Loading...
FY 2016-17 Adopted Operating & Capital Budget The community celebrates Saratoga’s 60th anniversary as a city. 2 Cover photos courtesey of Maria Guldner 3 Saratoga City Council Manny Cappello Emily Lo Mayor Vice Mayor Mary-Lynne Bernald Howard Miller Rishi Kumar Council Member Council Member Council Member Operating & Capital Summary Budget for Fiscal Year July 1, 2016 to June 30, 2017 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 4 CITY OF SARATOGA OPERATING & CAPITAL SUMMARY BUDGET 5 TABLE OF CONTENTS INTRODUCTION City Manager’s Budget Message ....................................................................................................................................... 11 FY 2015/16 Accomplishments ........................................................................................................................................... 15 FY 2016/17 Initiatives ........................................................................................................................................................ 16 Notable Operational Changes ............................................................................................................................................. 17 Financial Overview............................................................................................................................................................. 18 Capital Budget Highlights .................................................................................................................................................. 26 Government Finance Officers Association Budget Award ................................................................................................. 28 History & Culture of Saratoga ............................................................................................................................................ 29 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 ................................................................................................................................................. 75 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 Operating Transfers Schedule of Interfund Transfers ....................................................................................................................................... 103 CITY OF SARATOGA OPERATING & CAPITAL SUMMARY BUDGET 6 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 ............................................................................................................................ 119 Staffing by Department – Five Year History .................................................................................................................... 121 Staffing by Fund – Five Year History .............................................................................................................................. 122 Major Revenue Information General Fund Revenues .................................................................................................................................................... 124 Non-General Fund Revenues ............................................................................................................................................ 130 Capital Revenues .............................................................................................................................................................. 131 Long Range Financial Planning General Fund Five Year Forecast ..................................................................................................................................... 134 DEPARTMENTAL BUDGETS OVERVIEW Department / Program List ............................................................................................................................................. 141 Organization Chart ........................................................................................................................................................... 144 COUNCIL & COMMISSIONS Council & Commissions Overview .................................................................................................................................. 145 City Council ...................................................................................................................................................................... 149 City Commissions............................................................................................................................................................. 153 CITY MANAGER’S DEPARTMENT City Manager’s Department Overview ............................................................................................................................. 157 City Manager’s Office ...................................................................................................................................................... 163 City Clerk ......................................................................................................................................................................... 167 Public Information Office ................................................................................................................................................. 171 ADMINISTRATIVE SERVICES DEPARTMENT Administrative Services Department Overview ............................................................................................................... 175 Finance ............................................................................................................................................................................. 181 Human Resources ............................................................................................................................................................. 185 Administrative Services .................................................................................................................................................... 189 Office Support Services ................................................................................................................................................... 193 Information Technology Services ..................................................................................................................................... 195 IT Equipment Replacement ............................................................................................................................................. 199 CITY OF SARATOGA OPERATING & CAPITAL SUMMARY BUDGET 7 COMMUNITY DEVELOPMENT DEPARTMENT Community Development Department Overview ............................................................................................................ 203 Development Services ...................................................................................................................................................... 207 Advanced Planning ........................................................................................................................................................... 211 Code Compliance ............................................................................................................................................................ 215 Building & Inspection Services ........................................................................................................................................ 219 PUBLIC WORKS DEPARTMENT Public Works Department Overview ................................................................................................................................ 223 General Engineering ......................................................................................................................................................... 229 Development Engineering ................................................................................................................................................ 233 Environmental Services .................................................................................................................................................... 237 Streets & Storm Drains ..................................................................................................................................................... 241 Parks & Landscape Maintenance ...................................................................................................................................... 245 Vehicle & Equipment Maintenance .................................................................................................................................. 249 Vehicle & Equipment Replacement ................................................................................................................................. 253 Landscape & Lighting Districts ........................................................................................................................................ 257 RECREATION & FACILITIES DEPARTMENT Recreation & Facilities Department Overview ................................................................................................................. 261 Recreation Services .......................................................................................................................................................... 267 Teen Services .................................................................................................................................................................... 271 Facility Rentals ................................................................................................................................................................. 275 Facility Maintenance ....................................................................................................................................................... 279 Facility Furniture, Fixtures & Equipment (FFE) Replacement ....................................................................................... 283 PUBLIC SAFETY DEPARTMENT Public Safety Department Overview ................................................................................................................................ 287 Public Safety Services ...................................................................................................................................................... 291 Emergency Preparedness .................................................................................................................................................. 297 NON-DEPARTMENTAL Non-Departmental Overview ............................................................................................................................................ 301 General Administration .................................................................................................................................................... 305 Legal Services .................................................................................................................................................................. 307 Community Grants ........................................................................................................................................................... 311 Community Events .......................................................................................................................................................... 313 Risk Management/Liability Insurance .............................................................................................................................. 317 Workers Compensation Insurance .................................................................................................................................... 321 General Obligation Bond Debt Service ............................................................................................................................ 325 CITY OF SARATOGA OPERATING & CAPITAL SUMMARY BUDGET 8 CAPITAL IMPROVEMENT PLAN Capital Improvement Plan Overview ............................................................................................................................... 329 Streets Program ................................................................................................................................................................ 337 Parks & Trails Program .................................................................................................................................................... 425 Facility Improvements Program ....................................................................................................................................... 481 Administrative & Technology Improvements Program.................................................................................................... 537 REFERENCE SECTION City Statistics .................................................................................................................................................................... 581 List of Acronyms .............................................................................................................................................................. 590 Glossary ............................................................................................................................................................................ 592 9 I NTRODUCTION S ECTION 10 11 C ITY H ALL 13777 F RUITVALE A VENUE S ARATOGA , C ALIFORNIA 95070 (408) 868-1200 May 18, 2016 Honorable Mayor and Council Members, On behalf of our dedicated City staff, it is my privilege to present to you and the Saratoga community the Proposed Operating and Capital Budgets for Fiscal Year (FY) 2016/17. The Proposed Budget reflects the continued commitment of strong fiscal stewardship while, for the first time in many years, being able to pursue significant new Council priorities to further enhance quality of life for the Saratoga community. ECONOMIC CLIMATE The City’s financial position at the close of FY 2015/16 is projected to be better than expected. General Fund revenues are anticipated to exceed the FY 2015/16 Adjusted Budget by $1.1 million or 5.8%. A portion of the increased revenue is comprised of one-time funding. Excess Educational Revenue Augmentation Fund funding brought in an additional $123,000 in property tax revenue, and the “True-Up” reconciliation performed at the end of the State’s Triple Flip tax swap will result in a year-end distribution anticipated to be around $130,000 in additional sales tax revenue. Property tax is the City’s most significant form of revenue and property values in Saratoga grew by more than $861 million from the prior year as Saratoga continues to benefit from the high demand for housing within top performing school districts. Though property values have seen sharp increases, Saratoga receives only a small portion of property tax revenues generated in the City. Additionally, for the past 30 years, Saratoga and several other cities in the West Valley have been subject to Tax Equity Allocation (TEA) reduction legislation that locked Saratoga’s property tax allocation below the minimum allocation for cities—passed 30 years ago. With the State’s improved economic situation, the City’s long-term effort to fully correct the property tax inequity—was successful. Senate Bill 107, passed in September 2015, provides a five-year phase-in period to bring Saratoga up to the full 7% minimum property tax allocation. Prior to passage of this bill, Saratoga and three other West Valley cities were the only cities in California receiving less than the minimum property tax allocation. Saratoga received its first allocation of approximately $130,000 in the 2015/16 fiscal year. In addition to higher than expected revenues, operating expenditures in the General Fund are anticipated to be $506,000 or 2.7% less than the FY 2015/16 Adjusted Budget. Functions of local government are primarily service- oriented. As a result, employee salaries and benefits frequently account for a large portion of city budgets. Though Saratoga is run by a small and efficient workforce, the City is no exception and employee salaries and benefits still make up the largest portion of the General Fund budgeted expenditures. Approximately $7.6 million, or 39% of the Proposed FY 2016/17 General Fund Expenditure Budget of $19.7 million, represents salary and benefit costs. Rising medical insurance costs continue to be a significant component of salary and benefit costs. During the last round of labor negotiations, the City and employees agreed to share the cost increases of medical benefits. This important step will help stabilize the long-term costs of providing services to the community. As in previous years, the City Council remains focused on addressing long-term liabilities. In 2014, the City began the process of paying down the California Public Employee’s Retirement System’s (CalPERS) Unfunded Accrued Liability (UAL) with an initial payment of $3.3 million. By making a large initial payment towards the UAL, Saratoga was able to save $3.6 million in future interest payments. The latest actuarial report shows the City’s June 30, 2016 UAL balance at $3.3 million. The original UAL balance was $7.7 million. The City will be making the planned annual $500,000 payment towards the remaining liability in July 2016. This payment exceeds the minimum required by CalPERS by $381,815, thereby reducing the outstanding liability further. Per Council policy, the intention is to pay down the UAL liability in 15 years (by June 30, 2030). CITY OF SARATOGA INTRODUCTION SECTION 12 The City Council addressed another long-term liability through amendments made to the General Fund Balance Reserve Policies, which is being adopted as part of the FY 2016/17 budget. The year-end contribution to the Facility Replacement Reserve was raised from $300,000 to $500,000. This further demonstrates the Council’s commitment to good financial stewardship by increasing the accumulation of funding for a future down payment on replacing facilities and thereby minimizing future bond funding needs. FY 2016/17 PRIORITIES With the strong economic climate and Saratoga’s growing financial stability, the City is in a position to take steps now to invest in the City’s financial future by paying down liabilities, such as the UAL, and plan for anticipated expenditures. At the same time, the current economic climate has also afforded the City with the flexibility to consider ways to enhance the quality of life of Saratoga residents. This is best illustrated by the following priorities of the FY 2016/17 Budget:  Improve Local Roads  Restore Funding for Code Compliance Officer  Creation of a Public Information Office  Community Enrichment Improve Local Roads The quality of Saratoga’s roads continues to be a priority for the City Council. Streets are one of the most visible and fundamental services provided by the City of Saratoga, as they touch the lives of almost every Saratoga resident. Every day, residents travel City streets to get to work or school or to take care of everyday tasks. As a result, when road conditions are poor, it can have palpable impacts on residents. One of the survival strategies many cities, including Saratoga, used during the recession was to defer maintenance of infrastructure, such as the paving of local roads. As a result, Saratoga saw a decline in roadway conditions. Last fiscal year, the City increased the dedicated funding for street resurfacing/restoration to $1.3 million to stabilize the overall condition of the City’s roads and to steadily increase the overall Pavement Condition Index above 70 (Fair). For FY 2016/17, the Council increased funding for resurfacing/restoration to $1.5 million and revised the minimum funding goal for local road improvements from $1 million to $2 million annually in anticipation of additional funding becoming available through County or State revenue measures. The continued funding priority to improve local roads will help ensure the integrity of the roads for a longer period of time, thereby saving the City on costly upgrades in the future. This falls in line with the Council’s strategic goal of maintaining the City’s infrastructure in a safe, sustainable, and cost-effective manner. Code Compliance Officer Code compliance is one of the tools used by the City for promoting the health, safety, and quality of life of Saratoga residents. Through Code compliance, the City is able to enforce minimum standards in these areas on a complaint basis. Since 2011, when the Code Compliance position was vacated, the City’s Code compliance responsibilities have been distributed among staff within the Community Development Department. Distribution of the Code compliance duties allowed the City to realize significant savings during the past five years. With improvements to the economy creating a greater demand for planning and building services, it became increasingly difficult for staff to respond to Code complaints. Furthermore, Saratoga has had a longstanding practice of seeking voluntary compliance in Code violation cases. With such limited staff time available to even respond to complaints, it was not always feasible to set aside the time needed to identify mutually agreeable solutions to violations and obtain voluntary compliance. As a result, the City Council authorized an agreement for contract Code compliance services to conduct inspections, follow up on various complaints, and enforce temporary signage regulations. Oversight of general Code compliance CITY OF SARATOGA INTRODUCTION SECTION 13 temporality transferred to the City Manager’s Office where staff has been preparing and sending notices of violation and warning letters, responding to complaints, creating informational materials, reviewing City Code, and establishing internal procedures for the program. After considerable review and discussion, the City Council authorized restoring funding of a full-time Code Compliance Officer in the FY 2016/17 budget, which will provide the necessary staff to fully implement the compliance program without impacting other City programs. Public Information Office Another Council strategic goal is to increase community engagement. A major part of that is providing Saratoga residents with access to timely, useful, and important information. Improving communications helps residents feel more integrated into the community and increases the opportunity for resident feedback on important City activities, such as the update to the Village Specific Plan. With the continuing emphasis on enhancing communication and engagement with residents, a new program was created in the budget. All communication-related items are now contained within the Public Information Office budget and 90% of the Administrative Analyst I position in the City Manger’s Department is allocated to the program. The Public Information Office will oversee and maintain many of the City’s lines of communication with residents, including the City’s website, Median Banner Program, social media accounts, quarterly newsletter, email services, videos, event tabling, flyers, and press releases. These efforts will help build community pride and positive identification with the City among residents, while increasing interest and participation in City services, projects, and activities. Notable communication efforts planned in FY 2016/17 include a State of the City Address, expansion of the Video Program, and update to the City’s website. Community Enrichment With a healthy and relatively robust budget, the City has the opportunity to tackle projects that will enhance Saratoga’s resident and visitor experience. With an aging population, and the expectation that the Valley Transportation Authority will cut additional bus lines running through Saratoga, the City is taking on a citywide Transportation Needs Assessment. This study will look at transportation needs and destination patterns of Saratoga residents, including the senior population. With this information in hand, the City will be able to make educated decisions about future transportation activities and prioritize efforts to seek solutions to the transportation needs of Saratoga residents. Along with transportation, increasing inclusiveness is a critical step towards creating a more cohesive and enriched community. To that end, the City is now working alongside the Magical Bridge Foundation, a Silicon Valley nonprofit that advocates for inclusive and innovative playgrounds, to construct an all-inclusive play structure that will give Saratoga’s youth of all abilities the opportunity to exercise and socially interact. The project cost is estimated to be $4 million, paid mostly through the Magical Bridge Foundation’s donation drive, with a City match of $160,000. In addition to making the City more inclusive for its younger population, the City is also looking at ways to embrace Saratoga’s older adults. One of the City Council FY 2016/17 priorities is to identify methods by which the City can further address the needs of Saratoga’s aging population. The City, with the help of the Saratoga Area Senior Coordinating Council (SASCC), is embarking on an effort to be designated as an age-friendly city by the World Health Organization (WHO). Age-friendly cities are defined as “an inclusive and accessible urban environment that promotes active aging.” The age-friendly movement is a fast-growing, interdisciplinary approach that strives to promote aging in place to ultimately make communities great places to grow up and grow old. Aging in place can help many older people preserve their independence, functionality, and even their health. In seeking the age-friendly designation, the City will not only be recognized for its efforts to address the needs of Saratoga’s older population, the City in partnership with SASCC will also be able to identify ways in which to make Saratoga a better place for the older adults in the community. CITY OF SARATOGA INTRODUCTION SECTION 14 CONCLUSION The FY 2016/17 budget is significant in that it represents a focus on long-term financial planning with the attention to liabilities, like the UAL and facilities. The long-term perspective that Saratoga has taken to budgeting and its fiscal policies mean the budget allows for the restoration of pre-recessionary service levels, including roadway maintenance and the hiring of a Code Compliance Officer, as well as exploration of ways in which the City can refine Saratoga and make it an even better place for the people who live, work, and visit this community. While a full-scale recession is not imminent, the next downturn in employment and real estate values is inevitable. Saratoga’s approach will help the City through the next economic recession with hopefully little impact to service levels. The City is careful and thoughtful in its budget development, and this practice will continue to ensure financial stability in present and future years. Sincerely, James Lindsay City Manager CITY OF SARATOGA INTRODUCTION SECTION 15 Notable Accomplishments in FY 2015/16 Saratoga Quarry Park In October 2015, the City of Saratoga unveiled the 64-acre Saratoga Quarry Park to the public. The City acquired the property in 2011 from Santa Clara County and began developing the Quarry Park Master Plan in 2013 and completed it in June 2014. Phase 1 implementation of the Quarry Park Master Plan began in FY 2014/15 and included the construction of new trails, picnic area, and restrooms. Tax Equity Allocation Due to special legislation 30 years ago, Saratoga and three other West Valley cities did not receive their full Property Tax allocation. Senate Bill 107, passed in September 2015, eliminated this discrepancy. The property tax takeaway will be returned to the City over a five-year phase-in period beginning in 2015. Silicon Valley Clean Energy Authority As of March 2016, twelve communities including Saratoga, agreed to join Silicon Valley Clean Energy (SVCE), a new nonprofit public agency that will offer a Community Choice Energy (CCE) program for Santa Clara County. The CCE will pool the electricity demand of residents and businesses and buy cleaner power at competitive prices. 2016 State of the City Address In February 2016, the City of Saratoga held its first-ever State of the City Address. Approximately 200 community members came together to celebrate Saratoga’s recent accomplishments, learn about the current state of the city, hear about upcoming projects, and honor the residents and organizations that make Saratoga a wonderful city to live, work, and play. America in Bloom Once a year, America in Bloom visits cities across the country seeking out communities that are great places to live and work. It is a distinct honor to be recognized by America in Bloom; and last fall, Saratoga won top honors in the City’s population category (30,000 to 40,000). The City’s participation in the program was inspired by the Saratoga Village Gardeners, a group of dedicated volunteers who work diligently to keep Saratoga’s downtown flowers and landscaping in gorgeous condition. Village Specific Plan Update Outreach The City is updating its Village Specific Plan, a policy document adopted in 1988 that regulates and guides development and land-use in Saratoga’s Downtown. A website was created for the update that houses relevant project information, along with meeting agendas and minutes. Between the online survey, public meetings, and a phone and email survey conducted by Godbe Research, the City received more than 1,000 responses from residents about their thoughts and wants for the Village. CITY OF SARATOGA INTRODUCTION SECTION 16 Food and Toy Drive Saratoga’s annual Food and Toy Drive was held between October and December 2015. The City collected 3,483 pounds of food—1,000 pounds more than the previous year—which provided 2,900 meals to needy families. More than 100 toys were also collected, which was more than the previous year as well. The City believes this was accomplished in part through promotions with the City’s Median Banner Program and through the City’s growing social media. Crisis Communications Plan A Crisis Communications Plan was completed in Fall 2015. The plan includes communication procedures during a crisis, coordination and planning with internal staff and external organizations, key messages, and media contacts. The plan is a living document, meaning that it will be regularly updated to reflect changes to information or communication strategies. Constant Contact Constant Contact is an email service that the City began using in November 2015 to send its quarterly newsletter The Saratogan to more than 3,000 subscribers. The City saw great success as the open rate was higher than the industry average. Since then, the City has added hundreds of new subscribers and used the email service to inform the public of the 2016 State of the City Address and its Saratoga Village Specific Plan Update project. RecTrac and WebTrac Registration Software Upgrades The Recreation and Facilities Department, with significant support from the IT Department, successfully upgraded the RecTrac and WebTrac registration software programs in April 2016. The new version has an upgraded graphical user interface, search improvements, and has helped improve staff efficiency. The program allows for a more efficient transaction process and gives staff the ability to quickly identify trends and analyze operations. Emergency Operations Center The City successful transitioned the Emergency Operations Center (EOC) from the Saratoga Fire Department to Saratoga City Hall. The EOC is the central command facility responsible for carrying out emergency management during a disaster. 