of a broader law enforcement organization. Deputies are aware of criminal activity occurrin g throughout the county, not just Saratoga. This broader communication alerts deputies and crime analysts to targeted areas, criminal patterns, and crime activity connections and suspects. Year after year, Saratoga is recognized for its low crime rate at both State and National levels from various public safety organizations. The impacts of the upcoming UAL changes are expected to affect the Sheriff Office in greater proportions due to their enhanced safety plans. Future costs will be painful; a rough estimate puts the annual increase at $1.5 Million in five years. Once more detailed information is known, the financial impacts will be brought to Council for review. Fixed Assets Only one fixed asset is scheduled for purchase in the FY 2017/18 General Fund budget: a $20,000 foundation pad for the utility shed for Quarry Park purchased in FY 2016/17. Only new fixed assets are funded through a department’s operating budget. Once purchased, annual replacement costs are charged to the “owners” over the asset’s lifetime to accumulate funding for the asset’s future replacement. Replacements are purchased through Internal Service Funds. Internal Service Funds The City utilizes Internal Service Funds (ISF) to provide centralized cost centers for shared expenses and services in order to efficiently track costs and manage resources. Costs are then allocated back to the operational programs based on usage to more accurately determine cost of services. These charges are expenses in the General Fund programs, and revenues in the Internal Service Funds. The ISF include two Insurance funds: Risk Management and Workers Compensation, four Service/Support funds: Office Support, IT Services, Vehicle & Equipment Maintenance, and Facility Maintenance Funds, and three Asset Replacement funds: the Vehicle & Equipment Replacement Fund, the Information Technology Equipment Replacement Fund, and the Facility FF&E (Furniture, Fixture, & Equipment) Replacement Fund. Other than the Office Support Fund, the service/support ISF funds have staff assigned to the programs. Ongoing increases in salary & benefits, as well as all other operational costs contribute to increasing expenditures in the Funds each year. With the City’s reserve policies calling for ISF reserves to be funded at a working capital levels, the funds may require service charge-back adjustments to right-size the fund balances. At this time, most ISF funds fulfill the working capital requirement, and current year funding levels are expected to reflect operational expenses. General Fund Transfers Out General Fund Transfers are generally limited to moving money from the General Fund into the Capital Improvement Program. Typically, this money comes from prior year General Fund net operations. In FY 2017/18, $1.64 million of Capital Improvement Project Reserve funds will move to the CIP. With the exception of moving prior year General Fund net operation funding to the CIP, the City has a practice of receiving dedicated revenues into the capital project fund in which they are used. This practice provides better audit trails and transparency of City finances. CITY OF SARATOGA INTRODUCTION SECTION 25 CAPITAL BUDGET HIGHLIGHTS STREETS PROGRAM Annual Roadway Improvements This $1.96 million project will fund ongoing street resurfacing and repairs in order to maintain the City’s pavement infrastructure. In Fiscal Year 16/17, Santa Clara County voters voted to increase the local sales tax rate and the Road Recovery and Accountability Act passed increasing the gas tax rates and establishing new fees to fund transportation related projects over the next ten fiscal years. Combining these new funding sources with the City’s existing revenues will bring the funding level of this program near the $2 million goal that Council set in Fiscal Year 2015/16. Prospect Rd/Saratoga Ave Median Improvements This $4.75 million project will fund improvements along the Prospect Road/Saratoga Avenue corridor. Improvements will include increased access for pedestrians and bicyclists through additional roadway medians, sidewalks, ADA ramps, and bicycle loops at intersections. This project will improve safety by physically reducing 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. A $4.2 million OBAG grant and Gas Tax revenues of $545,000 fund this project. Saratoga Village Crosswalk & Sidewalk Rehabilitation This $382,000 project will fund crosswalk and sidewalk improvements in Saratoga Village. Similar to other Village Sidewalk & Pedestrian Enhancement projects, this project will install bulb outs, enhanced crosswalks, decorative landscaping, and benches near 5th and 6th Streets. Upon completion in 2020, the aesthetic improvements will make Saratoga Village a more desirable place to gather. A $338,000 OBAG grant and $44,000 from the CIP reserve fund this project. Annual Retaining Wall Maintenance & Repairs This $350,000 project will annually fund the maintenance and repairs of city-owned retaining walls. Over the past two years, rainy winter seasons have caused slides and fallen trees that have compromised some retaining walls. Annual maintenance and repairs to the City’s retaining walls will prevent them from failing, reducing significant damage to streets and property. An annual transfer of $200,000 from the CIP reserve funds this project. CITY OF SARATOGA INTRODUCTION SECTION 26 PARKS AND TRAILS PROGRAM Annual Park & Trail Repairs This $100,000 annually funded project will support infrastructure maintenance and replacements related to the City’s parks, trails, grounds and medians. Park infrastructure includes playground equipment, and tennis and basketball courts. Infrastructure for trails include pathways, signage and parking lots. Annual maintenance and replacement of infrastructure related to parks, trails, grounds, and medians helps to keep them functioning properly for the enjoyment of Saratoga residents and visitors. An annual transfer of $100,000 from the CIP reserve funds this project. Hakone Gardens Koi Pond Improvements This $250,000 project will fund improvements to the Koi Pond located at Hakone Gardens. The Koi Pond was analyzed during the development of the Hakone Gardens Master Plan and it was determined that the water filtration system needs replacement for the health of the Koi Pond ecosystem. In addition to the plumbing, mechanical and electrical upgrades are needed for the filtration system. The project will also include the construction of a small structure to house all of the necessary equipment. Transfers of $110,000 in Park Development fees, $43,000 from the CIP reserve and $97,000 from the closed Hakone Gardens Miscellaneous Improvements funds this project. Saratoga-to-the-Sea Trail – Design This $250,000 project will fund the design, and environmental review phase of a trail connecting Quarry Park to Sanborn Park and the Skyline-to-the-Sea Trail. The Saratoga-to-the-Sea Trail is part of the Santa Clara County Trail Master Plan. Upon completion, hikers will be able to start in Saratoga Village, hike through Hakone Gardens and Quarry Park, and connect to the Skyline-to-the-Sea Trail in Sanborn Park. A $250,000 transfer from the CIP reserve funds this project. Saratoga Village to Quarry Park Walkway - Design This $50,000 project will fund the design and environmental review phase of a pedestrian walkway from Saratoga Village to Hakone Gardens and Quarry Park. This walkway will enhance and enliven Saratoga Village by bringing foot traffic to the Village. The walkway will also serve as a critical starting point for the Saratoga-to-the-Sea trail. A $50,000 transfer from the CIP reserve funds this project. CITY OF SARATOGA INTRODUCTION SECTION 27 CITY OF SARATOGA INTRODUCTION SECTION 28 HISTORY AND CULTURE OF SARATOGA ocated 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. The City of Saratoga is an attractive, affluent residential community with a small-town vibe in the midst of the world famous Silicon Valley. The Village, Saratoga’s historic downtown district, is filled with unique shops and fine dining establishments. It is the gateway to several distinctive destinations:  Hakone Gardens, the oldest Japanese-style residential gardens in the Western Hemisphere.  Villa Montalvo, former home of Senator James Duval Phelan is host to an art gallery, an artist-in-residence program, concert series, and 175 acres of park grounds and hiking trails.  The Mountain Winery, a popular winery and event venue that is host to weddings, wine tastings, and world class concerts in the spring and summer. 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. L CITY OF SARATOGA INTRODUCTION SECTION 29 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. 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 conducive 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 CITY OF SARATOGA INTRODUCTION SECTION 30 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 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 30,569 (January 1, 2017) 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 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. And Hakone Gardens, as shown in the picture, is the oldest Japanese-style residential garden in the Western Hemisphere. The garden is maintained and run by the Hakone Foundation, and lies just outside of the Village offering classes, festivals, Japanese culture, and peaceful, contemplative walks as one strolls through the finely manicured gardens. City Government The City of Saratoga was incorporated in 1956 and operates under a Council/Manager form of government. As a bedroom community, the City government receives most of its revenue from property tax, which was quite limiting as the City’s share of property tax receipts has until recently, been only 5.45% of the 1% CITY OF SARATOGA INTRODUCTION SECTION 31 assessment Saratoga property owners pay. Over a five-year period beginning in FY 2015/16, Saratoga will receive incremental increases until reaching the full 7% “low tax” city share. This “low tax” status limits the services the City can provide to its residents. With these financial restraints, staffing is low for a city this size, with many services provided on contract. In addition, with the relatively late incorporation of the city after the commu nity had developed, many school districts and utility districts were already in place, meaning more than one pre-existing district may serve within City of Saratoga boundaries. For instance, Public Safety services are provided by the Santa Clara County Fire Department and the Santa Clara County Sheriff’s Office, with animal control services provided by the City of San Jose. City departments are structured by function, and include Public Works – which oversees infrastructure maintenance and projects, Community Development – which guides the physical growth of the City through planning, zoning, and building inspection, Recreation and Facilities – which provides recreation programs and maintains city facilities, Administrative Services – which provides oversight and support for the City’s financial, administrative, and technology operations, and the City Manager’s Department – which provides oversight and guidance for City functions, as well as legislative and administrative support for the City Council and Commissions. Transportation Saratoga is part of a comprehensive transportation network that links the City to other Silicon Valley cities and beyond through roadways, bikeways, and mass transit systems, including the bus and light rail systems, the CalTrain system, and to the Mineta International Airport in San Jose. Bus routes provide inter -city transportation needs with access to the Village, schools, the community college, and local office and shopping markets. Highway 85 runs through Saratoga, providing linkage to other area freeways and major cities. San Francisco is 47 miles north, and Santa Cruz is about 26 miles southwest. The tourist havens of Monterey and Carmel are approximately 65 and 73 miles south of Saratoga, respectively. Schools The City of Saratoga is served by 6 different schools districts, which include Saratoga Union School District, Cupertino Union School District, Campbell Union School District, Los Gatos-Saratoga High School District, Campbell Union High School District, and Fremont Union High School District. The schools in these districts that serve Saratoga residents are among the best in the nation. Saratoga High School and Monte Vista High School have been ranked by U.S. News & World Report within the top 100 schools in the country. CITY OF SARATOGA INTRODUCTION SECTION 32 City of Saratoga 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 the natural beauty of the City and its hillsides is preserved; Where historic assets are preserved and promoted; Where local commerce provides a vibrant presence in the Village and the other commercial areas; Where the orientation is toward the family; Where homes and neighborhoods are safe and peaceful; Where government is inclusive and values community involvement; Where desirable recreational and leisure opportunities are provided; Where quality education is provided and valued; Where value is placed on an attractive, well maintained and well planned community; Where government provides high quality, basic services in a cost effective manner; Where a small town, picturesque, residential atmosphere is retained; Where the arts and cultural activities which serve the community and the region are promoted; Where neighbors work together for the common good; 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. CITY OF SARATOGA INTRODUCTION SECTION 33 CITY COMMISSIONS & COMMITTEES Arts Ad Hoc Committee The Public Art Committee is comprised of two members of the City Council and was formed in 2016 to advise the City Council on opportunities for public art in Saratoga. The Committee meets as needed. Finance Committee The Finance Committee (previously termed the Finance Advisory 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 FY 2016/17, the Council restructured the Committee as a “Committee of the Whole” to allow all Council Members to attend a Finance Committee and comment if they so desire, although only the two appointed members may vote on recommendations and decisions. The two appointed Council members each serve one year terms of office; meetings are held monthly or on as as-needed basis. 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. Library Commission The five (5) member Library Commission provides counsel and recommendations on library policies, budgets, plans and procedures to the City Council, City staff, the Santa Clara County Library staff, and the Saratoga Library Supervisor. The Library Commission has no administrative authority over the library's operations but does participate in the general planning of the library operation and library-related programs and policies. One member is nominated by the City of Monte Sereno. 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 recommenda tions to the Saratoga City Council. 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. 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. CITY OF SARATOGA INTRODUCTION SECTION 34 Public Safety Task Force The City Council formed a five (5)-member Public Safety Task Force in 2016 to develop recommendations for enhancing public safety for the City Council to consider. The members of the Task Force were each nominated by a member of the City Council. and will serve in an advisory capacity until November 2016. The Task Force meets on the fourth Thursday of each month. Traffic Safety Commission The Traffic Safety Commission investigates, reviews, and analyzes traffic safety issues raised by the Community members and Public Safety Agencies. The seven (7) 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. 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. The Youth Commissioners participate in community activities and serve as a liaison between the teen community and the City Council. CITY OF SARATOGA INTRODUCTION SECTION 35 STRATEGIC GOALS & OBJECTIVES CITY OF SARATOGA INTRODUCTION SECTION 36 CITY COUNCIL’S STRATEGIC GOALS & OBJECTIVES The Saratoga City Council’s Strategic Goals and Objectives support the City’s vision, and mission, and represent the foundation on which 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. I City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. A. Responsive and accountable to the community B. Effective City Leadership C. Organization Performance Management D. Transparent Government E. Civic Engagement F. Community Partnerships II Fiscal Stewardship: Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvement. A. Strengthen the City's Fiscal Health and Stability B. Preserve Essential Services C. Effectively manage revenue streams D. Expend and use fiscal resources responsibly E. Maintain fund balance reserves F. Nurture an environment which attracts, retains, and expands economic opportunities III Public Safety: Provide for a safe and secure community. A. Preservation of life and property B. Crime Prevention C. Emergency Preparedness IV Facility & Infrastructure: Maintain the City's facilities and public infrastructure in a safe, sustainable, and cost effective manner. A. Excellent Street System B. Safe, well-functioning, and beautiful roadway Infrastructure C. Well-maintained, safe parks D. Useful and safe trails and open space E. Clean, safe, and pleasant City facilities F. Well-maintained vehicles and equipment G. Support externally funded community infrastructure improvements CITY OF SARATOGA INTRODUCTION SECTION 37 V Community Heritage: Honor Saratoga's heritage by preserving significant historic assets. A. Enhance policies to maintain the City's historic heritage B. Enhance standards to maintain architectural attractiveness C. Protect Saratoga's natural beauty VI Community Enrichment: Foster a community with an enriched and diverse culture and engaged community. A. Engaged and vibrant community B. Enhance and promote quality of life in the community C. Promote health as a community value D. Cultivate organizational and leadership potential in the community E. Foster a business-friendly environment VII Environmental Sustainability: Proactively support environmental sustainability efforts. A. Protect and optimize the City's natural resources and environment through sustainable practices B. Establish and implement comprehensive, long-range environmental sustainability goals and policies C. Embrace environmentally friendly practices D. Educate the community on environmental issues CITY OF SARATOGA INTRODUCTION SECTION 38 CITY OF SARATOGA INTRODUCTION SECTION 39 BUDGET & FINANCIAL POLICY INFORMATION CITY OF SARATOGA INTRODUCTION SECTION 40 BUDGET PROCESS OVERVIEW he City of Saratoga adopts an annual Operating and Capital Budget and an annual budget update of the five-year Capital Improvement Plan. The budgets are prepared with detail revenue and expenditure appropriations for the fiscal year beginning July 1st and ending June 30th, and is presented as a summary level budget document. Budget schedules are prepared on the same basis as the City’s financial statements, and in accordance with generally accepted accounting principles (GAAP). BUDGET PURPOSE The Operating and Capital Summary Budget and the Capital Improvement Plan serve as the City’s financial plan, as well as a policy document, a communications tool, and an operations guide. Developed with an emphasis on long term financial stewardship, sustainability, service delivery, and program management, a fundamental purpose of these documents is to provide a linkage between the services and projects the City intends to accomplish, and the resources committed to get the work done. The format of the budget facilitates this linkage by clearly identifying program purpose, key projects, and workplan goals, in relation to revenue and expenditure appropriations. BASIS OF BUDGETING AND ACCOUNTING Developed on a program basis with fund level authority, the operating budget represents services and functions provided by the City in alignment with the resources allocated during the fiscal year. The Capital Budget is funded and defined by its’ approved projects, with ongoing or incomplete projects re-appropriated into the following fiscal year. Basis of Accounting and Budget refers to the timing factor concept in recognizing transactions. This basis is a key component of the overall financial system because the budget determines the accounting system. For example, if the budget anticipates revenues on a cash basis, the accounting system must record only cash revenues as receipts. If the budget uses an accrual basis, accounting must do likewise. This consistency is also reflected in the City’s Comprehensive Annual Financial Report (CAFR), the State Controller’s Annual Cities Report, and all other report documents. Government budgets and accounting uses a mix of accounting methods. A hybrid cash and accrual accounting system known as ‘Modified Accrual Basis’ recognizes revenues when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 45 days after fiscal year-end. Licenses, property taxes and taxpayer assessed tax revenues (e.g., franchise taxes, sales taxes, and transient occupancy tax) are all considered susceptible to accrual and so are recognized as revenues in the period earned/collected. Revenues from grants and donations are recognized in the fiscal year in which 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 they have matured. The Modified Accrual Basis is used for governmental types of 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, e.g. 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, whereas 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 whereby revenue budget projections are developed 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 used in Saratoga, Fiduciary Funds are also budgeted using the modified accrual basis. This includes Trust Funds, which are subject to trust agreement guidelines, and T CITY OF SARATOGA INTRODUCTION SECTION 41 Agency Funds, which are held in a custodial capacity involving only the receipt, temporary investment, and remittance of resources. SUMMARY OF BUDGET DEVELOPMENT The City develops budgets with a team-based budgeting approach. The City Manager and Administrative Services Director guides the process through budget development; however program budgets and workplans are developed with each department’s director or program manager’s oversight and expertise. This approach allows for hands-on planning and creates a clear understanding for both management and staff of a program’s goals and functions to be accomplished in the next budget year. THE DEVELOPMENT PROCESS Typically, both the Operating and Capital Budget and Capital Improvement Plan (CIP) annual development processes begin in early January as the City Manager works with the City Council to develop and refine initiatives and directives for the upcoming budget year. The Five-Year financial forecast is developed concurrently and brought to the annual Council Retreat for Council review. This forecast provides an overview of service level operations and helps to guide the discussion on upcoming budget direction. The CIP is also reviewed during this time to determine funding capabilities, project priorities, and to refine project workplans. Although the CIP Budget is a stand-alone body of work, CIP projects impact the City’s ongoing operations and are therefore incorporated into the Operating and Capital Summary Budget document through the resulting financial appropriations and service level requirements. In February, the budget preparation process begins in earnest. Budget assumptions, directives and initiatives are provided to set the City’s overall objectives and goals. Over the next several months, staff identifies and analyzes program revenue and expenditure projections in coordination with Finance/Budget staff and City management. Capital improvement projects are assessed and refined, and CIP funding and appropriation requirements are finalized. Through rounds of budget briefings and revisions, operational and capital workplans are reviewed and compiled, and staff finalizes the proposed program and capital budgets. Financial summary information is finalized, and the proposed budget document is produced for City Council review. Finally, a summary level Public Hearing presentation is prepared to highlight the notable budget impacts in the forthcoming year. BUDGET ADOPTION The City Council reviews the proposed Operating and Capital Summary Budget, and the Capital Improvement Plan for the five-year period in a public hearing at the second Council meeting in May. Notice of the hearing is published in a local newspaper at least ten days prior to the Council’s public hearing date. The public is invited to participate and copies of the proposed budgets are available for review on the City’s website, in the City Manager’s office and at the budget hearing. Under requirements established in Section 65401 of the State Government Code, the City’s Planning Commission also reviews the proposed Capital Improvement Plan and reports back to the City Council as to the conformity of the plan with the City’s Adopted General Plan. Final council-directed revisions to the proposed budget are made and the budget documents are resubmitted to the Council for adoption, again in a publicized public hearing prior to the beginning of the fiscal year. Section 2-20.050(i) of Saratoga’s City Code requires the City Manager to prepare and submit an annual budget to the City Council. This is accomplished in June, when the final proposed budget is formally submitted to the Council in the subsequent public hearing. The approved resolutions to adopt the CIP and operating budgets and the appropriation limitation (Gann Limit) follow later in this section. BUDGET AMENDMENTS During the course of the fiscal year, economic and workplan changes or unanticipated needs may necessitate adjustments to the adopted budgets. The City Manager is authorized to transfer appropriations between categories, departments, projects, and programs within a fund in the adopted Operating Budget, whereas the City Council holds the authority for Operating Budget appropriation increases and decreases, and transfers between funds, and for both scope and funding changes to capital projects in the Capital Budget. CITY OF SARATOGA INTRODUCTION SECTION 42 BUDGET CALENDAR December January February March Budget Office to prepare worksheets, gather information, and begin development of financial forecast and budgets for following fiscal year, including:  Draft operating budget revenue and expenditure projections  Prior fiscal year-end fund balance available for CIP Budget Office to prepare Mid-Year Budget Report and Five-Year Financial Forecast for Council review at annual retreat For Operating Budget:  Budget Office to provide budget information to staff on budget assumptions, directives, initiatives, and goals  Budget Office and Program Managers to prepare Internal Service and Equipment Replacement Fund analyses and schedules, and finalize internal service rates  Budget Office to prepare operating budget worksheets for updates, including departmental/program narratives, staffing and financial worksheets, asset and staffing requests For Capital Budget:  Budget Office to prepare updated five-year CIP project worksheets Budget Office and departments to review current User Fee Schedule for appropriate changes in preparation of annual update process For Operating Budget:  Budget Office to finalize Internal Service Fund program workplans  Budget Office to prepare budget worksheets for departments, including staffing and internal service program costs  Departments to prepare draft revenue and expenditure workplans For Capital Budget:  Project Managers to prepare funding, scope of work, and cost estimates for new proposed projects For Operating Budget:  Departments to finalize budget work plans  Review proposed budgets with City Manager  Departments and Budget Office to finalize budget changes For Capital Budget:  Project Managers to determine year end CIP project estimates  City Manager to finalize new proposed CIP projects CITY OF SARATOGA INTRODUCTION SECTION 43 April May June July/ August/ September For Operating Budget:  Departments to finalize program narratives and performance measures  Budget Office to compile final program narratives, financial and supplemental schedules, and financial budget summaries and charts for City Council Budget Study Session For Capital Budget:  Project Managers to finalize new project information for CIP submittal  Public Works Manager to bring new projects to Planning Commission meeting for General Plan conformance review City Council to hold Public Hearing for Annual User Fee Update City Council to hold Budget Study Session For Operating & Capital Budgets:  Final budget briefing with City Manager  Budget Office to incorporate Council directed changes into proposed budgets and prepare final documents for Public Hearing presentation City Council to hold Proposed Budget Hearing For Operating & Capital Budgets:  City Council revisions incorporated into budget documents  City Council adoption of Operating and Capital Budget  City Council adoption of Gann Appropriation Limit  City Council adoption of Annual Investment Policy Update  City Council adoption of GO Bond Tax Assessment Rate Finance to:  Finalize prior fiscal year revenue and expenditures  Determine operating budget carryforwards  Finalize capital project expenditures and roll-over amounts Budget Office to:  Finalize detail budgets and distribute to internal users  Prepare final financial and supplemental schedules, charts, and reference materials for budget documents  Finalize the Adopted Operating & Capital Summary Budget documents  Post Adopted Operating and Capital Budget document on website  Submit budget award application to GFOA CITY OF SARATOGA INTRODUCTION SECTION 44 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 (utilities, stadiums and golf courses are prime examples). Trust and Agency funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent. The 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 Special Revenue Funds Debt Service Funds The General Fund serves as the City’s chief 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 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:  Landscape & Lighting District Funds – Saratoga currently has 29 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 are used to account for the acquisition of resources and the payment of long-term debt on City obligations.  2001 Series General Obligation Debt – established to account for the obligation incurred under the citizen approved 2001 General Obligation Bond debt for the Library remodel. CITY OF SARATOGA INTRODUCTION SECTION 45 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.  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 cost 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 – represent services provided to internal users and functions as a cost- reimbursement device. Internal Service Funds account for operational support activities for the purpose of recovering the cost from the user, and for the user to identify its 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.  IT Services Fund – Information Technology Services supports the delivery of technology based services and infrastructure, includin g desktop support, network systems, technology upgrades and initiatives, communication systems, and associated IT equipment. CITY OF SARATOGA INTRODUCTION SECTION 46  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. R eplacement costs are charged to departments over the asset’s life span, reflective of usage.  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.  Facility 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 f or 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 Agency 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 account for assets held in the capacity of an agent for individuals, governmental entities, and non-public organizations. In past years, the City administered two of these fund types, however KSAR funds were returned to the non-profit, and Library Capital Project funds were used for capital projects as intended, so both agency funds are now closed. CITY OF SARATOGA INTRODUCTION SECTION 47 BUDGETARY FUND STRUCTURE General Fund Special Revenue Funds Debt Service Fund Capital Improvement Plan Funds Primary Operating Fund Landscape & Lighting District Funds Bond Repayment Fund Capital Improvement Programs 1 General Fund 1 GO Bond Debt Street Improvements 1. City Funded CIP 2. Grant Funded CIP 3. Gas Tax Funded CIP Park Improvements 4. City Funded CIP 5. Grant Funded CIP 6. Tree Fine Funded CIP 7. Park In Lieu Fund CIP Faciltiy Improvements 8. City Funded CIP 9. Grant Funded CIP Admin & Technology 10. City Funded CIP 11. Grant Funded CIP Internal Service Funds Enterprise Funds Trust Funds Agency Funds None None None Insurance Funds 1. Risk Management 2. Workers Compensation Operation & Maintenance 3. Office Support 4. IT Services 5. Vehicle & Equip Maint 6. Facility Maint Asset Replacement Funds 7. Veh & Equip Replacemt 8. IT Equip Replacemt 9. Facility FFE Replacemt Operational and Asset Funding Programs PROPRIETARY FUNDS FIDUCIARY FUNDS GOVERNMENTAL FUNDS 29 Assessment District Funds CITY OF SARATOGA INTRODUCTION SECTION 48 DEPARTMENT TO FUND RELATIONSHIP PROPRIETARY FUNDS FIDUCIARY FUNDS DEPARTMENTS General Fund Special Revenue Capital Improvement Debt Service Internal Service Funds Trust / Agency Council & Commissions P City Manager P P Administrative Services P P P Community Development P P Public Works P P P P Recreation & Facilities P P P Public Safety P Non-Departmental P P P P GOVERNMENTAL FUNDS CITY OF SARATOGA INTRODUCTION SECTION 49 LIST OF FUNDS GENERAL FUND ........................................................................................................................................................................... 111 SPECIAL REVENUE FUNDS Landscape & Lighting Assessment District Funds (multiple) ............................................................................. 2xx INTERNAL SERVICE FUNDS Risk Management / Liability Fund............................................................................................................................. 611 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 FFE Replacement Fund ................................................................................................................................... 633 DEBT SERVICE FUNDS 2011 Series G.O. Bonds ................................................................................................................................................ 311 TRUST AND AGENCY FUNDS None currently ....................................................................................................................................................................... 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 Gas Tax Fund .................................................................................................................................................................. 481 CITY OF SARATOGA INTRODUCTION SECTION 50 LIST OF PROGRAMS GENERAL FUND Council & Commissions City Council .................................................................................................................................................................... 1101 Commissions ................................................................................................................................................................. 1201 City Manager’s Departments 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 Recreation & Facilities Department Recreation Services ...................................................................................................................................................... 6101 Teen Services ................................................................................................................................................................ 6102 Facility Rentals .............................................................................................................................................................. 6201 Public Safety Public Safety Services .................................................................................................................................................. 7101 Emergency Preparedness ........................................................................................................................................... 7102 Non Departmental General Administration .............................................................................................................................................. 8101 Legal Services................................................................................................................................................................. 8202 Community Grants....................................................................................................................................................... 8301 Community Events ....................................................................................................................................................... 8302 Emergency Operations ................................................................................................................................................ 8901 CITY OF SARATOGA INTRODUCTION SECTION 51 INTERNAL SERVICE FUND PROGRAMS Administrative Services Department Office Support Fund .................................................................................................................................................... 3102 Information Technology Services Fund ................................................................................................................. 3201 IT Equipment Replacement Fund ............................................................................................................................ 3202 Public Works Vehicle & Equipment Maintenance Fund ............................................................................................................... 5202 Vehicle & Equipment Replacement Fund............................................................................................................... 5203 Recreation & Facilities Department Facility Maintenance Fund ......................................................................................................................................... 6202 Facility FFE Fund ........................................................................................................................................................... 6203 Non-Departmental Risk Management / Liability Fund........................................................................................................................... 8401 Workers Compensation Fund ................................................................................................................................... 8501 SPECIAL REVENUE FUNDS Public Works Landscape & Lighting Assessment District Funds .............................................................................................. 5302 CITY OF SARATOGA INTRODUCTION SECTION 52 CITY OF SARATOGA INTRODUCTION SECTION 53 FISCAL MANAGEMENT POLICY STATEMENTS With both a general management philosophy and Council goal to practice fiscal responsibility, the City of Saratoga’s conservative and cautious financial management is achieved through responsible, sustainable, and enforceable fiscal policies and internal controls to ensure prudent and efficient use of resources. These policies and controls represent long-standing accounting, budgeting, debt, investment, and reserve principles and practices, and are the foundation upon which the City maintains its fiscal stability. Saratoga’s general fiscal management policy statements provide a summary overview of financial, operational, and budgetary management, in one comprehensive centralized format to act as guidelines and to assist elected officials and staff with understanding the City’s financial practices for fiscal operations. Detail level fiscal policies are administrative in nature and therefore not included in the budg et document. However, fiscal policies that rise to Council review and approval standards at a more specific level are incorporated into the budget document for annual adoption by Council. Currently this includes the Fund Balance Reserve Policy and the Capital Project Process Policy which follows this section. Other Council defined policies will be added as directed/approved. The Summary Fiscal Management Policy Statements in this document are organized into the following categories: General Financial Principles Appropriations and Budgetary Control Auditing and Financial Reporting Capital Improvement Plan Development Related Financial Policies Expenditures and Purchasing Fixed Assets and Infrastructure Internal Service Funds Long-Term Debt Revenues Risk Management Policies Treasury Management GENERAL FINANCIAL PRINCIPLES  The City’s fiscal policies are structured to ensure fiscal responsibility, accountability, transparency, and efficient use of resources. Fiscal policies are to be reviewed, update d, and refined as necessary, with general policy level decisions brought to City Council for review and approval, and administrative and operational level functions approved by the City Manager.  Proposed revisions to the Fiscal Management Policy Statements and Council Policies are provided to Council at the annual Council Retreat. Council members are to provide comments and concerns regarding revisions to the Mayor or City Manager at least two weeks prior to the budget study session to clarify or include on the agenda.  The City’s primary long-term financial goals are to maintain the City’s fiscal health, preserve essential services, reduce financial risk, and support short and long-term administrative, financial, and operational goals in a financially judicious manner. Long-term financial and infrastructure planning and the annual adoption of a structurally balanced budget provides the foundation to these long -term financial goals. The City shall promote and implement strong internal financial controls to manage risks and monitor the reliability and integrity of financial transactions and operational activities. CITY OF SARATOGA INTRODUCTION SECTION 54  Financial information shall be provided in a relevant, thorough, and timely manner, to effectively communicate the City’s financial status to the Council, citizens, employees, and all other interested parties.  Financial stability goals and judicious responsiveness shall be the foundation upon which proactive and advantageous financial decisions are made, and which guide the City’s response to local, regional, and broader economic changes through the years.  The City shall undertake, adopt, and integrate new initiatives or programs in a cautious, well planned manner to support the City’s long-term ability to maintain its essential services at the same level and quality required by its citizens.  The City Council’s financial and community goals, objectives, and policies are incorporated into and implemented with the development and adoption of the City’s Operating and Capital Budgets.  Efforts will be coordinated with other governmental agencies and joint power associations to achieve common policy objectives, create beneficial opportunities and services for the community, share the cost of providing governmental services, and support legislation favorable to cities at the state and federal level.  The City will seek out, apply for, and effectively administer federal, state, local, foundation, business, and private grants which address the City’s current priorities and policy objectives. APPROPRIATIONS AND BUDGETARY CONTROL  The City Council shall adopt an annual balanced operating budget and the first year of an integrated five-year capital improvement plan budget by June 30th of each year, to be effective for the following fiscal year running from July 1st through June 30th. Balanced budgets present budgeted sources in excess of budgeted uses. Budgeted “Sources” include Revenues, Transfers In, and Appropriated Uses of Fund Balance. Budgeted “Uses” include Expenditures and Transfers Out. Operati ng and Capital Budgets are to align with the City’s long-term financial goals.  Each year the Finance & Administrative Services Department provides a short recap of the prior -year budget, a mid-year budget status report, and an updated five-year financial forecast to the City Council at the Annual Council Retreat (scheduled in late January or early February ) to assist Council with formulating direction for long-range fiscal planning, Operating Budget development, and capital funding appropriations.  Budgets are prepared on the same basis of accounting used for financial reporting: governmental fund types (General, Special Revenue, and Debt Service) are budgeted according to the modified accrual basis of accounting; proprietary funds (Internal Service Funds) and fiduciary funds are budgeted under the accrual basis of accounting.  The Operating Budget is primarily funded with current year revenues. Dedicated fund balance reserves, such as the Carryforward or Fiscal Stabilization Reserves represent prior year savings designated for specific uses, which may be used to fund current year operational expenses, in accordance with their purpose, upon Council approval. Council may also approve the use of long-term debt for operational liabilities if they deem it fiscally prudent.  With funding for other committed reserves already in place, a minimal base amount of $500,000 is to remain in the Unassigned Fund Balance Reserve at year-end to provide a buffer for unanticipated operational shortfalls and unforeseen needs in the following fiscal year. CITY OF SARATOGA INTRODUCTION SECTION 55  The Capital Budget is funded with both prior year surplus funding and dedicated capital funding resources. Dedicated funding sources include Gas Tax (HUTA) revenues, road impact assessment revenues; project revenues and reimbursements; community benefit assessments; and federal, state, local, and private grants.  In practice, budgeted revenues are conservatively stated and budgeted expenditures are comprehensive, allowing for the annual operational and capital improvement goals to be completed. With effectively managed revenue streams and efficient use of resources, fiscal year-end operational budget surpluses are available to fund future capital improvement projects and contribute to the City’s fiscally responsible reserve accounts.  The City Council maintains budgetary control at the fund level; any changes in total fund appropriations during the fiscal year must be submitted to the City Council for review and Council majority approval. Operating Budget appropriations lapse at the end of each fiscal year unless specifically carried forward by appropriation in the following fiscal year’s budget. Capital Budget appropriations are structured as a multi-year workplan; therefore project expenditure balances are automatically ca rried forward to the following fiscal year as part of the annual budget adoption until funding is exhausted, modified, or the project is completed.  The City budget shall comply with the annual determination of the City’s appropriation limit calculated in accordance with Article XIIIB of the Constitution of the State of California and adopt an annual resolution to this effect.  The City Manager is authorized to implement the City’s workplan as approved in the adopted budget. Within a specific fund, the City Manager has the discretion to adjust appropriations between categories, departments, programs, and projects as needed to implement the adopted budget, provided no change is made to the total appropriation amount provided for any one fund. An example would be to backfill a vacant salaried position with a contract service, therefore shifting funds from wage and benefit appropriations to an operating expense expenditure within the General Fund appropriation. The City Manager also has the authority to withhold filling the position for a time if conditions warrant a delay.  Generally, recurring expenditures are funded with recurring revenues or revenues specifically designated for operational use. One time expenditures may be funded with one-time revenues or fund balances reserves. Fund balance reserves are to be used for non-recurring one-time expenditures and capital projects.  In compliance with Council’s Fiscal Stewardship goal, fiscal stability and sustainability principles are incorporated into budget planning. Appropriating adequate funds on an annual basis for the replacement and maintenance of assets through Internal Service Funds, prioritizing infrastructure maintenance and repair in the capital budget, and institutionalizing prudent payment strategies for long-term liabilities are foundational strategies of fiscal stability and sustainability.  In FY 2014/15 CalPERS notified the City that as of 6/30/2015, the City’s Unfunded Accrued Liability obligation of $7.7 million was to repaid over a thirty (30) year payment plan. Approximately 43% of the outstanding liability was immediately paid through the use of current year net operations and expendable reserve funding. Council also established an alternative repayment policy to pay the minimum payment amount to be equal to the amount due at the five-year mark to both lower the overall total long-term cost of the liability while maintaining fiscal stability into the future. However, because CalPERS revised their UAL estimates significantly as a result of actuarial changes and further investment losses, this UAL number grew significantly, necessitating an increase in the annual UAL excess contribution amount from $500,000 to $750,000 effective FY 2017/18. CITY OF SARATOGA INTRODUCTION SECTION 56  The City Council appropriates $50,000 annually to a ‘Council Discretionary account’ so that Council has funding available for unplanned expenditures. Council direction and consensus approval is required to utilize these funds. Unexpended appropriations are carried forward into the following fiscal year. Parks and Recreation Services are essential elements in meeting the City’s goal to enhance and promote quality of life in the community. The Recreation Department provides activities, programs, classes, and rental facilities to the entire Saratoga community, from infants to seniors, through various services. While these services innately benefit individuals, and would typically be 100% funded through user fees, Council recognizes the general community benefit and determined the Recreation Departme nt activities would function under a minimum cost recovery goal of 65%. This calculation is comprised of total program revenues and expenditures for the General Fund’s Recreation Services, Teen Services, and Facility Rentals programs, as all share the use of the building, equipment, staff, and purpose, and are therefore intrinsically connected in the analysis.  The Community Development Department strives to attain full cost recovery plus a $100,000 annual stipend for advanced planning updates, in recognition that development and building services are provided primarily for individual and monetary benefit rather than for the community’s benefit. Total department revenues in excess of total department expenses (net gain) are added to the reserve at year end, and up to one-third of the reserve fund balance may be used to offset a net loss at year end. AUDITING AND FINANCIAL REPORTING  California State statutes require an annual financial audit of the City’s financial records and transactions by independent Certified Public Accountants. The City shall comply with Generally Accepted Accounting Principles (GAAP) and produce annual financial reports pursuant to Governmental Accounting, Auditing, and Financial Reporting (GAAFR) guidelines. The independent auditor will issue an audit opinion to be included in the City’s Comprehensive Annual Financial Report (CAFR) testifying to the financial reports conformance with accounting principles.  Additional financial reports issued by the Auditor’s may include: Singe Audit Report (annual report of federal grant expenditures if in excess of the federal single audit limit is expended in a fiscal year), a Transportation Development Act (TDA) report (annual report of TDA fund expenditures), an Appropriations Limit review report (to establish tax revenue appropriation limit), and a Management report on the City’s Internal Controls.  The City shall submit the CAFR to the Governmental Finance Officers Association (GFOA) Financial Reporting Program each year for review, and if in compliance with the program’s requirements, to receive an award for meeting GFOA’s financial reporting standards.  Regularly scheduled external Financial Reports include the following:  State required Annual Cities Report and Annual Streets Report completed in conjunction with the year-end close  Quarterly SMIP (Seismic Motion) fee reconciliation reports; CASp (ADA Accessibility) reconciliation reports: and California Building Standard Commission (green building standards) reconciliation reports  Quarterly Use Tax Reports to remit uncollected sales tax to the State Board of Equalization  SB90 Mandated Cost reports for claims to comply with State regulated legislation  Annual UST Certification report to show fiscal responsibility for the City’s underground storage tanks  Annual Possessory Interest Report submitted to the County’s Assessor’s Office to report City owned leased property CITY OF SARATOGA INTRODUCTION SECTION 57  Regularly scheduled internal Financial Reports include the following:  Weekly check registers and monthly Cash and Investment Treasurer Reports are submitted for review and approval at City Council meetings.  Quarterly financial reports provide a status update on General Fund revenues and expenditures for the first, second, and third quarters.  A mid-year budget status report is presented to City Council in February each year to provide a comprehensive financial overview of the current year’s budget and to propose recommended budget adjustments as appropriate.  A year-end financial recap is provided after the City’s annual financial audit is completed. CAPITAL IMPROVEMENT PLAN  A five year Capital Improvement Plan (CIP) is updated annually in conjunction with the operating budget. The CIP reflects the current and changing needs of the community as well as enhancements to improve the quality of the community. The first year of the CIP is adopted to authorize appropriations.  The CIP is categorized into programs by project type. The four programs are: Street Improvements, Park & Trail Improvements, Facility Improvements, and Administrative & Technology Improvements.  All projects within the CIP programs are appropriated, managed, and tracked separately, and each project’s financial status is reported on a monthly basis in the Treasurers Report.  Project updates are recorded in the annual Capital Budget, with narrative, timeline, and financial summary information updated with each published budget document.  Capital improvements that specifically benefit a select group of users and/or are fee-for-service based are to be financed through user fees, service charges, special assessments and taxes, or development impact fees.  The City shall identify and dedicate capital improvement related funding directly to the CIP and to maximize the use of grant funding for capital improvement projects.  Grants, insurance, or other reimbursement funding is to be returned to the expenditure’s funding source, unless otherwise directed by Council. For instance, Hillside Reserve funded projects that receive insurance reimbursement payments are to be returned to the Hillside Reserve, and grant reimbursements for projects funded through the CIP Reserve are to be returned to the CIP Reserve when payment is received.  After completion of the prior year’s audit and the General Fund’s priority funding requirements are met, the remaining net operations are moved into the Capital Project Reserve at year end. Use of the Capital Project Reserve for the subsequent fiscal year is reviewed and preliminary direction given by consensus of the City Council at the Annual Council Retreat. Final CIP funding direction is provide through the budget adoption.  Council has designated the following capital projects as fundamental to maintaining City infrastructure on an ongoing basis, and shall therefore have priority status for available Capital Improvement Reserve funding: The below funding guidelines shall be reviewed by Council for final CIP Budget direction each fiscal year: CITY OF SARATOGA INTRODUCTION SECTION 58  $200,000 – Annual Infrastructure Maintenance & Repairs (for Sidewalk , Storm Drains, Curb & Gutter, and Bridge Maintenance)  $50,000 – Roadway Safety and Traffic Calming  $50,000 – Risk Management and Mitigation Projects  The Annual Roadway Maintenance and Repair (ARM&R) CIP project is the primary CIP project funded in support of Council’s goal to maintain Saratoga city streets at an average 70 PCI rating. On occasion, separate street specific resurfacing projects are established due to funding requirements; they also contribute toward this goal. The ARM&R project was originally established with a $1 million minimum annual funding goal from dedicated Gas Tax Revenue and Solid Waste Services contract assessed Vehicle Impact Fees. However, after decreases in the PCI, Council has established a new goal of $2 million annually with the FY 2016/17 budget. Council is to consider this goal in conjunction with funding requests during the CIP budget discussion each year. This project shall encompass roadway repairs, resurfacing, and rehabilitation projects, traffic light, curb and gutter, and other miscellaneous repairs, striping and signage, and assorted street materials and supplies. DEVELOPMENT RELATED FINANCIAL POLICIES  The Development Reserve was established to provide stability for multi-year development related services. The reserve is funded by Community Development Department revenues in excess of expenses at fiscal year-end. The reserve is available for use in those years where a shortfall occurs; when development revenues fall below development expenses. Use of the reserve for operationa l support is limited to a maximum of 1/3 of the reserve balance in any given fiscal year; with any budgeted use of the reserve automatically rescinded up to the amount development revenues are sufficient to cover General Fund net operations. The reserve may also be utilized for other development related uses, such as funding development software upgrades or special projects, per Council direction. Additional information on this Development Reserve is located in the Fund Balance Reserve Policies section.  The Williamson Act, also known as the California Land Conservation Act, was passed by the California Legislature in 1965 to encourage rural & agricultural land owners to keep their land undeveloped. When land owners enter into a contract under the act, they benefit from lower property taxes, which are based on the property’s current use, rather than paying market value based tax rates. In exchange, the property is to remain undeveloped and continue to function in the same manner for the duration of the contract. Contracts run for 10 years and are automatically renewed unless the farmer or rancher cancels it. The City does not limit the number of Williamson Act contracts entered into each year.  The Mills Act is State-sponsored legislation granting local governments the authority to enter into an agreement with property owners to allow reduced property tax payments in return for the restoration and continued maintenance of their historic property. Since the agreement reduces property tax assessment, the City receives a smaller share of property tax revenue in comparison to a property that is assessed at market value. The City will allow approval of up to three Mills Act Contracts per year. EXPENDITURES AND PURCHASING  All expenditures shall be in accordance with the City’s purchasing policy, travel policy, credit card policy, contract policy and public contract code, state or federal law, or any other applicable guidelines or regulations.  Expenditures are managed at the program level. Program managers are to ensure expenditures do not exceed the budgeted workplan and must take immediate action if at any time during the fiscal year an CITY OF SARATOGA INTRODUCTION SECTION 59 operating deficit is projected at year-end. Corrective actions may include expenditure reductions, or with Council approval, budget adjustments, or service reductions.  The City’s current purchasing policy establishes purchasing authority levels, purchasing procedures, and procedural requirements, for the procurement of supplies, equipment, and services, in conformance with Federal and State codes and regulations, and City Ordinance No. 2-45.  Public Work projects governed by the State’s Public Contract Code are excluded from provisions of the City’s purchasing policy.  Guidelines established by the City’s Purchasing Policy directs the City’s departments to purchase the best value obtainable, securing the maximum benefit for funds expended, while providing all qualified vendors an equal opportunity to do business with the City.  Services and supplies purchases that exceed $5,000 require written quotes, and must be approved by the Purchasing Officer or designee, typically through the Purchase Order process. Documentation is to be retained by the department in accordance with the records retention policy and schedule.  Services, supplies, and fixed asset purchases exceeding $25,000 must be authorized by the City Council, unless purchase is specifically called out in the adopted budget or excluded under the Purchasing Policy.  The City departments shall conduct quarterly program and capital project reviews to determine if projected operating revenues and expenditures meet budgeted expectations. If an operating deficit is projected at year-end, the departments shall evaluate and implement corrective actions as needed, and notify Council if services will be impacted. FIXED ASSETS AND INFRASTRUCTURE  Tangible assets with a cost equal to or greater than $10,000 and a useful life of more than one year are considered fixed assets and added to the capitalization schedules. R epairs and maintenance of infrastructure assets will generally not be subject to capitalization unless the repair extends the useful life of the asset.  The City will sustain a long-range fiscal perspective through the use of a five-year Capital Improvement Plan designed to maintain the quality of City infrastructure, including streets, sidewalks, curbs and storm drains, lighting, building, parks, and trees, and through Internal Service Fund programs to both maintain and replace City building infrastructure, fixtures, and equipment, vehicles, and public works and technology equipment on an ongoing basis  A Capital Asset system will be maintained to identify all City assets, their condition, historical and estimated replacement costs, and useful life. Asset information is retained to provide information for preparation of financial statements in accordance with GAAP, with emphasis placed on completion of GASB 34 requirements.  Infrastructure management systems are to be developed and maintained to provide lo ng range financial and operational planning. These shall include Roadway System management programs, Storm Drain System management plans, Bridge replacements, Street Signal System replacements, and all other infrastructure categories that require significant financial resources to fund the eventual replacement needs.  Information Technology software, hardware, and auxiliary equipment and systems are to be maintained through the Operating Budget’s Internal Service Replacement Fund, whereas annual appropria tions in CITY OF SARATOGA INTRODUCTION SECTION 60 the Information Technology Services operating budget or departmental program budgets are to fund ongoing license, maintenance, and security costs. INTERNAL SERVICE FUNDS  Internal Services Funds are established to both equitably allocate operating costs to departments for support and maintenance services, and to stabilize and spread the City’s replacement and operational costs over fiscal years for the purpose of providing an accurate and balanced long -range fiscal perspective of the use of services and assets.  Vehicles, Equipment, and Building asset replacement and maintenance types of Internal Service Funds are structured to provide a consistent level of funding for asset and equipment replacement, and to ensure sufficient funding is available for the regular maintenance, repair, and replacement of the City’s vehicles, equipment, and building fixtures in an ongoing manner.  Technology and Office Equipment replacement and maintenance Internal Service Funds are structured to provide a consistent level of funding for the replacement of assets and projects, and to appropriately distribute support and maintenance costs to departments.  The Liability and Workers Compensation Insurance Internal Service Funds shall maintain adequate reserves to pay all valid self-insured claims and insurance deductibles, including those incurred but not reported, in order to keep the insurance funds actuarially sound.  Each Internal Service Fund will set recovery charges at rates sufficient to meet all operating expenses, depreciation, and fund balance reserve policy objectives. LONG-TERM DEBT  The City shall seek to maintain a high credit rating through sound financial practices as a foundational financial practice, and to maximize borrowing costs.  The City does not incur debt for operations or capital improvements except under extraordinary circumstances and with citizen support. Under these circumstances the City will seek voter approval for General Obligation (GO) Bond Debt for major infrastructure rehabilitation.  Long-term Financing Debt is typically incurred for capital improvements or special projects that cannot be financed from current or dedicated revenues, or for large liabilities resulting in significant financial impacts. In principal, long-term debt is to be used only if the debt service requirements do not negatively impact the City’s ability to meet future operating, capital, and cash reserve policy requirements.  Through City Council approval, the City may function as a bonding conduit for special assessment districts. This may occur when a neighborhood or area is seeking to improve private or cooperatively owned infrastructure, such as private roads or water system cooperatives. The City shall require full liability protection and cost recovery as necessary to protect the City and mitigate the cost associated with such actions.  The term for repayment of long-term financing shall: not exceed the expected useful life of the project; include financing payment terms at a manageable level; and, does not extend beyond functionally appropriate payment terms. CITY OF SARATOGA INTRODUCTION SECTION 61  The City will monitor all forms of debt in conjunction with budget development throughout the year, and will report concerns and remedies if necessary to the City Council.  The City will ensure compliance with bond covenants, providing financial information to reporting parties as necessary.  The City will comply with Government Code Section 43605 limitations on debt, which limits general obligation indebtedness to an aggregate 15% of the assessed value of all real and personal property of the City. REVENUES  The City will encourage a stable revenue system to offset short-run fluctuations in any one revenue source, in part through balancing revenue fluctuations to related operational fluctuat ions. This concept is applied in Community Development as net operational funding is held in reserve and utilized to fund operational expenses as needed.  Designated and legally restricted tax and revenue funding sources will be accounted for in the appropriate funds. General taxes and revenues not allocated by law or some other contractual agreement to other funds are accounted for in the General Fund. Dedicated Capital Project revenues are to be directly accounted for in the appropriate capital project fund, within a designated project.  A master schedule of User Fees is reviewed and presented to Council on an annual basis to adjust fees to an appropriate level. Operating departments shall review services and the existing fees to ensure discretionary services (not specifically waived or modified) reflect direct and reasonable indirect costs of providing such services.  The City typically establishes user charges and fees at levels that recover the direct and indirect activity cost of providing a service or product. The City also considers market rates and charges levied by other municipalities of similar size for like services in establishing rates, fees, and charges. As some services have partial cost recovery objectives (such as Recreation classes and facility rentals), cost recovery ratios will vary in accordance with policy objectives.  The City will follow an aggressive policy of collecting local taxes and revenues due to the City through persistent follow-up procedures, and external resources as necessary.  Donations may be accepted in accordance with the City of Saratoga Donation Policy most recently approved by the City Council. Under the current policy, unrestricted donations of $5,000 or less may be accepted or declined by the City Manager. Restricted donations of $500 or less may be accepted or declined by the City Manager. Unrestricted donations of more than $5,000 and restricted donations of more than $500 must be brought to the City Council for consideration. The City Manager may choose to request City Council consideration of any donation, regardless of value. RISK MANAGEMENT POLICY  The City is insured for up to $25 million of general liability, auto, and property damage claims through a Joint Powers Association insurance cooperative up to $5 million, and an excess insurance provider for claims in excess of this, up to $20 million. The City is self-insured for the first $25,000 for general liability and auto claims; property damage up to $5,000 and third party auto claims up to $10,000.  Workers Compensation claims are insured for the first $250,000 of coverage through the City’s participation in a Workers Compensation risk pool. After the $250,000 limit is met, an excess insurance coverage policy is activated. The excess coverage provides an employer liability limit of $5 million per occurrence, and workers’ comp per occurrence limit of $100 million. Workers' Compensation claims are managed by a third party administrator. CITY OF SARATOGA INTRODUCTION SECTION 62  The City’s role in managing both its risk management and workers comp programs is to be preventative in nature which is accomplished through careful monitoring of losses, working closely with the third party administrator, proactively addressing infrastructure maintenance and potential risks, and by designing and implementing safety programs to minimize risk and reduce losses. TREASURY MANAGEMENT  The City’s Investment Policy shall be brought to the Finance Committee and City Council for review, discussion, direction, and adoption on an annual basis. California Government Code Section 53600 and City of Saratoga Municipal Code Section 2-20.035 require the City Council to annually review and approve the City’s Investment Policy.  It is the policy of the City of Saratoga to invest public funds in a manner wh ich will provide the maximum security with the highest investment return, while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of funds.  Finance staff shall exercise due diligence to comply with the Investment Policy. The City currently practices conservative and cautious investment practices by limiting its investments to the State’s Local Agency Investment Fund (LAIF). Certificates of Deposits and high grade investment vehicles may also be utilized under the Investment Policy, however the Finance Committee will provide oversight, review and direction on any decisions to move a portion of the City’s available funds into these other permitted investments. Administrative Services Department’s Finance Division shall prepare a monthly report to the City Council that has sufficient detail to present the financial condition of the City at month end, the cash and investments balance by fund, and fund balances by fund type. CITY OF SARATOGA INTRODUCTION SECTION 63 FUND BALANCE RESERVE POLICIES Prudent financial management dictates that the City reserve a portion of its funds for future use to: maintain fiscal stability; ensure the continued orderly operation of government and provision of services to residents; and to mitigate current and future risks. As a general budget precept, the City Council decides when and whether to appropriate available funds to and from a reserve account. Use of reserve funds must be authorized by either specific direction in the annual budget, or by a separate City Council action – unless specifically directed by policy. Responsible fiscal stewardship also requires adequate reserves be maintained for all known liabilities and established City Council and community directed initiatives. In the following Fund Balance/Reserve Policy guidelines, the descriptions include identification of the fund type and classification, the purpose of the reserve, minimum and maximum funding goals if appropriate, appropriate utilization of the reserve and by what authority, and the procedure for funding the reserve initially; on an ongoing basis, or after utilization. FUND BALANCE AND NET POSITION In 2009, Governmental Accounting Standards Board (“GASB”) Statement No. 54 revised fund balance classifications for “Governmental Funds” into five specific classifications of fund balance with the intent to identify the extent to which a specific fund balance reserve is available for appropriation and therefore spendable, or whether the fund balance reserve is constrained by special restrictions. Government Funds for which these new rules apply include: the General Fund, Special Revenue Funds, Capital Project Funds, and Debt Service Funds. For “Non-Governmental Funds”, equity classifications are classified as “Net Position” with sub- classifications of Restricted or Unrestricted Net Position. A third component of a Non-Governmental Fund’s equity is “Net Investment in Capital Assets,” which for Saratoga refers to the non-monetary portion of equity such as vehicles and equipment, net of depreciation. Non-Governmental Fund types include Proprietary Funds (Enterprise and Internal Service Funds) and Fiduciary Funds. GOVERNMENTAL FUND TYPE RESERVE CLASSIFICATIONS The Governmental Reserve classifications are defined as follows, which includes the applicable reserves that fall into the classification. Non-Spendable Fund Balance Represents resources that are inherently non-spendable from the vantage point of the current period. The City does not presently hold Non-Spendable Reserve funds. Restricted Fund Balance Represents fund balance that is subject to external enforceable legal restrictions. The City maintains the following restricted fund balances under this designation:  General Fund: Environmental Services Fund Balance Reserve  Special Revenue Funds: Landscape & Lighting Assessment Districts Fund Balances  Debt Services Fund: Library General Obligation Bond Debt Service Fund CITY OF SARATOGA INTRODUCTION SECTION 64  Capital Project Funds a) Park in Lieu Funds b) Highway User Tax Allocation Fund (Gas Tax) c) Capital Project Grant Funds Committed Fund Balance Represents fund balance constrained by limitations the government imposes upon itself at its highest level of decision making and remains binding unless removed in the same manner. The City maintains the following fund balances under this designation:  General Fund: Hillside Stability Reserve  General Fund: Facility Replacement Reserve  Capital Improvement Plan Funds: Capital Improvement Project Fund Balance Reserve Assigned Fund Balance Represents fund balance identified by Council for an intended use; however as no legal obligations exist, the funds may be re-designated and utilized for another purpose if Council chooses. The City maintains the following General Fund reserves under this designation:  General Fund: Future Capital & Efficiency Project Reserve  General Fund: Carryforward Reserve Unassigned Fund Balance Represents funding which may be held for specific types of uses or operational funding/stabilization purposes, but is not yet directed to a specific purpose. Only General Fund reserves can be designated under the “Unassigned” fund balance classification. Other fund types are by nature structured for specific purposes, hence the fund balances are therefore considered “assigned” for that purpo se.  General Fund: Working Capital Reserve  General Fund: Fiscal Stabilization Reserve  General Fund: Development Services Reserve  General Fund: Other Unassigned Fund Balance Reserve Fund Balance Ratios To ensure the City maintains available working cash flow and emergency funding at all times, the collective total of the General Fund’s Assigned and Unassigned Reserves shall be sustained at a minimum of 20% of General Fund expenditure appropriations, net of transfers out. GENERAL FUND YEAR-END ALLOCATIONS After the City’s financial records are finalized and audited, with legal obligations and liability reserves funded, revenues in excess of expenditures are closed out to the Other Unassigned Fund Balance Reserve. A base amount of funding, as set by budget policy, is to remain in the Other Unassigned Fund Balance Reserve, with the remainder distributed in the following order: 1. Repayment of Fund Balance Reserve loans - back to established levels (e.g. borrowing from/usage of the Fiscal Stabilization or Hillside Stability Reserves). a. For the Hillside Stability Reserve, loan repayment shall be made in annual contributions of $100,000 until reserve balance reaches the $1 million reserve goal. b. Fiscal Stabilization loan repayments shall be made as directed by Council. 2. Annual contribution of $500,000 to Facilities Replacement Reserve. 3. Remaining funds are allocated to the Future Capital Improvement and Cost Efficiency Projects Reserve. CITY OF SARATOGA INTRODUCTION SECTION 65 GENERAL FUND RESERVES Environmental Services Reserve Under the Restricted Fund Balance classification, the Environmental Services Reserve represents revenues collected under a prior funding structure for environmental purposes, and is therefore restricted for use in funding environmental program costs such as clean water progr ams, street sweeping, and storm drain cleaning services. Per policy, the Environmental Service Reserve is being utilized through annual budget appropriations of $50,000. The Environmental Services Reserve originated from a one -time funding structural change and therefore will not be replenished when depleted. Hillside Stability Reserve Under the Committed Fund Balance classification, a Hillside Stability Reserve of $1 million is set aside to provide funding for unanticipated or unforeseen emergency or extraordinary costs related to hillside degradation, inclusive of slide prevention and mitigation, slide repair, and associated drainage and roadwork. Use of the reserve requires an analysis be prepared and presented to Council for approval, or in th e event of a landslide requiring immediate emergency work, the Public Works Director may direct use of up to 10% of the reserve to make emergency repairs and mitigate further damage until Council takes action. Reserve funding is to be used for emergency work which exceeds operational funding provided for in the Operations Budget. Upon use, refunding of the reserve shall be provided from year -end net operations in the amount of $100,000 each fiscal year until the $1,000,000 reserve cap is reached. Facility Replacement Reserve The Facility Replacement Reserve is established to accrue funding for the major rehabilitation or replacement of City Facilities (buildings/structures). Eligible uses of this reserve include both direct funding of public facility improvements, and the servicing of related debt. Small facility building replacements, major facility renovations, and down payment contributions toward a large facility replacement in conjunction with bond measure funding are examples of intended Facility Replacement Reserve uses. An initial contribution of $300,000 was established in FY 2012/13 with Council’s recommendation to continue funding at this level, as a priority use of year-end net operations funding. Effective FY 2016/17, Council’s direction is to increase the annual year-end contribution amount to $500,000, as funding is available. Council has set a goal to fund the Facility Replacement Reserve to a level equal to 1/3 of the City’s insured value over the next 20 years (by FY 2036/37) as a fi scally responsible practice to maintain city infrastructure In principle, Saratoga does not pursue bond money to fund capital improvements, however, replacing high cost facility infrastructure requires a long-term funding plan that may or may not be attainable through annual contributions. Therefore, the Facility Replacement Reserve demonstrates both the City’s good faith funding effort and financial stewardship for future bond measures if needed, as well as accumulating funding for a down payment on replacement infrastructure to minimize bond funding needs. A facility’s insured value represents the initial cost of the facility decreased each year over the facility’s estimated lifespan. Therefore, insured value represents the remaining life of the fac ility’s purchase cost – it does not represent the current cost to replace a facility. The City recognizes insured value is not sufficient to fund facility replacements, therefore annual contributions will continue as an ongoing funding obligation even after the 1/3 reserve goal is met. Changes in annual contributions and the reserve goal amount shall be determined by Council during the budget process, in line with changes in the City’s economic situation. Utilization of the reserve shall be brought to Council for discussion and consideration as needed. CITY OF SARATOGA INTRODUCTION SECTION 66 Future Capital & Efficiency Projects Reserve Under the Assigned Fund Balance classification, the Reserve for Future Capital Improvement & Efficiency Projects shall reserve funding for as yet undefined capital and efficiency improvement projects. Reserve funding is derived from General Fund accumulated net operations (as available) and is therefore considered a “one-time funding source”. Funds are held in this reserve until Council reviews funding req uests and approves a use or transfer to a capital project fund. Use of the reserve funding is at the Council’s discretion, but typically occurs in conjunction with the annual budget adoption after Council conducts a comprehensive review of capital and e fficiency improvement needs. Reserve replenishment is dependent upon net operational savings in subsequent fiscal years. Carryforward Reserve Under the Assigned Fund Balance classification, the Reserve for Carryforwards represents funding held at the end of each fiscal year for critical unexpended operating budget appropriations to be purchased in the following fiscal year, and any remaining Council Contingency funding. The reserve is reconciled at the end of each fiscal year to both release prior year carryforward funding and reserve current year carryforward funding into the following budget year. Staff determines the year-end reserve amount after all fiscal year payments are finalized; the reserve amount is conceptually appropriated by Council each year in the budget adoption resolution. Working Capital Reserves In accordance with the City’s cautious and conservative fiscal philosophy, the City’s general prevailing financial policy holds that the City should fund daily operations with current resources in order to avoid use of short-term borrowing for cash flow management. To support this policy a Working Capital Reserve is maintained that meets cash flow requirements, and in turn, ensures the continuance of services to the public while also preserving the City’s credit worthiness. To provide adequate working capital in the case of extreme circumstances, the City shall maintain, in combination with the Fiscal Stabilization Reserve, a minimum operational reserve of 60 days of the following year’s General Fund budgeted expenditures (net of internal service charges and transfers out), up to a maximum operational reserve amount equal to 90 days of the following year's General Fund budgeted expenditures (again, net of internal service charges and transfers out). This reserve falls under the Unassigned Fund Balance classification. Beginning with the FY 2016/17 budget, the Working Capital Reserve is maintained at $1 million (reduced from $2 million), and the Fiscal Stabilization Reserve in maintained at $2.5 million (increased from $1.5 million). At this time a Working Capital Reserve of $1 million is sufficient for cash flow needs, however, the funding level will be assessed on an annual basis to ensure $1 million is sufficient for cash flow needs. Th e $1 million funding shift to the Fiscal Stabilization Reserve reflects a more realistic reserve usage structure – the Working Capital Reserve’s purpose is to ensure sufficient operating cash; the reserve has no defined fund uses, repayment terms, or authorization requirements. On the other hand, the Fiscal Stabilization Reserve’s purpose is defined and may be called upon for critical uses in the future. The overall 60 day General Fund operational reserve minimum requirements shall continue to be met. Fiscal Stabilization Reserve Under the Unassigned Fund Balance classification, the Fiscal Stabilization Reserve represents a funding set- aside to provide temporary financing for budget stabilization caused by fiscal downturns, unanticipated extraordinary expenditures related to a natural disaster or calamity, or from an unexpected liability or funding decrease created by a legislative action. Effective July 1, 2016, the Fiscal Stabilization Reserve CITY OF SARATOGA INTRODUCTION SECTION 67 funding level increased by a $1 million transfer from the Working Capital Reserve, up to $2.5 million. This funding shift provides a more accurate reserve funding purpose and utilization structure. Fiscal stabilization uses are defined and restricted to: 1) revenue declines lasting more than one year and equal to more than 5% of either property tax, the combined total of other taxes, or General Fund revenues in total; 2) an unanticipated extraordinary operational increases of more than 5% such as from a natural disaster; or 3) an unexpected Federal, State, County or CalPERS funding change. Council may utilize funding at budget adoption, by adoption of a budget adjustment resolution during the course of the year, or after a Federal, State, or locally declared emergency. In the event a locally declared emergency takes place, the City Manager has the authority to spend funds until such time as the City Council takes action. Reserve appropriations are to be replenished from year -end net operations, as available, on a priority basis. The $2.5 million Fiscal Stabilization Reserve funding level will be assessed on an annual basis to ensure this funding level is sufficient in light of operational reserves and utilization needs. Development Services Reserve Under the Unassigned Fund Balance classification, the Development Services Reserve provides fiscal stability and funding accountability for the Community Development Department’s planning and building programs. Development projects are often multi-year activities in which revenues may be collected in one year, while project expenditures may extend over several years. In total, this reserve represents accumulated excess planning and building net operation funds from years when development revenues exceeded development expenditures. The reserve funds are utilized in years when planning and building program expenditures exceed revenues, thereby acting as an overall funding stabilizer for multi-year development activities. Use of reserve funding for operational support is restricted to 1/3 or the reser ve balance in any given fiscal year, with Council approval. Budgeted use of the Development Reserve is to be rescinded if and to the point where development revenues are sufficient to cover General Fund net operations at year -end. In addition, the Council may direct reserves be utilized for specific development related uses, such as for development software upgrades or special projects. Compensated Absences Reserve Under the Unassigned Fund Balance classification, the Compensated Absences Reserve is esta blished to smooth expenditure fluctuations resulting from the payout of accrued leave to employees at service separation and distribution payouts. Reserve funding equal to one-third of the compensated absences liability is established at year-end. Reserve funding in excess of one-third of the liability is to be returned to the General Fund’s Other Unassigned Reserve. Use of the reserve occurs when total annual compensated absences payouts exceed budgeted salary funds. Large payouts decrease the compensated absences liability at year-end, thereby supporting the practice of utilizing the reserve as needed. Year-end reconciling allocations to and from the reserve are approved though Council’s budget resolution adoption each fiscal year, with the liability and resulting reserve amounts determined as part of the year-end close process. Council Discretionary Reserve Under the Unassigned Fund Balance classification, the Council Discretionary Reserve represents unspent funds from the Council’s annual appropriation. The reserve provides a mechanism to roll forward remaining Council Discretionary Funds as reserve funds are immediately re-appropriated into the following fiscal year. This allows Council the flexibility to take advantage of unforeseen opportunitie s or needs without the restriction of fiscal year boundaries. Use of the reserve funding requires Council majority approval. The reserve exists at year-end only when there are remaining unspent Council Discretionary funds at the end of the fiscal year. CITY OF SARATOGA INTRODUCTION SECTION 68 Other Unassigned Reserve The ‘Other Unassigned Reserve’ represents accumulated net operations not yet allocated to other fund balance reserves, and by definition, fall into the Unassigned Fund Balance classification. Other fund’s accumulated net operations are typically accounted for in an undefined reserve account in the fund – and typically titled ‘Fund Balance Reserve’. As other funds are structured for specific uses or commitments, the fund balance, by its distinctiveness, already has a directed purpose, whereas the General Fund is used for multiple and general operational purposes thereby requiring a distinction of purpose for each reserve. Council may utilize reserve funding at budget adoption or by adoption of a budget adjustment resolution during the course of the year. Reserve funding is replenished from year -end net operations, as available. SPECIAL REVENUE FUND RESERVES Landscape & Lighting Assessment District Funds Assessment District Funds are Special Revenue Funds, which is a type of governmental fund. As a governmental fund, the Landscape and Lighting Assessment District Funds comply with GASB 54 fund balance classifications, and by nature of the fund’s purpose, fund balance reserves are classified as restricted reserves. Special Revenue Funds account for and report the proceeds of specific revenue sources that are restricted or committed to specified purposes (other than for debt service or capital projects.) For the City, Landscape & Lighting Assessment District Special Revenue Funds were established to account for each individual assessment district; thereby each fund has its own separate fund balance reserve. Each district’s fund balance reserve should be sufficient to provide working capital to cover operational expenses through the first half of assessment receipts in January, therefore equitable to approximately one- half of a district’s annual expenditure budget. The second half of receipts are received in June. Some districts may include capital improvement projects in addition to ongoing regular maintenance resulting in fund balance increasing over the years to accumulate sufficient resources for the improvement projects. As each district’s situation is different, a district’s maximum fund balance shall be determin ed by the Public Works Director. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund’s net operations in subsequent years. DEBT SERVICE FUND RESERVES Library General Obligation (GO) Bond Debt Fund The Library General Obligation (GO) Bond Debt Fund is a Debt Service Fund established to account for the financial resources accumulated for principal, interest, an d cost of issuance expenditures associated with the Library Bond Debt. As Debt Service Funds are a governmental fund type, the fund reserves fall under the GASB 54 fund balance classifications. Debt Service Fund reserves are classified as a Restricted Re serve with the funding only spent for specific purposes as stipulated by the bond covenants. The Library GO Bond Debt Fund ensures receipts are tracked separately, and that funding is available for the GO Bond debt service requirements. At a minimum, the year-end fund balance reserve shall be sufficient CITY OF SARATOGA INTRODUCTION SECTION 69 to provide working capital to cover the semi-annual principal and interest debt payment due on August 1st as the GO Bond tax receipts are received after the 1st debt payment is due. December receipts provide for the February payment. In addition, as bond assessments are collected as a percentage of property values, reserves should provide sufficient funding to compensate for tax fluctuations. The fund’s reserve maximum is set at no more than one-year of budgeted annual expenditures. The reserve balance is increased (or reduced) through establishing assessment rates at more (or less) than the semi-annual payments and bond services require. Therefore, use or replenishment of the reserve is approved by Council through budget adoption, and implemented through an increased or reduced assessment rate as a result of the fund’s net operations. CAPITAL IMPROVEMENT PROJECT FUND RESERVES Overview Capital Improvement Project (CIP) Funds account for the acquisition and maintenance of major capital assets other than those financed through special assessments or enterprise funds. Capital Project Funds are a type of governmental fund and therefore comply with GASB 54 fund balance classifications. Because Council has directed the fund’s appropriated funding be spent on specific capital improvement projects, the Capital Project Fund Balance Reserve is classified as Committed Fund Balance. Budgeted capital improvement project funding is determined by the sco pe of work approved by Council, and remains assigned for that use until completed or reassigned by Council. Fund Balance amounts represent the total remaining funds in the individual projects at year-end. As Fund Balance amounts are determined by the amount of project completion at year-end, they cannot be standardized for minimum or maximum amounts. Fund Balance is re-appropriated to the capital projects in the following fiscal year for the work to be completed. Street Improvement Projects Funds Street Improvement Project Funds provide for a safe and functional roadway and pedestrian street system. Each Street Improvement Fund (CIP Street Fund, CIP Grant Fund, and Gas Tax Fund) has multiple projects which roll up into the overall fund balances, but remain designated for use by project. The CIP Street Fund receives annual funding from designated fees, reimbursements, contributions, and transfers from other funds. The CIP Grant Fund receives federal, state, and local grants which vary in source and amount from year-to-year. On occasion, a private grant may be received. Typically, CIP Grant Funds have a negative fund balance as project work is conducted before reimbursement is received. Gas Tax Funds represent annual Highway User Tax and Transportation Congestion Relief revenue allocations that are to be accounted for separately and are subject to State audits. Park & Trail Improvement Project Funds Park & Trail Improvement Project Funds provide for capital improvements to the City’s neighborhood an d city parks and plaza, the sport fields, bike and pedestrian trails, and open space areas throughout the City. Each of the Park & Trail Improvement Funds (CIP Park & Trail Fund, CIP Tree Fund, and the CIP Park & Trail Grant Fund) have multiple projects which roll up into the overall fund balances, but remain designated for use by project. The CIP Park & Trail Fund receives annual funding from Park -In-Lieu fees, occasional subventions, reimbursements and contributions, and transfers in from other funds. The Tree Fund receives revenue from tree fines and transfers from other funds upon Council direction. The CIP Grant Fund receives federal, state, local and occasional private grants which vary in source and amount from year-to-year. Typically, CIP CITY OF SARATOGA INTRODUCTION SECTION 70 Grant Funds have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance) which are subsequently re-appropriated by Council into the following budget year through budget adoption. Facility Improvement Project Funds Facility Improvement Project Funds provide for capital maintenance and improvements of the City-owned buildings and structures throughout the City. Each of the Facility Improvement Funds (CIP Facilities Fund and the Facility Grant Fund) have multiple projects which roll up into the overall fund balances, but remain designated for use by project. The CIP Facilities Fund receives annual funding from a General Fund transfer, from Theater Ticket Surcharge Fees, and from reimbursements and contributions. The Facility Grant Fund receives revenue from grants that vary in amount from year-to-year. Typically, CIP Grant Funds have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance) which are subsequently re-appropriated by Council into the following budget year through budget adoption. Administrative & Technology Improvement Funds Administrative & Technology Improvement Project Funds provide for major capital expenditures to improve or enhance administrative, operational, or technology based systems, processes, or functions. Each of the Administrative & Technology Improvement Funds (CIP Admin & Tech Improvement Fund and the Admin & Tech Grant Fund) have multiple projects which roll up into the overall fund balances, but remain designated for use by individual project. The CIP Administrative & Technology Improvement Fund typically receives funding from a General Fund transfer as administrative and technology improvement focused grants are limited. If grants are received, projects typically have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance) which are subsequently re-appropriated by Council into the following budget year through budget adoption. INTERNAL SERVICE FUND RESERVES Overview Internal Service Funds are established to provide centralized cost centers for shared e xpenses and services in order to efficiently track costs and manage resources. Costs are then allocated back to the operational programs based on usage to more accurately determine cost of services. The City’s Internal Service Funds include the two Insurance funds: Risk Management and Workers Compensation, four Service/Support funds: Office Support, IT Services, Vehicle & Equipment Maintenance, and Building Maintenance Funds, and three Equipment Replacement funds: the Vehicle & Equipment Replacement Fund, the Office Technology Equipment Replacement Fund, and the Building FF&E (Furniture, Fixture, & Equipment) Replacement Fund. CITY OF SARATOGA INTRODUCTION SECTION 71 As each fund is accounted for as a separate entity, operational revenues less expenditures result in either a positive or negative fund balance at any given point in time – Internal Service Funds are similar to the separate checking and saving accounts a person may use for different purposes. At year end, each fund’s net balance is represented as the “Fund Balance Reserve”. Th e intent of the Internal Service Funds Reserves is to hold appropriate levels of reserves to support cash flow needs and minimize interfund loans, not to accumulate funds in excess of expected ongoing operational costs. Reserve levels are determined by the specific operational needs of the program, but typically will fall within 25 – 50% of annual budgeted expenditures. Internal Service Funds are a type of Proprietary Fund; therefore GASB 54 fund balance classification (for Governmental Fund types) does not apply. Instead, Internal Service Fund’s financial statement reports are presented similar to private-sector businesses and use “Restricted” and “Unrestricted Net Position” to define net operational balances (equity/fund balance reserves). Unrestricted Net Position allows reserve funding to be used (with Council approval) within the general scope of the fund’s purpose. Restricted Net Position reserves are limited to a specific use, narrower than the stated purpose of the fund. For example, grant funding provided for a defined use, as in remaining funds from a Risk Management Training Grant within the Liability/Risk Management Fund, must be used for qualified training purposes. Most Internal Service Funds reserves are held in the Unrestricted Net Position category. Liability /Risk Management Reserve Fund The Liability/Risk Management Fund’s Unrestricted Net Position reserve supports cash flow needs and minimizes interfund loans. Appropriate levels are maintained through service chargebacks to the programs, based on operational risk factors. Most claims are covered under the insurance risk pool JPA. The City is self-insured for up to $25,000 per General Liability and City Vehicle Auto Liability occurrence, and up to $5,000 for Property Damage and 3rd Party Auto Liability. Non-covered claims are paid fully by the City. The Liability/Risk Management program receives funding from allocations charged to covered departments, from grant funding, and from claim reimbursements. At year end, unspent fun ding flows into Unrestricted Net Position or Restricted Net Position for specific purposes. Requests for use of reserve balance are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund’s net operations in subsequent years. Workers Compensation Fund The Workers Compensation Fund’s Unrestricted Net Position reserve supports cash flow needs and minimizes interfund loans. Appropriate levels are maintained through service chargebacks to the programs, based on operational risk factors. The purpose of the Workers' Compensation program is to provide insurance benefit coverage for employee work-related illness and/or injuries through its membership in a shared risk pool. The risk pool provides coverage up to $250,000, and excess insurance provides coverage over this amount up to $10 million. The Workers Compensation program receives funding from allocations charged to covered departments, from grant funding, and from claim reimbursements. At year end, unspent funding flows into Unrestricted Net Position, or Restricted Net Position for grant funding. Requests for use of the reserve balance are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund’s net operations in subsequent years. CITY OF SARATOGA INTRODUCTION SECTION 72 Office Support Fund The Office Support program provides a centralized cost center for administrative office support expenses, including photocopy machine leases, postage machines, shared office machines, and the associated maintenance and repair services, postage, paper, and copier supplies. For efficiency, office support costs are managed collectively and charged back to departmental programs on a use-basis allocation. Accumulated net operations are held in the Office Support Fund for working capital cash flow. The reserve is funded from the allocations charged to covered departments. At year end, unspent funding flows into Unrestricted Net Position. Requests for use of excess reserve balance are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund’s net operations in subsequent years. Information Technology Services Fund Information Technology Services provide for the delivery of technology based services throughout the City’s operations, including maintenance of the City’s information systems and infrastructure, program implementation, streaming video, internet, landline, and wireless communications systems, cloud based technology, and support of all existing information technology as well as new technology initiatives. For technology oversight, security, and efficiency, information technology costs are managed collectively and charged back to departmental programs on a service-based allocation to fund the program. Funding for the program comes from these allocations charged to covered departments. At year end, unspent funding flows into Unrestricted Net Position. Accumulated net operations are held in the Information Technology Services Fund for working capital cash flow. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund’s net operations in subsequent years. Vehicle & Equipment Maintenance Fund The Vehicle & Equipment Maintenance program provides for the fuel, maintenance, and servicing of the City’s fleet and major equipment to ensure all vehicles and equipment comply with manufacturer’s recommendations and safety requirements. To fund the program, vehicle & equipment replacement costs are charged back to the departmental programs based on assigned usage. Accumulated net operations are held in the Vehicle & Equipment Maintenance Fund for working capital cash flow. At year end, unspent funding flows into Unrestricted Net Position. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund’s net operations in subsequent years. Facility Maintenance Fund The Building Maintenance program provides for the custodial, maintenance, and non-major repairs and building improvement services for all facilities at the Civic Center, Prospect Center, and Museum Park. Additionally, the program supports the maintenance and repair needs for the tenants of City leased buildings as defined in the lease agreements. To fund the program, total costs are allocated back to departmental programs primarily based on building space usage. General and public use is allocated to the Non-Departmental program. Accumulated net operations are held in the Building Maintenance Fund for working capital cash flow. Funding comes from the allocations charged to covered departments. At year end, unspent funding flows into Unrestricted Net Position. Requests for use of the reserve are approved by Council through budget adoption or by establishing chargeback funding levels higher or lower than budgeted expenditures. The reserve is replenished from the Fund’s net operations in subsequent years. CITY OF SARATOGA INTRODUCTION SECTION 73 Vehicle & Equipment Replacement Reserve The Vehicle and Equipment Replacement Fund Balance Reserve accounts for accumulated funding over an asset’s lifespan, to be used for the replacement of the vehicle or equipment at the end of its useful life. Initial purchases are paid for through a department’s operational budget. If the purchased item is for ongoing use, the Vehicle & Equipment Replacement program appropriates an annual allocation for the replacement of the vehicles and equipment based on the asset’s cost and years of life. Final determination for replacement of the asset is determined through an analysis of whether the cost of maintenance equals or exceeds the cost of replacing the asset. The reserve is funded from allocations charged to covered departments and represents accumulated funding, less amounts expended for asset replacement. At year end, unspent funding is held in Unrestricted Net Position. The reserve is to be maintained at a level sufficient to provide replacement funding of vehicles and equipment in accordance with replacement schedules. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund’s net operations in subsequent years. Office Technology Equipment Replacement Fund The Office Technology Equipment Replacement Fund accounts for accumulated funding over an asset’s lifespan to be used for the replacement of office technology based equipment such as desktop computer s and monitors, laptops and tablets, network infrastructure, and various other related equipment. Replacement costs are charged back to the departments based on assigned equipment costs. Initial purchases are paid for through a department’s operational budget. If the purchased item is for ongoing use, the Office Equipment Replacement program appropriates an annual allocation for the replacement of the equipment based on the asset’s cost and years of life. The reserve represents accumulated funding, less amounts expended for replacements. The reserve shall be funded to provide replacement funding in accordance with replacement schedules. Funding for the reserve comes from the allocations charged to covered departments. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution during the year. The reserve is replenished from the Fund’s net operations in subsequent years. Facility Furniture, Fixtures & Equipment (FFE) Replacement Fund The Facility FF&E Fund accumulates funding over an asset’s lifespan to be used for the replacement of furniture – such as tables, chairs, and cubicle partitions; for fixtures - such as kitchen appliances, sound equipment, lighting, for equipment - such as HVAC units, boilers, and generators; and for facility infrastructure – such as roof, door, window, and floor/carpeting replacement. Initial purchases for new assets may be paid for through the Operating Budget or through the Capital Budget. Annual replacement charges are charged-back to the supported department programs with full replacement funding to be accumulated over the asset’s estimated lifetime. Final determination for replacement of the asset is determined through an analysis of whe ther the cost of maintenance equals or exceeds the cost of replacing the asset. The reserve is intended to be maintained at a level sufficient to provide replacement funding in accordance with replacement schedules. Requests for use of the accumulated reserve funding are approved by Council through budget adoption, or if an unplanned situation occurs, by a Council approved budget adjustment resolution during the fiscal year. The reserve is replenished by replacement charge allocations in subsequent years. CITY OF SARATOGA INTRODUCTION SECTION 74 CIP PROJECT PROCESS POLICY This procedural policy defines how a project moves through the CIP Budget Funding process: from the initial project idea, through project development, nomination, and project approval process, and if successful, into the Capital Budget as a funded project. The CIP project development stage of the policy takes different tracks, depending upon whether the project idea is staff driven or Council nominated. These two paths are discussed separately below, until the tracks converge for CIP project assessment preparation. STAFF PROJECT DEVELOPMENT 1. CIP Project Initiation As a function of staff’s day-to-day work, infrastructure improvements and large-scale repairs and maintenance are identified as potential capital improvement projects. These are often highly-visible tangible public assets such as street repaving, or park and trail improvements. However, many CIP projects are less noticeable, including facility roof repairs, tree planting, or ADA enhancements. Projects may also be administrative or technology improvements, and hence invisible to the general public, such as code updates/revisions, process improvements, software implementations, or economic vitality programs. Staff is to discuss the CIP project idea with the appropriate staff or City Manager for feedback and refinement. Ultimately, projects need clearly defined boundaries to identify project requirements, specifications, and resources. While this is not always feasible in the initial stages of project development, the understanding that a project will eventually require a clear and specific scope will encourage better preparation for discussing the project idea and moving it through the nomination process. After receiving initial approval, staff moves in to the idea development stage. 2. Idea Development To move the idea forward, staff will need to analyze and articulate the project’s scope, political impacts, priority factors, resource requirements, and any other relevant considerations. a. Project Scope – Scope may include the description, project size and location parameters, project purpose, and goals or deliverables, such as products, services or results. Project justifications and assumptions should support the project’s purpose and definition, and may include cost-benefit analysis, risk assessments, funding availability, or even community desirability factors. The scope should clearly state if a project is to be funded and/or completed in phases rather than as a singular body of work. If the project is ongoing infrastructure maintenance or a program project, this too should also be clearly noted. In some cases, project scope may be defined by exclusions – statements about what the project will not accomplish or produce. Additionally, constraints or restrictions may identify project limitations. Project Scope defines a commitment to produce a body of work or end-product with the resources provided under the stated assumptions. The written scope helps to manage expectations and provide clarity to the involved parties, reduce confusion and failure, prevent scope creep, and provide transparency to the community. b. Political Considerations - Knowledge of historical information, which attests to the necessity of Council/staff communication is of vital importance in project development. Determine whether this project has come up for consideration before, or why was it not completed previously. Are there lessons to be learned from a past project proposal? CITY OF SARATOGA INTRODUCTION SECTION 75 Another consideration includes knowing whether a project might be controversial. Is there a segment of the community strongly opposed to, or strongly supportive of this specific project? Will this project prompt demand for further funding or resources? Have similar projects been completed in another part of the city? Determine why this project should be considered a priority over others, and whether the project’s cost or benefits would be supported by the community. c. Priority Factors - Project priority is an important consideration in the CIP approval decision factor. Council’s role is to determine which projects are of higher priority than others since there will never be enough money or resources to do every project. Decision criteria may include factors such as:  Health and Safety Issues  Imminent failure of structure/system  Short-term cost of repair vs. long-term cost of replacement  Availability of external or dedicated funding  Efficiencies  Federal or State mandates  Business or community support  Impacts if project is not completed A project’s priority is also affected by the severity of the criteria. For instance, a project that falls under the “Imminent Failure of Structure/System” criteria may be an extremely dangerous situation in need of immediate repair, or low danger of minor importance and simply remedied by removal. Another example would occur with Federal or State mandated projects. There may be little impact as to whether the mandate is met, or there may be severe fines for lack of timely completion. As a result, project priority is based on the overall assessment of the circumstances; many factors contribute to priority decisions and Council cannot rely upon a clear hierarchical order upon which to base their decisions. d. Project Resources - In the City’s project development discussions, resources typically refer to financial funding. However, resources may also refer to staff time, equipment and materials, community/stakeholder participation or support, space requirements, information technology services, or some other type of support or contribution. Funding plays a critical role in project development. In many cases, lower priority projects may be approved ahead of higher priority projects simply because there is designated funding available for the lower priority projects. The ability to bring designated funding (such as a grant award) with a project proposal greatly increases the likelihood that the proposed project is approved. Overall, projects that request undesignated Capital Project Reserve funding are more competitive due to funding limitations and the number of projects competing for the same pot of funds. An additional component of project resource considerations are the unstated resources (identified above) required in project construction or implementation. For instance, staff time is limited and time spent working on one project prevents staff time being spent on another project. Project timing and staff time requirements are therefore an important component of the project that Council may wish to review. e. Other Considerations - There are numerous other factors not mentioned above that are also taken into consideration when assessing a project idea. For example, can the City afford the ongoing operating budget increases to maintain or implement the project? Does the project contribute toward economic vitality? Are there environmental concerns? Does it enhance the community’s art, education, or cultural resources? Does the project CITY OF SARATOGA INTRODUCTION SECTION 76 provide operational efficiencies or cost savings? Are there risk management or legal liability issues? Possibly the project requires development be staged in phases? Is there strong community interest in this project? Each project will differ, meaning analysis is specific to the circumstances, and diligent research and thought should be put into developing project scope and justification. In summary, the overall goal of idea development is to identify, quantify, and assess the project comprehensively. This effort is intended to ensure that a proposed project is well-thought-out, developed, and articulated thereby enabling the City Manager and Council to make educated and rational decisions. 3. City Manager Approval Staff is to propose the project idea to the City Manager for approval. If approved, the project is moved onto the CIP Project Candidate List. Staff is to notify the Administrative Services Director of the project’s approval and provide pertinent project information. Staff will prepare written narratives with project scope, justification, fiscal impacts, cost estimates, timelines, etc. as necessary for Council Retreat assessment package. CITY COUNCIL PROJECT DEVELOPMENT Council Members are often the recipients of residents’ suggestions for capital project work. Depending on the topic, Council Members can take these opportunities to: 1) educate the residents on why a project may not be feasible; or 2) provide residents with information on how to contact City staff with their requests to determine feasibility; or 3) Council may support the project suggestion and decide to act as a proponent for the project by guiding it through the Capital Project Nomination process: 1. Nomination To move a project idea onto the CIP Candidate List, a Council Member is to propose the idea to fellow Council Members at the end of a City Council Meeting during the Council Items session and request that it be put on the CIP Candidate List for review during the next upcoming CIP budget cycle. 2. Idea Concurrence A second Council Member must concur with the request to move the project idea onto the Capital Project Candidate List. 3. Follow-up A nomination to the Capital Project Candidate List is to be recorded in the City Council minutes, and acted upon as a follow-up item. City Manager will notify Council Member of project nomination (to clarify/verify understanding of project scope and of the assignment to a staff member. Staff member will complete Candidate List step requirements, including: preparation of project scope narrative and justification, fiscal impacts, cost estimates, timelines, etc. as required for Council Retreat assessment package. CIP PROJECT ASSESSMENT 1. Assessment Package In preparation for the annual Capital Project Assessment, Finance will consolidate the CIP Project Candidates, along with proposed changes to current CIP projects, and the current year’s CIP Unfunded Project List into an assessment package for Council’s review. The Capital Project Assessment review provides a forum to assess all projects at one time. These assessment package will include: CITY OF SARATOGA INTRODUCTION SECTION 77 ● A review of available funding ● Existing projects in the current year’s CIP ● Proposed changes to existing projects ● The current CIP Unfunded List ● Proposed changes to projects on the CIP Unfunded List ● New projects on the CIP Candidate List ● Review of requests in conjunction with funding sources 2. Council Retreat The Capital Project Assessment is to be held annually, prior to the start of the budget development cycle, typically at the Council Retreat Meeting that occurs in late January or early F ebruary. During the assessment review, Council will review available funding and all project requests. In their review, Council may request revisions to a project’s scope, funding, or other component. However, changes that redefine a proposed project must be Council’s consensus direction. As projects are assessed, they are either: ● Rejected ● Accepted, or ● Modified and Accepted At the conclusion of the assessment review, Council will prioritize accepted projects and designate project funding. Projects placed on the Funded List will be brought forward to the upcoming Budget Study Session. The remainder will be placed on the CIP Unfunded Project List. NOTE: Rejected project ideas may be nominated for another attempt to become an approved project in the following year(s), but must again go through the project development and assessment process. 3. Budget Study Session Updated CIP funding availability and project revisions will be reviewed a final time with Council. Council will conduct a final assessment and provide consensus direction to staff for inclusion in the upcoming Proposed Budget Hearing to be held in May. CIP Project Funding 1. Proposed Budget Hearing The final Proposed Capital Budget with the recommended project funding will be brought to th e City Council Budget Public Hearing in May. Council is to provide any final comments or direction for budget adoption. 2. Budget Adoption The Operating and Capital Budgets are brought to Council in June with all final direction incorporated into the final summaries. Council is to adopt the budget at this time, with budget funding effective on July 1st of that year. 3. Funding Process Follow-up Approved CIP projects that do not receive funding allocations will be assigned to the next budget year’s CIP Unfunded List. The list will be included in the budget document, and assessed again during the following year’s Capital Project Nomination and Assessment Process. The new CIP Unfunded List has a life span of one budget cycle. CITY OF SARATOGA INTRODUCTION SECTION 78 CITY OF SARATOGA INTRODUCTION SECTION 79 GANN APPROPRIATION LIMIT & BUDGET RESOLUTIONS CITY OF SARATOGA INTRODUCTION SECTION 80 GANN APPROPRIATION LIMIT On November 6, 1979 California voters approved Proposition 4, commonly known as the Gann Spending Limitation Initiative, establishing Article XIIIB of the State Constitution. This proposition, which became effective in Fiscal Year 1980/81, mandated an appropriations (spending) limit on the amount of tax revenues that the State and most local government jurisdictions may appropriate within a fiscal year. This limit grows annually by a population and cost-of-living factor. The State Appropriation Limit was modified by two subsequent initiatives – Proposition 98 in 1988 and Proposition 111 in 1990. Proposition 98 established that tax revenues exceeding appropriation limit levels would be returned to the State or citizens through a process of refunds, rebates, or other means. Proposition 111 allowed more flexibility in the appropriation calculation factors. Only tax proceeds are subject to this limit. Charges for services, fees, grants, loa ns, donations and other non-tax proceeds are excluded. Exemptions are also made for voter-approved debt, debt which existed prior to January 1, 1979, and for the cost of compliance with court or Federal government mandates. The City Council adopts an annual resolution establishing an appropriations limit for the following fiscal year using population and per capita personal income data provided by the State of California’s Department of Finance. Each year’s limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978/79, with inflationary adjustments made annually to reflect increases in population and the cost of living. This State Appropriation Limit is therefore established as the amount of funds that can be appropriated from tax proceeds for that fiscal year. APPROPRIATION LIMIT CALCULATION With per capital income expected to increase next year coupled with a slight population increase, the appropriation factor is positive for FY 2017/18. The following schedule reflects historical appropriations for the prior nine fiscal years, and the calculation for the next budgeted fiscal year: APPROPRIATION LIMIT FACTORS From the above information, the City of Saratoga’s appropriation limit for fiscal year 2017/18 is calculated as follows: For Beginning County City California Ending % YE Population Population Per Capita Limit Limit Factor Factor Income Δ Limit Increase 2009 28,837,681 1.0172 1.0077 1.0429 30,592,104 6.08% 2010 30,592,104 1.0156 1.0070 1.0062 31,261,971 2.19% 2011 31,261,971 1.0126 1.0100 0.9746 30,851,813 -1.31% 2012 30,851,813 1.0089 1.0091 1.0251 31,907,666 3.42% 2013 31,907,666 1.0124 1.0070 1.0377 33,521,156 5.06% 2014 33,521,156 1.0157 1.0129 1.0512 35,790,667 6.77% 2015 35,790,667 1.0150 1.0066 0.9977 36,243,974 1.27% 2016 36,243,974 1.0113 1.0000 1.0382 38,053,696 4.99% 2017 38,053,696 1.0126 1.0053 1.0537 40,602,404 6.70% 2018 40,602,404 1.0081 1.0023 1.0369 42,441,648 4.53% AppropriationAppropriation June 30 % Increase in California 2016/17 2017/18 County Per Capita Appropriation Appropriation Appropriation Population Income Δ Factor Limit Limit 1.0081 X 1.0369 = 1.0453 X 40,602,404$ = 42,441,648$ FY 2017/18 Calculation CITY OF SARATOGA INTRODUCTION SECTION 81 As illustrated in the calculation, the total amount of tax revenues appropriated to the City in FY 2017/18 is not to exceed $42,441,648. The FY 2017/18 budget anticipates $14,250,800 in Gann designated tax revenues which equates to $28,190,848 less than, or approximately 34% of the appropriation limit. Therefore, the City’s tax revenues fall substantially below the appropriation limit. APPROPRIATION TREND The City of Saratoga is an affluent suburb community, known for its excellent schools, beautiful neighborhoods, and home to many Silicon Valley executives and professionals. As a very desirable place to live comprised of high-value homes, property values have grown significantly over the past few decades, and is now one of the most expensive places to live in the nation . However, with Saratoga established as a low-tax city, the City’s share of property tax dollar growth has increased at a slower pace than either population or the per capita personal income growth rate since the Gann calculation was established in 1979. Both the low-tax status and limited growth contributed to a large margin between tax revenues received and the revenue limitation established under the Gann Proposition. Over the last 10 years, the tax growth rate has moved higher than in past historical trends due to the restoration of the City’s full tax allocation during this time frame. However, even with a 5.2% long-term appropriation growth trend (based on a 39 year average), the significantly wide margin between tax revenues and the appropriations limit will continue to provide a safe buffer long into the future. TAX REVENUES TO APPROPRIATIONS LIMIT 10 YEAR TREND APPROPRIATION LIMIT ADOPTION The resolution to revise the appropriation limit to $42,441,648 for FY 2017/18 was brought to Council for approval on June 7, 2017. Actuals Actuals Actuals Actuals Estimated Budgeted Projected Projected Projected Projected 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 10,716,987 11,408,601 12,658,159 13,501,351 14,151,792 14,250,800 14,858,685 15,492,499 15,492,499 16,153,350 33,521,156 35,790,667 36,243,974 38,053,696 40,602,404 42,441,648 44,087,596 45,797,376 45,797,376 47,573,464 32%32%35%35%35%34%34%34%34%34% Tax Revenues Appropriation Limit Revenue to Limit % - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 CITY OF SARATOGA INTRODUCTION SECTION 82 GANN APPROPRIATION LIMIT RESOLUTION CITY OF SARATOGA INTRODUCTION SECTION 83 ANNUAL BUDGET RESOLUTION CITY OF SARATOGA INTRODUCTION SECTION 84 CITY OF SARATOGA 85 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 86 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 87 FINANCIAL SUMMARIES TOTAL FUND REVENUES AND EXPENDITURES Summary schedules which provide a high level overview of the entire operating budget, in a fund -type summary, as well as by fund-specific and category-specific summary levels. Total Fund Activity Summary ........................................................................................................................................89 Total Revenues – by Fund ...............................................................................................................................................90 Total Expenditures – by Fund ........................................................................................................................................92 Total Revenues – by Category ...................................................................................................................................... 94 Total Expenditures – by Category.................................................................................................................................95 GENERAL FUND REVENUES AND EXPENDITURES Summary schedules which identify the General Fund operating sources and uses at the department and category levels. The Fund Balance Activity summarizes the General Fund sources and uses which impact the ending fund balance. General Fund Revenues – by Department ................................................................................................................. 96 General Fund Expenditures – by Department ........................................................................................................... 97 General Fund Revenues – by Category ........................................................................................................................ 98 General Fund Expenditures – by Category ................................................................................................................. 99 General Fund Tax Revenues per Capita – Cities of Santa Clara County ........................................................ 100 General Fund Tax Revenues – 10 Year History of Key Tax Revenues ............................................................ 101 General Fund – Fund Balance Reserve Activity ...................................................................................................... 102 TRANSFERS A schedule summarizing activity by fund, of estimated fund transfers for the prior year and budgeted for the adopted fiscal year. Schedule of Interfund Transfers ................................................................................................................................ 103 FUND BALANCE Fund Balance schedules, one which summarizes activity and ending fund balances to provide a quick look at the ongoing status of the individual funds, and another which provides a 5-year trend. Total Fund Balance Activity Summary – by Fund ................................................................................................ 104 Fund Balance Reserve – 5-Year Comparative History .......................................................................................... 106 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 88 DEPARTMENTAL BUDGETS Department level schedules which provide an overview of funding source and expenditure use by each program within the department. Department Revenues – by Program ........................................................................................................................ 108 Department Expenditures – by Program ................................................................................................................. 110 SUPPLEMENTAL INFORMATION EMPLOYEE INFORMATION Staffing schedules which provide a summary level view of operational staffing assignments, funding, and trend over the prior five years. Summary of Employee Salary & Benefits ................................................................................................................. 114 Positions by Department ............................................................................................................................................ 118 Staffing by Department ............................................................................................................................................... 120 Staffing by Fund ............................................................................................................................................................ 121 MAJOR REVENUE INFORMATION Descriptions and schedules which provide a five year historical view of the City’s major revenue sources, and the forces which impact these revenues. General Fund Revenues ............................................................................................................................................... 123 Non-General Fund Revenues ...................................................................................................................................... 130 Capital Revenues ........................................................................................................................................................... 132 LONG-RANGE FINANCIAL FORECAST Summary level schedule of projected General Fund revenues and expenditures forecasted over the next five years – consistent with current assumptions and organizational structure. General Fund Five Year Financial Projection .......................................................................................................... 133 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 89 TOTAL FUND BUDGET ACTIVITY SUMMARY FY 2017/18 Capital Improvement Funds – Unspent prior year capital funds are shown as beginning fund balance carryforward amounts in the first column. New revenue, grants to be received, and transfers-in are shown in the second column. Together these funds are available to be budgeted for capital projects expenditures (with a couple of exceptions). While only a portion of the funding will be expended during the fiscal year, all available funds are appropriated to allow for multi-year project work, project encumbrances that cross fiscal years, and project timing uncertainties and changes. At year-end, the remaining project balances carry forward into the next fiscal year’s beginning fund balance budgeted amount. Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2017 Transfers In Transfers Out Fund Balance June 30, 2018 Operating Funds General Fund Reserves Environmental Services 263,182$ -$ -$ (50,000)$ 213,182$ Hillside Stability 790,000 - - - 790,000 Capital Projects 1,564,589 - - (300,200) 1,264,389 Facility Reserve 1,700,000 - - 500,000 2,200,000 Carryforwards 7,246 - - (7,246) - Working Capital 1,000,000 - - - 1,000,000 Fiscal Stabilization 2,500,000 - - - 2,500,000 Development Services 719,562 - - - 719,562 Compensated Absences 209,937 - - - 209,937 Other Unassigned 2,229,800 20,777,773 (21,952,544) (142,554) 912,475 Total General Fund Reserves 10,984,316 20,777,773 (21,952,544) - 9,809,545 Special Revenue Funds Landscape & Lighting Districts 1,152,869 655,618 (732,855) - 1,075,632 Total Special Revenue Reserves 1,152,869 655,618 (732,855) - 1,075,632 Internal Service Funds Liability/Risk Management 504,481 410,450 (493,865) - 421,066 Workers Compensation 294,052 185,000 (192,765) - 286,287 Office Support Services 109,806 60,000 (71,750) - 98,056 IT Services 308,072 580,600 (599,725) - 288,947 Vehicle & Equipment Maintenance 176,906 275,000 (257,492) - 194,414 Facility Maintenance 454,606 925,000 (859,531) - 520,075 Vehicle & Equipment Replacement 585,986 150,000 (260,800) - 475,186 IT Equipment Replacement 315,299 150,000 (89,800) - 375,499 Facility FFE Replacement 498,369 200,000 (466,100) - 232,269 Total Internal Service Reserves 3,247,577 2,936,050 (3,291,828) - 2,891,799 Total Operating Funds 15,384,762$ 24,369,441$ (25,977,227)$ -$ 13,776,976$ Debt Service Fund 2001 Series GO Bonds 959,322 817,700 (847,310) - 929,712 Total Debt Service Reserves 959,322 817,700 (847,310) - 929,712 Total Operating Funds 16,344,084$ 25,187,141$ (26,824,537)$ -$ 14,706,688$ Capital Improvement Funds Street Projects 3,091,458 9,251,714 (12,343,172) - - Park & Trail Projects 1,053,733 1,241,015 (2,286,383) - 8,365 Facility Projects 252,801 165,676 (383,477) - 35,000 Administrative & Tech Projects 687,313 206,000 (893,313) - - Total Capital Improvement Funds 5,085,305 10,864,405 (15,906,345) - 43,365 Total All Funds 21,429,389$ 36,051,547$ (42,730,881) -$ 14,750,053 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 90 TOTAL REVENUES & TRANSFERS IN BY FUND FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Revenues By Fund Actuals Actuals Actuals Adjusted Actual Adopted General Fund General Fund 18,268,366$ 19,519,545$ 20,782,596$ 20,223,886$ 21,112,412$ 20,777,773$ Total General Fund 18,268,366 19,519,545 20,782,596 20,223,886 21,112,412 20,777,773 Special Revenue Funds Landscape & Lighting Districts 521,307 566,483 599,827 625,011 658,256 655,618 Total Special Revenue Funds 521,307 566,483 599,827 625,011 658,256 655,618 Internal Service Funds Liability / Risk Management Ins 389,809 399,482 343,808 412,577 392,699 410,450 Workers Compensation Ins 217,433 217,567 185,000 185,000 179,954 185,000 Office Support Services 65,028 68,183 65,703 62,000 59,868 60,000 Information Technology Services 403,488 430,803 481,485 531,500 531,058 580,600 Vehicle & Equipment Maintenance 250,000 300,000 275,003 275,000 275,000 275,000 Facility Maintenance 832,474 882,299 906,440 929,000 934,424 925,000 Vehicle & Equipment Replacement 207,050 206,393 163,565 125,000 125,000 150,000 IT Equipment Replacement 55,000 65,000 125,000 125,000 125,000 150,000 Facility FFE Replacement - - 200,000 200,000 200,000 200,000 Total Internal Service Funds 2,420,282 2,569,728 2,746,004 2,845,077 2,823,002 2,936,050 Debt Service Funds 2001 Series GO Bond 901,539 898,774 901,362 801,300 884,255 817,700 Total Debt Service Funds 901,539 898,774 901,362 801,300 884,255 817,700 Capital Improvement Program Funds Street Projects 1,489,006 1,771,339 1,206,299 9,286,478 1,868,961 8,217,714 Park & Trail Projects 967,061 311,143 493,047 456,015 23,685 821,015 Facility Projects 131,590 38,580 40,371 343,906 224,530 165,676 Administrative Projects - 163,928 138,552 130,000 137,115 130,000 Total Capital Improvement Program 2,587,657 2,284,991 1,878,270 10,216,399 2,254,291 9,334,405 Total Revenues 24,699,150$ 25,839,521$ 26,908,058$ 34,711,673$ 27,732,217$ 34,521,547$ Operating Transfers In General Fund 167,050 - - - 55,384 - FFE Replacement Fund - - 180,000 - - - Street Capital Project Funds 234,487 731,010 2,450,555 1,305,000 1,305,000 1,034,000 Park & Trail Capital Project Funds 119,877 443,445 378,380 99,750 171,548 420,000 Facility Capital Project Fund 100,000 472,653 153,896 190,648 190,648 - Admin Capital Project Fund 163,673 120,000 329,462 167,394 167,394 76,000 Total Transfers In 785,087 1,767,108 3,492,293 1,762,792 1,889,974 1,530,000 Total Revenues & Transfers In 25,484,237$ 27,606,629$ 30,400,351$ 36,474,465$ 29,622,190$ 36,051,547$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 91 TOTAL REVENUES & TRANSFERS IN BY FUND TYPE Note: Capital Project revenue and expenditure amounts in the current year budget reflect full appropriation for receipt and expense of capital funding to indicate the potential impact of capital projects. However, this high level of activity is not expected as most projects are completed over multiple years. Remaining project balances at year-end carryover to the following fiscal year, and are again reflected as revenue and expenditure funding. FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 % of Revenues By Fund Actuals Actuals Actuals Adjusted Actual Adopted Total General Fund 18,268,366$ 19,519,545$ 20,782,596$ 20,223,886$ 21,112,412$ 20,777,773$ 60.2% Special Revenue Funds 521,307 566,483 599,827 625,011 658,256 655,618 1.9% Internal Service Funds 2,420,282 2,569,728 2,746,004 2,845,077 2,823,002 2,936,050 8.5% Debt Service Funds 901,539 898,774 901,362 801,300 884,255 817,700 2.4% Capital Improvement Funds 2,587,657 2,284,992 1,878,270 10,216,399 2,254,291 9,334,405 27.0% Total Revenues By Fund 24,699,150$ 25,839,522$ 26,908,058$ 34,711,673$ 27,732,217$ 34,521,547$ 100.0% Operating Fund Transfers 167,050 - 180,000 - 55,384 - CIP Fund Transfers 618,037 1,767,108 3,312,293 1,762,792 1,834,590 1,530,000 Total Revenues & Transfers Out25,484,237$ 27,606,630$ 30,400,351$ 36,474,465$ 29,622,190$ 36,051,547$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 92 TOTAL EXPENDITURES & TRANSFERS OUT BY FUND FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Expenditures By Fund Actuals Actuals Actuals Adjusted Actual Adopted General Fund General Fund 16,137,576$ 19,882,349$ 18,198,969$ 19,938,250$ 19,203,452$ 20,422,544$ Total General Fund 16,137,576 19,882,349 18,198,969 19,938,250 19,203,452 20,422,544 Special Revenue Funds Landscape & Lighting Districts 409,418 432,671 461,679 714,930 511,179 732,855 Total Special Revenue Funds 409,418 432,671 461,679 714,930 511,179 732,855 Internal Service Funds Liability / Risk Management Ins 336,743 391,344 258,585 436,050 264,706 493,865 Workers Compensation Ins 229,510 184,683 195,124 216,856 190,303 192,765 Office Support Services 35,928 46,229 44,606 73,450 46,235 71,750 Information Technology Services 422,703 432,550 467,583 602,565 497,209 599,725 Vehicle & Equipment Maintenance 224,078 220,785 224,618 279,033 264,043 257,492 Facility Maintenance 817,506 813,842 804,049 900,766 850,535 859,531 Vehicle & Equipment Replacement 140,258 65,775 201,355 266,700 150,722 260,800 IT Equipment Replacement 58,530 23,687 44,762 136,280 84,040 89,800 Facility FFE Replacement - - 40,778 162,000 40,853 466,100 Total Internal Service Funds 2,265,256 2,178,896 2,281,460 3,073,699 2,388,644 3,291,828 Debt Service Funds 2001 Series GO Bond 889,510 889,960 885,010 847,960 847,885 847,310 Total Debt Service Funds 889,510 889,960 885,010 847,960 847,885 847,310 Capital Project Funds Street Projects 1,853,714 2,322,630 1,397,415 12,006,796 2,772,822 12,343,172 Park & Trail Projects 886,168 544,470 787,389 456,015 127,362 2,286,383 Facility Projects 286,412 369,650 237,731 745,192 382,631 383,477 Administrative Projects 69,220 42,878 168,186 872,697 167,499 893,313 Total Capital Project Funds 3,095,514 3,279,628 2,590,721 14,080,701 3,450,314 15,906,345 Total Expenditures 22,797,274$ 26,663,504$ 24,417,839$ 38,655,540$ 26,401,474$ 41,200,881$ Operating Transfers Out General Fund 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 IT Equip Replacement to CIP - - - - - - Street Capital Project Funds 225,698 - 1,443,419 - 30,000 - Park & Trail Capital Project Funds 59,837 - 240,620 99,750 96,548 - Facility Capital Projects Fund - - 58,516 - 25,384 - Admin Capital Projects Fund 118,672 40,000 - 92,394 117,394 - Total Operating Transfers Out 785,087$ 1,706,098$ 3,760,211$ 1,812,792$ 1,889,974$ 1,530,000$ Total Exp & Transfers Out 23,582,362$ 28,274,848$ 28,178,050$ 40,468,332$ 28,291,448$ 42,730,881$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 93 TOTAL EXPENDITURES & TRANSFERS OUT BY FUND TYPE Note: Capital Project revenue and expenditure amounts in the current year budget reflect full appropriation for receipt and expense of capital funding to indicate the potential impact of capital projects. However, this high level of activity is not expected as most projects are completed over multiple years. Remaining project balances at year-end carryover to the following fiscal year, and are again reflected as revenue and expenditure funding. FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 % of Expenditures By Fund Actuals Actuals Actuals Adjusted Actual Adopted Total General Fund 16,137,576$ 19,882,349$ 18,198,969$ 19,938,250$ 19,203,452$ 20,422,544$ 49.6% Special Revenue Funds 409,418 432,671 461,679 714,930 511,179 732,855 1.8% Internal Service Funds 2,265,256 2,084,142 2,281,460 3,073,699 2,388,644 3,291,828 8.0% Debt Service Funds 889,510 889,960 885,010 847,960 847,885 847,310 2.1% Capital Project Funds 3,095,514 3,279,628 2,590,721 14,080,701 3,450,314 15,906,345 38.6% Total Expenditures By Fund 22,797,274$ 26,568,750$ 24,417,839$ 38,655,540$ 26,401,474$ 41,200,881$ 100.0% Operating Fund Transfers 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 CIP Fund Transfers 404,207 40,000 1,742,555 192,144 269,326 - Total Expenditues & Transfers Out23,582,362$ 28,274,848$ 28,178,050$ 40,468,332$ 28,291,448$ 42,730,881$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 94 TOTAL REVENUES & TRANSFERS IN BY CATEGORY FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 % of Revenues by Category Actuals Actuals Actuals Adjusted Actual Adopted Total Property Tax 10,944,060$ 11,889,552$ 12,937,839$ 12,921,196$ 13,719,617$ 13,760,991$ 37.2% Sales Tax 941,350 1,224,427 1,189,398 1,125,000 1,185,035 1,150,000 3.2% Franchise Fee Tax 2,112,596 2,234,068 2,068,401 2,075,000 2,170,870 2,165,000 6.0% Transient Occupancy Tax 257,010 309,618 319,109 315,000 343,618 315,000 0.9% Business/Other Taxes 565,261 556,654 578,652 605,000 513,431 505,000 1.7% Intergovernmental 466,424 586,596 567,624 459,577 591,883 392,450 1.3% Fees, Licenses & Permits 1,524,041 1,409,199 1,544,844 1,486,280 1,500,843 1,407,400 4.3% Charge for Services 1,942,388 1,789,649 2,090,642 1,861,127 1,675,993 1,692,215 5.4% Interest Income 41,524 46,762 81,882 56,300 107,264 150,200 0.2% Rental Income 442,207 474,750 527,596 497,714 494,176 463,802 1.4% Other Sources 454,345 470,826 452,964 343,080 425,154 335,083 1.0% Operating Revenues 19,691,206$ 20,992,101$ 22,358,952$ 21,745,274$ 22,727,886$ 22,337,141$ 62.6% Internal Service Funds 2,360,000 2,495,000 2,670,836 2,750,000 2,750,000 2,850,000 7.9% Capital Improvements 2,587,657 2,284,511 1,878,270 10,216,399 2,254,291 9,334,405 29.4% Total Revenues 24,638,863$ 25,771,612$ 26,908,058$ 34,711,673$ 27,732,177$ 34,521,547$ 100.0% Fund Transfers In 785,087 1,767,108 3,492,293 1,762,792 1,889,974 1,530,000 Total Rev & Transfers 25,484,232$ 27,606,149$ 30,400,351$ 36,474,465$ 29,622,150$ 36,051,547$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 95 TOTAL EXPENDITURES & TRANSFERS OUT BY CATEGORY FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 % of Expenditure Category Actuals Actuals Actuals Adjusted Actual Adopted Total Salaries & Benefits 7,295,206$ 7,377,313$ 7,669,503$ 8,503,997$ 8,058,206$ 8,717,468$ 21.2% UAL Payments - 3,294,619 500,000 500,000 500,000 750,000 1.8% Materials & Supplies 447,068 357,664 378,414 631,727 448,564 595,390 1.4% Fees & Charges 1,655,610 1,663,773 1,648,500 2,013,800 1,782,748 1,936,096 4.7% Consultant & Contract Svcs 2,448,555 2,360,528 2,567,075 3,326,075 2,888,867 3,274,249 7.9% Sheriff Services 4,225,024 4,611,024 4,973,080 5,176,173 5,176,173 5,176,173 12.6% Meetings & Training 81,926 77,094 62,627 148,025 90,029 150,800 0.4% Community Grants & Events 169,725 162,516 202,525 243,381 222,127 247,751 0.6% Operating Grant Expenditures - - 34,762 - - - 0.0% Debt Service 889,510 889,960 885,010 847,960 847,885 847,310 2.1% Fixed Assets 129,138 94,386 234,787 433,700 186,560 749,300 1.8% Operating Expenditures 17,341,760$ 20,794,122$ 19,156,282$ 21,824,839$ 20,201,160$ 22,444,537$ 54.5% Internal Service Charges 2,360,000 2,495,000 2,670,836 2,750,000 2,750,000 2,850,000 6.9% Capital Improvements 3,095,514 3,279,628 2,590,721 14,080,701 3,450,314 15,906,345 38.6% Total Expenditures 22,797,274$ 26,568,750$ 24,417,839$ 38,655,540$ 26,401,474$ 41,200,881$ 100.0% Operating Transfers Out 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 CIP Fund Transfers Out 404,207 40,000 1,742,555 192,144 269,326 - Total Exp & Transfers Out 23,582,362$ 28,274,848$ 28,178,050$ 40,468,332$ 28,291,448$ 42,730,881$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 96 GENERAL FUND REVENUES BY DEPARTMENT 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Departments Actuals Actuals Actuals Adjusted Actuals Adopted Total Council & Commissions 1,200$ 3,600$ 600$ 600$ 4,200$ -$ 0.0% City Manager's Department 625 934 401 - 21,400 - 0.0% Administrative Services 47,609 56,581 50,147 47,880 64,276 47,050 0.2% Community Development 2,219,935 2,095,113 2,258,530 2,296,550 1,980,624 1,973,350 9.5% Public Works 1,014,993 991,143 1,071,813 721,590 937,004 782,894 3.8% Recreation & Facilities 910,597 905,638 1,069,399 1,048,512 1,012,314 1,001,300 4.8% Public Safety 447,024 460,596 431,735 382,525 455,909 373,000 1.8% Non-Departmental 13,626,382 15,005,940 15,899,970 15,726,229 16,636,685 16,600,179 79.9% Total General Fund Rev 18,268,366$ 19,519,545$ 20,782,596$ 20,223,886$ 21,112,412$ 20,777,773$ 100.0% Fund Transfers In 167,050 - 267,918 - 55,384 - GF Rev & Transfers In 18,435,416$ 19,519,545$ 21,050,514$ 20,223,886$ 21,167,796$ 20,777,773$ Use of Fund Balance Reserves: 73,101 118,788 176,560 - - - Development Reserve - - 60,000 - - - 50,000 50,000 50,000 50,000 50,000 50,000 CY CIP Reserve 280,880 1,633,345 1,777,896 1,410,648 1,410,648 1,530,000 CY CIP Reserve (UAL Pymt) - 500,000 - - - - Compensated Absences (216,721) - - - - - Fiscal Stability Reserve - 1,000,000 - - - - Fiscal Stability - Repayment - (500,000) (250,000) (250,000) (250,000) - Working Capital Reserve - 930,184 - - - - Total Sources $18,622,676 $23,251,862 $22,864,970 $21,434,534 $22,378,444 $22,357,773 Carryforward Reserve Environmental Reserve CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 97 GENERAL FUND EXPENDITURES BY DEPARTMENT 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 % of Departments Actuals Actuals Actuals Adjusted Actuals Adopted Total Council & Commissions 154,129$ 160,023$ 309,633$ 265,971$ 227,655$ 271,739$ 1.3% City Manager's Department 804,146 940,226 851,244 1,069,253 956,073 1,155,034 5.7% Administrative Services 1,236,490 1,290,046 1,352,648 1,422,302 1,373,060 1,460,640 7.2% Community Development 2,181,710 2,086,680 2,192,859 2,596,495 2,324,061 2,459,587 12.0% Public Works 4,833,962 4,948,538 5,059,055 5,457,362 5,389,996 5,652,410 27.7% Recreation & Facilities 1,383,277 1,363,426 1,474,777 1,680,221 1,573,142 1,491,777 7.3% Public Safety 4,491,384 4,859,379 5,225,854 5,451,666 5,443,759 5,666,241 27.7% Non-Departmental 1,052,480 4,234,030 1,732,899 1,994,981 1,915,706 2,265,115 11.1% 16,137,576$ 19,882,349$ 18,198,969$ 19,938,250$ 19,203,452$ 20,422,544$ 100.0% Fund Transfers Out 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 GF Exp & Transfers Out 16,518,456$ 21,548,447$ 20,216,625$ 21,558,898$ 20,824,100$ 21,952,544$ Total General Fund Exp CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 98 GENERAL FUND REVENUES BY CATEGORY FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 % of Revenue Category Actuals Actuals Actuals Adjusted Actuals Adopted Total Property Tax 9,526,189$ 10,436,621$ 11,301,176$ 11,331,350$ 12,003,942$ 12,110,800$ 58.3% Sales Tax 941,350 1,224,427 1,189,398 1,125,000 1,185,035 1,150,000 5.5% Transient Occupancy Tax 257,010 309,618 319,109 315,000 343,618 315,000 1.5% Business & Other Taxes 565,261 556,654 578,652 605,000 513,431 505,000 2.4% Franchise Fee Tax 2,112,596 2,234,068 2,235,514 2,242,113 2,356,539 2,349,429 11.3% Intergovernmental 466,424 586,596 547,075 437,000 584,480 372,000 1.8% Fees, Licenses & Permits 1,524,041 1,409,199 1,544,844 1,486,280 1,500,843 1,407,400 6.8% Charge for Services 1,942,388 1,789,649 2,079,939 1,849,127 1,666,164 1,682,215 8.1% Interest 40,003 45,229 79,341 55,000 102,787 147,500 0.7% Rental Income 440,287 474,750 527,596 497,714 494,176 463,802 2.2% Other Sources 452,817 452,734 379,952 280,302 361,396 274,627 1.3% Total Revenues 18,268,366$ 19,519,545$ 20,782,596$ 20,223,886$ 21,112,412$ 20,777,773$ 100.0% Fund Transfers In 167,050 - 267,918 - 55,384 - Total Revenues & Transfers 18,435,416$ 19,519,545$ 21,050,514$ 20,223,886$ 21,167,796$ 20,777,773$ Use of Fund Balance Reserves: Carryforward Reserve 73,101 118,788 176,560 - - - Development Reserve - - 60,000 - - - Environmental Reserve 50,000 50,000 50,000 50,000 50,000 50,000 CIP Reserve 280,880 1,633,345 1,777,896 1,410,648 1,410,648 1,530,000 CY CIP Reserve - 500,000 - - - - Compensated Absences (216,721) - - - - - Fiscal Stability Loan - 1,000,000 - - - - Fiscal Stability (Repayment) - (500,000) (250,000)(250,000) (250,000) - Working Capital - 930,184 - - - - Total Operating Sources $18,622,676 $23,251,862 $22,864,970 $21,434,534 $22,378,444 $22,357,773 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 99 GENERAL FUND EXPENDITURES BY CATEGORY FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 % of Expenditure Category Actuals Actuals Actuals Adjusted Actuals Adopted Total Salary & Benefits 6,408,421$ 6,484,653$ 6,814,803$ 7,592,718 7,171,061 7,833,226 38.4% CalPERS UAL Payment - 3,294,619 500,000 500,000 500,000 750,000 3.7% Materials & Supplies 236,925 195,949 207,649 323,820 248,600 339,090 1.7% Fees & Charges 759,799 732,387 835,636 961,238 939,859 847,112 4.1% Consultant & Contract Services 2,054,371 1,966,367 2,115,325 2,256,345 2,123,635 2,095,153 10.3% Sheriff Services 4,225,024 4,611,024 4,973,080 5,374,750 5,375,092 5,517,918 27.0% Meetings, Events, Training 80,468 73,668 59,431 140,525 87,606 145,800 0.7% Community Grants & Events 169,725 162,516 202,525 243,381 222,127 247,751 1.2% Operating Grant Exp - - 34,762 - - - 0.0% Fixed Assets - 35,343 - 10,000 - 20,000 0.1% Internal Services Charges 2,202,844 2,325,823 2,455,758 2,535,472 2,535,472 2,626,494 12.9% Total Expenditures 16,137,576$ 19,882,349$ 18,198,969$ 19,938,250$ 19,203,452$ 20,422,544$ 100.0% Fund Transfers Out 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 Total Exp & Transfers Out 16,518,456$ 21,548,447$ 20,216,625$ 21,558,898$ 20,824,100$ 21,952,544$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 100 GENERAL FUND TAX REVENUES CITIES OF SANTA CLARA COUNTY – TAX REVENUE COMPARISONS TAX REVENUE TOTAL AMOUNTS AND PER CAPITA Note - Table contains FY 2015/16 data at this is the most recent information available from neighboring cities $- $100 $200 $300 $400 $500 $600 $700 Sunnyvale SARATOGA Santa Clara San Jose Palo Alto Mountain View Morgan Hill Monte Sereno Milpitas Los Gatos Los Altos Hills Los Altos Gilroy Cupertino Campbell Business License Tax Transient Occupancy Tax Sales Tax Property Tax City Population Amount Per capita Amount Per capita Amount Per capita Amount Per capita Campbell 42,584 12,075,059 284 14,818,496 348 4,439,668 104 683,445 16 Cupertino 60,550 17,680,000 292 20,360,000 336 5,072,000 84 1,600,000 26 Gilroy 54,777 11,468,510 209 17,884,735 327 1,676,691 31 607,803 11 Los Altos 30,671 18,197,491 593 3,195,628 104 2,608,368 85 520,687 17 Los Altos Hills 8,583 4,960,016 578 103,921 12 - - 212,927 25 Los Gatos 31,189 13,743,123 441 7,501,175 241 1,800,000 58 1,465,547 47 Milpitas 75,521 27,068,110 358 24,718,975 327 11,757,327 156 499,045 7 Monte Sereno 3,800 1,513,407 398 26,825 7 - - 37,446 10 Morgan Hill 43,645 10,023,019 230 9,437,549 216 2,275,882 52 190,756 4 Mountain View 77,925 39,460,578 506 21,401,425 275 6,590,636 85 244,731 3 Palo Alto 66,968 41,189,000 615 30,018,000 448 22,366,000 334 11,228 0 San Jose 1,042,000 263,299,000 253 201,797,000 194 41,125,000 39 50,864,000 49 Santa Clara 123,752 45,627,207 369 57,795,787 467 20,557,284 166 909,324 7 SARATOGA 30,219 11,301,176 374 1,189,398 39 319,109 11 365,170 12 Sunnyvale 149,831 63,945,000 427 32,914,114 220 16,295,000 109 1,872,000 12 Average 122,801 38,770,046 316 29,544,202 241 9,125,531 74 4,005,607 33 Property Tax Sales Tax Transient Occupancy Business License CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 101 GENERAL FUND REVENUES 10 YEAR HISTORY AND PROJECTED KEY TAX REVENUES NOTE: Property Tax Revenue and Tax Equity Allocation –FY 2015/16 Property Tax Revenues reflects the 1st year of the State’s agreement to eliminate the remaining Tax Equity Allocation (TEA) higher ERAF withholding rate over a five year span. Beginning in FY 2015/16, 20% of the higher rate is eliminated, meaning the tax revenue difference is returned to the City – until the City’s ERAF withholding formula is fully 100% assimilated. At FY 2015/16, this 20% difference was calculated to be equivalent to an additional $130,000 of revenue. With continued property assessment growth, each 20% amount has an actual revenue growth trajectory increasing by both the additional 20% and the higher valuation each year. Summary of Change from Tax Revenues Prior Year 2007/08 Actuals 7,922,815$ 1,057,977$ 211,532$ 290,996$ 9,483,320 4.5% 2008/09 Actuals 8,155,362$ 1,043,034$ 151,378$ 321,347$ 9,671,121 2.0% 2009/10 Actuals 8,194,364$ 954,574$ 144,151$ 303,990$ 9,597,079 (0.8%) 2010/11 Actuals 8,026,659$ 990,579$ 184,362$ 310,273$ 9,511,873 (0.9%) 2011/12 Actuals 8,279,947$ 1,100,489$ 205,421$ 313,984$ 9,899,841 4.1% 2012/13 Actuals 8,966,396$ 1,051,121$ 228,199$ 336,298$ 10,582,014 6.9% 2013/14 Actuals 9,526,189$ 941,350$ 257,010$ 336,911$ 11,061,460 4.5% 2014/15 Actuals 10,436,621$ 1,224,427$ 309,618$ 357,597$ 12,328,263 11.5% 2015/16 Actuals 11,301,176$ 1,189,398$ 319,109$ 365,710$ 13,175,393 6.9% 2016/17 Actuals 12,003,942$ 1,185,035$ 343,618$ 343,442$ 13,876,037 5.3% 2017/18 Budgeted 12,110,800$ 1,150,000$ 315,000$ 355,000$ 13,930,800 0.4% Property Tax Sales Tax Occupancy Tax Business License TaxFiscal Year CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 102 GENERAL FUND FUND BALANCE ACTIVITY Estimated Plus Less Sources Estimated 7/1/2017 Transfers Transfers (Uses) of 6/30/2018 General Fund Reserves:Balance Revenues In Expenditures Out Fund Balance Balance Restricted Environmental Services 263,182 - - - - (50,000) 213,182 Committed Hillside Stability 790,000 - - - - 100,000 890,000 Assigned Capital Reserve 1,564,589 - - - - (300,200) 1,264,389 Facility Reserve 1,700,000 - - - - 500,000 2,200,000 Carryforwards 7,246 - - - - (7,246) - Unassigned Working Capital Reserve 1,000,000 - - - - - 1,000,000 Fiscal Stability Reserve 2,500,000 - - - - - 2,500,000 Development Services 719,562 - - - - - 719,562 Compensated Absences 209,937 - - - - - 209,937 Other Unassigned 2,229,800 20,777,773 - (20,422,544) (1,530,000) (242,554) 812,475 Total GF Reserves:10,984,315 20,777,773$ -$ (20,422,544)$ (1,530,000)$ -$ 9,809,545$ GENERAL FUND Reserve Activity includes: Carryforward Reserves reflects an estimate of prior year unspent General Fund budget appropriations to be re-appropriated for the same purpose and paid for in the next fiscal year. Working Capital Reserve ensures sufficient cash flow funding for the General Fund. The reserve was revised to $1,000,000 effective with the 2016/17 fiscal year. Fiscal Stability Reserve of $2,500,000 is to be used to maintain fiscal stability. Upon approval from the City Council, this reserve may provide funding relief for such matters as State takeaways, unanticipated revenue shortfalls, unexpected expenses or natural disasters. This reserve is not adjusted for interest earnings.Development Services Reserve reflects accumulated funding to offset revenue and expense timing for multi-year development service obligations and for other development related expenses as directed by Council. Compensated Absences Reserve accrues funding to fund employee termination payouts as needed. The reserve balance is equal to one- third of the actual liability at year-end. Fund Balance Reserves reflect the cumulative effect of revenues and other financing sources over expenditures and other financing uses. Restricted Fund Balance - represents legal restrictions and obligations; Committed Fund Balance - represents Council directed funding for a specific and binding use; Assigned Fund Balance - represents resources that reflect the City's intended use of funds Unassigned Fund Balance - estimated year-end fund balance not previously identified for a specific purpose, and therefore available to buffer unplanned financial situations during the fiscal year. Environmental Reserve accounts for prior year funding obligated for use in the Environmental program - as originally collected under the City's former solid waste agreement. To comply with this objective, $50,000 of supplemental funding is utilized to support the Environmental program each fiscal year. Hillside Stability Reserve reflects funding set aside for emergency roadway and retaining wall support projects. Capital Reserve reflects funding designated to fund capital and efficiency projects in the current or future fiscal years as of budget adoption. Facility Reserve was established to accrue funding for the eventual replacement or major rehabilitation of City Buildings. Eligible uses of this reserve include direct funding of public facility improvements, and/or the servicing of related debt. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 103 SCHEDULE OF INTERFUND TRANSFERS Actuals Actuals Budgeted Budgeted 2016/17 2016/17 2017/18 2017/18 Transfers In Transfers Out Transfers In Transfers Out General Funds General Fund 55,384 1,620,648 - 1,530,000 Special Revenue Funds Landscape & Lighting Districts - - - Internal Service Funds Facility Furniture & Equipment Replacement - - - Trust Funds Library Capital Projects - - - KSAR - - - Capital Project Funds Street Projects 1,305,000 30,000 1,034,000 - Parks & Trail Projects 171,548 96,548 420,000 - Facility Projects 190,648 25,384 - - Administrative Projects 167,394 117,394 76,000 - Total Interfund Transfers 1,889,974$ 1,889,974$ 1,530,000$ 1,530,000$ 2. $ 55,384 to GF from CIP Streets 3. $ 30,000 from CIP projects to GF FY 2016/17 Interfund Transfers Out Transfers Out of $1,889,974 is comprised of: 1. $ 1,620,648 from GF to CIP projects 2. $ 239,326 from CIP to other CIP projects Transfer In of $ 1,889,974 is comprised of : 1. $1,834,590 to CIP projects: $ 1,305,000 to CIP Streets $171,548 to CIP Parks & Trails $ 190,648 to CIP Facilities Projects $ 167,394 to CIP Admin & Tech Fund Description FY 2017/18 Interfund Transfers In Transfer In of $ 1,530,000 is comprised of : 1. $1,530,000 to CIP projects: $ 1,034,000 to Streets $ 420,000 to Parks & Trails $ 76,000 to Admin & Tech Projects FY 2017/18 Interfund Transfers Out Transfers Out of $ 1,531,250 is comprised of: 1. $ 1,530,000 from GF to CIP projects FY 2016/17 Interfund Transfers In CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 104 TOTAL FUND BALANCE ACTIVITY FY 2017/18 Plus Plus Less Less Sources 6/30/2018 7/1/2017 Revenues &Transfers Exp & Transfers (Uses) of Estimated Balance Carryfwds In Carryfwds Out Fund Bal Balance General Fund Restricted Environmental Services 263,182 - - - - (50,000) 213,182 Committed Hillside Stability 790,000 - - - - 100,000 890,000 Assigned Capital Project Reserve 1,564,589 - - - (300,200) 1,264,389 Facility Reserve 1,700,000 - - - - 500,000 2,200,000 Carryforwards 7,246 - - - - (7,246) - Unassigned Working Capital Reserve 1,000,000 - - - - - 1,000,000 Fiscal Stabilization Reserve 2,500,000 - - - - - 2,500,000 Development Services 719,562 - - - - - 719,562 Compensated Absences 209,937 - - - - - 209,937 Other Unassigned 2,229,800 20,777,773 - (20,422,544) (1,530,000) (242,554) 812,475 Total General Fund 10,984,316$ 20,777,773$ -$ (20,422,544)$ (1,530,000)$ -$ 9,809,545$ Special Revenue Funds Landscape & Lighting Dist.1,152,869 655,618 - (732,855) - - 1,075,632 - Total Special Revenue Funds 1,152,869$ 655,618$ -$ (732,855)$ -$ -$ 1,075,632$ Internal Service Funds Liability / Risk Management 504,481 410,450 - (493,865) - - 421,066 Workers Compensation 294,052 185,000 - (192,765) - - 286,287 Office Support Fund 109,806 60,000 - (71,750) - - 98,056 IT Services 308,072 580,600 - (599,725) - - 288,947 Vehicle & Equip Maintenance 176,906 275,000 - (257,492) - - 194,414 Facility Maintenance 454,606 925,000 - (859,531) - - 520,075 Vehicle & Equip Replacement 585,986 150,000 - (260,800) - - 475,186 IT Equipment Replacement 315,299 150,000 - (89,800) - - 375,499 Facility FFE Replacement 498,369 200,000 (466,100) - - 232,269 Total Internal Service Funds 3,247,577$ 2,936,050$ -$ (3,291,828)$ -$ -$ 2,891,799$ Debt Service Funds GO Bond Debt Service 959,322 817,700 - (847,310) - - 929,712 Total Debt Service Funds 959,322$ 817,700$ -$ (847,310)$ -$ -$ 929,712$ Internal Service Funds accounts provide operational costing for citywide services. Two of these funds are equipment replacement funds which charge back to departments the cost of the assets over their lifespan, to ensure replacement funding is available when required, and to charge an appropriate annual cost for the asset. Replacement Fund balances reflect funding accumulated to date for asset replacement. The remaining Internal Service Funds provide for the cost of services and insurance in a fair, allocated manner. Debt Service Funds manage the repayment of City debt. The City issued a General Obligation Bond in 2001 for the library expansion project. The Fund reflects the property tax assessment receipts, and the debt principal & interest payments made during the fiscal year. Fund Balance reflects the City's reserve for this debt issuance. Currently, the assessment revenues are intentionally set less than expenditures to reduce the Fund Balance to an appropriate debt level. Other Unassigned Fund Balance Reserves reflect the operating budget's ongoing revenues, expenditures, carryforwards, transfers in and out, and the use of fund balance reserves. Committed, Assigned, and the remaining Unassigned Reserves reflect funding held in compliance with specific fund balance policy and Council direction. The Restricted Reserve accounts for funding obligated for use in the Environmental program originally collected under the City's former solid waste agreement. Special Revenue Funds account for legally restricted revenues and obilgations. Landscape & Lighting Fund budgeted expenditures typically include all available funds to allow for use in unplanned repairs, if necessary, but are not anticipated to be used in full each year. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 105 TOTAL FUND BALANCE ACTIVITY FY 2017/18 Plus Plus Less Less Source &6/30/2018 7/1/2017 Revenues &Transfers Expenditures &Transfers (Use) of Estimated Balance Carryforwards In Carryforwards Out Fund Bal Balance Capital Improvement Plan Funds Street Projects 3,091,458 8,217,714 1,034,000 (12,343,172) - - - Parks & Trails Projects 1,053,733 821,015 420,000 (2,286,383) - - 8,365 Facility Projects 252,801 165,676 - (383,477) - - 35,000 Administrative Projects 687,313 130,000 76,000 (893,313) - - - Total Capital Impr Funds 5,085,305$ 9,334,405$ 1,530,000$ (15,906,345)$ -$ -$ 43,365$ FUND BALANCE TOTALS 21,429,389$ 34,521,547$ 1,530,000$ (41,200,881)$ (1,530,000)$ -$ 14,750,053$ The above CIP funds are included at a summary level.Capital revenues include all outstanding funding sources identified as a source of funds for projects,however not all funding is expected to become available in the fiscal year.Similarly,appropriated expenditures are not expected to be expended as most are multi-year projects. Funds will be reduced to actuals at year-end and the remaining project balance will be rolled forward. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 106 FUND BALANCE RESERVES 5 YEAR COMPARATIVE HISTORY 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Actual Actual Actual Actual Budgeted YE Balance YE Balance YE Balance YE Balance YE Balance General Fund Restricted Environmental Services 413,182 363,182 313,182 263,182 213,182 Committed Hillside Stability 992,934 1,000,000 1,000,000 790,000 890,000 Assigned Capital & Efficiency Reserve 1,928,915 1,657,896 1,472,408 1,564,589 1,264,389 Facility Reserve 600,000 900,000 1,200,000 1,700,000 2,200,000 Carryforwards 118,788 176,560 28,086 - - Unassigned Working Capital Reserve 2,930,184 2,007,545 1,000,000 1,000,000 1,000,000 Fiscal Stabilization Reserve 1,500,000 1,000,000 2,250,000 2,500,000 2,500,000 Development Services 705,459 713,891 719,562 719,562 719,562 Compensated Absences 223,846 208,167 209,937 209,937 209,937 Other Unassigned 2,422,326 1,779,490 2,447,445 2,229,800 812,475 Total General Fund Reserves 11,835,634$ 9,806,731$ 10,640,620$ 10,977,070$ 9,809,545$ Special Revenue Funds Landscape & Lighting Districts 733,831 867,643 1,005,791 1,152,869 1,075,632 Total Special Revenue Funds 733,831$ 867,643$ 1,005,791$ 1,152,869$ 1,075,632$ Internal Service Liability / Risk Management 297,825 291,264 376,488 504,481 421,066 Workers Compensation 281,642 314,525 304,401 294,052 286,287 Office Support Services 53,121 75,075 96,172 109,806 98,056 IT Services 262,069 260,322 274,223 308,072 288,947 Vehicle & Equipment Maintenance 36,349 115,564 165,949 176,906 194,414 Facility Maintenance 199,869 268,326 370,717 454,606 520,075 Vehicle & Equipment Replacement 508,880 649,498 611,708 585,986 475,186 IT Equipment Replacement 152,788 194,101 274,339 315,299 375,499 Facility FFE Replacment - - 339,222 498,369 232,269 Total Internal Service Reserves 1,792,543$ 2,168,675$ 2,813,219$ 3,247,577$ 2,891,799$ Debt Service 2001 Series Library GO Bonds 897,786 906,600 922,952 959,322 929,712 Total Debt Service 897,786 906,600 922,952 959,322 929,712 OPERATING BUDGET RESERVES 15,259,794$ 13,749,649$ 15,382,582$ 16,336,838$ 14,706,688$ Fund Balance Reserves CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 107 FUND BALANCE RESERVES 5 YEAR COMPARATIVE HISTORY GRAPHIC REPRESENTATION OF GENERAL FUND AND TOTAL OF ALL FUNDS 5 YEAR FUND BALANCE HISTORY, BUDGET YEAR, AND 5 YEAR TREND PROJECTION Note – In the above graph, the FY 2017/18 fund balance (in white) and five years forward reflect full expenditure of the Capital Budget in the first budget year, thereby causing a steep drop and a continued zero balance from that point forward. The full appropriation of the capital project budget allows for full encumbrance and completion of the projects during the fiscal year, although full expenditure is not expected to occur, and project balances will carry forward into the following fiscal year. While actual total fund balance growth has averaged 3.3% over the last ten years, future year projections represent a conservative operating and capital budget with a 1% minimal growth in outlaying year’s fund balances. 