0The transition will allow the continuity of City operations during a disaster. New Initiatives for FY 2016/17 Prospect Road Median Beautification Project This project will occur along a 1.9-mile section of Prospect Road between Saratoga-Sunnyvale Road and Lawrence Expressway. Upgrades include median landscaping, ADA-compliant ramps, sidewalks, bus shelters, and bicycle detector loops. About 88% of this $4.75 million project will be paid for through grant funding. Highway 9 Improvements – Phase IV The Highway 9 Improvements Project is a multi-agency pedestrian improvement effort to enhance the safety of Highway 9, a thoroughfare that links the communities of Saratoga, Monte Sereno, and Los Gatos. Phase IV of this project will continue improvements along Highway 9 from Saratoga to Los Gatos. CITY OF SARATOGA INTRODUCTION SECTION 17 Updated City Video Program The Updated City’s Video Program will be used as audiovisual presentations to inform and educate residents on important projects and activities within Saratoga. The Council-hosted videos will cover various topics, including Capital Improvement Plan projects and Public Service Announcements. Staff will also work with the Planning Commission to create informational videos for the benefit of residents. Electric Vehicle Charging Stations In an effort to keep up with demand, and the ever- changing technology of electric vehicles, the City is applying for various grants for Charge Fast! Electric Vehicle Charging Stations. Grant funding will help the City install these stations and expand the Bay Area region’s network of plug-in electric vehicle charging stations. Notable Operational Changes for FY 2016/17 Code Compliance Officer Since 2011, the City’s code compliance responsibilities have been distributed among planning and building staff. With improvements to the economy creating a greater demand for planning and building services, it became increasingly difficult for staff to respond to code complaints. The City Council directed staff at its February 2016 Retreat to assess the workload of the Code Compliance Program. Upon review of the assessment, the Council agreed to fund a full-time code compliance officer position. CITY OF SARATOGA INTRODUCTION SECTION 18 Financial Overview GENERAL FUND NET OPERATIONS FY 2016/17 General Fund budgeted operations are consistent with the prior year in terms of service levels, with the welcome exception of an increase in code compliance functions. A full-time Code Compliance Officer position will be added to address long-term complaints, code ordinance revisions, and code enforcement duties. The addition of the position will allow other Development Department staff who have provided support for these functions over the past four years to fully focus on their own job specific duties, thereby improving planning and building service turnaround time. The addition of the Code Compliance Officer position was possible due to significant revenue growth over the last couple of years. For example, FY 2015/16 revenues will end the year $2 million higher than FY 2013/14 revenues. This revenue growth is primarily from property tax ($1.6 million) but occurs in most other revenue categories as well. Overall, the Proposed FY 2016/17 General Fund budget provides Net Operations of $326,542. Revenue and expenditure amounts may be adjusted slightly with last minute additions or subtractions as allowed under the budget adoption, therefore the Net Operations result may adjust slightly. As shown in the above schedule, the Net Operations includes the use of $50,000 from the Environmental Reserve in support of environmental program services, the entire $1,410,648 Capital Reserve to be used for capital projects, and the final $250,000 loan repayment to the Fiscal Stabilization Fund. Without the loan repayment requirement, Net Operations would have been $576,542. For a high-level perspective, the following graph depicts the historical General Fund Revenues versus Expenditures trend line – Net of both Transfers and Use of Fund Balance, to show the results of the City’s operational sustainability. 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 operations were very, very, tight, the City managed its way through the downturn. FY 2011/12 shows the initial economic turn-around when property tax and development revenues started their climb out of the downturn. This economic climb has continued on through the proposed budget year of FY 2016/17, both with increasing revenues and increasing expenditures. The revenue growth has come mostly from higher property tax and development fees. The expenditure growth is from increasing salary costs, and from higher service levels and general operating costs. Total Revenues 20,232,526 Use of Fund Balance From: Environmental Reserve 50,000 From: Capital Project Reserve 1,410,648 To: Fiscal Stabilization (repayment)(250,000) Total Funding Sources:21,443,174 Total Expenditures 19,705,984 Transfers Out To: Capital Project Funds 1,410,648 Total Funding Uses:21,116,632 NET OPERATIONS:326,542 GENERAL FUND CITY OF SARATOGA INTRODUCTION SECTION 19 The FY 2014/15 expenditure spike is an anomaly caused by a $3.3 million dollar payment to CalPERS to pay down almost 43% of the City’s Unfunded Accrued Liability (UAL). To make this payment, $2.4 million of Fund Balance funding was used, meaning true operational expenditures were $17.4 million rather than almost $19.9 million. If the graph was adjusted for this anomaly, the trend line would appear as an almost straight line up to the estimated FY 2015/16 expenditures. The narrowing of the gap in FY 2016/17 revenues and expenditures exemplifies the City’s practice to budget revenues conservatively, and to provide generously for workplan expenditure costs. Budgeted revenues are almost flat in comparison to the FY 2015/16 estimated actuals, and expenditures show an increase at a steeper climb than historically experienced. As is typically the case, the actual Net Operations amount is expected to be higher than the $326,542 shown in the Proposed Budget. REVENUES 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, the 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. 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. The chart to the left displays total revenue by fund type to illustrate the magnitude of General Fund revenues for comparison purposes. General Fund - In the General Fund, Property Tax is the largest General Fund revenue source, followed by 2) Franchise Fee taxes, 3) Charge for Services, 4) Fees, Licenses & Permits, and 5) Sales Tax. These top five revenue sources comprise 89% of the General Fund Revenue. Other revenue categories, such as rental income, transient occupancy tax, business license and construction tax, are also important, but fluctuations in these revenues do not individually impact the City’s fiscal sustainability. FY 2015/16 Property Tax revenue grew by more than $700,000. This growth was due in part to a one-time ERAF payment of $123,000 and the first 20% TEA allocation of approximately $130,000. However the primary contributor to the revenue increase came from ownership turnover and the rise in home prices, as verified by the healthy transfer tax receipts this fiscal year. Increases in Construction Tax revenues provide additional evidence of Saratoga’s strong economic boom as homeowners continue a high level of home remodeling activity. However, with signs of a slight cooling in the housing market, property tax revenue projections were tempered for FY 2016/17. A reduction in housing turnover and/or slower assessed valuation growth would impact both property tax revenue and transfer tax. It would also affect construction related permits and fees as homeowners become wary of economic changes. As a fiscal practice, Saratoga’s property tax related revenues reflect conservative projections. The remainder of the proposed FY 2016/17 Budget’s General Fund revenues reflect modest increases. While budgeted hotel tax (TOT) revenue is flat, it is noteworthy to mention that 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 the 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. CITY OF SARATOGA INTRODUCTION SECTION 20 The schedule below provides a high-level summary of General Fund Revenues and Transfers into the General Fund. The FY 2016/17 Operating Budget revenues are displayed in the far right column. The FY 2015/16 current year Adjusted Budget and estimated revenues are the two columns to the immediate left, and then the actual revenues for the three prior fiscal years are in the first, second, and third columns of numbers. General Fund Revenues and Transfers In The end of the recession was signaled first and foremost by a rapid growth in Property Tax. Most of the other revenues increased at a moderate pace, while some revenues have continued to vacillate. Interest however, remains at a critically reduced level - $600,000 per year lower than pre-recession. The City has adjusted its budget assumptions to match the new trends that have developed since the recession, and remain cautious in future growth projections. These varying growth patterns are visible from the annual totals across the schedule. In comparing next fiscal year’s ‘Proposed’ budget column to the prior (current) year, it is useful to understand the “Estimated” column provides a recent projection for current year actuals, and that next fiscal year’s proposed budget utilizes these estimates as a base for proposed amounts. Revenue Drivers Property Tax - Saratoga is a bedroom community with just over 30,000 residents. Saratoga residents enjoy their quiet neighborhoods nestled along the Santa Cruz Mountain foothills, and their nearby commute to the Silicon Valley companies where many are employed. The City is well known for its safety, thousands of beautiful and affluent high- end homes, quiet residential neighborhoods, richly landscaped roadways, finely manicured parks, and numerous hiking trails that lead to spectacular overlook vistas. The quaint, historic downtown Village provides fine dining establishments and wine-tasting shops, and is the gateway to the historic Hakone Japanese Garden, the Mountain Winery and the Montalvo Arts Center entertainment venues, and numerous open space trails within the Santa Cruz Mountains. The City is well known for its highly ranked schools and diverse culture. The bounty of activities and positive characteristics combine to make Saratoga a highly desirable place to live, and is reflected in Saratoga’s housing prices, and subsequently, its Property Taxes. FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 General Fund Revenues Actuals Actuals Actuals Adjusted Estimated Proposed Property Tax 8,966,396$ 9,526,189$ 10,436,621$ 10,475,350$ 11,149,501$ 11,331,350$ Sales Tax 1,051,121 941,350 1,224,427 1,060,000 1,255,000 1,125,000 Transient Occupancy Tax 228,199 257,010 309,618 310,000 315,000 315,000 Business & Other Taxes 541,158 565,261 556,654 575,000 620,000 605,000 Franchise Fee Tax 2,083,704 2,112,596 2,234,068 2,186,638 2,225,613 2,242,113 Intergovernmental 416,486 466,424 586,596 446,500 495,464 437,000 Fees, Licenses & Permits 1,591,517 1,524,041 1,409,199 1,465,900 1,475,950 1,486,680 Charge for Services 1,744,112 1,942,388 1,789,649 1,845,234 1,894,491 1,857,767 Interest 28,670 40,003 45,229 43,000 51,000 55,000 Rental Income 465,460 440,287 474,750 485,602 501,728 497,714 Other Sources 519,164 452,817 452,734 281,402 295,735 279,902 Total General Fund Revenues 17,635,987$ 18,268,366$ 19,519,545$ 19,174,626$ 20,279,482$ 20,232,526$ Fund Transfers In 106,000 167,050 - - 206,157 - Total Revenues & Transfers 17,741,987$ 18,435,416$ 19,519,545$ 19,174,626$ 20,485,639$ 20,232,526$ CITY OF SARATOGA INTRODUCTION SECTION 21 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 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 since the recession brought a financial momentum that helped to 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. At today’s assessment value, this is an additional $660,000 of property tax revenue to the City each year when fully restored. Development Revenues- With housing turnover, many homeowners undertake remodeling projects and upgrades. This heightened level of activity has resulted in increased revenues through development applications, plan checks, and building inspections. On occasion, there are new houses and parcel divisions that require grading, geology, and subdivision review work. This high level of development activity increased both the Community Development and Public Works’ development program revenues over the last four years that has now appeared to have leveled off. Hence, workload and revenues are expected to remain fairly steady into the near future. New Funding Sources Solid Waste Road Impact Fees - An updated road impact study was undertaken in FY 2014/15 by the West Valley Solid Waste Management Authority (WVSWMA). A previous study had initially recognized the solid waste trucks were causing roadway damage and assessed the hauler with annual impact fees which, for Saratoga, totaled approximately $62,989. This new study revealed a significant increase in the roadway damage caused by the solid waste vehicles during trash and recyclable collection. The Authority recommended the garbage rate assessment for road impacts be increased to reimburse cities for street resurfacing repairs. The Authority’s Board of Directors voted to phase the increase in over two years. FY 2015/16 brought in a total of $218,645 to the CIP Street Resurfacing Project. FY 2016/17 will see the full road impact fee of $351,300. A thorough review of major revenue categories is included in the Financial Summaries section on pages 123-132. CITY OF SARATOGA INTRODUCTION SECTION 22 EXPENDITURES The City’s General Fund expenditure schedule below provides a high-level summary of General Fund Expenditures and Transfers-Out. The Proposed FY 2016/17 budget in the far right column, the FY 2015/16 current year budgeted and estimated expenditures are the two columns to the immediate left, and the actual expenditures for the three prior fiscal years are in the first three columns of numbers. General Fund Expenditures and Transfers Out In the FY 2016/17 budget, salaries and benefits account for 38.5% of the budgeted expenditures. The Sheriff’s contract follows with 26.3% of the budget. The internal service charges account for 12.9% of the budget and represent the City’s reimbursement for support services and fixed asset and infrastructure replacement costs to itself. This ranges from Workers Compensation 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 11.8%, and is the compilation of many separate contract services, from attorney to 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 best guess for the prior year’s year-end actuals and estimated growth or decline into 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 is typically against the budget year as actual expenditures may 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 contingency typically results in a higher budgeted salary and benefits than actuals, and adds to year end net operations. FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 General Fund Expenditures Actuals Actuals Actuals Adjusted Estimated Proposed Salary & Benefits 6,409,105$ 6,408,421$ 6,484,653$ 7,014,983 6,769,979 7,592,718 UAL Payment - - 3,294,619 500,000 500,000 500,000 Materials & Supplies 188,965 236,925 195,949 305,220 249,339 298,810 Fees & Charges 738,596 759,799 732,387 925,455 880,996 892,393 Consultant & Contract Services 1,883,085 2,054,371 1,966,367 2,293,729 2,187,890 2,317,922 Sheriff Services 4,153,654 4,225,024 4,611,024 4,973,080 4,973,080 5,176,173 Meetings, Events & Training 38,946 80,468 73,668 126,800 75,529 138,525 Community Grants & Events 122,007 169,725 162,516 229,185 220,171 243,971 Fixed Assets - - 35,343 - 5,700 10,000 Internal Services Charges 2,033,577 2,202,844 2,325,823 2,455,758 2,455,758 2,535,472 Total Expenditures 15,567,935$ 16,137,576$ 19,882,349$ 18,824,210$ 18,318,441$ 19,705,984$ Streets CIP 195,000 150,000 662,753 1,099,000 1,099,000 1,095,000 Park & Trails CIP 580,000 45,880 443,445 295,000 295,000 75,000 Facilities CIP 224,500 - 339,900 233,896 233,896 190,648 Administrative & Technology CIP 85,000 85,000 120,000 225,000 225,000 50,000 CIP Reserve Transfers 1,084,500$ 280,880$ 1,566,098$ 1,852,896$ 1,852,896$ 1,410,648$ Development Reserve Transfer - - - 60,000 60,000 - General Fund Transfers Annual Facilities CIP 100,000 100,000 100,000 - - - Transfer to Street Resurfacing - - - 64,760 64,760 - Total General Fund Transfers 100,000$ 100,000$ 100,000$ 64,760$ 64,760$ -$ Total Transfers Out 1,184,500 380,880 1,666,098 1,977,656 1,977,656 1,410,648 Total Expenditures & Transfers 16,752,435$ 16,518,456$ 21,548,447$ 20,801,866$ 20,296,097$ 21,116,632$ Net Operations 2,516,697$ 2,104,220$ 1,703,415 187,216$ 2,003,998$ 326,542$ CITY OF SARATOGA INTRODUCTION SECTION 23 Overall, General Fund adopted expenditures increased 4.68% from the prior year budget. Two components made up the majority of the $882,000 increase: Salary & Benefits ($578,000) and Sheriff Services ($203,000). 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. Salary & Benefits For Salary and Benefits, the proposed budget amount typically provides a more accurate comparison than using the current year’s estimates due to vacancy factors and the annual contingency budgeted to fund retirements, terminations, and paid-time-off payouts. The Proposed Salary & Benefit budget grew by $712,000 for FY 2016/17. Of this amount, salary costs increased by $308,000 due to the addition of a full-time benefitted position, cost-of-living-adjustments (COLA), step and longevity increases, and promotions. Insurance premium increases contributed another $270,000 of expenditure growth. The insurance growth is explained in more detail below. Increases in Temporary staff costs, PERS pension costs, and payroll taxes made up the remainder of the increase. FTE Changes – For the last four years, Development staff have backfilled the defunded Code Compliance position. Duties were allocated amongst the staff, with only minimal code enforcement activity accomplished. Due to an increasing number of code related complaints, Council requested staff address the issue and subsequently provided funding for contract code enforcement services during FY 2015/16 while staff worked internally to develop a work program and assess the options. Options were brought to Council at the Budget Study Session, and Council recognized the desired level of service to respond to code matters required the hiring of a full-time Code Compliance Officer position. The FY 2016/17 budget includes salary & benefit funding for this purpose. 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. code compliance) 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 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’ October 2014 Actuarial Report presented a modification in 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 had 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. Under current actuarial assumptions, the unfunded liabilities increase by the 7.5% assumed discount rate, and decrease by the investment earnings and payments made. With the 7.5% discount rate assumption, the 30 year payment plan would more than double the cost of the liability. Therefore, the City Council decided to pay down 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 replaced the 30 year payment schedule with a plan to pay $500,000 per year toward the outstanding UAL in addition to the employer’s normal cost expense. This will reduce the liability faster, stabilize the annual payment amount, and possibly eliminate the unfunded liability in fourteen or fifteen years, thereby saving $4 to $5 million in interest costs over the long term. Employee Memorandum of Understanding – The 2015 Memorandum of Understanding (MOU) agreements between the City and employee groups effective July 1, 2015 has modified the medical benefits for employees to create a standard benefit, regardless of employee group affiliation. This change increased the medical benefit provided for CITY OF SARATOGA INTRODUCTION SECTION 24 newer employees, and limits or reduces the medical benefit for longer term employees. In the short term, there is a significant increase in FY 2016/17 premium cost ($270,000), however over the long term, the new benefit structure will help contain the City’s insurance obligation. Operational Expenditures Budgeted FY 2016/17 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 Saratoga was incorporated in 1956. This partnership has been rewarding for the City in multiple ways. The City saves millions of dollars a year by contracting with the Sheriff’s Office instead of employing an in-house police department. Even with an 4.1% cost increase from the prior year, the Sheriff Contract accounts for just 26.3% of the City’s General Fund budget. This compares favorably to other Santa Clara County municipalities that dedicated 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. While the Sheriff’s Office contract cost is comparatively small, the City has received an immense return in services. 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 on an incremental, as-needed basis. In FY 2016/17, 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. Not only does the City see considerable cost savings through its agreement with the Santa Clara County Office of the Sheriff, but 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 occurring 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. In fact, Saratoga was recognized for its low crime rate in November 2013 when SafeWise.com named Saratoga “The Safest City in California”. This honor was followed just a few months later with news that Saratoga had been named the 12th Safest City in the United States by NeighborhoodScout.com. The company released the results in February 2014. The company based its findings on the research of cities with 25,000 residents or more and the total number of property and violent crimes per 1,000 residents. Crimes included burglary, theft, motor vehicle theft, murder, rape, armed robbery, and aggravated assault. Fixed Assets There is only one fixed asset scheduled for purchase in the FY 2016/17 General Fund budget: a $10,000 storage shed for equipment at the new Quarry Park. Only new fixed assets are funded through a department’s operating budget. Once purchased, annual replacement costs are charged to the “owners” over the assets 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 the 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 Office Technology Equipment Replacement Fund, and as of FY 2015/16, the Facility FF&E (Furniture, Fixture, & Equipment) Replacement Fund. CITY OF SARATOGA INTRODUCTION SECTION 25 Some of the service/support ISF 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. In addition, with the City’s reserve policies calling for ISF reserves to be funded at a working capital level, several of the funds required an increase in the service charge-backs to right-size the fund balances. Future year increases are expected to be minimal as annual funding is adequate, and most fund balances are in line with reserve policies. Throughout the years, new information, operational changes, and reviews of the I SF may identify needed funding changes. For instance, items that had been considered a capital project that the Council would fund at their option, could instead become an operational replacement cost that is captured and properly funded on an ongoing basis – such as tennis court upgrades in parks. Changes such as this occur over time, and the ISFs are modified as needed. This did not occur in the FY 2016/17 budget, but is expected to occur in future years. In the current proposed budget, funding increase changes were limited to operational costs increases. 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 2016/17, $1.4 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 funds in which they are used. This practice provides better audit trails and transparency of City finances. CITY OF SARATOGA INTRODUCTION SECTION 26 Capital Budget Highlights STREETS PROGRAM Annual Roadway Improvements This $1.7 million project will fund ongoing street resurfacing and maintenance repair in order to maintain the City’s paveme nt infrastructure. In prior years, the City allocated $1,000,000 annually towards the pavement management program. In Fiscal Year 2015/16, Council set a goal of increasing funding for this program from $1,000,000 to $2,000,000. All projects related to street repair and resurfacing were combined into this new project. This project will be continuously funded through gas tax revenues, heavy vehicle impact fees, grants, available CIP reserves, and any future transportation funding revenues. Annual Infrastructure Maintenance and Repairs This $200,000 project will fund infrastructure maintenance related to sidewalks, curbs and gutters, storm drains and bridges. In prior years, minor infrastructure repairs related to the aforementioned categories were funded through separate $50,000 annual allocations. Combining the funding for these four infrastructure categories provides more flexibility in addressing infrastructure needs throughout the City on a year-by-year basis. Per Budget Policy, this project will be continuously funded through an annual allocation from the CIP reserve. PARKS AND TRAILS PROGRAM El Quito Park “Magical Bridge” Playground This estimated $4 million project will fund the design and construction of an all-inclusive playground at El Quito Park. An all-inclusive playground is a revolutionary concept to make playgrounds accessible to people of all ages and abilities. The City will partner with the Magical Bridge Foundation to research, design, construct and develop a fundrai sing campaign. Cost estimates are based upon the completion of a Magical Bridge playground in Palo Alto. Hakone Gardens Koi Pond Improvements This $66,000 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 needed for the filtration system, the project will also include the construction of a small structure to house all of the necessary equipment. CITY OF SARATOGA INTRODUCTION SECTION 27 Quarry Park ADA Access to Upper Terrace Parking Lot and Pond This $250,000 project will fund the design, environmental review and construction of the Upper Terrace Parking Lot to allow additional parking and ADA access to the parking lot and pond areas. In 2011, the City purchased the 64 acre Quarry property off of Highway 9. The park officially opened on October 31, 2015. Improvements will include widening of an access road to the upper parking lot, parking area improvements and ADA accessible trails to the upper terrace area. FACILITY IMPROVEMENT PROGRAM Facility Building Improvements This $70,000 project will construct exterior, free-standing storage buildings for furnishings that are rented for use at the Saratoga Prospect Center and Warner Hutton House. There are currently limited accommodations inside each facility to maximize the u se of tables and chairs. The design of each building will be consistent with the look of both Friendship Hall and Warner Hutton House. Senior Center Restroom ADA Upgrade This $153,000 project will fund ADA compliant upgrades to the restrooms located in the Senior Center. Improvements will include expansion of the existing bathrooms to meet accessibility standards, and complete remodel of the bathroom with new furnishings. Expansion may result in the construction of a sheer wall to maintain structural integrity. If funding constraints arise, the restroom improvements and sheer wall will be given priority. Additional improvements will be incorporated as funding allows. ADMINISTRATIVE & TECHNOLOGY IMPROVEMENT PROGRAM Citywide Transportation Needs Assessment This $50,000 project will investigate transportation needs for the City based on a comprehensive look at all demographics including senior transportation needs. The study will look at destination patterns of Saratoga residents as well as opportunities and constraints connected to public transportation. Opportunities to expand the study with other West Valley cities will be explored. CITY OF SARATOGA INTRODUCTION SECTION 28 CITY OF SARATOGA INTRODUCTION SECTION 29 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 30 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 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. CITY OF SARATOGA INTRODUCTION SECTION 31 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 30,219 (January 1, 2016) 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% 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 community 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 OF SARATOGA INTRODUCTION SECTION 32 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 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 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. The Committee consists of two Council members who each serve one year terms of office, and will meet monthly or on as as-needed basis. Heritage Preservation Commission The Heritage Preservation Commission 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 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 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, assesses public input, collects information, and makes recommendations to the Saratoga City Council. After being suspended for several years, the Parks and Recreation Commission was reinstated by the Council on May 16, 2007. 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. Planning Commission The Planning Commission advises the City 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. Traffic Safety Commission The Traffic Safety Commission investigates reviews and analyzes traffic safety issues raised by the Community members and Public Safety Agencies. It provides a venue for the public to express concerns regarding traffic safety issues. The Traffic Safety Commission makes recommendations to the City regarding traffic safety. CITY OF SARATOGA INTRODUCTION SECTION 34 Youth Commission The Youth Commission is comprised of 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 OF SARATOGA 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 expenditures 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 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 it budgets with a team-based budgeting approach. The City Manager and Administrative Services Director guides the process T CITY OF SARATOGA INTRODUCTION SECTION 41 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, 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 updates 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 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 26 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. CITY OF SARATOGA INTRODUCTION SECTION 46  IT Services Fund – Information Technology Services supports the delivery of technology based services and infrastructure, including desktop support, network systems, technology upgrades and initiatives, communication systems, and associated IT equipment.  Vehicle & Equipment Maintenance Fund - Accounts for the cost of operating and maintaining vehicles and equipment used for service operations in various City departments.  Building Maintenance Fund – Accounts for operational costs associated with building maintenance. Includes custodial supplies and services, maintenance and repair, utilities, and staffing costs.  Vehicle & Equipment Replacement Fund – Established to accumulate funding for the replacement of vehicles and equipment. Replacement costs are charged to departments over the asset’s life span, reflective of usage.  IT Equipment Replacement Fund – Established to accumulate funding for the replacement of information technology equipment. Replacement costs are charged to departments over the assets 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 assets lifespan, reflective of usage. FIDUCIARY FUNDS Fiduciary Funds are used to account for assets held by the City acting in a fiduciary capacity for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances and other governing regulations. There are two categories of fiduciary funds, Trust and Agency. Trust Funds 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 CITY OF SARATOGA 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 28 Assessment District Funds CITY OF SARATOGA INTRODUCTION SECTION 48 CITY OF SARATOGA 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 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 budget 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, updated, 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 in 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. Operating 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.  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. CITY OF SARATOGA INTRODUCTION SECTION 55  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 carried 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. The City Council established an alternative repayment plan to lower the overall cost of the liability while maintaining fiscal stability. Approximately 43% of the outstanding liability was immediately paid through the use of current year net operations and expendable reserve funding. The remaining liability is to be paid off with an accelerated payment plan of $500,000 per year. This payment strategy reduces interest costs by approximately 65% and reduces the payment period to 15 years.  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 Department 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. CITY OF SARATOGA INTRODUCTION SECTION 56 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 Reportin g 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  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. CITY OF SARATOGA INTRODUCTION SECTION 57  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:  $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 operational 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. CITY OF SARATOGA INTRODUCTION SECTION 58  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 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. Repairs 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 long range financial and operational planning. These shall include Roadway System management programs, Storm Drain System CITY OF SARATOGA INTRODUCTION SECTION 59 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 appropriations in 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.  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. CITY OF SARATOGA INTRODUCTION SECTION 60  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 fluctuations. 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.  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 CITY OF SARATOGA INTRODUCTION SECTION 61  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 which 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 62 CITY OF SARATOGA INTRODUCTION SECTION 63 FUND BALANCE RESERVE POLICY 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 overviews, the descriptions include identification of the fund type and classification, the purpose of the reserve, minimum and maximum funding goals if appropriate, guidelines on 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 (Trust Funds). Currently, the City’s non-governmental fund types are limited to Internal Service 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 Balance  Debt Service Fund: Library General Obligation Bond Debt Service Fund  Capital Project Funds: a) Park In Lieu Fund: b) Highway User Tax Allocation Fund (Gas Tax): c) Capital Project Grant Funds CITY OF SARATOGA INTRODUCTION SECTION 64 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 purpose.  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 – FUND BALANCE RESERVE POLICIES 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 programs, 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 pres ented to Council for approval, or in the 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. Reserv e 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 use s. 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 fiscally responsible pra ctice 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 infrastructur e 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 facility’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. 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 CITY OF SARATOGA INTRODUCTION SECTION 66 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 requests 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 efficiency 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 t o 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. The $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 funding level increase d 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. CITY OF SARATOGA INTRODUCTION SECTION 67 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 reserve balance in any given fiscal year, with Council approval. Budgeted use of t he 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 established to smooth expenditure fluctuations resulting from the payout of a ccrued 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 Co uncil Discretionary Funds as reserve funds are immediately re -appropriated into the following fiscal year. This allows Council the flexibility to take advantage of unforeseen opportunities 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. 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 accou nted 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 Gener al Fund is used for multiple and general operational purposes thereby requiring a distinction of purpose for each reserve. CITY OF SARATOGA INTRODUCTION SECTION 68 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 – FUND BALANCE RESERVE POLICIES 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 clas sified 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 work ing 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 determined 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 – FUND BALANCE RESERVE POLICIES 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, and 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 Reserve 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 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. CITY OF SARATOGA INTRODUCTION SECTION 69 CAPITAL IMPROVEMENT PROJECT FUNDS – FUND BALANCE RESERVE POLICIES 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 scope 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 d esignated 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. 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. Park & Trail Improvement Project Funds Park & Trail Improvement Project Funds provide for capital improvements to the City’s neighborhood and 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 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. CITY OF SARATOGA INTRODUCTION SECTION 70 The CIP Facilities Fund receives annual funding from a Gene ral 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 remai n 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, p rojects 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 FUNDS – FUND BALANCE RESERVE POLICIES Overview Internal Service Funds are established 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. 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 Repla cement Fund, the Office Technology Equipment Replacement Fund, and the Building FF&E (Furniture, Fixture, & Equipment) Replacement Fund. As each fund is accounted for as a separate entity, operational revenues less expenditures result in either a posi tive 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”. The 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 deter mined 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). CITY OF SARATOGA INTRODUCTION SECTION 71 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 P roperty 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 funding 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 durin g 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 it s 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. 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 replenishe d 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 CITY OF SARATOGA INTRODUCTION SECTION 72 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. Building 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 Ma intenance 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 ad option 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. 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 computers 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. CITY OF SARATOGA INTRODUCTION SECTION 73 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 whether the cost of maintenance equal s 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 CITY OF SARATOGA INTRODUCTION SECTION 75 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 into 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 76 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 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. CITY OF SARATOGA INTRODUCTION SECTION 77 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:  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 CITY OF SARATOGA INTRODUCTION SECTION 78 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 February. 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, the y 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 the 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. 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 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, loans, 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 2016/17. The following schedule reflects historical appropriations for the prior nine fiscal years, and the calculation for the next budgeted fiscal year: APPROPRIATION LIMIT FACTORS For Beginning County City California Ending % YE Population Population Per Capita Limit Limit Factor Factor Income Δ Limit Increase 2008 27,203,516 1.0152 1.0138 1.0442 28,837,681 6.01% 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% June 30 AppropriationAppropriation CITY OF SARATOGA INTRODUCTION SECTION 81 The City of Saratoga’s appropriation limit for fiscal year 2016/17 is calculated as follows: As illustrated above, the total amount of tax revenues appropriated to the City in FY 2016/17 is not to exceed $40,602,404. The FY 2016/17 budget anticipates $13,459,350 in Gann designated tax revenues which equates to $27,143,054 less than, or approximately 33% 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, as Saratoga was 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 38 year average), the significantly wide margin between tax revenues and the appropriations limit will continue to provide a safe buffer long into the future. APPROPRIATION LIMIT ADOPTION The resolution to revise the appropriation limit to $40,602,404 for FY 2016/17 was brought to Council for approval on June 1, 2016. % Increase in California 2015/16 2016/17 County Per Capita Appropriation Appropriation Appropriation Population Income Δ Factor Limit Limit 1.0126 X 1.0537 = 1.0670 X 38,053,696$ = 40,602,404$ FY 2016/17 Calculation Actuals Actuals Actuals Actuals Estimated Budgeted Projected Projected Projected Projected 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 10,163,343 10,716,987 11,408,601 12,705,396 12,530,350 13,459,350 14,071,769 14,712,053 15,381,471 16,081,349 31,907,666 33,521,156 35,790,667 36,243,974 38,053,696 40,602,404 42,177,418 43,813,529 45,513,107 47,278,614 34% 32% 32% 35% 33% 33% 33% 34% 34% 34% Tax Revenues to Appropriation Limit 10 Year Trend 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 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 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 85 FINANCIAL SUMMARIES & SUPPLEMENTAL INFORMATION 86 CITY OF SARATOGA FINANCIAL SUMMARIES 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 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 89 TOTAL FUND BUDGET ACTIVITY SUMMARY FY 2016/17 Capital Funds – Unspent funds from the prior year 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 will carry forward and be re-budgeted in the next fiscal year’s budget. Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2016 Transfers In Transfers Out Fund Balance June 30, 2017 Operating Funds General Fund Reserves Environmental Services 313,182$ -$ -$ (50,000)$ 263,182$ Hillside Stability 1,000,000 - - - 1,000,000 Capital Projects 1,472,408 - - (1,410,648) 61,760 Facility Reserve 1,200,000 - - 500,000 1,700,000 Working Capital 1,000,000 - - - 1,000,000 Fiscal Stabilization 2,250,000 - - 250,000 2,500,000 Development Services 719,562 - - - 719,562 Compensated Absences 209,937 - - - 209,937 Other Unassigned 2,475,531 20,223,886 (21,120,042) 710,648 2,290,023 Total General Fund Reserves 10,640,620 20,223,886 (21,120,042) - 9,744,464 Special Revenue Funds Landscape & Lighting Districts 1,005,796 625,011 (714,930) - 915,877 Total Special Revenue Reserves 1,005,796 625,011 (714,930) - 915,877 Internal Service Funds Liability/Risk Management 376,488 387,577 (436,050) - 328,015 Workers Compensation 304,401 185,000 (216,856) - 272,545 Office Support Services 96,172 62,000 (73,450) - 84,722 IT Services 274,223 531,500 (602,565) - 203,158 Vehicle & Equipment Maintenance 165,949 275,000 (259,033) - 181,916 Facility Maintenance 370,717 929,000 (900,766) - 398,951 Vehicle & Equipment Replacement 611,708 125,000 (266,700) - 470,008 IT Equipment Replacement 274,339 125,000 (136,280) - 263,059 Facility FFE Replacement 339,222 200,000 (246,544) - 292,678 Total Internal Service Fund Reserves 2,813,219 2,820,077 (3,138,243) - 2,495,053 Total Operating Funds 14,459,635$ 23,668,974$ (24,973,215)$ -$ 13,155,394$ Debt Service 2001 Series GO Bonds 922,952 801,300 (847,960) - 876,292 Total Debt Service Funds 922,952 801,300 (847,960) - 876,292 Total Operating Funds 15,382,587$ 24,470,274$ (25,821,175)$ -$ 14,031,686$ Capital Funds Street Projects 2,720,317 9,026,794 (11,747,112) - - Park & Trail Projects 1,082,410 555,765 (1,520,710) - 117,466 Facility Projects 245,639 381,275 (591,913) - 35,000 Administrative Projects 667,699 297,394 (965,093) - - Total Capital Funds 4,716,065 10,261,228 (14,824,827) - 152,466 Total All Funds 20,098,652$ 34,731,502$ (40,646,002) -$ 14,184,152$ CITY OF SARATOGA FINANCIAL SUMMARIES 90 TOTAL REVENUES & TRANSFERS IN BY FUND FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 Revenues By Fund Actuals Actuals Actuals Adjusted Actuals Adopted General Fund General Fund 17,635,987$ 18,268,366$ 19,519,545$ 19,216,668$ 20,782,596$ 20,223,886$ Total General Fund 17,635,987 18,268,366 19,519,545 19,216,668 20,782,596 20,223,886 Special Revenue Funds Landscape & Lighting Districts 483,087 521,307 566,483 585,867 599,827 625,011 Total Special Revenue Funds 483,087 521,307 566,483 585,867 599,827 625,011 Internal Service Funds Liability / Risk Management Ins 403,399 389,809 399,482 394,008 343,808 387,577 Workers Compensation Ins 244,453 217,433 217,567 185,000 185,000 185,000 Office Support Services 67,086 65,028 68,183 62,000 65,703 62,000 Information Technology Services 400,257 403,488 430,803 480,000 481,485 531,500 Vehicle & Equipment Maintenance 215,000 250,000 300,000 275,000 275,003 275,000 Facility Maintenance 755,857 832,474 882,299 900,000 906,440 929,000 Vehicle & Equipment Replacement 100,000 207,050 206,393 125,000 163,565 125,000 IT Equipment Replacement 46,236 55,000 65,000 125,000 125,000 125,000 Facility FFE Replacement - - - 200,000 200,000 200,000 Total Internal Service Funds 2,232,288 2,420,282 2,569,728 2,746,008 2,746,004 2,820,077 Debt Service Funds 2001 Series GO Bond 892,253 901,539 898,774 846,300 901,362 801,300 Total Debt Service Funds 892,253 901,539 898,774 846,300 901,362 801,300 Capital Improvement Program Funds Street Projects 2,558,053 1,489,006 1,771,339 8,129,073 1,206,299 7,931,794 Park & Trail Projects (57,245) 967,061 311,143 482,535 493,047 456,015 Facility Projects 113,410 131,590 38,580 201,007 40,371 190,627 Administrative Projects 162,683 - 163,928 130,000 138,552 130,000 Total Capital Improvement Program 2,776,901 2,587,657 2,284,991 8,942,615 1,878,270 8,708,436 Total Revenues 24,020,516$ 24,699,150$ 25,839,521$ 32,337,458$ 26,908,058$ 33,178,710$ Operating Transfers In General Fund 106,000 167,050 - - 267,918 - FFE Replacement Fund - - - - 180,000 - Street Capital Project Funds 661,818 234,487 731,010 1,143,518 2,450,555 1,095,000 Park & Trail Capital Project Funds 593,852 119,877 443,445 360,818 378,380 99,750 Facility Capital Project Fund 324,500 100,000 472,653 333,896 153,896 190,648 Admin Capital Project Fund 85,000 163,673 120,000 325,000 329,462 167,394 Total Transfers In 1,771,170$ 785,087$ 1,767,108$ 2,163,232$ 3,760,211$ 1,552,792$ Total Revenues & Transfers In 25,791,686$ 25,484,237$ 27,606,629$ 34,500,690$ 30,668,268$ 34,731,502$ CITY OF SARATOGA FINANCIAL SUMMARIES 91 TOTAL REVENUES & TRANSFERS IN BY FUND TYPE FY 2016/17 TOTAL REVENUES BY FUND 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 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 % of Revenues By Fund Actuals Actuals Actuals Adjusted Actuals Adopted Total General Fund 17,635,987$ 18,268,366$ 19,519,545$ 19,216,668$ 20,782,596$ 20,223,886$ 61.0% Special Revenue Funds 483,087 521,307 566,483 585,867 599,827 625,011 1.9% Internal Service Funds 2,232,288 2,420,282 2,569,728 2,746,008 2,746,004 2,820,077 8.5% Debt Service Funds 892,253 901,539 898,774 846,300 901,362 801,300 2.4% Capital Improvement Funds 2,776,901 2,587,657 2,284,992 8,942,615 1,878,270 8,708,436 26.2% Total Revenues By Fund 24,020,516$ 24,699,150$ 25,839,522$ 32,337,458$ 26,908,058$ 33,178,710$ 100.0% Operating Fund Transfers 106,000 167,050 - - 447,918 - CIP Fund Transfers 1,665,170 618,037 1,767,108 2,163,232 3,312,293 1,552,792 Total Revenues & Transfers Out 25,791,686$ 25,484,237$ 27,606,630$ 34,500,690$ 30,668,268$ 34,731,502$ CITY OF SARATOGA FINANCIAL SUMMARIES 92 TOTAL EXPENDITURES & TRANSFERS OUT BY FUND FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 Expenditures By Fund Actuals Actuals Actuals Adjusted Actuals Adopted General Fund General Fund 15,567,935$ 16,137,576$ 19,882,349$ 18,866,252$ 18,198,969$ 19,709,394$ Total General Fund 15,567,935 16,137,576 19,882,349 18,866,252 18,198,969 19,709,394 Special Revenue Funds Landscape & Lighting Districts 423,644 409,418 432,671 650,800 461,679 714,930 Total Special Revenue Funds 423,644 409,418 432,671 650,800 461,679 714,930 Internal Service Funds Liability / Risk Management Ins 308,096 336,743 391,344 393,913 258,585 436,050 Workers Compensation Ins 182,700 229,510 184,683 214,555 195,124 216,856 Office Support Services 54,285 35,928 46,229 73,250 44,606 73,450 Information Technology Services 375,674 422,703 432,550 530,066 467,583 602,565 Vehicle & Equipment Maintenance 227,604 224,078 220,785 256,346 224,618 259,033 Facility Maintenance 771,882 817,506 813,842 879,629 804,049 900,766 Vehicle & Equipment Replacement 95,000 140,258 65,775 204,500 201,355 266,700 IT Equipment Replacement 46,678 58,530 23,687 108,400 44,762 136,280 Facility FFE Replacement - - - 169,000 40,778 246,544 Total Internal Service Funds 2,061,919 2,265,256 2,178,896 2,829,659 2,281,460 3,138,243 Debt Service Funds 2001 Series GO Bond 868,910 889,510 889,960 885,085 885,010 847,960 Total Debt Service Funds 868,910 889,510 889,960 885,085 885,010 847,960 Capital Project Funds Street Projects 2,832,190 1,853,714 2,322,630 11,097,130 1,397,415 11,747,112 Park & Trail Projects 290,278 886,168 544,470 1,910,912 787,389 1,495,960 Facility Projects 670,761 286,412 369,650 847,521 237,731 591,913 Administrative Projects 186,044 69,220 42,878 782,869 168,186 847,698 Total Capital Project Funds 3,979,272 3,095,514 3,279,628 14,638,433 2,590,721 14,682,682 Total Expenditures 22,901,680$ 22,797,274$ 26,663,504$ 37,870,229$ 24,417,839$ 39,093,209$ Operating Transfers Out General Fund 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 IT Equip Replacement to CIP - - - - - - Street Capital Project Funds 572,818 225,698 - 79,758 1,443,419 - Park & Trail Capital Project Funds 13,852 59,837 - 65,818 240,620 24,750 Facility Capital Projects Fund - - - - 58,516 - Admin Capital Projects Fund - 118,672 40,000 - - 117,394 Total Operating Transfers Out 1,771,170$ 785,087$ 1,706,098$ 2,163,232$ 3,760,211$ 1,552,792$ Total Expenditures & Transfers Out 24,672,850$ 23,582,362$ 28,274,848$ 40,033,461$ 28,178,050$ 40,646,001$ CITY OF SARATOGA FINANCIAL SUMMARIES 93 TOTAL EXPENDITURES & TRANSFERS OUT BY FUND TYPE FY 2016/17 TOTAL EXPENDITURES BY FUND 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 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 % of Expenditures By Fund Actuals Actuals Actuals Adjusted Actuals Adopted Total General Fund 15,567,935$ 16,137,576$ 19,882,349$ 18,866,252$ 18,198,969$ 19,709,394$ 50.4% Special Revenue Funds 423,644 409,418 432,671 650,800 461,679 714,930 1.8% Internal Service Funds 2,061,919 2,265,256 2,084,142 2,829,659 2,281,460 3,138,243 8.0% Debt Service Funds 868,910 889,510 889,960 885,085 885,010 847,960 2.2% Capital Project Funds 3,979,272 3,095,514 3,279,628 14,638,433 2,590,721 14,682,682 37.6% Total Expenditures By Fund 22,901,680$ 22,797,274$ 26,568,750$ 37,870,229$ 24,417,839$ 39,093,209$ 100.0% Operating Fund Transfers 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 CIP Fund Transfers 586,670 404,207 40,000 145,576 1,742,555 142,144 Total Expenditues & Transfers Out 24,672,850$ 23,582,362$ 28,274,848$ 40,033,461$ 28,178,050$ 40,646,001$ CITY OF SARATOGA FINANCIAL SUMMARIES 94 TOTAL REVENUES & TRANSFERS IN BY CATEGORY FY 2016/17 TOTAL REVENUES BY CATEGORY FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 % of Revenues by Category Actuals Actuals Actuals Adjusted Actuals Adopted Total Property Tax 10,501,874$ 10,944,060$ 11,889,552$ 12,070,996$ 12,937,839$ 12,921,196$ 37.3% Sales Tax 1,051,121 941,350 1,224,427 1,060,000 1,189,398 1,125,000 3.3% Franchise Fee Tax 1,919,750 2,112,596 2,234,068 2,020,000 2,068,401 2,075,000 6.2% Transient Occupancy Tax 228,199 257,010 309,618 310,000 319,109 315,000 1.0% Business/Other Taxes 541,158 565,261 556,654 575,000 578,652 605,000 1.8% Intergovernmental 447,502 466,424 586,596 517,550 567,624 459,577 1.6% Fees, Licenses & Permits 1,591,517 1,524,041 1,409,199 1,465,900 1,544,844 1,486,680 4.5% Charge for Services 1,756,198 1,942,388 1,789,649 1,857,234 2,090,642 1,861,127 5.7% Interest Income 30,521 41,524 46,762 44,300 81,882 56,300 0.1% Rental Income 465,460 442,207 474,750 485,602 527,596 497,714 1.5% Other Sources 529,080 454,345 470,826 338,261 452,964 342,680 1.0% Operating Revenues 19,062,380$ 19,691,206$ 20,992,101$ 20,744,843$ 22,358,952$ 21,745,274$ 64.2% Internal Service Funds 2,181,235 2,360,000 2,495,000 2,650,000 2,670,836 2,725,000 8.2% Capital Improvements 2,776,901 2,587,657 2,284,511 8,942,615 1,878,270 8,708,436 27.7% Total Revenues 24,020,516$ 24,638,863$ 25,771,612$ 32,337,458$ 26,908,058$ 33,178,710$ 100.0% Fund Transfers In 1,771,170 785,087 1,767,108 2,163,232 3,760,211 1,552,792 Total Revenues & Transfers 25,791,686$ 25,484,232$ 27,606,149$ 34,500,690$ 30,668,268$ 34,731,502$ CITY OF SARATOGA FINANCIAL SUMMARIES 95 TOTAL EXPENDITURES & TRANSFERS OUT BY CATEGORY FY 2016/17 TOTAL EXPENDITURES BY CATEGORY FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 % of Expenditure Category Actuals Actuals Actuals Adjusted Actuals Adopted Total Salaries & Benefits 7,217,090 7,295,206 7,377,313 7,870,167 7,669,503 8,503,997 20.8% UAL Payments - - 3,294,619 500,000 500,000 500,000 1.3% Materials & Supplies 396,595 447,068 357,664 587,628 378,414 606,717 1.6% Fees & Charges 1,578,980 1,655,610 1,663,773 1,911,598 1,648,500 1,942,955 5.0% Consultant & Contract Services 2,267,655 2,448,555 2,360,528 3,046,125 2,567,075 3,173,075 8.0% Sheriff Services 4,153,654 4,225,024 4,611,024 4,973,080 4,973,080 5,176,173 13.1% Meetings & Training 41,282 81,926 77,094 135,550 62,627 148,025 0.4% Community Grants & Events 122,007 169,725 162,516 229,185 202,525 243,381 0.6% Operating Grant Expenditures - - - 42,042 34,762 - 0.1% Debt Service 868,910 889,510 889,960 885,085 885,010 847,960 2.3% Fixed Assets 95,000 129,138 94,386 380,500 234,787 518,244 1.0% Operating Expenditures 16,741,173 17,341,760 20,794,122 20,560,960 19,156,282 21,660,527 54.3% Internal Service Charges 2,181,235 2,360,000 2,495,000 2,670,836 2,670,836 2,750,000 7.1% Capital Improvements 3,979,272 3,095,514 3,279,628 14,638,433 2,590,721 14,682,682 38.7% Total Expenditures 22,901,680$ 22,797,274$ 26,568,750$ 37,870,229$ 24,417,839$ 39,093,209$ 100.0% Operating Transfers Out 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 CIP Fund Transfers Out 586,670 404,207 40,000 145,576 1,742,555 142,144 Total Expenditures & Transfers 1,771,170$ 785,087$ 1,706,098$ 2,163,232$ 3,760,211$ 1,552,792$ Bond Refunding Expenditure - - - - - - Total Funding Uses 24,672,850$ 23,582,362$ 28,274,848$ 40,033,461$ 28,178,050$ 40,646,001$ CITY OF SARATOGA FINANCIAL SUMMARIES 96 GENERAL FUND REVENUES BY DEPARTMENT FY 2016/17 GENERAL FUND REVENUES BY DEPARTMENT 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Departments Actuals Actuals Actuals Adjusted Estimated Adopted Total Council & Commissions 1,200$ 1,200$ 3,600$ 600$ 600$ 600$ 0.0% City Manager's Department 2,236 625 934 400 401 - 0.0% Administrative Services 51,985 47,609 56,581 46,800 50,147 47,880 0.2% Community Development 2,183,782 2,219,935 2,095,113 2,201,650 2,258,530 2,296,550 11.4% Public Works 967,747 1,014,993 991,143 727,522 1,071,813 721,590 3.6% Recreation & Facilities 875,765 910,597 905,638 1,105,900 1,069,399 1,048,512 5.2% Public Safety 682,552 447,024 460,596 386,025 431,735 382,525 1.9% Non-Departmental 12,870,720 13,626,382 15,005,940 14,747,771 15,899,970 15,726,229 77.8% Total General Fund Revenues 17,635,987$ 18,268,366$ 19,519,545$ 19,216,668$ 20,782,596$ 20,223,886$ 100.0% Fund Transfers In 106,000 167,050 - - 267,918 - GF Revenues & Transfers In 17,741,987$ 18,435,416$ 19,519,545$ 19,216,668$ 21,050,514$ 20,223,886$ Use of Fund Balance Reserves: 247,200 73,101 118,788 176,560 176,560 - Development Reserve - - - 60,000 60,000 - 50,000 50,000 50,000 50,000 50,000 50,000 CY CIP Reserve 1,504,944 280,880 1,633,345 1,777,896 1,777,896 1,410,648 CY CIP Reserve (UAL Pymt) - - 500,000 - - - Compensated Absences (75,000) (216,721) - - - - Compensated Absences (200,000) - - - - - Fiscal Stability Reserve - - 1,000,000 - - - Fiscal Stability - Repayment - - (500,000) (250,000) (250,000) (250,000) Working Capital Reserve - - 930,184 - - - Total General Fund Sources $ 19,269,131 $ 18,622,676 $ 23,251,862 $ 21,031,124 $ 22,864,970 $ 21,434,534 Carryforward Reserve Environmental Reserve CITY OF SARATOGA FINANCIAL SUMMARIES 97 GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2016/17 GENERAL FUND EXPENDITURES BY DEPARTMENT 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 % of Departments Actuals Actuals Actuals Adjusted Estimated Adopted Total Council & Commissions 134,016$ 154,129$ 160,023$ 352,464$ 309,633$ 255,895$ 1.3% City Manager's Department 821,984 804,146 940,226 908,408 851,244 1,069,253 5.4% Administrative Services 1,168,605 1,236,490 1,290,046 1,353,506 1,352,648 1,422,302 7.2% Community Development 2,046,853 2,181,710 2,086,680 2,350,507 2,192,859 2,496,495 12.7% Public Works 4,542,221 4,833,962 4,948,538 5,143,613 5,059,055 5,427,362 27.5% Recreation & Facilities 1,318,493 1,383,277 1,363,426 1,586,948 1,474,777 1,609,451 8.2% Public Safety 4,391,844 4,491,384 4,859,379 5,230,431 5,225,854 5,451,666 27.7% Non-Departmental 1,143,919 1,052,480 4,234,030 1,940,375 1,732,899 1,976,971 10.0% 15,567,935$ 16,137,576$ 19,882,349$ 18,866,252$ 18,198,969$ 19,709,394$ 100.0% Fund Transfers Out 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 GF Expenditures & Transfers 16,752,435$ 16,518,456$ 21,548,447$ 20,883,908$ 20,216,625$ 21,120,042$ Total General Fund Exp CITY OF SARATOGA FINANCIAL SUMMARIES 98 GENERAL FUND REVENUES BY CATEGORY FY 2016/17 GENERAL FUND REVENUES BY CATEGORY FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 % of Revenue Category Actuals Actuals Actuals Adjusted Estimated Adopted Total Property Tax 8,966,396$ 9,526,189$ 10,436,621$ 10,475,350$ 11,301,176$ 11,331,350$ 56.0% Sales Tax 1,051,121 941,350 1,224,427 1,060,000 1,189,398 1,125,000 5.6% Transient Occupancy Tax 228,199 257,010 309,618 310,000 319,109 315,000 1.6% Business & Other Taxes 541,158 565,261 556,654 575,000 578,652 605,000 3.0% Franchise Fee Tax 2,083,704 2,112,596 2,234,068 2,186,638 2,235,514 2,242,113 11.1% Intergovernmental 416,486 466,424 586,596 488,542 547,075 437,000 2.2% Fees, Licenses & Permits 1,591,517 1,524,041 1,409,199 1,465,900 1,544,844 1,486,680 7.4% Charge for Services 1,744,112 1,942,388 1,789,649 1,845,234 2,079,939 1,849,127 9.1% Interest 28,670 40,003 45,229 43,000 79,341 55,000 0.3% Rental Income 465,460 440,287 474,750 485,602 527,596 497,714 2.5% Other Sources 519,164 452,817 452,734 281,402 379,952 279,902 1.4% Total Revenues 17,635,987$ 18,268,366$ 19,519,545$ 19,216,668$ 20,782,596$ 20,223,886$ 100.0% Fund Transfers In 106,000 167,050 - - 267,918 - Total Revenues & Transfers 17,741,987$ 18,435,416$ 19,519,545$ 19,216,668$ 21,050,514$ 20,223,886$ Use of Fund Balance Reserves: Carryforward Reserve 247,200 73,101 118,788 176,560 176,560 - Development Reserve - - - 60,000 60,000 - Environmental Reserve 50,000 50,000 50,000 50,000 50,000 50,000 CIP Reserve 1,504,944 280,880 1,633,345 1,777,896 1,777,896 1,410,648 CY CIP Reserve - - 500,000 - - - Hillside Reserve (75,000) - - - - - Compensated Absences (200,000) (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 19,269,131 18,622,676 23,251,862 21,031,124 22,864,970 21,434,534 CITY OF SARATOGA FINANCIAL SUMMARIES 99 GENERAL FUND EXPENDITURES BY CATEGORY FY 2016/17 GENERAL FUND EXPENDITURES BY CATEGORY FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 % of Expenditure Category Actuals Actuals Actuals Adjusted Estimated Adopted Total Salary & Benefits 6,409,105$ 6,408,421$ 6,484,653$ 7,014,983 6,814,803 7,592,718 38.5% CalPERS UAL Payment - - 3,294,619 500,000 500,000 500,000 2.5% Materials & Supplies 188,965 236,925 195,949 305,220 207,649 298,810 1.5% Fees & Charges 738,596 759,799 732,387 923,455 835,636 890,393 4.5% Consultant & Contract Services 1,883,085 2,054,371 1,966,367 2,293,729 2,115,325 2,321,922 11.8% Sheriff Services 4,153,654 4,225,024 4,611,024 4,973,080 4,973,080 5,176,173 26.3% Meetings, Events & Training 38,946 80,468 73,668 128,800 59,431 140,525 0.7% Community Grants & Events 122,007 169,725 162,516 229,185 202,525 243,381 1.2% Operating Grant Expenditures - - - 42,042 34,762 - 0.0% Fixed Assets - - 35,343 - - 10,000 0.1% Internal Services Charges 2,033,577 2,202,844 2,325,823 2,455,758 2,455,758 2,535,472 12.9% Total Expenditures 15,567,935$ 16,137,576$ 19,882,349$ 18,866,252$ 18,198,969$ 19,709,394$ 100.0% Fund Transfers Out 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 Total Expenditures & Transfers 16,752,435$ 16,518,456$ 21,548,447$ 20,883,908$ 20,216,625$ 21,120,042$ CITY OF SARATOGA FINANCIAL SUMMARIES 100 GENERAL FUND TAX REVENUES CITIES OF SANTA CLARA COUNTY – TAX REVENUES PER CAPITA FY 20014/15* TAX REVENUES AND PER CAPITA *Most recent information available from neighboring cities City Population Amount Per capita Amount Per capita Amount Per capita Amount Per capita Campbell 41,993 11,240,729 268 13,915,291 331 4,091,923 97 662,787 16 Cupertino 60,550 15,067,000 249 18,288,000 302 4,510,000 74 1,600,000 26 Gilroy 52,413 11,248,288 215 15,858,911 303 1,501,837 29 622,760 12 Los Altos 30,036 17,479,883 582 2,942,764 98 2,450,487 82 453,201 15 Los Altos Hills 8,354 4,606,184 551 113,333 14 - - 223,369 27 Los Gatos 30,532 9,031,871 296 8,029,571 263 1,512,846 50 1,130,020 37 Milpitas 69,903 24,926,916 357 19,572,355 280 10,502,073 150 472,657 7 Monte Sereno 3,700 1,462,590 395 15,917 4 - - 36,644 10 Morgan Hill 41,779 9,833,512 235 8,467,396 203 2,062,260 49 183,857 4 Mountain View 77,914 35,173,321 451 19,773,384 254 6,559,072 84 257,706 3 Palo Alto 66,029 34,117,000 517 29,675,000 449 16,699,000 253 - - San Jose 1,016,000 247,258,000 243 180,407,000 178 36,980,000 36 47,431,000 47 Santa Clara 120,973 37,574,373 311 49,649,079 410 18,185,857 150 931,423 8 SARATOGA 30,887 10,436,621 338 1,224,427 40 309,618 10 357,597 12 Sunnyvale 148,028 54,940,570 371 31,218,980 211 14,137,069 96 1,845,883 12 Average 119,939 34,959,791 291 26,610,094 222 7,966,803 66 3,747,260 31 Property Tax Sales Tax Transient Occupancy Business License CITY OF SARATOGA FINANCIAL SUMMARIES 101 GENERAL FUND REVENUES 10 YEAR HISTORY AND PROJECTED KEY TAX REVENUES GENERAL FUND TAX REVENUE CHART NOTES: FY 2006/07 Property Tax Revenues – Large increase reflects the ongoing permanent addition of Property Tax revenues resulting from an increased allocation share per the State passed Tax Equity Allocation (TEA) Legislation. (Approximately $760,000 in FY 2006/07). FY 2015/16 Property Tax Revenues – 1st year of remaining Tax Equity Allocation (TEA) withholding to be returned to Saratoga. Over a five year span, 20% of the County’s higher ERAF withholding formula difference is returned to the City – until the City’s ERAF withholding formula is fully 100% assimilated. This results in an additional $130,000 of revenue in each of the five years, thereby increasing the growth trajectory above actual growth rates. GENERAL FUND TAX REVENUE HISTORY Summary of Change from Tax Revenues Prior Year 2006/07 Actuals 7,577,444$ 994,680$ 195,261$ 303,787$ 9,071,172 18.9% 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 Budgeted 11,331,350$ 1,125,000$ 315,000$ 355,000$ 13,126,350 (0.4%) Property Tax Sales Tax Occupancy Tax Business License TaxFiscal Year CITY OF SARATOGA FINANCIAL SUMMARIES 102 GENERAL FUND FUND BALANCE ACTIVITY Estimated Plus Less Sources Estimated 7/1/2016 Transfers Transfers (Uses) of 6/30/2017 General Fund Reserves: Balance Revenues In Expenditures Out Fund Balance Balance Restricted Environmental Services 313,182 - - - - (50,000) 263,182 Committed Hillside Stability 1,000,000 - - - - - 1,000,000 Assigned Capital Reserve 1,472,408 - - - - (1,410,648) 61,760 Facility Reserve 1,200,000 - - - - 500,000 1,700,000 Carryforwards - - - - - - - Unassigned Working Capital Reserve 1,000,000 - - - - - 1,000,000 Fiscal Stability Reserve 2,250,000 - - - - 250,000 2,500,000 Development Services 719,562 - - - - - 719,562 Compensated Absences 209,937 - - - - - 209,937 Other Unassigned 2,475,531 20,223,886 - (19,709,394) (1,410,648) 710,648 2,290,023 Total Fund Balance Reserves 10,640,620$ 20,223,886$ -$ (19,709,394)$ (1,410,648)$ -$ 9,744,463$ GENERAL FUND Reserve Activity includes: Carryforward Reserves reflects an estimate of prior year unspent 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 is adjusted at fiscal year end by interest earned on the reserve balance at LAIF rates. Council Policy caps the reserve at 20% of budgeted appropriations. Fiscal Stability Reserve of $1,500,000 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 includes estimated year-end fund balance not previously identified for a specific purpose, and is therefore available to buffer unplanned financial situations during the fiscal year. As year-end fund balance reflects an estimate, sound finanical practices suggest retaining a sufficient amount of undesignated fund balance to offset unexpected revenue shortfalls and operational expenditures. Environmental Reserve accounts for funding obligated for use in the Environmental program originally collected under the City's former solid waste agreement. 