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Actual Actual Actual Actual Budgeted YE Balance YE Balance YE Balance YE Balance YE Balance Capital Project Funds Street Project Funds 1,724,577 1,904,296 2,720,317 3,091,458 - Park & Trail Project Funds 1,028,874 1,238,992 1,082,410 1,053,733 8,365 Facility Improvement Funds 206,036 347,619 245,639 252,801 35,000 Administrative Project Funds 166,820 367,870 667,699 687,313 - Total Capital Projects Funds 3,126,307 3,858,777 4,716,065 5,085,305 43,365 TOTAL RESERVES 18,386,101$ 17,608,426$ 20,098,647$ 21,422,143$ 14,750,053$ Fund Balance Reserves CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 108 DEPARTMENT REVENUES BY PROGRAM FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted Council & Commissions General Fund Programs: City Council 1,200$ 3,600$ 600$ 600$ 4,200$ -$ City Commissions - - - - - - Total Council & Commissions 1,200$ 3,600$ 600$ 600$ 4,200$ -$ City Manager's Department General Fund Programs: City Manager's Office 600 800 400 - - - City Clerk 25 134 1 - 21,400 - Public Information Office - - - - - - Total City Manager's Dept 625$ 934$ 401$ -$ 21,400$ -$ Administrative Services Department General Fund Programs: Finance 47,609 56,581 50,147 47,880 49,041 47,050 Human Resources - - - - 15,235 - Administrative Services - - - - - - Internal Service Funds:801,300 Office Support Services 65,028 68,183 65,703 62,000 59,868 60,000 Information Technology Services 403,488 430,803 481,485 531,500 531,058 580,600 IT Equipment Replacement 55,000 65,000 125,000 125,000 125,000 150,000 Total Finance & Admin Svcs 571,125$ 620,567$ 1,523,634$ 766,380$ 780,203$ 837,650$ Community Development General Fund Programs: Development Services 560,730 533,310 485,150 526,400 477,961 482,200 Advanced Planning 228,523 156,165 191,186 160,000 179,999 160,000 Code Compliance 7,650 10,725 9,875 7,500 10,432 9,300 Building & Inspection Services 1,423,032 1,394,913 1,572,319 1,602,650 1,312,232 1,321,850 Total Community Developmt 2,219,935$ 2,095,113$ 2,258,530$ 2,296,550$ 1,980,624$ 1,973,350$ Public Works Department General Fund Programs: General Engineering 117,702 218,070 182,716 100,250 239,185 200,250 Development Engineering 169,014 139,654 311,073 72,000 112,712 71,600 Environmental Services 190,487 191,790 196,386 187,113 213,783 204,429 Streets & Storm Drains 245,811 186,633 194,781 187,000 194,447 122,000 Parks & Landscape Maintenance 291,980 254,995 186,857 175,227 176,877 184,615 Internal Service Funds: Vehicle & Equipment Maintenance 250,000 300,000 275,003 275,000 275,000 275,000 Vehicle & Equipment Replacement 207,050 206,393 163,565 125,000 125,000 150,000 Special Revenue Fund: Landscape & Lighting Districts 521,307 566,483 599,827 625,011 658,256 655,618 Total Public Works Departmt 1,993,350$ 2,064,018$ 2,110,208$ 1,746,601$ 1,995,260$ 1,863,512$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 109 DEPARTMENT REVENUES BY PROGRAM FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted Recreation & Facilities Department General Fund Programs: Recreation Services 662,212$ 603,570$ 627,245$ 630,400$ 581,731$ 606,000$ Teen Services 782 1,500 2,066 5,000 3,432 3,500 Facility Rentals 247,604 300,567 440,088 413,112 427,152 391,800 Internal Service Funds: Facility Maintenance 832,474 882,299 906,440 929,000 934,424 925,000 Facility FFE Replacement - - 200,000 200,000 200,000 200,000 Total Recreation Departmt 1,743,071$ 1,787,937$ 2,175,839$ 2,177,512$ 2,146,738$ 2,126,300$ Public Safety General Fund Programs: Public Safety Services 434,748 460,576 431,560 382,525 455,909 373,000 Emergency Preparedness 12,276 20 175 - - - Total Public Safety 447,024$ 460,596$ 431,735$ 382,525$ 455,909$ 373,000$ Non-Departmental General Fund Programs: General Administration 13,601,382 15,000,920 15,897,465 15,725,829 16,542,650 16,600,179 Legal Services 25,000 20 - - 40 - Community Grants - - - - - - Community Events - 5,000 2,506 400 - - Emergency Operations - - - - 93,995 - Internal Service Funds: Risk Management/Liability 389,809 399,482 343,808 412,577 392,699 410,450 Workers Compensation Ins 217,433 217,567 185,000 185,000 179,954 185,000 Debt Service Funds 2001 Bond Debt Service Fund 901,539 898,774 901,362 801,300 884,255 817,700 Total Non-Departmental 15,135,163$ 16,521,764$ 17,330,140$ 17,125,106$ 18,093,591$ 18,013,329$ Capital Improvement Funds Capital Improvement Programs: Street Projects 1,489,006 1,771,339 1,206,299 9,286,478 1,868,961 8,217,714 Park & Trail Projects 967,061 311,143 493,047 456,015 23,685 821,015 Facility Projects 131,590 38,580 40,371 343,906 224,530 165,676 Administrative & Technology - 163,928 138,552 130,000 137,115 130,000 Total Capital Impr Projects 2,587,657$ 2,284,991$ 1,878,270$ 10,216,399$ 2,254,291$ 9,334,405$ Operating Transfers In General Fund 167,050 - - - 55,384 - FFE Replacement Fund - - 180,000 - - - Capital Projects - Streets 234,487 731,010 2,450,555 1,305,000 1,305,000 1,034,000 Capital Projects - Parks/Trails 119,877 443,445 378,380 99,750 171,548 420,000 Capital Projects - Facilities 100,000 472,653 153,896 190,648 190,648 - Capital Projects - Admin/Tech 163,673 120,000 329,462 167,394 167,394 76,000 Total Operating Transfers In 785,087$ 1,767,108$ 3,492,293$ 1,762,792$ 1,889,974$ 1,530,000$ Total Revenues and Transfers In25,484,237$ 27,606,629$ 31,201,651$ 36,474,465$ 29,622,190$ 36,051,547$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 110 DEPARTMENT EXPENDITURES BY PROGRAM FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted Council & Commissions General Fund Programs: City Council 124,780$ 129,132$ 278,794$ 214,058$ 188,067$ 208,877$ City Commissions 29,349 30,891 30,840 51,913 39,589 62,863 Total Council & Commissions 154,129$ 160,023$ 309,633$ 265,971$ 227,655$ 271,739$ City Manager's Department General Fund Programs: City Manager's Office 500,476 569,824 527,923 451,020 449,212 564,534 City Clerk 303,670 370,402 323,321 438,418 395,717 372,744 Public Information Office - - - 179,815 111,144 217,756 Human Resources* - - - - - - Total City Manager's Dept 804,146$ 940,226$ 851,244$ 1,069,253$ 956,073$ 1,155,034$ Administrative Services Department General Fund Programs: Finance Services 899,080 778,447 797,281 827,378 813,531 856,223 Human Resources 337,410 325,218 332,482 343,037 329,997 360,097 Administrative Services - 186,382 222,885 251,887 229,531 244,320 Internal Service Funds: Management Information Systems*- - - - - - Office Support Services 35,928 46,229 44,606 73,450 46,235 71,750 Information Technology Service 422,703 432,550 467,583 602,565 497,209 599,725 IT Equipment Replacement 58,530 23,687 44,762 136,280 84,040 89,800 Total Administrative Services 1,753,651 1,792,513 1,909,600 2,234,597 2,000,543 2,221,915 Community Development General Fund Programs: Development Services 955,477 909,462 933,024 929,692 879,621 851,184 Advanced Planning 254,409 113,311 119,583 167,090 146,160 152,554 Code Compliance 52,643 127,653 161,859 247,530 195,952 240,975 Building & Inspection Services 919,181 936,255 978,393 1,252,182 1,102,328 1,214,874 Total Community Developmt 2,181,710$ 2,086,680$ 2,192,859$ 2,596,495$ 2,324,061$ 2,459,587$ Public Works Department General Fund Programs: General Engineering 502,680 532,614 518,312 571,603 584,471 685,337 Development Engineering 213,150 194,320 227,645 233,692 232,146 278,964 Environmental Services 643,314 615,342 665,655 769,289 704,738 766,244 Streets & Storm Drains 1,381,240 1,454,269 1,447,110 1,623,030 1,636,003 1,611,562 Parks & Landscape Maint 2,093,578 2,151,993 2,200,334 2,259,748 2,232,638 2,310,304 Internal Service Funds: Vehicle & Equip Maintenance 224,078 220,785 224,618 279,033 264,043 257,492 Vehicle & Equip Replacement 140,258 65,775 201,355 266,700 150,722 260,800 Special Revenue Funds: Landscape & Lighting Districts 409,418 432,671 461,679 714,930 511,179 732,855 Total Public Works Dept 5,607,716$ 5,667,769$ 5,946,707$ 6,718,025$ 6,315,939$ 6,903,557$ CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 111 DEPARTMENT EXPENDITURES BY PROGRAM FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2016/17 FY 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted Recreation & Facilities Department General Fund Programs: Recreation Services 961,244$ 940,097$ 1,017,682$ 1,075,400$ 1,005,302$ 940,276$ Teen Services 57,836 47,073 53,228 52,803 48,870 49,556 Facility Rentals 364,197 376,256 403,867 552,018 518,970 501,946 Internal Service Funds: Facility Maintenance 817,506 813,842 804,049 900,766 850,535 859,531 Facility FFE Replacement - - 40,778 162,000 40,853 466,100 Total Recreation & Facilities 2,200,783 2,177,268 2,319,604 2,742,986 2,464,530 2,817,408 Public Safety General Fund Programs: Public Safety Services 4,411,156 4,792,104 5,161,618 5,380,500 5,380,359 5,523,918 Emergency Preparedness 80,227 67,275 64,236 71,166 63,400 142,323 Total Public Safety 4,491,384 4,859,379 5,225,854 5,451,666 5,443,759 5,666,241 Non-Departmental General Fund Programs: General Administration 492,236 3,783,847 1,205,042 1,378,800 1,180,347 1,684,564 Legal Services 390,518 287,667 325,331 372,800 412,970 332,800 Community Grants 147,506 135,061 147,755 152,031 152,772 148,051 Community Events 22,219 27,455 54,770 91,350 69,356 99,700 Emergency Operations - - - - 100,261 - Internal Service Funds: Liability / Risk Management 336,743 296,590 258,585 436,050 264,706 493,865 Workers Compensation 229,510 184,683 195,124 216,856 190,303 192,765 Debt Service Fund: 2001 Bond Debt Service Fund 889,510 889,960 885,010 847,960 847,885 847,310 Total Non-Departmental 2,508,243 5,605,263 3,071,617 3,495,847 3,218,600 3,799,055 Capital Improvement Program Capital Improvement Funds: Street Projects 1,853,714 1,397,415 12,006,796 2,772,822 12,343,172 Park & Trail Projects 886,168 544,470 787,389 456,015 127,362 2,286,383 Facility Projects 286,412 369,650 237,731 745,192 382,631 383,477 Administrative Projects 69,220 42,878 168,186 872,697 167,499 893,313 Total Capital Impr Projects 3,095,514 3,279,628 2,590,721 14,080,701 3,450,314 15,906,345 Operating Transfers Out General Fund 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 Capital Projects - Streets 225,698 61,010 1,443,419 - 30,000 - Capital Projects - Parks & Trails 59,837 - 240,620 99,750 96,548 - Capital Projects - Facilities - - 58,516 - 25,384 - Capital Projects - Administrative 118,672 40,000 - 92,394 117,394 - Total Operating Transfers 785,087 1,706,098 3,760,211 1,812,792 1,889,974 1,530,000 Total Exp &Transfers Out 23,582,362 28,274,848 28,178,050 40,468,332 28,291,448 42,730,881 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 112 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 113 STAFFING INFORMATION CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 114 SUMMARY OF EMPLOYEE SALARY & BENEFITS The City of Saratoga’s total salary and benefit expenditures are budgeted at $8.7 million dollars in FY 2017/18, representing approximately 21.7% of total budgeted expenditures. Approximately $7.8 million or 89.7% of labor costs reside in the General Fund and represent 38.1% of the General Fund’s budgeted expenditures. The addition of a full-time staff position and annual labor increases from cost-of-living- adjustments (COLA), employee step increases, and pension cost increases contributed to the rise in total labor costs. The increases were offset in part by turnover during FY 2016/17, and the subsequent lower wages and pension tiers for the new employees. Organizational Changes A few staffing changes will impact the Community Development Department (CDD) in FY 2017/18. The City will be utilizing the broad skills available from the department’s Senior Building Inspector/Plan Checker, who is an engineer as well as a construction inspector and plan checker. With the City’s Sr. Engineer’s retirement, and the increase in the Clean Water program’s water runoff requirements, CDD has agreed to share the staff position with Public Work’s Engineering Division to oversee several duties that flow across the two departments. Each department will now have .50 FTE of the position, with duties focused on engineering inspection and development project’s stormwater oversight functions. With this shift, the position will be reclassified as an Associate Engineer. The Community Development Department will see another change with the planned retirement of the Director effective June 30, 2017. The vacant position will initially be filled with an experienced retiree acting as a part-time Interim Director. The City Manager will provide some additional support to the department. A departmental organizational assessment will be conducted prior to filling the CDD Director position. Funding for the part-time Interim Director will come from the fully budgeted director position. Temporary staff funding was continued for a Sr. Project Manager in CDD for the FY 2017/18 budget, to assist the department with more complex projects and staff support for the Historic Preservation Commission. Additionally, a part-time temporary GIS/Graphics Technician is funded this year to assist with GIS implementation and graphical related assignments. This position will also be shared between Public Works and CDD to support improvements with GIS functions and the transition of the Sr. Engineer’s retirement. Contingency contract services funding was also budgeted in CDD for ongoing plan check or building inspection services, as needed throughout the fiscal year. With planning and building workload demand at a steady but flattening pace, development-related services are expected to remain at current levels, and contract services only utilized if needed. A full-time Deputy City Manager position will be added to the City Manager’s department in FY 2017/18 to assist with new initiatives that arise, increased workload demands from the implementation of new or revised programs, enhanced communication duties, and to provide oversight for the City Clerk and Public Information Office functions. Combined with a .10 FTE decrease in the Executive Assistant to the City Manager position, this change will bring the funded staff levels up to 56.50 FTE in FY 2017/18. Budget Strategies As a minimum-services contract city, Saratoga has long seen the benefit of minimal staffing enhanced through contract and temporary staffing on an as-needed basis. Periodic and ongoing staffing augmentation is typically utilized for landscape maintenance services, recreation and facility services, development services, and attorney services. The City finds that the contract services 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 in-house with City resources. Dedicated Sheriff Officers and staff are assigned to the City, although personnel and services 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. Saratoga’s personnel costs have remained manageable through long-term strategies. While neighboring cities raised employee benefits to an enhanced 2.5% or 2.7% @ 55 pension plan during the economic bubble, CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 115 the City’s employee benefit structure remained at the more sustainable 2% @55 pension plan. This lower benefit plan has and will continue to provide significant labor costs savings to the City of Saratoga in future years. Other cities will see their enhanced plans increase to almost double Saratoga’s standard plan cost. Additionally, Saratoga does not provide retiree health benefits to employees, thereby eliminating another very costly liability that many cities are struggling under. As a result of employee benefit restraint, the City managed to maintain core services and minimize impacts to residents and employees alike during the economic downturn. While there were a couple of employee layoffs, and three mandatory furlough days, they were minimal in comparison to some other cities. Residents were provided a mostly consistent level of services during the FY 2009/10 – FY 2012/13 recession. The added benefit of employee retention throughout these four difficult years added to institutional knowledge and efficient operations that continues today. Employee Compensation and Benefits The City’s salary and benefit expenditure growth will continue to be constrained in the years to come by employee turnover and retirements. The 2011 MOU negotiations established reduced pension benefits for employees, and lower medical benefits for new employees. Furthermore, subsequent State legislation known as PEPRA reduced retirement benefits for future employees not yet a member of the CalPERS pension plan system. As a result, new employee pension plan benefits will be reduced: ‘Classic’ CalPERS members hired on or after May 12, 2012 go into a second tier CalPERS retirement package of 2% @60; new CalPERS members (new enrollees hired after January 1, 2013) fall into a 2% @62 pension plan third tier. The annual savings equals th e difference between the pool-specific rates times the respective second and third tier payroll. Annual saving from implementing these new tiers were small at first, but over time have grown. One-third of the City’s staff now falls into one of the two reduced plans. The 2015 MOU negotiations focused on reducing long-term employee medical benefit costs, and increasing new employee medical benefits, to come to a standardized level of medical benefit s for all employees. The new standardized medical benefits now provide a cost sharing arrangement that has employees paying for 50% of the medical insurance premium growth into the future. 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 are scheduled to be put into place. The City does not use a vacancy factor in salary projections as typically there is very little turnover, and most positions require temporary backfill or a quick recruitment process due to the City’s limited staffing. The majority of staff positions are at top step, and health insurance benefits are budgeted at the employee’s current status under their chosen health insurance plan to provide more accuracy in the total salary and benefit costs. A payroll expense buffer is built into budgeted salary numbers to offset unknown cost impact which may occur during the fiscal year, and to fund terminations, turnover or disability backfill, PTO buyouts, excess overtime, and the Compensated Absences Reserve in compliance with policy, if needed a t year-end. 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) contract. Memorandums of Understanding Effective January 2016, the Saratoga Management Association, representing the four Department Directors, disbanded and are now classified as unrepresented, along with the City Clerk, Deputy City Manager, the Finance and HR Managers, the HR Technician, and the two Pu blic Works Managers. The City Manager, also unrepresented, has a negotiated contract. The remainder of benefitted employees are represented by one of two bargaining units: 1) the Saratoga Employees Association (SEA) with thirty-three full and part-time CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 116 employees, and 2) the United Brotherhood of Carpenters and Joiners of America Local Union No 2236 (UNION) for the thirteen Public Work’s Corporation Yard staff. Hourly (non-benefited, temporary) staff are not represented by associations. The two bargaining units entered into a four year MOU agreement effective through June 30, 2019, and the Council provided a resolution to the unrepresented group approving compensation and terms of employment similar to the bargaining unit agreements. Wages Salaries are adjusted as defined by the MOUs or resolution, and typically provide cost of living adjustments 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. Effective with the 2011 MOUs, employees pay the full 7% CalPERS employee contribution from their wages. Per State law, the City Manager’s wage increase is based on the California Department of Industrial Relations (DIR) Cost of Living adjustments rather than the US Bureau of Labor Statistics. Employee Benefits The City provides limited benefit coverage for medical insurance, and full benefit coverage for dental, life, and long-term disability insurance to its benefitted employees. The City pays the Employers share of the CalPERS pension plan benefits on behalf of its eligible employees. The City contracts for health insurance through CalPERS, offering employees a choice of CalPERS offered medical plans. Although CalPERS has substantial negotiating powers, health insurance premiums continue to increase each year. The 2015 MOU negotiations changed the medical insurance benefits to provide an $800 base contribution for Single employees, $1600 for Employee + One plans, and $2,080 for Employee + 2 plans, beginning calendar year 2016. Per the MOU, the City’s base increases by 50% of the average medical premium increase each future year, and employees must pay the remainder of the insurance premium. In 2016, the employer contributions increased by $7 for singles, $14 for Employee + 1, and $18 for Employee + 2 coverage. The City contracts with Ameritas for its dental insurance provider, and with Principal for Life and Disability (AD&D) Insurance. Dental insurance premiums and Life and AD&D premiums are paid 100% by the City. Employees may elect to enhance their AD&D coverage through the group plan. Currently, the City self-funds short-term disability coverage for 75% 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. Pension Plans The City of Saratoga provides a CalPERS administered cost-sharing, multiple-employer pension plan benefit plan for employees. Under the CalPERS structure, if a city has fewer than 100 employees, the city is placed into a risk pool, rather than having its own plan, in order to reduce rate volatility. Shifts in employee demographics have a bigger impact on smaller plans. As a result, Saratoga’s benefitted employees fall into a ‘Miscellaneous Employees’ pension pool. City of Saratoga Council Members have the option to join the City’s CalPERS pension plan, with three of the five 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 with their pension benefit costs paid by the County. The County recovers salary and benefit costs through the contractual service fees. Risk Pools - Newly hired city employees were provided the “2% @55 Risk Pool” (Tier 1) pension plan benefit up until May 12, 2012, after which new employees were provided the “Miscellaneous 2% @60 Risk Pool” (Tier 2) pension benefit. Subsequently, the Public Employee Pension Reform Act (PEPRA) of 2012 established new defined benefit plans to lower pension benefit costs for all future California government employees. Per State law, effective January 1, 2013, all ‘new’ miscellaneous employee members shall be placed into a “2% CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 117 @62” defined benefit plan (Tier 3). PEPRA created three “new” Public Safety member formulas (2%@57, 2.5%@57, and 2.7%@57). ‘New’ member status applies to new hires that are not current CalPERS members, or those members with a break in service of 6 months or longer. At present, the majority of City of Saratoga employees and Council Members fall into the Tier 1, 2% @55 risk pool plan. As of July 1st, 2017, the plan breakdown is: forty in Tier 1, eleven in Tier 2, and nine in Tier 3. This ratio changes with turnover and retirements, although Tier 1 employees will only decrease as time goes on. Pension benefit costs - The City’s payment of CalPERS Contribution Rates is comprised of employee and employer contributions. The Employee Contribution Rates under the 2% @55, and the 2% @60 benefit plans is constant at 7%. Under the new 2% @62 plan rate, the Employee Contribution Rates are determined each year through an actuarial valuation, with the employee responsible for approximately 50% of the cost. The following chart shows a history of recent Saratoga’s Employer Contribution Rates for the various risk pools. A couple of items of note: 1. FY 2012/13 shows two rates – the second rate line shows a decrease of approximately 2% due to the payoff of the side fund liability in mid-FY 2012/13. 2. FY 2015/16’s 2% @55 rates reflect a significant decrease from the prior year as the Unfunded Accrued Liability (UAL) funding costs are now separate from the normal pension charges. Beginning in FY 2015/16, annual UAL payments are assessed as a flat dollar amount rather than a percentage of payroll. Actuarial Changes - Employer rates are based on CalPERS’ principle assumptions, including but not limited to an Investment Rate of Return and an Annual Payroll Growth Rate. Various agency-based factors such as number and age of employees, increases and decreases in emplo yee FTEs and employee wages, and impacts from other agencies in the benefit plan pool are all contributing factors in the calculation. CalPERS actuarial assumption were established based on the belief that the value of its stock, bonds and other holdings would generate income over the employees lifetime to fund the majority of the pension costs. In 2003, CalPERS set the income growth rate at 7.75% a year on average. In fact, CalPERS annualized Investment Rate of Return (IRR) had averaged slightly higher than the 7.75% target – until the economic Fiscal Year 2% @55 Employer Contribution Rate 2% @60 Employer Contribution Rate 2% @62 Employer Contribution Rate FY 2010/11 11.863% FY 2011/12 12.856% 8.438% FY 2012/13 13.031% 8.552% FY 2012/13 - Revised 11.040% 8.552% 6.70% FY 2013/14 11.603% 8.768% 6.70% FY 2014/15 12.330% 8.715% 6.70% FY 2015/16 9.353% 7.510% 6.730% FY 2016/17 9.558% 7.809% 6.93% FY 2017/18 9.599% 7.850% 6.908% FY 2018/19 (projected) 9.6% 7.9% 6.9% CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 118 downturn began in 2008. Since then, with returns heavily diminished in many of the following fiscal years, CalPERS staff has repeatedly requested the Investment Rate of Return be adjusted downward. In 2012, the CalPERS Board agreed to a reduction in the IRR to 7.5%, to be phased in over two years. This IRR change impacted Miscellaneous Employer Contribution Rates by increases of around 1%, and up to 2%, while most Public Safety Plan’s Employer Contribution Rate increased by 3%. In the first year (FY 2013/14) Saratoga’s rates increased by only .6%, and in the second year, by .73%. Saratoga’s increases were minimal mostly due to being in a lower benefit plan than other agencies. Rate Smoothing Policies – The severity of the economic downturn that began in 2008 severely impacted the CalPERS portfolio’s actuarial value of assets, which prompted actuarial staff to adjust their existing methodology. Initially, the result was a widening of the corridor for several years, with a smoothing policy that spread investment returns over a rolling 15 year period, and experience gains and losses paid over a rolling 30 year period. This methodology led to stabilized rates for the first few years, but CalPERS quickly came to understand this policy would understate risk as there was slow progress towards 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. CalPERS developed a policy that pays for all gains and losses over a fixed 30 year period, with the increases or decreases in the direct rate spread over a 5 year period – meaning rates will ramp up for five years, plateau for twenty years, and ramp 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% of payroll in a single year. Together with this actuarial modification, CalPERS also separated pension costs for current year liabilities from costs related to actuarial assumption changes for prior year liabilities, known as UAL. This change was to provide better rate stability, and payment option for Cities. With the severe devaluing of CalPERS investments during the recession , CalPERS staff continued to state the Internal Rate of Return (IRR) decrease was insufficient and asked for a further decrease to 7.25% In FY 2015/16, CalPERS agreed to lower the rate over a long term plan that allows very small decreases only in positive investment years. In FY 2016/17, the CalPERS Board determined that this decrease was not sufficient to remain sustainable, and directed the rate be lowered to 7% over a three year period. Understanding the impact of this change would be financially substantial, CalPERS phased the decrease in over five years, meaning the total IRR decrease implementation will take seven years, so agencies could adjust to the higher costs over a longer time frame. The downside to this phase-in policy is that the ramp-up period incurs negative amortization, thereby increasing costs over the long-term. Additionally, CalPERS determined the IRR rate would continue to be decreased down to 6.5% after the phase-in period, but with a slower, less impactful method. In the future, small, incremental decreases will be made only in positive investment years, in order to reduce the financial impacts. 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, and wage increase factors changed considerably, thereby impacting benefit costs. CalPERS amortizes the Assumption Changes over 20 years rather than 30 years used for investment impacts. 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. Other enhanced plans, such as (2.5@55, 2.7@55 for miscellaneous, 3%@50 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 119 or 55 for Public Safety) were built based on short-term assumptions that used estimated – not realized factors. These higher benefit plans ultimately proved to be fiscally unsustainable, and are expected to 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. Summary - 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 has taken measures by paying down the Unfunded Liability and standardizing the annual UAL payment at an accelerated payment level, the City’s UAL will be paid off sooner, and the susceptibility to rate volatility will be decreased. This proactive and 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. PEMHCA 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 contribution is $128 for calendar year 2017, and $133 for calendar year 2018. The City includes this amount in the budget as an ongoing retiree cost, which currently amounts to around $25,000 per year for an estimated 16 participating retirees. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 120 TOTAL FUNDED POSITIONS BY DEPARTMENT 2013/14 2014/15 2015/16 2016/17 2017/18 Full Time Equivalents (FTE)Funded Funded Funded Funded Funded City Manager's Department City Manager 1.00 1.00 1.00 1.00 1.00 Deputy City Manager - - - - 1.00 Exec Asst to CM / Deputy City Clerk 1.00 1.00 1.00 1.00 0.90 City Clerk 1.00 1.00 1.00 1.00 1.00 Administrative Analyst I/II 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 4.00 4.00 4.00 4.00 4.90 Administrative Services Department Administrative Services Director 1.00 1.00 1.00 1.00 1.00 Finance Manager 1.00 1.00 1.00 1.00 1.00 Accountant I/II 0.90 0.90 0.90 0.90 0.90 Accounting Technician/Lead 3.00 3.00 3.00 3.00 3.00 Human Resources Manager 1.00 1.00 1.00 1.00 1.00 Human Resources Technician 0.75 0.75 0.75 0.75 0.75 Information Technology Administrator 1.00 1.00 1.00 1.00 1.00 Information Technology Technician 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 9.65 9.65 9.65 9.65 9.65 Community Development Department Community Development Director 1.00 1.00 1.00 1.00 1.00 Senior Planner 1.00 1.00 1.00 2.00 2.00 Planner I/II 2.00 2.00 2.00 1.00 1.00 Plan Check Engineer 1.00 1.00 1.00 1.00 1.00 Senior Arborist 1.00 1.00 1.00 1.00 1.00 Sr. Building Inspector/Plan Checker 1.00 1.00 1.00 1.00 - Associate Engineer - - - - 0.50 Building Inspector 2.00 2.00 2.00 2.00 2.00 Permit Technician 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Specialist III 1.00 1.00 1.00 1.00 1.00 Code Compliance Officer - - - 1.00 1.00 TOTAL FTE's 12.00 12.00 12.00 13.00 12.50 Public Works Department Public Works Director 1.00 1.00 1.00 1.00 1.00 Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00 Assistant/Associate Engineer 1.00 1.00 1.00 1.00 1.50 Administrative Analyst I/II 1.00 0.90 0.90 0.90 0.90 Administrative Technician Office Specialist II/III 1.75 1.75 1.00 1.00 1.00 Parks Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Lead 1.00 1.00 2.00 2.00 2.00 Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III 6.00 6.00 5.00 5.00 5.00 Street Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Street Maintenance Lead 2.00 2.00 2.00 2.00 2.00 Street Maintenance Worker I/II/III 4.00 4.00 4.00 4.00 4.00 TOTAL FTE's 20.75 20.65 19.90 19.90 20.40 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 121 TOTAL FUNDED POSITIONS BY DEPARTMENT FUNDED HOURLY STAFFING BY DEPARTMENT 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded Recreation & Facilities Department Recreation & Facilities Director 1.00 1.00 1.00 1.00 1.00 Recreation Supervisor 1.00 1.00 0.90 1.90 1.00 Recreation Coordinator - Lead 2.00 2.00 - - 0.70 Recreation Coordinators 2.00 2.00 1.85 0.85 2.00 Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist II/III 1.00 1.00 1.00 1.00 - Facility Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Facility Maintenance Lead 1.00 1.00 1.00 1.00 1.00 Facility Maintenance Worker I/II/III 2.00 2.00 1.00 1.00 1.00 TOTAL FTE's 9.60 9.60 8.35 8.35 8.30 TOTAL STAFF FTEs 56.00 55.90 54.65 55.65 56.50 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded City Manager's Department CMO Intern 320 320 - - 320 Executive Assistant (backfill)120 136 750 960 96 Temporary Pool Hours 940 - - - - Administrative Services Department Senior Accountant 200 - - - - HR Intern 320 320 - - - Graphic Design Assistant - - 150 - - Community Development Department Office Specialist III 800 800 940 - - Planning Intern - 320 480 320 - Project Manager - - - 1,335 960 GIS/Graphics Technician 499 Public Works Department Engineering Inspectors 2,760 2,760 2,760 2,760 1,840 Maintenance Worker - - 999 999 999 GIS/Graphics Technician - - - 320 500 Executive Assistant - - - - 864 Recreation & Facilities Department Facility Attendents 1,500 1,750 1,900 1,900 2,949 Recreation Leaders 3,335 3,300 2,178 2,004 2,178 Graphic Design Assistant - - 850 - - Student Intern - - 480 - - Asst Recreation Coordinator - - - 1,000 280 TOTAL ANNUAL HOURS 10,295 9,706 11,487 11,598 11,485 Temporary Hours converted to FTEs 4.95 4.67 5.52 5.58 5.52 TOTAL FTE's 60.95 60.57 60.17 61.23 62.02 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 122 STAFFING BY DEPARTMENT FIVE YEAR HISTORY City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL TIME EQUIVALENTS (FTE'S)Funded Funded Funded Funded Funded City Manager's Department 4.00 4.00 4.00 4.00 4.90 Administrative Services 9.65 9.65 9.65 9.65 9.65 Community Development 12.00 12.00 12.00 13.00 12.50 Public Works Department 20.75 20.65 20.65 20.65 21.15 Recreation & Facilities Department 9.60 9.60 8.35 8.35 8.30 TOTAL STAFF BY DEPARTMENT 56.00 55.90 54.65 55.65 56.50 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 123 STAFFING BY FUND FIVE YEAR HISTORY City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL TIME EQUIVALENTS (FTE'S)Funded Funded Funded Funded Funded General Fund City Manager's Department 4.00 4.00 4.00 4.00 4.90 Administrative Services 7.35 7.35 7.35 7.35 7.35 Community Development 12.00 12.00 12.00 13.00 12.50 Public Works 20.05 19.95 19.95 19.95 20.45 Recreation & Facilities Dept 5.65 5.65 5.20 5.20 5.30 Total General Fund FTEs 49.05 48.95 48.50 49.50 50.50 Internal Service Funds City Manager's Department - - - - - Administrative Services 2.30 2.30 2.30 2.30 2.30 Public Works 0.70 0.70 0.70 0.70 0.70 Recreation Department 3.95 3.95 3.15 3.15 3.00 Total Internal Service Funds 6.95 6.95 6.15 6.15 6.00 TOTAL FTE's 56.00 55.90 54.65 55.65 56.50 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 124 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 125 MAJOR REVENUE INFORMATION CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 126 MAJOR REVENUE SOURCES FIVE YEAR HISTORY – ONE YEAR PROJECTION The City of Saratoga receives revenues from various funding sources that flow into operations and infrastructure improvements. Primary revenues include property tax, sales tax, building permits, business licenses, and service fees. Other revenue types include facility rental fees, revenues from governmental agencies (known as intergovernmental revenues), special district assessment payments and assorted operating and capital grants. The City’s revenues are used for the administration of the city, for community services, and for infrastructure maintenance and improvement. The amount of revenues therefore, determines the level and types of operational services that a government can provide to their community. One analytical tool used in the revenue projection process is the City’s five year financial forecast for the General Fund. This forecast is developed early in the budget process by analyzing key factors such as prior year receipts, trending, and historical correlation, as well as broader economic trends and localeconomic data for housing prices, market turnover, unemployment reports, and related local, state, and national reports and legislation. Emerging local trends are identified by analyzing the City’s financial data in conjunction with information received from the State, County, various agencies, municipal finance groups, and from staff’s practical expertise and judgment. Together, these factors help to project revenues for the upcoming fiscal year, and are adjusted throughout the process as new information becomes available. For FY 2017/18, the City of Saratoga’s Operating Budget revenues are projected to total $2 5.2 million, of which the majority ($20.8 million) of this revenue resides in the General Fund. Capital Budget Revenues and Transfers-In total $10.9 million, bringing total budgeted revenues to $36.1 million for the fiscal year. Outside of the General Fund, Operating Budget revenues consist primarily of Internal Service Funds service charges (approximately $2.9 million). As this revenue is derived from internal billings to the City’s organization and established for cost recovery accounting purposes and therefore not true revenue, these chargebacks are not included as a revenue category in the following analysis. Other non-General Fund Operating Budget revenues include General Obligation Bond Debt Service assessments and Special Revenue property tax assessments from Landscape & Lighting Districts. Capital Budget revenue includes all outstanding grant awards that are formally obligated to Saratoga for capital projects, and which may or may not be received in the current budget year but are included to validate budgeted project expenditures. The net effect of this project budgeting method is to overstate both revenue and expenditure budget as many capital projects represent multi-year appropriations. Major Revenues are categorized by fund type in the following discussion: General Fund Operating Revenues, Non-General Fund Operating Revenues, and Capital Project Revenues. GENERAL FUND MAJOR REVENUES Each of the following Major Revenue sources include a description of the revenue, the underlying assumptions that the revenue estimates are based on, and current revenue trends. The accompanying charts illustrate five years of receipts in the darker color bars starting on the left side, with the projected budget year amount in a speckled bar on the far right. PROPERTY TAX Property tax is imposed on real property (land and permanently attached improvements such as buildings) and tangible personal property located within the City. The 1% Ad Valorem tax assessed on Saratoga property owners is allocated between the State, County, and local agencies that provide services based on residency. Saratoga, a minimum services city, had historically received less property tax than it was entitled to, due to a decision made by Santa Clara County to retain a portion of Saratoga’s (as well as Monte Sereno, Cupertino, and Los Altos Hill’s) Property Tax revenues for their own use. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 127 Tax Equity Allocation - When Proposition 13 passed in 1978, property taxes were frozen at their current rate throughout the State. This action created significant problems for cities with low property tax rates. Subsequently, Section 98 of the California Revenue and Taxation Code was passed, establishing a minimum Tax Equity Allocation (TEA) of 7% of the 1.0% Ad Valorem tax as a condition for Counties to continue receiving trial court funding for their cities with low tax rates. Because Santa Clara County would receive less revenue from trial court funding than the additional property tax to be distributed to its four low tax cities (Saratoga, Cupertino, Los Altos Hills, and Monte Sereno), the County chose to retain the low tax rate and forgo the trial court funding. Subsequent State legislation was enacted that limited the four low property tax cities in Santa Clara County to just 55% of the 7% minimum allocation. In 2006, Assembly Bill 117 repealed the 55% limit legislation, however; in order for the legislation to have no effect on the State budget and therefore bypass the Appropriation Committee, the four cities were required to continue to remit the County’s ERAF rate on these funds. Unfortunately, the ERAF rate the County remits to the State is much higher at 47.7%, than the four city’s ERAF rates, which range from 7.53% to 17.37 %. While AB 117 increased their share of the TEA payments, the higher ERAF rate meant the four cities continued to receive less and be treated differently than the State’s other TEA cities. Efforts to pass a new Revenue and Taxation code that would assess the four cities at their own ERAF rates continued. In September 2015, the cities were finally successful. A FY 2015/16 budget trailer bill included a 5 year phase- in period that shifts the ERAF assessment from the County’s 47.7% rate to each of the city’s own ERAF rate at a pace of 20% per year so that by year 5, the cities would receive their full share of the allocation. For Saratoga, the decrease in ERAF rates to 17.14% equated to a total of approximately $650,000 in FY 2015/16, meaning revenue would increase by about $130,000 (plus assessment role growth) through FY 2019/20. Current Assumptions – During the economic recession, property values decreased. Valuation appeals streamed in, and the County Assessor’s Office reassessed properties and lowered assessed valuations as appropriate. As the valuation backlog was addressed, lower property values were established; this resulted in decreased property tax revenues in FY 2010/11. An increase in foreclosures and a decrease in property sales led to further decreases in property values. In turn, property transfer tax and supplemental tax revenues dropped. The County was still lowering property values in FY 2011/12 when the housing market began to pick up. With low housing prices, sales began to pick up, meaning transfer and supplemental tax revenue increased, which in turn helped to stabilize total revenues. As shown in the chart, revenues have continued this upward trend at a significant pace. FY 2014/15 was 9.56% higher than the prior year, FY 2015/16 was 8.28% higher, and FY 2016/17 was 6.22% higher. Increases are expected to taper as prices continue to climb and the market slows, therefore FY 2017/18 budgeted revenues are cautiously low, just slightly more than the prior year’s revenue. Overall, Saratoga was fortunate during the economic downturn as resident’s property values fared better than many other cities throughout the bay area due to its excellent schools, beautiful neighborhoods, high- value homes, and stable residency. In addition, Saratoga saw a minimum number of foreclosures as most residents have above average incomes and were able to withstand the financial contraction. SALES AND USE TAX Sales Tax is imposed on retailers selling tangible personal property in California. Use Tax is imposed on the user of a product purchased out of state and delivered for use in California. The State receives 8.25 cents and the City receives 1 cent of the 9.0 cents paid on every dollar of taxable sales in the City. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 128 Saratoga is a largely residential community with limited retail sources, therefore Sales and Use Tax is small in comparison to other cities its size. The City’s Sales Tax revenue is derived primarily from stable sources, such as restaurants, grocery/drug stores, and gas stations, and typically averages around $1.1 million per year. FY 2013/14 revenues were abnormally low due to both a negative true up of prior year receipts and a late payment booked into the following fiscal year. FY 2014/15 therefore was higher than normal dues to the late receipts, and a slight increase in Sales Tax receipts. FY 2015/16 reflects both continued Sales Tax growth and a slight bump from the Triple Flip closeout, and FY 2016/17 finally reflects what we expect to be a typical sales tax year. As the tax base mix is primarily restaurants and services, with minimal retail, the City does not anticipate substantial growth in this revenue stream. FY 2017/18 Budgeted Sales Tax is a conservative projection slightly under prior year revenues. FRANCHISE FEES Franchise Fees are levied by the City on a variety of utilities. State agencies establish the franchise fee rates for utilities they regulate (i.e. 2% of gross revenues for gas and electricity), while other utility franchise fee rates are set by State law, such as a rate per linear feet of pipeline for water utilities. The State’s cable service contract was adopted by the City, which set the contract at 5% of gross revenue, with an additional 1% set aside to fund capital expenditures for Public Education & Government (PEG) public television purposes. The City passes a portion of the PEG dedicated funding through to the Saratoga Community Access Television Foundation that provides services to both West Valley College and the City. The foundation has used the funds to update their studio equipment at both the college and the city. With the exception of Solid Waste, franchise fee revenue is fairly stable from year to year, and is expected to grow in line with cost of living increases. Solid waste revenues are the exception. Rates have increased more rapidly over the years due to the quickly rising cost of environmental programs. The West Valley Solid Waste Joint Powers Authority, representing the cities of Saratoga, Campbell, Los Gatos, and Monte Sereno, provides for general fund franchise fees as well as dedicated funding revenues to fund the city’s various state-mandated environmental programs, including the Household Hazardous Waste program, Santa Clara Valley/West Valley Non-Point Source program, street cleaning, storm drain cleaning, and environmental education programs. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 129 TRANSIENT OCCUPANCY TAX Transient Occupancy Tax (TOT) is levied on short term lodging rental guests who are occupying a rented room for 30 days or less. The City’s TOT rate of 10% of the room rental rate is a tax charged to the occupant, not the hotel, motel, or inn. Rental operators are required to collect this tax and submit it to the City on a monthly or quarterly basis. The City currently has two inns from which TOT revenue is collected. TOT revenue acts as a warning bell as this revenue is closely aligned with and very reactive to the state of the economy. This was clearly seen in the economic contraction that began in late 2008. Revenue dropped quickly and severely, with a 30% downturn in revenue. The economic improvement was reflected just as quickly as increases as the economy first started to pick up in late 2011, and by the end of FY 2011/12, revenues had climbed back to pre-downturn era levels. Subsequent years have since shown a steady climb in line with the booming economy. FY 2017/18 is budgeted below the prior year’s revenue as a conservative measure. While the addition of the Levi Stadium in Santa Clara with its mega-size entertainment venue, and the close proximity to the very popular Mountain Winery venue has helped to increase TOT revenue, future revenue may be impacted quickly if the economy begins to fade, as entertainment and hotel stays are non-essential expenditures, hence a more conservative estimate is utilized for this revenue stream. OTHER TAXES Other Taxes are comprised of three tax revenues: Business License Tax; Supplemental Business License Tax (based on building permit valuations); and a Construction Tax of $1 dollar per square foot of new floor area as determined in the building permit process. Business conducted in the City of Saratoga is subject to a municipal Business License Tax, unless excluded by code. The tax is not regulatory; however a business must be in compliance with City regulations in order to be issued a license to operate in the City. The Supplemental Business License Tax is a development tax based on building permit value, thereby more fairly taxing a contractor’s use of City’s infrastructure based on the level of construction activity. The Construction Tax is based on additional living space, creating a tax nexus on the potential for increased residents. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 130 In FY 2008/09, with the perception that many businesses were operating in Saratoga without a business license, the City contracted with a business license audit firm to bring businesses into compliance. As a result, additional revenue was generated and most firms are now registered and pay their business license tax on an annual basis, leading to a fairly even revenue stream. Supplemental and Construction Tax are both based on building permit activity. While there was initial growth in the first few years after the end of the economic downturn, building activity has slowed in Saratoga, and revenues have declined over the last fiscal year. With the building activity outlook appearing to be stagnant, Other Taxes revenues are budgeted slightly lower for FY 2017/18. DEVELOPMENT FEES Development Fees are charged for services that primarily benefit the requestor, either as the homeowner or a builder. Development Fee services include planning reviews, planning applications, building plan reviews, engineering reviews, building inspections, and all permits, fees and costs associated with performing these services. These services are regulatory to ensure compliance with all applicable laws, and to ensure health and safety of the community. Although the entire community benefits from an enforced regulatory program, the service requestor initiates and benefits greatest from the development changes and should pay most, if not all of the costs. The City reviews development and other user fees each year to determine if the established fees are maintaining cost recovery objectives. In the recession, development fee revenue dropped quickly and severely, going from $2.35 million in FY 2007/08 to $1.64 million in FY 2009/10. The return to ‘normal’ levels took more than four years, but continued through FY 2015/16. FY 2016/17 brought a slightly lower revenue amount as the number of projects slowed. FY 2017/18 is budgeted at this lower revenue amount as a conservative projection. This base level of construction activity is expected to continue into the near future as the housing market remains strong. RECREATION FEES City Council policy states Recreation Fees are subject to a 65% cost recovery objective as services rendered are primarily for the benefit of the requestor, but the classes, activities, and programs benefit the community as a whole. Recreation Fees come from sport camps, exercise classes, skill development, and various entertainment activities for all age groups and are available to both the Saratoga Community and non-residents. The Recreation Department also offers assorted excursion trips throughout the year, and children’s camps during the summer and winter holidays. Recreation services are primarily on a fee share basis with instructors, who either pay a fee to hold their classes on the premises, or are paid a portion of the fees received for the classes. Residents receive a discount fee for most class or camp categories. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 131 Recreation Fee revenue is volatile, reacting to economic conditions, trends, and external competition. Over the five year revenue history revenues have fluctuated, sometimes due to structural transitions of summer camps, other times due to demand. In FY 2012/13, revenues increased with the partial return of the camps to in-house staff. FY 2013/14 revenues increased further as more summer camp programs were brought back. However, the explosion of summer camp competition has taken a toll on revenues over the last few years and revenues have fallen. FY 2017/18 revenue is expected to maintain the base level seen in the prior fiscal year. RENTAL INCOME The City maintains numerous indoor and outdoor facilities for use by the public. This includes the Community Center, the Theater Building, the Saratoga-Prospect Center buildings, the Historical Park buildings, the many parks and sport fields in Saratoga, as well as cell tower leases for wireless communication satellite antennas on City owned property. Facility staff oversees the upkeep of the various buildings and manages the facility rentals and hourly park rentals. While the Parks Division oversees the maintenance of parks and sport fields, Facilities manage the sport user group contracts and team use. Unlike other revenue streams, Rental Income increased during the economic downturn, in part due to the low cost of the facilities, but also from the addition of the Saratoga Prospect Center facilities and new sport user fields at Prospect High School and West Valley College. Rental revenue has however, been unsteady through the years. FY 2012/13 saw a drop in revenue from the elimination of the West Valley Sport Field rentals. There were further decreases in FY 2013/14 with the loss of a cell tower lease. The consolidation of communication companies, and changes in technology have continued, with further reduced rental income beginning in FY 2016/17. And during the summer and fall months of FY 2016/17 and 2017/18, the Prospect High School fields closed for renovation, thereby affecting rental revenue in both fiscal years. FY 2017/18 revenues are projected slightly lower than prior year receipts due to the continued field closure and potential for additional losses in cell tower lease revenue. INTEREST INCOME The City earns interest on idle funds – meaning funds not immediately required for disbursement, such as funds accumulated for future use in operations and capital projects, and on funds held as reserves for CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 132 specific purposes. Saratoga’s investment policy establishes a wide array of authorized and suitable investments in alignment with State government code; however at the present time, the City’s practice is to restrict investments to the Local Agency Investment Fund (LAIF), a conservative and prudently managed investment vehicle. In the past, interest revenue had been a significant income source; earnings approached $700,000 per year. However, as the economy slipped into the Great Recession, interest rates dropped to below 1% at an astonishingly rapid pace, and idle cash was reduced due to lower revenues. The City’s interest revenue fell quickly, hitting bottom in FY 2012/13. With Since then, interest rates have very slowly climbed back, and are expected to continue increasing into the near future. Average cash balance and interest rates are the key factors in projecting budgeted interest income. While revenues have improved and cash balances increased in the last few years, the interest rates are still very low. It was not until late June 2017 that LAIF finally saw the up side of 1.0%. Thereby, the amount of increase is not large, but the upward trend is progressing favorably. Budgeted revenues reflect the expected continued growth. NON-GENERAL FUND OPERATING REVENUES G.O. BOND DEBT SERVICE ASSESSMENTS In March 2000, the citizens of Saratoga approved the issuance of a General Obligation Bond to pay for improvements to the City’s library building. With this bond approval, property owners agreed to a thirty year property tax assessment to fund debt service payments for the bond issuance. A tax levy is assessed as a percentage of property tax valuation, in the same manner as schools or special district bonds. In prior years, the City’s tax levy was calculated to equal the fiscal year’s debt service amount, however rapidly rising property values have resulted in assessment receipts surpassing expectations each year. Since FY 2007/08, the levy is calculated to bring in less than the required payment. Still, assessments grow faster than expected, causing the fund balance to decline at a very slow pace. In early FY 2011/12, the G.O. Bond was refunded to take advantage of lower interest rates for the remaining twenty years of the bond term. This resulted in even lower annual payments for the remaining years. The annual levy will continue to decrease further based on both lower payments and the continued goal to reduce the fund balance to an amount close to the base principal and interest amount. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 133 LANDSCAPE & LIGHTING ASSESSMENTS An Assessment District represents a defined group of properties which, by majority vote of the property owners, authorized the assessment of a levy on each parcel to pay for public improvements or services provided within a predetermined agreement for the benefit of the property owners. The City currently has 29 Assessment Districts, and continues to establish additional districts at property owner’s requests through a noticed community voting process. Some of the districts provide for street lighting services, others for landscaping services, and a few for both. Seven of the oldest districts are funded by property tax assessments as they were in effect prior to Proposition 13. The remainder of the districts, as well as some districts with property tax assessments, agreed to assess annual levies (known as benefit assessments) onto their tax bills to pay for city managed services. In FY 2013/14, a new type of assessment district was created to meet storm water runoff regulations. This new type of district provides swale maintenance services for new hillside housing development projects per environmental regulations. The number of storm water runoff districts are expected to increase due to ongoing hillside property development. Assessment District revenue and expenses are generally consistent year-to-year, requiring only minor adjustments for increasing utility and service costs. On occasion, improvement projects or repairs occur which require the district to have sufficient funds on hand to pay for these major expenses. The City strives to assess the parcels at a slightly higher level than expenditures for this purpose. In FY 2014/15, the Saratoga City Council created a 50/50 Grant Match Program to entice neighborhoods to form landscape assessment districts in the effort to further beautify the city. This resulted in three new L&L assessment districts so far, with another expected in the coming fiscal year. Together with the storm water runoff districts, the L&L Assessment graph shows consistent revenue growth. The FY 2017/18 budgeted revenue is held steady with the prior year, but will likely exceed budget due to the added districts. CAPITAL PROJECT REVENUES MOTOR VEHICLE FUEL TAX (GAS TAX) REVENUES The State of California imposes excise taxes on transportations fuels, which in turn are allocated to cities and counties under various complex formulas. Gas Tax revenue is required to be recorded in its own account, and an annual “Streets Report” must be filed with the State each year to document how the funds were expended. State law requires that allocated motor vehicle fuel tax funds must be expended for the construction, improvements, and maintenance of public streets; this includes engineering and administrative costs incurred for the foregoing purposes. Gas Tax Revenues are derived from tax on fuel purchased within city limits, as determined by the State’s allocation formulas. For Saratoga, the key factors in projecting these revenues are historical revenues and the cost of gas – as well as the State’s projections for the year. Typically, as ga s prices rise, gas usage tends to go down. However, with the influx of electric and hybrid vehicles and higher mileage in regular vehicles, gas usage has decreased even under low gas prices. With gas prices expected to remain low, and electric and hybrid vehicle usage to increase, gas tax revenue is expected to decrease over the long term. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 134 In FY 2010/11, Proposition 53 created a permanent restructuring of gasoline tax allocations to include separate State transportation funding known as “Prop 42 Traffic Congestion Relief (TCR)” into the Gas Tax revenue structure. FY 2012/13 revenues reflect a State take back for an error in the FY 2011/12 and 2012/13 allocations. FY 2013/14 returned to normal levels, however a shift in the allocation formula reduced revenues in FY 2014/15. Since FY 2015/16, significant gas price declines have reduced gas tax revenues sharply. Gas Tax revenue declines affecting both State and local agency’s ability to fund street maintenance into the future, together with the economic downturn affecting street maintenance funding in previous years, road conditions had and would continue to decline throughout the State. A great deal of concern and discussion was centered around establishing an enhanced or dedicated funding source for ongoing road maintenance. In 2017, the legislature passed SB 1 to both increase gas taxes and to increase/add vehicle registration fees. Known as the Road Maintenance and Rehabilitation Program of 2017, the bill is expected to bring Saratoga a prorated amount of approximately $170,000 for the 2017/18 fiscal year, and then increase up to just over $500,000 in the following years. CAPITAL GRANT REVENUES Grants are applied for and awarded from various Federal, State, and Loca l agencies, and occasionally, from a private donor. Grant awards are restricted for specific purposes and often require the City provide a percentage match to the grant funds. The City’s capital grants are primarily obtained for street maintenance and improvements, bridge repairs, traffic safety improvements, and park improvements. In the adjacent chart, the darker bars on the left reflect actual grant revenues received during each fiscal year, while the right side speckled bar represents budgeted revenues. As mentioned in the Capital Program budget, budgeted capital project revenues reflect all known and outstanding grant award appropriations at the time of budget adoption to validate appropriations for capital expenditures. The net effect of this project tracking method is to overstate both revenues and expenditures in the Capital Budget as many capital projects are in reality, multi-year appropriations. Hence, budget far exceeds the City’s actual expectations. The City has been awarded a number of significant grants in the last few years. The most significant, a $4.8 million OBAG grant for roadway safety improvements along Prospect and Saratoga Avenues, will commence in FY 2017/18. Quito Road Bridge Replacement, Highway 9 Phase 4 project, and other grant funded projects are in the easement and engineering stages, but are expected to be constructed over the next several years. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 135 LONG RANGE FINANCIAL FORECAST CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 136 CITY OF SARATOGA GENERAL FUND FIVE YEAR FORECAST FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Actuals Actuals Actuals Budget Forecast Forecast Forecast Forecast Forecast TOTAL SOURCES Property Tax 10,436,622 11,301,176 12,110,800 12,803,500 13,419,300 14,059,700 14,595,200 14,595,200 15,006,800 Sales Tax 1,224,427 1,189,398 1,150,000 1,201,900 1,213,900 1,226,000 1,238,300 1,238,300 1,250,700 Franchise Tax 2,234,068 2,235,514 2,349,429 2,385,751 2,422,700 2,460,400 2,498,800 2,498,800 2,537,800 Other Taxes 866,272 897,761 820,000 841,350 852,900 864,500 876,400 876,400 888,500 Total Tax Revenues 14,761,388 15,623,849 16,430,229 17,232,501 17,908,800 18,610,600 19,208,700 19,208,700 19,683,800 Fees & Services 3,198,848 3,624,783 3,089,615 3,345,500 3,390,500 3,481,000 3,510,900 3,510,900 3,595,200 Other Operating Revenues 16,320,698 17,157,813 1,257,929 1,415,415 1,439,180 1,463,420 1,488,360 1,488,360 1,514,000 Total Operational Revenues 19,519,546 20,782,596 4,347,544 4,760,915 4,829,680 4,944,420 4,999,260 4,999,260 5,109,200 Transfers In - 267,918 - - - - - - - TOTAL REVENUES 19,519,546 21,050,514 20,777,773 21,993,416 22,738,480 23,555,020 24,207,960 24,207,960 24,793,000 Plus Use of FB Reserves 3,732,317 1,681,370 1,568,085 50,000 50,000 50,000 50,000 50,000 63,182 TOTAL SOURCES 23,251,863 22,731,884 22,345,858 22,043,416 22,788,480 23,605,020 24,257,960 24,257,960 24,856,182 TOTAL USES Salary & Benefits 6,484,653 6,814,802 7,833,226 7,935,890 8,239,192 8,562,242 8,897,537 9,647,537 9,242,403 UAL Payments 3,294,619 500,000 750,000 750,000 750,000 750,000 750,000 - 750,000 Operating Expenditures 7,777,256 8,428,407 9,216,374 9,670,395 10,150,874 10,791,191 11,344,432 11,344,432 12,086,057 Cost Allocation Charges 2,325,823 2,455,758 2,626,497 2,707,669 2,789,210 2,874,340 2,963,230 2,963,230 3,056,070 Total Operational Costs 19,882,351 18,198,967 20,426,097 21,063,953 21,929,276 22,977,772 23,955,199 23,955,199 25,134,530 Transfers Out 1,666,098 2,017,656 1,410,648 - - - - - - TOTAL EXPENDITURES 21,548,449 20,216,623 21,836,745 21,063,953 21,929,276 22,977,772 23,955,199 23,955,199 25,134,530 NET OPERATIONS 1,703,414 2,515,261 509,113 979,463 859,204 627,248 302,761 302,761 (278,348) FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Actuals Actuals Actuals Budget Forecast Forecast Forecast Forecast Forecast GENERAL FUND BALANCE RESERVES (at Year End) Other Unassigned 1,779,489 2,468,474 4,519,391 4,868,595 4,995,843 4,798,603 4,798,603 4,798,603 4,020,256 Operational Reserves 2,911,530 1,017,335 967,335 917,335 867,335 817,335 817,335 817,335 754,153 Economic Reserves 3,115,712 2,909,937 3,409,937 3,909,937 4,409,937 4,909,937 4,909,937 4,909,937 5,409,937 Emergency Reserves 2,000,000 3,390,000 3,490,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 TOTAL FUND BALANCE 9,806,731 9,785,746 12,386,663 13,195,867 13,773,115 14,025,875 14,025,875 14,025,875 13,684,346 CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 137 LONG RANGE FINANCIAL FORECAST ANALYTICS The Five Year General Fund Forecast schedule looks forward five years under static assumptions, using prior year actuals, trends, and the FY 2017/18 adopted budget as the base. The forecast does not project future operational changes as those are the prerogative of the City Council and management. Therefore, the forecast provides revenues and expenditure data based on both conservative estimates, current direction and reasonable assumptions. Operationally, funding allocation changes are made year by year to adjust to shifting information, resources, and circumstances. The objective of this forecast is to act as a bell-weather to identify anticipated impacts that should be addressed in the future. For instance, a negative net operation amount in an out-year does not reflect what will happen, but rather a warning that projected revenues is not keeping pace with projected expenditure growth, and that operational adjustments will be required. The forecast is limited to the General Fund, as this is the City’s primary operating fund. All general tax revenues and other receipts not allocated by law or contractual agreement to other funds are accounted for in the General Fund. Expenditures of this fund include most general operating expenses traditionally associated with governments such as city administration, development services, public works, and public safety. Overall, the General Fund accounts for and represents the main operational activities of the City, and is of primary importance for long-term planning. Other funds have focused, specific purposes, and are therefore not included in the forecast. Internal Service Funds are funded by charges to operational programs (primarily General Fund) for support functions, and are therefore an accounting tool. Capital Fund revenue comes from dedicated external funding and prior year General Fund net operations for administrative and infrastructure improvement projects. Special Revenue and Debt Service Funds are independent of the General Fund; revenues come from assessments or fees, which must be used for their specific purpose, and are therefore not available for general operations. As stated above, the General Fund forecast is based upon reasonable assumptions, both for revenues and expenditures. These assumptions are conservative; revenues are at the low end of projections, and expenditures are fully budgeted to achieve the stated workplan, under the principle that it is better to expect less revenue and higher expenses and wind up with net operational savings that can be utilized for new initiatives and improvement projects, than to be caught short of funds and having to adjust in mid-stream. Summaries of the five year forecast assumptions follows. GENERAL FUND REVENUE ASSUMPTIONS: Property Tax –We continue to see significant growth in Secured Property Tax, in part due to receiving additional TEA money, but also from ongoing increases in assessed valuations, from ownership changes, remodeling improvements, and new construction. This rapid pace of increasing revenues appears to have hit a peak level in FY 2015/16 with a 10.53% increase. Increases slowed to 8.69% in FY 2016/17, and is expected to be about 7.0% in FY 2017/18. While market trends show the number of housing sales in Saratoga have decreased slightly in the last year, median sale prices have continued to increase with a 7.0% year- over-year growth as of June, 2017. With mortgage rates continuing at very low levels, home buyer demand is still strong, meaning sale prices are expected to continue to rise into the near future, albeit at a slower pace as the number of high-end home buyers decline. With this strong economic climate, it is surprising that for three years in a row, the October to October California Consumer Price Index (CCPI) was lower than the statutory 2% maximum increase allowed for property valuation increases under Prop 13. The FY 2014/15 CCPI rate increase was just .0454%. For FY 2015/16, CCPI grew to 1.991%, but for FY 2016/17, the assessed valuation increase dropped to only 1.525%. As of October, 2016, the State of California’s overall combined economic condition was not as robust as the Bay Area’s climate. While October 2017 data in not yet available, current year information to date shows the rest of California has begun to increase at a faster pace, well over 2%. With this in mind, the ongoing CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 138 strength of the housing market leads to conservative revenue growth projections of 4% for the first few years, and 3% in the years after. Similarly, Property Tax In-Lieu-of-VLF is expected to increase by 5% this fiscal year. In-Lieu 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 negati ve true-up if payments were too high. As In-Lieu Property Tax Revenue growth trends typically mirrors Secured Property Tax revenue growth, (with some variation caused by the true-ups) the forecast-year projections follow the Secured Tax growth assumptions. Property Transfer Tax and Supplemental Tax receipts contribute heavily to revenue fluctuations as housing sales generate Supplemental Tax revenue from mid-year assessed valuation increases, and Transfer Tax revenues from the preparation of document fees. Increases in these revenues also indicates growth in Secured Property Tax in 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. Current year revenue is budgeted conservatively, at lower than prior year receipts. Forecasted year revenues are aligned with the conservative Property Tax growth to be consistent. Strong property tax growth also resulted in ERAF distributions these last three years. Due to the unpredictability of this revenue, ERAF is not included in the forecast year’s revenue. Sales Tax – Similar to Property Tax In-Lieu, Sales Tax revenue distributions from the State are impacted by estimated payments, true-ups, and allocation corrections, making revenue projections difficult. And because the City’s small revenue base can unexpectedly fluctuate by more than 10% year to year, the City depends upon our Sales Tax Consultants to closely monitor receipts and provide us with reasonable estimates. FY 2015/16 included a $160,000 final triple flip true-up payment, but the loss of Roku, one of the City’s largest sales tax contributors offset the increase a bit. While FY 2016/17 revenues held steady, total revenues actually reflect a slight growth pattern in regular sales tax revenue. As such, future year estimates reflect a slow but steady uptick, in line with the Sales Tax Consultant’s “most likely” ongoing revenue growth of 2% - however, prior year receipts and conservative budgeting principles prompt a slight reduction in the projections to a safer 1.0% growth trend for years beyond the current fiscal year. Transient Occupancy Tax – Saratoga’s TOT reacts quickly to economic changes. This was illustrated clearly in the economic downturn, and again with the recovery. As the recession ended, revenues grew rapidly, and after five years, are now at what we expect to be the “peaking point”. The strong economy and multiple highly attended entertainment venues such as Levi Stadium and Mountain Winery have added to the customer base. TOT revenue is expected to continue at a steady pace in FY 2017/18, but is budgeted at a slightly less successful level as a conservative measure. And, because there is no sign of a looming economic downturn or a basis on which to increase TOT revenue, forecast projections are held relatively flat, with a 1% growth rate to reflect slightly rising room costs. Business License Tax – Business License Tax revenue is comprised of 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 up to 10% year to year with normal business growth and decline, but over the long run, Business License Fee revenue is expected to hold steady. The license fee itself is not anticipated to increase, nor is business and retail space in the City, so growth CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 139 primarily comes in the form of additional home-based businesses. A conservative 1% growth rate is applied in the out-years . Relatedly, the Supplemental Business License Tax portion increased consistently since beginning the climb out of the recession in FY 2010/11, until FY 2016/17 when it dipped slightly in conjunction with a reduction in building permit activity. FY 2017/18 is budgeted 10% lower than FY 2016/17 receipts in anticipation of lower revenues, with a slight 2% growth rate into the future. Construction Tax – Represents a City enacted tax charged on additional square footage as part of a building permit fee. At this point, the strength of the economy is expected to maintain a reduced but moderate level of building activity throughout the five forecasted years. As revenue growth follows close to the same trend line as Supplemental Business License Tax, the forecast years also apply a conservative 2% growth in the out-years. Franchise Fees –Franchise Fees function as an alternative to Business License Taxes for those businesses exempt from the tax. This includes utilities (PG&E and SJ Water), solid waste, and cable providers. In FY 2012/13, the City began collecting about $160,000 in new Solid Waste Fees earmarked for the City’s environmental program costs, including the Solid Waste JPA dues and the Household Hazardous Waste program. Solid Waste revenue growth is expected to be limited; however fees continue to increase with the cost of services. In line with market trends, Solid Waste Franchise Fees are forecast to increase at a slow but steady 2% pace. On average, gas, electric, and water utility franchise fees have been fairly unpredictable from year to year. This may in part be due to citizens becoming more environmentally conscientious, and from technology improvements that reduce energy consumption. On the other hand, demands continue to increase with a growing population and the ever increasing assortment of new energy consuming gadgets. Therefore, the forecast is based on the averages of the anticipated ups and downs over the years, which equates to a positive trend line of about 1.5% per year. Cable Franchise Fees however, have shown a steady growth stream, primarily due to the escalating costs associated with the ever-higher level of services provided. Revenues reflect a conservative 2% growth trend in the out-years. Development Revenues – Planning & Building revenues increased with the strengthening economy over the last few years, but took a step back down in FY 2016/17. Accordingly, FY 2017/18 budgeted revenues were reduced to mirror the lowered expectations. With interest rates holding at near-historic lows, we continue to see housing turnover – along with new owners bringing in plans for construction activity. Taking a conservative approach, we are anticipating mild growth into the forecasted years. Each of the planning and building revenues are assessed individually, with the majority of the projections rangin g from 0% to 2% annual growth. Recreation Fees – Over the last five years, recreation revenue has fluctuated, but generally decreased as external class competition increases. FY 2016/17 saw a large decrease in class program revenue with the loss of a long-tenured and popular jazzercise instructor. To offset changes in instructors and class demands, staff continually revises class offerings, always working to keep up with new recreation interests. Forecast revenue projections reflect a reduction in current year revenue levels, with forecasted years holding at a minimal 0% to 1% changes. Rental Income – With the consolidation of cell phone service providers over the last five years, cell tower leases are dwindling and lease revenue has fallen. Forecasted years include the remaining lease providers with nominal rate increases, however future cancellations may change the projections in the out-years. Park and Facility rental rates are projected to grow slowly, with increases in the 1% to 2% range. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 140 Interest Income – With the economy showing signs of improvement, it appeared we were at the bottom of the interest rate slide in FY 2012/13. Surprisingly, interest rates continued to decrease into the first half of 2014 – down to a low of .22 of 1%. Since then, interest rates have begun climbed up at a painfully slow pace. LAIF finally surpassed 1% at the end of FY 2016/17, and continues to increase very slowly. Reports indicate the Federal Reserve intends to maintain this very slow pace to offset the potential for a slide back into an economic recession. With this understanding, forecasted interest finally reflects some minimal growth in the near term and future. GENERAL FUND EXPENDITURE ASSUMPTIONS Salary – An increase in labor costs in FY 2017/18 reflect both the maximum cost-of-living increase under the labor contract (2.5%), and the addition of a Deputy City Manager position. The added expense was offset in part by a reduction in the Executive Assistant to the City Manager from full-time to .90 FTE. Additional cost offsets came from various staff turnover in the last year as prior city staff at maximum pay levels were replaced by lower pay level new staff members. Using a conservative approach, forecasted salary & benefit expenditures reflect maximum MOU pay step increases for current staff, and a zero vacancy factor. Benefits – In 2014, CalPERS separated the “N ormal 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 current payroll, and represents the current cost to provide the CalPERS pension benefit. For the UAL, agencies are paying their allocated share of prior year liabilities, that accrued as a result of CalPERS investment losses and assumption change. Graduated payments are scheduled over a thirty year payment plan. Saratoga’s City Council established a policy to make annual UAL payments at higher than the required contribution level in order to reduce the outstanding liability quicker, reduce the overall cost, and stabilize the annual payment amount. For FY 2015/16 and 2016/17, the City contributed $500,000 per year for the UAL payment. Subsequently, in FY 2016/17, CalPERS modified their actuarial assumptions, and reduced the discount rate from 7.5% to 7.375%. This change resulted in a significantly higher outstanding unfunded liability –the City’s remaining Tier I UAL grew from $4.7 million at July 2016 to $8.4 million in July 2017. This change also meant future required contribution amounts would increase. For the FY 2017/18 budget, the Council allocated $750,000 for the annual Tier I payment amount, under the assumption that this higher payment level would be sufficient for a couple of years. The further lowering of the CalPERS discount rate will require the council to revisit the payment amount matter, but at the current time the annual payment is set in the forecast as $750,000. Under the City’s MOU agreements that have employees sharing future medical insurance premium increases, health costs will increase at a slower pace. Dental premium increases are very low, and disability and life insurance benefit costs are almost flat, with nominal increases occurring only every few years. Together, reduced premium contributions, an increase in employees switching to lower-cost health care, and an increase in employees opting for in-lieu benefits is projected to bring a growth rate of 3.5% in the forecasted years. Operating Expenditures – Expenses include materials and supplies, fees, contract services and consultants (excluding Public Safety contract services), and are generally regulated by service level and budget availability. Under normal circumstances, operating expenditures are gene rally held flat or at minimal increases. Accounts are reviewed and forecasted individually, taking into consideration trends, variances, changes in service levels, and one-time occurrences. With the economic recovery and resulting service cost increases, total operating expenditures have jumped approximately 15% from a couple of years ago, however a good part of the increase is attributable to the fluctuation in contract services to meet temporary staffing needs. Most other operational costs reflect moderate increases of around 1% to 2.5% increases. Forecasted CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 141 operating expenditure increases average around 2.8% in the out years with the anticipation of maintaining the City’s high service level. Public Safety – Under the Sherriff’s service contract, annual increases are established at CPI plus 2%, with typical increases ranging from 3% to 6% each year. Under the latest agreement with Santa Clara County Sheriff’s Office, FY 2016/17through FY 2019/20 wages are scheduled to increase by 3% annually, with total contract costs expected to increase around 4% per year. Forecasted increases for FY’s 2020/21 and 2021/22 will follow suit as a best guess. Community Grants – Future year grants are projected at a slightly higher distribution amounts, to reflect Council’s trend to gradually increase grants over time as costs to provide services increase and additional community grant funding requests are received. Internal Service Funds (ISF) – With the wide variance in ISF functions, annual growth factors are adjusted on an individual fund basis. Insurance funds use a conservative but escalating projection to insure sufficient funding is available for premiums and claims. The Vehicle Maintenance, IT Services, and Building Maintenance ISF programs are expected to increase more rapidly due to ongoing labor and service level cost increases. The replacement ISF programs include a Vehicle & Equipment Replacement program, a Facility Furniture, Fixture, & Equipment (FFE) program, and a more comprehensive IT Replacement program. These funds have stable funding charges that are adequate to improve resource management funding, transparency, and management over a 20 year long term projection. These funds maintain a flat rate into the forecasted years. FISCAL SUSTAINABILITY Overall, the City’s General Fund forecast projection reflects a stable financial situation under steady times, with sufficient funding being made available for operations, internal service funding, and asset replacement costs on an ongoing basis. Positive Net Operations in the out years shows diminishing projections and end with a net loss in year five, indicating revenue estimates do not fully keep up with expenditure projections. While this forecast does not expect a future budgeted amount to be adopted to operate at a loss, the market trends indicate budgeting changes will need to be made in the future. CITY OF SARATOGA FINANCIAL SUMMARIES AND SUPPLEMENTAL INFORMATION 142 CITY OF SARATOGA DEPARTMENTAL BUDGET DIRECTORY 143 DEPARTMENT BUDGETS – BY PROGRAM COUNCIL & COMMISSIONS Council & Commissions Overview ............................................................................................................................. 147 1101 City Council ......................................................................................................................................................... 151 1201 City Commissions .............................................................................................................................................. 155 CITY MANAGER’S DEPARTMENT City Manager’s Department Overview ...................................................................................................................... 159 2101 City Manager’s Office ....................................................................................................................................... 165 2201 City Clerk ............................................................................................................................................................. 171 2401 Public Information Office ................................................................................................................................ 175 ADMINISTRATIVE SERVICES DEPARTMENT Administrative Services Department Overview ..................................................................................................... 179 3101 Finance Services ................................................................................................................................................. 185 3301 Human Resources .............................................................................................................................................. 189 3401 Administrative Services ................................................................................................................................... 193 Internal Service Funds 3102 Office Support Fund ......................................................................................................................................... 197 3201 Information Technology Services ................................................................................................................. 199 3202 IT Equipment Replacement Fund .................................................................................................................. 203 COMMUNITY DEVELOPMENT DEPARTMENT Community Development Department Overview ................................................................................................. 207 4101 Development Services ...................................................................................................................................... 213 4102 Advanced Planning ............................................................................................................................................ 217 4103 Code Compliance .............................................................................................................................................. 221 4201 Building & Inspection Services ....................................................................................................................... 225 PUBLIC WORKS DEPARTMENT Public Works Department Overview ......................................................................................................................... 229 5101 General Engineering .......................................................................................................................................... 235 5102 Development Engineering ............................................................................................................................... 239 5103 Environmental Services .................................................................................................................................... 243 5201 Streets & Storm Drains ..................................................................................................................................... 247 5301 Parks & Landscape Maintenance ................................................................................................................... 251 CITY OF SARATOGA DEPARTMENTAL BUDGET DIRECTORY 144 PUBLIC WORKS DEPARTMENT – CONT’D Internal Service Funds 5202 Vehicle & Equipment Maintenance ............................................................................................................... 255 5203 Vehicle & Equipment Replacement ............................................................................................................... 259 Special Revenue Funds 5302 Landscape & Lighting Districts ...................................................................................................................... 262 RECREATION & FACILITIES DEPARTMENT Recreation Department Overview .............................................................................................................................. 265 6101 Recreation Services ........................................................................................................................................... 271 6102 Teen Services....................................................................................................................................................... 275 6201 Facility Rentals ................................................................................................................................................... 279 Internal Service Funds 6202 Facility Maintenance ........................................................................................................................................ 283 6203 Facility FFE Replacement ................................................................................................................................. 287 PUBLIC SAFETY DEPARTMENT Public Safety Department Overview.......................................................................................................................... 291 7101 Public Safety Services ....................................................................................................................................... 295 7102 Emergency Preparedness ................................................................................................................................. 301 NON-DEPARTMENTAL Non-Departmental Overview ....................................................................................................................................... 305 8101 General Administration ................................................................................................................................... 