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 103 SCHEDULE OF INTERFUND TRANSFERS Estimated Estimated Budgeted Budgeted 2015/16 2015/16 2016/17 2016/17 Transfers In Transfers Out Transfers In Transfers Out General Funds General Fund 267,918 2,017,656 - 1,410,648 Special Revenue Funds Landscape & Lighting Districts - - - - Internal Service Funds Facility Furniture & Equipment Replacement 180,000 - - - Trust Funds Library Capital Projects - - - - KSAR - - - - Capital Project Funds Street Projects 2,450,555 1,443,419 1,095,000 - Parks & Trail Projects 378,380 240,620 99,750 24,750 Facility Projects 153,896 58,516 190,648 - Administrative Projects 329,462 - 167,394 117,394 Total Interfund Transfers 3,760,211$ 3,760,211$ 1,552,792$ 1,552,792$ 3. $267,918 to GF from closed CIP projects Fund Description FY 2015/16 Interfund Transfers In 2. $1,179,637 to CIP Projects from other CIP projects Transfers In of $3,760,211 is comprised of : 1. $2,017,656 to CIP from GF CIP Reserve FY 2016/17 Interfund Transfers In Transfer In of $1,552,792 is comprised of : 1. $1,552,792 to CIP projects: $1,095,000 to Streets $ 99,750 to Parks & Trails $ 190,648 to Facility Projects $ 167,394 to Admin & Tech Projects FY 2016/17 Interfund Transfers Out Transfers Out of $1,552,792 is comprised of: 1. $1,410,648 from GF to CIP projects 2. $142,144 from CIP to other CIP projects 4. $180,000 to FFE ISF from CIP Facility projects 5. $25,000 to LLD from CIP Administrative & Technology projects FY 2015/16 Interfund Transfers Out 2. $495,793 to other CIP projects 3. $216,085 to GF CIP Reserve 4. $180,000 to Internal Service funds 5. $25,000 to Special Revenue funds Transfers Out of $3,760,211 is comprised of: 1. $2,017,656 from GF Reserve to CIP projects CITY OF SARATOGA FINANCIAL SUMMARIES 104 TOTAL FUND BALANCE ACTIVITY FY 2016/17 Plus Plus Less Less Sources 6/30/2017 7/1/2016 Revenues &Transfers Exp & Transfers (Uses) of Estimated Balance Carryfwds In Carryfwds Out Fund Bal Balance General Fund Restricted Environmental Services 313,182 - - - - (50,000) 263,182 Committed Hillside Stability 1,000,000 - - - - - 1,000,000 Assigned Capital & Efficiency Reserve 1,472,408 - - - (1,410,648) 61,760 Facility Reserve 1,200,000 - - - - 500,000 1,700,000 Carryforwards - - - - - - - Unassigned Working Capital Reserve 1,000,000 - - - - - 1,000,000 Fiscal Stabilization Reserve 2,250,000 - - - - 250,000 2,500,000 Development Services 719,562 - - - - - 719,562 Compensated Absences 209,937 - - - - - 209,937 Other Unassigned 2,475,531 20,223,886 - (19,709,394) (1,410,648) 710,648 2,290,023 Total General Fund 10,640,620$ 20,223,886$ -$ (19,709,394)$ (1,410,648)$ -$ 9,744,464$ Special Revenue Funds Landscape & Lighting Districts 1,005,796 625,011 - (714,930) - - 915,878 - Total Special Revenue Funds 1,005,796$ 625,011$ -$ (714,930)$ -$ -$ 915,878$ Internal Service Funds Liability / Risk Management 376,488 387,577 - (436,050) - - 328,015 Workers Compensation 304,401 185,000 - (216,856) - - 272,545 Office Support Fund 96,172 62,000 - (73,450) - - 84,722 IT Services 274,223 531,500 - (602,565) - - 203,158 Vehicle & Equip Maintenance 165,949 275,000 - (259,033) - - 181,916 Facility Maintenance 370,717 929,000 - (900,766) - - 398,951 Vehicle & Equip Replacement 611,708 125,000 - (266,700) - - 470,008 IT Equipment Replacement 274,339 125,000 - (136,280) - - 263,059 Facility FFE Replacement 339,222 200,000 (246,544) - - 292,678 Total Internal Service Funds 2,813,219$ 2,820,077$ -$ (3,138,243)$ -$ -$ 2,495,052$ Debt Service Funds GO Bond Debt Service 922,952 801,300 - (847,960) - - 876,292 Total Debt Service Funds 922,952$ 801,300$ -$ (847,960)$ -$ -$ 876,292$ 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. 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. CITY OF SARATOGA FINANCIAL SUMMARIES 105 TOTAL FUND BALANCE ACTIVITY FY 2016/17 Plus Plus Less Less Source &6/30/2017 7/1/2016 Revenues &Transfers Expenditures &Transfers (Use) of Estimated Balance Carryforwards In Carryforwards Out Fund Bal Balance Capital Improvement Plan Funds Street Projects 2,720,317 7,931,794 1,095,000 (11,747,112) - - - Parks & Trails Projects 1,082,410 456,015 99,750 (1,495,960) (24,751) - 117,465 Facility Projects 245,639 190,627 190,648 (591,913) - - 35,000 Administrative Projects 667,699 130,000 167,394 (847,698) (117,394) - - Total Capital Improvement Funds 4,716,065$ 8,708,436$ 1,552,792$ (14,682,682)$ (142,145)$ -$ 152,465$ FUND BALANCE TOTALS 20,098,652$ 33,178,710$ 1,552,792$ (39,093,209)$ (1,552,793)$ -$ 14,184,151$ 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 106 FUND BALANCE RESERVES 5 YEAR COMPARATIVE HISTORY 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Actual Actual Actual Estimated Budgeted YE Balance YE Balance YE Balance YE Balance YE Balance General Fund Restricted Environmental Services 463,182 413,182 363,182 313,182 263,182 Committed Hillside Stability 675,000 992,934 1,000,000 1,000,000 1,000,000 Assigned Capital & Efficiency Reserve 418,714 1,928,915 1,657,896 1,472,408 61,760 Facility Reserve 300,000 600,000 900,000 1,200,000 1,700,000 Carryforwards 73,101 118,788 176,560 - - Unassigned Working Capital Reserve 2,923,096 2,930,184 2,007,545 1,000,000 1,000,000 Fiscal Stabilization Reserve 1,500,000 1,500,000 1,000,000 2,250,000 2,500,000 Development Services 667,233 705,459 713,891 719,562 719,562 Compensated Absences 207,268 223,846 208,167 209,937 209,937 Uncollected Deposits - - - - - Other Unassigned 2,691,081 2,422,326 1,779,490 2,475,531 2,290,023 Total General Fund Reserves 9,918,675 11,835,634 9,806,731 10,640,620 9,744,464 Special Revenue Funds Landscape & Lighting Districts 621,947 733,831 867,643 1,005,796 915,878 Total Special Revenue Funds 621,947 733,831 867,643 1,005,796 915,878 Internal Service Liability / Risk Management 230,059 297,825 291,264 376,488 328,015 Workers Compensation 293,720 281,642 314,525 304,401 272,545 Office Support Services 24,021 53,121 75,075 96,172 84,722 IT Services 281,284 262,069 260,322 274,223 203,158 Vehicle & Equipment Maintenance 10,427 36,349 115,564 165,949 181,916 Facility Maintenance 184,901 199,869 268,326 370,717 398,951 Vehicle & Equipment Replacement 442,089 508,880 649,498 611,708 470,008 IT Equipment Replacement 156,318 152,788 194,101 274,339 263,059 Facility FFE Replacment - - - 339,222 292,678 Total Internal Service Reserves 1,622,818 1,792,543 2,168,675 2,813,219 2,495,052 Debt Service 2001 Series Library GO Bonds 885,757 897,786 906,600 922,952 876,292 Total Debt Service 885,757 897,786 906,600 922,952 876,292 OPERATING BUDGET RESERVES 13,049,197$ 15,259,794$ 13,749,649$ 15,382,587$ 14,031,686$ Fund Balance Reserves CITY OF SARATOGA FINANCIAL SUMMARIES 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 2016/17 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 2.5% 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. 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Actual Actual Actual Estimated Budgeted YE Balance YE Balance YE Balance YE Balance YE Balance Capital Project Funds Street Project Funds 2,080,497 1,724,577 1,904,296 2,720,317 - Park & Trail Project Funds 887,941 1,028,874 1,238,992 1,082,410 117,465 Facility Improvement Funds 260,858 206,036 347,619 245,639 35,000 Administrative Project Funds 191,039 166,820 367,870 667,699 - Total Capital Projects Funds 3,420,335 3,126,307 3,858,777 4,716,065 152,465 TOTAL RESERVES 16,469,532$ 18,386,101$ 17,608,426$ 20,098,652$ 14,184,151$ Fund Balance Reserves CITY OF SARATOGA FINANCIAL SUMMARIES 108 DEPARTMENT REVENUES BY PROGRAM FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted Council & Commissions General Fund Programs: City Council 1,200$ 1,200$ 3,600$ 600$ 600$ 600$ City Commissions - - - - - - Total Council & Commissions 1,200$ 1,200$ 3,600$ 600$ 600$ 600$ City Manager's Department General Fund Programs: City Manager's Office 200 600 800 400 400 - City Clerk 2,036 25 134 - 1 - Public Information Office - - - - - - Total City Manager's Department 2,236$ 625$ 934$ 400$ 401$ -$ Finance & Administrative Services Department General Fund Programs: Finance 51,985 47,609 56,581 46,800 50,147 47,880 Human Resources - - - - - - Administrative Services - - - - - - Internal Service Funds: Office Support Services 67,086 65,028 68,183 62,000 65,703 62,000 Information Technology Services 400,257 403,488 430,803 480,000 481,485 531,500 IT Equipment Replacement 46,236 55,000 65,000 125,000 125,000 125,000 Total Finance & Admin Services 565,564$ 571,125$ 620,567$ 713,800$ 722,334$ 766,380$ Community Development General Fund Programs: Development Services 524,709 560,730 533,310 525,800 485,150 526,400 Advanced Planning 226,973 228,523 156,165 150,000 191,186 160,000 Code Compliance 6,155 7,650 10,725 5,750 9,875 7,500 Building & Inspection Services 1,425,946 1,423,032 1,394,913 1,520,100 1,572,319 1,602,650 Total Community Development 2,183,782$ 2,219,935$ 2,095,113$ 2,201,650$ 2,258,530$ 2,296,550$ Public Works Department General Fund Programs: General Engineering 151,388 117,702 218,070 90,250 182,716 100,250 Development Engineering 144,232 169,014 139,654 74,000 311,073 72,000 Environmental Services 203,204 190,487 191,790 188,638 196,386 187,113 Streets & Storm Drains 170,231 245,811 186,633 200,000 194,781 187,000 Parks & Landscape Maintenance 298,692 291,980 254,995 174,634 186,857 175,227 Internal Service Funds: Vehicle & Equipment Maintenance 215,000 250,000 300,000 275,000 275,003 275,000 Vehicle & Equipment Replacement 100,000 207,050 206,393 125,000 163,565 125,000 Special Revenue Fund: Landscape & Lighting Districts 483,087 521,307 566,483 585,867 599,827 625,011 Total Public Works Department 1,765,834$ 1,993,350$ 2,064,018$ 1,713,389$ 2,110,208$ 1,746,601$ CITY OF SARATOGA FINANCIAL SUMMARIES 109 DEPARTMENT REVENUES BY PROGRAM FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted Recreation & Facilities Department General Fund Programs: Recreation Services 641,904$ 662,212$ 603,570$ 700,100$ 627,245$ 630,400$ Teen Services 1,626 782 1,500 3,200 2,066 5,000 Facility Rentals 232,236 247,604 300,567 402,600 440,088 413,112 Internal Service Funds: Facility Maintenance 755,857 832,474 882,299 900,000 906,440 929,000 Facility FFE Replacement - - - 200,000 200,000 200,000 Total Recreation Department 1,631,622$ 1,743,071$ 1,787,937$ 2,205,900$ 2,175,839$ 2,177,512$ Public Safety General Fund Programs: Public Safety Services 681,706 434,748 460,576 386,025 431,560 382,525 Emergency Preparedness 847 12,276 20 - 175 - Total Public Safety 682,552$ 447,024$ 460,596$ 386,025$ 431,735$ 382,525$ Non-Departmental General Fund Programs: General Administration 12,869,472 13,601,382 15,000,920 14,742,771 15,897,465 15,725,829 Legal Services 1,248 25,000 20 - - - Community Grants - - - - - - Community Events - - 5,000 5,000 2,506 400 Internal Service Funds: Risk Management/Liability Ins 403,399 389,809 399,482 394,008 343,808 387,577 Workers Compensation Ins 244,453 217,433 217,567 185,000 185,000 185,000 Debt Service Funds 2001 Bond Debt Service Fund 892,253 901,539 898,774 846,300 901,362 801,300 Total Non-Departmental 14,410,824$ 15,135,163$ 16,521,764$ 16,173,079$ 17,330,140$ 17,100,106$ Capital Improvement Funds Capital Improvement Programs: Street Projects 2,558,053 1,489,006 1,771,339 8,129,073 1,206,299 7,931,794 Park & Trail Projects (57,245) 967,061 311,143 482,535 493,047 456,015 Facility Projects 113,410 131,590 38,580 201,007 40,371 190,627 Administrative & Technology 162,683 - 163,928 130,000 138,552 130,000 Total Capital Improvement Projects 2,776,901$ 2,587,657$ 2,284,991$ 8,942,615$ 1,878,270$ 8,708,436$ Operating Transfers In General Fund 106,000 167,050 - - 267,918 - FFE Replacement Fund - - - - 180,000 - Capital Projects - Streets 661,818 234,487 731,010 1,143,518 2,450,555 1,095,000 Capital Projects - Parks & Trails 593,852 119,877 443,445 360,818 378,380 99,750 Capital Projects - Facilities 324,500 100,000 472,653 333,896 153,896 190,648 Capital Projects - Administrative 85,000 163,673 120,000 325,000 329,462 167,394 Total Operating Transfers In 1,771,170$ 785,087$ 1,767,108$ 2,163,232$ 3,760,211$ 1,552,792$ Total Revenues and Transfers In 25,791,686$ 25,484,237$ 27,606,629$ 34,500,690$ 30,668,268$ 34,731,502$ CITY OF SARATOGA FINANCIAL SUMMARIES 110 DEPARTMENT EXPENDITURES BY PROGRAM FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted Council & Commissions General Fund Programs: City Council 104,116$ 124,780$ 129,132$ 307,458$ 278,794$ 210,983$ City Commissions 29,900 29,349 30,891 45,006 30,840 44,913 Total Council & Commissions 134,016$ 154,129$ 160,023$ 352,464$ 309,633$ 255,895$ City Manager's Department General Fund Programs: City Manager's Office 498,730 500,476 569,824 533,817 527,923 451,020 City Clerk 323,254 303,670 370,402 374,591 323,321 438,418 Public Information Office - - - - - 179,815 Total City Manager's Department 821,984$ 804,146$ 940,226$ 908,408$ 851,244$ 1,069,253$ Administrative Services Department General Fund Programs: Finance Services 839,510 899,080 778,447 791,676 797,281 827,378 Human Resources 329,095 337,410 325,218 338,075 332,482 343,037 Administrative Services - - 186,382 223,755 222,885 251,887 Internal Service Funds: Office Support Services 54,285 35,928 46,229 73,250 44,606 73,450 Information Technology Service 375,674 422,703 432,550 530,066 467,583 602,565 IT Equipment Replacement 46,678 58,530 23,687 108,400 44,762 136,280 Total Administrative Services 1,645,242$ 1,753,651 1,792,513 2,065,222 1,909,600 2,234,597 Community Development General Fund Programs: Development Services 925,009 955,477 909,462 967,242 933,024 929,692 Advanced Planning 115,740 254,409 113,311 173,230 119,583 167,090 Code Compliance 104,799 52,643 127,653 187,906 161,859 222,530 Building & Inspection Services 901,305 919,181 936,255 1,022,129 978,393 1,177,182 Total Community Development 2,046,853$ 2,181,710$ 2,086,680$ 2,350,507$ 2,192,859$ 2,496,495$ Public Works Department General Fund Programs: General Engineering 476,908 502,680 532,614 535,976 518,312 571,603 Development Engineering 205,693 213,150 194,320 229,280 227,645 233,692 Environmental Services 619,024 643,314 615,342 765,131 665,655 769,289 Streets & Storm Drains 1,284,436 1,381,240 1,454,269 1,430,236 1,447,110 1,593,030 Parks & Landscape Maintenance 1,956,160 2,093,578 2,151,993 2,182,990 2,200,334 2,259,748 Internal Service Funds: Vehicle & Equip Maintenance 227,604 224,078 220,785 256,346 224,618 259,033 Vehicle & Equip Replacement 95,000 140,258 65,775 204,500 201,355 266,700 Special Revenue Funds: Landscape & Lighting Districts 423,644 409,418 432,671 650,800 461,679 714,930 Total Public Works Department 5,288,469$ 5,607,716$ 5,667,769$ 6,255,259$ 5,946,707$ 6,668,025$ CITY OF SARATOGA FINANCIAL SUMMARIES 111 DEPARTMENT EXPENDITURES BY PROGRAM FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2015/16 FY 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted Recreation & Facilities Department General Fund Programs: Recreation Services 938,742$ 961,244$ 940,097$ 1,071,231$ 1,017,682$ 1,075,400$ Teen Services 67,955 57,836 47,073 52,915 53,228 52,803 Facility Rentals 311,796 364,197 376,256 462,802 403,867 481,248 Internal Service Funds: Facility Maintenance 771,882 817,506 813,842 879,629 804,049 900,766 Facility FFE Replacement - - - 169,000 40,778 246,544 Total Recreation Department 2,090,375 2,200,783 2,177,268 2,635,577 2,319,604 2,756,760 Public Safety General Fund Programs: Public Safety Services 4,328,818 4,411,156 4,792,104 5,158,994 5,161,618 5,380,500 Emergency Preparedness 63,026 80,227 67,275 71,437 64,236 71,166 Total Public Safety 4,391,844 4,491,384 4,859,379 5,230,431 5,225,854 5,451,666 Non-Departmental General Fund Programs: General Administration 721,170 492,236 3,783,847 1,363,390 1,205,042 1,360,789 Legal Services 300,743 390,518 287,667 347,800 325,331 372,800 Community Grants 103,717 147,506 135,061 172,390 147,755 158,031 Community Events 18,290 22,219 27,455 56,795 54,770 85,350 Internal Service Funds: Liability / Risk Management 308,096 336,743 296,590 393,913 258,585 436,050 Workers Compensation 182,700 229,510 184,683 214,555 195,124 216,856 Debt Service Fund: 2001 Bond Debt Service Fund 868,910 889,510 889,960 885,085 885,010 847,960 Total Non-Departmental 2,503,626 2,508,243 5,605,263 3,433,928 3,071,617 3,477,837 Capital Improvement Program Capital Improvement Funds: Street Projects 2,832,190 1,853,714 11,097,130 1,397,415 11,747,112 Park & Trail Projects 290,278 886,168 544,470 1,910,912 787,389 1,495,960 Facility Projects 670,761 286,412 369,650 847,521 237,731 591,913 Administrative Projects 186,044 69,220 42,878 782,869 168,186 847,698 Total Capital Improvement Projects 3,979,272 3,095,514 3,279,628 14,638,433 2,590,721 14,682,682 Operating Transfers Out General Fund 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 Capital Projects - Streets 572,818 225,698 61,010 79,758 1,443,419 - Capital Projects - Parks & Trails 13,852 59,837 - 65,818 240,620 24,750 Capital Projects - Facilities - - - - 58,516 - Capital Projects - Administrative - 118,672 40,000 - - 117,394 Total Operating Transfers Out 1,771,170 785,087 1,706,098 2,163,232 3,760,211 1,552,792 Total Expenditures &Transfers Out 24,672,850 23,582,362 28,274,848 40,033,461 28,178,050 40,646,001 CITY OF SARATOGA FINANCIAL SUMMARIES 112 CITY OF SARATOGA FINANCIAL SUMMARIES 113 STAFFING INFORMATION CITY OF SARATOGA FINANCIAL SUMMARIES 114 SUMMARY OF EMPLOYEE SALARY & BENEFITS The City of Saratoga’s total salary and benefit expenditures are budgeted at $8.5 million dollars in FY 2016/17, representing approximately 21.3% of total budgeted expenditures. Approximately $7.6 million or 89.4% of labor costs reside in the General Fund and represent 38.5% 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, pension cost increases, and insurance premium increases resulted in a large increase in labor costs. The increases were offset in part by turnover in 3 positions in the Development Department, and the subsequent lower wages and pension tiers for the new employees. Organizational Changes Another change for the Development Department will occur in FY 2016/17. For a number of years, both Planning and Building staff have shared various code compliance duties. This arrangement worked fine during the recession as planning and building activity had decreased and staff could take on additional duties. However, with development activity increasing over the last few years, the lower priority code compliance work was delayed or put off indefinitely. And with more construction, there was an added level of code related complaints. Council requested staff address the issue and provided funding for some contract code enforcement services during FY 2015/16 while staff worked internally to develop a work program and assess the options. Options were brought to Council at the Budget Study Session, and Council recognized the desired level of service to respond to code matters required the hiring of a full- time Code Compliance Officer position. The FY 2016/17 budget includes salary & benefit funding for this purpose. The remaining staff positions remained stable. With ever-increasing labor costs, City services are expected to remain at current levels, with staff levels managed closely to ensure operations remain sustainable. 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 much higher level of police service, and with a cost-effective service structure, 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 a high level of expertise, equipment, and communication resources integrated into the smaller city service level on a day-to-day basis. The City’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, the City’s employee benefit structure remained at a sustainable 2% @55 pension plan. This lower benefit plan has and will continue to provide significant labor costs savings to the City in future years. In other cities, the enhanced plan costs will increase in cost to almost double the City’s standard plan. Additionally, the City 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 number of employee layoffs and furlough days, they were minimal in comparison to some other cities, and residents were provided a mostly consistent level of services throughout FYs 2009/10 – 2012/13. 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. And subsequent State legislation known as PEPRA reduced retirement benefits for future employees not yet a member of the CalPERS pension plan system. New City employees fall under reduced pension plan benefits. ‘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 CalPERS enrollees hired after January 1, 2013) fall into a 2% @62 pension plan third tier. The annual savings equals the difference between the pool-specific rates times the respective second and third tier payroll. Annual saving from implementing these new tiers will be small at first, although savings are expected to increase up to $300,000 per year in about 10 years. CITY OF SARATOGA FINANCIAL SUMMARIES 115 The 2015 MOU negotiations focused on reducing long-term employee medical benefits and increasing new employee medical benefits, to come to a standardized level of medical benefits for all employees. Medical benefits now provide a cost sharing arrangement so that employees pay for 50% of the medical insurance premium growth into the future. Salary and budget 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 for 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. Most staff positions are at top step, and health insurance benefits are budgeted at the employee’s current status (Single/Double/Family) 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 at 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 in January 2016, the Saratoga Management Association, representing the four Department Directors, disbanded and are now classified as unrepresented, along with the City Clerk/Assistant to the City Manager, the Finance and HR Managers, the HR Technician, and the two Public 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 33 full and part-time 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 (un-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 upon the annual average for the 12 month period of 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 all 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 will increase by 50% of the average medical premium increase in future years, and employees must pay the remainder of the insurance premium. 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. CITY OF SARATOGA FINANCIAL SUMMARIES 116 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 employee pension plan benefit plan to employees. As the City has fewer than 100 employees, the City is part of a risk pool rather than a stand-alone plan. All city benefitted employees fall into the ‘Miscellaneous Employees’ pension pool. Public safety services are contracted through Santa Clara County Sheriff’s Office and their personnel belong to the County. Council Members have the option to join the City’s CalPERS pension plan, with three of the five currently electing to do so. 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 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% @62” defined benefit plan (Tier 3). A couple of different plan options were provided for new Public Safety members. ‘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 the present time, the majority of City of Saratoga employees and Council Members fall into the Tier 1, 2% @55 risk pool plan. As of July 1st, 2016, the plan breakdown is: 43 in Tier 1 (74.1%), 10 in Tier 2 (17.2%), and 5 in Tier 3 (8.6%). This ratio will change each year 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 will be determined each year through an actuarial valuation, with the employee responsible for approximately 50% of the cost. While the employer portion of the PERS normal cost has increased slightly, the employee contribution has remained constant at 6.5%. A history of recent Saratoga’s Employer Contribution Rates for the various risk pools are shown in the table below. 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. 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 (projected) 9.6% 7.8% 6.9% CITY OF SARATOGA FINANCIAL SUMMARIES 117 Actuarial Assumptions - 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 employee FTEs and employee wages, and impacts from other agencies in the benefit plan pool are all contributing factors in the calculation. Since 2003, the established CalPERS actuarial assumption held was the value of its stock, bonds and other holdings would increase by 7.75% a year on average. And in fact, CalPERS annualized Investment Rate of Return (IRR) had averaged slightly higher than the 7.75% target – until the economic downturn began in 2008. Since then, with returns heavily diminished, CalPERS staff has repeatedly requested the Investment Rate of Return be adjusted downward. In March 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) the rate increased by only .6%, and in the second year, by .73%. Saratoga’s increases were minimal most due to having a lower benefit plan. Unfortunately, CalPERS staff believes this IRR rate decrease is insufficient, and continued to ask for a further decrease down to 7.25% In FY 2015/16, the CalPERS Board agreed to lower the rate again, but over a long term plan that allow very small decreases only in positive investment years. Rate Smoothing Policies – The severity of the economic downturn negatively 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. Additionally, the impact from rolling the smoothing and amortization periods would lead to unknown rate peaks and a lack of transparency. With the 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 now employs 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 will 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. The adoption of the new method will impact employer contribution rates beginning in FY 2015/16. Along with this actuarial modification, CalPERS decided to separate pension costs for current year liabilities from costs related to actuarial assumption changes for prior year liabilities, known as the UAL. This change will provide better rate stability, and payment option for Cities. Actuarial Assumptions – As part of CalPERS’ ongoing actuarial analysis, the various demographic assumptions are reassessed on a rotating basis. The update review conducted in 2013 revealed mortality and retirement age factors changed considerably, with impacts possibly impacting payroll by as high as 2 – 4% of payroll. The impact to Saratoga is minimal due to the City’s participation in the lower-cost 2% @55 pension plan. The recommended update changes were adopted by CalPERS in February 2014, and are reflected in the very small increase seen in the FY 2016/17 rates. Even though the economic downturn and demographic update negatively impacted investment returns, the “Miscellaneous 2% at 55 Risk Pool” was impacted less because the plan design was based on actuarially sound principles and experience data. The other enhanced plans, such as (2.5@55, 2.7@55 for miscellaneous, 3%@50 or 55 for Public Safety) were built based on short-term assumptions, which were estimated – not realized, and ultimately proved to be fiscally unsustainable. Those plans are expected to experience much larger PERS rate increases in the coming years. Under PEPRA, the higher plan benefits will be phased out as 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. Because the City has taken measures by paying down the Unfunded Liability and standardizing the annual UAL payment at an accelerated payment level, the UAL will be paid off sooner, and the susceptibility to rate volatility will be decreased in future years. This proactive fiscally responsible approach will allow the City to address economic impacts during inevitable future economic downturns, and has contributed toward the City’s efforts to operate under a financially sustainable strategy. CITY OF SARATOGA FINANCIAL SUMMARIES 118 PEMHCA Section 22892 of the Public Employees’ Medical and Hospital Care Act (PEMHCA), establishes contract agencies minimum monthly health premium contribution for their participating active membership. The employer contribution is adjusted annually by the board to reflect any changes in the medical care component of the CPI-U. The minimum employer contribution is $125 for calendar year 2016, and $128 for calendar year 2017. The City includes this amount in the budget as an ongoing retiree cost, which currently amounts to $27,324 per year for an estimated 18 participating retirees. CITY OF SARATOGA FINANCIAL SUMMARIES 119 TOTAL FUNDED POSITIONS BY DEPARTMENT 2012/13 2013/14 2014/15 2015/16 2016/17 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 Exec Assistant to CM / Deputy City Clerk 1.00 1.00 1.00 1.00 1.00 City Clerk/Assistant to the City Manager 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 4.00 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 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 Information Technology Administrator 1.00 1.00 1.00 1.00 1.00 Information Technology Technician - 1.00 1.00 1.00 1.00 TOTAL FTE's 6.90 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 1.00 2.00 Planner I/II 2.00 2.00 2.00 2.00 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 Building Official 1.00 - - - - Sr. Building Inspector/Plan Checker - 1.00 1.00 1.00 1.00 Building Inspector 2.00 2.00 2.00 2.00 2.00 Permit Technician - 1.00 1.00 1.00 1.00 Office Specialist III 2.00 2.00 2.00 2.00 2.00 Code Compliance Officer - - - - 1.00 TOTAL FTE's 11.00 12.00 12.00 12.00 13.00 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 1.00 Administrative Analyst I/II 0.90 1.00 0.90 0.90 0.90 Office Specialist II/III 1.75 1.75 1.75 1.75 1.75 Parks Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Lead 1.00 1.00 1.00 2.00 2.00 Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III 6.00 6.00 6.00 5.00 5.00 Street Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Street Maintenance Lead 1.00 2.00 2.00 2.00 2.00 Street Maintenance Specialist 1.00 - - - - Street Maintenance Worker I/II/III 4.00 4.00 4.00 4.00 4.00 TOTAL FTE's 20.65 20.75 20.65 20.65 20.65 CITY OF SARATOGA FINANCIAL SUMMARIES 120 TOTAL FUNDED POSITIONS BY DEPARTMENT 2012/13 2013/14 2014/15 2015/16 2016/17 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 1.00 0.90 1.90 Recreation Coordinator 2.00 2.00 2.00 1.85 0.85 Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist II/III 1.00 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 2.00 1.00 1.00 TOTAL FTE's 9.60 9.60 9.60 8.35 8.35 TOTAL STAFF FTEs 52.15 56.00 55.90 54.65 55.65 2012/13 2013/14 2014/15 2015/16 2016/17 Funded Funded Funded Funded Funded City Manager's Department CMO Intern - 320 320 - - Executive Assistant (backfill)- 120 136 750 960 Temporary Pool Hours - 940 - - - Administrative Services Department Senior Accountant 1,200 200 - - - IT Technician 2,000 - - - - HR Technician 1,568 - - - - HR Intern - 320 320 - - Graphic Design Assistant - - - 150 - Community Development Department Office Specialist III 800 800 800 940 - Planning Intern 940 - 320 480 320 Project Manager - - - - 1,335 Public Works Department Engineering Inspectors 2,760 2,760 2,760 2,760 2,760 Maintenance Worker - - - 999 999 Engineering Intern - - - - 320 Recreation & Facilities Department Facility Attendents 1,500 1,500 1,750 1,900 1,900 Recreation Leaders 500 3,335 3,300 2,178 2,004 Graphic Design Assistant - - - 850 - Student Intern - - - 480 320 Asst Recreation Coordinator - - - - 1,000 TOTAL ANNUAL HOURS 11,268 10,295 9,706 11,487 11,918 Temporary Hours converted to FTEs 5.42 4.95 4.67 5.52 5.73 TOTAL FTE's 57.57 60.95 60.57 60.17 61.38 FUNDED HOURLY STAFFING BY DEPARTMENT CITY OF SARATOGA FINANCIAL SUMMARIES 121 STAFFING BY DEPARTMENT FIVE YEAR HISTORY Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 Funded Funded Funded Funded Funded City Manager's Department 4.00 4.00 4.00 4.00 4.00 Administrative Services 6.90 9.65 9.65 9.65 9.65 Community Development 11.00 12.00 12.00 12.00 13.00 Public Works Department 20.65 20.75 20.65 20.65 20.65 Recreation & Facilities Department 9.60 9.60 9.60 8.35 8.35 TOTAL STAFF BY DEPARTMENT 52.15 56.00 55.90 54.65 55.65 TOTAL STAFF BY DEPARTMENT CITY OF SARATOGA FINANCIAL SUMMARIES 122 STAFFING BY FUND FIVE YEAR HISTORY Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 Funded Funded Funded Funded Funded General Fund City Manager's Department 4.00 4.00 4.00 4.00 4.00 Administrative Services 5.70 7.35 7.35 7.35 7.35 Community Development 11.00 12.00 12.00 12.00 13.00 Public Works 19.95 20.05 19.95 19.95 19.95 Recreation & Facilities Department 5.70 5.65 5.65 5.20 5.20 Total General Fund FTEs 46.35 49.05 48.95 48.50 49.50 Internal Service Funds City Manager's Department - - - - - Administrative Services 1.20 2.30 2.30 2.30 2.30 Public Works 0.70 0.70 0.70 0.70 0.70 Recreation Department 3.90 3.95 3.95 3.15 3.15 Total Internal Service Funds 5.80 6.95 6.95 6.15 6.15 TOTAL FTE's 52.15 56.00 55.90 54.65 55.65 TOTAL DEPARTMENTAL STAFF BY FUND CITY OF SARATOGA FINANCIAL SUMMARIES 123 MAJOR REVENUE INFORMATION CITY OF SARATOGA FINANCIAL SUMMARIES 124 MAJOR REVENUE SOURCES FIVE YEAR HISTORY 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 types of revenues the City receives 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 of the analytical tools 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 broad macro trends and local-specific economic data for housing prices, market turnover, unemployment reports, and other related local, state, and national reports and legislation. Emerging 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 budgeted revenues for the upcoming fiscal year, and are adjusted throughout the process as new information becomes available. Overall, for FY 2016/17, the City of Saratoga’s Operating Budget revenues are projected to total $24.5 million, of which the majority ($20.2 million) of this revenue flows into the General Fund. Capital Budget Revenues and Transfers-In total $10.2 million, bringing total budgeted revenues to $34.6 million for the fiscal year. Outside of the General Fund, Operating Budget revenues consist primarily of Internal Service Funds service charges (approximately $2.8 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 revenues include all outstanding grant reimbursements 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 tracking method is to overstate both revenue and expenditure in the Capital 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 includes descriptions of the revenue, 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 budgeted 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 residents is allocated between the State, County, and local agencies that provide services based on residency. Saratoga, a minimum services city, has 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 purpose. CITY OF SARATOGA FINANCIAL SUMMARIES 125 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 which 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 will 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 will increase by an additional $130,000+ each year. Current Assumptions – During the economic recession, property values decreased. Valuation appeals streamed in, and the Assessor’s Office reassessed properties and lowered assessed valuations as appropriate. As the valuation backlog was addressed, lower property values were established, which resulted in decreased property tax revenues in FY 2010/11. The decrease in property values led to both an increase in foreclosures and a decrease in property sales. This in turn caused a significant drop in property transfer tax and supplemental tax revenues. The County was still lowering property values in FY 2011/12 when the housing market began to pick up. As housing prices were low, sales picked 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 2015/16 ended the year 8.28% higher than the prior year. This fast pace is expected to taper as the market slows with rapidly increasing prices, therefore the FY 2016/17 budgeted revenue is 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 8.75 cents paid on every dollar of taxable sales in the City. CITY OF SARATOGA FINANCIAL SUMMARIES 126 Under the Triple-Flip funding realignment of 2004, ¼ cent of the Sales Tax was pledged to pay for bonds, so the City’s 1 cent share was restructured to be ¾ Sales Tax, and ¼ temporarily received as Property Tax. As the restructuring was temporary, the revenue continued to be classified as Sales Tax. With the bond paid off in FY 2015/16, the Triple Flip ended and an accounting true-up provided a small revenue increase. FY 2016/17 budget projection eliminates this true-up bump. 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 and drug stores, and gas stations, and typically averages around $1.1 million per year. FY 2013/14 revenues is low as there was both a negative true up of prior year receipts and a late payment booked into the following fiscal year. In addition, FY 2014/15 reflects a positive correction of the overstated negative true-up, and a slight increase in Sales Tax receipts. FY 2015/16 reflects 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 with minimal retail, the City does not anticipate growth in this revenue stream in the future. 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 127 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. As the graph illustrates, this local revenue is closely aligned with and very reactive to the overall economy. The economic contraction which began back in FY 2008/09 resulted in a 30% downturn. TOT began to uptick slightly with the economy in FY 2010/11. In FY 2011/12, revenues had climbed back to pre-downturn era levels, and subsequent years have since shown a steady climb in line with the booming economy. Although budgeted conservatively, FY 2016/17 is expected to remain consistent with current levels due to good economic times, the addition of the Levi Stadium and its mega-size entertainment venue, and the close proximity to the very popular Mountain Winery venue. OTHER TAXES Other Taxes are comprised of three taxes: 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. In FY 2008/09, with the perception that there were many businesses 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 through assessments of two back years and the current year. This audit began just as the economic downturn was severely impacting development, therefore the additional revenue was offset by decreases in supplemental and Construction Tax. A sole subdivision project was responsible for slightly higher Construction Tax revenue in FY 2010/11, whereas an overall pick up in construction activity was responsible for growth in FY 2011/12. Continued growth in construction activity since then has steadily increased both Supplemental and Construction Tax revenues, and is expected to continue a slight increase into the near future. CITY OF SARATOGA FINANCIAL SUMMARIES 128 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 has continued through FY 2015/16. A slightly lower revenue amount is budgeted for FY 2016/17 as a conservative projection, and as no large projects are expected. This base level of construction activity is expected to continue into the near future as the housing market remains very 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 City offers high-demand 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. Recreation Fee revenue is volatile, reacting both to economic conditions and external competition. Contrary to the economic downturn, FY 2010/11 revenues increased. This was due to added classes from the relocation of a popular dance school’s program to the lower cost city facilities. In the following year, FY 2011/12 revenues saw a large decrease as a result of transitioning summer camps to a consultant contract structure. 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. Fierce summer camp competition has taken a toll on revenues over the last few years, however efforts are underway to grow recreation activity participation. FY 2016/17 revenue is expected to maintain the base level seen in the prior fiscal year. CITY OF SARATOGA FINANCIAL SUMMARIES 129 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 a new sport user fields at Prospect High School and West Valley College. A FY 2012/13 drop in revenue stems 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 are expected to continue in the future, which could further impact revenues. Sport user groups are also declining and leading to diminishing field rental fees. Room rentals are increasing slightly due to a couple of new rental arrangements. 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 specific purposes. Saratoga’s investment policy establishes a wide array of authorized and suitable investments in alignment with State government code; however the City’s ongoing practice is to restrict investments to the Local Agency Investment Fund (LAIF), a conservative and prudently managed investment vehicle. The City’s Interest earning had been a significant income source in the past, with earnings approaching $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. As a result, the City’s interest earnings fell quickly, and have remained at record lows ever since. Average cash balance and interest rates are the key factors in projecting budgeted interest income. While revenues have improved and cash balances increased, the interest rates have continued at rock-bottom levels, thereby only minimal change is projected for FY 2016/17 interest income. Interest rates are expected to return to normal levels eventually, however the climb back up is expected to progress at a very slow pace, meaning the forecasted trend is fairly flat CITY OF SARATOGA FINANCIAL SUMMARIES 130 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 are to be assessed a property tax levy over thirty years to fund the debt service (principal and interest payments) resulting from the bond issuance. The levy is assessed on property tax bills 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 rate was structured to yield a total levy amount approximately equal to the fiscal year’s debt service, however with rapidly rising property values, property tax receipts surpassed debt service payments each year, and the Debt Fund grew to exceed debt service payment requirements. Since FY 2009/10, the levy calculation was structured to assess slightly less than the debt service payment requirements to reduce property owner’s levies at a consistent level and thereby bring the fund balance closer to annual funding requirements. 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 lower annual payments in the remaining years to come; with the annual levy continuing to decrease further based on both lower payments and a reduction in the fund balance. LANDSCAPE & LIGHTING ASSESSMENTS An Assessment District represents a defined group of properties which, by majority vote of the property owners, elected to authorize the City to assess levies 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 28 Assessment Districts, and establishes more at residents request 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 for a hillside housing development for environmental purposes. This type of district is expected to increase with hillside property development as a result of environmental regulation requirements. CITY OF SARATOGA FINANCIAL SUMMARIES 131 District expenses are generally consistent, requiring only minor adjustments each year 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. The growth in the graph above reflects both rising assessments and the addition of more L&L Districts over the last several years. The anomaly of the slight dip in FY 2012/13 was due to a reduction in assessment for a number of districts which were more than adequately funded. In future years, revenues will continue to grow with utility and maintenance service increases and as districts are added. Council created a 50/50 Grant Match Program in FY 2014/15 to further entice neighborhoods to form assessment districts. This resulted in two new assessment districts so far. CAPITAL PROJECT REVENUES MOTOR VEHICLE FUEL TAX (GAS TAX) REVENUES The State of California imposes excise taxes on transportations fuels, which in turn is 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 all motor vehicle fuel tax funds allocated must be expended for the construction, improvements, and maintenance of public streets, which includes engineering and administrative costs incurred for the foregoing purposes. Gas Tax Revenues are derived from the 18 cents per gallon 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 gas prices rise, gas usage tends to go down. With the anticipation that gas prices will remain relatively low in the following years, coupled with the increasing number of electric and hybrid vehicles, as well as mileage increases in regular vehicles, gas tax revenues are expected to continue at a reduced level over the long term. In FY 2010/11, Proposition 53 created a permanent restructuring of gasoline tax allocations to include a separate State transportation funding known as “Prop 42 Traffic Congestion Relief (TCR)” into the Gas Tax revenue structure. FY 2012/13 reflects 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 State’s allocation formula reduced the City’s revenues in FY 2014/15. Due to significant gas price declines, the FY 2015/16 column reflects a sharp decrease in gas tax revenues, as does the budgeted 2016/17 fiscal year. The severe drop in Gas Tax revenues has affected both State and local agency’s ability to maintain streets. Coupled with the significantly reduced maintenance in recent years due to the economic downturn, declines in road conditions are widespread throughout the State. There is a great deal of concern and discussion around establishing a reliable and enhanced dedicated funding source for roadway maintenance. A number of state bills are in process that will either modify or revise the funding structure. As a result, at this point, the future revenue trend is unknown. CITY OF SARATOGA FINANCIAL SUMMARIES 132 CAPITAL GRANT REVENUES Grants are applied for and awarded from various Federal, State, and Local agencies, and occasionally, from a private donor. Grant awards are restricted for specific purposes and often require a percentage of matching 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, not all received and . Hence, budgeted capital project grants far exceed 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 2016/17. Quito Road Bridge Replacement, Highway 9 Phase 4 project, and a number of other grant funded projects are still in the engineering stage, and are expected to be completed over the next several years. CITY OF SARATOGA FINANCIAL SUMMARIES 133 LONG RANGE FINANCIAL FORECAST CITY OF SARATOGA FINANCIAL SUMMARIES 134 CITY OF SARATOGA GENERAL FUND FIVE YEAR FORECAST FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Actuals Actuals Actuals Budget Forecast Forecast Forecast Forecast Forecast TOTAL SOURCES Property Tax 9,526,189 10,436,622 11,301,176 11,331,350 12,008,248 12,485,900 12,977,800 13,362,400 13,614,900 Sales Tax 941,350 1,224,427 1,189,398 1,125,000 1,111,000 1,122,100 1,133,300 1,144,600 1,156,000 Franchise Tax 2,112,596 2,234,068 2,235,514 2,242,113 2,266,949 2,292,300 2,318,200 2,344,700 2,371,700 Other Taxes 822,271 866,272 897,761 920,000 937,100 954,500 968,200 982,200 996,400 Total Tax Revenues 13,402,406 14,761,388 15,623,849 15,618,463 16,323,297 16,854,800 17,397,500 17,833,900 18,139,000 Fees & Services 3,466,510 3,198,848 3,624,783 3,344,447 3,416,000 3,478,300 3,516,500 3,526,400 3,534,800 Other Operating Revenues 1,399,451 16,320,698 17,157,813 1,269,616 1,173,160 1,193,380 1,214,520 1,236,660 1,260,100 Total Operational Revenues 4,865,960 19,519,546 20,782,596 4,614,063 4,589,160 4,671,680 4,731,020 4,763,060 4,794,900 Transfers In 167,050 - 267,918 - - - - - - TOTAL REVENUES 18,435,416 19,519,546 21,050,514 20,232,526 20,912,457 21,526,480 22,128,520 22,596,960 22,933,900 Plus Use of FB Reserves 187,260 3,732,317 1,814,456 1,210,648 2,087,083 461,682 429,139 364,761 406,004 TOTAL SOURCES 18,622,676 23,251,863 22,864,970 21,443,174 22,999,539 21,988,162 22,557,659 22,961,721 23,339,904 TOTAL USES Salary & Benefits 6,408,421 6,484,653 6,814,802 7,592,717 7,811,394 8,044,823 8,285,325 8,533,312 8,788,463 UAL Payments - 3,294,619 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Operating Expenditures 7,526,311 7,777,256 8,428,407 9,081,204 9,171,672 9,552,586 9,806,411 10,211,388 10,478,629 Cost Allocation Charges 2,202,844 2,325,823 2,455,758 2,535,474 2,600,252 2,664,310 2,730,780 2,799,740 2,871,300 Total Operational Costs 16,137,576 19,882,351 18,198,967 19,709,395 20,083,318 20,761,719 21,322,516 22,044,440 22,638,392 Transfers Out 380,880 1,666,098 2,017,656 1,410,648 2,037,083 411,682 379,139 314,761 356,004 TOTAL EXPENDITURES 16,518,456 21,548,449 20,216,623 21,120,043 22,120,401 21,173,401 21,701,655 22,359,201 22,994,396 NET OPERATIONS 2,104,220 1,703,414 2,648,347 323,131 879,139 814,761 856,004 602,520 345,508 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Actuals Actuals Actuals Budget Forecast Forecast Forecast Forecast Forecast GENERAL FUND BALANCE RESERVES (at Year End) Other Unassigned 2,422,326 1,779,489 323,131 879,139 814,761 856,004 602,520 602,520 345,508 Operational Reserves 3,166,344 2,911,530 3,019,827 1,344,427 1,261,883 1,147,506 1,138,748 1,138,748 835,264 Economic Reserves 3,754,030 3,115,712 2,910,147 3,410,147 3,910,147 4,410,147 4,910,147 4,910,147 5,410,147 Emergency Reserves 2,492,934 2,000,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 TOTAL FUND BALANCE 11,835,634 9,806,731 9,753,105 9,133,713 9,486,791 9,913,656 10,151,415 10,151,415 10,090,919 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Past Three Years Actuals ~ 2016/17 Budget Year ~ and Five Year Forecast Fund Balance Total Sources Total Uses CITY OF SARATOGA FINANCIAL SUMMARIES 135 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 2016/17 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 that 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 due to ongoing assessed valuation increases from ownership changes, remodeling, and new construction. The rapid pace of increasing housing prices appeared to be near peak levels and showed signs of slowing down in 2015, which led to some uncertainty and economic jitters in the media, however 2016 housing sales reports show that nationwide, median prices continued to outpace inflation, up 5.7% from June 2015 to June 2016. With mortgage rates dipping to their lowest level in more than three years, home prices are expected to continue to increase another 5.3% by June 2017. With this strong economic climate, it is surprising that for the third year in a row, the October to October 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%. Clearly, the low CCPI is not reflective of Santa Clara County’s economy; but the State of California’s overall combined economic condition. Some economists claim the Bay Area is thriving in an economic technology bubble, and the rest of California reflects a truer view of the economy. With this in mind, and with Saratoga’s high value home market that has a median home value at more than $2.3 million in Mid-2016, conservative projections in this fast-paced growth setting restrict property tax revenue to a slower, but still healthy pace of 3% for the first few years, and 2% in the years after. Similarly, Property Tax In-Lieu-of-VLF is expected to increase about 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 negative true-up if payments were too CITY OF SARATOGA FINANCIAL SUMMARIES 136 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 out-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 the se last two years. Due to the unpredictability of this revenue, ERAF is not included in the forecast years. 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 on 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. Factoring these two significant changes into the forecast, FY 2016/17 revenues were decreased to set a new lower tax base. Future year estimates from the consultant reflect a “most likely” revenue growth in the 2% range 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 FY 2016/17. 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 four years, are what we expect to be a “peaking point” in FY 2015/16 due to the strong economy and multiple highly attended Levi Stadium events (Grateful Dead’s Final Tour, Monster Jam, Taylor Swift, Super Bowl 50, etc.). FY 2016/17 is expected to also be strong, but less successful without the Super Bowl, hence a slight reduction and very slow growth in the out years. And because we do not have tell-tell signs of a looming economic downturn, TOT revenue budget projections after FY 2016/17 are held flat, with a 1% growth rate to reflect flat projections with 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, but in the long view is creeping upward, therefore the forecast reflects a positive 1% growth rate in the out-years. The Supplemental Tax portion however has increased consistently since beginning the climb out of the recession in FY 2010/11. This revenue streams has a healthier 3% annual increase into the next two years, and 2% in later years. The larger increase is based on both building activity and assessed valuation increases that the tax is based on. Construction Tax – Represents a City enacted tax charged on additional square footage as part of a building permit fee. As revenue growth follows close to the same trend line as Supplemental Business License Tax, the forecast years are also forecast at 3% in the out-years. At this point, the strength of the economy is expected to maintain a strong level of building activity throughout the five forecasted years, with some slowdown in the later years. Therefore, revenue projections reflect a strong upward trend, with year over year growth of approximately 3% for the first three years, and dropping down to 2% in the fourth and fifth 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 such as Saratoga’s Solid Waste JPA dues and the Household Hazardous Waste program. Solid Waste revenue is expected to have limited growth as the program based fees should remain fairly flat, and refuse CITY OF SARATOGA FINANCIAL SUMMARIES 137 fee increases are expected to be minimal. Overall, Solid Waste Franchise Fees are forecast to increase at a slow 1% pace. On average, gas, electric, and water utility franchise fees have been fairly unpredictable from year to year. This is assumed to be due from reduced usage as citizens become more environmentally conscientious, and technology improvements reduce energy needs. On the other hand, demands continue to increase with a growing population and the ever increasing assortment of new gadgets. As a result, forecast years are 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 higher level of services provided. Revenues therefore, reflect a conservatively strong 3% growth trend in the out-years. Development Revenues – Planning & Building revenues have increased in line with the strengthening economy over the last few years. Now, after four years of recovery, development activity is considered steady. And, with interest rates holding at historic lows, we continue to see significant housing turnover – and with new owners, plans for construction activity. Taking a conservative approach, we are anticipating a couple of years of mild growth, and then a slowing of activity in year 3, to no growth in years 4, and 5. Each of the planning and building revenues are assessed individually, with the majority of the projections ranging from 0% to 2% annual growth. Recreation Fees – Over the last four years, Recreation revenues have decreased as external class competition increases. In addition, the loss of the long-tenured and popular jazzercise instructor is expected to affect revenues negatively in FY 2016/17. Staff revises class offerings on a consistent basis, always working to keep up with recreation clientele’s interests. Ongoing projections are reduced to current year revenue levels, with forecasted years increasing by minimal 0% to 1% changes. Rental Income – With the consolidation of cell phone service providers over the last few years, cell tower leases are dwindling and lease revenue has fallen. Forecasted years include the remaining lease providers with minimal 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. 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 a painfully slow climb back up. The daily yield is currently at .55 of 1% as of June 30, 2016. Reports indicate the Federal Reserve intends to maintain the very slow pace to offset the jittery economic fears that a recession is just around the corner. With this, forecasted interest finally reflects some minimal growth in the near term and future. General Fund Expenditure Assumptions Salary – Labor costs reflect the addition of a full-time Code Compliance Officer position as well as pay increases and performance adjustments. With a conservative and cautious approach, forecasted salary & benefit expenditures reflect the maximum MOU increase with pay step increases, and a zero vacancy factor. Open positions are typically backfilled with temporary staff until filled. Benefits – CalPERS pension rates have stabilized due to the separation between the normal rate and the Unfunded Accrued Liability (UAL), and the City’s policy to fund the UAL at a consistent (and higher than required) contribution level of $500,000 per year. Changes in employee makeup and actuarial assumptions impact normal rates slightly, but investment returns will affect the outstanding UAL and required payments to a larger degree. The result is that the rate stays fairly steady, and the City’s flat $500,000 payment will absorb the majority of investment impacts and changes from CalPERS’ actuarial methods and assumption factors. As a result, increases in forecast pension expenses are due to ongoing increases in salaries. Under the City’s new MOU agreements to share premium increases, health insurance costs will increase at a slower pace. In addition, only minimal growth is expected for the remaining benefits of disability and life insurance. CITY OF SARATOGA FINANCIAL SUMMARIES 138 Together, reduced premium contributions, the increase in employees switching to lower-cost health care, or the increase in employees opting for in-lieu benefits are expected to result in 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 generally 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 operating expenditure increases average around 2.8% in the out years with the anticipation of maintaining this higher 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. As a result of the County’s new pension reform measures in FY 2011/12, and turnover due to retirements, we began to see lower annual increases of around 2% - 4% for Sheriff‘s department wages and benefit costs. With an agreement to increase traffic safety service hours in FY 2014/15, contract costs were scheduled to increase approximately $295,000. However, with the end of the recession came a new MOU between the County and Sheriff Employees, and retroactive wage increases led to a higher than expected increase of $386,000 higher than the prior year. In FY 2015/16, a 6.5% wage increases raised contract costs by another $362,000, to a total of $4,973,000. Under the MOU, 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 2020/21 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 forecast projection reflects a stable financial situation under steady times, with sufficient funding being made available for internal service funding and asset replacement costs on an ongoing basis. Positive Net Operations in the out years shows a diminishing projection as conservative revenue estimates do not fully keep up with expenditure projections however, the five year net operation projection is positive, and the rate of increase in expenditures remain sustainable at this point in time. Better than projected Net Operations will result in increased Capital Project funding, or in expanded operational services, or in increased reserves, depending upon Council direction. 139 DEPARTMENTAL BUDGETS 140 CITY OF SARATOGA DEPARTMENTAL DIRECTORY 141 DEPARTMENTAL BUDGETS BY PROGRAM COUNCIL & COMMISSIONS Council & Commissions Overview ........................................................................................................... 145 1101 City Council .................................................................................................................................... 149 1201 City Commissions ........................................................................................................................... 153 CITY MANAGER’S DEPARTMENT City Manager’s Department Overview ...................................................................................................... 157 2101 City Manager’s Office..................................................................................................................... 163 2201 City Clerk ........................................................................................................................................ 167 2401 Public Information Office ............................................................................................................... 171 ADMINISTRATIVE SERVICES DEPARTMENT Administrative Services Department Overview ......................................................................................... 175 3101 Finance Services ............................................................................................................................. 181 3301 Human Resources ........................................................................................................................... 185 3401 Administrative Services .................................................................................................................. 189 Internal Service Funds 3102 Office Support Fund ........................................................................................................................ 193 3201 Information Technology Services ................................................................................................... 195 3202 IT Equipment Replacement Fund ................................................................................................... 199 COMMUNITY DEVELOPMENT DEPARTMENT Community Development Department Overview...................................................................................... 203 4101 Development Services ..................................................................................................................... 207 4102 Advanced Planning ......................................................................................................................... 211 4103 Code Compliance ........................................................................................................................... 215 4201 Building & Inspection Services ...................................................................................................... 219 CITY OF SARATOGA DEPARTMENTAL DIRECTORY 142 PUBLIC WORKS DEPARTMENT Public Works Department Overview ......................................................................................................... 223 5101 General Engineering........................................................................................................................ 229 5102 Development Engineering ............................................................................................................... 233 5103 Environmental Services .................................................................................................................. 237 5201 Streets & Storm Drains ................................................................................................................... 241 5301 Parks & Landscape Maintenance .................................................................................................... 245 Internal Service Funds 5202 Vehicle & Equipment Maintenance ................................................................................................ 249 5203 Vehicle & Equipment Replacement ................................................................................................ 253 Special Revenue Funds 5302 Landscape & Lighting Districts ...................................................................................................... 257 RECREATION & FACILITIES DEPARTMENT Recreation Department Overview .............................................................................................................. 261 6101 Recreation Services ......................................................................................................................... 267 6102 Teen Services .................................................................................................................................. 271 6201 Facility Rentals ............................................................................................................................... 275 Internal Service Funds 6202 Facility Maintenance ...................................................................................................................... 279 6203 Facility FFE Replacement ............................................................................................................... 283 PUBLIC SAFETY DEPARTMENT Public Safety Department Overview .......................................................................................................... 287 7101 Public Safety Services ..................................................................................................................... 291 7102 Emergency Preparedness ................................................................................................................ 