309 8201 Legal Services ...................................................................................................................................................... 313 8301 Community Grants ............................................................................................................................................ 317 8302 Community Events ............................................................................................................................................ 319 8901 Emergency Operations ..................................................................................................................................... 323 Internal Service Funds 8401 Risk Management/Liability Insurance ......................................................................................................... 325 8501 Workers Compensation Insurance ................................................................................................................ 329 Debt Service Funds 8601 2001 Series GO Bond Debt Service Fund .................................................................................................... 333 CITY OF SARATOGA DEPARTMENTAL BUDGET DIRECTORY 145 CITY OF SARATOGA ORGANIZATION CHART FY 2017/18 FY 2017/18 FTE’s = 56.50 *Notes: Santa Clara County Sheriff’s Office provides police services for the City by contract. Santa Clara County Fire Department provides fire services, functioning as a separate entity. Santa Clara County Library District (JPA) provides library services as a separate entity, in a City owned library building provided by contract. San Jose Animal Services provides animal control services for the City by contract. Various public health/environment and utility services provided by separate districts or private enterprises City AttorneyCity Manager Community Development Dept 1.0 Community Development Director Facilities Division 1.0 Facility Maint. Manager 1.0 Facility Maint. Lead 1.0 Facility Maint. Planning Division 2.0 Senior Planners 1.0 Planner 1.0 Arborist 1.0 Office Specialist 1.0 Code Compliance Officer Engineering Division 1.0 Sr. Civil Engineer 1.5 Associate Engineer .90 Administrative Analyst .75 Office Specialist Parks Division 1.0 Parks & Landscape Mgr. 2.0 Park Maint. Lead 5.0 Park Maint Workers .50 Office Specialist Finance Division 1.0 Finance Manager .90 Accountant 1.0 Accounting Tech Lead 2.0 Accounting Techs Information Technology Division 1.0 IT Administrator 1.0 IT Technician Administrative Services Department 1.0 Administrative Services Director Recreation & Facilities Department 1.0 Recreation & Facilities Director Public Works Department 1.0 Public Works Director Recreation Services Division 1.0 Rec Supervisor .70 Rec Coordinator Lead 2.0 Rec Coordinators .60 Facility Coordinator Streets and Fleet Division 1.0 Streets and Fleet Manager 2.0 Street Maint. Lead 4.0 Street Maint. Workers Building Division .50 Associate Engineer 2.0 Building Inspectors 1.0 Plan Check Engineer 1.0 Permit Technician 1.0 Office Specialist Citizen Advisory Commissions & Committees CITIZENS OF SARATOGA Elected City Council Human Resources Division 1.0 HR Manager .75 HR Technician City Manager's Department 1.0 City Manager City Manager's Office 1.0 Deputy City Manager 1.0 City Clerk 1.0 Admin Analyst .90 Executive Assistant CITY OF SARATOGA DEPARTMENTAL BUDGET DIRECTORY 146 COUNCIL & COMMISSIONS DEPARTMENT 147 DEPARTMENT OVERVIEW The Council & Commissions Department, which represents the elected and appointed officials of Saratoga, consists of the City Council and City Commissions programs. The City Council has five publicly elected members who act as the legislative body representing the residents and community of the City of Saratoga. Council Members serve four -year terms, with elections for either two or three of the seats every two years. Each December, the Mayor and Vice -Mayor are elected by their fellow Council Members to one-year terms. If a council seat is vacated during a Council term, a Council Member may be appointed to fill the vacant seat for the remainder of the term. Alternatively, the Council may choose to hold an election to fill the Council seat. City Commissions are advisory bodies whose members are appointed by the Council. These Commissions are established to encourage residents to become involved in their community and to broaden the City’s decision-making processes. City Committees are also included in this program and differ from Commissions in that a committee represents a smaller advisory body with more narrowly defined duties. Active Commissions and Committees, effective with the adoption of the FY 2017/18 budget are as follows:  Heritage Preservation Commission  Library Commission  Parks & Recreation Commission  Planning Commission  Traffic Safety Commission  Youth Commission  Council Finance Committee  Pedestrian, Equestrian, Bicycle, Trails Advisory Committee  Public Safety Task Force DEPARTMENT OBJECTIVES The City Council and City Commissions represent the Saratoga community. The City Council establishes City policy and serves as the decision making body, receiving recommendations from Commissions and staff and then providing 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. Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives  Foster community partnerships through annual meetings between the City Council and stakeholder groups, including service organizations, cultural institutions, and other local government agencies serving Saratoga  Maintain an understanding of community needs and desires by being available to the community  Strengthen relationships with community members by attending community events  Adopt policies that encourage civic engagement, transparency, and efficiency in government  Encourage civic participation in government decisions through outreach, and public meetings  Comply with open government and ethics laws, including the Brown Act and Political Reform Act COUNCIL & COMMISSIONS DEPARTMENT 148 Council Strategic Goal Fiscal Stewardship: Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvement. Department Objectives  Adopt policies that encourage conservative budgeting and protect taxpayer dollars from frivolous use  Nurture a business friendly environment through policies and incentives  Identify and protect core services as budgetary priorities Council Strategic Goal Public Safety: Provide a safe and secure community. Department Objectives  Encourage residents to support community-oriented policing and prevent crime through safety awareness programs, such as Neighborhood Watch or other crime prevention programs, including crime prevention forums and the Public Safety Task Force  Reduce loss of life and property during a disaster by encouraging residents to participate in community-based emergency preparation, including the City’s Community Emergency Response Team (CERT) and Personal Emergency Preparedness program (PEP)  Facilitate neighborhood communications on safety related matters by hosting informational forums and providing residents with communication tools, such as Nextdoor.com, AlertSCC, TIS AM Radio and KSAR TV Council Strategic Goal Community Heritage: Honor Saratoga’s heritage by preserving significant historic assets. Department Objectives  Implement existing policies that maintain the City’s historic heritage  Protect the City’s natural beauty by maintaining the City’s ‘Tree City USA’ status, hillside preservation policies, and high standards of care for City parks  Appoint commissioners to the Heritage Preservation Commission who honor Saratoga’s heritage Council Strategic Goal Community Enrichment: Foster a community with an enriched and diverse culture and engaged citizenry. Department Objectives  Build community through grant programs that promote events in Saratoga  Provide leadership development opportunities for residents through appointments to civic boards and commissions, make appointments that reflect the multicultural nature and diverse interests of the City’s residents, and by providing volunteer opportunities  Promote health as a community value through health-related programs and policies, such as tobacco control policies and resources provided to encourage physical activity  Strengthen partnerships with local cultural organizations and institutions  Honor cultural diversity by participation in multicultural events, which enhance the vibrancy of Saratoga  Encourage inclusiveness by honoring and respecting diversity and making Saratoga an age -friendly community  Foster a business-friendly environment and a vibrant downtown by supporting and providing incentives and programs that draw people to the Village COUNCIL & COMMISSIONS DEPARTMENT 149 Council Strategic Goal Environmental Sustainability: Proactively support environmental sustainability efforts. Department Objectives  Adopt policies that manage and sustain the City’s urban forest and support environmental programs  Adoption of responsible environmental policies, including water conservation ordinances  Reduce the City’s carbon footprint and impact on the environment by adopting energy efficiency best practices and funding environmental sustainability projects, such as installation of solar panels at the City’s Corporation Yard and Saratoga Library  Purchase electric vehicles (EV) for city staff use and install EV charging stations throughout the City COUNCIL & COMMISSIONS DEPARTMENT 150 GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES – BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 1,200 3,600 600 600 4,200 - Other Sources - - - - - - TOTAL REVENUES 1,200$ 3,600$ 600$ 600$ 4,200$ -$ EXPENDITURES Salaries and Benefits 32,419 29,517 29,917 29,917 29,936 29,936 Operating Expenditures Materials & Supplies 7,119 10,484 9,049 29,800 17,620 41,200 Fees & Charges 40,919 27,748 180,376 91,450 76,827 82,050 Consultant & Contract Services 7,320 9,359 6,141 10,000 9,900 10,000 Meetings, Events, & Training 18,879 23,582 21,392 38,950 27,519 39,200 Total Operating Expenditures 74,236 71,174 216,958 170,200 131,866 172,450 Fixed Assets - - - - - - Internal Service Charges 47,474 59,333 62,758 65,854 65,854 69,354 TOTAL EXPENDITURES 154,129$ 160,023$ 309,633$ 265,971$ 227,655$ 271,739$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND City Council 124,780$ 129,132$ 278,794$ 214,058$ 188,067$ 208,877$ City Commissions 29,349 30,891 30,840 51,913 39,589 62,863 TOTAL GENERAL FUND 154,129$ 160,023$ 309,633$ 265,971$ 227,655$ 271,739$ TOTAL EXPENDITURES 154,129$ 160,023$ 309,633$ 265,971$ 227,655$ 271,739$ COUNCIL & COMMISSIONS DEPARTMENT CITY COUNCIL 151 CITY COUNCIL OVERVIEW The City Council is a five-member legislative body that represents the residents and community of Saratoga. The City Council operates under a Council/Manager form of government that combines the policy leadership of elected officials with the managerial expertise of an appointed City Manager. Council meetings are held on the first and third Wednesday of the month where Council actively seeks input in its decision-making process from Saratoga residents. The Council establishes direction on policy, legislative, and community matters, which are then carried out by City staff under the guidance of the City Manager. The City Council conducts meetings at least annually with all City Commissions, and community organizations that are closely affiliated with the City, including the Saratoga Chamber of Commerce, the Saratoga Area Senior Coordinating Council (SASCC), the Hakone Foundation, neighborhood associations, and the Saratoga Ministerial Association. These meetings serve to strengthen the Council’s relationships with its partners in the community. In addition, the Council forms subcommittees to work on specific projects or issues as needed. For example, the City Council formed a Public Art Ad Hoc to engage the Montalvo Arts Center to identify a work of art to be temporarily located on City property. In Fiscal Year 2016/17, the committee was converted to a standing committee to consider and make recommendations on public art opportunities in Saratoga. To further strengthen connections with the community, Council Members are appointed to serve as liaisons to community organizations as well as voting members on other governmental boards and Joint Power Authorities (JPAs), including the West Valley Solid Waste Management Authority and the West Valley Sanitation District. Council Members also serve on regional organizations such as Cities Association of Santa Clara County and the Peninsula Division of the League of California Cities, and sub-regional associations such as the West Valley Mayors and Managers (WVMM) group. The WVMM’s primary function is to select representation on the VTA Board and the Silicon Valley Regional Inter-Operability Authority, and acts as a forum for the discussion of issues common to the West Valley Cities of Saratoga, Cupertino, Campbell, and the Town of Los Gatos. Some Council Members are also appointed by other organizations to serve on regional boards or committees, such as the County of Santa Clara Recycling and Waste Reduction Commission. BUDGET HIGHLIGHTS Notable Budget Changes:  Council’s budget includes small cost increases associated with training and travel Revenues in the City Council Program are limited to City Council appeal fees—the City typically receives one or two per year. Expenditures include $250 monthly stipends for each of the five Council Members, funding for special events, meeting expenses, conferences, and operational supplies. Membership dues for Regional Agencies such as the Association of Bay Area Governments, the Santa Clara County Cities Association, and the West Valley Mayors and Managers Association are also included in this program budget. Each year, $50,000 is budgeted for Council discretionary funds for unanticipated expenditures that may occur during the year. Per policy, any remaining Council Discretionary funds at year-end is carried over to the following year, after the fiscal year is closed. This carryover is then an adjustment to the adopted budget. In FY 2016/17, the City Council authorized use of City Council discretionary funds on a number of projects. This included Community Events, $17,000 for America in Bloom expenses, $15,000 for the Neighborhood COUNCIL & COMMISSIONS DEPARTMENT CITY COUNCIL 152 Watch grant program to help groups get and stay organized, and a $15,000 contribution towards the Willys and Betty Peck Bronzes. As a result, most of the City Council FY 2016/17 discretionary funds will be expended, and the discretionary funding carryover will be small or none into FY 2017/18. While not budgeted, the City anticipates the $100,000 contribution made to Silicon Valley Clean Energy Authority in 2016, as an initial reimbursable contribution to fund the Community Choice Clean Energy Program, will be reimbursed to the City sometime during FY 2017/18. The initial contribution came from the Council’s discretionary fund, therefore would be returned to that fund when reimbursed. Because timing is not certain, the reimbursement is not included in the budget; a budget adjustment resolution will be brought before the City Council for consideration if received during the fiscal year. Another notable change to the City Council Program is a modest increase to the City Council’s training and travel budget. The additional funding reflects the increasing cost of training and travel for educational conferences. GENERAL FUND REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 1,200 3,600 600 600 4,200 - TOTAL REVENUES 1,200$ 3,600$ 600$ 600$ 4,200$ -$ EXPENDITURES Salaries and Benefits 18,854 16,599 16,353 16,353 16,372 16,372 Operating Expenditures Materials & Supplies 2,411 2,666 2,527 3,000 3,734 4,150 Fees & Charges 40,919 27,748 180,376 91,450 76,827 82,050 Consultant & Contract Services 7,320 9,359 6,141 10,000 9,900 10,000 Meetings,Events & Training 12,558 17,314 15,381 31,350 19,329 31,400 Total Operating Expenditures 63,207 57,088 204,425 135,800 109,790 127,600 Internal Service Charges 42,719 55,445 58,016 61,905 61,905 64,905 TOTAL EXPENDITURES 124,780$ 129,132$ 278,794$ 214,058$ 188,067$ 208,877$ COUNCIL & COMMISSIONS DEPARTMENT CITY COUNCIL 153 FY 2017/18 WORKPLAN PRIORITIES Fiscal Responsibility – Monitor the economy to ensure that the City’s operations are in sync with market trends, adjust City finances as needed, adopt financial policies that keep the City financially sound, and proactively seek opportunities to improve the strength of the City’s finances. Community Engagement – Create an inclusive community and encourage a greater sense of connection among residents by strengthening relationships between the City and residents, providing residents with opportunities for participation in local government, supporting community events, celebrating diversity, working towards making Saratoga a more age-friendly community, and proactively addressing topics of interest to the community. 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 – Monitor water consumption and energy use 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. KEY SERVICES  Represent the residents and community of Saratoga  Provide community leadership as the legislative and policy-making body  Effectively 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 COUNCIL & COMMISSIONS DEPARTMENT CITY COUNCIL 154 COUNCIL & COMMISSIONS DEPARTMENT CITY COMMISSIONS 155 CITY COMMISSIONS OVERVIEW City Commissions and City Committees are designated bodies that provide specialized advice or other assistance to the City Council and staff. Commissioners apply for and are appointed by the City Council to serve four-year terms. Youth Commission are appointed to two-year terms. At least one City staff member is assigned to each Commission to provide support and to ensure 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 Council on Commission specific issues. These include: Heritage Preservation Commission – The primary function of this seven-member Commission is to implement the City’s Heritage Preservation Ordinance by working with the Council, the Planning Commission, and City staff. The Commission is responsible for considering proposed modifications to designated historic landmarks, historic lanes, and historic districts, advising the Community Development Department about projects that may affect heritage resources, conducting property surveys to establish an official inventory of heritage resources within the City of Saratoga, recommending names for new streets to the City’s building official, and recommending designation proposals to the City Council for historic landmarks, historic lanes, historic districts, and heritage trees. The Commission meets the second Tuesday of each month. Library Commission – A five-member Commission that serves as an advisory body on library policies, budgets, plans, and procedures to the City Council, City staff, and the Santa Clara County Library District (SCCLD) staff. The Library building is owned by the City but operated by the SCCLD (a special district). The Library Commission does not have administrative authority over Library operations, but does participate in the general operational planning and related programs and policies. The Commission meets the fourth Tuesday of every other month. Parks & Recreation Commission – This five-member Commission advises the Council on a variety of matters as they relate to parks and recreation. Principally, the Commission serves as a conduit between the public and the Council by receiving public input, collecting information, and making recommendations to the City Council. The Commission meets the second Tuesday of every other month. Planning Commission – A seven-member Commission that works to maintain the unique character of Saratoga by ensuring that the physical development of the City is consistent with the environmental, social, and economic goals set forth in the City’s General Plan. The Planning Commission is also responsible for considering appeals of decisions made by the Community Development Department and acting on applications for use permits, design review, and other planning approvals. The Commission meets the second and fourth Wednesday of the month, and holds additional meetings as needed. Traffic Safety Commission – The Traffic Safety Commission investigates, reviews, analyzes, and makes recommendations to the Council on traffic safety issues raised by the community and Public Safety Agencies. The seven -member Commission provides a venue for the public to express concerns regarding traffic safety issues. This Commission meets the second Thursday of every other month. Youth Commission – This eleven-member Commission works to enhance the wellbeing of local youth, offer positive influences to teens, and provide opportunities for youth involvement in the community. Youth Commissioners serve as teen leaders, communicate with the City Council on current youth issues, and plan, promote, and participate in community events, fundraisers, social, and educational activities. The Commission is comprised of middle and high school students appointed by the City Council for two-year terms. The Commission meets the second Tuesday of each month during the school year. COUNCIL & COMMISSIONS DEPARTMENT CITY COMMISSIONS 156 Finance Committee – This standing Council Committee comprised of two Council members meets monthly, or as needed, to review City financial reports and budgets and to provide feedback to both staff and Council on financial matters. Pedestrian, Equestrian, Bicycle, Trails Advisory Committee (PEBTAC) – The PEBTAC’s mission is 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 PEBTAC serves as an advisory body to the Public Works Director. The Committee meets the third Tuesday of each month. Public Safety Task Force – The Public Safety Task Force was formed in 2016 by the City Council to serve in an advisory capacity until November 2016 and develop recommendations for enhancing public safety for the City Council to consider. The 5 members of the Task Force were each n ominated by a member of the City Council. The Task Force meets on the fourth Thursday of each month. Public Art Committee – The Public Art Committee is comprised of two members of the City Council and was formed in 2016 to advise the City Council on opportunities for public art in Saratoga. The Committee meets as needed. BUDGET HIGHLIGHTS Notable Budget Changes:  A total of $15,000 was set aside for Public Art in FY 2017/18  With the creation of the Public Safety Task Force, funding was added to the budget to cover meeting and other additional expenses  Funding for Planning Commission training was modestly increased With the exception of the Youth Commission, revenues are not generated by City Commissions, as Commissioners do not provide a service function to the public. Commissions primarily act as advisory boards, and report back to the City Council. On occasion, Youth Commission activities generate a small amount of fees or donations to partially offset costs associated with an event, such as face painting or a dance. Budgeted expenditures include funding for Planning Commissioner stipends. The seven Planning Commissioners are each awarded a stipend of $150 per month as a token of appreciation for the many hours they spend providing this community service. The remaining expenditures for this program are limited to training, meeting costs, and Commission specific expenditures, such as historical plaques the Heritage Preservation Commission provides for historical landmarks. Other expenses associ ated with the City Commissions budget may include memberships to Commissioner Associations that provide training or resources. Funding for the City’s annual Commissioner Recognition Dinner, which the Council holds to honor the service of the City’s Commissioners, is also included in this program. Staffing costs associated with supporting the various commissions are not included in the City Commissions budget, as activities are primarily limited to support functions. The most significant change to the Commission section of the FY 2017/18 budget is an allocation of $15,000 for public art. Though the use of the funds is not defined, it may be used for projects such as an ongoing art program, loan of artwork, or contributions to public art. COUNCIL & COMMISSIONS DEPARTMENT CITY COMMISSIONS 157 GENERAL FUND REVENUES AND EXPENDITURES KEY SERVICES  Provide specialized advice and assistance to Council  Broaden policy and decision making by providing additional forums for the public to provide input and testify at public hearings  Work with City staff in researching issues, collecting information, and providing recommendations to the Council 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits 13,564 12,918 13,564 13,564 13,564 13,564 Operating Expenditures Materials & Supplies 4,709 7,818 6,522 26,800 13,886 37,050 Fees & Charges - - - - - - Consultants & Contract Services - - - - - - Meetings, Events & Training 6,321 6,268 6,012 7,600 8,190 7,800 Total Operating Expenditures 11,030 14,086 12,533 34,400 22,076 44,850 Internal Service Charges 4,755 3,888 4,742 3,949 3,949 4,449 TOTAL EXPENDITURES 29,349$ 30,891$ 30,840$ 51,913$ 39,589$ 62,863$ COUNCIL & COMMISSIONS DEPARTMENT CITY COMMISSIONS 158 CITY MANAGER’S DEPARTMENT 159 DEPARTMENT OVERVIEW The City Manager’s Department is comprised of the City Manager’s Office, the City Clerk’s Office, and the Public Information 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 Office 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, and the Saratogan. 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 solid waste or recycling, public safety, and emergency preparedness. The Department is responsible for presenting an annual balanced fiscal year budget to City Council that reflects the most accurate revenue estimates and economic conditions at the time, assuring that City services are performed in accordance with City Council priorities and within the capabilities of the City’s resources. The City Manager strives to keep the City Council advised of the City’s financial condition and the future needs of the City on an ongoing basis, providing policy analysis, and overseeing numerous contract negotiations. The Department values its relationships with the community and fosters its partnerships with the Chamber of Commerce, Saratoga Area Senior Coordinating Council, Hakone Foundation, community access television station KSAR, and the administrators of other agencies and service districts in the City, including Santa Clara County Fire, local school districts, and West Valley College. DEPARTMENT OBJECTIVES The City Manager’s Department works to implement a number of the City Council’s Strategic Goals. These goals are noted below and reflected in the Performance Measures. Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives  Ensure the City Council is fully informed about City matters , provide support to City’s elected leadership, and administer implementation of Council priorities  Promote effectiveness of City operations through collaboration, open communications, efficient coordination, creative thinking, and professional development  Respond to community interests and needs by being available to the public, making meetings accessible, and establishing relationships with community members  Develop a highly effective workforce to promote good governance ethics and efficiency  Support community building by coordinating City events, overseeing the event grant program, and facilitating special event permits  Inform residents through proactive communications efforts, including media relations, social media, and other methods of communication  Oversee open government efforts, including compliance with th e Brown Act  Represent the City interests and involvement in regional issues CITY MANAGER’S DEPARTMENT 160 Council Strategic Goal Fiscal Stewardship: Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvement. Department Objectives  Promote a structurally balanced fiscal plan that is transparent and retains the City’s fiscal health, preserves essential services, and implements Council goals  Foster an environment where proactive, responsible, and transparent actions and decisions are encouraged and valued  Encourage a conservative approach to budgeting Council Strategic Goal Public Safety: Provide a safe and secure community. Department Objectives  Engage community members in crime prevention programs and educational efforts to promote community policing efforts and thereby decrease criminal activities  Involve the community in emergency preparedness and disaster mitigation planning to reduce loss of life and property during a disaster  Prepare for emergencies through employee training and exercises to ensure continued government operations during a crisis  Manage the Sheriff’s Office contract with the City of Saratoga  Provide staff support for the Public Safety Task Force  Manage the City of Saratoga Neighborhood Watch Program, including administration of the annual Neighborhood Watch Grant Council Strategic Goal Community Enrichment: Foster a community with an enriched and diverse culture and engaged citizenry. Department Objectives  Encourage community building events in Saratoga through the community event grant program, facilitation of special event permits, and promoting local events  Use a multitude of communication methods including the website, newsletter, radio, social media, and other traditional outreach methods, to reach a diverse range of residents  Promote resident participation in leadership roles by overseeing recruitment for positions on City Commissions and Committees Council Strategic Goal Environmental Sustainability: Proactively support environmental sustainability efforts. Department Objectives  Partner with other local agencies to address the causes and effects of climate change through changes in City policies and practices  Use City communication channels, including the website and newsletter, to inform residents of the importance of adopting more environmentally friendly practices  Support and host environmental events, such as Arbor Day or ribbon cuttings that showcase recently completed sustainable projects  Participate in regional efforts to increase sustainability of government operations CITY MANAGER’S DEPARTMENT 161 BUDGET HIGHLIGHTS With the 2017/18 budget, staffing in the City Manager’s Office has been restructured. Staffing levels will adjust from 4.00 Full Time Equivalents (FTEs) plus a half-time temporary staff, to 4.9 FTEs through the creation of a Deputy City Manager position and the elimination of the half time temporary staffing. The half -time temporary Executive Assistant staff backfill has allowed department staff to focus on special projects; however, the continued growing demand for higher-level work in the City Manager’s Department prompted a reassessment of ongoing staffing needs. To better meet the demands, the half Assistant to the City Manager/half City Clerk position was restructured to a full time City Clerk and full-time Deputy City Manager position, in conjunction with a .10 FTE reduction in the Executive Assistant to the City Manager position, and the elimination of the half-time temporary Executive Assistant. As a result, there is an increase in City Manager’s Office staffing expenditures in FY 2017/18. Starting in FY 2016/17, the City Manager’s Department budget included a new Public Information Office program, allowing for communication and outreach related expenses, previously dispersed throughout the budget, to be centrally managed and accounted for. In FY 2017/18, the KSAR video-taping service contract moved into the Public Information budget, resulting in a $35,000 increase. This realignment occurred with a shift of the KSAR funding payments from a support grant to a video -taping services contract. The City Manager’s overall departmental budget has increased from prior years as new expenditures are added or relocated into the Public Information Office section. CITY MANAGER’S DEPARTMENT 162 GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES – BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 625 934 401 - 21,400 - Other Sources - - - - - - TOTAL REVENUES 625$ 934$ 401$ -$ 21,400$ -$ EXPENDITURES Salaries and Benefits 643,182 699,518 674,348 731,809 695,662 844,488 Operating Expenditures Materials & Supplies 6,812 13,982 15,355 24,090 16,220 23,290 Fees & Charges 16,439 74,350 8,249 101,140 64,266 29,350 Consultant & Contract Services 30,266 31,711 24,750 57,800 35,258 92,900 Meetings, Events & Training 8,098 9,304 4,762 18,700 8,953 18,000 Total Operating Expenditures 61,615 129,348 53,116 201,730 124,697 163,540 Fixed Assets - - - - - - Internal Service Charges 99,349 111,361 123,780 135,714 135,714 147,006 TOTAL EXPENDITURES 804,146$ 940,226$ 851,244$ 1,069,253$ 956,073$ 1,155,034$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND City Manager's Office 500,476$ 569,824 527,923 451,020 449,212 564,534 City Clerk 303,670 370,402 323,321 438,418 395,717 372,744 Public Information Office - - - 179,815 111,144 217,756 TOTAL GENERAL FUND 804,146$ 940,226$ 851,244$ 1,069,253$ 956,073$ 1,155,034$ TOTAL DEPT. EXPENDITURES 804,146$ 940,226$ 851,244$ 1,069,253$ 956,073$ 1,155,034$ CITY MANAGER’S DEPARTMENT 163 DEPARTMENTAL ORGANIZATION CHART CITY MANAGER’S DEPARTMENT STAFF CITY MANAGER’S DEPARTMENT STAFF – BY PROGRAM City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded City Manager 1.00 1.00 1.00 1.00 1.00 Deputy City Manager - - - - 1.00 City Clerk 1.00 1.00 1.00 1.00 1.00 Exec Asst to CM / Deputy City Clerk 1.00 1.00 1.00 1.00 0.90 Administrative Analyst I/II 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 4.00 4.00 4.00 4.00 4.90 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded CMO Intern 320 320 - - 320 Executive Assistant (backfill)120 136 750 960 96 Temporary Pool Hours 940 - - - - TOTAL ANNUAL HOURS 1,380 456 750 960 416 City Staff by Program 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded City Manager's Office 2.50 2.50 2.50 1.60 2.25 City Clerk 1.50 1.50 1.50 1.50 1.55 Public Information Office - - - 0.90 1.10 TOTALS 4.00 4.00 4.00 4.00 4.90 City Manager 1.0 FTE Deputy City Manager 1.0 FTE Administrative Analyst 1.0 FTE Exec Assist to CM/ Deputy City Clerk .90 FTE City Clerk 1.0 FTE CITY MANAGER’S DEPARTMENT 164 CITY MANAGER’S DEPARTMENT CITY MANAGER’S OFFICE 165 CITY MANAGER’S OFFICE OVERVIEW The core services of the City Manager’s Office are to:  Provide leadership, oversight, and direction for City functions  Provide comprehensive information, policy analysis, and support to the City Council  Provide support and guidance to the City’s Commissions  Nurture community and intergovernmental relations  Cultivate public awareness of municipal services, programs, and activities The City Manager’s Office has direct oversight responsibility for the City Clerk and Public Information Office, and coordinates with external agencies that provide Public Safety, Animal Control, Solid Waste/Recycling, Cable Television, and Emergency Preparedness services to the City. BUDGET HIGHLIGHTS Notable Budget Changes:  Reduction in funding for part-time temporary staffing.  Increase in budgeted salaries and benefits with the creation of a full time Deputy City Manager position.  Budgeted decrease in operating expenditures due to shift of communication duty services and supplies to the new Public Information Office program.  Increase in budgeted training and travel expenses to reflect the increases in costs associated with educational conferences and addition of the Deputy City Manager position. The City Manager’s Office primarily provides a managerial oversight and coordination role for City operations and City Council support, hence revenue is minimal. City Manager Department duties vary as new initiatives and needs arise. In FY 2013/14, the City Manager’s Office added temporary staff funding for backup coverage of the front desk. This expenditure has remained in the City Manager’s Office budget to assist with staff coverage and special projects. In FY 2017/18, after an assessment of ongoing staffing needs, temporary staff funding was significantly reduced in conjunction with the addition of a Deputy City Manager position. With the addition of the new Deputy City Manager position, the City Manager’s Office will be better equipped to handle ongoing initiatives. Examples include administration of the Neighborhood Watch Program and annual grant program, support for the Public Safety Task Force, and staffing for the Public Art Committee. The additional staffing also provides flexibility in responding to special needs as they arise. Some recent examples include implementation of a senior taxi pilot program, analysis of minimum wage ordinances, oversight of Code Compliance, and the update to the City website. CITY MANAGER’S DEPARTMENT CITY MANAGER’S OFFICE 166 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Community Events –To bring people together and strengthen the City’s identity, the City Council instituted a community event grant program to encourage local organizations to hold community events, and a median banner program to help promote community events. Both progra ms are administered by the City Manager’s Office. Additionally, the City Manager’s office will continue to support event promotion efforts by sharing information about local events on the City website, social media sites, AM radio station, and by other me ans. Annual Budget – The City Manager’s Office will continue to oversee the development of the City’s annual Operating and Capital budgets for presentation to 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 management retreat to address organizational development and administrative policies, and to prepare for the annual City Council retreat. Organize an annual City Council retreat to facilitate policy and issue development, resulting in the generation of the City’s annual work plan and, subsequently, the operating and capital budgets. Neighborhood Watch – In 2016, the City Manager’s Office responded to community interest in Neighborhood Watch and developed a new Neighborhood Watch Program. There are now more than 40 neighborhoods with a registered Neighborhood Watch in Saratoga. To support the development and ongoing maintenance of Neighborhood Watch, the City also developed an annual grant program. Neighborhood groups can receive up to $300 to apply towards their Neighborhood Watch efforts. Examples of how funds have been used include food and supplies for block parties or production of informational flyers with crime prevention tips. Public Safety Task Force – In 2017, the City Council appointed 5 residents to serve on the Public Safety Task Force for a limited term, ending November 2018. The Task Force is responsible for developing recommendations to enhance public safety in Saratoga. The City Manager’s Office is responsible for providing staff to support the Public Safety Task Force. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 600 800 400 - - - TOTAL REVENUES 600$ 800$ 400$ -$ -$ -$ EXPENDITURES Salaries and Benefits 441,537 492,309 447,546 376,615 379,241 487,667 Operating Expenditures Materials & Supplies 4,434 11,055 12,659 7,250 12,001 6,450 Fees & Charges 3,909 4,025 5,735 5,900 3,686 5,620 Consultant & Contract Services - - - - 814 - Meetings, Events & Training 3,800 8,422 3,776 10,700 2,916 9,700 Total Operating Expenditures 12,142 23,502$ 22,169$ 23,850$ 19,416$ 21,770$ Fixed Assets - - - - - - Internal Service Charges 46,798 54,014 58,208 50,555 50,555 55,097 TOTAL EXPENDITURES 500,476$ 569,824$ 527,923$ 451,020$ 449,212$ 564,534$ CITY MANAGER’S DEPARTMENT CITY MANAGER’S OFFICE 167 Public Art Committee – In December 2016, the City Council made the Public Art Ad Hoc Committee a standing Committee comprised of two City Council Members. Staff from the City Manager’s Office is providing support for the Committee and will be assisting with any public art programs or efforts that develop in FY 2017/18. Website Update – This project will update the City’s website—the City’s primary and predominant internet presence—and will incorporate advancements in technology and design since the current website was launched in 2009. An improved design, structure, and mobile -friendly access will make it easier for the public to navigate the City’s website and access information. The project also includes development of an internal intranet site to improve the communication and use of internal information among staff. KEY SERVICES  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 City Council each fiscal year which reflects the most accurate revenue estimates and economic conditions at the time  Assure 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 the future needs of the City on an ongoing basis CITY MANAGER’S DEPARTMENT CITY MANAGER’S OFFICE 168 CITY MANAGER’S OFFICE STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded City Manager 1.00 1.00 1.00 1.00 1.00 Deputy City Manager - - - - 0.80 City Clerk - - - - - Exec Asst to CM / Deputy City Clerk 0.50 0.50 0.50 0.50 0.45 Administrative Analyst I/II 1.00 1.00 1.00 0.10 - TOTAL FTE's 2.50 2.50 2.50 1.60 2.25 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded CMO Intern 320 320 - - 320 Executive Assistant (backfill)120 136 375 480 96 Temporary Pool Hours 940 - - - - TOTAL ANNUAL HOURS 1,380 456 375 480 416 CITY MANAGER’S DEPARTMENT CITY MANAGER’S OFFICE 169 PERFORMANCE OBJECTIVES & MEASURES ACTIVITY & WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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:92%92%92%92%92% 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 weekly meetings with the City's Management team to discuss upcoming agenda items and share information: 98%98%98%93%95% b.Make professional development and leadership training opportunities available to Directors and City staff: Yes Yes Yes Yes Yes c.Professional Association Memberships:7 7 15 15 15 3. a.West Valley Mayor's and Managers Meetings:10 10 11 10 10 b.Santa Clara County City Manager's Association Meetings: 10 10 10 7 7 Actual Actual 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. Represent the City interests and stay apprised of local and regional issues. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.30 33 30 24 25Number of City Council Meetings Per Year: CITY MANAGER’S DEPARTMENT CITY MANAGER’S OFFICE 170 CITY MANAGER’S DEPARTMENT CITY CLERK’S OFFICE 171 CITY CLERK’S OFFICE OVERVIEW 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. Additional duties include: maintaining custody of the City Seal; administering oaths and affirmations; preparing and publishing legal notices; maintaining the Saratoga Municipal Code; processing board and commission recruitment applications; working with the Santa Clara County Registrar of Voters to conduct local elections in a fair and impartial manner; and receiving petitions and subpoenas on behalf of the City. BUDGET HIGHLIGHTS Notable Budget Changes:  Decrease in funding for temporary staff  During non-Election years, the operating costs of the City Clerk’s division decreases The City Clerk division functions to provide support to the City Council and City Manager, so does not typically generate notable operational revenues. In election years, the City Clerk will collect $25 Council Candidate Filing Fees from each of the candidates and pro rata costs for printing of Candidate’s Statement of Qualifications, and on occasion, the public may requests copies of documents which generate a small amount of copy fees. Copy fees are unpredictable and minimal in amount, so are not budgeted. Budgeted operating expenditures are limited to basic City Clerk functions: office and record keeping supplies, legal public notices, codification contract service charges, e-filing service fees, and agenda packet and video streaming service charges. Every two years, the City conducts a City Council election. In FY 2016/17, the budget for the City Clerk increased as there was an election for two positions on the City Council. Subsequently in FY 2017/18, the budget for election costs decreased. Staffing costs adjusted downward slightly to reflect the elimination of funding for part-time temporary staff, the position change to a full-time City Clerk with a .05 FTE decrease in the Executive Assistant to the City Manager, and a .10 FTE addition of the Deputy City Manager for oversight. CITY MANAGER’S DEPARTMENT CITY CLERK’S OFFICE 172 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Records Management – 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. 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 amount of public records accessible online to the public through the Laserfiche Weblink Repository. City Contracts – Continue use of contract routing software and research of electronic signature options. Agenda Workflow and Video Streaming – Identify opportunities to improve the new 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. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 25 134 1 - 21,400 - Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES 25$ 134$ 1$ -$ 21,400$ -$ EXPENDITURES Salaries and Benefits 201,645 207,209 226,802 234,586 235,129 231,897 Operating Expenditures Materials & Supplies 2,378 2,927 2,696 3,240 1,233 4,740 Fees & Charges 12,531 70,325 2,514 92,990 58,767 22,105 Consultant & Contract Services 30,266 31,711 24,750 31,600 25,658 31,700 Meetings, Events & Training 4,298 882 987 5,700 4,629 5,500 Total Operating Expenditures 49,473 105,846 30,947 133,530 90,286 64,045 Fixed Assets - - - - - - Internal Service Charges 52,551 57,347 65,572 70,302 70,302 76,802 TOTAL EXPENDITURES 303,670$ 370,402$ 323,321$ 438,418$ 395,717$ 372,744$ CITY MANAGER’S DEPARTMENT CITY CLERK’S OFFICE 173 KEY SERVICES  Meet legal requirements as set forth in the State of California Government Code and City Municipal Code  Maintain City records through timely indexing of resolutions, ordinances, and agreements  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 that all elected officials, appointed officials, and required staff meet mandatory AB 1234 biennial training requirements  Administer recruitment process for Commission and Outside Agency Council appointments CITY CLERK’S OFFICE STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded City Manager - - - - - Deputy City Manager - - - - 0.10 City Clerk 1.00 1.00 1.00 1.00 1.00 Exec Asst to CM / Deputy City Clerk 0.50 0.50 0.50 0.50 0.45 Administrative Analyst I/II - - - - - TOTAL FTE's 1.50 1.50 1.50 1.50 1.55 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded CMO Intern - - - - - Executive Assistant (backfill)- - 375 480 - TOTAL ANNUAL HOURS - - 375 480 - CITY MANAGER’S DEPARTMENT CITY CLERK’S OFFICE 174 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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: 100%100%100%100%100% 2. a.Prepare boxes of records for digital scanning:8 5 3 8 4 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:Not Available 70%68%87%70% b.Percentage of Public Record Requests fulfilled within 10 days: Not Available Not Available 90%95%93% 4. a.18 13 21 13 16 Promote transparency of City operations with scheduled noticing, recording, and prompt reporting of City Council meetings and actions. Voluntarily comply with Public Records and Brown Act requirements. Number of Commission recruitments and appointments processed: Promote resident participation in leadership roles by overseeing recruitment for positions on City Commissions and Committees. Maintain City documents and records to promote open government efforts, and in accordance with State law and City ordinances. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.30 33 30 24 25 2.62 52 49 51 48 3.80 70 81 69 70 4.10 12 12 10 10 Number of boxes of City records processed for disposal: Number of resolutions: Number of ordinances: Number of City Council minutes prepared per year: CITY MANAGER’S DEPARTMENT PUBLIC INFORMATION OFFICE 175 PUBLIC INFORMATION OFFICE OVERVIEW The Public Information Office is responsible for community outreach to ensure that residents have access to timely, useful, and important information. The Public Information Office oversees and maintains many of the City’s lines of communication with residents, including the City’s website, Median Banner Program, social media accounts, monthly e-newsletter, annual Saratogan, email services, videos, surveys, event tabling, flyers, and press releases. The Public Information Office also acts as a liaison between various City departments and the community when it comes to communicating information about projects and events. BUDGET HIGHLIGHTS Notable Budget Changes:  This is the first year the Public Information Office has appeared in the budget. Many communication-related items have been moved from the City Manager’s Office and Non - Departmental budgets into the Public Information Office budget. Due to the nature of the Public Information Office, no revenue is received in the Public Information Office program. The expenditure side is limited to staffing, and a small amount of operational supplies and services. Ninety- percent of the Administrative Analyst position in the City Manager’s Department is allocated to the Public Information Office budget. Operating expenditure appropriations take into account major upcoming communication efforts. Those include the 2017 State of the City Address and public outreach for the Community Choice Energy program. The budget also consists of expenses related to ongoing City outreach efforts, such as The Saratogan newsletter, Constant Contact email service, and City promotions of events.  This is the second year the Public Information Office has appeared in the budget. Communication - related items continue to be moved from the City Manager’s Office and Non-Departmental budgets into the Public Information Office budget. In 2017/18, the costs associated with KSAR Services for recording and televising City Council and Planning Commission meetings, as well as other City events, was added to the Public Information Office budget. Due to the nature of the Public Information Office, no revenue is received in the Public Information Office program. The expenditure side is limited to staffing, and a small amount of operational su pplies and services. The Administrative Analyst position allocation was revised to include the full 1.0 FTE, along with .10 FTE of the Deputy City Manager position to the Public Information Office budget. Operating expenditure appropriations take into account major upcoming communication efforts. That includes the costs associated with producing a new annual Saratogan. The budget also consists of expenses related to ongoing City outreach efforts, such as Constant Contact email service, video productions, and City promotions of events. CITY MANAGER’S DEPARTMENT PUBLIC INFORMATION OFFICE 176 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES  City Video Program – The Public Information Office will oversee the production of multiple Council - and Planning Commission-hosted videos, to inform and educate residents on important projects and activities within Saratoga. These videos will be posted to the City’s website and social media accounts in order to make them available and easily attainable.  Community Outreach – The Public Information Office will continue the City’s efforts to improve communications through the use of traditional media (press releases, flyers), social media (Facebook, Nextdoor, Twitter), online services (Constant Contact, Peak Democracy), as well as through the City’s website and tabling at events. This outreach will enhance the City’s engagement with the community by informing the public of important City-related matters, such as meetings, events, and projects.  Photo Library – Photographs and images have become increasingly important in community outreach. They help grab the attention of the public and enhance the City’s messaging. In summer 2014, the City hired a photography intern who bolstered the City’s photo library. The City has used many of these pictures multiple times; however, the City has changed since the photos were taken. Updated photos of the City are needed for outreach efforts, especially through social media, flyers, videos, and on the City’s updated website.  Centralized Communications – With an ever-increasing number of communications tools and launch of a new City website, the City will be centralizing communications as much as possible through the Public Information Office. This will ensure information from the City is shared in a manner that is consistent, accessible, methodical, and timely. As a result, the City hopes to improve effectiveness of communications and reach a broader audience. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits - - - - - - Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits - - - 120,608 81,292 124,924 Operating Expenditures Materials & Supplies - - - 13,600 2,986 12,100 Fees & Charges - - - 2,250 1,813 1,625 Consultant & Contract Services - - - 26,200 8,787 61,200 Meetings, Events & Training - - - 2,300 1,409 2,800 Total Operating Expenditures - - - 44,350 14,995 77,725 Fixed Assets - - - - - - Internal Service Charges - - - 14,857 14,857 15,107 TOTAL EXPENDITURES -$ -$ -$ 179,815$ 111,144$ 217,756$ CITY MANAGER’S DEPARTMENT PUBLIC INFORMATION OFFICE 177 KEY SERVICES  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  Build community pride and positive identification 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 PUBLIC INFORMATION OFFICE STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded City Manager - - - - - Deputy City Manager - - - - 0.10 City Clerk - - - - - Exec Asst to CM / Deputy City Clerk - - - - - Administrative Analyst I/II - - - 0.90 1.00 TOTAL FTE's - - - 0.90 1.10 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded CMO Intern - - - - - TOTAL ANNUAL HOURS - - - - - CITY MANAGER’S DEPARTMENT PUBLIC INFORMATION OFFICE 178 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Produce City Newsletter, Saratogan:3 4 4 4 4 b.Provide information about City news and activities on the City website, Facebook page, and Nextdoor site: Yes Yes Yes Yes Yes c.Send e-mail notifications for Council agendas, Commission meeting agenda/minutes, publication of Saratogan, weekly Sheriff's Office updates and community events updates: 95%95%95%95%95% d.Produce outreach materials, such as the Budget in Brief, that provide an overview on City operations: Yes Yes Yes Yes Yes e.Prepare and distribute press releases on important City news: Yes Yes Yes Yes Yes 2. a.Facilitate and issue permits for special events:12 8 12 2 Moved to Comm Dev b.Accept applications for Community Event Grant Program: 23 12 17 16 15 Inform residents through proactive communications efforts, including media relations, social media, and other methods of communication. Encourage community building events in Saratoga through the community event grant program, facilitation of special event permits, and promoting local events. 2013/14 2014/15 2015/16 2016/17 2017/18 Actual Actuals Actuals Actual Budget 1.381 650 1194 1420 1650 2.Not Available 24 31 51 48 3.Not Available 115 122 227 200 4.19 11 16 15 14 5.7 9 6 5 5Events hosted by City: City of Saratoga Facebook Page Fans: Number of Median Banner Program reservations: Number of Banners displayed through Median Banner Program: Number Community Event Grant Programs funded: ADMINISTRATIVE SERVICES DEPARTMENT 179 DEPARTMENT OVERVIEW The Administrative Services Department provides oversight and support for the City’s financial, human resources, administrative, and technology operations. As the department’s Finance, Human Resources and Administrative Services divisions are centralized functions providing citywide administrative, financial, and legally required comprehensive support, the programs are included within the General Fund. The Information Technology (IT) Services division primarily provides both centralized and user specific technology support at varying service levels as requested or required by City departments, and is therefore an Internal Service Fund (ISF) program. The two equipment usage and replacement funds: Information Technology Equipment Replacement; and Office Support Services are also ISF programs. Internal Service Fund charges allocated to the various department programs proportionately account for the usage of services, equipment, and identifiable support provided. This allows the City to better identify progr am costs for functions and services. DEPARTMENT OBJECTIVES The Administrative Services Department directly supports several of the City Council’s Strategic Goals through implementation of the department’s objectives, as listed below. Performance Measures in support and service programs (programs with staffing) provide information on the Department’s attainment of these objectives. Council Strategic Goal Fiscal Stewardship: Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvement. Department Objectives  Maintain responsible, sustainable, and enforceable fiscal policies and practices  Establish and uphold effective internal controls  Maintain excellent fiscal status with efficient use of assets and resources  Utilizing long-range fiscal planning tools, prepare structurally balanced fiscal plans that retain the City’s fiscal health, preserve essential services, and implement Council’s goals  Provide timely and accurate financial reporting in compliance with accounting standards and regulations Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives  Provide fair and proper administrative and personnel decisions that foster a proactive, responsible, and transparent government  Recruit, retain, and develop a highly effective workforce to promote good governance ethics  Promote organizational effectiveness through streamlined internal processes, leadership, teamwork, and innovation  Support transparent government initiatives ADMINISTRATIVE SERVICES DEPARTMENT 180 Council Strategic Goal Facility and Infrastructure: Maintain the City’s facilities and infrastructure in a safe, secure, sustainable, and cost effective manner. Department Objectives  Ensure technology infrastructure functions properly, is up-to-date, and secure  Provide for well-maintained, cost-effective equipment and infrastructure  Protect the City’s technology related assets from unauthorized use BUDGET HIGHLIGHTS The department’s General Fund budget consists of the Finance, Human Resources, and Administrative Services programs. Office Support, IT Services, and IT Replacement programs are all funded by the Internal Service Funds. The General Fund programs are relatively stable year over year. Only Finance has a regular revenue stream; from Business License related service fees. The Human Resources and Administrative Services programs are primarily oversight and support functions and do not generate revenues. The Internal Service Fund program revenues consist mainly of service chargebacks from other city programs for allocated support of IT services, equipment, and office support expenses. On the expenditure side, General Fund expenditures reflect staffing costs, operational supplies and services, and internal service fund charges. Internal Service Fund expenses consist of staffing, supplies, equipment costs, leases, and annual support/license fees. With ever-increasing technology, information, and support demands, the department’s workload has expanded over time. With the hiring of a Finance Manager in mid-FY 2013/14, and a transference of duties over the remainder of the fiscal year, an Administrative Services program was added to the department, effective with the FY 2014/15 budget. A portion of the Director’s FTE and an Accounting Technician was shifted from Finance into the Administrative Services program to reflect the position’s broadening focus on policy and procedural development, additional long-range planning and financial communications, and the development of a city-wide administrative management tool. The remainder of the department’s General Fund operating budget is relatively steady as administrative and support oriented functions generally reflect staff time rather than materials, fees, or consultant and contract services, therefore daily operating expenses do not vary significantly from year -to-year. The budget shift from Finance to Administrative Services was reflected in a realignment of expenditures between the programs, with costs holding steady at the departmental level. ADMINISTRATIVE SERVICES DEPARTMENT 181 GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES – BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 41,618 45,085 44,850 42,880 43,030 41,800 Charge for Services - - - - - - Other Sources 5,991 11,496 5,297 5,000 21,246 5,250 TOTAL REVENUES 47,609$ 56,581$ 50,147$ 47,880$ 64,276$ 47,050$ EXPENDITURES Salaries and Benefits 952,948 1,045,287 1,077,571 1,109,160 1,108,824 1,136,814 Operating Expenditures Materials & Supplies 12,610 9,132 7,515 11,950 9,240 16,700 Fees & Charges 21,704 17,842 18,162 21,415 21,069 21,124 Consultants & Contract Svcs 66,389 52,824 69,377 80,500 46,651 84,800 Meetings, Events & Training 35,678 14,665 14,608 22,225 10,225 19,650 Total Operating Expenditures 136,381 94,463 109,661 136,090 87,184 142,274 Fixed Assets - - - - - - Internal Service Charges 147,161 150,297 165,416 177,052 177,052 181,552 TOTAL EXPENDITURES 1,236,490$ 1,290,047$ 1,352,648$ 1,422,302$ 1,373,060$ 1,460,640$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Financial Services 899,080 778,447 797,281 827,378 813,531 856,223 Human Resources 337,410 325,218 332,482 343,037 329,997 360,097 Administrative Services - 186,382 222,885 251,887 229,531 244,320 TOTAL GENERAL FUND 1,236,490 1,290,047 1,352,648 1,422,302 1,373,060 1,460,640 INTERNAL SERVICE FUNDS Office Support Services 35,928 46,229 44,606 73,450 46,235 71,750 Information Technology Services 422,703 432,550 467,583 602,565 497,209 599,725 IT Replacement Fund 58,530 23,687 44,762 136,280 84,040 89,800 TOTAL INT SERVICE FUNDS 517,161$ 502,466$ 556,952$ 812,295$ 627,483$ 761,275$ TOTAL DEPT EXPENDITURES 1,753,651$ 1,792,513$ 1,909,600$ 2,234,597$ 2,000,543$ 2,221,915$ ADMINISTRATIVE SERVICES DEPARTMENT 182 Finance & Admin Services Director 1.0 FTE Finance Manager 1.0 FTE Human Resources Manager 1.0 FTE IT Supervisor 1.0 FTE Accountant .90 FTE Lead Accounting Technician 1.0 FTE Accounting Technician 1.0 FTE Accounting Technician 1.0 FTE Human Resources Technician .75 FTE IT Technician 1.0 FTE DEPARTMENTAL ORGANIZATION CHART ADMINISTRATIVE SERVICES DEPARTMENT 183 ADMINISTRATIVE SERVICES DEPARTMENT STAFF ADMINISTRATIVE SERVICES DEPARTMENT – BY PROGRAM City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Administrative Services Director 1.00 1.00 1.00 1.00 1.00 Finance Manager 1.00 1.00 1.00 1.00 1.00 Accountant I/II 0.90 0.90 0.90 0.90 0.90 Accounting Technician/Lead 3.00 3.00 3.00 3.00 3.00 Human Resources Manager 0.90 0.90 0.90 0.90 0.90 Human Resources Technician 0.65 0.65 0.65 0.65 0.65 Information Technology Administrator 1.00 1.00 1.00 1.00 1.00 Information Technology Technician 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 9.45 9.45 9.45 9.45 9.45 Temporary Staff Hours 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Sr. Accountant 200 - - - - IT Technician - - - - - HR Technician - - - - - Student Intern 320 320 - - - Graphics Design Assistant - - 150 - - TOTAL ANNUAL HOURS 520 320 150 - - City Staff by Program 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded Finance 5.70 5.00 4.75 4.75 4.75 Human Resources 1.85 1.85 1.85 1.85 1.85 Administrative Services - 0.70 0.95 0.95 0.95 Information Technology 2.10 2.10 2.10 2.10 2.10 TOTALS 9.65 9.65 9.65 9.65 9.65 The Adminstrative Services Departmental Staff schedule includes General Fund and Internal Service staffing assigned within this department. The .10 FTE of the HR Manager and .10 FTE of the HR Technician funded and assigned to the Workers Compensation program in the Non-Departmental section are not reflected in the Department's FTE total, but are reflected above in the Total Staff - by Program FTE schedule. ADMINISTRATIVE SERVICES DEPARTMENT 184 ADMINISTRATIVE SERVICES DEPARTMENT FINANCE SERVICES 185 FINANCE SERVICES OVERVIEW The Finance Division program functions to assure both legal and fiscal accountability to the public through responsible, sustainable, and enforceable fiscal policies and practices. The program provides financial oversight and administration of accounting functions for all the City’s funds and accounts; monitors the Annual Operating and Capital Budgets for fiscal and operational accountability; coordinates the annual financial audit and preparation of the Comprehensive Annual Financial Report (CAFR) to veri fy proper fiscal reporting; ensures all Federal, State, and County fiscal reporting requirements are fulfilled; administers the City’s Accounts Payable, Accounts Receivable, Payroll and Business License functions; oversees Treasury responsibilities, and provides general asset management and purchasing oversight and support functions, ensuring proper practices are in place, and that fiscal and operational responsibility is upheld. BUDGET HIGHLIGHTS Notable Budget Changes:  Budgeted salary and benefit expenditure growth reflects cost of living and step increases.  Operational funding was added for new print stock security purposes and additional auditing services in conjunction with grant funded CIP projects requirements. The FY 2017/18 Finance Division budget reflects anticipated revenues and expenditures associated with providing financial operation oversight and services. Service fee revenue associated with processing Business Licenses is accounted for in the Finance Division, whereas the tax revenue collected under this licensing program flows to the General Administration program in the Non-Departmental Section. Late fees continue to be collected from delinquent submittals and from the ongoing compliance audit for non-filers. The audit amount has steadily decreased over the years as the auditors have identified the majority of unlicensed businesses in the first few years. Unlicensed businesses are assessed late fees to a full amount of the license itself, for up to a maximum three years in arrears. While new business license processing fee revenue has dropped slightly, renewal license fee revenue is expected to remain relatively steady because of the ongoing business license compliance audit and the stable economy. Division expenditures remain steady; funding requirements reflect basic operational expenses, including bank fees, operational supplies, annual audit services, and required reporting fees and services. Professional association fees and limited training support ongoing educational needs to keep current with the City’s financial oversight duties. The Finance Division’s largest operational expense is the annual financial audit, which is required by State law. The annual audit expense amount was increased from $32,500 to $40,000 in FY 2017/18 in anticipation of increased audit services to address multiple unknowns: singe audits for several large grant-funded capital projects in process; the issuance of the Arrowhead Community Facility District bond; and potential federal or state audit requirements for the February 2017 storm-related disaster claims. ADMINISTRATIVE SERVICES DEPARTMENT FINANCE SERVICES 186 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Reporting Enhancements – Staff will continue to improve reporting preparation processes and publish the Comprehensive Annual Financial Report, Monthly Treasurers Reports, and Quarterly Budget Status Reports, with a focus on enhanced presentation, documentation, compliance requirements, and readability. Financial System – The financial system was upgraded in early FY 2016/17 to maintain the technology requirements of the vendor and improve processes. Shortly after completing the upgrade, the software company was sold to another firm. This new firm is now requiring the Report Net module of the financial system, an integrated but separate system tool, be upgraded to the newer version as well. Once trained on the system’s new capabilities to enhance system information productivit y, Finance staff will train other staff users. Credit Card Processing – Staff will review credit card processing options to move away from a cost model to a true pass-through processing system, thereby eliminating credit card processing fee impacts. D ebit card options will also be considered in the review. Banking Services – Staff will research banking service options, determine desirable service tools, determine productivity of preparing a banking services RFP, and pursue if advantageous. Disaster Claim Processing –The severity of the February 2017 winter storms resulted in both Federal and State ‘State of Emergency’ declarations throughout California. In Saratoga, more than $100,000 was expended for emergency tree and debris clearing services, an d fence repairs. Finance will be working with Public Works and Emergency Preparedness staff to complete and submit reimbursement claims to the Federal Emergency Management Agency (FEMA) and California Office of Emergency Services (Cal OES) to receive reimbursements. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 41,618 45,085 44,850 42,880 43,030 41,800 Charge for Services - - - - - - Other Sources 5,991 11,496 5,297 5,000 6,011 5,250 TOTAL REVENUES 47,609$ 56,581$ 50,147$ 47,880$ 49,041$ 47,050$ EXPENDITURES Salaries and Benefits 702,479 611,118 608,580 628,977 632,548 647,648 Operating Expenditures Materials & Supplies 11,221 7,679 6,270 10,500 8,403 15,500 Fees & Charges 9,413 8,685 8,301 9,585 9,529 9,559 Consultants & Contract Services 54,391 42,016 52,309 45,700 36,101 51,400 Meetings, Events & Training 4,595 2,445 4,990 8,350 2,685 5,350 Total Operating Expenditures 79,619 60,825 71,869 74,135 56,718 81,809 Fixed Assets - - - - - - Internal Service Charges 116,983 106,504 116,832 124,266 124,266 126,766 TOTAL EXPENDITURES 899,080$ 778,447$ 797,281$ 827,378$ 813,531$ 856,223$ ADMINISTRATIVE SERVICES DEPARTMENT FINANCE SERVICES 187 KEY SERVICES  Monitor the City’s revenue and expenditures to ensure compliance with the annual operating and capital budget appropriations– in accordance with best practices and standards  Coordinate the annual audit of the City’s financial statements and preparation of the Comprehensive Annual Financial Report (CAFR)  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 reconcilement; 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 FINANCE SERVICES STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Administrative Services Director 0.80 0.10 0.10 0.10 0.10 Finance Manager 1.00 1.00 1.00 1.00 1.00 Accountant I/II 0.90 0.90 0.90 0.90 0.90 Accounting Technician/Lead 3.00 3.00 2.75 2.75 2.75 Human Resources Manager - - - - - Human Resources Technician - - - - - Information Technology Administrator - - - - - Information Technology Technician - - - - - TOTAL FTE's 5.70 5.00 4.75 4.75 4.75 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Sr. Accountant 200 - - - - TOTAL ANNUAL HOURS 200 - - - - ADMINISTRATIVE SERVICES DEPARTMENT FINANCE SERVICES 188 PERFORMANCE OBJECTIVES & MEASURES ACTIVITY & WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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: 12 of 12 19 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.Percentage of Accounts Payable invoices processed accurately and on-time: 99.00%100%99.00%100%100% b.Percentage of Payroll checks paid accurately and on-time:100%100%100%100%100% c.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 Unfunded Accrued Liability under City's accelerated payment plan: $500,000 $500,000 $500,000 $750,000 c.Meet and maintain Fund Balance Reserves fiscal policy requirements: Yes Yes Yes Yes Yes Provide timely and accurate financial reporting within specified deadlines. Assure legal and fiscal accountability to the public, in compliance with established accounting standards. Provide financial oversight and administer accounting functions for City funds and accounts. $ 3,294,619 Proactively manage the City's finances to maintain excellent fiscal status. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.0 0 0 0 0 2.1,230 1,260 1,261 1,200 1,240 3.2,240 2,238 2,260 2,130 2,200 4.7,320 7,106 7,273 7,092 7,200 5.50 51 53 49 51 6.3 0 1 1 0 7.26 30 39 20 25 8.1,940 1,850 1,952 1,868 1,900 Number of Business Licenses issued annually: Average number of Accounts Payable checks issued weekly: Number of payroll checks, paycheck vouchers, and stipends issued annually: Number of invoices entered into Accounts Payable system: Number of Cash Receipt batches processed annually: Number of corrections resulting from annual financial audit: Number of voided checks - due to lost/destroyed checks, printer error, or incorrect invoice information: Number of voided checks - due to processing errors: ADMINISTRATIVE SERVICES DEPARTMENT HUMAN RESOURCES 189 HUMAN RESOURCES OVERVIEW The Human Resources Division provides the full scope of professional, technical, and support services to attract, retain, and develop a professional and committed workforce that provides excellent internal and external customer service and promotes a safe workplace; supports the use of best practices to reduce workers’ compensation claims; and ensures that the City complies with laws and regulations regarding employment and labor relations, including establishing and monitoring the City’s personnel practices and policies consistent with employment law updates. Human Resources core services include: recruitment and selection; employee and labor relations; classification and compensation; benefit design, negotiation and administration; performance management; records management; employee training (both legally mandated and discretionary); policies and procedures; employment and labor law compliance; special projects in support of City operations; and management of a variety of City programs including: Employee Recognition; “Volunteer Saratoga”; Emergency Volunteer Management; Workers Compensation, Safety and Wellness; Custodian of Records Depa rtment of Justice; and the Department of Motor Vehicles’ Employee Pull Notice (EPN) program. BUDGET HIGHLIGHTS Notable Budget Changes  Budgeted salary and benefit expenditure growth reflects cost of living and step increases. The Human Resources program focus is to support citywide personnel related functions. There are no direct service activities that generate revenues. Staffing includes .90 FTE of the Human Resources Manager and .65 FTE of the Human Resources Technician (the remaining .10 FTE for each of these positions is included in the Workers Compensation program under the Non-Departmental Section). The Administrative Services Director allocates .10 FTE to this program for division administration oversight. The Human Resources expenditure budget typically remains constant from year to year unless there are budgetary or organizational changes. With none expected, the ongoing operational expenditures include: membership in the Santa Clara County Bay Area Employee Relations Services (BAERS), membership with CalOpps, NEOGOV online performance appraisal system annual license and software support, and contract training services. Also included is operational funding for supplies, association dues, employee and organizational training, and the employee assistance program (EAP). BAERS (www.bayareaers.org) is a joint powers agency which provides online access to relevant classification, benefits and compensation data of Northern California agencies for survey analysis and classification studies. CalOpps (www.calopps.org) is a public sector job board for recruiting regular, temporary, and volunteer positions. ADMINISTRATIVE SERVICES DEPARTMENT HUMAN RESOURCES 190 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Classification and Compensation – Conduct classification studies and compensation surveys, update job descriptions as needed, and respond to outside requests for City wage and benefit information. Performance Management - Evaluate the features and design of the NEOGOV on-line Performance Appraisal System evaluation templates to determine if changes may be made to support users more efficiently and effectively. Recruitment and Selection – Conduct recruitment and selection processes in accordance with agreed upon scheduled target dates for regular, benefited and temporary at-will, not benefited positions. Staff Training – Coordinate AB1825 mandatory harassment training (required every two years by law and required within six months of hire of supervisory positions), management and supervisory workshops through the LCW consortium, and other training. Volunteer Saratoga Program – Increase opportunities and promotion efforts of the City’s “Volunteer Saratoga!” program, including outreach to the local schools. Salary Survey – Conduct salary survey with the City’s comparable cities and adjust pay ranges administratively based on the data collected in order to maintain Saratoga’s average pay position in the market for all classifications effective July 1, 2018. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Other Sources - - - - 15,235 - TOTAL REVENUES -$ -$ -$ -$ 15,235$ -$ EXPENDITURES Salaries and Benefits 250,470 262,838 270,085 272,881 267,871 289,226 Operating Expenditures Materials & Supplies 1,389 1,244 842 650 746 700 Fees & Charges 9,291 9,157 9,167 10,255 9,866 10,020 Consultants & Contract Services 11,999 10,808 10,669 13,100 10,550 13,400 Meetings, Events & Training 34,083 11,338 9,046 11,150 5,963 11,000 Total Operating Expenditures 56,762 32,547$ 29,724$ 35,155$ 27,125$ 35,120$ Internal Service Charges 30,178 29,833 32,673 35,001 35,001 35,751 TOTAL EXPENDITURES 337,410$ 325,218$ 332,482$ 343,037$ 329,997$ 360,097$ ADMINISTRATIVE SERVICES DEPARTMENT HUMAN RESOURCES 191 KEY SERVICES  Serve as Custodian of Records pursuant to Penal Code section 11102.2(b) requirements for the security, storage, administration, and destruction of employee criminal records furnished by the Department of Justice  Manage the Department of Motor Vehicles' Employer Pull Notice Program (EPN) including promoting driver safety by monitoring the driving records of employees who are required to drive a City vehicle  Develop, implement, and monitor compliance with human resources policies, monitor and maintain performance management and personnel recordkeeping systems, provide conflict resolution and performance management support services to managers and employees  Negotiate and administer Memorandum of Understandings with the City’s collective bargaining units  Maintain the City’s classification and compensation systems, administer benefits and benefit recordkeeping systems, provide customer service, and manage benefit contracts with third party administrators  Provide recruitment and selection services, complying with state and federal non -discrimination laws in the hiring process, including Equal Employment Opportunity (EEO), the American’s with Disability Act (ADA), and similar California statutes  Oversee employee educational goals through training and professional development programs, including tuition reimbursement for eligible full-time employees and legally mandated training such as harassment in the workplace  Manage the Employee Recognition Program, including special employee commendations, annual employee recognition luncheon, service awards, and individual and team awards  Administer the “Volunteer Saratoga” program, promoting volunteerism as an important part of providing excellent services to City residents HUMAN RESOURCES STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Administrative Services Director 0.10 0.10 0.10 0.10 0.10 Finance Manager - - - - - Accountant I/II - - - - - Accounting Technician/Lead - - - - - Human Resources Manager 0.90 0.90 0.90 0.90 0.90 Human Resources Technician 0.65 0.65 0.65 0.65 0.65 Information Technology Administrator - - - - - Information Technology Technician - - - - - TOTAL FTE's 1.65 1.65 1.65 1.65 1.65 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded HR Technician - - - - - Student Intern 320 320 - - - TOTAL ANNUAL HOURS 320 320 - - - *This schedule reflects FTEs as funded in the Human Resources Program. Portions of FTEs assigned to Internal Service Funds or other programs, are reflected in the appropriate FTE schedules. ADMINISTRATIVE SERVICES DEPARTMENT HUMAN RESOURCES 192 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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 Provide fair and proper administrative and personnel decisions that foster a proactive, responsible, and transparent government. Support transparency in government activites through providing timely reporting and/or responses to outside agencies. Provide effective and efficient employee benefit contract administration. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.8 6 6 8 7 2.2,500 314 716 548 600 3.81 76 69 75 75 4.191 150 235 254 250 5.$57,577 $50,000 $70,680 $62,000 $62,000 6.160 520 210 52 60 7.36 52 36 56 42 Number of meet and confer process hours: 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): Value of volunteer hours: Number of participants in Volunteer Saratoga program: ADMINISTRATIVE SERVICES DEPARTMENT ADMINISTRATIVE SERVICES 193 ADMINISTRATIVE SERVICES OVERVIEW The Administrative Services program was established effective with the FY 2014/15 budget to reorganize departmental duties and separate administrative oversight functions from the other distinctly organized functions within the Administrative Services Department. With the addition of the Finance Manager position to the department in mid -FY 2013/14, direct fiscal oversight duties transferred to the Finance Manager to allow the Director to focus on departmental leadership and strategic administrative matters, and to improve both departmental and citywide efficiencies. Under the Administrative Services program, efforts will focus 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. Activities will vary year by year as projects and duties are completed, and with various assignments in support of Council and City Manager initiatives and direction. BUDGET HIGHLIGHTS Notable Budget Changes:  None 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 ye ars. Additional efforts will focus on the management and tracking of financial documents and records, the development of budget and administrative management tools as well as the development of recession planning policies, an asset database, and assessment of internal service fund allocations. With the focus on high-level staff driven analytical, financial, and administrative management, budget requirements are minimal. This program does not generate revenues, and operating expenditures are limited to staffing costs and a small amount for operational supplies, training, and internal service charges. The FY 2017/18 budget includes a one-time allocation of $20,000 for a data collection or management tool or other resources associated with the implementation of the intranet, if needed. ADMINISTRATIVE SERVICES DEPARTMENT ADMINISTRATIVE SERVICES 194 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Cost Recovery Planning –This large, long-term project represents efforts to prepare the City for purchasing, financial tracking and reporting duties, both during, and after, an emergency. The focus will be on researching and preparing emergency policies and forms in conformance with claim reimbursement requirements. Fiscal and Administrative Policies – Staff will research, document, and ultimately develop a comprehensive set of City-wide fiscal and administrative policies. This project is very large and will take several years to complete. Financial Records Management – Finalize the conversion of historical and permanent paper financial records into digital format, and organize existing digital format files into a readily accessible directory library structure in the City’s Laserfiche program. Administrative Management Development – The City will implement an internal website system to provide readily accessible financial and administrative information and resources. Asset Database Development – Staff will work on the development of a fixed asset management tool to better track resources and funding requirements for budget preparation and information tracking purposes. Contract Management – Staff will work on the development of a contract database tool to track City-wide contract life cycles for comprehensive data collection and expiration dates. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits - 171,331 198,906 207,302 208,405 199,940 Operating Expenditures Materials & Supplies - 209 402 800 91 500 Fees & Charges - - 694 1,575 1,674 1,545 Consultants & Contract Services - - 6,400 21,700 - 20,000 Meetings, Events & Training - 882 572 2,725 1,577 3,300 Total Operating Expenditures - 1,091 8,068 26,800 3,342 25,345 Internal Service Charges - 13,960 15,911 17,785 17,785 19,035 TOTAL EXPENDITURES -$ 186,382$ 222,885$ 251,887$ 229,531$ 244,320$ ADMINISTRATIVE SERVICES DEPARTMENT ADMINISTRATIVE SERVICES 195 KEY SERVICES  Fiscal and administrative leadership  Policy and procedural development  Financial planning, long-range forecasting, and fiscal communication  Coordination, development, and ongoing improvement of the City’s annual budget process and document  Professional and technical support to other departments relative to financial and administrative matters  Implementation and improvements of administrative management functions and processes  Departmental records management ADMINISTRATIVE SERVICES STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Administrative Services Director - 0.70 0.70 0.70 0.70 Finance Manager - - - - - Accountant I/II - - - - - Accounting Technician/Lead - - 0.25 0.25 0.25 Human Resources Manager - - - - - Human Resources Technician - - - - - Information Technology Administrator - - - - - Information Technology Technician - - - - - TOTAL FTE's - 0.70 0.95 0.95 0.95 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Graphics Assistant - - 150 - - TOTAL ANNUAL HOURS - - 150 - - ADMINISTRATIVE SERVICES DEPARTMENT ADMINISTRATIVE SERVICES 196 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.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 from authorized use through establishing and updating policies and practices that regualate 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: 100%100%100%100%100% b.Governmental Finance Officer Association (GFOA) 'Certificate of Achievement of Excellence in Budgeting' awarded to the City: Yes Yes Yes Yes Yes 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 other Council goals. Prepare accurate budget workplans in compliance with standard budgeting practices. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.See Finance Yes Yes Yes Yes 2.See Finance Yes Yes Yes Yes 3.See Finance Yes Yes Yes Yes 4.See Finance Yes Yes Yes Yes Present Mid-year Budget Review at annual Council Retreat: Present Five Year forecast at annual Council Retreat: Update fiscal and administrative policies: Research and inform City Management of notable fiscal or administrative matters: ADMINISTRATIVE SERVICES DEPARTMENT OFFICE SUPPORT 197 OFFICE SUPPORT OVERVIEW The Office Support program accounts for photocopy equipment leases, copy supplies, postage machine lease, and postage and related fees on a centralized basis. Usage expenses are allocated back to the appropriate department for services and supplies utiliz ed, on a quarterly basis. As this program functions primarily as a funding mechanism, personnel are not assigned to this fund, therefore fiscal year objectives, a staffing schedule, and performance measures are not included in this program. BUDGET HIGHLIGHTS 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 on a daily basis coupled with rapidly advancing technology improvements and cost reductions seen with 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 MFD lease agreement in late 2013, the City entered into a new lease in February, 2014. As expected, the new machines are more advanced: they are higher quality, with increased functionality and reliability, and notably faster – while lease and service costs have decreased. Conversely, the City’s postage machine was purchased rather than leased under a different set of circumstances. Postage machines are primarily mechanical. The technology is simpler than MFDs and therefore less costly. Hence, they are typically stable and reliable pieces of equipment that do not require constant servicing. The postage machine was purchased in June, 2009, which included free maintenance service (repair services and postage rate upgrades) for the first year, and a service contract for subsequent years. The original five year maintenance agreement expired at the end of June 2014 but as the machine was operating satisfactorily, the postage machine was retained, and the maintenance agreement ren ewed on an annual basis for as long as practical. In FY 2016/17, the City was notified there would be a significant increase in the maintenance contract cost for the following year. This cost increase, coupled with the machine’s lifespan nearing the en dpoint, signaled staff that it was time to replace the postage machine. As staff is in the process of assessing new postage machines near year-end, replacement funding was included in the FY 2017/18 budget in case the purchase is delayed past fiscal year-end. The Internal Service Fund chargeback remains at $50,000, in line with anticipated operational costs. Additional revenues are generated from departmental reimbursement for postage usage. Operating expenditures remain consistent with the prior year, which includes contingency funding for the possible postage equipment replacement. ADMINISTRATIVE SERVICES DEPARTMENT OFFICE SUPPORT 198 GENERAL FUND REVENUES AND EXPENDITURES KEY SERVICES  Provide postage and photocopy equipment, as wells as other small office equipment, supplies, and services for citywide use  Monitor service levels and performance of copier and postage machines, maintaining and replacing equipment as needed 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 24,021 53,121 75,075 96,171 84,721 98,355 Total Beginning Fund Balance 24,021$ 53,121$ 75,075$ 96,171$ 84,721$ 98,355$ Revenues Charge for Services 10,028 13,183 10,703 12,000 9,868 10,000 Internal Service Charges 55,000 55,000 55,000 50,000 50,000 50,000 Total Revenues 65,028$ 68,183$ 65,703$ 62,000$ 59,868$ 60,000$ TOTAL SOURCE OF FUNDS 89,049$ 121,304$ 140,777$ 158,171$ 144,590$ 158,355$ USE OF FUNDS Expenditures Operating Expenditures Materials & Supplies 18,323 18,632 15,717 19,000 14,260 17,000 Fees & Charges 15,323 25,473 26,434 35,950 29,224 36,250 Consultants & Contract Services 2,282 2,124 2,456 3,500 2,751 3,500 Total Operating Expenditures 35,928$ 46,229$ 44,606$ 58,450$ 46,235$ 56,750$ Fixed Assets - - - 15,000 - 15,000 Internal Service Charges - - - - - - Total Expenditures 35,928$ 46,229$ 44,606$ 73,450$ 46,235$ 71,750$ Ending Fund Balance Unassigned 53,121 75,075 96,171 84,721 98,355 86,605 Total Ending Fund Balance 53,121$ 75,075$ 96,171$ 84,721$ 98,355$ 86,605$ TOTAL USE OF FUNDS 89,049$ 121,304$ 140,777$ 158,171$ 144,590$ 158,355$ ADMINISTRATIVE SERVICES DEPARTMENT INFORMATION TECHNOLOGY SERVICES 199 INFORMATION TECHNOLOGY SERVICES OVERVIEW Information Technology Services 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 desktop 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. The IT Services program supports the upgrade of existing information technology, as well as overseeing new technology initiatives. In meeting the City’s information technology needs, the IT Services program strives to continuously enhance and improve IT services, and to maintain and ensure a sound, secure, and reliable IT infrastructure. BUDGET HIGHLIGHTS Notable Budget Changes:  Internal service funding chargebacks increased by $50,000 to reflect growing technology services and costs maintained and paid for through the IT Services fund. The IT Services program is funded by service chargebacks for direct and citywide operational support to the City’s programs. With the ever-increasing appetite for technology services, systems, and security, IT costs continue to increase each year. Support fees to offset operational costs will rise by $50,000 in FY 2017/18, up to $575,000. Additional revenue comes from the Electric Vehicle Charging Station payments. Staff pursues operational savings wherever possible, however IT annual licenses and support expenditures increase most years, and additional technology services are added as the City’s technology needs increase or change. The integration of cloud-based solutions has reduced hardware costs while providing off-site capabilities and enhanced security. Additionally, the consolidation of multiple small servers into larger servers with a virtual server environment has eliminated some duplicate software and maintenance costs. Staff strives to utilize multi-year service plans when savings are provided to reduce overall costs. The expansion of the network to Saratoga Prospect Center, free Wi-Fi at Blaney Plaza, website software enhancements, multiple firewall and security systems, and annual security assessments, has added to program costs in the last couple of years. Beginning in FY 2014/15, additional costs appeared as a result of Microsoft’s elimination of the 2003 operating system support. This change required purchasing new software systems, which brought increased annual support fees. Beginning in FY 2017/18, with the integration of cloud based software, the City is transitioning to Microsoft 365. And, in this new era of intense cybersecurity protection requirements, ongoing IT Security Audits will identify improvements to be made, which will likely require additional funding needs each year. The breadth of knowledge and expertise needed for the full scope of IT professional and technical support the City requires necessitates the City contract for on-demand high-level assistance with specialized and emerging technology training, as well as for day-to-day and emergency operations backup as needed. The City maintains an annual contract with an IT consultant for this purpose. The IT consultant can draw upon multiple staff in their firm who have specialized training with advanced skills to assist in the implementation of new or high-level technology projects. The consultants also support and train the City’s IT staff on new technology as needed. While there are variations in support and license fees from year to year, the overall operating budget remains fairly steady. Increases are primarily limited to staffing costs stemming from a position realignment and step increases. ADMINISTRATIVE SERVICES DEPARTMENT INFORMATION TECHNOLOGY SERVICES 200 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Network Security Assessment – Beginning in FY 2017/18, network security assessments will be conducted on a quarterly basis in an effort to conform to the Payment Card Industry (PCI) Data Security Standards (DSS) and pass compliance audits. The identification of potential security vu lnerabilities on City’s data network will be addressed on an ongoing basis. Online Permit Payments – With the completion of the IVR Implementation, the City will begin to address the next phase of the TRAKiT upgrade: to allow public access to secure on line payments for permits. Website Upgrade –IT will work with the website development team to complete the improved website design, structure, and implementation plan. IT will oversee the upgrades back-end requirements. Intranet Implementation – Phase II of the Website Upgrade will focus on the development of an Intranet. This new system will provide internal users with a centralized information and form center to improve accessibility and efficiency. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 281,284 262,069 260,322 274,223 274,223 308,073 Total Beginning Fund Balance 281,284$ 262,069$ 260,322$ 274,223$ 274,223$ 308,073$ Revenues Other Sources 3,488 5,803 6,485 6,500 6,058 5,600 Internal Service Charges 400,000 425,000 475,000 525,000 525,000 575,000 Total Revenues 403,488$ 430,803$ 481,485$ 531,500$ 531,058$ 580,600$ TOTAL SOURCE OF FUNDS 684,772$ 692,872$ 741,807$ 805,723$ 805,281$ 888,673$ USE OF FUNDS Expenditures Salaries and Benefits 237,911 248,221 244,289 293,394 259,199 295,158 Operating Expenditures Materials & Supplies 9,754 11,141 4,271 11,400 4,506 11,450 Fees & Charges 14,356 15,376 21,891 28,875 27,287 29,015 Consultants & Contract Services 123,217 115,672 130,605 198,730 140,135 192,785 Meetings, Events & Training 1,160 2,625 3,196 6,500 2,416 4,000 Total Operating Expenditures 148,486 144,813 159,962 245,505 174,344 237,250 Fixed Assets - - - - - - Internal Service Charges 36,305 39,516 63,332 63,666 63,666 67,317 Total Expenditures 422,703$ 432,550$ 467,583$ 602,565$ 497,209$ 599,725$ Ending Fund Balance Unassigned 262,069 260,322 274,223 203,159 308,073 288,947 Total Ending Fund Balance 262,069$ 260,322$ 274,223$ 203,159$ 308,073$ 288,947$ TOTAL USE OF FUNDS 684,772$ 692,872$ 741,807$ 805,723$ 805,281$ 888,673$ ADMINISTRATIVE SERVICES DEPARTMENT INFORMATION TECHNOLOGY SERVICES 201 Technology & Equipment Management – IT staff will continue 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 the City’s infrastructure is up-to-date, cost-effective, and secure from cyber threats. KEY SERVICES  Maintain and support the City’s information software systems, including the financial system, development permitting system, class and rental registration system, Laserfiche document management system, agenda management system, video streaming, and other City systems  Maintain, support, repair, and upgrade the City’s servers  Maintain and support the City’s video streaming, internet, voicemail, wireless and telecommunication systems  Maintain, support, repair, upgrade, assist, and educate staff on system usage, desktop computers, printers, and technology accessories  Provide ongoing network maintenance, security, and support  Maintain and enhance the City’s website and AM radio station to effectively provide public access to City information  Oversee technology upgrades as well as lead new information technology initiatives INFORMATION TECHNOLOGY SERVICES STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Administrative Services Director 0.10 0.10 0.10 0.10 0.10 Finance Manager - - - - - Accountant I/II - - - - - Accounting Technician/Lead - - - - - Human Resources Manager - - - - - Human Resources Technician - - - - - Information Technology Administrator 1.00 1.00 1.00 1.00 1.00 Information Technology Technician 1.00 1.00 1.00 1.00 1.00 TOTAL FTE's 2.10 2.10 2.10 2.10 2.10 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded IT Technician - - - - - TOTAL ANNUAL HOURS - - - - - ADMINISTRATIVE SERVICES DEPARTMENT INFORMATION TECHNOLOGY SERVICES 202 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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%98%99%99% b.Percent of time network remains available during normal business hours: 98%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: 4 6 8 5 5 b.Number of new technology sytems or equipment for which oversight and support was provided by IT staff: 9 7 6 6 6 3. a. Staff has current knowledge of cybersecurity alerts and product vulnerabilities: Yes Yes Yes Yes Yes b.Number of times per year firewall tested for security:Not Available Not Available 2 2 2 c.Security standards meet PCI Compliance Requirements:No Yes Yes Yes In Progress 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. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.88 109 106 121 121 2.27 36 37 41 42 3.20 24 24 25 26 4.59 60 59 60 60 5.26 20 38 31 31 6.24 21 20 20 20 7.77 75 76 79 82 8.23 22 23 26 26Number of cell phones serviced and maintained: Number of network servers maintained: Number of network copiers, printers, plotters, scanners, fax machines, and postage machines maintained: Number of system users supported: Number of IT software applications monitored and maintained: Number of laptop/tablet systems maintained: Number of landlines serviced and maintained: Number of desktop systems maintained: ADMINISTRATIVE SERVICES DEPARTMENT INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT 203 IT EQUIPMENT REPLACEMENT OVERVIEW The Information Technology Equipment Replacement Fund program provides for a consistent level of funding for the replacement of desktop computers and monitors, servers, laptops, printers, and various other technology equipment on an ongoing basis. Staff maintains a replacement schedule for City IT equipment, with estimated life plans and calculated replacement costs to determine replacement needs each year. 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. Initially, IT equipment is purchased by the requesting department. If the equipment will be replaced on an ongoing basis, the IT Services department in tegrates the equipment into the replacement schedule list and oversees the purchase and replacement of the item. The department’s replacement charges are adjusted to account for the ongoing cost of the equipment. Due to rapid advances in technology, the cost of replacement equipment may vary considerably from the cost of the original equipment, or the equipment becomes obsolete and replaced with different technology. In recent history however, IT equipment costs have remained fairly consistent in price, while the technology continues to advance. As a result, ongoing replacement costs are beginning to stabilize. BUDGET HIGHLIGHTS Beginning in FY 2015/16, a more comprehensive replacement funding strategy was integrated into the budget. Departmental software systems are now included in the replacement schedules rather than asking for funding sporadically through the Capital Improvement Plan process. Per Council’s direction, the IT replacement fund now incorporates system replacements into the annual budget allocations. This helps to more accurately account for all IT related operational costs of services. As a result of this change, the service chargeback increased significantly – from $65,000 per year to $125,000 per year. With additional hardware, software, and rising costs over the last two years, the service chargeback is now at $150,000. Allocation charges to each program are calculated by tracking citywide equipment costs and lifespan, and a weighted average cost determines how much is to be se t aside each year in order to have funding available for replacements at the time the equipment’s lifespan is over. Chargebacks to the appropriate department “owner” is reflected in this fund as revenue, and the IT equipment scheduled for replacement for the current fiscal year is shown as a program expenditure. The following IT Equipment Replacement Schedule identifies the equipment to be replaced in FY 2017/18. Program expenditures will vary year by year as software and equipment lifespan cycles vary, and are independent of the annual chargeback amount. Additionally, funding requirements adjust over the years as replacement needs are revised, projected costs are more firmly determined, or equipment functionality extends past the initial lifespan projection. Planned replacements for the budget year total $89,800 and include: $18,500 for desktop and $3,000 for laptop replacements, $21,000 for network server replacements, $9,000 for network equipment, $5,000 for a plotter printer, $7,000 for UPS battery backups, and $26,300 for MS Office Suite and Adobe software. ADMINISTRATIVE SERVICES DEPARTMENT INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT 204 GENERAL FUND REVENUES AND EXPENDITURES KEY SERVICES  Accumulate and provide annual funding for technology asset replacement  Assess IT equipment for proper replacement timing  Identify and procure best solution equipment 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 156,318 152,788 194,101 274,339 274,339 315,299 Total Beginning Fund Balance 156,318$ 152,788$ 194,101$ 274,339$ 274,339$ 315,299$ Revenues ISF Charges 55,000 65,000 125,000 125,000 125,000 150,000 Total Revenues 55,000$ 65,000$ 125,000$ 125,000$ 125,000$ 150,000$ Operating Transfers Transfer In from General Fund - - - - - - Total Operating Transfers In -$ -$ -$ -$ -$ -$ TOTAL SOURCE OF FUNDS 211,318$ 217,788$ 319,101$ 399,339$ 399,339$ 465,299$ USE OF FUNDS Expenditures Operating Expenditures Materials & Supplies 58,530 23,687 44,762 136,280 84,040 89,800 Fees & Charges - - - - - - Consultants & Contract Services - - - - - - Meetings, Events & Training - - - - - - Total Operating Expenditures 58,530 23,687 44,762 136,280 84,040 89,800 Fixed Assets - - - - - - Internal Service Charges - - - - - - Total Expenditures 58,530$ 23,687$ 44,762$ 136,280$ 84,040$ 89,800$ Operating Transfers Transfer Out to General Fund - - - - - - Transfer Out to CIP - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned 152,788 194,101 274,339 263,059 315,299 375,499 Total Ending Fund Balance 152,788$ 194,101$ 274,339$ 263,059$ 315,299$ 375,499$ TOTAL USE OF FUNDS 211,318$ 217,788$ 319,101$ 399,339$ 399,339$ 465,299$ ADMINISTRATIVE SERVICES DEPARTMENT INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT 205 IT EQUIPMENT REPLACEMENT SCHEDULE FY 2017/18 IT EQUIPMENT SCHEDULED Standard Desktops $ 13,500 Graphics Desktops 5,000 Laptops 3,000 Small Server 5,000 Mid-Size Server 16,000 Network Switches 6,000 Firewalls 3,000 Plotter Printer 5,000 Desktop Batteries 2,000 Server Batteries 5,000 Productivity Software (MS Office Suite, Adobe) 26,300 TOTAL IT EQUIPMENT REPLACEMENT BUDGET $ 89,300 ADMINISTRATIVE SERVICES DEPARTMENT 206 COMMUNITY DEVELOPMENT DEPARTMENT 207 DEPARTMENT OVERVIEW The Community Development Department guides the physical growth of the City and preserves the community’s quality of life by administrating zoning regulations and providing building and inspection services, code enforcement, arborist services, and ongoing advanced planning activities that maintain the City’s General Plan. The Department also supports the City’s business environment through participation and funding of economic development activities. The Saratoga community provides input to the Department through the Planning Commission and Heritage Preservation Commission, and by citizen involvement in Commission and Council reviews of the General Plan and various specific plans. The Department’s staff supports community participation through development review services, commission meeting preparation and support, and public hearings. DEPARTMENT OBJECTIVES The Community Development Department directly supports two of the Council’s Strategic Goals through implementation of the department’s objectives, as listed below. Performance measures provide feedback on the Department’s progress towards meeting these objectives. Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives  Maintain staff’s responsiveness and accountability to the community  Enhance transparency in departmental processes  Maintain community partnerships through support and engagement with business, residents, and all types of community groups  Encourage civic engagement and participation through the Planning Commission and Heritage Preservation Commission processes Council Strategic Goal Community Heritage: Honor Saratoga's heritage by preserving significant historic assets. Department Objectives  Administer and enforce development policies and standards to maintain a high quality of life for residents and the business community  Protect Saratoga’s natural beauty COMMUNITY DEVELOPMENT DEPARTMENT 208 BUDGET HIGHLIGHTS The Bay Area economy began to experience a gradual slowing of development activity due to uncertainty related to a new administration, regulatory changes at the Federal level and one of the wettest winter in State history. Development activity for remodeling and improvements of Saratoga property owners has tracked with this broader Statewide and Bay Area trends. This decrease in development activity is reflected in the current year’s lower estimated total departmental revenue of $1.9M instead of the FY 2016/17 adjusted budget amount of $2.3M. Staffing levels in the Community Development Department decreased from 13.00 to 12.50 FTEs with the reclassification of the Sr. Building Inspector to an Associate Engineer that is shared 50/50 with Public Works. The other staff positions remain constant with the hiring of an Office Specialist III, Planner II and Senior Planner in FY 2016/17. The City utilized temporary contract inspection services in FY 2016/17 to reduce the wait times for building permit inspection requests. With wait times reduced, this funding will decrease in FY 2017/18; however, contingency funding was budgeted for unanticipated increases in inspection requests or time off requests. Temporary staff funding is included for CDD and PW to share a part-time GIS/Graphics Technician. For CDD, the GIS/Graphics Technician will assist with the on-going needs related to the next phase of the City’s permit software upgrade and GIS implementation. A temporary Project Manager will continue to be funded to assist with the Heritage Preservation Commission’s (HPC) approved workplan and the review of development applications that cannot be completed by regular planning staff. The department will continue training efforts for all new staff to rebuild the department knowledge base, skillsets and work capacity, implement administrative and process improvements, and u pgrade existing permitting software. These efforts will increase overall efficiency of the department and enhance customer service for City residents and businesses. COMMUNITY DEVELOPMENT DEPARTMENT 209 GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES – BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 1,344,008 1,227,554 1,305,524 1,333,650 1,203,790 1,154,850 Charge for Services 875,152 864,804 949,373 959,900 774,321 814,000 Interest Income - - - - - - Other Sources 776 2,755 3,634 3,000 2,514 4,500 TOTAL REVENUES 2,219,935$ 2,095,113$ 2,258,530$ 2,296,550$ 1,980,624$ 1,973,350$ EXPENDITURES Salaries and Benefits 1,638,097 1,523,194 1,624,144 1,958,794 1,804,304 1,893,643 Operating Expenditures Materials & Supplies 14,995 20,765 16,917 22,050 20,602 20,350 Fees & Charges 19,968 20,940 23,409 25,845 22,107 27,897 Consultant & Contracts 155,458 140,169 153,107 183,700 78,738 90,125 Meetings, Events, Training 5,158 8,683 7,038 13,750 5,954 10,550 Total Operating Expenditure 195,579 190,557 200,471 245,345 127,401 148,922 Fixed Assets - - - - - - Internal Service Charges 348,034 372,929 368,244 392,356 392,356 417,022 TOTAL EXPENDITURES 2,181,710$ 2,086,680$ 2,192,859$ 2,596,495$ 2,324,061$ 2,459,587$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Development Services 955,477 909,462 933,024 929,692 879,621 851,184 Advanced Planning 254,409 113,311 119,583 167,090 146,160 152,554 Code Compliance 52,643 127,653 161,859 247,530 195,952 240,975 Building Inspection Services 919,181 936,255 978,393 1,252,182 1,102,328 1,214,874 TOTAL GENERAL FUND 2,181,710$ 2,086,680$ 2,192,859$ 2,596,495$ 2,324,061$ 2,459,587$ COMMUNITY DEVELOPMENT DEPARTMENT 210 DEPARTMENTAL ORGANIZATION CHART Community Development Director 1.0 FTE Sr. Planner 1.0 FTE Permit Technician 1.0 FTE Office Specialist 1.0 FTE Sr. Planner 1.0 FTE Planner 1.0 FTE Code Compliance Officer 1.0 FTE Sr. Arborist 1.0 FTE Associate Engineer .50 FTE Building Inspector 1.0 FTE Building Inspector 1.0 FTE Administrative Assistant 1.0 FTE Plan Check Engineer 1.0 FTE COMMUNITY DEVELOPMENT DEPARTMENT 211 COMMUNITY DEVELOPMENT DEPARTMENT STAFF COMMUNITY DEVELOPMENT STAFF – BY PROGRAM City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Community Development Director 1.00 1.00 1.00 1.00 1.00 Senior Planner 1.00 1.00 1.00 2.00 2.00 Planner I/II 2.00 2.00 2.00 1.00 1.00 Senior Arborist 1.00 1.00 1.00 1.00 1.00 Plan Check Engineer 1.00 1.00 1.00 1.00 1.00 Building Official - - - - - Sr. Building Inspector/Plan Checker 1.00 1.00 1.00 1.00 - Associate Engineer - - - - 0.50 Building Inspector 2.00 2.00 2.00 2.00 2.00 Permit Technician 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 Office Specialist III 1.00 1.00 1.00 1.00 1.00 Code Compliance Officer - - - 1.00 1.00 TOTAL FTE's 12.00 12.00 12.00 13.00 12.50 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern - 320 480 320 - GIS/Graphics Tech - - - - 499 Office Specialist III 800 800 940 - - Project Manager - - - 1,335 960 TOTAL ANNUAL HOURS 800 1,120 1,420 1,655 1,459 City Staff by Program 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded Development Services 4.85 4.60 4.60 4.25 3.55 Advanced Planning 0.65 0.70 0.70 0.70 0.75 Code Compliance 0.70 0.75 0.75 1.35 1.45 Building & Inspections 5.80 5.95 5.95 6.70 6.75 TOTALS 12.00 12.00 12.00 13.00 12.50 COMMUNITY DEVELOPMENT DEPARTMENT 212 COMMUNITY DEVELOPMENT DEPARTMENT DEVELOPMENT SERVICES 213 DEVELOPMENT SERVICES OVERVIEW Applicants for building and other development permits are required to comply with City codes, plans, and policies, in order to obtain the Planning Department’s approval of their projects. To help facilitate development projects, Development Services assists 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, or geological reviews and assessments may also be required. BUDGET HIGHLIGHTS Notable Budget Changes  Temporary staff funding for summer interns was replaced with funding for a temporary GIS/Graphics Technician to support on-going needs related to the permit software upgrade and GIS implementation Development Services revenues appear to have leveled off from the wave of activity during the post - recession home improvement resurgence. Design review applications for large remodels, or the replacement of existing homes, which make up the bulk of development activity have slowed, as well as Tree Removal Permits and Conditional Use Permits for new businesses. As a result, FY 2016/17 revenues are significantly below budget, and FY 2017/18 budgeted revenues reflect this anticipated ongoing lower level of activity. Planned expenditures were lowered where appropriate. Staffing costs decreased with a reallocation of staff, and planned GIS software usage was downgraded. However, appropriations for contract planner services and temporary staff continue to be funded to assist with meeting anticipated development activity and the department’s workplan. Major assignments from the Department’s Work Plan, include: Completion of Phase I and II of the Saratoga Village Policy & Design Guidelines Community Outreach Process, Preparation of the Saratoga Village Design Guidelines and required implementation actions; Initiation of the General Plan Comprehensive Updates for the Land Use, Circulation, and Open Space Element; Review of the Tree Ordinance; Creating Outreach and Educational Materials; Implementation of the Historical Preservation Committee’s Historical Markers workplan item, and the Annual Code Update. The City’s economic development programs will also continue to be administered through Development Services in FY 2017 /18, along with the Village Façade Improvement program, assisting with Chamber of Commerce efforts, Destination Saratoga, and support for the Planning and Heritage Preservation Commissions. COMMUNITY DEVELOPMENT DEPARTMENT DEVELOPMENT SERVICES 214 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Code Updates – Each year staff identifies sections of the City Code that need updating to remove inconsistencies, code which is difficult to interpret, or code requiring revisions to reflect changes in state law (e.g. zoning definitions). Heritage Preservation Commission – Staff will work closely with the Heritage Preservation Commission to assist them in identifying and prioritizing properties to include on the City’s list of Historic Landmarks and on a Historical Marker Program. This year’s workplan includes the designation of at least two Historical Markers. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 72,766 53,093 48,108 45,500 35,409 41,700 Charge for Services 487,187 477,962 435,508 479,900 440,895 439,000 Other Sources 776 2,255 1,534 1,000 1,657 1,500 TOTAL REVENUES 560,730$ 533,310$ 485,150$ 526,400$ 477,961$ 482,200$ EXPENDITURES Salaries and Benefits 741,411 646,717 646,929 685,137 680,917 608,370 Operating Expenditures Materials & Supplies 10,454 13,256 12,184 12,350 9,693 11,100 Fees & Charges 8,081 5,811 8,982 11,035 7,251 11,667 Consultant & Contract Services 21,406 78,448 99,687 39,550 1,268 26,800 Meetings, Events & Training 3,425 5,876 3,948 5,750 4,622 5,750 Total Operating Expenditures 43,366 103,391 124,801 68,685 22,834 55,317 Fixed Assets - - - - - - Internal Service Charges 170,700 159,353 161,294 175,870 175,870 187,497 TOTAL EXPENDITURES 955,477$ 909,462$ 933,024$ 929,692$ 879,621$ 851,184$ COMMUNITY DEVELOPMENT DEPARTMENT DEVELOPMENT SERVICES 215 KEY SERVICES Planning Services  Provide on-demand services at front counter, via telephone, and through email requests  Provide support to the Planning Commission, Heritage Preservation Commission, and City Council  Provide staff support to Public Works Department for City construction projects and CIP environmental assessments 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  Tree removal and “After the Fact” tree removal permits Arborist Services  Assist planners with review of project designs 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 through phone and email for general information on tree pruning, selection, care, protection, and tree removal criteria DEVELOPMENT SERVICES STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Community Development Director 0.50 0.50 0.50 0.50 0.40 Senior Planner 0.65 0.60 0.60 1.20 0.70 Planner I/II 1.80 1.60 1.60 0.85 0.80 Senior Arborist 0.90 0.90 0.90 0.90 0.80 Plan Check Engineer - - - - - Building Official - - - - - Sr. Building Inspector/Plan Checker - - - - - Associate Engineer - - - - - Building Inspector - - - - - Permit Technician 0.10 0.10 0.10 0.05 0.05 Administrative Assistant 0.90 0.90 0.90 0.85 0.80 Office Specialist III - - - - - Code Compliance Officer - - - - - TOTAL FTE's 4.85 4.60 4.60 4.35 3.55 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern - 320 480 160 - GIS/Graphics Tech - - - - 499 Office Specialist III 800 800 940 - - Project Manager - - - 960 960 TOTAL ANNUAL HOURS 800 1,120 1,420 1,120 1,459 COMMUNITY DEVELOPMENT DEPARTMENT DEVELOPMENT SERVICES 216 PERFORMANCE OBJECTIVES & MEASURES ACTIVITY & WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actual 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: 96%98%99%100%99% 2. a.95%98%100%100%100% b.15%10%0%0%5% c.Percentage of applications appealed to the Planning Commission or City Council: 1%2%1%3%1% d.50%100%50%0%50% 3. a.Percent of notices sent within 10 days of Planning Commission meetings: 100%100%100%100%100% Process applications to Planning Commission within an average of 4 weeks of deeming the application complete: Enhance community awareness of land use projects. Facilitate the development of land and structures 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 applications upheld by the City Council: 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actual Budget 1.275 240 200 240 220 2.370 360 509 380 400 3.80 70 82 75 80 4.20 20 18 18 20 5.15 10 10 10 10 6.5 2 4 4 4 7.20 10 10 10 10 Number of planning projects processed: Number of tree removal permits processed: Number of Arborist plan reviews: Number of Planning Commission Hearings: Number of Plannning Commission Study Sessions: Number of public input meetings for citywide programs: Number of complex projects (General Plan, amendments/ rezonings, planned developments, environmental review): COMMUNITY DEVELOPMENT DEPARTMENT ADVANCED PLANNING 217 ADVANCED PLANNING OVERVIEW The Advanced Planning program focus is 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 develo pment in the plan area, with aspects such as detailed land use, design guidelines, and implementation strategies. As an example, the City of Saratoga has established a Specific Plan for the hillside areas. In order to keep the plans current, at a minimum, one element of the General Plan and/or a Specific Plan is to be updated each year. BUDGET HIGHLIGHTS Notable Budget Changes:  Staff activities expected to shift mid-year from Saratoga Village Policy Update to coordination of Comprehensive General Plan Elements Update. Advanced Planning program revenue provides funding for a combination of in -house staff work and consultant services. Revenues are loosely tied to program expenditures through current year staff activity in the operating budget, and longer term consultant project work through a capital project. A more concrete funding methodology was implemented in FY 2014/15 to ensure Advanced Planning Fee revenue remains dedicated for this purpose by redirecting $100,000 of the General Plan Update Fees to the General Plan capital project. The capital project is used to fund consultant services for consultant driven work over multiple years, on an as needed basis. The reduced operating revenue is sufficient to cover annual operating expenses. Advanced Planning revenue comes from an add-on surcharge on planning fees. As FY 2016/17 planning fees have declined from the prior year, Advanced Planning revenue also decreased. With the expectation that this lower activity will continue into FY 2017/18, revenues were budgeted at these lower levels. On the expenditure side, Advanced Planning work is primarily staff time for administrative work on the General Plan, code, and zoning updates, as well as ongoing and anticipated annexations, and updates to design guidelines. With the Community Development Department’s workplan gearing up to update the General Plan, staff time was reallocated, resulting in a slightly lower cost. Operating expenditures reflect a minor increase in support of the General Plan update work to be undertaken in FY 2017/18. COMMUNITY DEVELOPMENT DEPARTMENT ADVANCED PLANNING 218 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Village Policy Update – Staff will be working closely with the City Manager’s Office to complete the work on Phase I and II of the Saratoga Village Policy & Design Guidelines Community Outreach Process, Preparation of the Saratoga Village Design Guidelines and any required implementation actions. General Plan Elements Update (Land Use, Circulation, and Open Space/Conservation) – Staff will begin work on coordinating the updates for the Land Use, Circulation, and Open Space/Conservation Elements. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 228,523 156,165 191,186 160,000 179,999 160,000 Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES 228,523$ 156,165$ 191,186$ 160,000$ 179,999$ 160,000$ EXPENDITURES Salaries and Benefits 126,746 93,089 98,492 142,974 124,439 126,448 Operating Expenditures Materials & Supplies - - - 600 39 1,250 Fees & Charges 1,624 1,439 1,314 1,860 526 1,950 Consultant & Contract Services 110,286 - - 500 - 500 Meetings, Events & Training - - - - - - Total Operating Expenditures 111,910 1,439 1,314 2,960 565 3,700 Fixed Assets - - - - - - Internal Service Charges 15,753 18,783 19,777 21,156 21,156 22,406 TOTAL EXPENDITURES 254,409$ 113,311$ 119,583$ 167,090$ 146,160$ 152,554$ COMMUNITY DEVELOPMENT DEPARTMENT ADVANCED PLANNING 219 KEY SERVICES  Coordinate preparation of anticipated General Plan Element Updates  Maintain and apply General Plan and Specific Plan updates to development processes  Develop administrative policies, plans, and ordinances in coordination with Advance Planning updates  Prepare Department of Housing and Community Development annual report on General Plan ADVANCED PLANNING STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Community Development Director 0.30 0.30 0.30 0.20 0.25 Senior Planner 0.25 0.30 0.30 0.40 0.30 Planner I/II 0.10 0.10 0.10 0.05 0.10 Senior Arborist - - - - - Plan Check Engineer - - - - - Building Official - - - - - Sr. Building Inspector/Plan Checker - - - - - Associate Engineer - - - - - Building Inspector - - - - - Permit Technician - - - - - Administrative Assistant 0.05 0.10 Office Specialist III - - - - - Code Compliance Officer - - - - - TOTAL FTE's 0.65 0.70 0.70 0.70 0.75 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern - - - 160 - GIS/Graphics Tech - - - - - Office Specialist III - - - - - Project Manager - - - 375 - TOTAL ANNUAL HOURS - - - 535 - COMMUNITY DEVELOPMENT DEPARTMENT ADVANCED PLANNING 220 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actual Budget 1. 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 Yes Yes Yes 2. a.Housing Element:No Yes Yes Yes Yes b.Land Use Element:Yes No No No No c.Circulation and Transportation Element:Yes Yes Yes Yes No d.Conservation Element:Yes No No No No e.Open Space Element:Yes No No No No f.Noise Element:Yes Yes Yes Yes Yes g.Safety Element:Yes Yes Yes Yes Yes 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. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actual Budget 1.9 6 4 4 4 2.3 1 0 0 0 3.1 1 0 0 0 4.0 1 0 0 0 Number of ordinances completed (multiple section updates): General Plan Elements updated: Number of General Plan amendments requested: Annexation applications in process: COMMUNITY DEVELOPMENT DEPARTMENT CODE COMPLIANCE 221 CODE COMPLIANCE OVERVIEW The City’s Code Compliance program supports community health, safety, and welfare through zoning, planning, business license, and other regulations as reflected in the City Code. Compliance is achieved through education, enforcement of laws and codes, and through maintaining the safety and livability of neighborhoods for the citizens and business community of Saratoga. Program staff works closely with other City departments and various public agencies, including the Santa Clara County Sheriff’s Office, which handles law enforcement duties for the City. BUDGET HIGHLIGHTS Notable Budget Changes:  No significant changes Code Compliance revenues are mostly limited to fees from the administration of various special activity permits, such as Special Event and Noise Exception Permits, Massage Permits, and Solicitor Permits. Only rarely does the City issue administrative citations to obtain compliance with City Code. Code Compliance expenditures are not fully covered by fees or permit revenues. For those code compliance cases which are not resolved through staff efforts or media tion, and a fine or enforcement action is issued, the City may need to utilize the services of a Hearing Officer. The Hearing Officer is a contract attorney, paid by hours of service, who will conduct a hearing in the case 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. While the City has not had a need for a hearing officer for many years, two Code Enforcement cases required the services of an Administrative Hearing Officer in FY14/15. No cases were required in FY 2015/16 or FY2016/17, but funding levels for the Hearing Officer services is being maintained at $6,000 to reflect any anticipated Code Enforcement efforts . The Code Compliance program is managed and supervised by the Community Development Director with assistance from the City Arborist, Building staff and Planning staff. The cost of staff time, comprised of salaries, benefits, and internal services charges, make up the majority of the expenditures. Only a minimal amount is needed for materials, supplies, and postage. COMMUNITY DEVELOPMENT DEPARTMENT CODE COMPLIANCE 222 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Abatement Priorities – Prioritize responses to code compliance cases based on the Council’s adopted priorities and procedures. Program Priorities – Development of new City Code Compliance Procedures. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 7,650 10,225 7,775 5,500 9,575 6,300 Charge for Services - - - - - - Other Sources - 500 2,100 2,000 857 3,000 TOTAL REVENUES 7,650$ 10,725$ 9,875$ 7,500$ 10,432$ 9,300$ EXPENDITURES Salaries and Benefits 44,234 93,944 103,753 184,954 138,545 186,954 Operating Expenditures Materials & Supplies 299 41 641 500 2,282 1,600 Fees & Charges 72 205 159 250 809 1,080 Consultant & Contract Services - 6,943 31,623 35,000 27,937 20,000 Meetings, Events & Training - - - 1,000 553 800 Total Operating Expenditures 371 7,188 32,422 36,750 31,580 23,480 Fixed Assets - - - - - - Internal Service Charges 8,038 26,520 25,684 25,826 25,826 30,541 TOTAL EXPENDITURES 52,643$ 127,653$ 161,859$ 247,530$ 195,952$ 240,975$ COMMUNITY DEVELOPMENT DEPARTMENT CODE COMPLIANCE 223 KEY SERVICES  Issue Special Event and Noise Exception Permits  Administer masseuse and solicitor permit programs  Enforce City regulations while educating and increasing the awareness of residents, businesses, and property owners about the City’s regulations  Receive and maintain status on all violation complaints; respond to, investigate, and abate leg itimate complaints  Resolve complex code and zoning violations; and administer citation appeals CODE COMPLIANCE STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Community Development Director 0.05 0.05 0.05 0.05 0.10 Senior Planner - - - 0.05 - Planner I/II - 0.10 0.10 - - Senior Arborist 0.05 0.05 0.05 - 0.05 Plan Check Engineer - - - - - Building Official - - - - - Sr. Building Inspector/Plan Checker - 0.25 0.25 - - Associate Engineer - - - - - Building Inspector 0.50 0.20 0.20 0.10 0.10 Permit Technician - - - 0.05 - Administrative Assistant 0.10 0.10 0.10 0.10 0.10 Office Specialist III - - - - 0.10 Code Compliance Officer - - - 1.00 1.00 TOTAL FTE's 0.70 0.75 0.75 1.35 1.45 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern - - - - - GIS/Graphics Tech - - - - - Office Specialist III - - - - - Project Manager - - - - - TOTAL ANNUAL HOURS - - - - - COMMUNITY DEVELOPMENT DEPARTMENT CODE COMPLIANCE 224 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actual Budget 1. a. Percentage of complaints receiving a response within 48 hours of receipt: 60%70%90%75%90% b. Average open to close cycle time for formal complaints: Not Available Not Available Not Available 4 weeks 4 weeks c.Percent of violations resolved through voluntary compliance: Not Available Not Available Not Available 90%90% 2. a.Annual number of Solicitor Permits issued:10 20 11 6 5 b.Annual number of Noise Exemption permits issued:55 40 35 43 30 Ensure code compliance staff is responsive and accountable to the community. Ensure compliance with City regulations for permitted activities. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actual Budget 1.75 70 100 180 150 2.0 5 0 0 2 3.5 5 2 4 6 4.Not Available Not Available Not Available 523 120 Annual number of new code enforcement cases: Annual number of Code Enforcement cases investigated or mitigated/closed: Total number of Administrative Citations: Cases requiring City Attorney review: COMMUNITY DEVELOPMENT DEPARTMENT BUILDING & INSPECTION SERVICES 225 BUILDING & INSPECTION OVERVIEW The Building & Inspection Services program 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 assists applicants with information concerning building regulations, disability access regulations, and other State and local ordinances, and provides plan check services in compliance with Uniform Building Codes. Staff also maintains permit tracking and plan check systems, inspects commercial and residential buildings under construction, and reviews grading plans and performs grading inspections for construction projects with significant earthwork activity. BUDGET HIGHLIGHTS Notable Budget Changes:  Budgeted revenue levels were reduced in line with FY 2016/17 estimated actuals  .50 FTE of staff time is being reallocated from Building & Inspection Services to Public Works Building & Inspection Services revenue comes from building permits and plan checking fees. Fees are calculated based on the construction valuation of the project. Budgeted amounts are derived from an expected level of activity based on recent activity, with adjustments for additional funding if large projects are in process. FY 2017/18 revenues are expected to align with FY 2016/17’s lower permit fee levels. Budgeted staffing in the Building Division reflects the reassignment of the Sr. Building Inspector/Plan Checker to Associate Engineer, with half of the position’s FTE shifted to Public Works General Engineering and Streets Program to assist with engineering inspections, and other needs such as encroachment permits in the Engineering Department. Building inspection and plan checking duties will utilize contract services as needed. The plan checking and inspection contract services budget was reduced from $100,000 down to $40,000 for FY 2017/18 as the activity level is expected to be manageable. The building plan check consultants, who are state credentialed Certified Building Officials, currently serve as the City’s Chief Building Official for any building code related inquiries or required determinations. Overall, with this change alone, budgeted expenditures dropped significantly. Ongoing training in current codes, policies and procedures is essential to maintaining quality building and code enforcement activities. Budgeted funding for current certifications and training for new certifications such as property maintenance, housing, and disaster response provides staff with the ability to meet these expectations. The remaining expenditure budget includes costs for meetings, code development hearings and annual business meetings for ICC and the California Association of Building Officials. COMMUNITY DEVELOPMENT DEPARTMENT BUILDING & INSPECTION SERVICES 226 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES TRAKiT Building and Permit System – Continue training and efficiency building on the new TRAKiT system which links the Building program with Planning and Code Compliance functions. Complete a comprehensive update of the land track database with updated owner and land use information. Fina lize implementation of the interactive voice response phone system for inspection scheduling. Plan Check Response Times – Closely monitor the time it takes to provide the first round of plan comments on a building permit application. The target response time for most replacement single family homes is four weeks. Increase over-the-counter plan check services to reduce response times. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 1,035,068 1,008,071 1,058,454 1,122,650 978,807 946,850 Charge for Services 387,964 386,842 513,865 480,000 333,425 375,000 Other Sources - - - - - - TOTAL REVENUES 1,423,032$ 1,394,913$ 1,572,319$ 1,602,650$ 1,312,232$ 1,321,850$ EXPENDITURES Salaries and Benefits 725,706 689,443 774,970 945,729 860,403 971,871 Operating Expenditures Materials & Supplies 4,242 7,468 4,092 8,600 8,588 6,400 Fees & Charges 10,191 13,486 12,954 12,700 13,521 13,200 Consultant & Contract Services 23,766 54,777 21,798 108,650 49,533 42,825 Meetings, Events & Training 1,734 2,807 3,090 7,000 780 4,000 Total Operating Expenditures 39,932 78,539 41,934 136,950 72,422 66,425 Fixed Assets - - - - - - Internal Service Charges 153,543 168,273 161,489 169,503 169,503 176,578 TOTAL EXPENDITURES 919,181$ 936,255$ 978,393$ 1,252,182$ 1,102,328$ 1,214,874$ COMMUNITY DEVELOPMENT DEPARTMENT BUILDING & INSPECTION SERVICES 227 KEY SERVICES Counter Services  Provide construction and zoning code information to developers, contractors, archite cts, engineers, homeowners, and the general public  Maintain permit tracking and building permit system information 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 BUILDING & INSPECTION STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Community Development Director 0.15 0.15 0.15 0.25 0.25 Senior Planner 0.10 0.10 0.10 0.35 1.00 Planner I/II 0.10 0.20 0.20 0.10 0.10 Senior Arborist 0.05 0.05 0.05 0.10 0.15 Plan Check Engineer 1.00 1.00 1.00 1.00 1.00 Building Official - - - - - Sr. Building Inspector/Plan Checker 1.00 0.75 0.75 1.00 - Associate Engineer - - - - 0.50 Building Inspector 1.50 1.80 1.80 1.90 1.90 Permit Technician 0.90 0.90 0.90 0.90 0.95 Administrative Assistant - - - - - Office Specialist III 1.00 1.00 1.00 1.00 0.90 Code Compliance Officer - - - - - TOTAL FTE's 5.80 5.95 5.95 6.60 6.75 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Planning Intern - - - - - GIS/Graphics Tech - - - - - Office Specialist III - - - - - Project Manager - - - - - TOTAL ANNUAL HOURS - - - - - COMMUNITY DEVELOPMENT DEPARTMENT BUILDING & INSPECTION SERVICES 228 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actual Budget 1. a.Percentage of inspections delivered within 2 business days of request: 97%98%99%96%99% b.Percentage of initial plan checks completed within 45 days of receipt: 96%98%99%92%99% Maintain staff's responsiveness and accountability to the community. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actual Budget 1 1,800 1,700 2,039 1,925 1,800 2.475 450 475 460 450 3.5,500 5,000 6,711 5,400 5,000 4.390 350 400 315 300 5.$85.0 $90.0 $96.0 $72.0 $70.0 Number of Building Division permits issued: Number of Over-the-Counter Plan Checks for Remodels: Number of inspections requested: Number of building plan checks completed: Dollar value of construction permitted (in $Millions): PUBLIC WORKS DEPARTMENT 229 DEPARTMENT OVERVIEW The Public Works Department 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-ways, 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. Public Works strives to both fulfill operational functions and fund Capital Projects with the assistance of grant funding when possible. Staff is diligent in their pursuit of grant funding on an ongoing basis. The Public Works Department also provides 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 resources available to the community. The Department provides these assorted services under five main operational programs: General Engineering, Development Engineering, Environmental Services, Streets and Storm Drains, and Parks and Landscape Maintenance. Additionally, the department oversees two internal support programs: Equipment Maintenance and Equipment Replacement; and 29 separate Landscape and Lighting Assessment Districts. Public Works is integral to many of the City’s services that maintain the quality of life in neighborhoods and in the business community for which Saratoga is known. DEPARTMENT OBJECTIVES The Public Works Department directly supports the City Council’s Strategic Goals through implementation of the department’s objectives, as listed below. Performance Measures in the service programs provide feedback on the Department’s attainment of these objectives. Council Strategic Goal Facility & Infrastructure: Maintain the City’s facilities and public infrastructure in a safe, sustainable and cost effective manner. Department Objectives  Maintain roadways, streetlights, and signals, and ensure safe, well -functioning roadway infrastructure (curbs, storm drains, sidewalk, medians, retraining walls)  Enhance roadway landscaping and beautification  Maintain safety standards in parks and playgrounds  Develop and maintain trails and open space  Increase public safety through traffic management  Pursue grant funding for infrastructure improvements Council Strategic Goal Community Heritage: Honor Saratoga’s heritage by preserving significant historic assets. Department Objectives  Enhance standards to maintain a high quality of life through development review and adherence to the City’s General Plan and Municipal Code  Protect Saratoga’s natural beauty by maintaining parks and open space  Protect and optimize the City’s natural resources and environment through sustainable practices PUBLIC WORKS DEPARTMENT 230  Embrace environmentally friendly practices by supporting the Hazardous Household Waste and recycling programs  Establish recycling and waste reduction practices  Educate the community on environmental issues through collaboration with the West Valley Clean Water Program Council Strategic Goal Fiscal Stewardship: Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvement. Department Objectives  Ensure contract rates are competitive and current  Ensure proper financial accounting on projects and contractors adhere to approved funding Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives  Post Department and Commission information on the City’s website  Maintain records and Laserfiche Department archives  Engage the public by working with the Traffic Safety Commission and community groups for large projects BUDGET HIGHLIGHTS While the Public Works’ FY 2017/18 budget holds most operational revenues and expenditures at prior year service levels, a notable budget change includes a 1/3 reduction in temporary Public Works Inspector staffing (approximately $50,000) to offset a ½ FTE Associate Engineer position increase. The reclassification of a full time Sr. Building Inspector from Community Development Department (CDD) to a shared half-time Associate Engineer position between CDD and General Engineering will focus on street resurfacing inspections, easements, and storm drainage plans. Other expenditure increases are primarily attributable to staff cost-of-living and step increases, additional Traffic Safety contract engineer services, America in Bloom program supplies, and the Quarry Park utility building foundation pad. Performance Measures for General Engineering, Development Engineering, Environmental Services, Streets and Storm Drains, Parks and Landscape Maintenance, and Vehicle and Equipment Maintenance are included in the operational programs. PUBLIC WORKS DEPARTMENT 231 GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES – BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes 163,954 164,589 167,113 167,113 185,670 184,429 Intergovernmntl Revenues 203,908 212,594 216,105 207,000 211,056 142,000 Fees, Licenses and Permits 118,792 122,189 180,687 100,250 213,125 200,250 Charge for Services 400,072 308,605 494,426 242,727 296,003 251,715 Rental Income 121,078 79,791 3,000 2,000 2,520 2,000 Other Sources 7,190 103,375 10,483 2,500 28,630 2,500 TOTAL REVENUES 1,014,993$ 991,143$ 1,071,813$ 721,590$ 937,004$ 782,894$ EXPENDITURES Salaries and Benefits 2,448,708 2,485,634 2,647,113 2,850,907 2,801,838 2,963,915 Operating Expenditures Materials & Supplies 95,011 87,668 99,956 95,650 102,435 116,900 Fees & Charges 565,785 509,374 531,908 531,984 559,826 572,107 Consultants & Contracts 814,787 882,646 923,424 1,099,045 1,054,193 1,075,153 Meetings, Events, Training 8,467 8,749 3,099 10,100 12,028 15,250 Fixed Assets - 35,343 - 10,000 - 20,000 Internal Service Charges 901,203 939,125 853,555 859,676 859,676 889,085 TOTAL EXPENDITURES 4,833,962$ 4,948,538$ 5,059,055$ 5,457,362$ 5,389,996$ 5,652,410$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND General Engineering 502,680$ 532,614$ 518,312$ 571,603$ 584,471$ 685,337$ Development Engineering 213,150 194,320 227,645 233,692 232,146 278,964 Environmental Services 643,314 615,342 665,655 769,289 704,738 766,244 Streets & Storm Drains 1,381,240 1,454,269 1,447,110 1,623,030 1,636,003 1,611,562 Parks & Landscape Maint 2,093,578 2,151,993 2,200,334 2,259,748 2,232,638 2,310,304 TOTAL GENERAL FUND 4,833,962$ 4,948,538$ 5,059,055$ 5,457,362$ 5,389,996$ 5,652,410$ INTERNAL SERVICE FUNDS Equipment Maintenance 224,078 220,785 224,618 279,033 264,043 257,492 Equipment Replacement 140,258 65,775 201,355 266,700 150,722 260,800 TOTAL INTERNAL SERVICES 364,336$ 286,560$ 425,973$ 545,733$ 414,765$ 518,292$ SPECIAL REVENUE FUNDS Landscape&Lighting Districts 409,418 432,671 461,679 714,930 511,179 732,855 TOTAL SPECIAL REVENUE 409,418$ 432,671$ 461,679$ 714,930$ 511,179$ 732,855$ TOTAL DEPT EXPENDITURES 5,607,716$ 5,667,769$ 5,946,707$ 6,718,025$ 6,315,939$ 6,903,557$ PUBLIC WORKS DEPARTMENT 232 DEPARTMENTAL ORGANIZATION CHART Sr. Civil Engineer 1.0 FTE Engineer .50 FTE Engineer 1.0 FTE Administrative Analyst .90 FTE Streets & Fleet Lead Worker 1.0 FTE Streets Maint Worker 1.0 FTE Streets & Fleet Lead Worker 1.0 FTE Streets & Fleet Manager 1.0 FTE Office Specialist 1.0 FTE Streets Maint Worker 1.0 FTE Streets Maint Worker 1.0 FTE Streets Maint Worker 1.0 FTE Parks Maint Worker 1.0 FTE Parks Lead Worker 1.0 FTE Parks Maint Worker 1.0 FTE Parks Lead Worker 1.0 FTE Parks & Landscape Manager Parks Maint Worker 1.0 FTE Parks Maint Worker 1.0 FTE Parks Maint Worker 1.0 FTE Public Works Director 1.0 FTE Administrative Technician .75 FTE PUBLIC WORKS DEPARTMENT 233 PUBLIC WORKS DEPARTMENT STAFF PUBLIC WORKS STAFF – BY PROGRAM City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Public Works Director 1.00 1.00 1.00 1.00 1.00 Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00 Assistant/Associate Engineer 1.00 1.00 1.00 1.00 1.50 Administrative Analyst I/II 1.00 0.90 0.90 0.90 0.90 Administrative Technician 0.75 0.75 0.75 0.75 0.75 Office Specialist II/III 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Lead 1.00 1.00 2.00 2.00 2.00 Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III 6.00 6.00 5.00 5.00 5.00 Street Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Street Maintenance Lead 2.00 2.00 2.00 2.00 2.00 Street Maintenance Specialist - - - - - Street Maintenance Worker I/II/III 4.00 4.00 4.00 4.00 4.00 TOTAL FTE's 20.75 20.65 20.65 20.65 21.15 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors 92 92 92 2,760 1,840 Maintenance Worker - - 999 999 999 Engineering Intern - 200 200 320 - GIS/Graphics Tech - - - - 500 Executive Assistant - - - - 864 TOTAL ANNUAL HOURS 92 292 1,291 4,079 4,203 City Staff by Program 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded General Engineering 2.10 2.05 2.05 2.05 2.30 Development Engineering 0.95 0.95 0.95 0.95 1.20 Environmental Services 1.00 0.95 0.95 0.95 0.95 Streets & Storm Drains 7.60 7.60 7.60 7.60 7.60 Parks & Landscape 8.40 8.40 8.40 8.40 8.40 Vehicle Equipment Maintenance 0.70 0.70 0.70 0.70 0.70 TOTALS 20.75 20.65 20.65 20.65 21.15 PUBLIC WORKS DEPARTMENT 234 PUBLIC WORKS DEPARTMENT GENERAL ENGINEERING 235 GENERAL ENGINEERING OVERVIEW 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 infrastructu re (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. BUDGET HIGHLIGHTS Notable Budget Changes  Additional funding for the City’s Traffic Consulting Engineer  Salary and benefit cost increases from additional staff time added for transitional overlap, due to Sr. Civil Engineer’s planned retirement during FY 2017/18  Additional temporary staff funding added for part-time GIS/Graphics Technician and part-time administrative assistance Planned General Engineering operations for FY 2017/18 are consistent with the prior year’s functions, which focus on providing support for traffic safety and management programs, assessment district engineering reviews, miscellaneous engineering functions, and the Capital Improvement Program’s infrastructure maintenance and improvement objectives. Revenue in this program is limited to encroachment permits, and on occasion, reimbursements for engineering staff time spent on grant funded capital projects. General Engineering Encroachment Permit revenues are conservatively budgeted to come in at approximately $200,000 in FY 2017/18 due to a revised fee structure. No revenues are expected from CIP Project Management sources this fiscal year. While most of General Engineering’s budgeted operating expenditures remain the same, this year, an additional $20,000 was added for the City’s Traffic Engineer to reflect the increase in requests by residents for more lighted crosswalks and comprehensive traffic cal ming plans citywide. The Traffic Safety Commission provides a forum for citizens to bring traffic concerns to the Commissioner’s attention and with the increase in patrol officer hours, the City Traffic Engineer consultant services will be utilized more to determine appropriate solutions. Other than staff costs and internal services, the program’s remaining expenses are for operational office support, landscape assessment services, and VTA Congestion Management fees. PUBLIC WORKS DEPARTMENT GENERAL ENGINEERING 236 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Capital Improvement Program Oversight – Provide plans, specifications, estimates and right-of-way plans, coordinate consultants, and administer contracts. FY 2017/18 CIP Project oversight includes Quito Road Bridges construction, Prospect Road Beautification construction, Complete Downtown Sidewalk Repairs, El Camino Storm Drain upgrades, Big Basin Turnaround design, Village to Hakone Pedestrian Path design, Hakone Koi Pond Filtration Project design/ construction, and the Annual Pavement Management Program. Traffic Management – Receive resident traffic safety concerns and investigate by means of the city’s Traffic Engineer and Traffic Safety Commission as needed. In FY 2014/15, the City added approximately 1,800 deputy hours for traffic control services and the Sheriff has been working with the City’s schools and the Traffic Safety Committee to improve traffic management, particularly around school activity . Examples of projects to be implemented in FY2017/18 include more pedestrian crossing warning lights at Quito and McCoy and near the railroad crossing at Cox Avenue, speed tables along Allendale Avenue, and comprehensive traffic calming measures along Sobey Road. 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. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 117,702 120,470 180,687 100,250 212,985 200,250 Charge for Services - - - - - - Other Sources - 97,600 2,029 - 26,200 - TOTAL REVENUES 117,702$ 218,070$ 182,716$ 100,250$ 239,185$ 200,250$ EXPENDITURES Salaries and Benefits 326,784 369,338 342,848 354,487 353,264 447,386 Operating Expenditures Materials & Supplies 2,183 3,426 2,595 3,550 3,213 3,500 Fees & Charges 23,225 23,138 23,453 25,030 23,738 25,715 Consultants & Contract Services 58,103 55,986 67,092 104,125 119,818 119,675 Meetings, Events & Training 1,601 342 (672) 2,100 2,128 2,750 Total Operating Expenditures 85,111 82,892 92,467 134,805 148,896 151,640 Fixed Assets - - - - - - Internal Service Charges 90,784 80,384 82,997 82,311 82,311 86,311 TOTAL EXPENDITURES 502,680$ 532,614$ 518,312$ 571,603$ 584,471$ 685,337$ PUBLIC WORKS DEPARTMENT GENERAL ENGINEERING 237 KEY SERVICES  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 GENERAL ENGINEERING STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Public Works Director 0.35 0.35 0.35 0.35 0.35 Senior Civil Engineer 0.25 0.25 0.25 0.25 0.25 Assistant/Associate Engineer 0.75 0.75 0.75 0.75 1.00 Administrative Analyst I/II 0.50 0.45 0.45 0.45 0.45 Administrative Technician 0.25 0.25 0.25 0.25 0.25 Office Specialist II/III - - - - - Parks Maintenance Manager - - - - - Parks Maintenance Lead - - - - - Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III - - - - - Street Maintenance Manager - - - - - Street Maintenance Lead - - - - - Street Maintenance Specialist - - - - - Street Maintenance Worker I/II/III - - - - - TOTAL FTE's 2.10 2.05 2.05 2.05 2.30 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors - - - - - Maintenance Worker - - - - - Engineering Intern - 200 200 320 - GIS/Graphics Tech - - - - 500 Executive Assistant - - - - 864 TOTAL ANNUAL HOURS - 200 200 320 1,364 PUBLIC WORKS DEPARTMENT GENERAL ENGINEERING 238 PERFORMANCE OBJECTIVES & MEASURES ACTIVITY & WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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: Yes Yes No No Yes c. Establish best practices roadway maintenance plans, such as for resurfacing, pothole repairs, tree pruning, and weed control: Yes Yes Yes Yes Yes Maintain safe, well-functioning roadway infrastructure. Increase roadways safety through effective traffic management practices. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.18 18 18 25 20 2.225 200 277 225 225 3.5 5 1 5 4 4.12 10 23 21 20 Number of traffic concerns investigated and completed: Number of encroachment permits issued: Number of contracts executed: Number of bids issued: PUBLIC WORKS DEPARTMENT DEVELOPMENT ENGINEERING 239 DEVELOPMENT ENGINEERING OVERVIEW 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; issuing certificates of compliance; and, controlling encroachments in the public right-of-way connected to private developments. This program seeks to fully recover the costs associated with development services. BUDGET HIGHLIGHTS Notable Budget Changes:  Salary and benefit cost increases from additional staff time added for transitional overlap, due to Sr. Civil Engineer’s planned retirement during FY 2017/18 The Development Engineering process requires applicants to provide a deposit of funds to be used for City managed engineering work on their development applications. The deposits pay for various types of outsourced engineering services, and for in-house engineering and review work. Budgeted program revenues and expenditures reflect the in -house portion of engineering work. The outsourced portion flows into and out of a deposit account as it is received and disbursed for contract engineering services, and is therefore not recognized in the Development Engineering budget as a City revenue or expense. The strong housing market has brought several small subdivisions to the City in the last few years. FY 2017/18 revenues are based on basic home remodeling, upgrade projects, and small development projects. As the City of Saratoga is mostly built-out, subdivisions are infrequent and unpredictable, and therefore not included in budgeted revenue. FY 2017/2018 budgeted expenditures remain consistent with prior years, with minimal operational costs other than staff salary and internal service charges. Operational expenses are limited to a small amount of office supplies and civil engineering services. PUBLIC WORKS DEPARTMENT DEVELOPMENT ENGINEERING 240 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Development Review - Review development applications for compliance with City, State and Federal laws for public improvements in the city’s right-of-way. Process private development and subdivision development plans, reviewing for geotechnical compliance, traffic impacts a nd compliance with NPDES permit. NPDES Compliance Review – Issue an RFQ for a consultant to review subdivision plans for compliance with the City’s NPDES permit and storm water runoff improvement requirements. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 1,090 1,719 - - 141 - Charge for Services 167,924 137,936 311,073 72,000 112,572 71,600 Other Sources - - - - - - TOTAL REVENUES 169,014$ 139,654$ 311,073$ 72,000$ 112,712$ 71,600$ EXPENDITURES Salaries and Benefits 168,400 149,277 175,943 178,052 176,935 220,732 Operating Expenditures Materials & Supplies 50 499 262 300 158 300 Fees & Charges 288 240 288 - 288 300 Consultant & Contract Serv 1,710 137 2,980 2,700 2,125 2,700 Meetings, Training - - - - - - Total Operating Expenditures 2,047 876 3,530 3,000 2,571 3,300 Fixed Assets - - - - - - Internal Service Charges 42,702 44,167 48,172 52,640 52,640 54,932 TOTAL EXPENDITURES 213,150$ 194,320$ 227,645$ 233,692$ 232,146$ 278,964$ PUBLIC WORKS DEPARTMENT DEVELOPMENT ENGINEERING 241 KEY SERVICES  Process all final map, lot line adjustments, and Certificates of Compliance applications  Review and comment on Design Reviews and Tentative Map applications  Review initial improvement plan submittals  Process initial submittals for Geotechnical Clearance  Perform daily inspections and reporting on all land development projects  Review subdivision traffic impacts  Review subdivision compliance with NPDES permit DEVELOPMENT ENGINEERING STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Public Works Director 0.10 0.10 0.10 0.10 0.10 Senior Civil Engineer 0.60 0.60 0.60 0.60 0.60 Assistant/Associate Engineer - - - - 0.25 Administrative Analyst I/II - - - - - Administrative Technician 0.25 0.25 0.25 0.25 0.25 Office Specialist II/III - - - - - Parks Maintenance Manager - - - - - Parks Maintenance Lead - - - - - Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III - - - - - Street Maintenance Manager - - - - - Street Maintenance Lead - - - - - Street Maintenance Specialist - - - - - Street Maintenance Worker I/II/III - - - - - TOTAL FTE's 0.95 0.95 0.95 0.95 1.20 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors 92 92 92 92 48 Maintenance Worker - - - - - Engineering Intern - - - - - GIS/Graphics Tech - - - - - Executive Assistant - - - - - TOTAL ANNUAL HOURS 92 92 92 92 48 PUBLIC WORKS DEPARTMENT DEVELOPMENT ENGINEERING 242 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of development applications reviewed within 30 days: 90%90%92%90%95% Maintain a high quality of life through development review by adhering to City standards. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.35 35 60 35 40 2.12 12 30 15 20 3.Not Available Not Available 2 0 1 Number of development applications processed: Number of subdivision plancheck reviews processed: Development applications requiring geological review: PUBLIC WORKS DEPARTMENT ENVIRONMENTAL SERVICES 243 ENVIRONMENTAL SERVICES OVERVIEW Environmental Services accounts for revenue and expenditures related to administering the City’s solid waste programs, promoting environmental services available to the City of Saratoga community, advocating Green Business practices, and ensuring the City complies with the State’s environmental requirements. Under Assembly Bill 939, part of the Integrated Waste Management Act enacted in 1989, local governments are required to prepare, adopt, implement, and maintain plans to reduce waste disposal in landfills. Integrated waste management plans are to include provisions for the proper disposal of household hazardous waste; materials such as pesticides, paints, pool cleaning chemicals, fluorescent lamps, and other toxic materials that are prohibited from being disposed of in landfills. AB 939 allows jurisdictions to impose fees collected at landfills to pay for the costs associated with preparing, adopting, and implementing integrated waste management plans. In Santa Clara County, the current AB 939 fee is $4.10 per ton of garbage disposed of at landfills within Santa Clara County or taken to non-disposal facilities within the County then subsequently transported to landfills outside of Santa Clara County. Of the $4.10 per ton of waste, a total of $2.60 per ton is set aside to fund the countywide Household Hazardous Waste Collection Program. The remaining $1.50 per ton is allocated to the cities in Santa Clara County to implement AB 939 compliance activities. The portion of the AB 939 fee set aside for Household Hazardous Waste (HHW) collection is intended to fund household hazardous waste collection services for a minimum of 4% of households from each of the jurisdictions in the County. Cities must pay for the additional services incurred when more than 4% of their population uses the Household Hazardous Waste Collection Program. In addition, an annual allocation of $50,000 is utilized from the Environmental Program Fund Balance Reserve to help offset other environmental programs within the function, such as non-point source water runoff/pollution administration costs, or emergency environmental clean-up. BUDGET HIGHLIGHTS Notable Budget Changes:  The Clean Water Program fee increase of $15,000 was offset by a $15,000 decrease in the Household Hazardous Waste program. The Environmental Services program receives several types of revenue related to solid waste programs for use in funding solid waste related expenses. The City expects to receive $20,000 from the AB 939 Refuse Surcharge program. Additional funding comes from the West Valley Solid Waste Joint Powers Agreement in the form of a franchise fee surcharge charged to customers on their waste management bill. This fee is designated to fund the West Valley Solid Waste Management Authority dues, the Household Hazardous Waste (HHW) augmentation, and increased street sweeping services. The HHW augmentation revenue offsets the HHW waste collection program services available to Saratoga residents. In FY 2016/17, revenue and expenditure funding were increased slightly due to higher levels of participation in the HHW Program by Saratoga residents. Current program augmentation provides for approximately 6% of Saratoga households to participate in the program. Program expenses are comprised of staff time and costs associated with environmental programs and regulatory requirements. Estimated expenditures include $280,000 for the Santa Clara Valley Urban Runoff Pollution Prevention Program and West Valley Clean Water Program fees, $35,000 for West Valley Solid Waste Joint Powers Agreement dues, $50,000 for West Valley Sanitation District’s storm drain cleaning, and $186,558 for Street Sweeping. The remaining costs reflect staff time and internal service charges. PUBLIC WORKS DEPARTMENT ENVIRONMENTAL SERVICES 244 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Clean Water Program – Collectively, the Cities of Saratoga, Campbell, Monte Sereno, and the Town of Los Gatos participate in the Clean Water Program for administrative guidance and implementation compliance of the Regional NPDES (National Pollution Discharge Elimination System) Stormwater Permit. The Program is paid for by the participating cities and includes permit administration, public outreach, code compliance, attendance at local storm water meetings, and preparation of the City’s Annual Report submitted to the Regional Water Board. In FY2017/18, there will be program changes that will impact operations due to the Sanitation District’s recent decision to sever its ties as the Clean Water Program’s fisc al agent. These changes are currently fluid and will be determined by FY2018/19. Solid Waste Management - Garbage and recycling collection services in the City of Saratoga are managed by the West Valley Solid Waste Management Authority, which is comprised of four (4) member agencies: Saratoga, Campbell, Los Gatos, and Monte Sereno. A Council Member is assigned to represent the City, and City Manager’s Office staff provide staff liaison services. In December 2013, the Authority approved an agreement with West Valley Collection & Recycling for garbage and recycling services. The new agreement runs from March 1, 2014 to February 2024. The agreement increases the amount of materials that are accepted in the recycling, including some electronic waste, and includes provisions to convert the garbage company fleet to compressed natural gas within the first few years of the agreement. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Franchise Fees 163,954 164,589 167,113 167,113 185,670 184,429 Intergovernmental Revenues 26,533 27,201 29,273 20,000 28,113 20,000 Fees, Licenses and Permits - - - - - - Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES 190,487$ 191,790$ 196,386$ 187,113$ 213,783$ 204,429$ EXPENDITURES Salaries and Benefits 139,583 116,245 138,509 141,304 141,697 145,568 Operating Expenditures Materials & Supplies - 6 - - - - Fees & Charges 240,492 251,248 278,490 300,429 283,842 316,562 Consultant & Contract Serv 239,263 220,412 219,569 299,500 251,144 274,558 Meetings, Training - - - - - - Total Operating Expenditures 479,754 471,667 498,059 599,929 534,986 591,120 Fixed Assets - - - - - - Internal Service Charges 23,977 27,431 29,087 28,056 28,056 29,556 TOTAL EXPENDITURES 643,314$ 615,342$ 665,655$ 769,289$ 704,738$ 766,244$ PUBLIC WORKS DEPARTMENT ENVIRONMENTAL SERVICES 245 KEY SERVICES  Provide street sweeping services for the City’s streets and parking lots – in 2012 sweeping increased to twice a month on residential streets  Coordinate the West Valley Clean Water Program to fulfill the requirements of the NPDES permit  Participate in the West Valley Solid Waste Joint Powers Authority to provide waste management collection services to the community  Assist the community in resolving any issues or problems that arise with the City’s contract waste hauler  Participate in community “Greening” programs, such as e -waste recycling and household hazardous waste programs  Provide storm drain cleaning ENVIRONMENTAL SERVICES STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Public Works Director 0.10 0.10 0.10 0.10 0.10 Senior Civil Engineer 0.15 0.15 0.15 0.15 0.15 Assistant/Associate Engineer - - - - - Administrative Analyst I/II 0.50 0.45 0.45 0.45 0.45 Administrative Technician 0.25 0.25 0.25 0.25 0.25 Office Specialist II/III - - - - - Parks Maintenance Manager - - - - - Parks Maintenance Lead - - - - - Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III - - - - - Street Maintenance Manager - - - - - Street Maintenance Lead - - - - - Street Maintenance Specialist - - - - - Street Maintenance Worker I/II/III - - - - - TOTAL FTE's 1.00 0.95 0.95 0.95 0.95 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors - - - - - Maintenance Worker - - - - - Engineering Intern - - - - - GIS/Graphics Tech - - - - - Executive Assistant - - - - - TOTAL ANNUAL HOURS - - - - - PUBLIC WORKS DEPARTMENT ENVIRONMENTAL SERVICES 246 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Tons of solid waste collected in Saratoga:28,362 29,000 27,967 27,500 28,000 b.Tons of solid waste diverted from landfills:16,344 16,900 15,200 15,000 15,000 c.Meet State requirements for garbage diversion:Yes Yes Yes Yes Yes 2. a.Percentage of regional meetings attended:100%90%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%90%100%90%100% b. Respond to reports of illicit and illegal discharges :100%100%100%100%100% 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 throught participation in the West Valley Clean Water Program. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.550 676 675 675 743 2.Miles of streets swept per month:550 550 550 550 550 3.15 15 15 15 10 Number of Saratoga residents participating in Countywide Household Hazardous Waste Program: Number of bags of garbage collected at creek clean-up events: PUBLIC WORKS DEPARTMENT STREETS & STORM DRAINS 247 STREETS & STORM DRAINS OVERVIEW The Streets and Storm Drains program provides for ongoing maintenance and minor repairs to the City’s roadways, storm drains, curbs, gutters, and 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 Division for traffic and roadway projects, and with the Parks program for weed control and storm drain work. The Streets and Storm Drains program represents the consolidation of several programs in prior year budgets. With the realignment of capital project expenses to the Capital Improvement Plan, the focus of this program was limited to ongoing street and storm drain related activities effective with the FY 2007/08 budget. This resulted in combining the former Streets Maintenance program with the Flood Control and Storm Drain program and the Gas Tax program for maintenance services, and moving contract pavement management activity to the Capital Improvement Plan. BUDGET HIGHLIGHTS Notable Budget Changes:  Public Works Inspection temporary staff funding was reduced with the .25 FTE addition of an Associate Engineer to assist with Street projects and inspection work. Approximately $2 million for street resurfacing is budgeted in the Capital Budget for FY 2017/18. This amount reflects funding from Measure B, Gas Tax, Solid Waste Road Impact Fees, General Fund allocations, and occasion Federal, State and local grants. While roadway resurfacing contracts and related expenses are funded in the Capital Improvement Plan, staffing costs for contract oversight and roadway maintenance services are funded through the General Fund’s Street and Storm Drain Maintenance program. Temporary staff funding to provide street resurfacing assistance to the Streets crew is also funded through the CIP. The remainder of the program’s operating budget provides for basic operational expenses such as traffic light repair services and electricity, street tree maintenance services, minor tools, supplies, equipment, training, and internal service charges. In FY 2012/13, the City began to receive the voter approved $10 Vehicle Registration Fee surcharge revenue designated for use in maintaining streets. The City expects this will total approximately $187,000 in FY 2017/18. For FY 2017/18, Council directed $65,000 of the surcharge funds be transferred to the CIP to assist with meeting the $2 million Street Maintenance goal. The newly enacted Road Repair and Accountability Act of 2017 will assist with additional funding in future years. The remainder of the expenditure budget is fairly consistent with past budgets. Overall, the Streets & Storm Drains Program budget provides lean and efficient support for th e City’s objective to provide safe, well- functioning beautiful infrastructure (curbs, storm drains, sidewalks, medians, hillside retaining walls). PUBLIC WORKS DEPARTMENT STREETS & STORM DRAINS 248 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN 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 FY 2016/17 set a goal of $2 million of funding be designated for Street Resurfacing in the Capital Budget. This goal was met because of funding from various resources including Measure B, Gas Tax, General Fund allocation, and various grants. Street Division staff time and maintenance work is budgeted in the Operating Budget. Infrastructure Maintenance & Repairs – Several annual $50,000 priority CIP projects for roadway infrastructure repairs were combined into one project effective in the FY 2016/17 budget. This replaces funding previously allocated separately for the sidewalks, curbs & gutters, storm drains, and bridge repairs. Combined, the new project budget of $200,000 can be utilized to address infrastructure repairs in a more cost effective manner. In FY 2017/18, the City created a separate CIP for Retaining Walls in the amount of $200,000. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues 177,375 185,393 186,832 187,000 182,943 122,000 Fees, Licenses and Permits - - - - - - Charge for Services 68,436 1,240 3,685 - 11,504 - Other Sources - - 4,264 - - - TOTAL REVENUES 245,811$ 186,633$ 194,781$ 187,000$ 194,447$ 122,000$ EXPENDITURES Salaries and Benefits 922,913 938,074 1,004,916 1,139,811 1,132,821 1,117,693 Operating Expenditures Materials & Supplies 10,700 10,144 11,751 12,300 8,448 15,600 Fees & Charges 29,952 31,721 32,962 22,200 33,654 35,200 Consultant & Contract Serv 47,945 88,809 57,087 95,000 109,772 82,000 Meetings, Training 4,852 6,556 1,960 6,500 4,088 6,500 Total Operating Expenditures 93,449 137,230 103,760 136,000 155,962 139,300 Fixed Assets - - - - - - Internal Service Charges 364,878 378,965 338,434 347,219 347,219 354,569 TOTAL EXPENDITURES 1,381,240$ 1,454,269$ 1,447,110$ 1,623,030$ 1,636,003$ 1,611,562$ PUBLIC WORKS DEPARTMENT STREETS & STORM DRAINS 249 KEY SERVICES  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 right-of-ways  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  Provide assistance 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 street light outages to PG&E  Repair City owned Street light outages STREETS & STORM DRAINS STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Public Works Director 0.25 0.25 0.25 0.25 0.25 Senior Civil Engineer - - - - - Assistant/Associate Engineer 0.25 0.25 0.25 0.25 0.25 Administrative Analyst I/II - - - - - Administrative Technician - - - - - Office Specialist II/III 0.40 0.40 0.40 0.40 0.40 Parks Maintenance Manager - - - - - Parks Maintenance Lead - - - - - Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III - - - - - Street Maintenance Manager 0.95 0.95 0.95 0.95 0.95 Street Maintenance Lead 2.00 2.00 2.00 2.00 2.00 Street Maintenance Specialist - - - - - Street Maintenance Worker I/II/III 3.75 3.75 3.75 3.75 3.75 TOTAL FTE's 7.60 7.60 7.60 7.60 7.60 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors - - - 2,668 1,792 Maintenance Worker - - - - - Engineering Intern - - - - - GIS/Graphics Tech - - - - - Executive Assistant - - - - - TOTAL ANNUAL HOURS - - - 2,668 1,792 PUBLIC WORKS DEPARTMENT STREETS & STORM DRAINS 250 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Maintain Pavement Condition Index average above 70 (out of 100 total points): 76 69 69 71 71 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: 1,300 1,300 1,300 1,300 1,300 Maintain safe, well functioning infrastructure. To provide safe and functional roadway systems throughout the City. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.1,500 1,500 1,500 1,700 1,500 2.$0 $0 $0 $0 $0 Number of signs installed and replaced: Amount of grant funding the City received for street resurfacing: PUBLIC WORKS DEPARTMENT PARKS & LANDSCAPING 251 PARKS & LANDSCAPING OVERVIEW 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, 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 & L andscape Maintenance Division 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 retains maintenance of the facility’s infrastructure. Currently, the City is the lead agency for a master plan study jointly funded by Hakone and the City for preservation of the historic gardens and future improvements to include a retreat center tea room. BUDGET HIGHLIGHTS Notable Budget Changes:  One time funding for the Quarry Park Maintenance Building foundation  New annual funding for playground fibar  New annual funding for America in Bloom supplies  Replacement funding for infrastructure, fixtures, and equipment now in capital budget Budgeted revenues for this program are comprised of the banner rental fees, tree/bench dedication fees, park attendant fees, and administrative fees from Landscape & Lighting Districts for staffing, engineering, legal, and maintenance expenses. In prior years, the Parks & Landscape Maintenance program oversaw Park rentals, the Sport User Group Agreements and Prospect High School’s field rentals. In mid-FY 2014/15, Park and Sport Use rental duties were transferred to the Recreation Department, and the budgeted revenues and expenditures were shifted to Recreation effective with the FY 2015/16 budget year. While staff time and maintenance costs to maintain the parks and fields remain in the Parks & Landscape Maintenance budget, the $40,000- 50,000 annual field rental cost for Prospect High School fields was transferred to the Recreation Department’s Facility Rentals budget. The Park & Landscape Maintenance expenditure budget includes funding for landscaping materials, supplies, equipment, and services. For FY 2017/18, one -time funding of $20,000 was included to add a foundation for the Maintenance Building located at Quarry Park. Ongoing funding was increased with the addition of $15,000 to replenish playground fibar at the various parks on a rotating basis, and another $15,000 to beautify the City for the America in Bloom program. The park furnishings budget (fixtures) of $10,000 was eliminated with the implementation of the Parks, Trails, Grounds, and Medians, (PTGM) capital project. The PTGM project will act as an annual funding source for the replacement of park, trail, grounds, or median infrastructure, fixtures, and equipment. The cost of water has also increased, adding another $10,000 to the budget. The remainder of the expenditure budget is for staffing and internal service charges. PUBLIC WORKS DEPARTMENT PARKS & LANDSCAPING 252 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Water Efficiency – The Parks and Landscape Maintenance Division will continue to monitor the City’s irrigation system as needed, to reduce water use through plant selection, soil management, and irrigation methods. While the drought is officially over in California, turf areas will continue to be investigated as potential conversion sites into native landscape, hardscape or mulched areas to reduce water usage. Since 2014, the City has converted approximately 75,000 square feet of turf to drought tolerant landscaping at the following parks: Beauchamps, Brookglen, Bellgrove, Kevin Moran Park, Saratoga Prospect Center, Azule, Foothill, Gardiner, and the front area of City Hall. There are no turf reduction projects planned for FY 2017/18 due to larger projects taking priority. Turf reduction efforts will resume in the future as time and resources permit. Playground Safety Improvements – Staff continues to oversee the safety and structural integrity of playground equipment at all parks. Improvements include converting san d surfaces to engineered wood fiber material as mandated by the “Fall Zone/Impact Attenuation Guidelines.” Playground Monitoring – Monitor playgrounds on an on-going basis in accordance with a 15-25 year replacement schedule. Replacement criteria is 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. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits - - - - - - Charge for Services 163,712 169,429 179,667 170,727 171,927 180,115 Rental Income 121,078 79,791 3,000 2,000 2,520 2,000 Other Sources 7,190 5,775 4,190 2,500 2,430 2,500 TOTAL REVENUES 291,980$ 254,995$ 186,857$ 175,227$ 176,877$ 184,615$ EXPENDITURES Salaries and Benefits 891,029 912,701 984,897 1,037,253 997,121 1,032,536 Operating Expenditures Materials & Supplies 82,078 73,592 85,348 79,500 90,616 97,500 Fees & Charges 271,829 203,027 196,716 184,325 218,304 194,330 Consultant & Contract Serv 467,766 517,302 576,697 597,720 571,335 596,220 Meetings, Training 2,014 1,851 1,811 1,500 5,812 6,000 Total Operating Expenditures 823,687 795,771 860,572 863,045 886,067 894,050 Fixed Assets - 35,343 - 10,000 - 20,000 Internal Service Charges 378,862 408,178 354,865 349,450 349,450 363,718 TOTAL EXPENDITURES 2,093,578$ 2,151,993$ 2,200,334$ 2,259,748$ 2,232,638$ 2,310,304$ PUBLIC WORKS DEPARTMENT PARKS & LANDSCAPING 253 KEY SERVICES  Maintain all parks, trails, and open space areas in a safe, useable, 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  Provide assistance with community events, such as the Chamber of Commerce’s Art & Wine Festival, the Mustard Faire, the 4th of July event, and the Annual Village Tree Lighting  Provide for 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 PARKS & LANDSCAPING STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Public Works Director 0.20 0.20 0.20 0.20 0.20 Senior Civil Engineer - - - - - Assistant/Associate Engineer - - - - - Administrative Analyst I/II - - - - - Administrative Technician - - - - - Office Specialist II/III 0.50 0.50 0.50 0.50 0.50 Parks Maintenance Manager 0.95 0.95 0.95 0.95 0.95 Parks Maintenance Lead 1.00 1.00 1.75 1.75 1.75 Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III 5.75 5.75 5.00 5.00 5.00 Street Maintenance Manager - - - - - Street Maintenance Lead - - - - - Street Maintenance Specialist - - - - - Street Maintenance Worker I/II/III - - - - - TOTAL FTE's 8.40 8.40 8.40 8.40 8.40 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors - - - - - Maintenance Worker - - - - - Engineering Intern - - - - - GIS/Graphics Tech - - - - - Executive Assistant - - - - - TOTAL ANNUAL HOURS - - - - - PUBLIC WORKS DEPARTMENT PARKS & LANDSCAPING 254 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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 0 1 0 c.Turf removed and converted to landscape or hardscape for water conservation (in square feet):7,000 37,087 22,174 16,096 0 Maintain safety standards in parks and playgrounds. Protect Saratoga's natural beauty by maintaining parks and open space. Protect the environment through sustainable practices. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.12 13 Moved to Recreation Moved to Recreation Moved to Recreation 2.125 125 189 189 189 3.40 40 40 30 40 4.7 6 6 6 6 Number of sport user group agreements: Total acres of City parks maintained: Total number of new trees planted in City parks: Parks and Recreation Commission Meetings: PUBLIC WORKS DEPARTMENT VEHICLE & EQUIPMENT MAINTENANCE 255 VEHICLE & EQUIPMENT MAINTENANCE OVERVIEW The Vehicle & Equipment Maintenance Fund is operated as an Internal Service Fund to maintain all City vehicles and equipment in accordance with manufacturers’ recommendations and requirements, and to ensure all vehicles and equipment are safe and function well. Staff provides preventative maintenance and repair services; maintains the repair, ownership, warranty, and maintenance records of vehicle and equipment inventory; provides for regular cleaning of all vehicles in accordance with the City’s non -point source permit; maintains sufficient fuel supplies at all times; maintains records of fuel usage; and performs monthly operational tests of emergency generators. Mechanical and body work repairs are provided through auto and equipment shops and services. BUDGET HIGHLIGHTS Notable Budget Changes:  None 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 has remained steady at $275,000 for FY 2017/18. Repair costs are mitigated due to consistent maintenance practices for vehicles and equipment, and from regular assessments to determine if vehicles or equipment should be replaced. Accidents, though infrequent, are costly when they occur, therefore a contingency is built into the repairs and maintenance budget. A reduction in the cost of fuel has provided some relief in the last couple of years, but will increase about half way through FY 2017/18 due to added gas taxes from the Road Repair and Accountability Act of 2017 that goes into effect November 1, 2017. The Vehicle & Maintenance program chargeback is set slightly higher than operating expenditure to increase fund balance reserves in line with Council policy. Overall, this budg et supports Council’s objective to maintain vehicles and equipment in a safe, secure, sustainable, and cost effective manner. PUBLIC WORKS DEPARTMENT VEHICLE & EQUIPMENT MAINTENANCE 256 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Fleet Maintenance – The Vehicle & Equipment Maintenance program tracks vehicle and equipment repair and maintenance history. Staff will continue to refine maintenance schedules and recordkeeping activities to ensure all City vehicles & equipment are included in replacement schedules. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 10,427 36,350 115,565 165,950 161,916 172,873 Total Beginning Fund Balance 10,427$ 36,350$ 115,565$ 165,950$ 161,916$ 172,873$ Revenues Internal Service Charges 250,000 300,000 275,003 275,000 275,000 275,000 TOTAL REVENUES 250,000$ 300,000$ 275,003$ 275,000$ 275,000$ 275,000$ Operating Transfers In Transfer In - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ TOTAL SOURCE OF FUNDS 260,427$ 336,350$ 390,568$ 440,950$ 436,916$ 447,873$ USE OF FUNDS EXPENDITURES Salaries and Benefits 79,697 81,468 86,413 92,449 86,786 90,408 Operating Expenditures Materials & Supplies 58,215 43,384 41,888 61,500 44,511 61,500 Fees & Charges 5,249 5,265 6,384 6,000 5,957 6,000 Consultant & Contract Serv 37,007 44,258 42,175 70,000 77,704 50,000 Meetings, Training - - - - - - Fixed Assets - - - - - - Internal Service Charges 43,910 46,410 47,758 49,084 49,084 49,584 Total Expenditures 224,078$ 220,785$ 224,618$ 279,033$ 264,043$ 257,492$ Operating Transfers Transfers Out - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned 36,350 115,565 165,950 161,916 172,873 190,381 Total Ending Fund Balance 36,350$ 115,565$ 165,950$ 161,916$ 172,873$ 190,381$ TOTAL USE OF FUNDS 260,427$ 336,350$ 390,568$ 440,950$ 436,916$ 447,873$ PUBLIC WORKS DEPARTMENT VEHICLE & EQUIPMENT MAINTENANCE 257 KEY SERVICES  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 VEHICLE & EQUIPMENT MAINTENANCE STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Public Works Director - - - - - Senior Civil Engineer - - - - - Assistant/Associate Engineer - - - - - Administrative Analyst I/II - - - - - Administrative Technician - - - - - Office Specialist II/III 0.10 0.10 0.10 0.10 0.10 Parks Maintenance Manager 0.05 0.05 0.05 0.05 0.05 Parks Maintenance Lead - - 0.25 0.25 0.25 Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III 0.25 0.25 - - - Street Maintenance Manager 0.05 0.05 0.05 0.05 0.05 Street Maintenance Lead - - - - - Street Maintenance Worker I/II/III 0.25 0.25 0.25 0.25 0.25 TOTAL FTE's 0.70 0.70 0.70 0.70 0.70 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Engineering Inspectors - - - - - Maintenance Worker - - - - - Engineering Intern - - - - - GIS/Graphics Tech - - - - - Executive Assistant - - - - - TOTAL ANNUAL HOURS - - - - - PUBLIC WORKS DEPARTMENT VEHICLE & EQUIPMENT MAINTENANCE 258 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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): 17%17%17%17%17% Protect natural resources through sustainable practices. Provide safe and functional vehicles and equipment for City use. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.23 23 26 26 26 2.50 46 52 52 52 3.11 13 16 10 10 Number of vehicles maintained: Number of oil changes performed per year: Number of required smog checks performed per year: PUBLIC WORKS DEPARTMENT VEHICLE & EQUIPMENT REPLACEMENT FUND 259 VEHICLE & EQUIPMENT REPLACEMENT FUND OVERVIEW The Equipment Replacement Fund provides a consistent level of funding for the replacement of vehicle and equipment assets at the end of their life span. A replacement schedule for the City’s vehicles and equipment replacements over the next twenty years i s maintained on an ongoing basis, with estimated life spans and calculated replacement costs to determine funding needs each year. An annual funding level expected to allow for the scheduled replacement of vehicle and equipment assets as they reach the en d of their useful life is calculated to provide a smoothing of operating expenses over the years, and a more accurate reflection of the actual cost of operations through the life of the asset. With the high level of care and maintenance staff puts into the City’s vehicles, the replacement schedules reflect a longer than average life span than other agencies use. The City uses eight years for most vehicles and trucks, whereas other cities use five years for general purpose vehicles. In some cases a vehi cle 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. BUDGET HIGHLIGHTS Notable Budget Changes:  Replacement expenditure funding reflects the scheduled replacement of vehicles and equipment. To achieve an effective use of funds, replacement fund chargebacks are accumulated at a rate that will provide for current funding requirements, not grow to a full replacement funding reserve. Replacement funding schedules are adjusted on an ongoing basis as vehicle and equipment costs increase at faster or slower rates than anticipated, and lifespans often exceed the original timeframe. Public Works’ large backhoe/loader was eliminated from the replacement schedule a few years ago. After the winter storms in 2017, this decision was revisited, and it was determined to reinstate the large backhoe/loader replacement funding stream. To accommodate this change, the annual chargeback amount increased by $25,000, and is funded through the Streets and Parks divisions of Public Works. Replacement assets scheduled for FY 2017/18 are identified in the following schedule. Included in this list are six street vehicles, and equipment for paint striping, graffiti abatement, and pavement grinding. Staffing is not assigned to this program as the Internal Service Fund operates purely as a funding set-aside for vehicle and equipment replacements. PUBLIC WORKS DEPARTMENT VEHICLE & EQUIPMENT REPLACEMENT FUND 260 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Vehicle Replacement – Purchase replacement vehicles and equipment in accordance with the replacement schedule. Alternative Vehicle Assessment – Continue program assessment of available fuel alternative vehicles to determine usability, advantages, and cost-effectiveness in the City’s fleet. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 10,427 36,350 115,565 165,950 161,916 172,873 Total Beginning Fund Balance 10,427$ 36,350$ 115,565$ 165,950$ 161,916$ 172,873$ Revenues Internal Service Charges 250,000 300,000 275,003 275,000 275,000 275,000 TOTAL REVENUES 250,000$ 300,000$ 275,003$ 275,000$ 275,000$ 275,000$ Operating Transfers In Transfer In - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ TOTAL SOURCE OF FUNDS 260,427$ 336,350$ 390,568$ 440,950$ 436,916$ 447,873$ USE OF FUNDS EXPENDITURES Salaries and Benefits 79,697 81,468 86,413 92,449 86,786 90,408 Operating Expenditures Materials & Supplies 58,215 43,384 41,888 61,500 44,511 61,500 Fees & Charges 5,249 5,265 6,384 6,000 5,957 6,000 Consultant & Contract Serv 37,007 44,258 42,175 70,000 77,704 50,000 Meetings, Training - - - - - - Fixed Assets - - - - - - Internal Service Charges 43,910 46,410 47,758 49,084 49,084 49,584 Total Expenditures 224,078$ 220,785$ 224,618$ 279,033$ 264,043$ 257,492$ Operating Transfers Transfers Out - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned 36,350 115,565 165,950 161,916 172,873 190,381 Total Ending Fund Balance 36,350$ 115,565$ 165,950$ 161,916$ 172,873$ 190,381$ TOTAL USE OF FUNDS 260,427$ 336,350$ 390,568$ 440,950$ 436,916$ 447,873$ PUBLIC WORKS DEPARTMENT VEHICLE & EQUIPMENT REPLACEMENT FUND 261 KEY SERVICES  Accumulate and provide annual funding for asset replacement  Assess vehicles and equipment for proper replacement timing  Prepare cost effectiveness study for asset replacement program EQUIPMENT REPLACEMENT SCHEDULE Current Yr Current Asset Replacement Replacement Type/Program Asset #Purch Vehicle/ Equipment Life Purpose Cost Vehicles Facilities 118 2007 Siverado Long Bed 10 Maintenance Vehicle 38,000 Parks 116 2007 Silverado Long bed 10 Parks Vehicle 30,000 Parks 115 2007 Silverado Ext 11 Parks Vehicle 35,000 Streets 107 2006 Silverado 12 Streets Vehicle 35,000 Parks 108 2006 Colorado 12 Parks Vehicle 30,000 Code Compliance 109 2006 Colorado 12 Code Compliance Vehicle 30,000 Equipment Streets E001 1996 Paint Sprayer Graco 3500 20 Graffiti abatement 3,500 Streets E006 2001 Graco Line Lazzar III 5900 15 Roadway Paint Striper 8,500 Streets E007 2001 Graco Line Driver 15 Motorized Attachment 7,500 Streets E010 2004 Graco Line Lazzar IV 3900 12 Roadway Paint Striper 7,500 Streets E015 2001 Sase Scarifier 16 Pavement Grinder 13,200 238,200$ Note: Leased vehicles have an initial lease cost and subsequent monthly lease payments rather than an estimated replacement cost. PUBLIC WORKS DEPARTMENT LANDSCAPE & LIGHTING DISTRICTS 262 LANDSCAPE & LIGHTING DISTRICTS OVERVIEW The City maintains 29 Landscape and Lighting Districts and one Storm Drain District throughout the City with the consent of property owners living along or within the boundaries of the Districts. The Districts are funded through property tax assessments or through property-owner approved benefit assessments. Four of the City’s Districts are funded solely by property taxes, and another three Districts are funded by both property tax and benefit assessments. The remaining twenty-one are funded solely by benefit assessments. Those districts funded with property tax existed prior to the passage of Proposition 13 in 1978, which froze district assessment formulas built into the tax rates at the time of passage. As property tax funding alone was not sufficient for several of the Landscape & Lighting Districts, three districts approved a benefit assessment also be levied to augment funding. The benefit assessment-based Districts are exempt from Proposition 218 requirements requiring a 2/3 majority approval, unless an increase in the approved assessment rates are requested. Section 5 of Proposition 218 provides that the measure does not apply to assessments existing as of November 1996 if the assessments were “imposed pursuant to a petition signed by the per sons owning all of the parcels subject to the assessment at the time the assessment was initially imposed”. Consequently, the City is not required to conduct an election of the property owners unless the City is seeking to increase the annual assessment more than the amount provided for in the existing agreement. Since the passage of Proposition 218, the City ensures annual increases are built into the assessment agreements to allow for up to 5% of assessment increases. With operational costs continuing to increase each year, an annual increase enables the City to continue to provide the same level of services. Only two of the Districts established prior to the passage of Prop 218 do not currently have this allowance for annual increases built into the agreement. BUDGET HIGHLIGHTS Notable Budget Changes:  Assessment revenue increase from the addition of a new Storm Drain fund added during FY 2016/17 The Landscape & Lighting District Fund budget schedule presented on the following page is a summary of 29 separate funds. Each of the individual fund budgets include electricity and/or monthly landscaping service costs, and a pro-rated administrative fee for staffing administration and oversight, legal fees, and engineering services. Some of the fund budgets include water, tree maintenance, and repair expenses. The Landscape & Lighting District administrative service fee expense is, in turn, a revenue to the Parks & Landscape Maintenance program. The separate Fund assessments reflect the continued practice of growing fund balance to a level that provides sufficient cash flow, and/or is available for use in future years repairs and projects. An adequate reserve balance safeguards the City from paying for unplanned costs up front, and waiting for repa yment in following years. In compliance with the Regional Water Control Board permit requirements, the City created two new Clean Water Assessment Districts for private developments that met the threshold of mitigation. The Hill Avenue and Paramount Drive Developments are the first two zones of this kind for the City. Under the strict regulations, the City anticipates new districts will be added each fiscal year as development projects come in. PUBLIC WORKS DEPARTMENT LANDSCAPE & LIGHTING DISTRICTS 263 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES District Assessments – Staff will continue to closely monitor all Landscape & Lighting Assessment District Zones for appropriate service and funding levels, and will make a determination of whether the City should proceed with a vote on assessment increases for several of the districts that currently have negative fund balances. New District Formations – The Regional Water Control Board conditions development projects of a certain size to contain storm water infrastructure to protect water ways. These conditions require future inspection, maintenance and capital expenditures of which the City is required to perform. To fund these expenditures, the City creates assessment districts to manage property assessments and expenditures. While additional districts are expected to be created in the next fiscal year, they are addressed with a budget adjustment at the time the district is formed. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 621,947 733,836 867,648 1,005,796 915,878 1,062,956 Total Beg Fund Balance 621,947$ 733,836$ 867,648$ 1,005,796$ 915,878$ 1,062,956$ Revenues Property Taxes 211,010 232,659 248,037 228,560 259,633 231,007 L&L Assessments 306,844 323,031 322,693 394,173 390,596 419,755 Other Sources 3,453 10,793 29,097 2,278 8,028 4,856 Total Revenues 521,307$ 566,483$ 599,827$ 625,011$ 658,256$ 655,618$ TOTAL SOURCE OF FUNDS 1,143,254$ 1,300,319$ 1,467,475$ 1,630,808$ 1,574,134$ 1,718,574$ USE OF FUNDS Expenditures Operating Expenditures Materials & Supplies - - - - - - Fees & Charges 265,892 283,353 285,034 285,107 295,940 302,389 Consultant & Contracts 143,526 149,318 176,644 429,823 215,238 430,466 Total Operating Expenditures 409,418 432,671 461,679 714,930 511,179 732,855 Total Expenditures 409,418$ 432,671$ 461,679$ 714,930$ 511,179$ 732,855$ Ending Fund Balance Unassigned 733,836 867,648 1,005,796 915,878 1,062,956 985,719 Total Ending Fund Balance 733,831$ 867,648$ 1,005,796$ 915,878$ 1,062,956$ 985,719$ TOTAL USE OF FUNDS 1,143,249$ 1,300,319$ 1,467,475$ 1,630,808$ 1,574,134$ 1,718,574$ PUBLIC WORKS DEPARTMENT LANDSCAPE & LIGHTING DISTRICTS 264 ANNUAL DISTRICT ASSESSMENTS Number of Parcel Total Total Zone Assessment District Parcels Assessment Assessment Property Tax Lighting Districts 231 Village Lighting District 781 -$ -$ 76,244$ 232 Azule Lighting District 120 -$ -$ 35,404$ 233 Sarahills Lighting District 64 91.70$ 5,869$ -$ Landscape Districts 241 Arroyo de Saratoga Landscape District 250 115.75$ 28,938$ -$ 242 Bonnet Way Landscape District 41 126.00$ 5,166$ -$ 243 Carnelian Glen 20 230.15$ 4,603$ -$ 244 Cunningham/Glasgow Landscape District 31 317.35$ 9,838$ -$ 245 Fredericksburg Landscape District 85 83.02$ 7,057$ 880$ 246 Greenbriar Landscape District 176 137.42$ 24,186$ 6,460$ 247 Kerwin Ranch Landscape District 16 887.63$ 14,202$ -$ 248 Leutar Court Landscape District 9 499.78$ 4,498$ -$ 249 Manor Drive Landscape District 29 81.03$ 2,350$ 4,577$ 251 McCartysville Landscape District 48 339.73$ 16,307$ -$ 252 Prides Crossing Landscape District 864 93.00$ 80,352$ -$ 253 Saratoga Legends Landscape District 15 723.87$ 10,858$ -$ 254 Sunland Park Landscape District 200 106.85$ 21,370$ -$ 255 Tricia Woods Landscape District 9 279.33$ 2,514$ -$ 256 Allendale Landscape District 43 92.84$ 3,992$ -$ Landscape & Lighting Districts 257 Covina Landscape & Lighting District 192 163.24$ 31,343$ 271 Beauchamps Landscape District 55 221.16$ 12,164$ -$ 272 Bellgrove Landscape & Lighting District 94 664.76$ 62,487$ -$ 273 Gateway Landscape & Lighting District 22 733.88$ 16,145$ -$ 274 Horseshoe Landscape & Lighting District 53 267.60$ 14,183$ -$ 275 Quito Lighting District 698 -$ -$ 67,826$ 276 Tollgate Landscape & Lighting District 61 108.82$ 6,638$ -$ 277 Village Commercial Landscape District 132 -$ -$ 39,616$ 278 Westbrook Landscape & Lighting Dist 92 52.58$ 4,837$ -$ Storm Drain District 291 Hill Ave Storm Water District 5 762.00$ 3,810$ -$ 292 Paramount Court Storm Drain 7 3,721.14 26,048$ -$ 29 Assessment Districts 4,212 419,755$ 231,007$ RECREATION & FACILITIES DEPARTMENT 265 DEPARTMENT OVERVIEW The Recreation & Facilities Department contributes to the quality of life in Saratoga through a wide variety of diverse activities, services, and programs for people of all ages through both the Recreation and Teen Services divisions. In addition, the Department administers the Facility Rental program for community groups and the public at the City’s parks, Community Center, Warner Hutton House, and Prospect Center Buildings to provide the community with spaces to be active, spaces to create, spaces to imagine, and places to create community. The Department also oversees building maintenance for the various City facilities (City Hall offices, Corporation Yard, Theater/Council Chambers, Community Center, Warner Hutton House, Prospect Center Buildings, Saratoga Museum, McWilliams House, Book-Go-Round, and the Saratoga Library) to ensure a clean, safe, and attractive environment for residents and visitors. Recreational services provided by the department include classes, camps, trips, programs, and activities. The benefits of these programs include building self-esteem in children and providing them opportunities to build life skills for their future, adding more balance to the lives of residents, promoting physical fitness, providing opportunities for social interaction, helping to reduce stress, enhancing or learning new skills, helping to reduce loneliness, and promoting sensitivity to cultural diversity. By offering a variety of classes, camps, trips, pre-school programs, youth and teen activities, dance programs, and fee-based special events, the Department helps improve the quality of life, create a sense of community, and provides opportunities for residents to get to know their neighbors and live happier, healthier lives. The Recreation & Facilities Department’s goal is to provide safe, high quality recreation services at reasonable costs. The City continues to make strides toward reducing service costs in relation to revenues. Staff continues to assess program and activity costs in relation to the community’s interests and needs. While some programs and activities are not cost effective, it may be determined that community need is of greater importance. This is often the case with teen, youth, and senior programs. DEPARTMENT OBJECTIVES The Recreation Department, through its variety of service divisions, directly supports a number of the City Council’s Strategic Goals. Performance measures provide feedback on the Department attainment of these objectives. Council Strategic Goal Community Enrichment: Foster a community with an enriched and diverse culture and engaged community. Department Objectives  Enhance and promote healthier living in the community through providing a variety of high quality and enjoyable activities that are convenient for residents and help create an engaged and vibrant community  Develop and cultivate organizational and leadership potential in local teens through Youth Commission activities  Provide safe, affordable, clean, and enjoyable facilities for meetings, parties, receptions, and gatherings to enhance and promote quality of life RECREATION & FACILITIES DEPARTMENT 266 Council Strategic Goal City Leadership: Provide a proactive, responsible, inclusive, respectful, transparent, and trustworthy government dedicated to delivering effective high quality leadership for the community. Department Objectives  Promote civic engagement in Saratoga youth through Youth Commission sponsored community events  Develop community partnerships with positive interaction through recreation programs and services Council Strategic Goal Facility & Infrastructure: M aintain the City's facilities and public infrastructure in a safe, sustainable, and cost effective manner. Department Objectives  Provide safe, clean, cost effective facilities for community meetings, parties, receptions, and gatherings  Ensure City facilities are clean, safe, and maintained according to best practices  Mitigate risk and liability issues in City facilities  Follow environmentally friendly purchasing policies, sustainability and green building practices RECREATION & FACILITIES DEPARTMENT 267 BUDGET HIGHLIGHTS The Recreation and Facilities Department strives to meet a cost recovery target of 65% each year. This is a measurement of General Fund program revenues to expenditures. As Internal Service Funds are merely financing mechanisms and serve a separate purpose from the department’s recreational and facility rental activities, they are not included in the cost recovery analysis. The upgrade to the v.3 version of RecTrac and WebTrac registration software that was completed last April is expected to improve systems and increase efficiencies in the Department once training and implementation is completed, making the cost recovery target more attainable on an ongoing basis. The FY 2017/18 General Fund budget is expected to remain level with current year revenue s and expenditures in the Recreation and Teen programs, but reflects a small decrease from the prior year’s budgeted revenues and expenditures. There is some volatility in recreation revenues as the economy and competition are significant factors, whereas the Facility Rental program revenue is steady for most facilities. An exception is in the Prospect High School Fields as the fields will close for rehabilitation over the summer months of 2017, thereby affecting both FY 2016/17 and FY 2017/18 revenues an d expenses. An internal reorganization following the resignation of a Recreation Supervisor during FY 2016/17 led to a restructuring of the Supervisor position to a .75 FTE Lead Recreation Coordinator. This reduced salary expenses, and increased operational flexibility and oversight without increasing FTEs. The FY 2017/18 staffing levels will utilize additional temporary staff support for facility and program oversight. This allows for enhanced support for the department’s core functions, including the increasingly successful “in -house” youth camps and programs. With the City’s ongoing focus to implement citywide emergency event readiness, the Recreation & Facility Director, who is assigned part-time to the Emergency Preparedness program, will increase from .05 FTE to .30 FTE. In addition, the Director, who also functions as the City’s Risk Manager, has .30 FTE assigned to the Liability Program to oversee claims, insurance requirements, and maintain Risk Management best practices. Both the Facility Maintenance and Facility Furniture, Fixtures, and Equipment (FFE) Replacement activities are broken out from the recreation and facility rental services and activities and accounted for as Internal Service Fund programs. Internal Service Funds recognize costs on an ongoing basis through stabilized annual charges, thereby charging programs overhead costs and maintaining fiscal sustainability. The Facility Maintenance’s total program costs to support janitorial, repair, and maintenance functions are allocated to programs based on the square footage percentages the program uses, with the common area usage charged to the Non-Departmental program. The FFE replacement charges are allocated based on the applicability of the assets usage. This results in approximately 70% of the cost funded in the Non - Departmental program as the City’s facility infrastru cture primarily serves the general public rather than staff. Departmental programs fund 15% of the Furniture, Fixture and Equipment replacement costs indirectly through the Facility Maintenance ISF program charges. The remaining 15% is allocated to the Facility Rental program in recognition of the facility rental program’s direct link to rental income. 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 more fully recognize appropriate overhead costs. This practice allows the City to replace facility FFEs on a scheduled basis. RECREATION & FACILITIES DEPARTMENT 268 GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES – BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 17,799 9,837 12,008 8,900 15,298 10,500 Charge for Services 645,114 595,208 617,303 626,500 569,845 599,000 Rental Income 247,604 300,567 440,088 413,112 427,152 391,800 Other Sources 81 25 1 - 20 - TOTAL REVENUES 910,597$ 905,638$ 1,069,399$ 1,048,512$ 1,012,314$ 1,001,300$ EXPENDITURES Salaries and Benefits 667,895 662,642 677,759 733,880 683,349 653,132 Operating Expenditures Materials & Supplies 27,105 20,619 34,212 42,220 27,196 31,600 Fees & Charges 20,404 22,021 29,087 136,230 150,803 61,525 Consultants & Contracts 403,490 370,831 407,783 432,800 376,952 394,675 Meetings, Events, Training 1,428 2,119 2,366 2,550 2,302 5,400 Total Operating Expenditures 452,427 415,590 473,448 613,800 557,252 493,200 Fixed Assets - - - - - - Internal Service Charges 262,955 285,194 323,570 332,541 332,541 345,445 TOTAL EXPENDITURES 1,383,277$ 1,363,425$ 1,474,777$ 1,680,221$ 1,573,142$ 1,491,777$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Recreation Services 961,244 940,097 1,017,682 1,075,400 1,005,302 940,276 Teen Services 57,836 47,073 53,228 52,803 48,870 49,556 Facility Rentals 364,197 376,256 403,867 552,018 518,970 501,946 TOTAL GENERAL FUNDS 1,383,277$ 1,363,425$ 1,474,777$ 1,680,221$ 1,573,142$ 1,491,777$ INTERNAL SERVICES FUNDS Facility Maintenance 817,506 813,842 804,049 900,766 850,535 859,531 Facility FFE Replacement - - 40,778 162,000 40,853 466,100 TOTAL INTERNAL SERVICES 817,506$ 813,842$ 844,827$ 1,062,766$ 891,388$ 1,325,631$ TOTAL EXPENDITURES 2,200,783$ 2,177,268$ 2,319,604$ 2,742,986$ 2,464,530$ 2,817,408$ RECREATION & FACILITIES DEPARTMENT 269 DEPARTMENTAL ORGANIZATION CHART Recreation & Facilities Director 1.0 FTE Recreation Supervisor 1.0 FTE Recreation Coordinator Lead .70 FTE Recreation Coordinator 1.0 FTE Facility Coordinator .60 FTE Recreation Coordinator 1.0 FTE Facility Manager 1.0 FTE Facility Maintenance Lead 1.0 FTE Facility Maint Worker 1.0 FTE RECREATION & FACILITIES DEPARTMENT 270 RECREATION & FACILITIES DEPARTMENT STAFF RECREATION & FACILITIES STAFF – BY PROGRAM City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director 0.70 0.65 0.65 0.65 0.40 Senior Recreation Supervisor - - - - - Recreation Supervisor 1.00 1.00 0.90 1.90 1.00 Recreation Coordinator - Lead - - - - 0.70 Recreation Coordinators 2.00 2.00 1.85 0.85 2.00 Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist II/III 1.00 1.00 1.00 1.00 - Facility Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Facility Maintenance Lead 1.00 1.00 1.00 1.00 1.00 Facility Maintenance Worker I/II/III 2.00 2.00 1.00 1.00 1.00 TOTAL FTE's 9.30 9.25 8.00 8.00 7.70 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents 1,500 1,750 1,900 1,900 2,949 Recreation Leaders 3,335 3,300 2,004 2,004 2,178 Graphic Design Assistant - - 850 - - Recreation Intern - - 480 - - Asst Recreation Coordinator - - - 1,000 280 TOTAL ANNUAL HOURS 4,835 5,050 5,234 4,904 5,407 City Staff by Program 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded Recreation Services 3.85 3.85 3.55 3.55 3.35 Teen Services 0.30 0.25 0.30 0.25 0.30 Facililty Rentals 1.50 1.50 1.30 1.35 1.35 Building Maintenance 3.65 3.65 2.85 2.85 2.70 Total Recreation Staff 9.30 9.25 8.00 8.00 7.70 Staff allocations in other Department Programs Non-Departmental: Risk Management 0.30 0.30 0.30 0.30 0.30 Public Safety: Emergency Preparedness - 0.05 0.05 0.05 0.30 TOTALS 9.60 9.60 8.35 8.35 8.30 The Recreation & Facilities Departmental Staff schedule includes General Fund and Internal Services staffing assigned within this department. The .30 FTE of the Recreation & Facilities Director's FTE assigned to the Risk Liability division in the Non-Departmental section, and .30 FTE assigned to the Emergency Preparedness division in the Public Safety Department are not reflected in the Department's FTE total, but are reflected above in the Total Staff - by Program schedule. RECREATION & FACILITIES DEPARTMENT RECREATION SERVICES 271 RECREATION SERVICES OVERVIEW Recreation Services plans, organizes, schedules, promotes, supervises, and evaluates over 1,200 classes and activities per year. This involves managing approximately 61 independent contractors, and offering over 9,000 hours of activities at 24 different parks and facilities, offering a City-run camp program, planning 22 excursions and trips per year, conducting monthly e-mail and social media promotional campaigns, and publishing full color recreation program Activity Guides that are mailed to all residents and non-resident users. In addition, Recreation Services provides an independently contracted preschool program five days a week; works cooperatively with West Valley College, Redwood Middle School, Los Gatos – Saratoga Recreation (LGS), the City of Campbell, and Saratoga High School for use of their facilities. Recreation Services provides Health and Wellness and Arts and Enrichment programs with classes, workshops, camps, seminars, demonstrations, and activities. BUDGET HIGHLIGHTS Notable Budget Changes  Budgeted revenues and expenditures decreased, proportionate with a decrease in class program participation  Recreation Services salaries & benefits were reduced with an internal reorganization  Excursion costs are expected to increase slightly with a corresponding increase in expenses due to growing costs of travel, meals, and entertainment trips. The customer base remains steady The Recreation Services program has four program revenue sources to support services: excursio n fees, classes and special program fees, in-house camp programs (summer, winter, and spring), and advertisements in the Recreation Activity Guide. Recreation revenues have seen a decline in recent years due to lower class participation, however camps and excursions remain strong and continue to increase as staff strives to grow the customer base with expanded and popular offerings. Staff is planning additional marketing to targeted populations for all programs. Staff is also pursuing additional partnershi ps and collaboration with other agencies such as the City of Campbell, the City of Cupertino, LGS Recreation, and private contract providers. Ongoing expenditures in the Recreation Services budget include class instructors, excursion costs, materials and supplies for camps and operations, recreation brochure printing, mailing costs, credit card fees, off-site facility rentals, and annual license and support costs for the Recreation Department’s RecTrac system. Class revenue is tied directly to the cost for instructors as each class contract identifies the proportion of class revenue the instructor receives. The remaining ongoing expenditures are mainly for operational supplies and internal service charges. As a cost saving measure this year, the spring and summer activity guides will be combined to reduce publishing costs and focus on earlier camp registrations. In FY 2016/17, with two staff members leaving for other employment, the Department re-evaluated staffing needs, and reorganized positions, both for cost savings and efficiencies. RECREATION & FACILITIES DEPARTMENT RECREATION SERVICES 272 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Recreation Services – Recreation Department staff will enhance and promote recreation in the City of Saratoga by providing a variety of high quality, safe, affordable, and enjoyable activities that are convenient for residents. Staff plans a continuing audit and assessment of activities in FY 2017/18 to determine the community’s desire for class offerings and identify inadvertent class duplication and/or gaps in services with competing recreation providers. Fiscal Stewardship - Recreation strives to contribute to the strength of the City’s fiscal health and stability by creating a desirable environment in which independent contract instructors conduct entrepreneurial revenue-generating events, activities, and contract classes. Staff will continue to: 1) actively recruit contract service providers, solicit partnerships, and develop collaborations; and 2) conduct activities that serve the needs of the residents of Saratoga; and; 3) encourage economic development by providing facility space and marketing / promotional assistance to recreation service providers. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 17,799 9,837 12,008 8,900 15,298 10,500 Charge for Services 644,413 593,733 615,237 621,500 566,433 595,500 Rental Income - - - - - - Other Sources - - - - - - TOTAL REVENUES 662,212$ 603,570$ 627,245$ 630,400$ 581,731$ 606,000$ EXPENDITURES Salaries and Benefits 435,727 444,981 467,147 501,220 482,887 397,289 Operating Expenditures Materials & Supplies 20,419 16,160 26,679 28,100 21,161 19,300 Fees & Charges 19,803 21,752 28,922 25,185 34,851 24,025 Consultants & Contracts 403,490 370,354 405,629 430,000 375,090 393,675 Meetings, Events, Training 1,428 2,057 2,292 1,550 1,969 4,600 Total Operating Expenditures 445,140 410,322 463,521 484,835 433,071 441,600 Fixed Assets - - - - - - Internal Service Charges 80,378 84,794 87,014 89,345 89,345 101,387 TOTAL EXPENDITURES 961,244$ 940,097$ 1,017,682$ 1,075,400$ 1,005,302$ 940,276$ RECREATION & FACILITIES DEPARTMENT RECREATION SERVICES 273 KEY SERVICES  Plan, organize, schedule, promote, supervise, and evaluate program classes, activities, and events for all ages  Publish recreation activity guides, fliers, brochures, and engage in e-mail and social media campaigns, etc. to market and promote recreation classes, camps, and activities  Provide approximately 1,600 classes, camps, etc. and offer 22 excursions per year  Provide an independently operated community preschool program 5 days a week  Provide Health and Fitness and Arts and Enrichment programs with age-appropriate activities that build developmental assets for youth and adults that will give them life skills for the future  Collaborate with local schools, partner agencies, and community based organizations to provide activities RECREATION SERVICES STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director 0.30 0.30 0.30 0.30 0.20 Recreation Supervisor 0.90 0.90 0.85 1.65 0.85 Recreation Coordinator - Lead - - - - 0.70 Recreation Coordinators 1.90 1.90 1.65 0.85 1.60 Facility Coordinator - - - - - Office Specialist II/III 0.75 0.75 0.75 0.75 - Facility Maintenance Manager - - - - - Facility Maintenance Lead - - - - - Facility Maintenance Worker I/II/III - - - - - TOTAL FTE's 3.85 3.85 3.55 3.55 3.35 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents - - - - - Recreation Leaders 3,335 3,300 2,004 2,004 2,178 Graphic Design Assistant - - 850 - - Recreation Intern - - 480 - - Asst Recreation Coordinator - - - 1,000 280 TOTAL ANNUAL HOURS 3,335 3,300 3,334 3,004 2,458 RECREATION & FACILITIES DEPARTMENT RECREATION SERVICES 274 PERFORMANCE OBJECTIVES & MEASURES ACTIVITY & WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Offer a variety of new and ongoing recreation activities: 1,190 1,089 1,214 1,200 1,200 b.Percentage of recreation class participants which agreed recreation activities contribute to healthy lifestyle and personal growth: 100%100%100%100%100% c.Number of Recreation Activity Guides published each year which include "Healthy Lifestyle" educational information: 4 4 4 4 3 2. a.Number of independent instructors providing quality recreation activities: 55 60 56 61 60 b.Percentage of Saratoga "households" using online registration software to register for recreation activites: 22%33%54%29%35% c.Percentage of recreation class participants which agreed activities met or exceeded expectations:100%89%89%100%100% Promote healthy lifestyles and personal growth through organized recreation activities. Partner with the community to improve the quality of life for children, teens, adults, and families. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.7,107 8,900 8,959 5,699 7,500 2.5,675 7,000 7,445 5,818 6,500 3.896 1,250 1,518 1,319 1,300 Number of recreation activity hours offered: Number of online registrations: Number of participant registrations: RECREATION & FACILITIES DEPARTMENT TEEN SERVICES 275 TEEN SERVICES OVERVIEW Staff assigned to Teen Services manages teen programs and activities as well as the Youth Commission program. The City Council re-established the Youth Commission in 1988 to play a key role in City-sponsored programs for Teens in Saratoga. The Youth Commission is an eleven (11)-member commission with a focus to enhance the well-being of local youth, offer positive influences to teens, and provide opportunities for youth involvement in the community. The Commission is comprised of middle and high school students appointed by the City Council for two-year terms, with the commissioners serving as teen leaders, communicating with the City Council on current youth issues, and planning, promoting, and participating in community events, fundraisers, social, and educational activities. Staff members oversee and guide all these activities. Teen Services staff and the Youth Commission work together to: sponsor teen -oriented activities; administer the Youth Commission training; and sponsor three to four special events (i.e. Color Dash, Teen Dances) each year. Teen Services also provides supervision and oversight of teen volunteer opportunities and the Leadership in Training program to help develop citizenship skills for youth. The goal of the Teen Services program is to provide education, community involvement, and recreation opportunities for all teens in Saratoga, regardless of school or district. The connection with the Youth Commission helps to provide an opportunity and training ground for teens to serve as positive role models in the community: to encourage teens throughout the City to become active, contributing citizens; and, to function as a training camp for future community leaders by developing the youth’s leadership skills. BUDGET HIGHLIGHTS Notable Budget Changes  Revenue levels were reduced slightly, reflecting limited collections from the Color Run activity Revenue from for the Teen Services program is minimal, coming from Youth Commission generated programs, such as the Color Run or dances. The Teen Services program is primarily limited to staff time and expenses for overseeing the Youth Commission, and the summertime Leadership In Training camp. Operating expenditures are minimal, however with Council’s request that Youth Commission members attend community events, funding for materials, supplies, and printing increased in FY 2016/17, and continues in the FY 2017/18 budget. The Youth Commission has a separate funding account for their activities and expenses in the Youth Commission’s budget, located in the Commission program budget. RECREATION & FACILITIES DEPARTMENT TEEN SERVICES 276 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Leadership Training – Teen Services will oversee the Youth Commission’s participation in the annual CPRS District IV YAC (Youth Advisory Conference) Attack networking social and collaborate with our neighboring cities of Cupertino, Monte Sereno, Los Gatos, and Campbell’s Youth Commissions during FY 2017/18 to sponsor special events for local teens, build developmental assets, and provide leadership training and opportunities for teens and youth in Saratoga. Community Outreach – Teen Services will increase efforts to reach out to young Saratogans; to bring a wider representation of schools to Youth Commission sponsored events (e.g. Walk One Week), provide information about the Commission while participating in downtown events such as St. Paddy’s Day, Tree Lighting Ceremony, Witchy Walk-a-Bout, and to partner with the community to provide opportunities for teens and youth to become more involved and connected with their hometown. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Charge for Services 701 1,475 2,066 5,000 3,412 3,500 Other Sources 81 25 1 - 20 - TOTAL REVENUES 782$ 1,500$ 2,066$ 5,000$ 3,432$ 3,500$ EXPENDITURES Salaries and Benefits 45,437 33,939 37,733 32,615 32,097 29,788 Operating Expenditures Materials & Supplies 1,078 1,893 3,602 6,870 2,772 6,650 Fees & Charges 78 104 - 100 135 150 Consultants & Contracts - - - 300 1,348 - Meetings, Events, Training - - - 400 - 200 Total Operating Expenditures 1,156 1,997$ 3,602$ 7,670$ 4,255$ 7,000$ Internal Service Charges 11,243 11,137 11,893 12,518 12,518 12,768 TOTAL EXPENDITURES 57,836$ 47,073$ 53,228$ 52,803$ 48,870$ 49,556$ RECREATION & FACILITIES DEPARTMENT TEEN SERVICES 277 KEY SERVICES  Provide activities and special events for pre-teens and teens in the community  Provide volunteer opportunities and a “training ground” for teens to learn leadership skills and become contributing citizens to the community  Liaison with Youth Commission to communicate the interests of the youth population to the City  Build the developmental assets of the youth of Saratoga through ongoing evaluations and assessments of the needs of local teens to determine new programming  Provide supervision and oversight of teen volunteer opportunities TEEN SERVICES STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director 0.10 0.05 0.05 0.05 - Recreation Supervisor 0.10 0.10 0.05 0.20 0.10 Recreation Coordinator - Lead - - - - - Recreation Coordinators 0.10 0.10 0.20 - 0.20 Facility Coordinator - - - - - Office Specialist II/III - - - - - Facility Maintenance Manager - - - - - Facility Maintenance Lead - - - - - Facility Maintenance Worker I/II/III - - - - - TOTAL FTE's 0.30 0.25 0.30 0.25 0.30 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents - - - - - Recreation Leaders - - - - - Graphic Design Assistant - - - - - Recreation Intern - - - - - Asst Recreation Coordinator - - - - - TOTAL ANNUAL HOURS - - - - - RECREATION & FACILITIES DEPARTMENT TEEN SERVICES 278 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of time Recreation staff member attends Youth Commission meetings: 100%100%100%100%100% b.Percentage of teens in satisfaction survey which agree recreation activities met or exceeded expectations in improving quality of life: 100%100%100%100%100% c.Provide teen volunteer opportunity hours:1,000 2,760 2,869 1,606 2,000 2. a.Percentage of teens participating in satisfaction survey which agreed recreational activities contributed to healthy lifestyle and personal growth: 100%100%100%100%100% b.Practice and contribute to "Developmental Assets" for teens as measured by survey: 100%100%100%100%100% Partner with the community to improve the quality of life for teens. Promote healthy lifestyles and personal growth through organized recreation activities. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.1,100 3,000 3,000 1,393 2,100 2.19 27 40 59 40 Number of teen-age volunteer service hours offered: Number of teen-age volunteers supervised: RECREATION & FACILITIES DEPARTMENT FACILITY RENTALS 279 FACILITY RENTALS OVERVIEW The Facility Rentals program manages the City’s Facility Rental program for private individuals, non-profit, or for-profit-based groups to use for receptions, parties, events, meetings, workshops, or other community activities. Rental facilities include rooms of various sizes and uses in the Community Center and accessory buildings, the Warner Hutton House, the Saratoga Prospect Center complex, the Civic Theater, and numerous City park facilities. While striving for cost recovery, the focus is to provide clean, safe, and affordable space to the community for social, religious, educational, family and community groups. Rental discounts are provided to residents and non-profit groups in the effort to encourage community events. In FY 2015/16, the program expanded to include managing reservations of Saratoga sports fields. Sports groups su ch as AYSO soccer and Little League baseball now reserve field space for their activities at Congress Springs Park, Kevin Moran Park, and El Quito Park through the Facility Coordinator. BUDGET HIGHLIGHTS Notable Budget Changes:  A small increase in facility rental revenue is expected due to hourly rate increases. Rental rates continue to be at or under comparable rentals, with discounts given to residents and non -profit groups  A $3,000 expenditure is planned to build a few standing garden beds for seniors at the community garden Facility Rental Program revenues are expected to bring in about $110,000 for Community Center rentals, another $5,200 for Senior Center rentals, and $16,000 for the Warner Hutton House. The Civic Center Theater will bring in approximately $44,000 and the Saratoga Prospect Center buildings another $85,000. Revenue projections for the Saratoga Prospect Center had increased in recent years at the Community Center, but the loss of a large church group this year will negatively impact revenues. Plot rentals at the Community Garden at El Quito Park, now exclusively reserved for Saratoga residents, are expected to bring in $3,800, and day-use rentals from the City’s parks (exclusive of sport user agreements) will bring in around $23,000 over the year. In FY 2017/18, rental fees for the use of the Sports Fields are expected to total $104,000 for the year, a decrease due to rainy weather and the closure of the Prospect High School fields for a month. The Joint Use Agreement with Campbell Union School District for the use of Prospect High School fields will expire in FY 2017/18. Expenditures for this program reflect salary and benefit costs for the Facility Coordinator to market and rent the facilities, and portions of other Recreation & Facilities Department staff time to assist with oversight and facility duties. Temporary Facility Attendant staff are utilized for supervising the City’s facilities during evening and weekend events. The temporary Facility Attendant staffing expen ses have increased as rental activities at Saratoga facilities have increased. Direct costs for this program are minimal, with only $7,600 budgeted for miscellaneous operational supplies and services. Field Rental Fees for Prospect High School adds another $37,000 into the expenditure budget, and Internal Service charges add almost $232.000. Facility Rentals accounts for a large percentage of building maintenance and facility furniture, fixture, and equipment replacement expenses as the available square footage and infrastructure are large. These costs continue to grow as building maintenance costs increase each year. The remainder of ongoing facility expenditures typically hold steady. RECREATION & FACILITIES DEPARTMENT FACILITY RENTALS 280 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Environmental Sustainability – The Facility Rental division will continue implementing environmental best practices to promote sustainability, educating and encouraging all users to follow existing green building practices, including reducing, reusing, and recycling for facility and park rentals. Facility Rentals - Recreation & Facilities Department staff will provide high quality, safe, affordable, clean, and enjoyable facilities that are convenient to residents for meetings, parties, receptions, and gatherings in a safe, sustainable, and cost effective manner. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits - - - - - - Charge for Services - - - - - - Rental Income 247,604 300,567 440,088 413,112 427,152 391,800 Other Sources - - - - - - TOTAL REVENUES 247,604$ 300,567$ 440,088$ 413,112$ 427,152$ 391,800$ EXPENDITURES Salaries and Benefits 186,732 183,722 172,879 200,045 168,365 226,055 Operating Expenditures Materials & Supplies 5,609 2,566 3,931 7,250 3,262 5,650 Fees & Charges 523 165 165 110,945 115,817 37,350 Consultant & Contracts - 477 2,154 2,500 514 1,000 Meetings, Events, Training - 63 74 600 333 600 Total Operating Expenditures 6,132 3,271 6,325 121,295 119,926 44,600 Internal Service Charges 171,334 189,263 224,663 230,678 230,678 231,291 TOTAL EXPENDITURES 364,197$ 376,256$ 403,867$ 552,018$ 518,970$ 501,946$ RECREATION & FACILITIES DEPARTMENT FACILITY RENTALS 281 KEY SERVICES  Provide safe, pleasant, and clean facilities for use by the public and for key City services (e.g. meetings)  Support tenant needs in the rented buildings  Enforce environmentally friendly purchasing and sustainability policies  Provide safe and affordable venues for community use at the Saratoga Community Center, Civic Theater, Senior Center, and Prospect Center facilities FACILITY RENTALS STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director 0.05 0.05 0.05 0.05 0.10 Recreation Supervisor - - - 0.05 0.05 Recreation Coordinator - Lead - - - - - Recreation Coordinators - - - - 0.20 Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist II/III 0.25 0.25 0.25 0.25 - Facility Maintenance Manager 0.10 0.10 0.10 0.10 0.10 Facility Maintenance Lead 0.10 0.10 0.10 0.10 0.10 Facility Maintenance Worker I/II/III 0.40 0.40 0.20 0.20 0.20 TOTAL FTE's 1.50 1.50 1.30 1.35 1.35 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents 1,500 1,750 1,900 1,900 2,949 Recreation Leaders - - - - - Graphic Design Assistant - - - - - Recreation Intern - - - - - Asst Recreation Coordinator - - - - - TOTAL ANNUAL HOURS 1,500 1,750 1,900 1,900 2,949 RECREATION & FACILITIES DEPARTMENT FACILITY RENTALS 282 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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%100%100%100% b.Percentage of customers which agreed facilities met or exceeded expectations: 100%100%100%100%100% 2. a.Percentage of surveyed visitors which agreed the facility was clean, comfortable, and safe: 100%100%100%100%100% 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. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.725 800 950 726 800 2.16,900 18,000 18,110 6,500 14,500 3.$197 $200 $215 $215 $200 4. In Public Works In Public Works 0 7 0 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: Number of sport user groups agreements: RECREATION & FACILITIES DEPARTMENT FACILITY MAINTENANCE FUND 283 FACILITY MAINTENANCE OVERVIEW Facility Maintenance provides services to ensure City facilities are clean, safe and functional for the general public and employee use. This program 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). Facility Maintenance staff plans, schedules, and manages minor and major building facility maintenance, repair, and improvement projects. The Facility Maintenance staff ensures the City’s facilities are in a clean, safe, and usable condition at all times for employees and the general public. Custodial services such as vacuuming, trash removal, window washing, restroom cleaning, carpet cleaning, and floor stripping and sealing, are all on a regular schedule. Regular preventative maintenance services are also 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 monitors citywide facility expenses such as water, sewer, electricity and natural gas utilities, maintenance, and janitorial su pplies. City departments are charged an allocated amount to recognize the cost associated with the custodial and building maintenance to more fully account for operational expenses associated with providing these services. BUDGET HIGHLIGHTS Notable Budget Changes:  Contract janitorial services increased by $9,000  Internal Service Fund chargebacks increased by $25,000 to offset operational increases With the implementation of Internal Service Funds in the FY 2007/08 budget, the Facility Maintenance program incorporated staffing and expenses associated with facility custodial and maintenance services, and the revenues earned from charging back to the departments into one cost center program. With ten years of actual data, only minor revisions are necessary each fiscal year, and typically pertain to increasing contract services. For FY 2017/18, the janitorial contract was re-bid, and all vendors came in higher than the previous contract. The Internal Service Fund charge-backs were increased this fiscal year due to ongoing facility maintenance increases from aging facilities, increases in usage, and service cost increases. Program expenditures include ongoing facility supplies, utility and janitorial expenses, and contract services for maintenance and repairs. Continued efforts to “go green” are also reflected in the costs of maintenance supplies and equipment, as biodegradable supplies often are more expensive. A recent green effort that installed eight EV Stations in the City has necessitated the addition of a $6,000 budget for anticipated maintenance costs. The addition of a fast charge EV station at the Library this fiscal year will increase this amount in following years. Another notable contributor to expenditure increases over the last couple of years is the new State legislation requiring Department of Industrial Relations (DIR) registration for all contracts over $1,000, as well as prevailing wage and certified payroll requirements on some projects. These costly and cumbersome paperwork requirements have in effect eliminated many small, lower cost firms from providing services to the City, and increased costs for those firms who do comply with the new requirements. RECREATION & FACILITIES DEPARTMENT FACILITY MAINTENANCE FUND 284 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Facility and Infrastructure Project Management – Facility staff will oversee planned facility improvement projects to ensure City facilities are clean, safe, and maintained according to best practices. Planned projects include new flooring and partitions in the Administrative Services area, new stage lighting and the boiler and duct work replacement in the Civic Theater, and as needed, the replacement of EV station heads. A new Fast Charge EV head will be installed in the Saratoga Library parking lot, with a scheduled opening in late summer. Environmental Sustainability - Staff will continue ongoing energy savings projects such as installing energy saving furnaces and HVAC units in City buildings, energy efficient appliances at the Community and Senior Center (oven and dishwasher) and Prospect Center (dishwasher), and maintain EV charging stations in the City. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 184,901 199,869 288,697 391,087 391,087 474,976 Total Beginning Fund Balance 184,901$ 199,869$ 288,697$ 391,087$ 391,087$ 474,976$ Revenues Other Sources 7,474 7,299 6,439 4,000 9,424 - Internal Service Charges 825,000 875,000 900,001 925,000 925,000 925,000 Total Revenues 832,474$ 882,299$ 906,440$ 929,000$ 934,424$ 925,000$ Operating Transfers In Transfers In - - - - - - Total Operating Transfers In -$ -$ -$ -$ -$ -$ TOTAL SOURCE OF FUNDS 1,017,375 1,082,168 1,195,136 1,320,087 1,325,511 1,399,976 USE OF FUNDS Expenditures Salaries and Benefits 481,910 458,354 415,894 416,955 432,494 386,544 Operating Expenditures Materials & Supplies 40,244 44,803 43,515 57,050 42,770 53,800 Fees & Charges 130,680 144,549 141,390 156,300 144,494 152,400 Consultants & Contracts 87,809 82,790 99,870 168,500 129,809 160,000 Meetings, Events, Training 298 800 - 1,000 8 1,000 Fixed Assets - - - - - - Internal Service Charges 76,565 82,546 103,380 100,961 100,961 105,787 Total Expenditures 817,506$ 813,842$ 804,049$ 900,766$ 850,535$ 859,531$ Ending Fund Balance Unassigned 199,869 268,326 391,087 419,322 474,976 540,445 Total Ending Fund Balance 199,869$ 268,326$ 391,087$ 419,322$ 474,976$ 540,445$ TOTAL USE OF FUNDS 1,017,375$ 1,082,168$ 1,195,136$ 1,320,087$ 1,325,511$ 1,399,976$ RECREATION & FACILITIES DEPARTMENT FACILITY MAINTENANCE FUND 285 KEY SERVICES  Provide buildings that are clean, safe, and usable for the public and City employees  Follow environmentally friendly purchasing policies, sustainability, and green building practices  Maintain facilities on a regular schedule to provide efficient and cost effective maintenance FACILITY MAINTENANCE STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director 0.25 0.25 0.25 0.25 0.10 Recreation Supervisor - - - - - Recreation Coordinator - Lead - - - - - Recreation Coordinators - - - - - Facility Coordinator - - - - - Office Specialist II/III - - - - - Facility Maintenance Manager 0.90 0.90 0.90 0.90 0.90 Facility Maintenance Lead 0.90 0.90 0.90 0.90 0.90 Facility Maintenance Worker I/II/III 1.60 1.60 0.80 0.80 0.80 TOTAL FTE's 3.65 3.65 2.85 2.85 2.70 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded Facility Attendents - - - - - Recreation Leaders - - - - - Graphic Design Assistant - - - - - Recreation Intern - - - - - Asst Recreation Coordinator - - - - - TOTAL ANNUAL HOURS - - - - - RECREATION & FACILITIES DEPARTMENT FACILITY MAINTENANCE FUND 286 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Percentage of surveyed visitors who agreed the facilities are clean, comfortable, and safe: 100%100%100%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% 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. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.3,400 3,400 3,560 3,600 3,500 2.10 10 10 10 10 3.4 4 4 4 4 4.48 48 48 42 48 Number of work orders completed: Setup and takedown of Council Chamber dias: Maintain AED units on a monthly basis: Refinish wood floors annually: RECREATION & FACILITIES DEPARTMENT FURNITURE, FIXTURES & EQUIPMENT REPLACEMENT FUND 287 FURNITURE, FIXTURES & EQUIPMENT OVERVIEW The Facility FFE Replacement Internal Service Fund (ISF) was added in FY 2015/16 in recognition that the replacement of facility components is ongoing, and should be treated similarly to how the City plans for Technology Equipment or Vehicle replacements, or even how private businesses depreciate furniture or equipment over the years or pay Triple Net charges in a commercial property rental. The use of a steady annual charge helps to smooth the irregular cost and timing of large facility equipment purchase s over the years, as well as provide a more accurate cost of operations on an ongoing basis. The replacement fund requires an annual charge to the appropriate operational programs based on a program’s share of asset use, the asset’s estimated life spa n, and the estimated replacement cost. These costs are allocated out to the General Fund’s Facility Rental and Non -Departmental Programs, and to the Internal Service Fund’s Facility Maintenance Program. 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 the facility asset will be replaced on an ongoing basis, the new equipment is added to the department’s replacement schedule list, and replacement charges would be adjusted for outgoing years. The Replacement Fund’s annual charges accumulate over time to fund the replacement of items at the end of their life cycle. Facility replacements include building equipment such as heating and cooling units, furniture, or facility equipment like audio/visual systems. Replaceme nts are those attachable or installed assets that make a building useful to its occupants, such as flooring, windows, plumbing and electrical fixtures. BUDGET HIGHLIGHTS Notable Budget Changes:  FY 2017/18 scheduled replacement costs are budgeted at $466,100, with $290,000 of the funds for the replacement of the Theater/Council Chamber’s boiler and roof top duct work. The City’s long-term replacement plan accumulates funding on an ongoing basis – meaning replacement costs are not fully funded at any point in time. Instead, the rolling funding schedule allows scheduled assets to be purchased as needed, with annual funding accumulated and held for the next round of replacement assets. Careful timing is required to ensure asset replacement costs are fully assessed over the life of the assets, and replacement purchases timed as funding becomes available. The annual funding charge -backs are set at $200,000, as this level of funding will provide adequate resources to purchase and replace identified facility assets for many years. The long-term replacement plan is reassessed each year to include re-assessed replacement cost values, delays or expedited replacements, new assets, or the addition of newly identified assets. Replacement funding programmed to be utilized in FY 2017/18 includes several items carried forward from the prior year: furniture and flooring replacement in the Administrative Services area, Warner Hutton House furniture, a gas furnace in the Public Works engineering office, and funding to replace EV Station charging heads as needed. Newly added replacement items include: stage lighting, and the boiler and roof-top duct work in the Civic Theater/Council Chambers. RECREATION & FACILITIES DEPARTMENT FURNITURE, FIXTURES & EQUIPMENT REPLACEMENT FUND 288 GENERAL FUND REVENUES AND EXPENDITURES KEY SERVICES  Identify and track facility furniture, fixtures, and equipment  Accumulate and provide annual funding for asset replacements  Assess condition of furniture, fixtures, and equipment for proper replacement timing  Identify and procure best solution equipment 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Designated - - - - - - Unassigned - - - 339,222 339,222 498,369 Total Beginning Fund Balance -$ -$ -$ 339,222$ 339,222$ 498,369$ Revenues Other Sources - - - - - - Internal Service Charges - - 200,000 200,000 200,000 200,000 Total Revenues -$ -$ 200,000$ 200,000$ 200,000$ 200,000$ Operating Transfers In Transfer In from General Fund - - - - - - Transfer In from CIP - - 180,000 - - - Total Operating Transfers In -$ -$ 180,000$ -$ -$ -$ TOTAL SOURCE OF FUNDS -$ -$ 380,000$ 539,222$ 539,222$ 698,369$ USE OF FUNDS Expenditures Operating Expenditures - - Fixed Assets - - 40,778 162,000 40,853 466,100 Total Expenditures -$ -$ 40,778$ 162,000$ 40,853$ 466,100$ Operating Transfers Transfer Out to General Fund - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned - - 339,222 377,222 498,369 232,269 Total Ending Fund Balance -$ -$ 339,222$ 377,222$ 498,369$ 232,269$ TOTAL USE OF FUNDS -$ -$ 380,000$ 539,222$ 539,222$ 698,369$ RECREATION & FACILITIES DEPARTMENT FURNITURE, FIXTURES & EQUIPMENT REPLACEMENT FUND 289 FY 2017/18 FFE REPLACEMENT SCHEDULE LOCATION/DEPT ASSET LIFESPAN EST. COST City Hall Admin Services Flooring 15 25,000$ Admin Services 2 Cubicles 20 5,000 Public Works Gas Furnace 30 18,000 Community Development Flooring 15 30,000 Civic Theater/Council Chambers Theater/Chambers Stage Lighting 30 38,100 Theater/Chambers Boiler 35 140,000 Theater/Chambers Roof Top Duct Work 35 150,000 Warner Hutton House House Tables & Chairs 15 20,000 Citywide EV Stations (as needed) Library Dual Fast Chage 4 15,000 Bank Building Single Low Charge 4 5,000 3rd Street Single Low Charge 4 5,000 City Hall Dual Low Charge (2)4 10,000 Saratoga Library Dual Low Charge 4 5,000 TOTAL FFE REPLACEMENT FUNDING: 466,100$ RECREATION & FACILITIES DEPARTMENT FURNITURE, FIXTURES & EQUIPMENT REPLACEMENT FUND 290 PUBLIC SAFETY DEPARTMENT 291 DEPARTMENT OVERVIEW The Public Safety Department is comprised of two safety-oriented programs: the Public Safety Services Program, which focuses on providing day-to-day law enforcement services; and the Emergency Preparedness Program, which prepares the City for infrequent large-scale disaster and emergency occurrences. The Public Safety Department represents multiple external agencies that protect the community and provide emergency response as needed. The City of Saratoga contracts for law enforcement services with the Santa Clara County Sheriff’s Office. This includes managerial and administrative support, and Cal -ID program services located in the West Valley sub-station, with assigned deputies dedicated to the cities of Saratoga, Cupertino, and the Town of Los Altos Hills. The West Valley Division’s captain represents the Chief of Police for all three cities. Animal control 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 their emergency services oversight function, SCCFD also provides the cities with dedicated staff for coordinating city-based emergency response services. Saratoga is a member of the Silicon Valley Regional Interoperability Authority. This task force has undertaken the mission to design and implement a comprehensive countywide public safety radio communications system, to improve countywide communication systems. As in past years, the funding formula calls for Saratoga to be billed directly in FY 2017/18. In subsequent fiscal years, the City will be charged through the Sheriff’s Office contract as operational services migrate from a jurisdiction basis to a user fee basis. The Emergency Preparedness Program provides funding for operational costs associated with preparing city and community emergency response efforts in the event of a significant earthquake, fire, or other natural or man-made disasters, and coordinates with emergency services agencies and utilities to prepare residents for self-sufficiency and proper response to emergency events. To this end, 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 is supported by SCCFD personnel who: develop the City’s Emergency Operations Plan and checklists; assist with the formation of an Emergency Operations Center (EOC); and train City staff and the community in Emergency Preparedness via the planning and supervision of drills and exercises. The City Council has identified the maintenance of basic Public Safety as their number one service priority. This includes traffic, patrol, and general law enforcement, as well as auxiliary programs to educate the community on crime prevention, traffic safety, and emergency response. The Public Safety Services Program supports the Council’s priorities through the Sheriff’s Office contract and for Emergency Preparedness through programs in coordination with the Santa Clara County Fire Department and Office of Emergency Services. External agencies provide the operational and managerial staffing for these Public Safety programs; city staff assignments are limited to emergency preparation and cost-recovery planning efforts. PUBLIC SAFETY DEPARTMENT 292 DEPARTMENT OBJECTIVES Council Strategic Goal Public Safety: Provide for a safe and secure community. Department Objectives  Preservation of life and property: Ensure effective enforcement of regulations, codes and law in order to maintain a safe and secure community  Crime Prevention: Build relationships and engage community participation in crime prevention awareness, implement crime prevention programs such as Neighborhood Watch, and utilize social media and other communication platforms to enhance public outreach  Emergency Preparedness: Prepare and maintain Emergency Operations Plans; develop both staff and the community’s emergency awareness and readiness; and prepare for inter-agency/multi-agency coordination during emergencies through training and exercises BUDGET HIGHLIGHTS The Public Safety Services and Emergency Preparedness operations are primarily based on external agency support under a contract service arrangement with the Sheriff’s Office, and a cooperative partnership with Santa Clara County Fire. In past years, Fire staff had provided hands on support, but in the last couple of years, City staff is taking on more and more of the emergency preparedness oversight. As a result, the City’s Risk Manager’s time and duties have increased to prepare for and address emergenc y response and cost recovery efforts. To better reflect staffing assignments, the Risk Manager’s allocated time in the Emergency Preparedness program was increased from .05 to .30 FTE effective FY 2017/18. Departmental revenues are primarily related to Sheriff Service activities. This includes funding from Public Safety Tax, the annual SLESF/COPS Grant, Vehicle Abatement Fees, Vehicle Code Bail & Fines, Parking Citations, and False Alarm Fines. The Sheriff’s contract is structured to bill the City monthly based on an annual estimate. At year- end, service costs are reconciled to determine actual costs. The Sheriff’s Office issues the City a reimbursement if expenditures are less than the estimated annual fee. As this refund amount, if any, is undeterminable in advance, the City does not include a revenue projection in the budget. Additional Public Safety revenue is received from the San Jose Animal Control Services for fees collected from Saratoga residents for licensing, impound, quarantine, and boarding fees. Emergency Preparedness program revenues are limited to grant reimbursements, which in recent years was limited to FEMA’s 50 percent reimbursable EMPG grants. As of FY 2014/15, the County decided to retain the grant for County directed us es, meaning the City’s Emergency Preparedness program is now 100 percent General Fund supported. Public Safety Service expenditures consist mainly of administrative fees and contract service charges for Sheriff Services, Cal-ID, and the San Jose Animal Services contract. The Sheriff Services expenditure is the only area of significant budget growth in this program from year to year. Emergency Preparedness expenditures are typically stable. However, a significant increase in the Risk Manager’s staffing allocation from .05 FTE to .30 FTE in FY 2017/18 notably increased the budget. The remainder of budgeted expenses are consistent. PUBLIC SAFETY DEPARTMENT 293 GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES – BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues 244,766 252,077 243,478 225,000 260,237 225,000 Charge for Services 22,051 21,011 18,838 20,000 25,956 17,500 Other Sources 180,207 187,508 169,418 137,525 169,716 130,500 TOTAL REVENUES 447,024$ 460,596$ 431,735$ 382,525$ 455,909$ 373,000$ EXPENDITURES Salaries and Benefits - 12,853 13,137 13,201 13,354 80,498 Operating Expenditures Materials & Supplies 31,150 12,144 8,414 12,000 5,661 11,000 Fees & Charges 42,534 39,523 40,896 42,874 41,901 42,734 Consultants & Contract Svcs 4,407,188 4,789,188 5,157,244 5,374,750 5,375,092 5,517,918 Meetings, Events & Training 111 90 76 2,250 1,160 5,250 Total Operating Expenditures 4,480,983 4,840,946 5,206,630 5,431,874 5,423,815 5,576,902 Fixed Assets - - - - - - Internal Service Charges 10,401 5,580 6,087 6,591 6,591 8,841 TOTAL EXPENDITURES 4,491,384$ 4,859,379$ 5,225,854$ 5,451,666$ 5,443,759$ 5,666,241$ 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Public Safety Services 4,411,156$ 4,792,104$ 5,161,618$ 5,380,500$ 5,380,359$ 5,523,918$ Emergency Preparedness 80,227 67,275 64,236 71,166 63,400 142,323 GENERAL FUND PROGRAMS 4,491,384$ 4,859,379$ 5,225,854$ 5,451,666$ 5,443,759$ 5,666,241$ PUBLIC SAFETY DEPARTMENT 294 PUBLIC SAFETY DEPARTMENT STAFF PUBLIC SAFETY STAFF – BY PROGRAM City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director - 0.05 0.05 0.05 0.30 TOTAL FTE's - 0.05 0.05 0.05 0.30 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded Temporary Staff - - - - - ANNUAL HOURS - - - - - - - - - - TOTAL ANNUAL HOURS - - - - - City Staff by Program 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded Public Safety - - - - - Emergency Preparedness - 0.05 0.05 0.05 0.30 TOTALS - 0.05 0.05 0.05 0.30 The Recreation & Facilities Department Director is assigned and accounted for in the above Public Safety Department Staff schedule, but is fully accounted for in the Recreation & Facilities Department for Total FTE Summary information. PUBLIC SAFETY DEPARTMENT PUBLIC SAFETY 295 PUBLIC SAFETY OVERVIEW Since the City’s incorporation in 1956, the City has contracted for public safety services with the Santa Clara County Sheriff’s Office rather than employ in-house police services. The City has found this option very satisfactory as the Sheriff’s department provides 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. For example, in 2013, Saratoga was ranked as “the safest city in California” in 2014, the “12th safest city in the nation.” The current contract with the Sheriff’s Office provides basic patrol, traffic, and law enforcement services. Over the years, services have increased and decreased, based on need and funding availability. After a slowing of the economy in 2004, and the State’s borrowing of City Property Taxes, traffic enforcement hours were reduced effective with the FY 2005/06 budget. The passage of AB 117 in late 2006 allowed a return of slightly more than 1% of the City’s property tax revenues to the City, thereby alleviating some of the fiscal cutbacks. Council augmented the Sheriff’s contract by adding a school resource officer and increasing patrol service hours. Subsequently, another 200 hours of Investigative hours were added in FY 2009/10. However, in FY 2011/12, due to the severe economic limitations from the recession, traffic enforcement was reduced by 1,492 patrol hours. After several years of economic growth, Council added 1,800 hours of traffic enforcement beginning in FY 2014/15. These additional hours focus on heavy traffic times and locations, during morning drop-off and afternoon pick-up at school locations. As a result of the additional traffic enforcement deputy, the number of moving violation citations increased in the school zones, leading to a slight uptick in revenues. The deputy also held several meetings with both school and city staff to promote traffic safety awareness that led to a significant decrease in property and injury collisions. FY 2016/17 revenue decreased with better awareness, and FY 2017/18 is expected to follow suit. The City also contracts with San Jose Animal Care and Services Division (SJACS) for animal related services, including: the pick-up of stray, injured, or dead animals; complaint investigations; sh elter for abandoned, impounded, lost, or stray animals; quarantine and testing of animals; medical services; and licensing of animals. BUDGET HIGHLIGHTS Notable Budget Changes  The FY 2017/18 Sheriff Office services contract increased by $143,000  False Alarm Fine revenue will decrease due to revisions in the fine structure General Fund revenue is the primary funding source for Public Safety, but the City also receives approximately $373,000 of external funding support from public safety related operational activities and state funding. The State’s Supplemental Law Enforcement Services Fund (SLESF) provides the City with a $100,000 grant for the enhancement of public safety services. Under the Governor’s FY 2011/12 State Budget, SLESF funding was initially eliminated, and then under a political agreement, was “permanently” reinstated through a swap in which the State took the City’s VLF revenues in exchange. The SLESF grant funding is specifically targeted to fund the School Resource Officer position. Another $110,000 comes from an allocated share of the State’s Public Safety Sales Tax (Proposition 172). The City should receive about $120,000 in Vehicle Code Bails and Fines, and Parking Citations, $8,000 in False Alarm Fines, and another $17,500 from San Jose Animal Control. The operational funding has decreased from prior years due to a number of factors. Vehicle Code Bail & Fines Revenue has declined due to higher administrative fees and reductions in citations. Council direction to increase the focus to property crimes has reassigned patrol deputies to burglary suppression and apprehension of suspects, impacting the overall number of parking and moving violation citations. PUBLIC SAFETY DEPARTMENT PUBLIC SAFETY 296 Budgeted False Alarm fine revenue decreased due to the change in the fine structure to allow an additional false alarm call as a warning prior to a fine being issued, and the first fine amount lowered to $50 from $100. The Animal Control agency revenues represent charges to Saratoga residents for boarding, licenses, and fines. This revenue amount decreased slightly in FY 2016/17, prompting a decrease in FY 2017/18 budgeted revenues to reflect this lower level of revenue activity. The City’s contract for Public Safety services with the Santa Clara County Sheriff’s Office calls for annual increases based on the lesser of either compensation increases, or CPI plus 2% for each individual year, with the increase in CalPERS rates added on to this wage increase. In FY 2014/15, the cost of law enforcement services increased by $498,000 due to both added patrol hours and a retroactive and current year wage increases under a new Deputy Sheriff negotiated agreement. Sheriff services increased another $362,000 in FY 2015/16 due to negotiated wage realignments and cost of living increases. With the realignment completed, FY 2016/17’s annual increase of $203,000 represented the cost of living factor. In FY 2017/18, the City’s increase of $143,000 again represents the cost of living factor, but the restructuring of CalPERS unfunded liability has lowered the pension cost factor due to the five-year UAL payment ramp-up structure resulting in a lower annual payment charge. The impact of future UAL payment increases will be discussed in detail after the updated County Sheriff’s actuarial report is available for review this summer. Additional budget appropriations in the Public Safety Program support animal related services through a contract with the City of San Jose. The Animal Control Services contract became effective on July 1, 2004 with an initial annual fee of $155,000 for the first three years. The contract allows for an increase every third year, based on a formula using the lesser of: either, 1) the total of the Urban Wages and Clerical Workers for the San Francisco-Oakland-San Jose CPI increases for each of the prior three years plus 1.5% per year; or, 2) the total of the rise in San Jose Animal Control Officers salary for the prior three years. The contract’s fourth three year rate increase is effective July 1, 2016. The new annual rate effective for fiscal years 2016/17, 2017/18 and 2018/19 is set at $194,577. Budgeted Public Safety expenditures for ongoing administrative fees for parking tickets and jail costs, and funding for a community Academy comprise the remainder of the program expenditures. City staffing costs are not included in this program as all operational and managerial duties are performed either by Santa Clara County Sheriff’s Office or City of San Jose Animal Care & Services Division staff. The City of Saratoga is limited to oversight and coordination functions only. Of note though, are a couple of Public Safety focused community programs that were implemented in FY 2016/17 to heighten the community’s awareness of crime prevention. City Council is promoting the Neighborhood Watch program with $300 annual grants to encourage neighbors to bond together as a neighborhood group. The funding can be used for security cameras, block parties, or other tools to encourages neighbor to get to know each other, share contact information, and to immediately communicate with each other and the Sheriff if something looks suspicious. The Council also formed a Public Safety Task Force Committee to develop recommendations for enhancing public safety. The Council will consider the recommendations, and new initiatives or programs may be rolled out in FY 2017/18 in response. The $300 Neighborhood Watch grants are funded through the Grant program and the Task Force Committee is funded in the Council and Commissions program. PUBLIC SAFETY DEPARTMENT PUBLIC SAFETY 297 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN 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 promotes and supports the facilitation of Neighborhood Watch groups, with the goal of encouraging citizens to report any suspicious activity immediately, ultimately bettering the quality of life for all residents. Traffic Enforcement/Collision Reduction Efforts – Patrol hours added in FY 2014/15 continue to ease congestion and promote traffic calming near Saratoga schools during the school year. The 1,492 extra hours make deputy resources available to respond to and investigate vehicle accidents on both public and private property including “off street parking facilities” when requested by a driver or when injuries are involved, and to r eport street hazards that would impact the safe passage of motorists. 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. A newly formed adult academy will also be facilitated with both programs calling upon several members of the Sheriff’s Office to facilitate instruction in the areas of basic crime, criminal investigations, narcotics, and traffic investigations. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues 232,490 252,057 243,478 225,000 260,237 225,000 Charge for Services 22,051 21,011 18,838 20,000 25,956 17,500 Other Sources 180,207 187,508 169,243 137,525 169,716 130,500 TOTAL REVENUES 434,748$ 460,576$ 431,560$ 382,525$ 455,909$ 373,000$ EXPENDITURES Salaries and Benefits - - - - - - Operating Expenditures Materials & Supplies - - - - - - Fees & Charges 3,968 2,915 4,373 5,750 5,267 6,000 Consultants & Contract Svcs 4,407,188 4,789,188 5,157,244 5,374,750 5,375,092 5,517,918 Meetings, Events & Training - - - - - - Total Operating Expenditures 4,411,156 4,792,104 5,161,618 5,380,500 5,380,359 5,523,918 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 4,411,156$ 4,792,104$ 5,161,618$ 5,380,500$ 5,380,359$ 5,523,918$ PUBLIC SAFETY DEPARTMENT PUBLIC SAFETY 298 Public Safety Task Force – The five member ad hoc Public Safety Task Force will develop recommendations for enhancing public safety for the Council to consider. New programs or initiatives may be rolled out in FY 2017/18 as a result of the recommendations. KEY SERVICES  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 including processing deputy reports and citations, criminal and traffic warrants, and fingerprinting services  Coordination of Emergency Response activities with SCC Fire District and City staff PUBLIC SAFETY DEPARTMENT STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director - - - - - TOTAL FTE's - - - - - Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded - - - - - TOTAL ANNUAL HOURS - - - - - PUBLIC SAFETY DEPARTMENT PUBLIC SAFETY 299 PERFORMANCE OBJECTIVES & MEASURES ACTIVITY & WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Priority I calls (serious emergency and public hazard):48 31 40 40 40 b.Priority II calls ( immediate response, but non- emergency): 2,505 4,374 3,199 3,061 3,130 c.Priority III calls (non-emergency):2,234 3,385 2,482 2,385 2,434 2. a.Average response to Priority I calls for service:5.71 min 4.21 min 5.11 min 4.41 min 4.76 min b.Average response to Priority II calls for service:6.83 min 7.27 min 7.00 min 8.12 min 7.56 min c.Average response to Priority III calls for service:11.97 min 11.9 min 11.56 min 14.37 min 12.97 min 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: 18 20 20 56 38 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 activies to enhance Emergency Preparedness skills: 2 1 1 2 1 For effective protection of life and property, ensure a safe and secure community through diligent enforcement of regulations, codes and law. Develop Sheriff's Office Emergency Preparedness to provide public safety leadership in the event of emergency situations. 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. Ensure Sheriff's Office responsiveness to community needs by documenting and providing response turnaround time to responsible parties. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.10,006 10,150 10,320 10,924 10,622 2.1,018 1,023 1,052 1,131 1,092 3.191 212 211 200 206 4.2,050 2,110 2,112 2,090 2,200 Radio calls for service received in the city: Total number of crime reports taken: Total number of collision reports taken: Total number of cases assigned to Detectives: PUBLIC SAFETY DEPARTMENT EMERGENCY PREPAREDNESS 300 PUBLIC SAFETY DEPARTMENT EMERGENCY PREPAREDNESS 301 EMERGENCY PREPAREDNESS OVERVIEW The City of Saratoga is responsible for coordinating emergency response 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 and Santa Clara County Fire Department (SCCFD) to plan and prepare for emergency situations. The SCCFD provides Emergency Services Coordinators to the West Valley Region (Cupertino, Campbell, Los Gatos, Monte Sereno, and Saratoga) to develop emergency plans and train City staff and community members. This includes the City’s Emergency Operations Plan (EOP), maintenance of the City’s Emergency Operations Center (EOC), acquisition and maintenance of supplies and equipment, and development of City’s emergency volunteer programs (Saratoga Community Emergency Response Team, Saratoga Medical Reserve Corps, and the Saratoga Amateur Radio Association). The City Emergency Operations Plan is reviewed annually and updated as needed. An annual exercise is held to train staff in the activities associated with the Emergency Operations Center. Community Emergency Response Team (CERT) classes are offered through the Recreation Department with inst ructors from SCCFD. BUDGET HIGHLIGHTS Notable Budget Changes  Salary and benefits increased due to the Risk Manager’s staffing allocation increase from .05 to .30 FTE  Training budget increased from $2,000 to $5,000 for emergency Public Information Office training The Emergency Preparedness program’s operational expenses are funded by the General Fund. In FY 2013/14 the program was supplemented with a 50% reimbursable FEMA grant administrated by the County through the State’s Emergency Management Agency. Since FY 2014/15 the County has utilized the federal grant funding for County-wide purposes rather than distribute the funds to individual cities. Most of the program’s other expenditures have remained limited and fairly stable. Over the last couple of years, the County of Santa Clara has limited their resources to train and work with community members under the Community Emergency Response Team (CERT) program. To address the enormity of emergency preparation duties, the City of Saratoga is now allocating a portion of the Risk Manager’s time for development and implementation of emergency preparedness activities. With these added duties, the Risk Manager’s time allocation has increased to .30 FTE effective FY 2017/18. In the event of a destructive disaster, this effort will prove to be an invaluable foundation for the City’s emergency response cost recovery. Additional operational costs for emergency preparedness support include funding for EOC telephone lines to be restored on a priority basis in the event of a disaster or emergency situation, and a satellite telephone communication service to sustain external communications if phone or cable lines or cell services are inoperable. Additional funding is available for emergency preparedness supplies, Records Emergency Action Plan (REAP) program supplies, and meeting costs associated with the Community Emergency Response Team (CERT) volunteer training program. The City will contribute about $34,000 to the Silicon Valley Regional Interoperability Authority (SVRIA). SVRIA is comprised of eighteen Santa Clara County jurisdictions, representing some thirty law enforcement, fire and emergency medical services agencies that formed a partnership to enhance inter -agency coordination and communication between the public safety agencies. To participate in the emergency communications organization, agencies are required to pay an allocated share of the funding. When the authority is fully implemented, the organization will be incorporated into the SCC S heriff’s Office service billing. PUBLIC SAFETY DEPARTMENT EMERGENCY PREPAREDNESS 302 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Emergency Operations Center – Emergency Operations planning in the City continues to evolve and improve. The primary Emergency Operation Center (EOC) relocated from the Saratoga Fire Department building in the Village to the City Hall Administrative Conference Room, and continues to be refined. In the event of a declared emergency, staff will now report to the “new” site and use the Fire Station as a backup EOC. Emergency Operations Plan – The Emergency Operations Plan is comprised of general procedures for disaster and emergency response. Also included are individual topic specific plan annexes. Annexes to be developed or updated include a Spontaneous Volunteer Plan, and a Donations Management Plan, as additions to a revised City Emergency Operations Plan. Emergency Operation Training – Training will focus on enhancing EOC staff capabilities as identified by need based on the outcome of the After Action Report (AAR) and Improvement Plan (IP) by the Santa Clara County Office of Emergency Services. Trainings will include FEMA classes, EOC Operations, and the Common Operating Procedures. A tabletop exercise, followed by a drill will be conducted at the EOC next year. Cost Recovery Preparedness – Staff will continue to prepare photo-documentation and fixed asset inventories for each City facility and their amenities to help ensure accurate cost recovery in the event of a disaster. Buildings and facilities are assessed annually to maintain current insurance value. Emergency policies, practices, and operational services are in development to better prepare the city for reimbursable operational activities. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues 12,276 20 - - - - Fees, Licenses and Permits - - - - - - Charge for Services - - - - - - Other Sources - - 175 - - - Pass-Through Accounts - - - - - - TOTAL REVENUES 12,276$ 20$ 175$ -$ -$ -$ EXPENDITURES Salaries and Benefits - 12,853 13,137 13,201 13,354 80,498 Operating Expenditures Materials & Supplies 31,150 12,144 8,414 12,000 5,661 11,000 Fees & Charges 38,566 36,608 36,522 37,124 36,634 36,734 Consultant & Contract Svcs - - - - - - Meetings, Events & Training 111 90 76 2,250 1,160 5,250 Total Operating Expenditures 69,826 48,842 45,012 51,374 43,456 52,984 Fixed Assets - - - - - - Internal Service Charges 10,401 5,580 6,087 6,591 6,591 8,841 TOTAL EXPENDITURES 80,227$ 67,275$ 64,236$ 71,166$ 63,400$ 142,323$ PUBLIC SAFETY DEPARTMENT EMERGENCY PREPAREDNESS 303 KEY SERVICES  Prepare and update Emergency Operations Plan for the City  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  Oversee Emergency Management grants as available  Oversee Community Emergency Response Team  Develop and implement disaster event preparation practices for proper cost recovery documentation purposes EMERGENCY PREPAREDNESS STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director - 0.05 0.05 0.05 0.30 TOTAL FTE's - 0.05 0.05 0.05 0.30 Temporary Staff 2013/14 2014/15 2015/16 2016/17 2017/18 ANNUAL HOURS Funded Funded Funded Funded Funded - - - - - TOTAL ANNUAL HOURS - - - - - PUBLIC SAFETY DEPARTMENT EMERGENCY PREPAREDNESS 304 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.CERT Training Courses available to community members: Yes 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.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 periodically tested to ensure emergency communication needs: Yes Yes Yes Yes Yes b.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: Yes Yes Yes Yes Yes b.Staff attends emergency management meetings and training programs: Yes Yes Yes Yes Yes Develop emergency readiness of City staff and community members through disaster training and exercise programs. Ensure inter-agency/multi-agency coordination and communication for disaster planning and responses. Maintain the City's Emergency Operations Center in a state of readiness. Maintain effective liaisons with local, state, and national emergency management organizations. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.3 3 2 3 3 2.2 1 1 2 2 3.4 4 4 4 4 Number of annual community disaster training exercises: Number of annual disaster training exercises for City staff: Number of CERT training courses offered per year: NON-DEPARTMENTAL 305 DEPARTMENT OVERVIEW The Non-Departmental Section is a collection of programs that are independent of Department-based service and support functions. This collection includes the General Administration program, Legal Services, Community Grants and Events funding programs, Emergency Operations Claims/Reimbursement program, the Risk Management/Liability and Workers Compensation Insurance programs, and the General Obligation (GO) Bond Debt Service Fund. The Non-Departmental General Administration program section accounts for non-operational receipts (such as tax revenues, and interest), and non -program specific charges, (such as retiree and unemployment expenses, assessment taxes, and audit recovery fees). There are some general citywide expenses (insurance, contractual legal services, grant funding to outside agencies, and debt service funding) that are grouped into their own specific programs within the Non-Departmental section. BUDGET HIGHLIGHTS The majority of the City’s revenues are tax-based receipts. Property Tax, Sales Tax, Transient Occupancy Tax, Business License Tax, Franchise Fees, and Vehicle License Fees, are accounted for within the General Administration Program, along with several other miscellaneous revenues, as these receipts represent allocations to the City that are independent of departmental functions. Similarly, expenses in this program are general expenses that are independent of departmental services, such as retiree insurance premiums, unemployment payments, audit recovery fees, and non-exempt assessment taxes. The Legal Services program represents attorney time and expenses from external firms for citywide and general services. Community Grants and Community Events are funding programs for city allocations to external agencies and non-profit groups. The new Emergency Operations Claims/Reimbursement program was implemented to account for disaster recovery expenditures and their related reimbursements from FEMA, State, and local agencies. This is the first time in many years that a disaster clai m was processed, which prompted the addition of the new program into the budget schedules. Non-Departmental programs are not directly related to a specific department’s operational oversight, hence staffing is non-existent or very limited. Only the insurance programs, Risk Management and Workers Compensation, include City staffing allocations due to the in-house processing requirements associated with insurance management and claims. These programs are structured as Internal Service Funds which charge back centralized expenses to departments based on usage and risk allocations. Staffing for these programs are represented in the insurance programs for funding purposes, but are included in the staff’s home department in the FTE summary to represent total departmental staffing rather than departmental funding. Lastly, the GO Bond Debt Service Fund accounts for receipts and payments associated with the City’s 2001 voter approved bond debt for the remodel and enlargement of the City’s Library Building. Due to historically low interest rates, it became financially advantageous to refund (refinance) the bond in FY 2011/12. The bond’s terms remains the same – debt payments will finish in twenty years, however the refunding allowed Saratoga taxpayers to buy down a portion of the principal and take advantage of lower interest rates, thereby lowering annual payments and saving almost $2.7 million dollars over the next twenty years. With this refunding, the 2001 bond was retired, and a 2011 bond was established in its place. NON-DEPARTMENTAL 306 A new conduit-financing bond on behalf of the Arrowhead Water Cooperative Community Facilities District will be issued in FY 2017/18. As the bond issuance and payment amounts are not yet known, the issuance is not included in the budget. Once issued, the bond’s revenue and expenditure budget will be added through a budget adjustment. As the Non-Departmental Section represents a collection of unrelated programs, notable budget impacts are discussed in the separate program sections. The following schedule shows total revenues and expenditures. GENERAL FUND REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted REVENUES Taxes 13,238,451 14,596,799 15,456,736 15,451,350 16,216,896 16,245,800 Intergovernmental Revenues 17,750 121,925 87,492 5,000 113,187 5,000 Fees, Licenses and Permits - - 775 - - - Charge for Services - 20 - - 40 - Interest Income 40,003 45,229 79,341 55,000 102,787 147,500 Rental Income 73,526 94,392 84,508 82,602 64,505 70,002 Other Sources 256,652 147,576 191,119 132,277 139,270 131,877 TOTAL REVENUES 13,626,382$ 15,005,940$ 15,899,970$ 15,726,229$ 16,636,685$ 16,600,179$ Operating Transfers In 167,050 - 267,918 - 55,384 - TOTAL REVENUE & TRANSFERS IN 13,793,432$ 15,005,940$ 16,167,888$ 15,726,229$ 16,692,068$ 16,600,179$ EXPENDITURES Salaries and Benefits 25,171 3,320,628 570,813 665,050 533,794 980,800 Operating Expenditures Materials & Supplies 42,122 21,155 16,233 86,060 49,626 78,050 Fees & Charges 32,046 20,588 3,550 10,300 3,062 10,325 Consultant & Contract Serv 394,497 300,663 346,578 392,500 521,943 347,500 Meetings, Events, Training 2,650 6,476 6,090 32,000 19,464 32,500 Community Grants & Events 169,725 162,516 202,525 243,381 222,127 247,751 Operating Grant Expenditures - - 34,762 - - - Total Operating Expenditures 641,040 511,398 609,738 764,242 816,222 716,126 Fixed Assets - - - - - - Internal Service Charges 386,268 402,004 552,348 565,689 565,689 568,189 TOTAL EXPENDITURES 1,052,480$ 4,234,030$ 1,732,899$ 1,994,981$ 1,915,706$ 2,265,115$ Operating Transfers Out 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 TOTAL EXP & TRANSFERS OUT 1,433,360$ 5,900,128$ 3,750,555$ 3,615,629$ 3,536,354$ 3,795,115$ NON-DEPARTMENTAL 307 DEPARTMENTAL EXPENDITURES – BY PROGRAM 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted REVENUES Taxes 13,238,451 14,596,799 15,456,736 15,451,350 16,216,896 16,245,800 Intergovernmental Revenues 17,750 121,925 87,492 5,000 113,187 5,000 Fees, Licenses and Permits - - 775 - - - Charge for Services - 20 - - 40 - Interest Income 40,003 45,229 79,341 55,000 102,787 147,500 Rental Income 73,526 94,392 84,508 82,602 64,505 70,002 Other Sources 256,652 147,576 191,119 132,277 139,270 131,877 TOTAL REVENUES 13,626,382$ 15,005,940$ 15,899,970$ 15,726,229$ 16,636,685$ 16,600,179$ Operating Transfers In 167,050 - 267,918 - 55,384 - TOTAL REVENUE & TRANSFERS IN 13,793,432$ 15,005,940$ 16,167,888$ 15,726,229$ 16,692,068$ 16,600,179$ EXPENDITURES Salaries and Benefits 25,171 3,320,628 570,813 665,050 533,794 980,800 Operating Expenditures Materials & Supplies 42,122 21,155 16,233 86,060 49,626 78,050 Fees & Charges 32,046 20,588 3,550 10,300 3,062 10,325 Consultant & Contract Serv 394,497 300,663 346,578 392,500 521,943 347,500 Meetings, Events, Training 2,650 6,476 6,090 32,000 19,464 32,500 Community Grants & Events 169,725 162,516 202,525 243,381 222,127 247,751 Operating Grant Expenditures - - 34,762 - - - Total Operating Expenditures 641,040 511,398 609,738 764,242 816,222 716,126 Fixed Assets - - - - - - Internal Service Charges 386,268 402,004 552,348 565,689 565,689 568,189 TOTAL EXPENDITURES 1,052,480$ 4,234,030$ 1,732,899$ 1,994,981$ 1,915,706$ 2,265,115$ Operating Transfers Out 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 TOTAL EXP & TRANSFERS OUT 1,433,360$ 5,900,128$ 3,750,555$ 3,615,629$ 3,536,354$ 3,795,115$ NON-DEPARTMENTAL 308 NON-DEPARTMENTAL STAFF NON-DEPARTMENTAL STAFF – BY PROGRAM City Staff Full Time Equivalents (FTE)2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director 0.30 0.30 0.30 0.30 0.30 Human Resources Manager 0.10 0.10 0.10 0.10 0.10 Human Resources Technician 0.10 0.10 0.10 0.10 0.10 TOTAL FTE's 0.50 0.50 0.50 0.50 0.50 City Staff by Program 2013/14 2014/15 2015/16 2016/17 2017/18 Funded Funded Funded Funded Funded Finance - - - - - Human Resources 0.20 0.20 0.20 0.20 0.20 Recreation & Facilities 0.30 0.30 0.30 0.30 0.30 - - - - - TOTALS 0.50 0.50 0.50 0.50 0.50 These Non-Departmental staff schedules includes City staff assigned to non-departmental Internal Service Fund programs. The staff members accounted for here reflect funding allocation, but as they are assigned to other departments, the positions are accounted for in the department for the Financial Summaries' Total Staffing schedules. NON-DEPARTMENTAL GENERAL ADMINISTRATION 309 GENERAL ADMINISTRATION OVERVIEW 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 non-service based revenue sources for the City, and account for approximately 70% of the City’s Total General Fund Operating Revenues each year. General Administration expenditures are minimal in comparison, as program expenditures are limited to f unding citywide general expenses and internal service charges for general use areas or non -departmental functions. BUDGET HIGHLIGHTS The General Administration’s Property Tax revenue continues to define the economic rebound which began in the spring of 2012. Over the last four years, annual revenue increases have ranged between 6 and 9.5%, increasing total property tax revenues by $2.5 million. Homeowners that waited out the downturn in the housing market rather than sell at bargain prices have been selling their houses over the last five years at steadily rising prices, thereby increasing the City’s total assessed valuation base, substantially increasing secured and in-lieu property tax revenue, and generating a relatively high volume of transfer tax revenues. As property turnover continues to be strong, home prices are expected to hold steady. However, the rapid escalation of sales prices have priced many out of the market, leading forecasters to expect sales will slow to a more tepid pace in the upcoming year. As a result, property tax revenues are projected to increase at a slower 3% pace, with the addition of the third year of the TEA increase. Sales Tax Revenue is trending above budget in FY 2016/17 due to the $110,000 triple-flip closeout payment in August 2016. The City’s Sales Tax auditors believe cities statewide will see decreases in local tax revenue in the future due to increases in online sales. Online sales are allocated based on state and county-wide sales tax generation. This will benefit the State and some retail-oriented cities; however, Saratoga, with its limited retail business to begin with, should expect to see a decreasing revenue stream from the continued migration to online purchasing. Fortunately, a large portion of Saratoga’s sales tax is derived from restaurants and gas station. These commodities are by nature, local-based and cannot be purchased on- line, meaning the decline should be more gradual. The FY 2017/18 budget is based on prior year receipts without growth. Business License Tax revenues associated with licensing a business are expected to remain fairly flat, whereas the supplemental license tax that is based on building construction permits is showing a marked decrease. The home remodeling renaissance in conjunction with housing turnover has declined, falling short of budget. In conformity with current trends, the FY 2017/18 funding is budgeted at this lower current year expected amount. However, Transient Occupancy Tax (TOT) receipts, considered a leading indicator of economic strength, remains strong. This indicates that while Saratoga’s building revenues have fallen into a bit of a slump, the economy is still healthy. The City’s TOT began to show improvement in late FY 2011/12 as we pulled out of the recession and has remained strong since. Budgeted revenues will remain flat in FY 2017/18. Franchise Fee revenues appear relatively steady, with most at or above budget. Gas utility Franchise Fees increased slightly, as did Electric fees. Water utility Franchise Fees came in 20% over budget, and are expected to remain steady into the following fiscal year. Solid Waste and Cable Franchise Fees grow at a steady pace year over year as user charges continue to rise. Next year’s budgeted revenues reflect these strong trends. On a somewhat optimistic note, interest income is rising at a slightly quickening pace. However, rates are still below 1%, meaning the dollar amount gains are minimal. The City currently limits investments to LAIF, which for the last nine years has wallowed in the lowest rates of its 35-year history: remaining below 1% NON-DEPARTMENTAL GENERAL ADMINISTRATION 310 since July of 2009. With the steadily increasing rise, rates are expected to exceed the 1% mark during FY 2017/18. In March 2014, the City’s representative Solid Waste Authority and West Valley Collection & Recycling (WVC&R) signed a new 10 year agreement effective through February 2024. As part of the new agreement, WVC&R will make annual payments of $450,000 to the Authority for the right to hold the exclusive franchise agreement. The annual fee is dispersed to member cities based on population, with Saratoga receiving just over $130,000 per year. This funding is allocated to General Administration for general-purpose use; it is not restricted for solid waste support. As the General Administration program represents non-service functions, no staff are assigned. Hence, the workplan does not have scheduled priorities or key services. Budgeted appropriations represent general expenses, such as retiree medical insurance administration fees, unemployment insurance charges, funding for employee termination and leave payouts, Sales Tax and Business License audit finder’s fees, and several Internal Services charges which account for general public usage of the building maintenance expen ses, most notably an allocation for the Civic Theater/Council Chambers and the Civic Center buildings. The General Administration program also contains all Transfers In and Transfers Out for the General Fund. NON-DEPARTMENTAL GENERAL ADMINISTRATION 311 GENERAL FUND REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted REVENUES Taxes Property Tax 9,526,189 10,436,621 11,301,176 11,331,350 12,003,942 12,110,800 Sales Tax 941,350 1,224,427 1,189,398 1,125,000 1,185,035 1,150,000 Transient Occupancy Tax 257,010 309,618 319,109 315,000 343,618 315,000 Business License Tax 336,911 357,597 365,710 375,000 343,442 330,000 Other Taxes 228,350 199,056 212,942 230,000 169,989 175,000 Franchise Tax 1,948,642 2,069,479 2,068,401 2,075,000 2,170,870 2,165,000 Intergovernmental Revenues 17,750 121,925 87,492 5,000 19,192 5,000 Fees, Licenses and Permits - - 775 - - - Interest Income 40,003 45,229 79,341 55,000 102,787 147,500 Rental Income 73,526 94,392 84,508 82,602 64,505 70,002 Other Sources 231,652 142,576 188,613 131,877 139,270 131,877 TOTAL REVENUES 13,601,382$ 15,000,920$ 15,897,465$ 15,725,829$ 16,542,650$ 16,600,179$ Operating Transfers In 167,050 - 267,918 - 55,384 - TOTAL REV & TRANSFERS IN 13,768,432$ 15,000,920$ 16,165,382$ 15,725,829$ 16,598,033$ 16,600,179$ EXPENDITURES Salaries and Benefits 25,171 3,320,628 570,813 665,050 528,100 980,800 Operating Expenditures Materials & Supplies 40,280 20,936 16,051 85,760 49,208 77,750 Fees & Charges 32,046 20,534 3,550 10,300 3,062 10,325 Consultant & Contract Serv 7,882 15,233 21,429 20,000 14,825 15,000 Meetings, Events, Training 2,650 5,420 6,090 32,000 19,464 32,500 Operating Grant Expenditures - - 34,762 - - - Total Operating Expenditures 82,858 62,123 81,881 148,060 86,559 135,575 Fixed Assets - - - - - - Internal Service Charges 384,207 401,095 552,348 565,689 565,689 568,189 TOTAL EXPENDITURES 492,236$ 3,783,847$ 1,205,042$ 1,378,800$ 1,180,347$ 1,684,564$ Operating Transfers Out 380,880 1,666,098 2,017,656 1,620,648 1,620,648 1,530,000 TOTAL EXP & TRANSFERS OUT 873,116$ 5,449,945$ 3,222,698$ 2,999,448$ 2,800,995$ 3,214,564$ NON-DEPARTMENTAL GENERAL ADMINISTRATION 312 NON-DEPARTMENTAL LEGAL SERVICES 313 LEGAL SERVICES OVERVIEW 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 firm for land use/development attorney services on an as-needed basis. The City Attorney also oversees the 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 contract 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. BUDGET HIGHLIGHTS Notable Budget Changes:  Reduction in legal litigation services budget 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. Additionally, applicants who have development applications in process under the deposit fee development process are required to reimburse the City for billed legal services if the project utilizes attorney time for appeals in the Planning Commission or City Council meetings. Reimbursements would also result from applicants requesting research and information from the City, or from legal services related to environmental reviews. As these occurrences are not common, revenues are not anticipated nor budgeted. Budgeted expenditures are primarily comprised of regular on-going City Attorney services, with some contingency funding based on the City Attorney’s estimate of outstanding and future litigation. In recent years, a steady base of $300,000 has been budgeted for general legal e xpenditures and another $20,000 to $25,000 for employment related legal services as the ‘normal’ year budget amount. If circumstances indicate additional funding may be needed during the fiscal year, a budget adjustment request would be brought to Council. Employment law services were moved into the Legal Service program in FY 2013/14 to better assign budget responsibility and oversight for legal services to the City Attorney, and to align all attorney fees within the Legal Services program. NON-DEPARTMENTAL LEGAL SERVICES 314 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Risk Management – Work with staff to improve and implement Best Practices to mitigate risk in City operations and administer claims. City Codes and Ordinances – Research and prepare ordinances as necessary to implement City Council priorities. Work with staff on the annual code update to reflect changes in State law and lessons learned in ordinance implementation. Community Development – Work with Community Development Department staff on reviews of complex projects. Public Works – Work with Public Works department staff on environmental review, regulatory compliance, contracts and real property matters for major public works projects such as the Prospect Road Improvements and the Saratoga to the Sea Trail. Code Enforcement – Work with Code Enforcement staff to develop systems and procedures to minimize the need for City Attorney involvement in day-to-day code enforcement proceedings. Advise the City in connection with complex code enforcement matters and continue to manage prosecution of citations issued by the Sheriff’s office for violations of the City Code. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted REVENUES Charge for Services - 20 - - 40 - Other Sources 25,000 - - - - - TOTAL REVENUES 25,000$ 20 - - 40 - EXPENDITURES Operating Expenditures Materials & Supplies 1,842 219 182 300 418 300 Fees & Charges - 54 - - - - Consultant & Contract Serv 386,615 285,430 325,149 372,500 412,552 332,500 Total Operating Expenditures 388,457 286,758 325,331 372,800 412,970 332,800 Internal Service Charges 2,061 909 - - - - TOTAL EXPENDITURES 390,518$ 287,667$ 325,331$ 372,800$ 412,970$ 332,800$ NON-DEPARTMENTAL LEGAL SERVICES 315 KEY SERVICES  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 makes recommendations on legislative issues  Reviews bid requests, vendor contract documents, and purchase and sale agreements  Provides legal advice on code enforcement matters  Provides legal advice on employment law matters  Makes recommendations on environmental review requirements and preparation of environmental review documents NON-DEPARTMENTAL LEGAL SERVICES 316 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1. a.Number of staff reports and resolutions drafted or reviewed: 25 35 39 44 35 b.Number of ordinances drafted or reviewed:9 15 12 12 10 2. a.Number of agreements/contracts using standard forms reviewed: 75 75 63 62 70 b.Number of agreements/contracts using non-standard forms prepared or reviewed: 20 15 14 15 20 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. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.22 23 17 22 20 2.4 5 8 7 5 Number of City Council meetings or study sessions attended: Number of multi-agency agreements prepared: NON-DEPARTMENTAL COMMUNITY GRANTS 317 COMMUNITY GRANTS PROGRAM OVERVIEW The Community Grants program consolidates the City’s grant support to outside agencies into one program, thereby retaining an historical funding reference. 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 Saratoga Community Center facilities. This non -profit organization provides a variety of health ser vices – such as Blood Pressure Checks, Podiatric Checks, Flu Shots, Vision Screening, Hearing Tests, and Senior Nutrition Programs, as well as social and support services – such as Tax Return Assistance, Fifty-Five Alive Driving Program, Ping-Pong, Karaoke, and 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, sheriff services, and street sweeping provided to various community groups is not accounted for in the budget. BUDGET HIGHLIGHTS Notable Budget Changes:  $35,000 for KSAR funding was moved out of Community Grants, and into the City Manager’s Public Information Office budget  $10,000 was added for Volunteer Project Funding requests during the fiscal year  $20,000 was added for Senior Transportation funding Non-Profit community support organizations are vital to the City of Saratoga’s senior community and a welcome support to businesses and citizens in general. The City provides both in -kind and monetary funding to assist a number of these non-profit and volunteer based groups in Saratoga. SASCC receives in-kind funding (community center facility use, maintenance services, and other staff assistance) and monetary support to run the senior center for social groups, class instructions, and the adult day care program. SASCC does not generate sufficient fee based services from these vital senior services, so is heavily dependent on City and CDBG funding support. Additional service grant funding is split between two non-profit group programs that deliver crucial support to members of the Saratoga community who are most in need: West Valley Community Services ($8,000) for food and housing assistance, and the Catholic Charities Ombudsmen ($5,000), to act as advocates for residents in long -term care facilities. The Saratoga Chamber of Commerce, and United Way’s 211 Call Center also receive annual grants in this program, while the KSAR grant award was relocated to the City Manager’s Public Information Office program. A $25,000 grant was again awarded to the SCC FireSafe Council to provide fuel reduction services for Saratoga residents. This five-year program began in FY 2013/14, and is considered an essential service to the City’s hillside residents during these times of extremely high fire danger caused by years of drought, and for FY 2017/18, abundant growth from the heavy winter storms. The distribution of grant funding for FY 2017/18 and the four prior years is illustrated in the Grant Schedule on the following page. NON-DEPARTMENTAL COMMUNITY GRANTS 318 GENERAL FUND REVENUES AND EXPENDITURES 5 YEAR BUDGET AWARD HISTORY 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted REVENUES Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Operating Expenditures Materials & Supplies - - - - - - Fees & Charges - - - - - - Consultant & Contract Serv - - - - - - Meetings & Training - - - - - - Community Grants 147,506 135,061 147,755 152,031 152,772 148,051 Total Operating Expenditures 147,506 135,061 147,755 152,031 152,772 148,051 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 147,506$ 135,061$ 147,755$ 152,031$ 152,772$ 148,051$ 2013/14 2014/15 2015/16 2016/17 2017/18 Grants Grants Grants Grants Grants Community Services Support SASCC Service Support 21,000 21,000 21,000 21,000 21,000 SASCC Supplemental Support 18,000 18,540 19,096 19,669 20,259 Adult Daycare Support 22,000 22,000 22,000 22,000 22,000 KSAR Community Access Grant 26,000 29,200 25,540 35,743 - Chamber of Commerce Annual Support 20,506 16,821 20,119 14,360 14,792 SCC FireSafe Council - Fuel Reduction Services 25,000 12,500 25,000 25,000 25,000 Volunteer Project Funding Requests - - - - 10,000 West Valley Community Services 8,000 8,000 8,000 8,000 8,000 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 Sr. Transportation - - - - 20,000 Total Community Services Support Grants 147,506 135,061 147,755 152,772 148,051 NON-DEPARTMENTAL COMMUNITY EVENTS 319 COMMUNITY EVENTS OVERVIEW The City of Saratoga recognizes the value of community events and their role in bringing residents together, building community, and establishing an identity for the City. To that end, the City Council established a Community Event Grant Program by which event organizers can seek funding to support community events in Saratoga. The Community Event program budget conso lidates the funding allocated for both the City’s sponsored events and event grants provided to various community organizations. While the community events are supported and promoted by the City, it is the external community organizations and volunteers who are primarily responsible for staffing and organizing most of these events. Support funding occurs at many different levels including small events to celebrate days of recognition; such as Memorial Day and the Fourth of July; and Arbor Day to support the City’s tree heritage. More festive celebrations include the Blossom Festival to celebrate Saratoga’s orchard heritage, the Village’s Holiday Tree Lighting Ceremony to celebrate the start of the holiday season; and the Chamber’s annual summer festival to celebrate the historic Saratoga Village. The City also sponsors celebrations in honor of cultures, such as the Bollywood Dance and Mid-Autumn Festival; for music, such as Opera in the Park and Saratoga Community Band; as well as for City facility openings or groundbreakings to increase awareness of a new or improved community facility and publicly thank supporters and contributors. BUDGET HIGHLIGHTS Notable Budget Changes:  Street Closure Grant funding decreased by $10,000  Neighborhood Watch Program grant funding of $18,000 was added in FY 2017/18 For Fiscal Year 2017/18, the Council allocated $35,000 to award to community groups for Saratoga based events through the City’s Community Events Grant Program. The grants help pay for various 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. Funded events include: the ever-popular traditional Blossom Festival and Independence Day Celebrations that bring the community together; the Saratoga Area Senior Coordinating Council’s Health and Wellness Expo and the American Cancer Society’s Relay for Life event help to promote healthy lifestyles; the Shushan County Fair and Mid-Autumn Festival to celebrate cultures; and arts and entertainment events like Saratoga Community Band, Opera in the Park, and various Saratoga Village holiday celebrations. A $20,000 grant is set aside to support a one full-day closure of Big Basin Way. Additional funding is set aside for City- sponsored event support, such as Arbor Day, Outdoor Movie Nights, America in Bloom expenses, the Living Room Conversation program, and the Holiday Tree Lighting event. With the propulsion of the Neighborho od Watch program in FY 2016/17, Council decided to provide grants of $300 per neighborhood as an incentive for neighbors to have a block party or buy resources to promote the program. The funds were paid from Council Discretionary funds initially, but is part of the Community Events grant program effective with FY 2017/18. The elimination of last year’s 60th Anniversary Parade $10,000 street closure grant offset some of the new grant funding NON-DEPARTMENTAL COMMUNITY EVENTS 320 GENERAL FUND REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted REVENUES Fees, Licenses and Permits - - - 400 - - Other Sources - 5,000 2,506 - - - TOTAL REVENUES -$ 5,000$ 2,506$ 400$ -$ -$ EXPENDITURES Salaries and Benefits - - - - - - Operating Expenditures Community Grants & Events 22,219 27,455 54,770 91,350 69,356 99,700 Total Operating Expenditures 22,219 27,455 54,770 91,350 69,356 99,700 Internal Service Charges - - - - - - TOTAL EXPENDITURES 22,219$ 27,455$ 54,770$ 91,350$ 69,356$ 99,700$ NON-DEPARTMENTAL COMMUNITY EVENTS 321 EVENT FUNDING SCHEDULE 2013/14 2014/15 2015/16 2016/17 2017/18 Grants Grants Grants Grants Grants Chamber of Commerce Events Annual Village Festival - - - - 8,000 Holiday Wine Stroll 2,501 3,100 3,998 4,168 - Classic Car Show - - 3,929 - - Community Celebrations City Neighborhood Celebrations - - 2,995 - - Montalvo Celebrations 747 2,000 - 3,704 2,280 Blossom Festival 4,204 4,500 4,484 4,600 5,000 Girl Scout Crafts - Blossom Festival - - - - 460 Sister City Events 618 - - - - Saratoga Community Band 325 600 720 750 1,000 Opera in the Park 1,320 800 1,750 2,778 2,480 Bollywood 1,242 1,200 522 - - Food & Wine Events 1,230 - - - - Saratoga Grammar School Reunion 118 - 1,000 - - Library Events (various)- 2,800 - - - Cultural-Chinese Autumn Festival - - 320 350 390 Cultural - Hakone Matsuri - - 5,000 4,630 - Cultural - Shushan County Fair - - - - 2,590 Healthy City Events SASCC Health Fair 2,380 3,600 3,970 4,770 4,180 Relay for Life Saratoga - - - 4,630 2,580 Holiday Celebrations Memorial Day Event (Banner)250 900 1,000 1,000 1,000 Odd Fellows Easter Event - - 347 600 540 Fourth of July Event 1,831 1,900 2,670 2,200 2,500 St. Paddy's Day - - 428 820 - Saratoga Village Development Council Events (tbd)- - - - 2,000 Total Community Event Grants 16,766 21,400 33,133 35,000 35,000 City Sponsored Events Roadway Improvement Events - 250 219 500 500 Parks, Trails, Open Space Events - 250 4,706 500 100 Facility Events 17 - - - - State of the City Event - - - 5,000 7,000 City Anniversary - - - 7,000 - Village Tree Lighting Event 2,480 2,000 986 2,000 3,000 Village Street Closure Event - 10,000 8,331 30,000 20,000 America in Bloom - - - 6,000 10,000 Outdoor Movie Nights 2,756 3,600 7,353 5,000 5,000 Arbor Day Celebration 201 350 42 350 600 Living Room Conversations - - - - 500 Neighborhood Watch Program Grants - - - - 18,000 Total Annual Sponsored Events 5,453 16,450 21,637 56,350 64,700 Total Community Event Funding 22,219 37,850 54,770 91,350 99,700 NON-DEPARTMENTAL COMMUNITY EVENTS 322 NON-DEPARTMENTAL EMERGENCY OPERATIONS 323 EMERGENCY OPERATIONS OVERVIEW 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 ad dress the unexpected needs. These unplanned expenditures are accounted for in the Emergency Operations budget 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 FEMA or State Office of Emergency Services guidelines. For transparen cy, both the emergency claim expenditures and emergency operations grant reimbursement revenues will be accounted for in this program. BUDGET HIGHLIGHTS Notable Budget Changes:  There are no budgeted revenues and expenditures in this program, only prior year revenues and expenses It is unusual for the City of Saratoga to experience significant emergency operation situations, therefore this program’s funding is a reactionary response; proposed budgets are not prepared for the following fiscal year unless it is known the emergency occurrence will cross over fiscal years. For the storm damage emergency that occurred in February of 2017, all expenses and revenues are recorded in FY 2016/17. As a result, this program budget is limited to a financial schedule that accounts for the prior year emergency revenue and expenditure activities. Only a financial schedule is included. Even though staff overtime expenditures are accounted for in this program, along with contract services and other emergency expenditures, City staff is not assigned to this program, and there are no workplan priorities, key services, or performance measures to report on. NON-DEPARTMENTAL EMERGENCY OPERATIONS 324 GENERAL FUND REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted REVENUES Intergovernmental Revenues - - - - 93,995 - Fees, Licenses and Permits - - - - - - Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ 93,995$ -$ EXPENDITURES Salaries and Benefits - - - - 5,695 - Operating Expenditures Materials & Supplies - - - - - - Fees & Charges - - - - - - Consultant & Contract Serv - - - - 94,566 - Total Operating Expenditures - - - - 94,566 - Fixed Assets - - - - - - TOTAL EXPENDITURES -$ -$ -$ -$ 100,261$ -$ NON-DEPARTMENTAL RISK MANAGEMENT 325 RISK MANAGEMENT OVERVIEW The City is a member of the Association of Bay Area Government (ABAG) insurance pool (PLAN), a self- insurance program pool established in 1986 which provides general liability, auto, property insurance, and risk management services to 28 cities within the Bay Area. Each member chooses a self-insured retention ranging from $25,000 to $250,000, which is reflected in premium rates. The insurance pool pays claims up to a limit of $5 million. To extend this protection, the association purchases another $25 million of excess insurance coverage for a total of $30 million per occurrence limit. Coverage provides protection for Bodily Injury, Property Damage, Personal Injury, and Public Officials Errors and Omissions claims, and minimizes the City’s exposure to losses as a result of City policy or actions. The City’s annual premium allows for a self-coverage retention level of $25,000 per occurrence. In 2014, ABAG converted their Risk Management insurance claim administration from in -house staff to a contracted insurance administrator as a means to reduce administrative overhead. The City now submits claim information to this third party administrator (TPA) York Insurance Services Group. York’s staff follow up with other parties and insurance firms, acting as the City’s insurance agent. In addition to insurance, ABAG provides risk management services, including policy guidance, to effectively identify, analyze, and minimize risks, guidance on best practices, trainings, and grant incentives for safety programs. BUDGET HIGHLIGHTS Notable Budget Changes:  $50,000 was budgeted for potential ‘Hit and Run’ and/or ‘Uninsured’ damage claim expenses The Risk Management/Liability Fund is an Internal Service Fund program for which the cost of the program is primarily funded with service charge-backs to the departments. Charge-backs in turn, allocate the cost of the program to the departments to more fully recognize operational costs. Other revenues in the Risk Liability Fund programs include ABAG grant reimbursements and claim reimbursements. Program expenditures consist primarily of the Risk Manager’s staff time, insurance premiums, ABAG grant expenses, and the City-paid portion of non-reimbursable claim expenses. A minimum of $50,000 is budgeted each year, however for the FY 2017/18 budget; $100,000 was budgeted due to a number of expected claim settlements. If claim losses are in excess of this amount, a budget adjustment would be brought to Council. If not used, the funding rolls back into fund balance. A pass-through liability program for reimbursable claim expenses is included in a separate program that rolls up into this fund. As a cost saving measure, ABAG PLAN reduced the amount of grant funding in recent years, and now requires a 50% match for non-goal related Program Grant expenses. Program Grant funds are used for safety improvements and hazard mitigation. Training Grants are used for costs associated with the Risk Manager (Public Administration Risk Management Association [PARMA] conference, the California Joint Powers Association (CAJPA), the Public Risk Management Association [PRIMA] conferences, or Playground Safety (NPSI) training. Insurance premiums vary from year to year, as premiums are dependent on and reactive to both the City’s and the entire JPA’s claim loss activity. This irregularity was seen with a 16% increase in FY 2013/14 that was followed by a 27% decrease in FY 2014/15, a 3% decrease in 2015/16, and then a 24% decrease in FY 2016/17. Final insurance premium costs are not available until after the budget presentation, therefore estimated premium expenditure costs are in the proposed budget and subsequently adju sted with the final budget adoption. A conservative estimate of $200,000 is used as a placeholder. NON-DEPARTMENTAL RISK MANAGEMENT 326 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Risk Management – Employ the Risk Management Committee to identify and mitigate hazards throughout City to reduce loss exposures. Conduct quarterly Safety Meetings to identify safety issues and increase safety awareness. ABAG Grant Management – Utilize ABAG program grant to attend public agency risk management training and implement best practice safety standards to improve citywide safety. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 230,059 283,125 291,264 376,487 376,487 504,480 Total Beg Fund Balance 230,059$ 283,125$ 291,264$ 376,487$ 376,487$ 504,480$ Revenues Intergovernmental Revenues 9,907 2,500 10,549 12,577 2,450 10,450 Fees, Licenses and Permits 128 - - - - - Other Sources 4,774 21,982 8,258 50,000 40,249 50,000 Internal Service Charges 375,000 375,000 325,001 350,000 350,000 350,000 Total Revenues 389,809$ 399,482$ 343,808$ 412,577$ 392,699$ 410,450$ TOTAL SOURCE OF FUNDS 619,868$ 682,607$ 635,072$ 789,064$ 769,186$ 914,930$ USE OF FUNDS Expenditures Salaries and Benefits 61,513 77,558 78,817 77,806 80,122 80,498 Operating Expenditures Materials & Supplies 9,907 2,500 10,563 12,577 2,436 12,700 Fees & Charges 15,234 128,319 (7,608) 150,250 48,194 200,250 Consultant & Contract Svcs - - - - - - Meetings & Training - - - - - - Insurance Premiums 249,780 182,465 176,380 195,000 133,537 200,000 Internal Service Charges 309 502 433 417 417 417 Total Expenditures 336,743$ 391,344$ 258,585$ 436,050$ 264,706$ 493,865$ Ending Fund Balance Unassigned 283,125 291,264 376,487 353,014 504,480 421,065 Total Ending Fund Balance 283,125$ 291,264$ 376,487$ 353,014$ 504,480$ 421,065$ TOTAL USE OF FUNDS 619,868$ 682,607$ 635,072$ 789,064$ 769,186$ 914,930$ NON-DEPARTMENTAL RISK MANAGEMENT 327 KEY SERVICES  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 RISK MANAGEMENT STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director 0.30 0.30 0.30 0.30 0.30 Human Resources Manager - - - - - Human Resources Technician - - - - - TOTAL FTE's 0.30 0.30 0.30 0.30 0.30 NON-DEPARTMENTAL RISK MANAGEMENT 328 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 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% c.Conduct City-owned facility inspections on a quarterly basis: 100%100%100%100%100% Provide timely, comprehensive Risk Management services to the City to reduce liability and claims costs. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.9 10 9 7 9 2.12 12 12 12 12 3.6 15 7 11 10 Number of ABAG risk management annual goals established and maintained: Number of monthly inspections and reporting -- streets, sidewalks, urban forest, parks, buildings, and equipment: Number of Liability Claims received: NON-DEPARTMENTAL WORKERS COMPENSATION 329 WORKERS COMPENSATION PROGRAM OVERVIEW The City’s Workers Compensation Program provides insurance benefit coverage for employee work -related illnesses and/or injuries. The City has been a member of the Association of Bay Area Government’s (ABAG) Shared Risk Pool (SHARP) Joint Powers Association since January 1, 1989. SHARP is a self-funded public agency insurance pool providing workers compensation coverage for five public entities that are too smal l to self-insure independently (Cities of Saratoga and American Canyon, ABAG, and the Towns of Ross and Los Altos Hills). 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 Division 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) York Insurance Services Group, monitors the TPA’s performance, periodically meets with the TPA to provide guidance and direction on behalf of the City, and works with the injured worker in developing a return to work plan to hold 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. If the TPA accepts medical only claims, the City pays for any lost time (3 days or less). If the TPA accepts indemnity claims, the TPA uses the California Labor Code to decide the type of disability, the percentage of disability, the payment amount, and the period of payment. The TPA issued payments are funded through SHARP. BUDGET HIGHLIGHTS Notable Budget Changes  None. The annual revenue appropriation for this fund is comprised of internal service chargeback fees and ABAG grants. Departmental chargeback fees are based on department experience factors, worker category, staffing levels, and operational costs. ABAG grants promote worker health and safety. In FY 2017/18, a $10,000 Wellness and Safety Grant from ABAG will be used for wellness promotion and training, and for safety training specifically related to the Illness and Injury Prevention Program (IIPP) such as the development of safety standards and compliance audit programs. Program costs covered in the internal service rates include program staff time, insurance premiums, and the expenditure side of the wellness and safety grants. Staff time of .10 FTE of the Human Resource Manager position and .10 FTE of the Human Resources Technician position is util ized to manage various program functions, including workers compensation, safety, wellness, ergonomics, and contracts. The reimbursable ABAG SHARP Wellness and Safety Grant expenditures are budgeted for ergonomic evaluations as required during the year. Due to minimal worker compensation claims in recent years, the FY 2017/18 premium reflects a slight decrease from the prior year’s premium. NON-DEPARTMENTAL WORKERS COMPENSATION 330 GENERAL FUND REVENUES AND EXPENDITURES FY 2017/18 WORKPLAN PRIORITIES Wellness Program Initiative - Continue Wellness Program Initiative (funded by ABAG Grant) to successfully minimize the exposure to incidents which may cause loss to the City or injury to its employees. Return to Work, Modified Duty Program – To the extent possible and as needed, HR, department directors, managers, and line supervisors will proactively identify light duty assignments for injured employees to ensure the proposed work is compatible with restrictions that are expected to be imposed by an injured employee’s physician. Injury and Illness Prevention Program (IIPP) – Coordinate training in support of the IIPP. 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 293,719 281,642 314,525 304,402 304,402 294,053 Total Beginning Fund Balance 293,719$ 281,642$ 314,525$ 304,402$ 304,402$ 294,053$ Revenues Intergovernmental Revenues 17,433 17,567 10,000 10,000 4,954 10,000 Internal Service Charges 200,000 200,000 175,000 175,000 175,000 175,000 Total Revenues 217,433$ 217,567$ 185,000$ 185,000$ 179,954$ 185,000$ TOTAL SOURCE OF FUNDS 511,152$ 499,209$ 499,525$ 489,402$ 484,355$ 479,053$ USE OF FUNDS Expenditures Salaries and Benefits 25,753 27,059 29,287 30,675 28,544 31,634 Operating Expenditures Materials & Supplies 14,381 17,567 10,048 10,100 7,442 10,050 Fees & Charges 78 78 78 80 78 80 Consultant & Contract Serv 343 - - 600 675 600 Meetings & Training - - - - - - Insurance Premiums 188,889 139,776 155,536 175,000 153,163 150,000 Operating Expenditures 203,691 157,421 165,662 185,780 161,357 160,730 Fixed Assets - - - - - - Internal Service Charges 66 203 175 401 401 401 Total Expenditures 229,510$ 184,683$ 195,124$ 216,856$ 190,303$ 192,765$ Ending Fund Balance Unassigned 281,642 314,525 304,402 272,546 294,053 286,288 Total Ending Fund Balance 281,642$ 314,525$ 304,402$ 272,546$ 294,053$ 286,288$ TOTAL USE OF FUNDS 511,152$ 499,209$ 499,525$ 489,402$ 484,355$ 479,053$ NON-DEPARTMENTAL WORKERS COMPENSATION 331 KEY SERVICES  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 Department of Industrial Relations (DIR) regulations  Serve on Association of Bay Area Government’s (ABAG) Shared Risk Pool (SHARP) Board and provide oversight of third party administrator (TPA)  Review injury and illness trends  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 WORKERS COMPENSATION STAFF City Staff 2013/14 2014/15 2015/16 2016/17 2017/18 FULL-TIME EQUIVALENTS (FTE's)Funded Funded Funded Funded Funded Recreation & Facilities Director - - - - - Human Resources Manager 0.10 0.10 0.10 0.10 0.10 Human Resources Technician 0.10 0.10 0.10 0.10 0.10 TOTAL FTE's 0.20 0.20 0.20 0.20 0.20 NON-DEPARTMENTAL WORKERS COMPENSATION 332 PERFORMANCE OBJECTIVES AND MEASURES ACTIVITY AND WORKLOAD HIGHLIGHTS 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals 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. Provide safety trasining as required by the City's Injury and Illness Prevention Program: Yes Yes Yes Yes Yes Establish and uphold effective internal controls with Workers Comp third party administrators contracts. Provide effective, efficient, and timely claims administration, working closely with supervisors, injured workers and workers compensation insurance carrier. Provide safety training and internal controls to promote a safe working environment. 2013/14 2014/15 2015/16 2016/17 2017/18 Actuals Actuals Actuals Actuals Budget 1.1 2 1 3 2 2.0 1 0 0 0 3.Number of open claims to date (since FY 1998/99):251 253 254 257 259 4.Number of closed claims to date (since FY 1998/99):248 252 252 255 255 5.Lost time in full work days:0 0 0 0 0 New claims (based on date of claim): Closed claims (based on date closed): NON-DEPARTMENTAL DEBT SERVICE FUND 333 DEBT SERVICE FUND OVERVIEW 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 dollars 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. However, with interest rates falling to historic lows in the fall of 2010, Council requested the 2001 GO Bonds be refunded. 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 refunding will save Saratoga taxpayers approximat ely $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 an 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. The Bank of New York Western Trust Company acts as Saratoga’s fiscal agent to administer the debt servicing of the bonds. To ensure compliance with 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 R ule 15c.2-12. BUDGET HIGHLIGHTS The Library Bond is the City’s only bonded debt, and as a General Obligation debt is paid for by the residents through a parcel assessment. This debt is not a financial cash flow or burden to the City, and budget appropriations are restricted to revenues and expenditures solely related to the servicing of the General Obligation Bond. The City does not assume an administrative fee, or assign staff for the management of the bond’s debt service. The FY 2017/18 revenue budget reflects total levy assessments at less than the annual scheduled debt service. This underfunding is designed to reduce the fund balance reserve over time to approximately $700,000; representing the cash needed for the August principal and interest bond payment. The levy rate is set annually to allow a slow, steady reduction in assessment receipts. With property values increasing, rates must be lowered each year to offset the increase in valuations. Budgeted expenditures reflect principal and interest payments, and fees for continuing disclosure services. NON-DEPARTMENTAL DEBT SERVICE FUND 334 GENERAL FUND REVENUES AND EXPENDITURES 2013/14 2014/15 2015/16 2016/17 2016/17 2017/18 Actuals Actuals Actuals Adjusted Actual Adopted SOURCES OF FUNDS Beginning Fund Balance Unassigned 885,756 897,785 906,600 922,951 876,291 912,661 Total Beg Fund Balance 885,756$ 897,785$ 906,600$ 922,951$ 876,291$ 912,661$ Revenues Tax Assessments 900,018 897,241 898,820 800,000 879,777 815,000 Interest 1,521 1,533 2,541 1,300 4,477 2,700 Total Revenues 901,539$ 898,774$ 901,362$ 801,300$ 884,255$ 817,700$ TOTAL SOURCE OF FUNDS 1,787,295$ 1,796,560$ 1,807,961$ 1,724,251$ 1,760,546$ 1,730,361$ USE OF FUNDS Expenditures Operating Expenditures - - - - - - Debt Service 889,510 889,960 885,010 847,960 847,885 847,310 Total Expenditures 889,510$ 889,960$ 885,010$ 847,960$ 847,885$ 847,310$ Operating Transfers Transfer Out - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned 897,785 906,600 922,951 876,291 912,661 883,051 Total Ending Fund Balance 897,785$ 906,600$ 922,951$ 876,291$ 912,661$ 883,051$ TOTAL USE OF FUNDS 1,787,295$ 1,796,560$ 1,807,961$ 1,724,251$ 1,760,546$ 1,730,361$ NON-DEPARTMENTAL DEBT SERVICE FUND 335 2011 LIBRARY GO BOND DEBT SERVICE August August February Fiscal Year Bond Fiscal Interest Annual Interest Interest Annual Debt Principal Year Rate Principal Payment Payment Interest Service Balance @ YE Bond Refunding Date - August 1, 2011 - - 2011/12 2.000%- - 228,211 228,211 228,211 11,995,000 2012/13 2.000%455,000 208,518 203,968 412,485 867,485 11,540,000 2013/14 2.000%485,000 203,968 199,118 403,085 888,085 11,055,000 2014/15 2.000%495,000 199,118 194,168 393,285 888,285 10,560,000 2015/16 2.000%500,000 194,168 189,168 383,335 883,335 10,060,000 2016/17 3.000%475,000 189,168 182,043 371,210 846,210 9,585,000 2017/18 3.000%485,000 182,043 174,768 356,810 841,810 9,100,000 2018/19 4.000%500,000 174,768 164,768 339,535 839,535 8,600,000 2019/20 4.000%525,000 164,768 154,268 319,035 844,035 8,075,000 2020/21 4.000%545,000 154,268 143,368 297,635 842,635 7,530,000 2021/22 3.000%565,000 143,368 134,893 278,260 843,260 6,965,000 2022/23 4.000%580,000 134,893 123,293 258,185 838,185 6,385,000 2023/24 4.000%610,000 123,293 111,093 234,385 844,385 5,775,000 2024/25 4.000%630,000 111,093 98,493 209,585 839,585 5,145,000 2025/26 3.500%655,000 98,493 87,030 185,523 840,523 4,490,000 2026/27 3.500%685,000 87,030 75,043 162,073 847,073 3,805,000 2027/28 3.700%705,000 75,043 62,000 137,043 842,043 3,100,000 2028/29 4.000%730,000 62,000 47,400 109,400 839,400 2,370,000 2029/30 4.000%760,000 47,400 32,200 79,600 839,600 1,610,000 2030/31 4.000%790,000 32,200 16,400 48,600 838,600 820,000 2031/32 4.000%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$ 11,995,000$ NON-DEPARTMENTAL DEBT SERVICE FUND 336 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 th e 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 structure is comprised of one General Obligation Bond. FY 2017/18 DEBT MARGIN COMPUTATION Assessed Secured Property Valuation for FY 2016/17 13,670,793,906$ Debt Limitation (15% of assessed value)15% Bonded Debt Limit 2,050,619,086$ Outstanding Bonded Debt at 6/30/17 2011 Series General Obligation Bond 9,585,000 TOTAL Outstanding Debt 9,585,000$ LESS Debt not subject to limit: Special Assessment Bonds - Special Revenue Bonds - Certificate of Participation Debt - Amounts held in Sinking Funds - TOTAL Debt not subject to limit: -$ Amount of Debt Subject to Limit: 9,585,000$ LEGAL DEBT MARGIN 2,041,034,086$ CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 337 CAPITAL IMPROVEMENT PLAN BUDGET CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 338 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 339 CAPITAL IMPROVEMENT PLAN OVERVIEW The City of Saratoga’s FY 2017/18 – 2021/22 Capital Improvement Plan (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. Generally CIP improvements are major expenditures that have a multi-year life, and result in becoming City assets. As a city is comprised of diverse infrastructure, the CIP is structured under four separate program areas in which projects are categorized by infrastructure type. This includes: Streets Program; Parks & Trails Program; Facilities Program; and an Administrative & Technology Improvement Program. The discrete program areas allow for further sub-classifications of projects the City is undertaking, and the tracking of resources expended for these purposes. The four programs are structured as follows:  Streets Program – includes 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, and Refuse Impact Fees are dedicated funding sources for the Streets Program, with total revenues of approximately $2 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 Program - includes 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.  Facility Program - includes 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, 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 Program – includes 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 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 340 projects may come from the City’s Internal Service Replacement Funds, from grants, or from prior year General Fund savings. CAPITAL PROGRAM GUIDELINES The standard definition of a Capital Improvement Plan (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. The 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. Under direction from the City Manager, the Public Works Department takes the lead in the preparation of most street and park projects for consideration in the current Capital Improvement Plan , and the Recreation and Facilities Department takes the lead in most Facility Program projects. Capital Administrative & Technology projects typically are recommended by the City Manager, Administrative Services, or Community Development departments as they represent non-infrastructure projects. The CIP Procedure Process Policy guides proposed projects through a proposal preparation and review process, including a review by the Planning Commission; to ensure projects are consistent with the City’s General Plan prior to Council’s final budget review. The entire Capital Budget is presented to the City Council for final review at the Budget Hearing in May, with budget approval scheduled in June. This summary overview of the CIP budget reflects the City’s capital projects plan and estimated project status as of the year end. The CIP schedules reflect estimated unexpended fund balance at the beginning of the fiscal year, the estimated funding to be received during the fiscal year (by category), and the full appropriation of all available funds to allow for either completion of projects or large encumbrances for multi-year projects . The Capital Improvement Plan also includes a number of unfunded capital projects which were brought to the Planning Commission and approved for conformance with General Plan guidelines. These planned projects will be brought to Council for budget approval at a later time, when resources becomes available. The following summary schedules and graphs illustrate program budgets by project category and by fund for the four CIP Programs, and a list of unfunded projects. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 341 CAPITAL IMPROVEMENT PLAN BUDGET BY PROJECT CATEGORY Adopted Category FY 2017/18 % Streets Street Repair & Resurfacing 3,430,880$ 21.6% Roadway Safety Projects 5,387,788 33.9% Sidewalk, Curbs & Storm Drains 1,680,108 10.6% Bridge & Retaining Walls 1,745,652 11.0% Utility Undergrounding Projects 98,744 0.6% Total Streets 12,343,172 77.6% Parks & Trails Citywide Projects 388,449 2.4% Park Projects 708,757 4.5% Trail Projects 1,189,177 7.5% Total Parks & Trails 2,286,383 14.4% Facility Improvements Civic Center Improvements 76,286 0.5% Community Center Improvements 245,676 1.5% Library Building Improvements 53,871 0.3% Total Facility Improvements 383,477 2.4% Administrative & Technology Improvements Information Technology Projects 226,000 1.4% Community Enhancement Programs 85,521 0.5% Development Programs 427,379 2.7% Administrative Enhancement Programs 154,412 1.0% Total Admin & Technology Improvements 893,313 5.6% TOTAL CIP BUDGET BY PROJECT CATEGORY 15,906,344$ 100% CAPITAL PROGRAM BUDGET BY PROJECT CATEGORY CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 342 CAPITAL IMPROVEMENT PLAN BUDGET BY FUND Adopted Category FY 2017/18 % Streets 411 Streets CIP Fund 4,228,866 26.6% 431 Streets Grant Fund 6,370,104 40.0% 481 Streets Gas Tax Fund 1,744,202 11.0% Total Streets 12,343,172 77.6% Park & Trails 412 Parks & Trails CIP Fund 981,868 6.2% 421 Parks & Trails Tree Fund 87,995 0.6% 422 Parks & Trails In-Lieu Fees Fund 482,696 3.0% 432 Parks & Trails Grant Fund 733,824 4.6% Total Park & Trails 2,286,383 14.4% Facility Improvements 413 Facility CIP Fund 257,801 1.6% 433 Facility Grant Fund 125,676 0.8% Total Facility Improvements 383,477 2.4% Administrative & Technology Improvements 414 Admin & Tech CIP Fund 893,313 5.6% Total Administrative & Technololgy 893,313 5.6% TOTAL CIP BUDGET BY FUND 15,906,344 100% CAPITAL IMPROVEMENT PLAN BUDGET BY FUND CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 343 CIP UNFUNDED LIST Project Title Project Descriptions Project Cost 1 Big Basin Way Turn Around This project would fund the design and construction of a turn around on Big Basin Way to improve traffic circulation through Saratoga Village. 500,000 2 Quito Road Sidewalk Improvements This project would fund sidewalk improvements along Quito Road between Highway 85 and Allendale Avenue. 350,000 3 State Route 85/Saratoga Avenue Beautification This project would fund the beautification of the entry and exit to State Route 85 at Saratoga Avenue 250,000 4 Saratoga/Herriman Avenues Traffic Signal This project would fund the installation of a three-way traffic signal at the intersection of Saratoga Avenue and Herriman Avenue 250,000 5 Beaumont Avenue Traffic Circle This project would fund the installation of a traffic circle on Beaumont Avenue 30,000 850,000$ 6 Saratoga Village to Quarry Park Trail This project would fund the design and construction of a trail along Big Basin Way from Saratoga Village to Quarry Park through Hakone Gardens. 3,000,000 7 Saratoga Village Creek Trail - Construction This project would fund the construction of a trail connecting Saratoga Village to Quarry Park along Saratoga Creek. 3,000,000 8 Saratoga-to-the-Sea Trail This project would fund the design, environmental review, and construction of a trail connecting Quarry Park to Santa Clara County's Sanborn Park 2,500,000 9 Norton/Villa Montalvo Emergency Route This project would fund the design and construction of an emergency access road connecting the Montalvo Arts Center parking lot with Norton Road. 2,000,000 10 Joe's Trail at Saratoga de Anza - Phase II This project would fund the design and construction of a trail from Saratoga-Sunnyvale Rd. to Arroyo de Arguello. 750,000 11 Quarry Park Trail Improvements This project would fund the design, environmental review, and construction of additional trail improvements in Quarry Park 250,000 12 Congress Springs Park North Side Entrance This project would fund the design and construction of a trail connecting the residential neighborhood around Cox Avenue east of Highway 85 to the northside of Congress Springs Park. 200,000 13 ADA All-inclusive Playground This project would fund costs related to an all-inclusive playground at a city park. 200,000 14 Quarry Park Pond Improvements This project would fund the design, environmental review, and construction of improvements to the pond in Quarry Park 150,000 15 Via Regina Trail This project would fund the construction of a pedestrian- equestrian trail connecting Via Regina and Villa Oaks Lane. 100,000 12,150,000$ 16 Theater Improvements This project would fund the design and construction of improvements identified in the Civic Theater Master Plan. 12,000,000 17 Community Development Lobby Remodel This project would fund the remodel of the lobby in the Community Development department. 150,000 18 Village Clock This project would fund the installation of a clock in Saratoga Village. 150,000 19 City Hall Courtyard Renovation This project would fund improvements to the courtyard area of City Hall. 100,000 20 Renovate Existing Stage at Community Center This project would fund ADA accessibility and storage and safety improvements to the Community Center Multi-Purpose Room Stage. 80,000 21 Bocce Ball Court This project would fund the installation of a bocce ball court at City Hall 50,000 12,530,000$ 25,530,000$ TOTALS TOTAL STREETS UNFUNDED PROJECTS TOTAL PARKS AND TRAILS UNFUNDED PROJECTS TOTAL FACILITY UNFUNDED PROJECTS STREET IMPROVEMENT PROJECTS PARK & TRAIL IMPROVEMENT PROJECTS FACILITY IMPROVEMENT PROJECTS CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 344 OPERATING BUDGET COST IMPACTS STREETS CAPITAL IMPROVEMENT PROGRAM PARKS & TRAILS CAPITAL IMPROVEMENT PROGRAM 5 Years Operating 2017/18 2018/19 2019/20 2020/21 2021/22 Costs Street Repair and Resurfacing 9111-003 Annual Roadway Improvements 178,173 182,627 187,193 191,873 196,670 936,535 Roadway Safety Improvements 9121-001 Roadway Safety & Traffic Calming 6,444 6,605 6,771 6,940 7,113 33,874 9121-003 CDBG - ADA Signal Lights 2,040 - - - - 2,040 9122-005 Highway 9 Safety Impr - Phase IV 6,531 6,531 9122-006 Prospect Road Improvements 167,708 - - - - 167,708 9122-007 City-wide Sign Upgrade - Phase II 14,261 - - - - 14,261 9122-008 Big Basin Way Turnaround - Design - - - - - - Sidewalks, Curbs & Gutters - - - - - 9141-005 Infrastructure Maintenance & Repairs 16,757 17,176 17,605 18,045 18,496 88,079 9142-004 Village S/W & Pedestrian Enhancements 2,568 - - - - 2,568 9142-005 Saratoga Avenue Sidewalk 4,955 - - - - 4,955 9142-011 Village S/W & Pedestrian Enhancements 2,169 - - - - 2,169 9142-013 Quito Road/Paseo Olivos Curb & Gutter 1,911 - - - - 1,911 9142-014 Big Basin Way Sidewalk Repairs 5,261 - - - - 5,261 9142-015 El Camino Grande Storm Drain Repair 11,222 - - - - 11,222 9142-017 LT Trash Plan Storm Drain Capture Device 1,255 - - - - 1,255 9142-018 Wildcat Creek Outfall Repair 723 - - - - 723 9142-019 Village C/W & S/W Rehabilitation 10,922 - - - - 10,922 9142-020 Quito Road S/W Improvements - Design - - - - - - Bridges & Retaining Walls 9152-001 Fourth Street Bridge Widening - - - - - - 9152-002 Quito Road Bridges Replacement 6,931 - - - - 6,931 9152-004 Quito Road Bridges - ROW Acquisition 10,534 - - - - 10,534 9153-003 Annual Retaining Wall Maint & Repairs 13,608 13,949 14,297 14,655 15,021 71,530 9153-004 Bainter Ave Retaining Wall 7,200 - - - - 7,200 Utility Undergrounding Project 9171-002 Quito Road Electric Undergrounding - - - - - - 471,175$ 220,357$ 225,866$ 231,513$ 237,300$ 1,386,211$ Staff time Staff time Staff time Staff time Staff time No impact to operating budget Total - Street Projects No impact to operating budget Staff time Staff time Staff time Staff time Staff time Staff time Staff time Staff time No impact to operating budget Staff time Staff time Staff time Staff time Staff time No impact to operating budget Staff time Improvement Projects Operational Impacts Staff time 5 Years Operating 2017/18 2018/19 2019/20 2020/21 2021/22 Costs Citywide Projects 9211-001 Park, Trail, Grounds, and Medians 23,151 23,729 24,323 24,931 25,554 121,688 9211-002 Citywide Tree Replanting 3,719 3,812 3,907 4,005 4,105 19,547 9211-008 Sustainable Landscaping Project 7,064 - - - - 7,064 9211-009 "Magical Bridge" Playground 2,268 2,268 9212-001 Tree Dedication Program 1,365 - - - - 1,365 9212-002 SMSCF Tree Dedication Grant Pgm - - - - - - Park Projects 9222-004 Hakone Gardens Infrastructure Imps 3,906 - - - - 3,906 9222-007 Hakone Gardens Koi Pod Imps 9,317 - - - - 9,317 9226-003 Quarry Park ADA Access to UT Parking 42,164 - - - - 42,164 Trail Projects 9274-001 Joe's Trail ar Saratoga De Anza 35,966 36,866 37,787 38,732 39,700 189,051 9274-002 Guava Ct/Fredericksburg Entrance 56,986 58,411 59,871 61,368 62,902 299,538 9277-004 Saratoga Village to Quarry Park Walkway - - - - - - 9278-001 Saratoga-to-the-Sea Trail 136,915 - - - - 136,915 322,822$ 122,818$ 125,888$ 129,035$ 132,261$ 832,824$ Staff time Staff time Staff time Staff time Staff time No impact to operating budget Total - Parks & Trails Projects No impact to operating budget Staff time Staff time Staff time Staff time Improvement Projects Operational Impacts Staff time Staff time CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 345 OPERATING BUDGET COST IMPACTS - CONTINUED FACILITY CAPITAL IMPROVEMENT PROGRAM ADMINISTRATIVE & TECHNOLOGY CAPITAL IMPROVEMENT PROGRAM SUMMARY OF OPERATING BUDGET COST IMPACTS BY CAPITAL PROGRAM 5 Years Operating 2017/18 2018/19 2019/20 2020/21 2021/22 Costs Civic Center Improvements 9322-002 Theater Improvements 11,109 11,387 11,672 11,964 12,263 58,394 Community Center 9331-008 Electrical Panel Upgrade 17,475 - - - - 17,475 9333-006 ADA Restroom Upgrade 18,302 - - - - 18,302 Saratoga Prospect Center 9351-004 Saratoga Prospect Center Furniture 1,113 - - - - 1,113 Administrative Projects & Programs 9372-001 Library Exterior Maintenance Projects Staff time 2,996 3,070 3,147 3,226 3,307 15,746 9373-001 Library EV Fast Charging Station 4,850 - - - - 4,850 55,845$ 14,457$ 14,819$ 15,189$ 15,569$ 115,880$ Staff time Improvement Projects Operational Impacts Staff time Total - Administrative Projects Staff time Staff time Staff time 5 Years Operating 2017/18 2018/19 2019/20 2020/21 2021/22 Costs Information Technology Projects 9412-004 Document Imaging 1,707 1,750 1,793 1,838 1,884 8,973 9413-002 City Website/Intranet Redesign 15,966 - - - - 15,966 9415-001 Community Development Technology Development 4,386 4,496 4,608 4,723 4,841 23,054 9415-002 TRAK-iT Software System Upgrade 5,668 - - - - 5,668 Community Enhancement Programs 9442-001 Landscaping & Lighting District Initiation Match 3,293 - - - - 3,293 9442-002 Horseshoe Landscaping & Lighting District Beautification - - - - - - 9443-001 City-wide Transportation Needs Assessment 830 - - - - 830 Development Projects & Programs 9451-002 General Plan Update 15,187 15,566 15,955 16,354 16,763 79,826 9452-001 Saratoga Village Façade Program 102 - - - - 102 9452-003 Saratoga Village Specific Plan Update - - - - - - Administrative Projects & Programs 9491-001 Risk Management Mitigation 2,802 2,872 2,943 3,017 3,092 14,726 49,941$ 24,683$ 25,300$ 25,933$ 26,581$ 152,438$ Staff time No impact to operating budget Staff time Improvement Projects Total - Administrative Projects Staff time Operational Impacts Staff time Staff time Staff time Staff time No impact to operating budget Staff time Staff time 5 Years Operating Operating Budget Impacts by Capital Program 2017/18 2018/19 2019/20 2020/21 2021/22 Impact Streets 471,175 220,357 225,866 231,513 237,300 1,386,211 Parks & Trails 322,822 122,818 125,888 129,035 132,261 832,824 Facilities 55,845 14,457 14,819 15,189 15,569 115,880 Adminisitrative & Technology Improvements 49,941 24,683 25,300 25,933 26,581 152,438 Total Operating Budget Impact by Capital Program 899,782$ 382,315$ 391,873$ 401,670$ 411,712$ 2,487,353$ CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 346 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 347 STREET IMPROVEMENT PROJECTS CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 348 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 349 STREETS PROGRAM PROGRAM DIRECTORY STREET PROGRAM SUMMARY PAGE Program Summary 351 Project List Summary 352 Project Funding Summary 353 Operating Budget Impact 354 STREET REPAIR AND RESURFACING PROJECTS 9111-003 Annual Roadway Improvements 356 ROADWAY SAFETY PROJECTS 9121-001 Roadway Safety & Traffic Calming 360 9121-003 ADA Signal Lights & Curb Cut-outs 362 9122-005 Highway 9 Safety Improvements – Phase IV 364 9122-006 Prospect Road Improvements 366 9122-007 Citywide Signal Upgrades Project - Phase II 368 9122-008 Big Basin Way Turnaround – Design 370 9122-009 Beaumont Traffic Circle 372 STREET LANDSCAPE & BEAUTIFICATION IMPROVEMENTS 9138-001 Village LED Streetlights 376 SIDEWALK, CURBS & STORM DRAIN PROJECTS 9141-005 Annual Infrastructure Maintenance and Repairs 380 9142-004 Village Pedestrian Enhancements – Phase I Design 382 9142-005 Saratoga Avenue Sidewalk 384 9142-011 Village Pedestrian Improvements - Phase II (Blaney Plaza) 386 9142-013 Quito Road Paseo Olivos Curb & Gutter 388 9142-014 Big Basin Way Sidewalk Repairs 390 9142-015 El Camino Grande Storm Drain Repair 392 9142-017 Long Term Trash Plan Storm Drain Capture Devices 394 9142-018 Wildcat Creek Outfall Repair 396 9142-019 Village Crosswalk and Sidewalk Rehabilitation 398 9142-020 Quito Road Sidewalk Improvements – Design 400 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 350 BRIDGE AND RETAINING WALLS 9152-001 Fourth Street Bridge Widening 404 9152-002 Quito Road Bridges Replacement – Preliminary Engineering 406 9152-004 Quito Road Bridges Replacement – ROW Acquisition 410 9153-003 Annual Retaining Wall Maintenance and Repairs 412 9153-004 Bainter Avenue Retaining Wall 414 STREET UNDERGROUNDING PROJECTS 9171-001 Rule 20A Electric Undergrounding Conversion Projects 418 9171-002 Quito Road Electric Undergrounding Project 420 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 351 STREET IMPROVEMENTS PROGRAM SUMMARY The Capital Improvement Plan’s Streets 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 six project categories:  Street Resurfacing, Repair & Maintenance Projects  Roadway Safety Improvements  Street Landscape & Beautification Improvements  Sidewalks, Curbs & Storm Drain Improvements  Bridge & Hillside Support Projects  Utility Undergrounding Projects Street Resurfacing, Repair & Maintenance Projects – consist of projects that primarily repave and improve roadway surfaces. Projects include resurfacing for neighborhood, 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 – consists 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 large r 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. Utility Undergrounding Projects – consist of projects that move aboveground utilities underground, such as electric, cable, and telephone lines. Funding for these projects varies, but a significant funding source is Pacific Gas, & Electric’s Rule 20A Program. The following pages include a list of the Street Program’s capital projects, summary funding by account classification, and individual project pages for each of the funded projects in this capital program. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 352 PROJECT LIST SUMMARY The 24 funded projects for FY 2017/18 include three new projects:  Big Basin Way Turnaround – Design  Saratoga Village Crosswalk & Sidewalk Rehabilitation  Quito Road Sidewalk Improvements - Design The following two projects were either closed or moved to the Unfunded Projects List in FY 2016/17:  Beaumont Avenue Traffic Circle  Saratoga Village LED Streetlights PY FY Total Expended 2016/17 Expended Project STREETS PROJECT EXPENDITURE SUMMARY To Date Estimated To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expenditures Street Repair & Resurfacing Projects 9111-003 Annual Roadway Improvements - 1,366,319 1,366,319 3,430,880 - - - - 4,797,199 Roadway Safety Improvements 9121-001 Roadway Safety & Traffic Calming 490,631 36,060 526,691 115,514 50,000 50,000 50,000 50,000 842,205 9121-003 CDBG - ADA Signal Lights 188,286 - 188,286 71,337 - - - - 259,623 9122-005 Highway 9 Safety Improvements - Phase IV 28,247 847,078 875,325 228,436 - - - - 1,103,760 9122-006 Prospect Road Improvements 149,622 177,496 327,118 4,423,707 - - - - 4,750,825 9122-007 Citywide Signal Upgrade Project Phase II 1,207 - 1,207 498,793 - - - - 500,000 9122-008 Big Basin Way Turn Around - Design - - - 50,000 - - - - 50,000 9122-009 Beaumont Traffic Circle - 30,000 30,000 30,000 Street Landscape & Beautification Projects 9138-001 Village LED Streetlights 407,227 33,020 440,247 closed - - - - 440,247 Sidewalks, Curbs & Gutters 9141-005 Infrastructure Maintenance and Repairs - 165,850 165,850 322,667 200,000 200,000 200,000 200,000 1,288,517 9142-004 Village S/W & Pedestrian Enhancements 1,153,793 - 1,153,793 89,816 - - - - 1,243,610 9142-005 Saratoga Avenue Sidewalk 210,281 - 210,281 73,261 - - - - 283,542 9142-011 Village S/W & Pedestrian Improvements 977,106 68,243 1,045,349 75,866 - - - - 1,121,215 9142-013 Quito Road /Paseo Olivos Curb & Gutter - - - 40,000 - - - - 40,000 9142-014 Big Basin Way Sidewalk Repairs - - - 183,990 - - - - 183,990 9142-015 El Camino Grande Storm Drain Pump 7,013 480 7,493 392,508 - - - - 400,000 9142-017 Long Term Trash Plan Capture Devices - - - 30,000 - - - - 30,000 9142-018 Wildcat Creek Outfall Repair - - - 40,000 - - - - 40,000 9142-019 Saratoga Village C/W & S/W Rehabilitation - - - 382,000 - - - - 382,000 9142-020 Quito Road Sidewalk Improvements - Design - - - 50,000 - - - - 50,000 Bridges & Retaining Walls 9152-001 4th Street Bridge Widening 1,078 - 1,078 585,922 - - - - 587,000 9152-002 Quito Road Bridges 994,685 - 994,685 242,425 - - - - 1,237,110 9152-004 Quito Road Bridges - ROW 4,420 27,148 31,568 368,432 - - - - 400,000 9153-003 Annual Retaining Wall Maint & Repairs - 31,045 31,045 358,955 - - - - 390,000 9153-004 Bainter Avenue Retaining Wall - 20,083 20,083 189,917 - - - - 210,000 Utility Undergrounding Project 9171-001 Rule 20A Fund Project - - - - - - - - - 9171-002 Quito Road Undergrounding Project - - - 98,744 - - - - 98,744 Total Project Expenditures 19,681,736 2,802,822 22,484,557 12,343,172 250,000 250,000 250,000 250,000 35,827,729 Budgeted for Fiscal Year moved to Unfunded Project List CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 353 STREET IMPROVEMENT PROGRAM FUNDING SUMMARY Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREETS FUND State Roadway Allocations 580,666 - 580,666 586,229 - - - - 1,166,895 Road/Refuse Impact Fees 2,335,257 351,300 2,686,556 351,300 - - - - 3,037,856 CIP Project Reimbursements 363,541 50,347 413,888 89,028 - - - - 502,916 Contributions/Assessments 951,402 - 951,402 - - - - - 951,402 Transfer In - General Fund 3,491,224 1,305,000 4,796,224 1,034,000 250,000 250,000 250,000 250,000 6,830,224 Transfer In - Other CIP 1,530,227 - 1,530,227 - - - - - 1,530,227 Transfer In - Gas Tax 90,000 - 90,000 - - - - - 90,000 Transfer In - L&L 213,178 - 213,178 - - - - - 213,178 GRANT FUND Federal Grants 3,663,138 860,305 4,523,442 1,439,032 - - - - 5,962,475 State Grants 1,077,956 23,945 1,101,901 4,481,816 - - - - 5,583,717 Local Grants 8,494 - 8,494 400,000 - - - - 408,494 Transfer In - Other CIP 466,818 - 466,818 - - - - - 466,818 GAS TAX FUND Gas Tax Revenue 6,542,748 583,065 7,125,813 664,992 - - - - 7,790,805 Loan Repayment - - 34,576 - - - - 34,576 RMRA - - - 170,740 - - - - 170,740 Transfer In - Other CIP 1,087,404 - 1,087,404 - - - - - 1,087,404 TOTAL REVENUES 22,402,052 3,173,961 25,576,013 9,251,714 250,000 250,000 250,000 250,000 35,827,728 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREETS FUND Salary & Benefits 666,820 - 666,820 - - - - - 666,820 Site Acquisition & Prep 19,630 1,554 21,184 - - - - - 21,184 Materials & Supplies 334,919 93,672 428,591 250,000 - - - - 678,591 Fees & Expenses 40,358 3,134 43,493 - - - - - 43,493 Consultant/Contract Svs 655,132 61,347 716,479 - - - - - 716,479 Project Equip & Fixtures 769 16,319 17,088 - - - - - 17,088 Construction Expenses 4,804,578 891,255 5,695,833 3,978,866 250,000 250,000 250,000 250,000 10,674,699 Reimbursable Expenses 2,091 138 2,228 - - - - - 2,228 Transfers Out 1,472,118 30,000 1,502,118 - - - - - 1,502,118 GRANT FUND Salary & Benefits 47,312 - 47,312 - - - - - 47,312 Site Acquisition & Prep 106,629 11,990 118,620 - - - - - 118,620 Materials & Supplies 150,936 - 150,936 - - - - - 150,936 Fees & Expenses 19,765 7,180 26,945 - - - - - 26,945 Consultant/Contract Svs 859,239 11,357 870,595 - - - - - 870,595 Construction Expenses 3,500,352 828,715 4,329,068 6,370,104 - - - - 10,699,171 Reimbursable Expenses 40,045 1,062 41,107 - - - - - 41,107 Transfers Out 466,818 - 466,818 - - - - - 466,818 GAS TAX FUND Site Acquisition & Prep 11,375 60 11,435 - - - - - 11,435 Materials & Supplies 158,060 1,021 159,081 - - - - - 159,081 Fees & Expenses 5,643 22,851 28,494 - - - - - 28,494 Consultant/Contract Svs 253,606 153,462 407,068 - - - - - 407,068 Project Equip & Fixtures 56,141 - 56,141 - - - - - 56,141 Construction Expenses 4,660,672 667,705 5,328,376 1,744,202 - - - - 7,072,578 Transfers Out 1,348,727 - 1,348,727 - - - - - 1,348,727 TOTAL EXPENDITURES 19,681,735 2,802,822 22,484,556 12,343,172 250,000 250,000 250,000 250,000 35,827,728 FY Total 2016/17 Estimated Project TOTAL ALL FUND SUMMARY Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity BEGINNING BALANCE 2,720,318 3,091,457 - - - - Revenues & Transfers In 22,402,052 3,173,961 25,576,013 9,251,714 250,000 250,000 250,000 250,000 35,827,728 Expenditures & Transfers Out 19,681,735 2,802,822 22,484,556 12,343,172 250,000 250,000 250,000 250,000 35,827,728 ENDING BALANCE 2,720,318 3,091,457 3,091,457 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 354 OPERATING BUDGET IMPACTS Note - Operating Budget impacts identify staff time cost for project management, inclusive of oversight, design, grant reporting, and miscellaneous maintenance. 5 Years Operating 2017/18 2018/19 2019/20 2020/21 2021/22 Costs Street Repair and Resurfacing 9111-003 Annual Roadway Improvements 178,173 182,627 187,193 191,873 196,670 936,535 Roadway Safety Improvements 9121-001 Roadway Safety & Traffic Calming 6,444 6,605 6,771 6,940 7,113 33,874 9121-003 CDBG - ADA Signal Lights 2,040 - - - - 2,040 9122-005 Highway 9 Safety Impr - Phase IV 6,531 6,531 9122-006 Prospect Road Improvements 167,708 - - - - 167,708 9122-007 City-wide Sign Upgrade - Phase II 14,261 - - - - 14,261 9122-008 Big Basin Way Turnaround - Design - - - - - - Sidewalks, Curbs & Gutters - - - - - 9141-005 Infrastructure Maintenance & Repairs 16,757 17,176 17,605 18,045 18,496 88,079 9142-004 Village S/W & Pedestrian Enhancements 2,568 - - - - 2,568 9142-005 Saratoga Avenue Sidewalk 4,955 - - - - 4,955 9142-011 Village S/W & Pedestrian Enhancements 2,169 - - - - 2,169 9142-013 Quito Road/Paseo Olivos Curb & Gutter 1,911 - - - - 1,911 9142-014 Big Basin Way Sidewalk Repairs 5,261 - - - - 5,261 9142-015 El Camino Grande Storm Drain Repair 11,222 - - - - 11,222 9142-017 LT Trash Plan Storm Drain Capture Device 1,255 - - - - 1,255 9142-018 Wildcat Creek Outfall Repair 723 - - - - 723 9142-019 Village C/W & S/W Rehabilitation 10,922 - - - - 10,922 9142-020 Quito Road S/W Improvements - Design - - - - - - Bridges & Retaining Walls 9152-001 Fourth Street Bridge Widening - - - - - - 9152-002 Quito Road Bridges Replacement 6,931 - - - - 6,931 9152-004 Quito Road Bridges - ROW Acquisition 10,534 - - - - 10,534 9153-003 Annual Retaining Wall Maint & Repairs 13,608 13,949 14,297 14,655 15,021 71,530 9153-004 Bainter Ave Retaining Wall 7,200 - - - - 7,200 Utility Undergrounding Project 9171-002 Quito Road Electric Undergrounding - - - - - - Total - Street Projects 471,175$ 220,357$ 225,866$ 231,513$ 237,300$ 1,386,211$ Staff time Staff time Staff time Staff time Staff time No impact to operating budget No impact to operating budget Staff time Staff time Staff time Staff time Staff time Staff time Staff time Staff time No impact to operating budget Staff time Staff time Staff time Staff time Staff time No impact to operating budget Staff time Improvement Projects Operational Impacts Staff time CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 355 STREET REPAIR & RESURFACING PROJECTS CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 356 STREET REPAIR & RESURFACING PROJECTS Project Name Annual Roadway Improvements Project Number 9111-003 Department Public Works Project Manager John Cherbone Description This project funds ongoing street resurfacing and maintenance in order to maintain the City’s pavement infrastructure. Location This Citywide project is conducted throughout the fiscal year. Project Background Every two to three years, an engineering consultant conducts an assessment of City roads using the Paving Condition Index (PCI). The PCI is based on a scale of 0 to 100, with the overall score used to indicate the average of the City’s road conditions. The scale ranges from 0 for roads which have failed, to 100 for roads in excellent condition. Scores are classified into five categories: Category Score “Very Poor” 0-25 “Poor” 25-49 “Good” 50-69 “Very Good” 70-89 “Excellent” 90-100 The City’s overall PCI is currently 71. The City uses this assessment to prioritize and schedule streets and arterial roads for resurfacing. With a total of 135 miles of roadway in Saratoga, contractors perform most street resurfacing work; staff conducts minor repairs to roadways when practical. Resurfacing streets on a regular basis extends the lifetime of the roadways and minimizes the need for larger and more costly projects in the future. Keeping the streets in good condition also reduces liability risks and staff time for minor repairs. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 operating budget are engineering, administrative, and maintenance staff costs of $178,173. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 357 STREET REPAIR & RESURFACING PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Development Ongoing Prepare plans and specifications Begin Bid Process Ongoing Invite contractors to bid on the project Contract Award Ongoing Award contract Estimated Construction Start Ongoing Construction project begins Estimated Completion Date Ongoing Specified project work is completed ANNUAL ROADWAY IMPROVEMENTS 9111-003 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND VTA-Measure B Sales Tax - - - 586,229 - - - - 586,229 Road/Refuse Impact Fees - 351,300 351,300 351,300 - - - - 702,600 Project Reimbursements - 6,500 6,500 - - - - - 6,500 Transfers In - General Fund - 550,000 550,000 295,000 - - - - 845,000 Transfers In - Other CIP 630,648 - 630,648 - - - - - 630,648 TOTAL 630,648 907,800 1,538,447 1,232,529 - - - - 2,770,977 GAS TAX FUND Gas Tax - HUTA - 502,409 502,409 531,524 - - - - 1,033,933 Gas Tax - 7360 (TCR swap)- 80,656 80,656 133,468 - - - - 214,124 Loan Repayment - - - 34,576 - - - - 34,576 RMRA - - - 170,740 - - - - 170,740 Transfers In 572,850 - 572,850 - - - - - 572,850 TOTAL 572,850 583,065 1,155,915 870,308 - - - - 2,026,223 TOTAL REVENUES 1,203,497 1,490,865 2,694,362 2,102,837 - - - - 4,797,199 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND EXP Materials & Supplies - 92,006 92,006 250,000 - - - - 342,006 Consultant/Contract Svs - 5,760 5,760 - - - - - 5,760 Project Equip & Fixtures - 16,319 16,319 - - - - - 16,319 Construction Expenses - 584,631 584,631 1,822,260 - - - - 2,406,891 TOTAL - 698,717 698,717 2,072,260 - - - - 2,770,976 GAS TAX EXP Materials & Supplies - 1,021 1,021 - - - - - 1,021 Fees & Expenses - 2,500 2,500 - - - - - 2,500 Consultant/Contract Svs - 455 455 - - - - - 455 Construction Expenses - 663,627 663,627 1,358,621 - - - - 2,022,247 TOTAL - 667,602 667,602 1,358,621 - - - - 2,026,223 TOTAL EXPENDITURES - 1,366,319 1,366,319 3,430,880 - - - - 4,797,199 Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 358 STREET REPAIR & RESURFACING PROJECTS ANNUAL ROADWAY IMPROVEMENTS – CONT’D Prior FY Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance 630,648 - - - - - - Revenues & T/I 630,648 907,800 1,538,447 1,232,529 - - - - 2,770,976 Expenditures & T/O - 698,717 698,717 2,072,260 - - - - 2,770,976 Ending Balance 630,647.50 839,731 - - - - - GAS TAX FUND Beginning Balance 572,850 488,313 - - - - - Revenues & T/I 572,850 583,065 1,155,915 870,308 - - - - 2,026,223 Expenditures & T/O - 667,602 667,602 1,358,621 - - - - 2,026,223 Ending Balance 572,850 488,313 488,313 - - - - - - TOTAL BALANCE 1,203,497 1,328,044 488,313 - - - - - - Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 359 ROADWAY SAFETY PROJECTS CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 360 ROADWAY SAFETY PROJECTS Project Name Roadway Safety & Traffic Calming Project Number 9121-001 Department Public Works Project Manager Mainini Cabute Description In conjunction with the Traffic Safety Commission (TSC), this project funds traffic calming improvements that include the installation of roadway devices that enhance pedestrian and roadway safety. Location This is a Citywide project; locations vary depending on prioritized projects for the year. Project Background This project represents an annual transfer of $50,000 of City funds in order to make roads safer. The focus of these projects is to decrease driver speed and make pedestrians more visible, resulting in the reduction of the number of accidents in the City. The Traffic Safety Commission (TSC) and staff meet on a bi-monthly basis to review and assess traffic concerns throughout the City. Concerned residents may also attend these meetings to provide input and request improvements. Most TSC recommended 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. The most common uses of these funds are for traffic calming improvements such as speed bumps, radar signs, median chokers, and bulb-outs that slow traffic and increase pedestrian safety. The TSC reviews the Unfunded traffic projects on the CIP list each year and prioritizes according to safety and proximity to schools. Projects completed in Fiscal Year 2016/17 include traffic calming measures on Arroyo De Arguello, installation of an enhanced crosswalk on Ravenswood Drive at Quito Road and other improvements including striping, signage, education, and direct enforcement as identified by the TSC and the City Traffic Engineer. In Fiscal Year 2017/18, projects include lighted crosswalks installed on McCoy Avenue and Cox, and traffic calming measures and bicycle improvements on Allendale Avenue from Chester Avenue to Quito Road. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering, administrative, and maintenance staff costs of $6,444. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 361 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Development Ongoing Prepare plans and specifications Begin Bid Process Ongoing Invite contractors to bid on the project Contract Award Ongoing Award contract Estimated Construction Start Ongoing Construction project begins Estimated Completion Date Ongoing Project is completed ROADWAY SAFETY & TRAFFIC CALMING 9121-001 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Project Reimbursement 850 - 850 - - - - - 850 Transfers In - General Fund 541,355 50,000 591,355 50,000 50,000 50,000 50,000 50,000 841,355 Transfers In - Other CIP - - - - - - - - - Transfers In - CDBG - - - - - - - - - Trasnfers In - L&L - - - - - - - - - TOTAL REVENUES 542,205 50,000 592,205 50,000 50,000 50,000 50,000 50,000 842,205 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Materials & Supplies 63,727 1,110 64,837 - - - - - 64,837 Fees & Expenses 310 - 310 - - - - - 310 Consultant/Contract Svs 143,982 - 143,982 - - - - - 143,982 Construction Expenses 282,611 34,950 317,561 115,514 50,000 50,000 50,000 50,000 633,075 TOTAL EXPENDITURES 490,631 36,060 526,691 115,514 50,000 50,000 50,000 50,000 842,205 Budgeted for Fiscal Year Budgeted for Fiscal Year Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING BALANCE 51,574 65,514 - - - - - Revenues & T/I 542,205 50,000 592,205 50,000 50,000 50,000 50,000 50,000 842,205 Expenditures & T/O 490,631 36,060 526,691 115,514 50,000 50,000 50,000 50,000 842,205 ENDING BALANCE 51,574 65,514 65,514 - - - - - - Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 362 ROADWAY SAFETY PROJECTS Project Name ADA Signal Lights & Curb Cut-outs Project Number 9121-003 Department Public Works Project Manager Macedonio Nunez Description This project will complete ADA improvements to existing signalized intersections throughout Saratoga. Location This project will upgrade the 15 signalized intersections with traffic signals throughout the City. Project Background Replacing the pushbuttons at the City’s 15 signalized intersections with “vibro-tactile” buttons will enhance safety for visually impaired pedestrians. A vibro-tactile type of pedestrian signal has pushbuttons that vibrate when the “WALK” signal is on, indicating to visually impaired pedestrians when to cross the street. This project will also make the intersection’s ramps, curbs, and crosswalks ADA compliant. Crosswalks will be added or repainted where needed; and ramps and curbs will be rebuilt to meet accessibility standards. These improvements will reduce City liability associated with pedestrian accidents. Contractors perform improvements and upgrades. As Community Development Block Grant (CDBG) funding becomes available, more intersections will be upgraded until all City signalized intersections have been completed. The City has completed installations at the following intersections of Saratoga-Sunnyvale Road; Reid Lane, Herriman Avenue, Blauer Drive, Cox Avenue and Sea Gull Way. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $2,040. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 363 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Development 2011 Prepare plans and specifications Begin Bid Process 2014 Invite contractors to bid on the project Contract Award August 2014 Award contract Estimated Construction Start TBD Construction project begins Estimated Completion Date TBD Project is completed ADA SIGNAL LIGHTS & CURB CUT-OUTS 9121-003 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfer In - From General Fund188,286 - 188,286 - - - - - 188,286 TOTAL 188,286 - 188,286 - - - - - 188,286 GRANT FUNDS CDBG - ADA Grant - - - 71,337 - - - - 71,337 TOTAL - - - 71,337 - - - - 71,337 TOTAL REVENUES 188,286 - 188,286 71,337 - - - - 259,623 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Fees & Expenses 1,023 - 1,023 - - - - - 1,023 Consultant/Contract Svs 83,816 - 83,816 - - - - - 83,816 Construction Expenses 103,447 - 103,447 - - - - - 103,447 TOTAL 188,286 - 188,286 - - - - - 188,286 GRANT FUNDS Construction Expenses - - - 71,337 - - - - 71,337 TOTAL - - - 71,337 - - - - 71,337 TOTAL EXPENDITURES 188,286 - 188,286 71,337 - - - - 259,623 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING FUND BAL - - - - - - Revenues & T/I 188,286 - 188,286 - - - - - 188,286 Expenditures & T/O 188,286 - 188,286 - - - - - 188,286 ENDING FUND BALANCE - - - - - - - - - GRANT FUNDS BEGINNING BALANCE - - - - - - - Revenues & T/I - - - 71,337 - - - - 71,337 Expenditures & T/O - - - 71,337 - - - - 71,337 ENDING BALANCE - - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 364 ROADWAY SAFETY PROJECTS Project Name Highway 9 Safety Improvements – Phase IV Project Number 9122-005 Department Public Works Project Manager John Cherbone Description A multi-agency pedestrian improvement project to enhance the safety of the Highway 9 corridor, which links the communities of Saratoga, Monte Sereno, and Los Gatos. Location This project will complete improvements to two segments of pedestrian pathways started in Phase II along Highway 9 between Fruitvale Avenue in Saratoga and Greenwood Road in Monte Sereno. Project Background Phase IV of this project will continue bicycle and pedestrian improvements along the Highway 9 corridor from Saratoga to Los Gatos. Improvements became a priority following several serious accidents on Highway 9. Phase IV improvements include, construction of a retaining wall to widen the shoulder for pedestrian pathways and other pedestrian improvements on Highway 9 from Fruitvale Avenue to El Camino Grande in Saratoga and from Daves Avenue to Greenwood Road in Monte Sereno. These improvements were designed during Phase II, which included installation of pedestrian pathways, curbs, retaining walls, driveway modifications, crosswalks, signage, and striping between Saratoga and Los Gatos on Highway 9 in addition to the design work. A significant portion of funding for this project will be coming from a federal Highway Safety Improvement Grant (HSIP) administered by the California Department of Transportation (Caltrans). As with Phase II of the Highway 9 safety improvements project, the City of Saratoga will be the lead agency for Phase IV. The construction contract was awarded on December 7, 2016. The project was completed in June 2017; however, it will remain open until all grant requirements have been completed. This project is funded through grants, reimbursements from other agencies and a transfer of surplus funds ($58,396) remaining in Phase II ($45,079) and Phase III ($13,317) in Fiscal Year 2014/15. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering, and administrative staff costs of $6,531. Once completed, there will be a minimal increase in maintenance costs. However, the improvements will increase safety on Highway 9 for pedestrians, bicyclists and commuters, reduce accidents, and, therefore, reduce liability risk. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 365 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Bid Process April 2016 Council approves plans and authorizes bidding the project Contract Award December 2016 Council awards contract Estimated Construction Start December 2016 Construction project begins Estimated Completion Date May 2017 Project is completed HIGHWAY 9 SAFETY IMPROVEMENTS PHASE IV 9122-005 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Project Reimbursements - 43,847 43,847 11,517 - - - - 55,364 Transfers In - Other CIP 58,396 - 58,396 - - - - - 58,396 Transfers In - Gas Tax 90,000 - 90,000 - - - - - 90,000 TOTAL 148,396 43,847 192,243 11,517 - - - - 203,760 GRANT FUND Federal - HSIP Grant - 757,391 757,391 142,609 - - - - 900,000 TOTAL - 757,391 757,391 142,609 - - - - 900,000 TOTAL REVENUES 148,396 801,238 949,634 154,126 - - - - 1,103,760 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Fees & Expenses 1,000 2,776 3,776 - - - - - 3,776 Consultant/Contract Svs 27,247 2,777 30,024 - - - - - 30,024 Construction Expenses - 84,133 84,133 85,827 - - - - 169,960 TOTAL 28,247 89,687 117,934 85,827 - - - - 203,760 GRANT FUND Fees & Expenses - 6,493 6,493 - - - - - 6,493 Construction Expenses - 750,898 750,898 142,609 - - - - 893,507 TOTAL - 757,391 757,391 142,609 - - - - 900,000 TOTAL EXPENDITURES 28,247 847,078 875,325 228,436 - - - - 1,103,760 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING FUND BAL 120,149 74,309 - - - - - Revenues & T/I 148,396 43,847 192,243 11,517 - - - - 203,760 Expenditures & T/O 28,247 89,687 117,934 85,827 - - - - 203,760 ENDING FUND BALANCE 120,149 74,309 74,309 - - - - - - GRANT FUND BEGINNING BALANCE - - - - - - - Revenues & T/I - 757,391 757,391 142,609 - - - - 900,000 Expenditures & T/O - 757,391 757,391 142,609 - - - - 900,000 ENDING FUND BALANCE - - - - - - - - - ENDING BALANCE 120,149 74,309 757,391 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 366 ROADWAY SAFETY PROJECTS Project Name Prospect Road Improvements Project Number 9122-006 Department Public Works Project Manager John Cherbone Description This project will improve the Prospect Avenue corridor through the addition of roadway medians, sidewalks, bicycle loops, and ADA ramps to increase pedestrian and bicycle access. Location Project work will occur along a 1.9-mile section of Prospect Road between Saratoga/Sunnyvale Rd and Lawrence Expressway. Project Background This project will improve the safety of the road by physically reducing 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. The scope of the project includes the following:  Installment of sidewalk at several identified gaps, and several ADA compliant ramps at several crosswalks.  Upgrades to existing signalized intersections with audible signals for the visually impaired, and repairs and ADA upgrades to existing curb ramps.  Installment of bicycle detector loops at all the signalized intersections within the project limits, and “Green” bike lanes at the heavily congested intersections of Prospect Rd/Saratoga Sunnyvale Rd and Prospect Rd/Lawrence Expressway.  Installment of new bus shelters at all the VTA bus stops within the project limits tota l of (14) bus stops, and bus pads at all the bus stops.  Installment of a new median with landscaping between Lawrence Expressway and Saratoga Ave.  A continuous Class II bike lane along the entire length of the segment. A $4.2 million OBAG grant and $544,825 from City Gas Tax monies fund this project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $167,708. Once completed, there will be a minimal increase in maintenance costs. However, the improvements will increase safety for pedestrians, bicyclists and commuters, reduce accidents, and, therefore, reduce liability risk. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 367 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase April 2015 Prepare plans and specifications Begin Bid Process November 2016 Council authorizes bidding the project Contract Awarded July 2017 Council approved vendor Estimated Construction Start September 2017 Construction project begins Estimated Completion Date December 2017 Project is completed PROSPECT ROAD IMPROVEMENTS 9122-006 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP GRANT FUND State - BEP Grant - - - 4,206,000 - - - - 4,206,000 TOTAL - - - 4,206,000 - - - - 4,206,000 GAS TAX FUND Transfer In - Gas Tax Fund 544,825 - 544,825 - - - - - 544,825 TOTAL 544,825 - 544,825 - - - - - 544,825 TOTAL REVENUES 544,825 - 544,825 4,206,000 - - - - 4,750,825 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP GRANT FUND Fees & Expenses 40 - 40 - - - - - 40 Construction Expenses - - - 4,205,960 - - - - 4,205,960 TOTAL 40 - 40 4,205,960 - - - - 4,206,000 GAS TAX FUND Site Acquisition & Prep - 60 60 - - - - - 60 Fees & Expenses 684 20,351 21,035 - - - - - 21,035 Consultant/Contract Svs 128,495 153,007 281,502 - - - - - 281,502 Construction Expenses 20,402 4,078 24,480 217,748 242,228 TOTAL 149,581 177,496 327,077 217,748 - - - - 544,825 TOTAL EXPENDITURES 149,622 177,496 327,118 4,423,707 - - - - 4,750,825 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP GRANT FUND BEGINNING FUND BAL (40) (40) - - - - - Revenues & T/I - - - 4,206,000 - - - - 4,206,000 Expenditures & T/O 40 - 40 4,205,960 - - - - 4,206,000 ENDING FUND BALANCE (40) (40) (40) - - - - - - GAS TAX FUND BEGINNING BALANCE 395,244 217,748 - - - - - Revenues & T/I 544,825 - 544,825 - - - - - 544,825 Expenditures & T/O 149,581 177,496 327,077 217,748 - - - - 544,825 ENDING FUND BALANCE 395,244 217,748 217,748 - - - - - - ENDING BALANCE 395,203 217,707 544,825 - - - - - 544,825 Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 368 ROADWAY SAFETY PROJECTS Project Name Citywide Signal Upgrade Project - Phase II Project Number 9122-007 Department Public Works Project Manager Macedonio Nunez Description This project continues the development of a citywide master signal system to standardize and coordinate the City’s traffic signals and allow real-time monitoring and control along Saratoga’s major traffic corridors. The project also allows for future regional integration. Location This Citywide project will incorporate all City owned signals in Saratoga. Project Background The City’s signal timing settings at intersections were last coordinated in approximately 2001. Subsequently, the City of Saratoga received a Regional Signal Timing Program (RSTP) grant from VTA in 2006 to conduct a citywide signal timing study. Phase I of the project included developing updated signal coordination plans during the morning, afternoon, and evening periods for the signalized intersections in the City of Saratoga. Phase I: Upgrade hardware and software at all City signals, and provide inter-connect hardware with wire and wireless technology. This phase is complete. Phase II: Install a Traffic Management System at City Hall, and communication equipment in all signals along Saratoga Avenue between Fruitvale Avenue and Cox Avenue. Inter-connect signals along Coordination Corridors and coordinate with the Management System. With the Traffic Management System, City engineers will be able to manage signal coordination to improve traffic flow at some of the City’s busiest intersections. Additionally, the system will be able to monitor live traffic patterns and adjust signal phasing as needed. A $400,000 VTA grant and a $100,000 transfer from other CIP projects fund this project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $14,261. The new system will reduce call-out expenses for traffic signal maintenance costs, as staff will be able to manage signal-timing changes. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 369 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase March 2017 Prepare plans and specification Begin Bid Process May 2017 Council authorizes bidding the project Contract Awarded November 2017 Council approves vendor Estimated Construction Start April 2018 Construction project begins Estimated Completion Date August 2018 Project is completed CITYWIDE SIGNAL UPGRADE PROJECT PHASE II 9122-007 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding GRANT FUNDS Local - VTA Grant - - - 400,000 - - - - 400,000 TOTAL - - - 400,000 - - - - 400,000 GAS TAX FUND Transfer In - Gas Tax 100,000 - 100,000 - - - - - 100,000 TOTAL 100,000 - 100,000 - - - - - 100,000 TOTAL REVENUES 100,000 - 100,000 400,000 - - - - 500,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended GRANT FUNDS Consultant/Contract Svs 965 - 965 - - - - - 965 Construction Expenses - - - 399,035 - - - - 399,035 TOTAL 965 - 965 399,035 - - - - 400,000 GAS TAX FUND Consultant/Contract Svs 241 - 241 - - - - - 241 Construction Expenses - - - 99,759 - - - - 99,759 TOTAL 241 - 241 99,759 - - - - 100,000 TOTAL EXPENDITURES 1,207 - 1,207 498,793 - - - - 500,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity GRANT FUNDS BEGINNING BALANCE (965) (965) - - - - - Revenues & T/I - - - 400,000 - - - - 400,000 Expenditures & T/O 965 - 965 399,035 - - - - 400,000 ENDING BALANCE (965) (965) (965) - - - - - - GAS TAX FUND BEGINNING FUND BAL - 99,759 99,759 - - - - - Revenues & T/I 100,000 - 100,000 - - - - - 100,000 Expenditures & T/O 241 - 241 99,759 - - - - 100,000 ENDING FUND BALANCE 99,759 99,759 99,759 - - - - - - ENDING FUND BALANCE 98,794 98,794 100,000 - - - - - 100,000 Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 370 ROADWAY SAFETY PROJECTS Project Name Big Basin Way Turnaround - Design Project Number 9122-008 Department Public Works Project Manager John Cherbone Description This project will fund the design of a turnaround on Big Basin Way to improve traffic circulation through Saratoga Village. Location The Turnaround is located just past the corner of 6th Street and Big Basin Way. Project Background The City would like to improve the traffic flow in the Village area by providing a turnaround at the end of Big Basin Way. The scope of the project will be determined in the Design phase of the project, beginning in July 2018. A $50,000 transfer from the CIP Reserve funds this project. Operating Budget Impacts There is no impact to the Fiscal Year 2017/18 Operating Budget, as the design phase of this project will begin in July 2018. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 371 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase July 2018 Begin Bid Process TBD Contract Awarded TBD End Design Phase TBD BIG BASIN WAY TURNAROUND - DESIGN 9122-008 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund - - - 50,000 - - - - 50,000 TOTAL REVENUES - - - 50,000 - - - - 50,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Transfers Out - - - 50,000 - - - - 50,000 TOTAL EXPENDITURES - - - 50,000 - - - - 50,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING BALANCE - - - - - - - Revenues & T/I - - - 50,000 - - - - 50,000 Expenditures & T/O - - - 50,000 - - - - 50,000 ENDING BALANCE - - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 372 ROADWAY SAFETY PROJECTS Project Name Beaumont Avenue Traffic Circle Project Number 9122-009 Department Public Works Project Manager John Cherbone Description This project will fund the installation of a traffic circle on Beaumont Avenue. Location The traffic circle would be located at the intersection of Beaumont Avenue and Saratoga Vista Court. Project Background Beaumont Avenue is a two-lane collector street that extends north-south between Herriman Avenue and Glasgow Drive. The posted speed limit on Beaumont Avenue is 25 mph. Over the past decade, there have been a handful of residents living on Beaumont Avenue or near Beaumont Avenue who have spoken at the Traffic Safety Commission (TSC) expressing their concerns about traffic safety and speeding vehicles in that area. In the last 2 years, the issue of speeding at Beaumont has been discussed by the TSC at four separate meetings. Residents have requested speed bumps, traffic signals and stops signs for that area. The City’s traffic engineer has stated that there are not enough warrants to justify these specific traffic calming methods at this location. In 2013, the City conducted its regularly scheduled speed survey and the 85th percentile speeds were observed to be approximately 35 miles per hour on Beaumont Avenue between Herriman Avenue and Glasgow Drive. A $30,000 transfer from the CIP Reserve funds this project. In FY 2016/17, this project was moved to the Unfunded Project list and funds returned to the CIP Reserve. Operating Budget Impacts There is no impact to the Fiscal Year 2017/18 Operating Budget; the project was closed in Fiscal Year 2016/17. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 373 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Closed June 2017 Moved to Unfunded Project List BEAUMONT AVENUE TRAFFIC CIRCLE 9122-009 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund 30,000 - 30,000 - - - - - 30,000 TOTAL REVENUES 30,000 - 30,000 - - - - - 30,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Transfers Out - 30,000 30,000 - - - - - 30,000 TOTAL EXPENDITURES - 30,000 30,000 - - - - - 30,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING BALANCE 30,000 - - - - - - Revenues & T/I 30,000 - 30,000 - - - - - 30,000 Expenditures & T/O - 30,000 30,000 - - - - - 30,000 ENDING BALANCE 30,000 - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 374 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 375 STREET LANDSCAPE & BEAUTIFICATION IMPROVEMENTS CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 376 STREET LANDSCAPE & BEAUTIFICATION IMPROVEMENTS Project Name Village LED Street Lights Project Number 9138-001 Department Public Works Project Manager Macedonio Nunez Description Replacement of existing High Pressure Sodium (HPS) street lights with LED lights in the Village. Location This project is located in Saratoga Village. Project Background The Federal Energy Independence and Security Act of 2007 established the Energy Efficiency Community Block Grant (EECBG) program. The purpose of this program is to reduce fossil fuel emissions in an environmentally sustainable manner, reduce energy consumption, and improve energy efficiency in the building, transportation, and other appropriate sectors. The program received funding as a result of the passage of the American Recovery and Reinvestment Act of 2009. Large municipalities, Indian tribes, and states received a direct allocation of EECBG funds for energy efficiency projects from the California Energy Commission. Saratoga was eligible to receive just over $169,000 for cost effective energy efficiency projects. In December 2009, Council adopted a resolution authorizing use of these funds to replace the current High Pressure Sodium street lights in the Village with light-emitting diode (LED) street lights. In addition, $250,900 of the CMAQ grant awarded for Village Pedestrian Enhancements projects has been designated for this phase of the project. The required local match for this grant is funded from the City’s CIP funds. The installation of the LED street lights was completed in 2012. In FY 2016/17, the project was closed. Operating Budget Impacts Th ere is no impact to the Fiscal Year 2017/18 Operating Budget; the project was closed in Fiscal Year 2016/17. In previous years, the City spent $5,000 annually to maintain the High Pressure Sodium lights in the Village area. The LED lights have a much longer lifespan than High Pressure Sodium lights leading to decreases in both regular maintenance and replacement costs. Additionally, LED lights use 50% less energy to power leading to lower PG&E billing rates. The project also qualified for a rebate from PG&E. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 377 STREET LANDSCAPE & BEAUTIFICATION IMPROVEMENTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Submit Grant January 2010 City submits EECBG grant application Contract Award April 2012 Award construction contract Estimated Construction Start May 2012 Construction project begins Estimated Completion Date July 2012 Final reports submitted to the CEC Project Completion April 2017 Project completed. Final administrative tasks complete VILLAGE LED STREET LIGHTS 9138-001 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - Other CIP 32,500 - 32,500 - - - - - 32,500 TOTAL STREET FUND 32,500 - 32,500 - - - - - 32,500 STREET GRANT FUND Federal - Energy Comm PT 379,561 28,185 407,746 - - - - - 407,746 TOTAL GRANT FUND 379,561 28,185 407,746 - - - - - 407,746 TOTAL REVENUES 412,061 28,185 440,246 - - - - - 440,246 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Fees & Expenses 513 - 513 - - - - - 513 Consultant/Contract Svs 345 - 345 - - - - - 345 Construction Expenses 26,807 4,697 31,504 - - - - - 31,504 Reimbursable Expenses - 138 138 - - - - - 138 TOTAL STREET FUND 27,665 4,835 32,500 - - - - - 32,500 GRANT FUND Materials & Supplies 143,439 - 143,439 - - - - - 143,439 Fees & Expenses 1,770 - 1,770 - - - - - 1,770 Consultant/Contract Svs 8,280 - 8,280 - - - - - 8,280 Construction Expenses 206,462 27,123 233,585 - - - - - 233,585 Reimbursable Expenses 19,611 1,062 20,673 - - - - - 20,673 TOTAL GRANT FUND 379,561 28,185 407,747 - - - - - 407,747 TOTAL EXPENDITURES 407,227 33,020 440,247 - - - - - 440,247 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity BEGINNING BALANCE 4,835 - - - - - - Revenues & T/I 32,500 - 32,500 - - - - - 32,500 Expenditures & T/O 27,665 4,835 32,500 - - - - - 32,500 ENDING BALANCE 4,835 - - - - - - - - GRANT FUND BEGINNING BALANCE - - - - - - - Revenues & T/I 379,561 28,185 407,746 - - - - - 407,746 Expenditures & T/O 379,561 28,185 407,747 - - - - - 407,747 ENDING BALANCE - - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 378 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 379 SIDEWALKS, CURBS & STORM DRAINS CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 380 SIDEWALKS, CURBS & STORM DRAINS Project Name Annual Infrastructure Maintenance and Repairs Project Number 9141-005 Department Public Works Project Manager Rick Torres Description This project funds infrastructure maintenance related to sidewalks, curbs and gutters, storm drains and bridges. Location This is a citywide project. Project Background Storm drains: Storm drains are inspected by the City of Saratoga Public Works Department and West Valley Sanitation District to identify failures, or potential failures. Sections of storm drains that have failed, which often results in flooding, are either replaced or repaired to prevent future failures. Curbs and Gutters: Curbs and gutters need to be maintained on a regular basis. Ongoing repairs 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. Sidewalks: Sidewalk repairs ensure that the City’s sidewalks are maintained in good condition, minimizing the need for larger and more costly improvement projects in the future. Additionally, repairs to City sidewalks minimize tripping hazards and reduce liability risk. Approximately 35,000 square feet of sidewalk is repaired each year. There are approximately 17 linear miles of sidewalk in Saratoga. Bridges: Each year Caltrans inspects all bridges in the state, including 12,200 bridges owned by local government agencies. Caltrans provides repair recommendations, determines the safe load capacity of all bridges, and assists in specifications and estimates for bridge maintenance projects. Annual upgrades and repairs to the City’s various infrastructure helps to keep them functioning properly, thereby reducing expenses associated with failure to those systems. In FY 2016/17, repairs were made to bridge approaches on Cox and Comer Avenues, a nd Beuchamps Lane. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering, administrative and maintenance staff costs of $16,757. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 381 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase Ongoing Begin Bid Process Ongoing Contract award Ongoing Estimated Construction Start Ongoing Estimated Completion Date Ongoing ANNUAL INFRASTRUCTURE MAINTENANCE AND REPAIRS 9141-005 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund - 200,000 200,000 200,000 200,000 200,000 200,000 200,000 1,200,000 Transfers In - Other CIP 88,517 - 88,517 - - - - - 88,517 TOTAL REVENUES 88,517 200,000 288,517 200,000 200,000 200,000 200,000 200,000 1,288,517 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2011/12 2012/13 2013/14 2014/15 Expended CIP STREET FUND Materials & Supplies - 556 556 - - - - - 556 Construction Expenses - 165,294 165,294 322,667 200,000 200,000 200,000 200,000 1,287,962 TOTAL EXPENDITURES - 165,850 165,850 322,667 200,000 200,000 200,000 200,000 1,288,517 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2011/12 2012/13 2013/14 2014/15 Activity CIP STREET FUND BEGINNING FUND BAL 88,517 122,667 - - - - - Revenues & T/I 88,517 200,000 288,517 200,000 200,000 200,000 200,000 200,000 1,288,517 Expenditures & T/O - 165,850 165,850 322,667 200,000 200,000 200,000 200,000 1,288,517 ENDING FUND BALANCE 88,517 122,667 122,667 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 382 SIDEWALKS, CURBS & STORM DRAINS Project Name Village Sidewalk & Pedestrian Enhancements Phase I - Design Project Number 9142-004 Department Public Works Project Manager Macedonio Nunez Description This project funds sidewalk and pedestrian safety improvements in the Village. Location This project is located at several locations in Saratoga Village; Big Basin Way and Highway 9, Big Basin Way and Blaney Plaza, Big Basin Way and 3rd Street, and Big Basin Way and 4th Street. Project Background In 2008, the City entered into a contract with Gates and Associates for design improvements to the Village that would increase pedestrian safety and the beauty of the City’s downtown area. The design included pedestrian bulb-outs and enhanced crosswalks that will make pedestrians more visible to drivers. Plans also included additional landscaping, benches, and bike racks. Following the award of the contract to Gates and Associations for design work, the City held two community meetings to communicate the purpose of the project and to seek public input on the design of the sidewalk and pedestrian improvements. A conceptual design was presented to Council in April 2009 and the detailed design wa s completed during Fiscal Year 2009/10. Construction began in the same fiscal year. Actual work on the project was completed in FY 14/15, however, the project remains open until all grant requirements have been completed and reimbursement has been received. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $2,568. Upon completion, the City will be responsible for maintaining additional landscaping, bulb outs, crosswalks, and other features. However, the project will also make significant improvements to pedestrian safety in the Village by increasing visibility of pedestrians. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 383 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase October, 2008 Prepare plans and specifications Begin Bid Process April, 2010 Council approves plans and authorizes bidding the project Contract award May, 2010 Council awards contract Estimated Construction Start June, 2010 Construction project begins Estimated Completion Date July, 2015 Project is complete. Final administrative tasks nearly complete VILLAGE SIDEWALK & PEDESTRIAN IMPROVEMENTS 9142-004 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Contributions / Donations 737,846 - 737,846 - - - - - 737,846 Transfers In - Other CIP 80,764 - 80,764 - - - - - 80,764 TOTAL STREET FUND 818,610 - 818,610 - - - - - 818,610 GRANT FUND State MTC (TDA)335,184 - 335,184 89,816 - - - - 425,000 TOTAL GRANT FUND 335,184 - 335,184 89,816 - - - - 425,000 TOTAL REVENUES 1,153,793 - 1,153,793 89,816 - - - - 1,243,610 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Materials & Supplies 33,072 - 33,072 - - - - - 33,072 Fees & Expenses 6,200 - 6,200 - - - - - 6,200 Consultant/Contract Svs 46,523 - 46,523 - - - - - 46,523 Construction Expenses 449,249 - 449,249 - - - - - 449,249 Reimbursable Expenses 1,143 - 1,143 - 1,143 Transfers Out 282,421 - 282,421 - - - - - 282,421 TOTAL STREET FUND 818,610 - 818,610 - - - - - 818,610 GRANT FUND Consultant/Contract Svs 12,202 - 12,202 - - - - - 12,202 Construction Expenses 321,808 - 321,808 89,816 - - - - 411,624 Reimbursable Expenses 1,174 - 1,174 - - - - - 1,174 TOTAL GRANT FUND 335,184 - 335,184 89,816 - - - - 425,000 TOTAL EXPENDITURES 1,153,793 - 1,153,793 89,816 - - - - 1,243,610 Prior FY Total Year 2016/17 Estimated Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance - - - - - - - Revenues & T/I 818,610 - 818,610 - - - - - 818,610 Expenditures & T/O 818,610 - 818,610 - - - - - 818,610 ENDING FUND BALANCE - - - - - - - - - GRANT FUND Beginning Balance - - - - - - - Revenues & T/I 335,184 - 335,184 89,816 - - - - 425,000 Expenditures & T/O 335,184 - 335,184 89,816 - - - - 425,000 ENDING FUND BALANCE - - - - - - - - - ENDING BALANCE - - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 384 SIDEWALKS, CURBS & STORM DRAINS Project Name Saratoga Avenue Sidewalk Project Number 9142-005 Department Public Works Project Manager Macedonio Nunez Description This project will install new sections of sidewalk on Saratoga Avenue. Location New sidewalk sections will be located along Saratoga Avenue between Heritage Oak and Orchard Road. Project Background 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. Each year, approximately $25,000 of TDA grant funding is awarded. After several years, when sufficient amount of funds have accumulated, the City identifies the pathway sections to complete along Saratoga Avenue and uses the funding to fill these gaps. Sidewalks offer a number of benefits. They 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 walk-ability 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. Additional funding needs to be identified and secured in order to close the final sidewalk gaps located on Saratoga Avenue near La Paloma and Lutheria Way. Work for this project is conducted by a contractor and managed by City staff. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering, administrative, and maintenance staff costs of $4,955. The project will make significant improvements to pedestrian safety on Saratoga Avenue. Extending the existing sidewalk will increase maintenance costs. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 385 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase Ongoing Prepare plans and specifications Contract Awarded Ongoing Vendor selected Estimated Construction Start Ongoing Construction project phase begins Estimated Completion Date October 2018 Project is completed SARATOGA AVENUE SIDEWALK 9142-005 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding GRANT FUND State MTC (TDA)236,597 23,945 260,542 23,000 - - - - 283,542 TOTAL REVENUES 236,597 23,945 260,542 23,000 - - - - 283,542 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended GRANT FUND Consultant/Contract Svs 7,600 - 7,600 - - - - - 7,600 Construction Expenses 201,955 - 201,955 73,261 - - - - 275,215 Reimbursable Expenses 727 - 727 - - - - - 727 TOTAL EXPENDITURES 210,281 - 210,281 73,261 - - - - 283,542 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity GRANT FUND BEGINNING BALANCE 26,316 50,261 - - - - - Revenues & T/I 236,597 23,945 260,542 23,000 - - - - 283,542 Expenditures & T/O 210,281 - 210,281 73,261 - - - - 283,542 ENDING BALANCE 26,316 50,261 50,261 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 386 SIDEWALKS, CURBS & STORM DRAINS Project Name Village Sidewalk & Pedestrian Enhancements Phase II – Const Project Number 9142-011 Department Public Works Project Manager Macedonio Nunez Description This project funds the second phase of sidewalk and pedestrian safety improvement construction in the Village. Location This project is located in Saratoga Village at Big Basin Way and Highway 9 at Blaney Plaza; Big Basin Way and 5th Street; Big Basin Way and 6th Street; and Big Basin Way just past Highway 9. Project Background The Village is the historical downtown center of Saratoga and is the main corridor for local retail and professional offices. Businesses found along this road include fine restaurants, salons, galleries, home furniture show rooms, bakeries, coffee shops, banks, and delicatessens. As a shopping and dining destination, there is a good deal of pedestrian traffic as shoppers and diners enjoy the Village’s ambiance. In 2008, the City entered into a contract with Gates and Associates to design improvements to the Village that would increase pedestrian safety and the beauty of the City’s dow ntown area. The design included pedestrian bulb-outs and enhanced crosswalks that will make pedestrians more visible to drivers. Plans also included additional landscaping, benches, and bike racks. Following the award of contract with Gates and Associates for design work, the City held two community meetings to explain the purpose of the project and seek public input on the design of the sidewalk and pedestrian improvements. A conceptual design was presented to the City Council in April 2009. Phase I of construction began in June, 2010. Phase II is focused in the area near Blaney Plaza. The project will add bulb-outs that are more pedestrian, enhanced crosswalks, safety improvements in the Village, as well as a renovation of Blaney Plaza. The improved enhancements to pedestrian safety and appearance of the Saratoga Village may make it a more popular retail and dining destination. A $776,000 Federal Congestion Mitigation and Air Quality (CMAQ) grant and $345,115 from other CIP project fund this project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $2,169. Upon completion, the City will be responsible for maintaining additional landscaping, bulb outs, crosswalks, and other features. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 387 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase May 2011 Prepare plans and specifications Design Approval February 2012 Council approves plans Begin Bid Process April 2013 Council authorizes bidding the project Contract Award August 2013 Council awards contract Estimated Construction Start May 2014 Construction project begins Estimated Completion Date June 2016 Project is completed VILLAGE SIDEWALK & PEDESTRIAN ENHANCEMENTS PHASE II – CONSTRUCTION 9142-011 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - Other CIP 345,115 - 345,115 - - - - - 345,115 TOTAL STREET FUND 345,115 - 345,115 - - - - - 345,115 GRANT FUND Federal - CMAQ PT 650,415 50,694 701,109 74,991 - - - - 776,100 TOTAL GRANT FUND 650,415 50,694 701,109 74,991 - - - - 776,100 TOTAL REVENUES 995,530 50,694 1,046,224 74,991 - - - - 1,121,215 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Materials & Supplies 3,505 - 3,505 - - - - - 3,505 Fees & Expenses 2,484 - 2,484 - - - - - 2,484 Consultant/Contract Svs 5,824 - 5,824 - - - - - 5,824 Construction Expenses 282,379 17,549 299,928 875 - - - - 300,803 Transfers Out 32,500 - 32,500 - - - - - 32,500 TOTAL STREET FUND 326,691 17,549 344,240 875 - - - - 345,115 GRANT FUND Materials & Supplies 6,837 - 6,837 - - - - - 6,837 Fees & Expenses 610 - 610 - - - - - 610 Consultant/Contract Svs 13,261 - 13,261 - - - - - 13,261 Construction Expenses 629,707 50,694 680,401 74,991 - - - - 755,392 TOTAL GRANT FUND 650,415 50,694 701,109 74,991 - - - - 776,100 TOTAL EXPENDITURES 977,106 68,243 1,045,349 75,866 - - - - 1,121,215 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance 18,424 875 - - - - - Revenues & T/I 345,115 - 345,115 - - - - - 345,115 Expenditures & T/O 326,691 17,549 344,240 875 - - - - 345,115 ENDING FUND BALANCE 18,424 - 875 - - - - - - GRANT FUND Beginning Balance - - - - - - - Revenues & T/I 650,415 50,694 701,109 74,991 - - - - 776,100 Expenditures & T/O 650,415 50,694 701,109 74,991 - - - - 776,100 ENDING FUND BALANCE - - - - - - - - - ENDING BALANCE 18,424 - 875 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 388 SIDEWALKS, CURBS & STORM DRAINS Project Name Quito Road Paseo Olivos Curb and Gutter Project Number 9142-013 Department Public Works Project Manager Rick Torres Description This project will install a new curb and gutter system and replace damaged asphalt at Quito Road and Paseo Olivos. Location This project is located on the southwest and northwest corners of Quito Road and Paseo Olivos. Project Background There are currently no storm drains installed on the corner of Quito Road and Paseo Olivos. As a result, water collects at the corner, creating potential traffic hazards, and undermines the roadway. In Fiscal Year 2016/17, the scope of the project was revised from a storm drain project to a curb and gutter project. The requirements for obtaining an encroachment permit from the City of San Jose were becoming too prohibitive for the project to proceed in its original sc ope and budget. The revised project will install a gutter through the intersection of Paseo Olivos and Quito Road allowing the water to runoff into an existing City storm drain located north of this intersection. $40,000 from Gas Tax revenue funds this project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $1,911. The installation of the gutter will reduce the need for continuous repair of damaged asphalt and lower the City’s liability risk. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 389 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Development November 2016 Prepare Plans & Specifications Contract Award January 2017 Vendor selected Estimated Construction Start July 2017 Construction project begins Estimated Completion Date December 2017 Project is complete QUITO ROAD PASEO OLIVOS STORM DRAIN 9142-013 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding GAS TAX FUND Transfers In Gas Tax 40,000 - 40,000 - - - - - 40,000 TOTAL GAS TAX FUND 40,000 - 40,000 - - - - - 40,000 TOTAL REVENUES 40,000 - 40,000 - - - - - 40,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended GAS TAX FUND Construction Expenses - - - 40,000 - - - - 40,000 TOTAL GAS TAX FUND - - - 40,000 - - - - 40,000 TOTAL EXPENDITURES - - - 40,000 - - - - 40,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity GAS TAX FUND Beginning Balance 40,000 40,000 - - - - - Revenues & T/I 40,000 - 40,000 - - - - - 40,000 Expenditures & T/O - - - 40,000 - - - - 40,000 Ending Balance 40,000 40,000 40,000 - - - - - - ENDING BALANCE 40,000 40,000 40,000 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 390 SIDEWALKS, CURBS & STORM DRAINS Project Name Big Basin Way Sidewalk Repairs Project Number 9142-014 Department Public Works Project Manager John Cherbone Description This project will repair and replace sidewalk, curb, and gutter along Big Basin Way, on an as needed basis, to reduce tripping hazards and beautify the village. Location This project is located on Big Basin Way between 6th street and Hwy 9. Project Background The Village is the historical downtown center of Saratoga and is the main corridor for local retail and professional offices. Businesses found along this thoroughfare road include fine restaurants, salons, galleries, home furniture show rooms, wine tasting rooms, bakeries, banks, and delis. As a shopping and dining destination, there is a good deal of pedestrian traffic as shoppers and diners enjoy the Village’s ambiance. This project will improve patron safety along this major active corridor and enhance Saratoga’s pedestrian-friendly environment through ensuring a safe and convenient walking experience. This project provides funding for removal and replacement of any sidewalk, curb, and gutter along the Saratoga Village that is deteriorating, or considered a potential tripping hazard. A $163,000 STP OBAG grant and gas tax revenues of $20,990 fund this project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $5,261. Upon completion, costs for minor repairs will be reduced, and liability risks will be lowered with infrastructure in new condition and in compliance with current standards. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 391 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase September 2015 Prepare plans and specifications Contract Award January 2018 Council awards contract Estimated Construction Start May 2018 Construction Begins Estimated Completion Date December 2018 Project is completed BIG BASIN WAY SIDEWALK REPAIRS 9142-014 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding GRANT FUND State - STP OBAG Grant - - - 163,000 - - - - 163,000 TOTAL GRANT FUND - - - 163,000 - - - - 163,000 GAS TAX FUND Gas Tax 20,990 - 20,990 - - - - - 20,990 TOTAL GAS TAX FUND 20,990 - 20,990 - - - - - 20,990 TOTAL REVENUES 20,990 - 20,990 163,000 - - - - 183,990 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended GRANT FUND Construction Expenses - - - 163,000 - - - - 163,000 TOTAL GRANT FUND - - 163,000 - - - - 163,000 GAS TAX FUND Construction Expenses - - - 20,990 - - - - 20,990 TOTAL GAS TAX FUND - - - 20,990 - - - - 20,990 TOTAL EXPENDITURES - - - 183,990 - - - - 183,990 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP GRANT FUND Beginning Balance - - - - - - - - Revenues & T/I - - - 163,000 - - - - 163,000 Expenditures & T/O - - - 163,000 - - - - 163,000 Ending Balance - - - - - - - GAS TAX FUND Beginning Balance - 20,990 - - - - - Revenues & T/I - - 20,990 - - - - - 20,990 Expenditures & T/O - - - 20,990 - - - - 20,990 Ending Balance - - 20,990 - - - - - - ENDING BALANCE - - 20,990 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 392 SIDEWALKS, CURBS & STORM DRAINS Project Name El Camino Grande Storm Drain Pump Project Number 9142-015 Department Public Works Project Manager Iveta Harvancik Description This project will install a storm drain system at El Camino Grande. Location This project is located on El Camino Grande, Saratoga-Los Gatos Road, Austin Way and Bountiful Acres Way. Project Background This is the second part of the Monte Vista Drive/El Camino Grande area storm drain improvements. This section of the roadway receives a large amount of storm water runoff from Monte Vista Drive and El Camino Grande. In the initial development of the area, no storm drain system was constructed. The increase in home construction led to a decrease in surface area that could absorb water runoff. Without a proper storm drain system in place, flooding could occur resulting in erosion and possible street failure. The drainage issues were partially resolved with the installation of a storm drain pump at Monte Vista Drive. A second pump is needed at El Camino Grande to draw water across Highway 9 to the closest storm drain located near Bountiful Acres Way. In Fiscal Year 2016/17, the estimated costs were revised from $150,000 to $361,000 due to an increase in the scope of the project. The project was partially funded through a $255,000 transfer from the General Fund. For Fiscal Year 2017/18, the project costs have been revised from $361,000 to $400,000 due to increases in labor and material costs. A $400,000 transfer from the CIP Reserve funds this project. Operating Budget Impacts Incorporated in the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $11,222. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 393 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase March 2017 Prepare plans and specifications Begin Bid Process July 2017 Finalize plans and bid project Estimated Construction Start September 2017 Begin Construction Estimated Completion Date December 2017 Project Complete EL CAMINO GRANDE STORM DRAIN PUMP 9142-015 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund 150,000 105,000 255,000 145,000 - - - - 400,000 TOTAL REVENUES 150,000 105,000 255,000 145,000 - - - - 400,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Consultant/Contract Svs 7,013 480 7,493 - - - - - 7,493 Construction Expenses - - - 392,508 - - - - 392,508 TOTAL EXPENDITURES 7,013 480 7,493 392,508 - - - - 400,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING BALANCE 142,988 247,508 - - - - - Revenues & T/I 150,000 105,000 255,000 145,000 - - - - 400,000 Expenditures & T/O 7,013 480 7,493 392,508 - - - - 400,000 ENDING BALANCE 142,988 247,508 247,508 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 394 SIDEWALKS, CURBS & STORM DRAINS Project Name Long-Term Trash Plan Storm Drain Capture Devices Project Number 9142-017 Department Public Works Project Manager Mainini Cabute Description This project will install 15 storm drain full capture devices in areas that have the highest density of trash to implement the City’s Long Term Trash Plan (LTTP). Location Identified locations include Prospect Road, sections of Saratoga-Sunnyvale near Saratoga High School, Sea Gull and Prospect Road, Congress Springs Park and Saratoga Village. Project Background The Municipal Regional Stormwater National Pollutant Discharge Elimination System (NPDES) Permit for Phase I communities in the San Francisco Bay (Order R2 -2009-0074), also known as the Municipal Regional Permit (MRP), became effective on December 1, 2009. Provision C.10.c of the MRP requires Permittees to submit a Long-Term Trash Load Reduction Plan (Long-Term Plan) by February 1, 2014. Long-Term Plans must describe control measures that are currently being implemented, including the level of implementation, and additional control measures that will be implemented and/or require an increased level of implementation designed to attain a 70% trash load reduction by July 1, 2017, and 100% by July 1, 2022. The City of Saratoga submitted a Long-Term Trash Plan (LTTP) in compliance with MRP provision C.10.c. The goal of the Long-Term Trash Plan is to solve trash problems in receiving waters by reducing the impacts associated with trash in discharges from the City of Saratoga’s municipal separate storm sewer system that are regulated by NPDES Permit requirements. The City believes that purchasing and installing 15 storm drain full capture devices will effectively reduce the instances of trash entering the storm drains and flowing into the Bay. The City developed the LTTP using a regionally consistent outline and guidance developed by the Bay Area Stormwater Management Agencies Association (BASMAA) and reviewed by San Francisco Bay Regional Water Quality Control Board staff. A $30,000 transfer from the CIP Reserve funds this project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are administrative and maintenance staff costs of $1,255. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 395 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Purchase March 2017 Purchase full capture devices Estimated Completion Date October 2017 Complete installation of capture devices LONG-TERM TRASH PLAN STORM DRAIN CAPTURE DEVICES 9142-017 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund 30,000 - 30,000 - - - - - 30,000 TOTAL REVENUES 30,000 - 30,000 - - - - - 30,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Construction Expenses - - - 30,000 - - - - 30,000 TOTAL EXPENDITURES - - - 30,000 - - - - 30,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING BALANCE 30,000 30,000 - - - - - Revenues & T/I 30,000 - 30,000 - - - - - 30,000 Expenditures & T/O - - - 30,000 - - - - 30,000 ENDING BALANCE 30,000 30,000 30,000 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 396 SIDEWALKS, CURBS & STORM DRAINS Project Name Wildcat Creek Outfall Repair Project Number 9142-018 Department Public Works Project Manager John Cherbone Description This project will replace a 36-inch rusted corrugated metal storm drain outfall pipe. Location This project is located at Gardiner Park. Project Background The City of Saratoga owns the outfall pipe and storm drain structure. A site assessment by Santa Clara Valley Water District (SCVWD) staff revealed the outfall pipe located at Gardiner Park was severely corroded, and recommended replacing the outflow pipe to prevent failure and erosion of creek banks due to flooding. After the assessment, SCVWD recommended using their Stream Maintenance Program (SMP) permit procedure to fix the outfall, and committed to providing the planning, design, and construction services similar to the Padero Court project. The new outlet pipe will extend the useful life of the storm drain structure. Although the outfall pipe and storm drain system are the property of the City of Saratoga, SCVWD offered to pay for half of the cost of repairs, as this repair will prevent a failure that would cause stream bank erosion, resulting in an even more costly repair project. The Water District will also manage the project. Although the project is complete, it will remain open until payment has been made to SCVWD. A $40,000 transfer from the CIP Reserve funds this project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $723. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 397 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase To Be Determined SCVWD will design. Estimated Construction Start To Be Determined Construction Begins Estimated Completion Date June 2016 Project is complete. WILDCAT CREEK OUTFALL REPAIRS 9142-018 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund 40,000 - 40,000 - - - - - 40,000 TOTAL REVENUES 40,000 - 40,000 - - - - - 40,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Construction Expenses - - - 40,000 - - - - 40,000 TOTAL EXPENDITURES - - - 40,000 - - - - 40,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING BALANCE 40,000 40,000 - - - - - Revenues & T/I 40,000 - 40,000 - - - - - 40,000 Expenditures & T/O - - - 40,000 - - - - 40,000 ENDING BALANCE 40,000 40,000 40,000 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 398 SIDEWALKS, CURBS & STORM DRAINS Project Name Saratoga Village Crosswalk & Sidewalk Rehabilitation Project Number 9142-019 Department Public Works Project Manager Macedonio Nunez Description This project will improve crosswalks and sidewalks in Saratoga Village. Location This project is located in Saratoga Village, between 5th and 6th Streets on Big Basin way. Project Background The Village, Saratoga’s historical downtown, offers a number of shops, restaurants, salons, and office space. The City has been making a number of improvements to the Village to make it more walkable destination. These improvements included installation of pedestrian bulb- outs and enhanced crosswalks to make pedestrians more visible, as well as installation of benches, bike racks, and aesthetic improvements and a renovation of Blaney Plaza that make the Village a more desirable place to gather. This project would continue improvements on Big Basin way at 5th Street and 6th Street. Similar to the first phase of the Village Sidewalk & Pedestrian Enhancements, this project would install bulb outs, enhanced crosswalks, decorative landscaping, and benches near 5th Street and 6th Street. An OBAG grant of $338,000 and City matching funds from the CIP Reserve of $44,000 fund this project. Operating Budget Impacts Incorporated into the operating budget are engineering and administrative staff costs of $10,922. Upon completion, the City will be responsible for maintaining additional landscaping, bulb-outs and other features. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 399 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase August 2017 Minor revisions to Master Plan, if required Contract Awarded March 2019 Estimated Construction Start May 2019 Estimated Construction End Dec 2019 Project Closeout Feb 2020 SARATOGA VILLAGE CROSSWALK & SIDEWALK REHABILITATION 9142-019 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund - - - 44,000 - - - - 44,000 TOTAL STREET FUND - - - 44,000 - - - - 44,000 GRANT FUND Federal - CMAQ Grant - - 338,000 - - - - 338,000 TOTAL GRANT FUND - - - 338,000 - - - - 338,000 TOTAL REVENUES - - - 382,000 - - - - 382,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Construction Expenses - - - 44,000 - - - - 44,000 TOTAL STREET FUND - - - 44,000 - - - - 44,000 GRANT FUND Construction Expenses - - - 338,000 - - - - 338,000 TOTAL GRANT FUND - - - 338,000 - - - - 338,000 TOTAL EXPENDITURES - - - 382,000 - - - - 382,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance - - - 44,000 44,000 44,000 44,000 - Revenues & T/I - - - 44,000 - - - - 44,000 Expenditures & T/O - - - - - - 44,000 Improvement Projects - - - 44,000 44,000 44,000 44,000 44,000 - CIP GRANT FUND Beginning Balance - - - - - - - Revenues & T/I - - - 338,000 - - - - 338,000 Expenditures & T/O - - - 338,000 - - - - 338,000 Ending Balance - - - - - - - - ENDING BALANCE - - - 44,000 44,000 44,000 44,000 44,000 - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 400 SIDEWALKS, CURBS & STORM DRAINS Project Name Quito Road Sidewalk Improvements - Design Project Number 9142-020 Department Public Works Project Manager John Cherbone Description This project will fund the design phase of sidewalk improvements on Quito Road. Location This project is located on Quito Road between Highway 85 and Allendale Avenue. Project Background The Traffic Safety Commission (TSC) supports this project. Improvements would include sidewalk gap closures and reconstruction of existing facilities to improve pedestrian safety and access in the area. The scope of this project will be determined during the Design phase beginning in July 2018. Operating Budget Impacts There is no impact to the Fiscal Year 2017/18 Operating Budget, as the design phase of the project will begin in July 2018. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 401 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase July 2018 Begin design phase Contract Award tbd Estimated Start Date tbd End Design Phase tbd QUITO ROAD SIDEWALK IMPROVEMENTS 9142-020 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund - - - 50,000 - - - - 50,000 TOTAL REVENUES - - - 50,000 - - - - 50,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Construction Expenses - - - 50,000 - - - - 50,000 TOTAL EXPENDITURES - - - 50,000 - - - - 50,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance - - - 50,000 50,000 50,000 50,000 - Revenues & T/I - - - 50,000 - - - - 50,000 Expenditures & T/O - - - - - - 50,000 Improvement Projects - - - 50,000 50,000 50,000 50,000 50,000 - ENDING BALANCE - - - 50,000 50,000 50,000 50,000 50,000 - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 402 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 403 BRIDGE & RETAINING WALL PROJECTS CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 404 BRIDGE & RETAINING WALL PROJECTS Project Name Fourth Street Bridge Widening Project Number 9152-001 Department Public Works Project Manager John Cherbone Description This project will widen the bridge at 4th Street in Saratoga. Location This project is located on 4th Street near Wildwood Park in the Saratoga Village. Project Background 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. Additionally, this project will 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. Nine of the bridges pass over Saratoga Creek. A $487,000 Federal Highway Bridge Replacement and Rehabilitation (HBRR) program grant and $100,000 in matching funds from the CIP Reserve fund this project. Operating Budget Impacts There is no impact to the Fiscal Year 2017/18 Operating Budget; Right-of-Way acquisition will begin in October 2019. Upon completion, pedestrian safety will increase reducing the City’s liability risk. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 405 BRIDGE & RETAINING WALL PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase May 2013 Prepare plans and specifications Right of Way Acquisition October 2019 Complete right of way negotiations and acquisition Begin Bid Process January 2020 Council approves plans and authorizes bidding the project Contract Award March 2020 Council awards contract Estimated Construction Start June 2020 Construction project begins Estimated Completion Date August 2022 Project is completed FOURTH STREET BRIDGE WIDENING 9152-001 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund 100,000 - 100,000 - - - - - 100,000 TOTAL STREET FUND 100,000 - 100,000 - - - - - 100,000 GRANT FUND Federal - HBRR 1,078 - 1,078 485,922 - - - - 487,000 TOTAL GRANT FUND 1,078 - 1,078 485,922 - - - - 487,000 TOTAL REVENUES 101,078 - 101,078 485,922 - - - - 587,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Construction Expenses - - - 100,000 - - - - 100,000 TOTAL STREET FUND - - - 100,000 - - - - 100,000 GRANT FUND Consultant/Contract Svs - - - - - - - - - Construction Expenses 1,078 - 1,078 485,922 - - - - 487,000 TOTAL GRANT FUND 1,078 - 1,078 485,922 - - - - 487,000 TOTAL EXPENDITURES 1,078 - 1,078 585,922 - - - - 587,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance 100,000 100,000 - - - - - Revenues & T/I 100,000 - 100,000 - - - - - 100,000 Expenditures & T/O - - - 100,000 - - - - 100,000 ENDING FUND BALANCE 100,000 100,000 100,000 - - - - - - GRANT FUND Beginning Balance - - - - - - - Revenues & T/I 1,078 - 1,078 485,922 - - - - 487,000 Expenditures & T/O 1,078 - 1,078 485,922 - - - - 487,000 ENDING FUND BALANCE - - - - - - - - - ENDING BALANCE 100,000 100,000 100,000 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 406 BRIDGE & RETAINING WALL PROJECTS Project Name Quito Road Bridges – Project Engineering Project Number 9152-002 Department Public Works Project Manager Macedonio Nunez Description This project funds removal and replacement of two bridges on Quito Road. Location This project is located on two sections of Quito Road along the border of Saratoga and Los Gatos. Project Background The California Department of Transportation (Caltrans) conducted a structural assessment of the two bridges on Quito Road and rated them in need of 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. There are a total of 20 bridges in Saratoga. Four of these bridges pass over San Tomas Creek. The total cost of this project is approximately $5.01 million over three phases. Funding to remove and replace the existing bridges comes primarily from a $4.12 million Federal Highway Bridge Replacement and Rehabilitation (HBRR) Program Grant, and allocated grant match contributions of approximately $300,000 apiece from the Water District, Los Gatos, and Saratoga through a co-operative agreement. Design work is complete. The City is now in the process of acquiring right-of-way from residential properties before construction can commence. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $6,931. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 407 BRIDGE & RETAINING WALL PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase January 1996 Prepare plans and specifications Begin Bid Process December 2012 Council approves plans and authorizes bidding the project Contract Award March 2018 Council awards contract Estimated Construction Start May 2018 Construction project begins Estimated Completion Date June 2019 Project is completed QUITO ROAD BRIDGES – PROJECT ENGINEERING 9152-002 BRIDGE & RETAINING WALL PROJECTS Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Project Reimbursements 188,318 - 188,318 77,510 - - - - 265,828 Transfers In - Other CIP 15,023 - 15,023 - - - - - 15,023 Transfers In - General Fund 155,659 - 155,659 - - - - - 155,659 TOTAL 358,999 - 358,999 77,510 - - - - 436,510 GRANT FUND Federal - HBRR 671,600 - 671,600 - - - - - 671,600 TOTAL 671,600 - 671,600 - - - - - 671,600 GAS TAX FUND Gas Tax Revenues 129,000 - 129,000 - - - - - 129,000 TOTAL 129,000 - 129,000 - - - - - 129,000 TOTAL REVENUES 1,159,599 - 1,159,599 77,510 - - - - 1,237,109 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Site Acquisition & Prep 19,356 - 19,356 - - - - - 19,356 Materials & Supplies 165 - 165 - - - - - 165 Fees & Expenses 485 - 485 - - - - - 485 Consultant/Contract Svs 45,237 - 45,237 - - - - - 45,237 Construction Expenses 89,333 - 89,333 235,340 - - - - 324,673 Reimbursable Expenses 714 - 714 - - - - - 714 Transfers Out 45,880 - 45,880 - - - - - 45,880 TOTAL 201,169 - 201,169 235,340 - - - - 436,510 GRANT FUND Site Acquisition & Prep 104,513 - 104,513 - - - - - 104,513 Materials & Supplies 660 - 660 - - - - - 660 Fees & Expenses 207 - 207 - - - - - 207 Consultant/Contract Svs 182,798 - 182,798 - - - - - 182,798 Construction Expenses 366,685 - 366,685 - - - - - 366,685 Reimbursable Expenses 16,736 - 16,736 - - - - - 16,736 TOTAL 671,600 - 671,599 - - - - - 671,599 GAS TAX FUND Site Acquisition & Prep 11,375 - 11,375 - - - - - 11,375 Materials & Supplies 87 - 87 - - - - - 87 Fees & Expenses 413 - 413 - - - - - 413 Consultant/Contract Svs 110,039 - 110,039 - - - - - 110,039 Construction Expenses - - - 7,085 - - - - 7,085 TOTAL 121,915 - 121,915 7,085 - - - - 129,000 TOTAL EXPENDITURES 994,685 - 994,684 242,425 - - - - 1,237,109 Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 408 QUITO ROAD BRIDGES – PROJECT ENGINEERING 9152-002 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance 157,830 358,999 436,510 436,510 436,510 436,510 - Revenues & T/I 358,999 - 358,999 77,510 - - - - 436,510 Expenditures & T/O 201,169 - - - - - 436,510 Improvement Projects 157,830 157,830 358,999 436,510 436,510 436,510 436,510 436,510 - GRANT FUND Beginning Balance - - - - - - - Revenues & T/I 671,600 - 671,600 - - - - - 671,600 Expenditures & T/O 671,600 - 671,600 - - - - - 671,599 ENDING FUND BALANCE - - - - - - - - - GAS TAX FUND Beginning Balance 7,085 7,085 - - - - - Revenues & T/I 129,000 - 129,000 - - - - - 129,000 Expenditures & T/O 121,915 - 121,915 7,085 - - - - 129,000 ENDING FUND BALANCE 7,085 7,085 7,085 - - - - - - ENDING BALANCE 164,915 164,915 358,999 436,510 436,510 436,510 436,510 436,510 - Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 409 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 410 BRIDGE & RETAINING WALL PROJECTS Project Name Quito Road Bridges – ROW Acquisition Project Number 9152-004 Department Public Works Project Manager John Cherbone Description This project funds the fair market value acquisition of a minimal amount of right of way easements. Location This project is located on two sections of Quito Road along the border of Saratoga with Los Gatos. Project Background The California Department of Transportation (CalTrans) conducted a structural assessment of the two bridges on Quito Road and rated them in need of replacement. Additionally, the bridges are not wide enough to meet current CalTrans standards for roadway use. This project will rebuild the bridges, bringing the bridge widths into compliance with State roadway standards, and ultimately increasing safety for people using Quito Road. Both bridges pass over San Tomas Aquinas Creek, which flows from the San Francisco Bay in Santa Clara, through San Jose, Campbell, Los Gatos, Monte Sereno, and heads in Saratoga. The two bridges cross the San Tomas Aquinas creek along the city limits of Saratoga and Los Gatos, therefore the cities of Saratoga and Los Gatos, along with the Santa Clara Valley Water District all share in the boundaries and responsibilities of bridge maintenance. A cooperative agreement between the three agencies has been executed with Saratoga named as the lead agency. The Project Engineering phase of this project has been ongoing and is nearing completion. This phase will fund the acquisition of 4,532 square feet of easements from three privately owned parcels adjoining the existing right of way, in order to meet applicable bridge standards. A $354,120 Federal Highway Bridge Replacement and Rehabilitation (HBBR) Program Grant and $45,880 from the three cooperating agencies fund this phase of the project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering and administrative staff costs of $10,534. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 411 BRIDGE & RETAINING WALL PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Contract Award April 2016 Award contract Right of Way Acquisition April 2016 Begin right-of-way negotiations Estimated Completion Date September 2017 Project complete QUITO ROAD BRIDGES – ROW ACQUISITION 9152-004 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - Other CIP 45,880 - 45,880 - - - - - 45,880 TOTAL 45,880 - 45,880 - - - - - 45,880 GRANT FUND Federal - HBRR 3,912 24,034 27,947 326,173 - - - - 354,120 TOTAL 3,912 24,034 27,947 326,173 - - - - 354,120 TOTAL REVENUES 49,792 24,034 73,827 326,173 - - - - 400,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Site Acquisition & Prep 274 1,554 1,828 - - - - - 1,828 Fees & Expenses - 89 89 - - - - - 89 Consultant/Contract Svs - 1,471 1,471 - - - - - 1,471 Construction Expenses - - - 42,259 - - - - 42,259 Reimbursable Expenses 233 - 233 - - - - - 233 TOTAL 507 3,114 3,621 42,259 - - - - 45,880 GRANT FUND Site Acquisition & Prep 2,116 11,990 14,107 - - - - - 14,107 Fees & Expenses - 687 687 - - - - - 687 Consultant/Contract Svs - 11,357 11,357 - - - - - 11,357 Construction Expenses - - - 326,173 - - - - 326,173 Reimbursable Expenses 1,796 - 1,796 - - - - - 1,796 TOTAL 3,912 24,034 27,947 326,173 - - - - 354,120 TOTAL EXPENDITURES 4,420 27,148 31,568 368,432 - - - - 400,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance 45,373 45,880 45,880 45,880 45,880 45,880 - Revenues & T/I 45,880 - 45,880 - - - - - 45,880 Expenditures & T/O 507 3,114 - - - - 45,880 Improvement Projects 45,373 42,259 45,880 45,880 45,880 45,880 45,880 45,880 - GRANT FUND Beginning Balance - - - - - - - Revenues & T/I 3,912 24,034 27,947 326,173 - - - - 354,120 Expenditures & T/O 3,912 24,034 27,947 326,173 - - - - 354,120 ENDING FUND BALANCE - - - - - - - - ENDING BALANCE 45,373 42,259 45,880 45,880 45,880 45,880 45,880 45,880 - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 412 BRIDGE & RETAINING WALL PROJECTS Project Name Annual Retaining Wall Maintenance & Repairs Project Number 9153-003 Department Public Works Project Manager Iveta Harvancik Description This project will fund the maintenance and repairs of city-owned retaining walls. Location This project is located Citywide. Project Background In FY 2014/15, the City Geologist inspected a City-owned retaining wall along a portion of Damon Lane after staff noticed the wall had started to lean downhill towards the roadway. The wall is approximately 40 to 50 years old and located within the public right -of-way on Damon Lane. Following inspection, the City Geologist recommended replacing the wall as soon as possible due to the high likelihood of failure in the event of a landslide. If the wall fails, damage to the roadway would be severe restricting traffic flow to one lane. Due to the winter storms in FY 2016/17, Council determined that an annual appropriation was necessary in order to address the maintenance and repairs of city-owned retaining walls throughout the City and expanded the scope of this project to include retaining walls citywide. An annual $200,000 transfer from the General Fund funds this project. Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering, administrative and maintenance staff costs of $13,608. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 413 BRIDGE & RETAINING WALL PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Estimated Construction Start Ongoing Estimated Completion Date Ongoing ANNUAL RETAINING WALL MAINTENANCE AND REPAIRS 9153-003 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund - 190,000 190,000 200,000 - - - - 390,000 TOTAL - 190,000 190,000 200,000 - - - - 390,000 TOTAL REVENUES - 190,000 190,000 200,000 - - - - 390,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Consultant/Contract Svs - 31,045 31,045 - - - - - 31,045 Construction Expenses - - - 358,955 - - - - 358,955 TOTAL - 31,045 31,045 358,955 - - - - 390,000 TOTAL EXPENDITURES - 31,045 31,045 358,955 - - - - 390,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance - - - - - - - Revenues & T/I - 190,000 190,000 200,000 - - - - 390,000 Expenditures & T/O - 31,045 31,045 358,955 - - - - 390,000 ENDING FUND BALANCE - 158,955 - - - - - ENDING BALANCE - 158,955 - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 414 BRIDGE & RETAINING WALL PROJECTS Project Name Bainter Avenue Retaining Wall Project Number 9153-004 Department Public Works Project Manager Iveta Harvancik Description This project will fund the repair and reinforcement of a retaining wall. Location This project is located on Bainter Avenue. Project Background A landslide compromised a portion of Bainter Avenue during the winter storms of 2015. The City Geologist recommended repair and reinforcement of the existing retaining wall as soon as possible due to the high likelihood of failure in the event of further landslide. A $210,000 transfer from the General Fund Hillside Reserve funds this project . Operating Budget Impacts Incorporated into the Fiscal Year 2017/18 Operating Budget are engineering, administrative and maintenance staff costs of $7,200. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 415 BRIDGE & RETAINING WALL PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase September 2016 Prepare plans and specifications Begin Bid Process May 2017 Select contractor Contract Award June 2017 Award contract Estimated Construction Start July 2017 Begin construction Estimated Completion Date December 2017 Project complete BAINTER AVENUE RETAINING WALL 9153-004 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Transfers In - General Fund - 210,000 210,000 - - - - - 210,000 TOTAL - 210,000 210,000 - - - - - 210,000 TOTAL REVENUES - 210,000 210,000 - - - - - 210,000 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Fees & Expenses - 269 269 - - - - - 269 Consultant/Contract Svs - 19,814 19,814 - - - - - 19,814 Construction Expenses - - - 189,917 - - - - 189,917 TOTAL - 20,083 20,083 189,917 - - - - 210,000 TOTAL EXPENDITURES - 20,083 20,083 189,917 - - - - 210,000 Prior FY Total Year 2016/17 Project Activity Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND Beginning Balance - - - - - - - Revenues & T/I - 210,000 210,000 - - - - - 210,000 Expenditures & T/O - 20,083 20,083 189,917 - - - - 210,000 ENDING FUND BALANCE - 189,917 - - - - - ENDING BALANCE - 189,917 - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 416 CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 417 UTILITY UNDERGROUNDING PROJECTS CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 418 UTILITY UNDERGROUNDING PROJECTS Project Name Rule 20A Undergrounding Project Project Number 9171-001 Department Public Works Project Manager Macedonio Nunez Description This project will fund undergrounding of utilities in Saratoga. Location One or more locations for this project are to be determined. Project Background Each year, Pacific Gas & Electric (PG&E) allocates undergrounding work credits to Saratoga and other municipalities to provide funding for undergrounding utilities. The credits for these allocations are provided through PG&E’s Rule 20A program, which is an electric tariff filed with the California Public Utilities Commission. As a result of the Rule 20A program, PG&E is able to annually fund relocation of approximately 30 miles of overhead utilities underground. Rule 20A funding comes from electricity rate payers. Before Rule20A work credits can be used, proposed undergrounding projects must be approved by PG&E. Projects must reduce an unusually heavy concentration of overhead power lines, be conducted on arterial streets with high pedestrian or vehicular traffic, or be done on roads that are in a civic, recreational, or scenic area. Due to the very high cost of undergrounding, Saratoga has been collecting Rule 20A credits over the past few years to allow for a more substantial undergrounding project in the City. Operating Budget Impacts Moving overhead utilities underground will make the City more attractive and will reduce safety risks associated with down power lines. As fallen power lines can be especially problematic during winter storms, undergrounding the lines would reduce emergency staff costs and liability. Project management costs for this project will be included in the operating budget when it becomes active. There is no impact to the Fiscal Year 2017/18 Operating Budget. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 419 UTILITY UNDERGROUNDING PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase To be determined Prepare plans and specifications in conjunction with PG&E Estimated Construction Start To be determined PG&E begins construction Estimated Completion Date To be determined PG&E completes construction RULE 20A ELECTRIC UNDERGROUND CONVERSION PROJECTS 9171-001 As of March 31, 2017, $3,765,917 of work credit funding is available from PG&E for utility undergrounding work funded and completed by PG&E. Additional funds accumulate each year. The City does not receive cash funds for this work; therefore the work credit amount is not included in the CIP financial schedules. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 420 UTILITY UNDERGROUNDING PROJECTS Project Name Quito Road Undergrounding Project Project Number 9171-002 Department Public Works Project Manager Macedonio Nunez Description This project will fund undergrounding of utilities on Quito Road in Saratoga. Location Undergrounding work would take place on Quito Road near Twin Creeks Road. Project Background Several years ago, because of fees collected for a subdivision, the City received funds to underground utilities on Quito Road near Twin Creeks Road. In recent years, municipalities and Pacific Gas & Electric (PG&E) have started moving overhead utility lines underground. Due to the high costs of undergrounding, transferring the overhead utilities at this location will have to be incorporated into a larger undergrounding project. Moving overhead utilities underground will make the City more attractive and will reduce safety risks associated with down power lines. Fallen power lines can be especially problematic during winter storms. Operating Budget Impacts There is no impact to the Fiscal Year 2017/18 Operating Budget. CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 421 UTILITY UNDERGROUNDING PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase To be determined Prepare plans and specifications Begin Bid Process To be determined Council approves plans and authorizes bidding the project Contract Award To be determined Council awards contract Estimated Construction Start To be determined Construction project begins Estimated Completion Date To be determined Project is completed QUITO ROAD UNDERGROUNDING PROJECT 9171-002 Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP STREET FUND Community Benefit Assess 98,744 - 98,744 - - - - - 98,744 TOTAL REVENUES 98,744 - 98,744 - - - - - 98,744 Prior FY Total Year 2016/17 Expended Project EXPENDITURES Expended Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Expended CIP STREET FUND Construction Expenses - - - 98,744 - - - - 98,744 TOTAL EXPENDITURES - - - 98,744 - - - - 98,744 FY Total 2016/17 Estimated Project Actuals Total 2017/18 2018/19 2019/20 2020/21 2021/22 Activity CIP STREET FUND BEGINNING FUND BAL 98,744 98,744 - - - - - Revenues & T/I 98,744 - 98,744 - - - - - 98,744 Expenditures & T/O - - - 98,744 - - - - 98,744 ENDING BALANCE 98,744 98,744 98,744 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – STREET IMPROVEMENTS 422 CITY OF SARATOGA CAPITAL PROGRAM – PARKS & TRAILS PROJECTS 423 PARKS & TRAILS PROJECTS CITY OF SARATOGA CAPITAL PROGRAM – PARKS & TRAILS PROJECTS 424 CITY OF SARATOGA CAPITAL PROGRAM – PARKS & TRAILS PROJECTS 425 PARKS & TRAILS PROGRAM PROGRAM DIRECTORY PARKS & TRAILS PROGRAM PAGE Program Summary 427 Project List Summary 428 Program Funding Summary 429 Operating Budget Impact 430 CITYWIDE PROJECTS 9211-001 Parks, Trails, Grounds & Medians Maintenance & Repairs 432 9211-002 City-wide Tree Replanting Program 434 9211-008 Sustainable Landscaping Project 436 9211-009 El Quito Park “Magical Bridge” Playground 438 9212-001 Tree Dedication Program 440 9212-002 Saratoga Monte Sereno Community Foundation Tree Dedication Program 442 9213-001 Beverage Container Grant Project 444 PARK PROJECTS 9222-001 Hakone Gardens Miscellaneous Improvements 448 9222-004 Hakone Gardens Infrastructure Improvements 450 9222-007 Hakone Gardens Koi Pond Improvements 452 9226-003 Quarry Park ADA Access to Upper Terrace Parking Lot and Pond 454 TRAILS & OPEN SPACE PROJECTS 9274-001 Joe’s Trail at Saratoga De Anza 458 9274-002 Guava Ct/Fredericksburg Entrance 460 9277-003 Saratoga Village to Quarry Park Walkway - Design 462 9278-001 Saratoga-to-the-Sea Trail – Design & Construction 464 CITY OF SARATOGA CAPITAL PROGRAM – PARKS & TRAILS PROJECTS 426 CITY OF SARATOGA CAPITAL PROGRAM – PARKS & TRAILS PROJECTS 427 PARK & TRAIL IMPROVEMENTS PROGRAM SUMMARY 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 – include general and citywide park and trail repair projects to provide for minor projects 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 fun ded 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 – include projects which improve the larger parks which draw the entire community. These include 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 – are comprised of projects for the City’s smaller parks located within neighborhoods. Th ese include Azule Park, Beauchamps Park, Bellgrove Park, Brookglen Park, Foothill Park, Gardiner Park, Kevin Moran Park, and Ravenswood Park. Sport Parks & Facilities Projects - include 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 –include Joe’s Trail at Saratoga De Anza, Saratoga Village to Quarry Park Walkway and Saratoga-to-the-Sea Trail. The schedule on the following page summarizes the City’s Parks & Trails Program capital projects and their currently funded status. CITY OF SARATOGA CAPITAL PROGRAM – PARKS & TRAILS PROJECTS 428 PROJECT LIST SUMMARY One new Parks & Trails project was added in FY 2017/18.  Saratoga Village to Quarry Park Walkway Two projects were completed or closed in FY 2016/17, leaving twelve active projects for FY 2017/18:  AB8939 Beverage Container Grant  Hakone Gardens Miscellaneous Improvements Prior FY Total Year 2016/17 Funded Project PARKS PROJECT EXPENDITURE SUMMARY Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding City Wide Projects 9211-001 Park, Trail, Grounds, and Medians M&R 357,983 - 357,983 100,618 - - - - 458,602 9211-002 CityWide Tree Replanting 270,203 36,256 306,459 64,370 - - - - 370,829 9211-008 Sustainable Landscaping Project 57,858 44,959 102,816 39,836 - - - - 142,652 9211-009 "Magical Bridge" Playground - - - 160,000 - - - - 160,000 9212-001 Tree Dedication Program 7,500 - 7,500 23,625 - - - - 31,125 9213-001 AB 8939 Beverage Container Grant 30,370 8,397 38,767 closed - - - - 38,767 Park Projects 9222-001 Hakone Gardens Misc Improvements 303,452 96,548 400,000 closed - - - - 400,000 9222-004 Hakone Gardens Infrastructure Imps 2,565 7,922 10,487 114,513 - - - - 125,000 9222-007 Hakone Gardens Koi Pond Imps - - - 349,548 - - - - 349,548 9226-003 Quarry Park ADA Access to UT Parking - 5,304 5,304 244,696 - - - - 250,000 Trail Projects 9274-001 Joe's Trail at Saratoga De Anza 2,011,163 - 2,011,163 202,821 - - - - 2,213,985 9274-002 Guava Ct/Fredericksburg Entrance - 24,524 24,524 321,356 - - - - 345,880 9277-004 Saratoga Village to Quarry Park Walkway - - - 50,000 - - - - 50,000 9278-001 Saratoga-to-the-Sea Trail - - - 615,000 - - - - 615,000 - Total Projects 5,074,728 223,910 5,298,638 2,286,383 - - - - 7,585,021 Interfund Transfers - - - - Total Project Expenditures 5,074,728 223,910 5,298,638 2,286,383 - - - - 7,585,021 Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL PROGRAM – PARKS & TRAILS PROJECTS 429 PARK & TRAILS PROGRAM FUNDING SUMMARY Prior FY Total Year 2016/17 Funded Project REVENUES Funded Actuals To Date 2017/18 2018/19 2019/20 2020/21 2021/22 Funding CIP PARK FUND AB 8939 Beverage Container 22,059 - 22,059 - - - - - 22,059 CIP Project Reimbursement 105,018 12,634 117,652 - - - - - 117,652 Park In Lieu Fees 432,589 - 432,589 - - - - - 432,589 Donations/Contributions 150,000