297 NON-DEPARTMENTAL Non-Departmental Overview ..................................................................................................................... 301 8101 General Administration ................................................................................................................... 305 8201 Legal Services ................................................................................................................................. 307 8301 Community Grants .......................................................................................................................... 311 8302 Community Events .......................................................................................................................... 313 CITY OF SARATOGA DEPARTMENTAL DIRECTORY 143 NON-DEPARTMENTAL – CONTINUED Internal Service Funds 8401 Risk Management/Liability Insurance ............................................................................................ 317 8501 Workers Compensation Insurance .................................................................................................. 321 Debt Service Funds 8601 2001 Series GO Bond Debt Service Fund ....................................................................................... 325 CITY OF SARATOGA DEPARTMENTAL DIRECTORY 144 CITY OF SARATOGA ORGANIZATION CHART FISCAL YEAR 2016/17 FY 2016/17 FTE = 55.65 City AttorneyCity Manager Community Development Department 1.0 Community Development Director Facilities Division 1.0 Facility Maint.Manager 1.0 Facility Maint. Lead 1.0 Facility Maint. Worker .60 Facility Coordinator 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 1.0 Engineer .90 Administrative Analyst .75 Office Specialist Parks Division 1.0 Parks & Landscaping 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 Technician Lead 2.0 Accounting Technicians Information Technology Division 1.0 IT Manager 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 1.90 Recreation Supervisors .85 Recreation Coordinator 1.0 Office Specialist Streets and Fleet Division 1.0 Streets and Fleet Manager 2.0 Street Maint. Lead 4.0 Street Maint. Workers .50 Office Specialist Building Division 1.0 Sr. Building Inspector 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 Office 1.0 Admin Analyst .50 Executive Assistant Office of the City Clerk 1.0 City Clerk/Assistant to the City Manager .50 Deputy City Clerk CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 145 COUNCIL & COMMISSIONS DEPARTMENT 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 2016/17 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 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 Strategic Goal: Fiscal Stewardship: Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvement. CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 146 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  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 and make appointments that reflect the multicultural nature and diverse interests of the City’s residents  Promote health as a community value through health-related programs and policies  Strengthen partnerships with local cultural organizations and institutions  Honor cultural diversity by participation in multicultural events 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 CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 147 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 1,200 1,200 3,600 600 600 600 Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES 1,200$ 1,200$ 3,600$ 600$ 600$ 600$ EXPENDITURES Salaries and Benefits 27,119 32,419 29,517 29,916 29,917 29,917 Operating Expenditures Materials & Supplies 10,444 7,119 10,484 21,950 9,049 22,800 Fees & Charges 26,912 40,919 27,748 204,199 180,376 91,375 Consultant & Contract Services 10,700 7,320 9,359 6,141 6,141 7,000 Meetings, Events, & Training 13,861 18,879 23,582 27,500 21,392 38,950 Total Operating Expenditures 61,917 74,236 71,174 259,790 216,958 160,125 Fixed Assets - - - - - - Internal Service Charges 44,980 47,474 59,333 62,758 62,758 65,854 TOTAL EXPENDITURES 134,016$ 154,129$ 160,023$ 352,464$ 309,633$ 255,895$ 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND City Council 104,116$ 124,780$ 129,132$ 307,458$ 278,794$ 210,983$ City Commissions 29,900 29,349 30,891 45,006 30,840 44,913 TOTAL GENERAL FUND 134,016$ 154,129$ 160,023$ 352,464$ 309,633$ 255,895$ TOTAL EXPENDITURES 134,016$ 154,129$ 160,023$ 352,464$ 309,633$ 255,895$ DEPARTMENTAL EXPENDITURES - by Division GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 148 CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 149 CITY COUNCIL 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 Ad Hoc 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. 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 Valley Transportation Authority Board of Directors. BUDGET OVERVIEW Notable Budget Changes:  The large reduction in the Council’s budget is primarily due to a $126,000 decrease in the Council Discretionary funds due to Council’s use of the funds in FY 2015/16. Last year’s budget allocation included almost three years of funding after two prior year-end amounts were carried forward into the current year’s allocation, whereas this year’s amount reflects the $50,000 current year allocation.  Training budget funds were increased to align with the newly approved Council Expense Policy for training and travel expenditures.  Funding has been added to the budget to cover the costs associated with a public art installation that will be conducted through a collaboration between the City and the Montalvo Arts Center.  The FY 2016/17 budget includes consultant funding to facilitate the City Manager’s evaluation process. 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. CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 150 CITY COUNCIL 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 February 2016, the City Council authorized participation in the Silicon Valley Clean Energy Authority to launch the Community Choice Energy Program in Saratoga. Joining the authority required an initial contribution of $100,000 that will be reimbursed by the Authority within four years. The contribution was paid for from the Council Discretionary funds. Additional distributions include $1,099 for America in Bloom registration, $7,000 for a 60 th anniversary parade grant, $15,000 to Saratoga Adult Senior Council (SASCC) to fund an assessment of senior needs, and $40,000 was moved into the CIP to fund a transportation needs study. As a result, the City Council is not projected to have a carryover of discretionary funds leading into FY 2016/17. For many years, the City contributed a pro-rata share toward a legislative consultant services contract with Cupertino, Monte Sereno, and Los Altos Hills to regain the City’s full share of its Tax Equity Allocation (TEA). TEA is a special tax code passed by the California legislature to ensure that cities with low-or-no property tax rates prior to the passage of Proposition 13 in 1978 would receive at least 7% of the property taxes collected in their city. In FY 2014/15, the four cities decided to forego the services of a legislative consultant and attempt a different approach to pursue TEA funds. In the fall of 2015, the City, with the support of State Senator Jim Beall, Jr., was successful in convincing State law makers to restore Saratoga’s full share of local property tax revenues. As a result, legislative consultant services are not budgeted. Another notable change to the City Council Program is a modest increase to the City Council’s meetings, events, and training budget. The additional funding comes after an update to the City Council Expense Policy and direction from the City Council on training and travel fund allocations. As a result, the budget for FY 2016/17 will allow each member of the City Council to attend at least one conference within the State of California, as well as other specialized or local training opportunities that may come up during the fiscal year. Unique to the FY 2016/17 budget is the addition of funds for a public art installation. At the October 21, 2015 City Council Meeting, the Council established a Public Art Ad Hoc to work with Montalvo Arts Center to identify a work of art to display in a public location in the City. As a result of discussions with Montalvo Arts Center, the Public Art Ad Hoc recommended placement of a piece of artwork called PLACE by artist Steven Simon at Saratoga Library. PLACE is a steel plate bench comprised of 5 separate letters, spelling the word place. The bench is expected to be installed outside of the Library by September 1, 2016 for a period of 1 year. Funds have also been added to allow the Council to use a facilitator for the annual City Manager’s evaluation process. Hiring a consultant will help ensure that the consensus of the City Council and input of each Council Member is accounted for and communicated to the City Manager in a clear manner. CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 151 CITY COUNCIL FY 2016/17 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 – Encourage a greater sense of community among residents and increase civic engagement efforts by strengthening relationships between the City and residents, providing residents with opportunities for participation in local government, supporting community events, 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 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 1,200 1,200 3,600 600 600 600 TOTAL REVENUES 1,200$ 1,200$ 3,600$ 600$ 600$ 600$ EXPENDITURES Salaries and Benefits 13,554 18,854 16,599 16,352 16,353 16,353 Operating Expenditures Materials & Supplies 2,080 2,411 2,666 2,750 2,527 3,000 Fees & Charges 26,912 40,919 27,748 204,199 180,376 91,375 Consultant & Contract Services 10,700 7,320 9,359 6,141 6,141 7,000 Meetings,Events & Training 9,792 12,558 17,314 20,000 15,381 31,350 Total Operating Expenditures 49,484 63,207 57,088 233,090 204,425 132,725 Internal Service Charges 41,078 42,719 55,445 58,016 58,016 61,905 TOTAL EXPENDITURES 104,116$ 124,780$ 129,132$ 307,458$ 278,794$ 210,983$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 152 CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 153 CITY COMMISSIONS 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. CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 154 CITY COMMISSIONS Finance Committee – This standing Council Committee comprised of two Council members and 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. BUDGET OVERVIEW Notable Budget Changes:  Additional Funding was allocated for Parks and Recreation Commission event expenses. 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 associated 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. There are no major changes to the Commission section of the FY 2016/17 budget. A small amount of funding was added for Parks and Recreation Commission expenses, which will be primarily used for event-related expenses, such as the annual Summer Movie Nights. Notable FY 2016/17 budget funding includes the continuation of the Historic Preservation Commission (HPC) work plan items that were not completed in the prior fiscal year. The FY 2014/15 HPC budget included $2,000 for commissioner training, and $4,000 to obtain reconnaissance survey level Building, Structure and Object (BSO) records for properties already added to the Heritage Resource Inventory without a survey. An additional $6,000 was requested for Intensive level Department of Parks & Rec (DPR) surveys for five properties previously added to the City’s Landmark List based on 1980s information. Intensive surveys use the National Register criteria and must be conducted or confirmed by an appropriately qualified professional. As the work was not completed in FY 2015/16, funding was again budgeted for FY 2016/17. The Youth Commission budget was increased to $3,000 in FY 2015/16 to properly budget for costs associated with activities the Youth Commission is conducting, such as face painting and candy at the Witchy Walk-a-Bout, award prizes for the Walk One Week program, Hot Chocolate at the Tree Lighting Ceremony, and face painting and arts and craft stations at the Lunar New Year and St. Paddy’s Day events. Funding to provide the Youth Commissioners with a t-shirt, vest, or sweatshirt for these events is also included, as well as meeting food and attendance at an annual YAC Attack conference. CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 155 CITY COMMISSIONS KEY SERVICES  Provide specialized advice and assistance to Council  Broaden policy and decision making by providing additional forums for the public to provide input and testify at public hearings  Work with City staff in researching issues, collecting information, and providing recommendations to the Council 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits 13,564 13,564 12,918 13,564 13,564 13,564 Operating Expenditures Materials & Supplies 8,364 4,709 7,818 19,200 6,522 19,800 Meetings, Events & Training 4,069 6,321 6,268 7,500 6,012 7,600 Total Operating Expenditures 12,433 11,030 14,086 26,700 12,533 27,400 Fixed Assets - - - - - - Internal Service Charges 3,902 4,755 3,888 4,742 4,742 3,949 TOTAL EXPENDITURES 29,900$ 29,349$ 30,891$ 45,006$ 30,840$ 44,913$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA COUNCIL & COMMISSIONS DEPARTMENT 156 CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 157 CITY MANAGER’S DEPARTMENT The City Manager’s Department is comprised of the offices of the City Manager and City Clerk. 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, keeping 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 Office 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 the Brown Act  Represent the City interests and involvement in regional issues Council Strategic Goal: Fiscal Stewardship: Ensure fiscal responsibility and transparency, proactively seeking opportunities for improvement. CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 158 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 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 OF SARATOGA CITY MANAGER’S DEPARTMENT 159 BUDGET OVERVIEW Since the 2013/14 budget, funding for the City Manager’s front desk backup has been included in the budget. In FY 2015/16, the funding for front desk backup and temporary contract staff was increased. The City Clerk participated in the Santa Clara County and San Mateo County Management Talent Exchange Program from September to December 2015. As a result, temporary staff was needed to backfill the Deputy City Clerk/Executive Assistant to the City Manager position as the Deputy City Clerk filled the City Clerk position. Funding for temporary staff also appears in the FY 2016/17 budget to backfill staff as needed and to assist with special projects as the workload of the City Manager’s Office increases. As a result, staffing expenses contribute to an increase in City Manager’s Office expenditures in FY 2016/17. Starting this year, the City Manager’s Department budget includes a new section for the Public Information Office. Communication and outreach related expenses previously dispersed throughout the budget have been consolidated into this new section. With the City Council continuing to prioritize public outreach, the amount of funding dedicated to communications has also slightly increased. CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 160 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 736 625 934 400 401 - Other Sources 1,499 - - - - - TOTAL REVENUES 2,236$ 625$ 934$ 400$ 401$ -$ EXPENDITURES Salaries and Benefits 632,409 643,182 699,518 675,538 674,348 731,809 Operating Expenditures Materials & Supplies 4,080 6,812 13,982 15,520 15,355 24,090 Fees & Charges 57,277 16,439 74,350 26,800 8,249 101,140 Consultant & Contract Services 26,720 30,266 31,711 49,820 24,750 57,800 Meetings, Events & Training 5,405 8,098 9,304 16,950 4,762 18,700 Total Operating Expenditures 93,481 61,615 129,348 109,090 53,116 201,730 Fixed Assets - - - - - - Internal Service Charges 96,094 99,349 111,361 123,780 123,780 135,714 TOTAL EXPENDITURES 821,984$ 804,146$ 940,226$ 908,408$ 851,244$ 1,069,253$ 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND City Manager's Office 498,730$ 500,476$ 569,824 533,817 527,923 451,020 City Clerk 323,254 303,670 370,402 374,591 323,321 438,418 Public Information Office - - - - - 179,815 TOTAL GENERAL FUND 821,984$ 804,146$ 940,226$ 908,408$ 851,244$ 1,069,253$ TOTAL DEPT EXPENDITURES 821,984$ 804,146$ 940,226$ 908,408$ 851,244$ 1,069,253$ DEPARTMENTAL EXPENDITURES - by Division GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 161 City Manager 1.0 FTE City Clerk / Assistant to the CM 1.0 FTE Administrative Analyst 1.0 FTE Executive to the CM / Deputy City Clerk 1.0 FTE DEPARTMENTAL ORGANIZATION CHART Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded City Manager 1.00 1.00 1.00 1.00 1.00 City Clerk/Assistant to the City Manager 1.00 1.00 1.00 1.00 1.00 Exec Assistant to CM / Deputy 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 4.00 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded CMO Intern - 320 320 - - Executive Assistant (backfill)- 120 136 750 960 Temporary Pool Hours - 940 - - - TOTAL ANNUAL HOURS - 1,380 456 750 960 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff by Program Funded Funded Funded Funded Funded City Manager's Office 2.50 2.50 2.50 2.50 1.60 City Clerk 1.50 1.50 1.50 1.50 1.50 Public Information Office - - - - 0.90 TOTALS 4.00 4.00 4.00 4.00 4.00 CITY MANAGER'S DEPARTMENT STAFF CITY MANAGER'S DEPARTMENT STAFF - by Division CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 162 CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 163 CITY MANAGER’S OFFICE 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 coordinates with external agencies that provide Public Safety, Animal Control, Solid Waste/Recycling, Cable Television, and Emergency Preparedness services to the City. BUDGET OVERVIEW Notable Budget Changes:  Reduction in budgeted salaries and benefits with the shift of .90 FTE of the Administrative Analyst from the City Manager’s Office to the Public Information Office.  Budgeted decrease in operating expenditures due to shift of communication duty services and supplies to the new Public Information Office program. 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. The increasing expectations of social media and communication demands have also stretched staff time and resources. To better capture and plan workload communication resources are being moved to the separate Public Information Office program within the City Manager’s Department. This includes .90 FTE of the Administrative Analyst and some operational expenditures. During the recession, significant cuts were to areas like office supplies and training during the recession. In recent years, the funds in these areas have been slowly and modestly increased. In FY 2016/17, expenditures on these items have mostly leveled out. CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 164 CITY MANAGER’S OFFICE FY 2016/17 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 programs 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 means. 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. Code Compliance – In 2016, the City Manager’s Office took responsibility for the City’s Code Compliance Program. Since then, City Manager’s Office staff have been assessing the program and developing policies and procedures for code compliance with the goal of transitioning the program back to the Community Development Department after a full-time enforcement code compliance officer is hired in the first part of FY 2016/17. Smoke-Free Environments – During the City Council Retreat in 2016, the City Council directed staff to bring forward a variety of City Code changes that would increase the number of smoke-free environments in Saratoga. These changes will be introduced and implemented in FY 2016/17 and funded through a grant of more than $20,000 from the Santa Clara County Public Health Department. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 200 600 800 400 400 - TOTAL REVENUES 200$ 600$ 800$ 400$ 400$ -$ EXPENDITURES Salaries and Benefits 444,924 441,537 492,309 447,114 447,546 376,615 Operating Expenditures Materials & Supplies 3,510 4,434 11,055 11,800 12,659 7,250 Fees & Charges 3,559 3,909 4,025 9,195 5,735 5,900 Consultant & Contract Services - - - - - - Meetings, Events & Training 3,494 3,800 8,422 7,500 3,776 10,700 Total Operating Expenditures 10,563 12,142 23,502$ 28,495$ 22,169$ 23,850$ Fixed Assets - - - - - - Internal Service Charges 43,243 46,798 54,014 58,208 58,208 50,555 TOTAL EXPENDITURES 498,730$ 500,476$ 569,824$ 533,817$ 527,923$ 451,020$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 165 CITY MANAGER’S OFFICE 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded City Manager 1.00 1.00 1.00 1.00 1.00 City Clerk/Assistant to the City Manager - - - - - Exec Assistant to CM / Deputy City Clerk 0.50 0.50 0.50 0.50 0.50 Administrative Analyst I/II 1.00 1.00 1.00 1.00 0.10 TOTAL FTE'sOTAL 2.50 2.50 2.50 2.50 1.60 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded CMO Intern - 320 320 - - Executive Assistant (backfill)- 120 136 375 480 Temporary Pool Hours - 940 - - - TOTAL ANNUAL HOURS - 1,380 456 375 480 CITY MANAGER'S OFFICE STAFF CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 166 CITY MANAGER’S OFFICE 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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 the 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%98%98% b.Make professional development and leadership training opportunities available to Directors and City staff: Yes Yes Yes Yes Yes c.Professional Association Memberships:8 7 7 15 13 3. a.West Valley Mayor's and Managers Meetings:10 10 10 11 10 b.Santa Clara County City Manager's Association Meetings: 10 10 10 10 10 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.30 30 33 30 28Number of City Council Meetings Per Year: Ensure the City Council is fully informed about City matters and provide support to City’s elected leadership. Promote effectiveness of City operations through collaboration, open communications, efficient coordination, creative thinking, and professional development. Represent the City interests and stay apprised of local and regional issues. CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 167 CITY CLERK 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 is responsible for the timely indexing of resolutions, ordinances, and agreements, preparing City Council agendas and minutes, and maintaining 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 OVERVIEW Notable Budget Changes:  Additional funding provided for temporary staff to assist with special projects and backfill as needed  Election budget increased as this is an election year  Cost savings in video streaming services due to new agreement with Granicus 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 will increase as there will be an election for two positions on the City Council. During election years, the total expenditures in the City Clerk’s Office increase to cover the costs associated with consolidation of the election with the County of Santa Clara. CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 168 CITY CLERK FY 2016/17 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 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 536 25 134 - 1 - Charge for Services - - - - - - Other Sources 1,499 - - - - - TOTAL REVENUES 2,036$ 25$ 134$ -$ 1$ -$ EXPENDITURES Salaries and Benefits 187,485 201,645 207,209 228,424 226,802 234,586 Operating Expenditures Materials & Supplies 570 2,378 2,927 3,720 2,696 3,240 Fees & Charges 53,718 12,531 70,325 17,605 2,514 92,990 Consultant & Contract Services 26,720 30,266 31,711 49,820 24,750 31,600 Meetings, Events & Training 1,911 4,298 882 9,450 987 5,700 Total Operating Expenditures 82,918 49,473 105,846 80,595 30,947 133,530 Fixed Assets - - - - - - Internal Service Charges 52,851 52,551 57,347 65,572 65,572 70,302 TOTAL EXPENDITURES 323,254$ 303,670$ 370,402$ 374,591$ 323,321$ 438,418$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 169 CITY CLERK 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded City Manager - - - - - City Clerk/Assistant to the City Manager 1.00 1.00 1.00 1.00 1.00 Exec Assistant to CM / Deputy City Clerk 0.50 0.50 0.50 0.50 0.50 Administrative Analyst I/II - - - - - TOTAL FTE's 1.50 1.50 1.50 1.50 1.50 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded CMO Intern - - - - - Executive Assistant (backfill)- - - 375 480 TOTAL ANNUAL HOURS - - - 375 480 CITY CLERK STAFF CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 170 CITY CLERK 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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:9 8 5 3 15 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:Information Not Available Information Not Available 70%68%70% b.Percentage of Public Record Requests fulfilled within 10 days: Information Not Available Information Not Available Information Not Available 90%90% 4. a.15 18 13 21 12 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.25 29 30 29 28 2.34 62 52 49 47 3.71 80 70 81 75 4.14 10 12 12 10 Number of boxes of City records processed for disposal: Number of resolutions: Number of ordinances: Number of City Council minutes prepared per year: 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. 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. CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 171 PUBLIC INFORMATION OFFICE 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, quarterly newsletter, email services, videos, 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 OVERVIEW 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. CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 172 PUBLIC INFORMATION OFFICE FY 2016/17 WORKPLAN PRIORITIES  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.  City Video Program – The Public Information Office will oversee the production of multiple Council- and Planning Commission-hosted videos, which will be used 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. However, the City has used many of these pictures multiple times and in two years parts of the City have changed. Updated photos of the City would be used in outreach efforts, especially through social media, flyers, videos, and on the City’s updated website.  Communications Assessment – City staff continues to implement the recommendations outlined in Tripepi Smith’s 2015 Communications Assessment. Progress has been made on many of the recommendations, but additional action steps will be taken in Fiscal Year 2016/17 to strengthen the City’s communication effort. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits - - - - - - Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits - - - - - 120,608 Operating Expenditures Materials & Supplies - - - - - 13,600 Fees & Charges - - - - - 2,250 Consultant & Contract Services - - - - - 26,200 Meetings, Events & Training - - - - - 2,300 Total Operating Expenditures - - - - - 44,350 Fixed Assets - - - - - - Internal Service Charges - - - - - 14,857 TOTAL EXPENDITURES -$ -$ -$ -$ -$ 179,815$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 173 PUBLIC INFORMATION OFFICE 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded City Manager - - - - - City Clerk/Assistant to the City Manager - - - - - Exec Assistant to CM / Deputy City Clerk - - - - - Administrative Analyst I/II - - - - 0.90 TOTAL FTE's - - - - 0.90 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded CMO Intern - - - - - TOTAL ANNUAL HOURS - - - - - PUBLIC INFORMATION OFFICE STAFF CITY OF SARATOGA CITY MANAGER’S DEPARTMENT 174 PUBLIC INFORMATION OFFICE 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actual Actuals Budget 1. a.Produce City Newsletter, Saratogan:3 3 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:11 12 8 12 10 b.Accept applications for Community Event Grant Program: 15 23 12 17 15 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actual Actuals Budget 1.115 381 650 1194 1250 2.Information Not Available Information Not Available 24 31 27 3.Information Not Available Information Not Available 115 122 120 4.15 19 11 16 14 5.6 7 9 6 7 Number of Median Banner Program reservations: Number of Banners displayed through Median Banner Program: Number Community Event Grant Programs funded: Events hosted by City: City of Saratoga Facebook Page Fans: 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. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 175 ADMINISTRATIVE SERVICES DEPARTMENT 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 program along with the City’s two equipment usage and replacement funds: Information Technology Equipment Replacement; and Office Support Services. These Internal Service Fund programs are proportionately allocated for specific usage of equipment and supplies, and identifiable support basis for services to departments. 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, an d 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 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 CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 176 DEPARTMENT BUDGET SUMMARY Over a significant number of years, staffing in the Administrative Services Department utilized temporary staff. With ever-increasing technology, information, and support demands, the department’s workload expanded over time, and temporary staffing was needed on a constant basis. Due to the technical and confidential nature of the work, and the small size of the department resulting in broader workload scope, staff positions require long-term skill development and knowledge for optimal efficiency of mission-critical duties. Typically, temporary positions are more effective for assignments with limited scope and repetitive duties. When CalPERS began its strict enforcement of rules for use of retirees as temporary staff in January 2012, the department took another look at its ongoing long-term use of temporary positions, and the need for high level support and financial management backup. Subsequently, an organizational study was conducted on the department’s staffing structure. The study concluded a full-time regular Finance Manager level position was required to support the Finance Division (replacing two part-time Sr. Accountant retirees), and the HR and IT Technician positions filled by long-term temporary staff should be converted to regular benefited positions in each of the respective divisions to properly reflect the staffing support required. With Council approval, the organizational changes to add a full-time Finance Manager position to the Finance Division, a part-time (.75 FTE) HR Technician position to Human Resources, and a full time (1.0 FTE) IT Technician position to Information Technology staffing became effective with the FY 2013/14 budget. This change provided the resources to refocus the Department Director’s duties from direct fiscal oversight duties, to broader departmental administrative and technological improvements. 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 Division was added to the FY 2014/15 budget. A portion of the Director’s FTE 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. Another structural department change in recent years is the shift of budgeted employment law attorney services out of the Human Resources program and into the Legal Services program in the Non-Departmental section. This move was predicated on the concept of assigning budget responsibility and oversight for legal services to the City Attorney, and aligning all legal services within the Legal Services program. The remainder of the department’s General Fund operating budget is relatively steady. Finance and Human Resources functions are administrative and support oriented, 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 divisions, with costs holding steady at the departmental level. General Fund revenues are limited to Business License processing fees in the Finance program. The Human Resources and Administrative Services programs do not generate revenues. Internal Service Fund revenues are primarily comprised of service chargebacks to 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. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 177 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 41,810 41,618 45,085 41,800 44,850 42,880 Charge for Services - - - - - - Other Sources 10,175 5,991 11,496 5,000 5,297 5,000 Internal Service Charges - - - - - - TOTAL REVENUES 51,985$ 47,609$ 56,581$ 46,800$ 50,147$ 47,880$ EXPENDITURES Salaries and Benefits 897,688 952,948 1,045,287 1,072,320 1,077,571 1,109,160 Operating Expenditures Materials & Supplies 10,631 12,610 9,132 14,450 7,515 11,950 Fees & Charges 20,449 21,704 17,842 22,120 18,162 21,415 Consultants & Contract Services 82,262 66,389 52,824 61,300 69,377 80,500 Meetings, Events & Training 11,987 35,678 14,665 17,900 14,608 22,225 Total Operating Expenditures 125,328 136,381 94,463 115,770 109,661 136,090 Fixed Assets - - - - - - Internal Service Charges 145,589 147,161 150,297 165,416 165,416 177,052 TOTAL EXPENDITURES 1,168,605$ 1,236,490$ 1,290,047$ 1,353,506$ 1,352,648$ 1,422,302$ 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Financial Services 839,510 899,080 778,447 791,676 797,281 827,378 Human Resources 329,095 337,410 325,218 338,075 332,482 343,037 Administrative Services - - 186,382 223,755 222,885 251,887 TOTAL GENERAL FUND 1,168,605$ 1,236,490$ 1,290,047$ 1,353,506$ 1,352,648$ 1,422,302$ INTERNAL SERVICE FUNDS Office Support Services 54,285 35,928 46,229 73,250 44,606 73,450 Information Technology Services 375,674 422,703 432,550 530,066 467,583 602,565 IT Replacement Fund 46,678 58,530 23,687 108,400 44,762 136,280 TOTAL INTERNAL SERVICES 476,637$ 517,161$ 502,466$ 711,716$ 556,952$ 812,295$ TOTAL DEPT EXPENDITURES 1,645,242$ 1,753,651$ 1,792,513$ 2,065,222$ 1,909,600$ 2,234,597$ DEPARTMENTAL EXPENDITURES BY DIVISION / PROGRAM GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 178 DEPARTMENTAL ORG CHART Finance & Administrative Services Director 1.0 FTE Finance Manager 1.0 FTE Human Resources Manager 1.0 FTE IT Administrator 1.0 FTE Accountant .9 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 CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 179 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 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 Information Technology Administrator 1.00 1.00 1.00 1.00 1.00 Information Technology Technician - 1.00 1.00 1.00 1.00 TOTAL FTE's 6.80 9.45 9.45 9.45 9.45 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Hours Funded Funded Funded Funded Funded Sr. Accountant 1,200 200 - - - IT Technician 2,000 - - - - HR Technician 1,568 - - - - Student Intern - 320 320 - - Graphics Design Assistant - - - 150 - TOTAL ANNUAL HOURS 4,768 520 320 150 - 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff by Program Funded Funded Funded Funded Funded Finance 5.70 5.70 5.00 4.75 4.75 Human Resources 1.75 1.85 1.85 1.85 1.85 Administrative Services - - 0.70 0.95 0.95 Information Technology 2.10 2.10 2.10 2.10 2.10 TOTALS 9.55 9.65 9.65 9.65 9.65 ADMINISTRATIVE SERVICES DEPARTMENT STAFF ADMINISTRATIVE SERVICES DEPARTMENT STAFF - by Division The Adminstrative Services Departmental FTE schedule includes General Fund and Internal Service staffing assigned to 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 Division Total, but are reflected in the Total Staff Personnel schedule. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 180 CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 181 FINANCE DIVISION 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 the 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 verify 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 OVERVIEW Notable Budget Changes:  Budgeted salary and benefit increased due to cost of living and step increases.  $3,000 of tuition reimbursement funding was added for two Finance staff members pursuing further education. The FY 2016/17 Finance Division budget reflects anticipated revenues and expenditures associated with providing financial operations and services. Revenues from the processing and service fees associated with processing Business License services in 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 earned from the ongoing compliance audit. The amount has steadily decreased over the years as the auditors have identified the majority of unlicensed or delinquent businesses. Unlicensed businesses are assessed late fees to a maximum of the license amount itself, for up to a maximum three years in arrears. Processing fee revenue is expected to remain steady as a result of the ongoing business license compliance audit which began in January, 2009. Division expenditures reflect continued streamlining of operational expenses, including the elimination of bank courier services and the reduction of the Accountant position from 1.0 FTE to .90 FTE. Funding for operating supplies, services, and training remain steady with prior year budgets, with the exception of an additional $3,000 for the tuition reimbursement program. Two Finance staff members plan to continue their educational pursuit in FY 2016/17. The Finance Division’s largest operational expense is the annual financial audit, which is required by State law. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 182 FINANCE DIVISION FY 2016/17 WORKPLAN PRIORITIES Reporting Enhancements – Staff will continue to improve reporting preparation processes and publish the Comprehensive Annual Financial Report, Monthly Treasurers Reports, and Quarterly Budget Status Reports, with a focus on presentation, documentation, compliance requirements, and readability. Financial System Upgrade – The Sungard financial system will be upgraded at the beginning of the fiscal year to maintain the technology requirements of the vendor and improve processes. After the system is implemented, the Report Net module upgrade will be implemented. Finance staff will train City staff users and utilize the system’s new capabilities to enhance system information productivity. Credit Card Processing – Staff will review credit card processing options to move away from a cost model to a true pass-through processing system, thereby eliminating credit card processing fee impacts. Banking Services – Staff will research banking service options, determine desirable service tools, determine productivity of preparing a banking services RFP, and pursue if there are advantages. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 41,810 41,618 45,085 41,800 44,850 42,880 Charge for Services - - - - - - Other Sources 10,175 5,991 11,496 5,000 5,297 5,000 TOTAL REVENUES 51,985$ 47,609$ 56,581$ 46,800$ 50,147$ 47,880$ EXPENDITURES Salaries and Benefits 653,372 702,479 611,118 603,019 608,580 628,977 Operating Expenditures Materials & Supplies 6,722 11,221 7,679 12,000 6,270 10,500 Fees & Charges 9,741 9,413 8,685 11,325 8,301 9,585 Consultants & Contract Services 51,469 54,391 42,016 43,000 52,309 45,700 Meetings, Events & Training 2,200 4,595 2,445 5,500 4,990 8,350 Total Operating Expenditures 70,133 79,619 60,825 71,825 71,869 74,135 Fixed Assets - - - - - - Internal Service Charges 116,006 116,983 106,504 116,832 116,832 124,266 TOTAL EXPENDITURES 839,510$ 899,080$ 778,447$ 791,676$ 797,281$ 827,378$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 183 FINANCE DIVISION 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 A nnual 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Administrative Services Director 0.80 0.80 0.10 0.10 0.10 Finance Manager - 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 2.75 2.75 Human Resources Manager - - - - - Human Resources Technician - - - - - Information Technology Administrator - - - - - Information Technology Technician - - - - - TOTAL FTE's 4.70 5.70 5.00 4.75 4.75 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Hours Funded Funded Funded Funded Funded Sr. Accountant 1,200 200 - - - TOTAL ANNUAL HOURS 1,200 200 - - - FINANCE STAFF CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 184 FINANCE DIVISION 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures 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: 7 of 7 12 of 12 19 of 20 20 of 20 20 of 20 c.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: 100%99.00%100%99.00%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: n/a $ 3,294,619 $ 500,000 $ 500,000 $ 500,000 c.Meet and maintain Fund Balance Reserves fiscal policy requirements: Yes Yes Yes Yes Yes 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actuals Actuals Actuals Budget 1.0 0 0 0 0 2.1,242 1,230 1,260 1,261 1,260 3.2,234 2,240 2,238 2,260 2,260 4.7,494 7,320 7,106 7,273 7,200 5.53 50 51 53 53 6.0 3 0 1 0 7.23 26 30 39 0 8.1,899 1,940 1,850 1,952 1,900 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. 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 Proactively manage the City's finances to maintain excellent fiscal status. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 185 HUMAN RESOURCES 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 wo rkers’ 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 Department of Justice; and the Department of Motor Vehicles’ Employee Pull Notice (EPN) program. BUDGET OVERVIEW Notable Budget Changes  None 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 remain 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. Employment law legal services were moved into the Non-Departmental Legal Services program during FY 2013/14 to assign budget responsibility and oversight for legal services to the City Attorney, and to align all attorney fees within the Legal Services program. This resulted in a $24,000 decrease, however this was offset by the City Manager recruitment fees in FY 2013/14, therefore the operational realignment reduction was not realized until FY 2014/15. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 186 HUMAN RESOURCES FY 2016/17 WORKPLAN PRIORITIES Classification and Compensation – Conduct classification studies and compensation surveys, update job descriptions as needed, and respond to outside requests for City wage and benefit information. HR Technology Improvements – Implement the NEOGOV on-line Performance Appraisal System upgrade of the Perform Dashboard and communicate the changes to and train users. Performance Management - Evaluate the features and design of the NEOGOV on-line Performance Appraisal System evaluation templates to determine if changes may be made to support users more efficiently and effectively. Recruitment and Selection – Conduct recruitment and selection processes in accordance with agreed upon scheduled target dates for regular, benefited and temporary at-will, not benefited positions. Staff Training – Coordinate AB1825 mandatory harassment training (required every two years by law and required within six months of hire of supervisory positions), management and supervisory workshops through the LCW consortium, and other training including the 2016 Internship and Leadership Academy programs of Santa Clara County. Volunteer Saratoga Program – Increase opportunities and promotion efforts of the City’s “Volunteer Saratoga!” program. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits 244,316 250,470 262,838 269,507 270,085 272,881 Operating Expenditures Materials & Supplies 3,908 1,389 1,244 1,450 842 650 Fees & Charges 9,208 9,291 9,157 10,195 9,167 10,255 Consultants & Contract Services 30,793 11,999 10,808 13,000 10,669 13,100 Meetings, Events & Training 11,287 34,083 11,338 11,250 9,046 11,150 Total Operating Expenditures 55,196 56,762 32,547$ 35,895$ 29,724$ 35,155$ Internal Service Charges 29,583 30,178 29,833 32,673 32,673 35,001 TOTAL EXPENDITURES 329,095$ 337,410$ 325,218$ 338,075$ 332,482$ 343,037$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 187 HUMAN RESOURCES 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 Information Technology Administrator - - - - - Information Technology Technician - - - - - TOTAL FTE's 1.00 1.65 1.65 1.65 1.65 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded HR Technician 1,568 - - - - Student Intern - 320 320 - - Total Annual Hours 1,568 320 320 - - * HUMAN RESOURCES STAFF 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. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 188 HUMAN RESOURCES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures 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 4. a.Percentage of recruitments averaging two months from the job posting to offer letter: n/a n/a n/a n/a n/a c. Staff turnover percentage: 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actuals Actuals Actuals Budget 1.3 8 6 6 5 2.1,085 2,500 314 716 600 3.77 81 76 69 70 4.167 191 150 235 235 5.$58,503 $57,577 $50,000 $70,680 $72,000 6.160 160 520 210 200 7.36 36 52 36 36 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: Support transparency in government activites through providing timely reporting and/or responses to outside agencies. Provide effective and efficient employee benefit contract administration. Recruit, retain and develop a highly effective workforce to promote good governmance ethics. Provide fair and proper administrative and personnel decisions that foster a proactive, responsible, and transparent government. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 189 ADMINISTRATIVE SERVICES 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 from the Director to the Finance Manager to allow the Director to focus on departmental leadership and strategic administrative matters, 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 OVERVIEW Notable Budge Changes:  Additional expenditure funding was added to support additional Sungard upgrade training and to provide resources for the internal document management system implementation. 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, and would be the foundation upon which cost recovery decisions would be made. Workload priorities will include the development and revision of high priority policies to prepare for this rigorous process should it occur. As cost recovery planning and preparations are extensive, this activity will continue to be a high priority function for many years. 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 an asset database and reassessment of internal service fund allocations. With the focus on high level staff driven analytical, financial, and administrative management, budget requirements are minimal. Revenues will not be generated by this program and operating expenditures are generally limited to staffing costs and a small amount of operational supplies, training, and internal service charges. However, this year is an exception. The FY 2016/17 budget includes $20,000 of additional funding for resources associated with the implementation of an intranet or similar administrative document management tool. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 190 ADMINISTRATIVE SERVICES FY 2016/17 WORKPLAN PRIORITIES Cost Recovery Planning –This large, long-term project is to prepare the City for financial tracking and reporting duties, both during, and after, an emergency. The focus will be on researching and preparing emergency policies and forms in conformance with claim reimbursement requirements. Fiscal and Administrative Policies – Staff will research, document, and ultimately develop a comprehensive set of City-wide fiscal and administrative policies. This project is very large and will take several years to complete. Financial Records Management – Finalize the conversion of historical and permanent paper financial records into digital format, and organize existing digital format files into a readily accessible directory library structure in the City’s Laserfiche program. Administrative Management Development – The City will implement an internal website data management tool to provide readily accessible administrative information and resources. Asset Database Development – Staff will work on the development of a fixed asset management tool to better track resources and funding requirements for budget preparation and information tracking purposes. Contract Management – Staff will work on the development of a contract database tool to track City-wide contract life cycles for comprehensive data collection and expiration dates. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits - - - - - - Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Salaries and Benefits - - 171,331 199,794 198,906 207,302 Operating Expenditures Materials & Supplies - - 209 1,000 402 800 Fees & Charges - - - 600 694 1,575 Consultants & Contract Services - - - 5,300 6,400 21,700 Meetings, Events & Training - - 882 1,150 572 2,725 Total Operating Expenditures - - 1,091 8,050 8,068 26,800 Internal Service Charges - - 13,960 15,911 15,911 17,785 TOTAL EXPENDITURES -$ -$ 186,382$ 223,755$ 222,885$ 251,887$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 191 ADMINISTRATIVE SERVICES 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Administrative Services Director - - 0.70 0.70 0.70 Finance Manager - - - - - Accountant I/II - - - - - Accounting Technician/Lead - - - 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 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Hours Funded Funded Funded Funded Funded Graphics Assistant - - - 150 - TOTAL ANNUAL HOURS - - - 150 - ADMINISTRATIVE SERVICES STAFF CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 192 ADMINISTRATIVE SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.See Finance Perf Measure See Finance Perf Measure Yes Yes Yes 2.See Finance Perf Measure See Finance Perf Measure Yes Yes Yes 3.See Finance Perf Measure See Finance Perf Measure Yes Yes Yes 4.See Finance Perf Measure See Finance Perf Measure 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: Prepare accurate budget workplans in compliance with standard budgeting practices. Provide 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. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 193 OFFICE SUPPORT SERVICES The Office Support program accounts for the 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 utilized, 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 OVERVIEW The City’s Multi-Functional Devices (MFD), consisting of photocopying, scanning, and printing functions, ar e 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 is operating satisfactorily, the postage machine will be retained and the maintenance agreement renewed on an annual basis for as long as practical. Staff does not expect to replace the postage machine next fiscal year, but has included replacement funding in the budget as a contingency. Replacement funding will be budgeted each year until a replacement machine is required. The FY 2016/17 service chargeback remains at $50,000 as fund balance will be reduced over several years to be in line with the reserve policy. Operating expenditures are budgeted at last year’s level, which includes the contingency funding for the possible postage equipment replacement. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 194 OFFICE SUPPORT SERVICES KEY SERVICES  Provide postage and photocopy equipment, as wells as other small office equipment, supplies, and services for citywide use  Monitor service levels and performance of copier and postage machines, maintaining and replacing equipment as needed 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCES OF FUNDS Beginning Fund Balance Unassigned 11,220 24,021 53,121 75,075 75,075 96,171 Total Beginning Fund Balance 11,220$ 24,021$ 53,121$ 75,075$ 75,075$ 96,171$ Revenues Charge for Services 12,086 10,028 13,183 12,000 10,703 12,000 Internal Service Charges 55,000 55,000 55,000 50,000 55,000 50,000 Total Revenues 67,086$ 65,028$ 68,183$ 62,000$ 65,703$ 62,000$ TOTAL SOURCE OF FUNDS 78,306$ 89,049$ 121,304$ 137,075$ 140,777$ 158,171$ USE OF FUNDS Expenditures Salaries and Benefits - - - - - - Operating Expenditures Materials & Supplies 17,233 18,323 18,632 19,500 15,717 19,000 Fees & Charges 35,951 15,323 25,473 35,250 26,434 35,950 Consultants & Contract Services 1,101 2,282 2,124 3,500 2,456 3,500 Meetings, Events & Training - - - - - - Total Operating Expenditures 54,285$ 35,928$ 46,229$ 58,250$ 44,606$ 58,450$ Fixed Assets - - - 15,000 - 15,000 Internal Service Charges - - - - - - Total Expenditures 54,285$ 35,928$ 46,229$ 73,250$ 44,606$ 73,450$ Operating Transfers Transfer Out - - - - - - Total Operating Transfers - - - - - - Ending Fund Balance Unassigned 24,021 53,121 75,075 63,825 96,171 84,721 Total Ending Fund Balance 24,021$ 53,121$ 75,075$ 63,825$ 96,171$ 84,721$ TOTAL USE OF FUNDS 78,306$ 89,049$ 121,304$ 137,075$ 140,777$ 158,171$ SOURCE & USE OF FUNDS CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 195 INFORMATION TECHNOLOGY SERVICES 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 OVERVIEW Notable Budget Changes:  Service Chargebacks were increased by $50,000 to reflect growing technology services and costs.  Additional funding was budgeted for EV Charging Station Network Services and IT support services. Multi-year license and support services fluctuate from year to year, so that increases in some support service contracts are offset with decreases in others. The IT Services program is funded by service chargebacks for operational support to the City’s programs. With the ever increasing advancement of 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 2016/17, up to $525,000 in FY 2015/16. 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 needs increase or change. With the consolidation of multiple small servers into a larger server with a virtual server environment, some software and maintenance duplication costs were eliminated, providing ongoing savings. The integration of cloud-based solutions has also reduced hardware costs while providing off-site capabilities and enhanced security. 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, EV station software support, and multiple firewall and security systems 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. And, in this new intense era of cybersecurity protection requirements, ongoing IT Security Audits will identify improvements to be made, which will likely require additional funding needs each year. Contingent IT support funding grew from $25,000 to $40,000 in FY 2016/17 due to an ever-increasing demand driven by new technology and security needs. The breadth of knowledge and expertise necessary for IT support requires cutting-edge technology consultants who can provide high-level assistance for specialized and emerging technology projects, as well as for emergency operations backup. The City’s IT consultant draws upon multiple staff in their firm who have specialized training with advanced skills to assist in the implementation of new or high- level technology. 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 step increases and position realignment. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 196 INFORMATION TECHNOLOGY SERVICES FY 2016/17 WORKPLAN PRIORITIES Network Security Assessment – Results from the network security assessment conducted in FY 2015/16 to discover potential security vulnerabilities on City’s data network will be addressed. 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 online payments for permits. Website Upgrade – After selecting a website upgrade consultant in late FY 2015/16, IT will work with the consultant and website development team to develop an improved website design, structure, and implementation plan. IT will oversee the upgrade and back-end requirements for the new website design. 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCES OF FUNDS Beginning Fund Balance Unassigned 256,702 281,284 262,069 260,322 260,322 274,223 Total Beginning Fund Balance 256,702$ 281,284$ 262,069$ 260,322$ 260,322$ 274,223$ Revenues Other Sources 257 3,488 5,803 5,000 6,485 6,500 Internal Service Charges 400,000 400,000 425,000 475,000 475,000 525,000 Total Revenues 400,257$ 403,488$ 430,803$ 480,000$ 481,485$ 531,500$ TOTAL SOURCE OF FUNDS 656,959$ 684,772$ 692,872$ 740,322$ 741,807$ 805,723$ USE OF FUNDS Expenditures Salaries and Benefits 201,378 237,911 248,221 242,904 244,289 293,394 Operating Expenditures Materials & Supplies 8,966 9,754 11,141 11,450 4,271 11,400 Fees & Charges 13,607 14,356 15,376 27,560 21,891 28,875 Consultants & Contract Services 116,045 123,217 115,672 179,070 130,605 198,730 Meetings, Events & Training 2,282 1,160 2,625 5,750 3,196 6,500 Total Operating Expenditures 140,900 148,486 144,813 223,830 159,962 245,505 Fixed Assets - - - - - - Internal Service Charges 33,395 36,305 39,516 63,332 63,332 63,666 Total Expenditures 375,674$ 422,703$ 432,550$ 530,066$ 467,583$ 602,565$ Ending Fund Balance Unassigned 281,284 262,069 260,322 210,256 274,223 203,159 Total Ending Fund Balance 281,284$ 262,069$ 260,322$ 210,256$ 274,223$ 203,159$ TOTAL USE OF FUNDS 656,958$ 684,772$ 692,872$ 740,322$ 741,807$ 805,723$ SOURCE & USE OF FUNDS CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 197 INFORMATION TECHNOLOGY SERVICES Sungard Upgrade – Sungard, the Financial and Human Resources data management system will be upgraded to a higher version to keep comp liant with the vendor’s system requirements. IT will plan and oversee the implementation process. GIS Software Integration/Upgrade – IT staff will research GIS software and integration options to develop an appropriate structure and implementation plan to improve development functionality and coordinate mapping information in both development and engineering software. 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 Sungard financial system, Trak-IT permitting system, Rec-Trak, LaserFiche, Agenda Manager, Granicus, and others  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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 TOTAL FTE's 1.10 2.10 2.10 2.10 2.10 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Hours Funded Funded Funded Funded Funded IT Technician 2,000 - - - - TOTAL ANNUAL HOURS 2,000 - - - - INFORMATION TECHNOLOGY STAFF CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 198 INFORMATION TECHNOLOGY SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actual Actuals Actuals Actuals Budget 1. a.Percent of time online services are available to the public through the City's website and resource links: 99%99%99%98%99% b.Percent of time network remains available during normal business hours: 98%98%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: 5 4 6 8 6 b.Number of new technology sytems or equipment for which oversight and support was provided by IT staff: 6 9 7 6 5 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:Information not available Information not available Information not available 2 3 c.Security standards meet PCI Compliance Requirements:No No Yes Yes Yes 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actual Actuals Actuals Actuals Budget 1.86 88 109 106 105 2.26 27 36 37 38 3.22 20 24 24 23 4.57 59 60 59 57 5.17 17 14 25 25 6 0 6 6 13 13 7.24 24 21 20 21 8.78 77 75 76 76 9.25 23 22 23 23Number 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: 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. Number of IT software applications monitored and maintained: Number of laptop systems maintained: Number of landlines serviced and maintained: Protect the City's technology assets from unauthorized use. Number of tablets maintained: Number of desktop systems maintained: CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 199 INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT FUND 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 new equipment is added to the department’s replacement schedule list, and replacement charges wo uld be adjusted for outgoing years. With rapid changes in technology, the cost of replacement equipment could vary considerably from the cost of the original equipment, or else the equipment became 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 not expected to increase significantly in future years. BUDGET OVERVIEW The FY 2015/16 budget incorporated a more comprehensive replacement funding strategy. In past years, software systems were not included in the replacement schedules, in the expectation that due to the cost of most of the software systems, replacements would be managed through the Capital Improvement Plan process. Per Council’s direction, the IT replacement fund will now incorporate system replacements into the annual budget allocations. This will 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. 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 set 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 2016/17. It should be noted that program expenditures will vary year by year as they are based on software and equipment lifespan cycles, and are independent of the annual chargeback amount. Over the years, funding requirements may adjust as replacement needs are revised, projected costs are more firmly determined, or with delays in scheduled replacements due to continued equipment functionally. Planned replacements for the budget year total $118,280 and include: $24,200 for desktops, laptops, and tablet computer replacements, $37,000 for network server replacements, $28,500 for network equipment and UPS battery backups, and $18,580 for MS Office Suite, Adobe, and Customer Relationship software. CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 200 INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT FUND KEY SERVICES  Accumulate and provide annual funding for technology asset replacement  Assess IT equipment for proper replacement timing  Identify and procure best solution equipment 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCES OF FUNDS Beginning Fund Balance Unassigned 144,670 156,318 152,788 194,101 194,101 274,339 Total Beginning Fund Balance 144,670$ 156,318$ 152,788$ 194,101$ 194,101$ 274,339$ Revenues ISF Charges 46,236 55,000 65,000 125,000 125,000 125,000 Total Revenues 46,236$ 55,000$ 65,000$ 125,000$ 125,000$ 125,000$ Operating Transfers Transfer In from General Fund - - - - - - Total Operating Transfers In -$ -$ -$ -$ -$ -$ TOTAL SOURCE OF FUNDS 190,906$ 211,318$ 217,788$ 319,101$ 319,101$ 399,339$ USE OF FUNDS Expenditures Operating Expenditures Materials & Supplies 46,678 58,530 23,687 108,400 44,762 136,280 Fees & Charges - - - - - - Consultants & Contract Services - - - - - - Meetings, Events & Training - - - - - - Total Operating Expenditures 46,678 58,530 23,687 108,400 44,762 136,280 Fixed Assets - - - - - - Internal Service Charges - - - - - - Total Expenditures 46,678$ 58,530$ 23,687$ 108,400$ 44,762$ 136,280$ Operating Transfers Transfer Out to General Fund - - - - - - Transfer Out to CIP - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned 156,318 152,788 194,101 210,701 274,339 263,059 Total Ending Fund Balance 156,318$ 152,788$ 194,101$ 210,701$ 274,339$ 263,059$ TOTAL USE OF FUNDS 202,996$ 211,318$ 217,788$ 319,101$ 319,101$ 399,339$ SOURCE & USE OF FUNDS CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 201 INFORMATION TECHNOLOGY EQUIPMENT REPLACEMENT FUND Computer Systems FY 2016/17 Standard Desktops 13,700 Graphic Desktops 9,000 Monitors - Laptops 1,500 Tablets - Servers Small Server 5,000 Mid-Size Server 20,000 Large Server 20,000 Virtual Server 5,000 Data Storage Nimble Storage Array Server - Network Network switch 6,000 Firewalls 3,000 Network Cabling - Fiber Optic Cabling - Telephone System - Wireless (Wi-Fi)25,000 Printers Check printer - Permits/Receipts printer - Plotter printer 5,000 UPS Battery Backups Desktop battery 2,000 Server battery 2,500 Security Equipment Park and Facility Security Cameras - Software Productivity Software (MS Office Suite, Adobe)8,580 City Website/Intranet - Electronic Document software (Laserfiche)- Department Software - CMO Customer Relationship Management (CRM) - City Clerk Agenda Management software - Finance/HR software (SunGard)- Community Development software (TRAKiT)10,000 CDD/PW GIS Enterprise Software - Recreation software (RecTrac)- TOTAL IT EQUIPMENT REPLACEMENTS:136,280 IT EQUIPMENT REPLACEMENT SCHEDULE CITY OF SARATOGA ADMINISTRATIVE SERVICES DEPARTMENT 202 CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 203 COMMUNITY DEVELOPMENT DEPARTMENT 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 DEPARTMENT BUDGET SUMMARY The Bay Area economy continues to lead the nation in terms of activity and job creation, and in turn, Saratoga property owners are confident about investing in their properties with remodeling work and improvements. Given a stabilizing housing market cycle, FY 2016/17 revenue projections reflect only a slight change in the number of planning applications and building permits to be issued in the upcoming budget year. Development revenue remains healthy and is anticipated to remain at or above prior year levels. Despite turnover in the department during FY 2015/16, staffing levels (12 FTE’s) in the Community Development Department were maintained with the assistance of temporary contract services to backfill positions while the City recruited for the three vacant positions (Office Specialist III, Planner II, and Senior Planner). The budget also plans for the scheduled return of a Senior Planner who is currently fulfilling a military obligation, and the retention of temporary contract planning services as on-demand staffing to respond to increases in development activity and assist CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 204 with the department workplan assignments (such as updating the Saratoga Village plan). Funding is also included for a Summer CDD Intern to assist with an upgrade to the City’s permitting software, geographic information system (GIS), and department website. With Council approval, a Code Compliance Officer full-time staff position will be added to the department’s staff in FY 2016/17. During the recession, the former Code Compliance Specialist position was de-funded and code compliance responsibilities were distributed to other staff members in the Community Development Department. As development activity has returned to pre-recession activity levels, staff does not have the capacity to complete their regular duties and also address code complaints. With the department not able to meet community expectations, residents began to request dedicated code compliance staffing from the Council. The addition of this position will address the policy and service priorities set by Council during its 2016 Budget Study Session, and also allow the other development staff to return their focus to their own primary duties. This resulted in a reallocation of staffing FTEs throughout the department. While the shifting of staff will impact budgets at the program level, the overall department expenditures remain stable with the exception of funding for the Code Compliance Officer addition. With the recent addition of several new staff members, the department will continue training efforts to rebuild the department, implement administrative and process improvements, and upgrade existing permitting software. These efforts are intended to increase overall efficiency of the department and enhance customer service for City residents and businesses. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 1,408,832 1,344,008 1,227,554 1,322,250 1,305,524 1,333,650 Charge for Services 772,506 875,152 864,804 878,400 949,373 959,900 Other Sources 2,444 776 2,755 1,000 3,634 3,000 TOTAL REVENUES 2,183,782$ 2,219,935$ 2,095,113$ 2,201,650$ 2,258,530$ 2,296,550$ EXPENDITURES Salaries and Benefits 1,551,471 1,638,097 1,523,194 1,754,373 1,624,144 1,958,794 Operating Expenditures Materials & Supplies 20,828 14,995 20,765 23,950 16,917 22,050 Fees & Charges 34,440 19,968 20,940 24,040 23,410 25,845 Consultant & Contract Services 104,081 155,458 140,169 160,300 153,107 83,700 Meetings, Events & Training 2,296 5,158 8,683 19,600 7,038 13,750 Total Operating Expenditures 161,644 195,579 190,557 227,890 200,471 145,345 Fixed Assets - - - - - - Internal Service Charges 333,738 348,034 372,929 368,244 368,244 392,356 TOTAL EXPENDITURES 2,046,853$ 2,181,710$ 2,086,680$ 2,350,507$ 2,192,859$ 2,496,495$ 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Development Services 925,009 955,477 909,462 967,242 933,024 929,692 Advanced Planning 115,740 254,409 113,311 173,230 119,583 167,090 Code Compliance 104,799 52,643 127,653 187,906 161,859 222,530 Building Inspection Services 901,305 919,181 936,255 1,022,129 978,393 1,177,182 TOTAL EXPENDITURES 2,046,853$ 2,181,710$ 2,086,680$ 2,350,507$ 2,192,859$ 2,496,495$ GENERAL FUND REVENUES AND EXPENDITURES TOTAL DEPARTMENTAL EXPENDITURES BY DIVISION / PROGRAM CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 205 DEPARTMENT 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 Office Specialist 1.0 FTE Code Compliance Officer 1.0 FTE Sr. Arborist 1.0 FTE Sr. Building Inspector 1.0 FTE Building Inspector 1.0 FTE Building Inspector 1.0 FTE CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 206 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 1.00 2.00 Planner I/II 2.00 2.00 2.00 2.00 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 1.00 - - - - Sr. Building Inspector/Plan Checker - 1.00 1.00 1.00 1.00 Building Inspector 2.00 2.00 2.00 2.00 2.00 Permit Technician - 1.00 1.00 1.00 1.00 Office Specialist III 2.00 2.00 2.00 2.00 2.00 Code Compliance Officer - - - - 1.00 TOTAL FTE's 11.00 12.00 12.00 12.00 13.00 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Planning Intern 940 - 320 480 320 Office Specialist III 800 800 800 940 - Project Manager - - - - 1,335 TOTAL ANNUAL HOURS 1,740 800 1,120 1,420 1,655 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff by Program Funded Funded Funded Funded Funded Development Services 4.75 4.85 4.60 4.60 4.25 Advanced Planning 0.50 0.65 0.70 0.70 0.70 Code Compliance 0.60 0.70 0.75 0.75 1.35 Building & Inspections 5.15 5.80 5.95 5.95 6.70 TOTALS 11.00 12.00 12.00 12.00 13.00 COMMUNITY DEVELOPMENT DEPARTMENT STAFF COMMUNITY DEVELOPMENT DEPARTMENT STAFF - by Division CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 207 DEVELOPMENT SERVICES 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 OVERVIEW Notable Budget Changes  A vacant Planner II position was upgraded to Senior Planner to better reflect the community’s priorities  Temporary staff funding was provided to support any further increased development activity and to assist with current department work plan assignments.  New funding was provided for GIS annual license and support to upgrade development services functions. With an expectation that the current high level of development activity will continue, Development Services revenues remain consistent with prior year estimates. Design review applications for large remodels, or the replacement of existing homes, make up the bulk of development activity. In addition, Tree Removal Permits have stabilized at a higher level consistent with development activity, and new conditional use permits have returned to the average of pre-recession activity. Expenditures are consistent with last year’s budget, with the exception of an upgrade of a Planner II position to a Sr. Planner position to better address departmental needs, and a budget appropriation shift from contract planner to temporary staff funding to reflect the hiring of retired planning staff rather than from a contract firm. While the other Sr. Planner staff member is scheduled to return from military deployment early in the fiscal year, the continued use of temporary staff will assist with increased development activity and the department’s workplan. Major assignments from the Department’s Work Plan, include: a revision to the City’s Wireless Ordinance to comply with State law, revisions to the solar permitting process, the Historical Preservation Committee’s Historical Markers workplan item, the 2017 Building Code Update, Annual Code Update, and updating of the Saratoga Village development policies and regulations. The City’s economic development programs will also continue to be administered through Development Services in FY 2016/17, along with the Village Façade Improvement program, assisting the efforts of the Chamber of Commerce, and Destination Saratoga and supporting the Planning and Heritage Preservation Commissions. CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 208 DEVELOPMENT SERVICES FY 2016/17 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). This year’s updates will include the wireless ordinance, solar permitting, construction management ordinance, and the 2017 Uniform Building Code update. 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 97,577 72,766 53,093 46,400 48,108 45,500 Charge for Services 425,188 487,187 477,962 478,400 435,508 479,900 Other Sources 1,944 776 2,255 1,000 1,534 1,000 TOTAL REVENUES 524,709$ 560,730$ 533,310$ 525,800$ 485,150$ 526,400$ EXPENDITURES Salaries and Benefits 708,748 741,411 646,717 704,598 646,929 685,137 Operating Expenditures Materials & Supplies 14,543 10,454 13,256 11,750 12,184 12,350 Fees & Charges 12,710 8,081 5,811 9,700 8,982 11,035 Consultant & Contract Services 23,450 21,406 78,448 69,300 99,687 39,550 Meetings, Events & Training 2,096 3,425 5,876 10,600 3,948 5,750 Total Operating Expenditures 52,799 43,366 103,391 101,350 124,801 68,685 Fixed Assets - - - - - - Internal Service Charges 163,462 170,700 159,353 161,294 161,294 175,870 TOTAL EXPENDITURES 925,009$ 955,477$ 909,462$ 967,242$ 933,024$ 929,692$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 209 DEVELOPMENT SERVICES 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Community Development Director 0.50 0.50 0.50 0.50 0.50 Senior Planner 0.65 0.65 0.60 0.60 1.20 Planner I/II 1.80 1.80 1.60 1.60 0.85 Senior Arborist 0.90 0.90 0.90 0.90 0.90 Plan Check Engineer - - - - - Building Official - - - - - Sr. Building Inspector/Plan Checker - - - - - Building Inspector - - - - - Permit Technician - 0.10 0.10 0.10 0.05 Office Specialist III 0.90 0.90 0.90 0.90 0.75 Code Compliance Officer - - - - - TOTAL FTE's 4.75 4.85 4.60 4.60 4.25 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Planning Intern 940 - 320 480 160 Office Specialist III 800 800 800 940 - Project Manager - - - - 960 TOTAL ANNUAL HOURS 1,740 800 1,120 1,420 1,120 DEVELOPMENT SERVICES STAFF CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 210 DEVELOPMENT SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a.Review planning applications and provide written comments deeming them complete or incomplete, within 30 days: 100%100%100%100%100% b.Review all zone clearances from the Building Division within 2 weeks: 95%96%98%99%100% 2. a.92%95%98%100%100% c.15%15%10%0%0% c.Percentage of applications appealed to the Planning Commission or City Council: 3%1%2%1%0% d.100%50%100%50%100% 3. a.Percent of notices sent within 10 days of Planning Commission meetings: 100%100%100%100%100% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.231 275 240 200 240 2.385 370 360 509 400 3.66 80 70 82 80 4.21 20 20 18 18 5.13 15 10 10 10 7.3 5 2 4 4 8.13 20 10 10 10 Percentage of applications continued at the request of the Planning Commission: Percentage of applications upheld by the City Council: 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): 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. Process applications to Planning Commission within an average of 4 weeks of deeming the application complete: CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 211 ADVANCED PLANNING 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 development 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 OVERVIEW Notable Budget Changes:  No notable changes 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 the estimated $100,000 annual difference between General Plan Update Fees and in-house staff and operational expenses 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. FY 2016/17’s revenues and expenditure activities are expected to remain consistent with the prior year. The revenue is accumulated as an add-on surcharge on planning fees, and with an expectation that we will see steady planning activity, revenues should be similar. 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. Typically, staff and/or consultants complete at least one of the City’s General Plan Elements each fiscal year, however large project work often crosses over fiscal years. The remainder of the program’s operational expenses are minimal, and expected to remain at prior year levels. CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 212 ADVANCED PLANNING FY 2016/17 WORKPLAN PRIORITIES Village Visioning – Staff will be working closely with the City Manager’s Office on managing the City’s efforts to document a community wide vision for Saratoga Village and the necessary follow-up actions related to updating land use policies/documents and or City Codes. This is anticipated to be a multi-year effort that could extend into FY2016/17. Housing Element Implementation – Staff will begin work on implementing the updated Housing Element and to begin necessary implementation action for identified programs. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 226,973 228,523 156,165 150,000 191,186 160,000 Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES 226,973$ 228,523$ 156,165$ 150,000$ 191,186$ 160,000$ EXPENDITURES Salaries and Benefits 95,000 126,746 93,089 150,593 98,492 142,974 Operating Expenditures Materials & Supplies 22 - - 500 - 600 Fees & Charges 2,224 1,624 1,439 1,860 1,314 1,860 Consultant & Contract Services 2,659 110,286 - 500 - 500 Meetings, Events & Training - - - - - - Total Operating Expenditures 4,905 111,910 1,439 2,860 1,314 2,960 Fixed Assets - - - - - - Internal Service Charges 15,835 15,753 18,783 19,777 19,777 21,156 TOTAL EXPENDITURES 115,740$ 254,409$ 113,311$ 173,230$ 119,583$ 167,090$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 213 ADVANCED PLANNING KEY SERVICES  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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Community Development Director 0.25 0.30 0.30 0.30 0.20 Senior Planner 0.25 0.25 0.30 0.30 0.40 Planner I/II - 0.10 0.10 0.10 0.05 Senior Arborist - - - - - Plan Check Engineer - - - - - Building Official - - - - - Sr. Building Inspector/Plan Checker - - - - - Building Inspector - - - - - Permit Technician - - - - - Office Specialist III - - - - 0.05 Code Compliance Officer - - - - - TOTAL FTE's 0.50 0.65 0.70 0.70 0.70 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Planning Intern - - - - 160 Project Manager - - - - 375 TOTAL ANNUAL HOURS - - - - 535 ADVANCED PLANNING STAFF CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 214 ADVANCED PLANNING 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals 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 No Yes Yes Yes b.Land Use Element:Yes Yes No No No c.Circulation and Transportation Element:Yes Yes Yes Yes Yes d.Conservation Element:Yes Yes No No No e.Open Space Element:Yes Yes No No No f.Noise Element:No Yes Yes Yes Yes g.Safety Element:Yes Yes Yes Yes Yes 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.6 9 6 4 4 2.2 3 1 0 0 3.1 1 1 0 0 4.1 0 1 0 0 Number of ordinances completed (multiple section updates): General Plan Elements updated: Number of General Plan amendments requested: Annexation applications in process: 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. CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 215 CODE COMPLIANCE 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 OVERVIEW Notable Budget Changes:  Addition of Code Compliance Officer (1 FTE) Code Compliance revenues are mostly limited to fees from the administration of various special activity permits, such as Noise Exception Permits, Massage Permits, and Solicitor Permits. Only rarely does the City issue administrative citations to obtain compliance with City Code. For those code compliance cases which are not resolved through staff efforts or mediation, and a fine or enforcement action is issued, the City may need to utilize the services of a Hearing Officer. 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, but funding levels for the Hearing Officer services is being maintained at $6,000 to reflect the anticipated Code Enforcement efforts related to the hiring of a Code Compliance Officer and the development of new program procedures. The Code Compliance program will be managed and supervised by the Community Development Director with assistance from the City Arborist, Building staff and Planning staff. The cost of this staff time, comprised of salaries, benefits, and internal services charges make up the majority of the expenditures. Only a minimal amount is needed for materials, supplies, and postage. CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 216 CODE COMPLIANCE FY 2016/17 WORKPLAN PRIORITIES Abatement Priorities – Prioritize responses to code compliance cases based on the Council’s adopted priorities and procedures. Program Priorities – Development of new City Code Compliance Procedures 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 5,655 7,650 10,225 5,750 7,775 5,500 Charge for Services - - - - - - Other Sources 500 - 500 - 2,100 2,000 TOTAL REVENUES 6,155$ 7,650$ 10,725$ 5,750$ 9,875$ 7,500$ EXPENDITURES Salaries and Benefits 95,022 44,234 93,944 105,442 103,753 184,954 Operating Expenditures Materials & Supplies - 299 41 500 641 500 Fees & Charges 124 72 205 280 159 250 Consultant & Contract Services - - 6,943 56,000 31,623 10,000 Meetings, Events & Training - - - - - 1,000 Total Operating Expenditures 124 371 7,188 56,780 32,422 11,750 Fixed Assets - - - - - - Internal Service Charges 9,653 8,038 26,520 25,684 25,684 25,826 TOTAL EXPENDITURES 104,799$ 52,643$ 127,653$ 187,906$ 161,859$ 222,530$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 217 CODE COMPLIANCE KEY SERVICES  Issue 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 legitimate complaints  Resolve complex code and zoning violations; and administer citation appeals Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Community Development Director 0.10 0.05 0.05 0.05 0.05 Senior Planner - - - - 0.05 Planner I/II 0.10 - 0.10 0.10 - Senior Arborist 0.05 0.05 0.05 0.05 - Plan Check Engineer - - - - - Building Official 0.15 - - - - Sr. Building Inspector/Plan Checker - - 0.25 0.25 - Building Inspector 0.10 0.50 0.20 0.20 0.10 Permit Technician - - - - 0.05 Office Specialist III 0.10 0.10 0.10 0.10 0.10 Code Compliance Officer - - - - 1.00 TOTAL FTE's 0.60 0.70 0.75 0.75 1.35 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Planning Intern - - - - - Project Manager - - - - - TOTAL ANNUAL HOURS - - - - - CODE COMPLIANCE STAFF CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 218 CODE COMPLIANCE 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a. Percentage of complaints receiving a response within 48 hours of receipt: 50%60%70%90%90% b. Average open to close cycle time for formal complaints:Information Not Available Information Not Available Information Not Available Information Not Available 90 days c.Percent of violations resolved through voluntary compliance: Information Not Available Information Not Available Information Not Available Information Not Available 100% 2. a.Annual number of Solicitor Permits issued:40 10 20 11 10 b.Annual number of Noise Exemption permits issued:30 55 40 35 35 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.29 75 70 100 100 2.5 0 5 0 5 3.2 5 5 2 2 Annual number of new code enforcement cases: Total number of Administrative Citations: Cases requiring City Attorney review: Ensure compliance with City regulations for permitted activities. Ensure code compliance staff is responsive and accountable to the community. CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 219 BUILDING & INSPECTION SERVICES 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 OVERVIEW Notable Budget Changes:  Revenue is expected to be slightly higher than the prior year’s budget, but in line with current year estimates.  .75 FTE of staff time is being reallocated from Code Compliance back to Building & Inspection Services 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 2016/17 revenues are expected to increase slightly from last year’s budgeted amounts, and in line with the expected actuals due to the steady construction market, the ongoing development approvals, and a slight increase in permit fees. Staffing in the Building Division was reorganized in FY 2013/14; budget funding for the vacant Chief Building Official position was reallocated to help fund two positions - Senior Building Inspector/ Plans Examiner and Permit Technician. These positions continue to provide the Building Division more staffing flexibility during swings in the development cycle by being able to allocate staff resources where they are most needed: either in building inspections, code enforcement, or plan checking. The Department Director serves as the City’s Chief Building Official with assistance from the Building Staff and Building Plan Check consultants. To this end, in late FY 2015/16, the Sr. Building Inspector was reassigned from building inspection and counter duties to focus on engineering development. This change frees up the City engineers to complete two major Capital Improvement projects: the Prospect Road Median project and the Quito Road Bridges project. And with the hiring of a Code Compliance Officer in FY 2016/17, a total of .75 FTE of departmental staff will shift back to Building & Inspection Services, causing staffing costs to rise significantly. Additionally, ongoing training in current codes, policies and procedures is essential to maintaining quality building and code enforcement activities. Certified building and code enforcement inspectors attest to this higher level of training. The proposed budget includes budget to maintain current certifications as well as training for new certifications such as property maintenance, housing, and disaster response. This also supports upcoming changes from the International Code Council (ICC), which is in the process of increasing the amount of continuing education units required to maintain current certifications. The remaining proposed expenditure budget includes costs for meetings, code development hearings and annual business meetings for ICC and the California Association of Building Officials. CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 220 BUILDING & INSPECTION SERVICES FY 2016/17 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. Finalize 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits 1,078,628 1,035,068 1,008,071 1,120,100 1,058,454 1,122,650 Charge for Services 347,319 387,964 386,842 400,000 513,865 480,000 TOTAL REVENUES 1,425,946$ 1,423,032$ 1,394,913$ 1,520,100$ 1,572,319$ 1,602,650$ EXPENDITURES Salaries and Benefits 652,702 725,706 689,443 793,740 774,970 945,729 Operating Expenditures Materials & Supplies 6,262 4,242 7,468 11,200 4,092 8,600 Fees & Charges 19,382 10,191 13,486 12,200 12,955 12,700 Consultant & Contract Services 77,971 23,766 54,777 34,500 21,798 33,650 Meetings, Events & Training 200 1,734 2,807 9,000 3,090 7,000 Total Operating Expenditures 103,815 39,932 78,539 66,900 41,934 61,950 Fixed Assets - - - - - - Internal Service Charges 144,788 153,543 168,273 161,489 161,489 169,503 TOTAL EXPENDITURES 901,305$ 919,181$ 936,255$ 1,022,129$ 978,393$ 1,177,182$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 221 BUILDING & INSPECTION SERVICES KEY SERVICES Counter Services  Provide construction and zoning code information to developers, contractors, architects, engineers, homeowners, and the general public  Maintain permit tracking and building permit system information 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Community Development Director 0.15 0.15 0.15 0.15 0.25 Senior Planner 0.10 0.10 0.10 0.10 0.35 Planner I/II 0.10 0.10 0.20 0.20 0.10 Senior Arborist 0.05 0.05 0.05 0.05 0.10 Plan Check Engineer 1.00 1.00 1.00 1.00 1.00 Building Official 0.85 - - - - Sr. Building Inspector/Plan Checker - 1.00 0.75 0.75 1.00 Building Inspector 1.90 1.50 1.80 1.80 1.90 Permit Technician - 0.90 0.90 0.90 0.90 Office Specialist III 1.00 1.00 1.00 1.00 1.10 Code Compliance Officer - - - - - TOTAL FTE's 5.15 5.80 5.95 5.95 6.70 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Planning Intern - - - - - Project Manager - - - - - TOTAL ANNUAL HOURS - - - - - BUILDING & INSPECTION SERVICES STAFF CITY OF SARATOGA COMMUNITY DEVELOPMENT DEPARTMENT 222 BUILDING & INSPECTION SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a.Percentage of inspections delivered within 2 business days of request: 96%97%98%99%100% b.Percentage of initial plan checks completed within 45 days of receipt: 95%96%98%99%100% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1 1,817 1,800 1,700 2,039 2,000 2.417 475 450 475 450 3.4,330 5,500 5,000 6,711 6,000 4.262 390 350 400 400 5.$79.0 $85.0 $90.0 $96.0 $100.0 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): Maintain staff's responsiveness and accountability to the community. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 223 PUBLIC WORKS DEPARTMENT 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 28 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  Embrace environmentally friendly practices by supporting the Hazardous Household Waste and recycling programs  Establish recycling and waste reduction practices CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 224  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 DEPARTMENT BUDGET SUMMARY The Public Works’ FY 2016/17 budget holds most operational revenues and expenditures at prior year service levels. A notable revenue decrease in FY 2015/16 resulted from a administrative shift of the Sport User Group Rental contract oversight and $115,000 of revenues to the Recreation & Facilities Department, along with the $40,000 expenditure for Prospect High Schools Field Rental Fees. In FY 2016/17, a notable budget change is the $142,000 shift of the Public Works Inspectors from being paid for from Capital Budget to the Operating Budget Expenditure increases are primarily attributable to staffing cost of living and step increase costs, Parks & Landscape Maintenance contract services and the addition of the Public Works Inspectors to the Street Program operating budget. Higher maintenance costs for the Prospect Road medians accounts for the majority of park maintenance increases. Performance Measures for General Engineering, Development Engineering, Environmental Services, Streets and Storm Drains, Parks and Landscape Maintenance, and Vehicle and Equipment Maintenance are included in the operational programs. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 225 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes 163,954 163,954 164,589 166,638 167,113 167,113 Intergovernmental Revenues 208,682 203,908 212,594 212,000 216,105 207,000 Fees, Licenses and Permits 130,214 118,792 122,189 90,750 180,687 100,250 Charge for Services 313,553 400,072 308,605 253,634 494,426 242,727 Rental Income 128,447 121,078 79,791 2,000 3,000 2,000 Other Sources 22,896 7,190 103,375 2,500 10,483 2,500 TOTAL REVENUES 967,747$ 1,014,993$ 991,143$ 727,522$ 1,071,813$ 721,590$ EXPENDITURES Salaries and Benefits 2,340,746 2,448,708 2,485,634 2,626,277 2,647,113 2,850,907 Operating Expenditures Materials & Supplies 76,516 95,011 87,668 104,600 99,956 95,650 Fees & Charges 522,736 565,785 509,374 523,277 531,908 531,984 Consultants & Contract Services 794,639 814,787 882,646 1,026,104 923,424 1,069,045 Meetings, Events & Training 4,878 8,467 8,749 9,800 3,099 10,100 Fixed Assets - - 35,343 - - 10,000 Internal Service Charges 802,705 901,203 939,125 853,555 853,555 859,676 TOTAL EXPENDITURES 4,542,221$ 4,833,962$ 4,948,538$ 5,143,613$ 5,059,055$ 5,427,362$ 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND General Engineering 476,908$ 502,680$ 532,614$ 535,976$ 518,312$ 571,603$ Development Engineering 205,693 213,150 194,320 229,280 227,645 233,692 Environmental Services 619,024 643,314 615,342 765,131 665,655 769,289 Streets & Storm Drains 1,284,436 1,381,240 1,454,269 1,430,236 1,447,110 1,593,030 Parks & Landscape Maint 1,956,160 2,093,578 2,151,993 2,182,990 2,200,334 2,259,748 TOTAL GENERAL FUND 4,542,221$ 4,833,962$ 4,948,538$ 5,143,613$ 5,059,055$ 5,427,362$ INTERNAL SERVICE FUNDS Equipment Maintenance 227,604 224,078 220,785 256,346 224,618 259,033 Equipment Replacement 95,000 140,258 65,775 204,500 201,355 266,700 TOTAL INTERNAL SERVICES 322,604$ 364,336$ 286,560$ 460,846$ 425,973$ 525,733$ SPECIAL REVENUE FUNDS Landscape & Lighting Districts 423,644 409,418 432,671 650,800 461,679 714,930 TOTAL SPECIAL REVENUE 423,644$ 409,418$ 432,671$ 650,800$ 461,679$ 714,930$ TOTAL DEPT EXPENDITURES 5,288,469$ 5,607,716$ 5,667,769$ 6,255,259$ 5,946,707$ 6,668,025$ GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES - by Fund/ Division CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 226 DEPARTMENT ORGANIZATION CHART Sr. Civil Engineer 1.0 FTE Administrative Analyst .90 FTE Engineer 1.0 FTE Office Specialist .75 FTE Streets Maintenance Worker 1.0 FTE Streets & Fleet Lead 1.0 FTE Streets Maintenance Worker 1.0 FTE Streets & Fleet Lead 1.0 FTE Streets & Fleet Manager 1.0 FTE Office Specialist 1.0 FTE Streets Maintenance Worker 1.0 FTE Streets Maintenance Worker 1.0 FTE Streets Maintenance Worker 1.0 FTE Streets Maintenance Worker 1.0 FTE Streets Maintenance Worker 1.0 FTE Parks Maintenance Worker 1.0 FTE Parks & Lansdcape Lead 1.0 FTE Parks Maintenance Worker 1.0 FTE Parks & Landscape Lead 1.0 FTE Parks & Landscape Manager 1.0 FTE Parks Maintenance Worker 1.0 FTE Parks Maintenance Worker 1.0 FTE Parks Maintenance Worker 1.0 FTE Parks Maintenance Worker 1.0 FTE Parks Maintenance Worker 1.0 FTE Parks Maintenance Worker 1.0 FTE Public Works Director 1.0 FTE CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 227 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 1.00 Administrative Analyst I/II 0.90 1.00 0.90 0.90 0.90 Office Specialist II/III 1.75 1.75 1.75 1.75 1.75 Parks Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Lead 1.00 1.00 1.00 2.00 2.00 Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III 6.00 6.00 6.00 5.00 5.00 Street Maintenance Manager 1.00 1.00 1.00 1.00 1.00 Street Maintenance Lead 1.00 2.00 2.00 2.00 2.00 Street Maintenance Specialist 1.00 - - - - Street Maintenance Worker I/II/III 4.00 4.00 4.00 4.00 4.00 TOTAL FTE's 20.65 20.75 20.65 20.65 20.65 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Engineering Inspectors 2,760 2,760 2,760 2,760 2,760 Maintenance Worker - - - 999 999 Engineering Intern - - 200 200 320 TOTAL ANNUAL HOURS 2,760 2,760 2,960 3,959 4,079 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff by Program Funded Funded Funded Funded Funded General Engineering 2.05 2.10 2.05 2.05 2.05 Development Engineering 0.95 0.95 0.95 0.95 0.95 Environmental Services 0.95 1.00 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 20.65 20.75 20.65 20.65 20.65 PUBLIC WORKS DEPARTMENT STAFF PUBLIC WORKS DEPARTMENT STAFF - by Division CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 228 CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 229 GENERAL ENGINEERING The General Engineering program provides oversight for the City’s engineering activities not related to private development. This includes the design, management, and administration of the Capital Improvement Plan to improve the City’s public infrastructure (e.g. streets, storm drains, sidewalks, signalized intersections, parks, and medians) with an emphasis on delivering capital projects within planned schedules and budgets and department staff applying for annual grant opportunities. General Engineering operations also include traffic management, the development of Geographic Information System (GIS) data to manage the City’s infrastructure, and processing annexation requests, right-of-way, and property boundary issues. BUDGET OVERVIEW Notable Budget Changes  Additional funding for the City’s Traffic Consulting Engineer Planned General Engineering operations for FY 2016/17 are consistent with the prior year’s functions and service levels, which focus on providing support for 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 anticipates approximately $100,000 will be received for encroachment permits in FY 2016/17. Potentially, another $223,000 of encroachment fee revenue may come in from PGE during FY 2016/17 as a result of PG&E’s plan to put a new gas line in along Saratoga Avenue, however due to some uncertainty of the project’s implementation and timeline, the revenue is not budgeted for FY 2016/17. While most of General Engineering’s budgeted operating expenditures remain the same, an additional $25,000 was budgeted for the City’s Traffic Engineer. 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. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 230 GENERAL ENGINEERING FY 2016/17 WORKPLAN PRIORITIES Capital Improvement Program Oversight – Provide plans, specifications, estimates and right-of-way plans, coordinate consultants, and administer contracts. FY 2016/17 CIP Project oversight includes Residential Street Reconstruction, El Camino Grande Storm Drain Pump, Long Term Trash Plan Storm Drain Capture Devices, Turf Reduction Renovation Program, Quarry Park Right-of-Way Acquisitions, Highway 9 Safety Project Phase IV, Guava Court Railroad Crossing, Quito Bridge Replacement Project, and Prospect Road Median Improvements. Traffic Management – Receive resident traffic safety concerns and investigate; by means of the city’s Traffic Engineer and Traffic Safety Commission as needed. The City increased the Sheriff’s contract in FY 2014/15 and added approximately 1,800 deputy hours for traffic control services. 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 that will be implemented in FY2016/17 include more pedestrian warning lights nearby schools, speedbumps, and other traffic calming measures. 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 131,417 117,702 120,470 90,250 180,687 100,250 Charge for Services - - - - - - Other Sources 19,971 - 97,600 - 2,029 - TOTAL REVENUES 151,388$ 117,702$ 218,070$ 90,250$ 182,716$ 100,250$ EXPENDITURES Salaries and Benefits 309,708 326,784 369,338 341,749 342,848 354,487 Operating Expenditures Materials & Supplies 1,945 2,183 3,426 3,100 2,595 3,550 Fees & Charges 23,277 23,225 23,138 25,030 23,453 25,030 Consultants & Contract Services 52,145 58,103 55,986 81,000 67,092 104,125 Meetings, Events & Training 230 1,601 342 2,100 (672) 2,100 Total Operating Expenditures 77,597 85,111 82,892 111,230 92,467 134,805 Fixed Assets - - - - - - Internal Service Charges 89,603 90,784 80,384 82,997 82,997 82,311 TOTAL EXPENDITURES 476,908$ 502,680$ 532,614$ 535,976$ 518,312$ 571,603$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 231 GENERAL ENGINEERING 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 0.75 Administrative Analyst I/II 0.45 0.50 0.45 0.45 0.45 Office Specialist II/III 0.25 0.25 0.25 0.25 0.25 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 2.05 2.10 2.05 2.05 2.05 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Engineering Inspectors 2,668 2,668 2,668 2,668 2,668 Maintenance Worker - - - - - Engineering Intern - - 200 200 320 TOTAL ANNUAL HOURS 2,668 2,668 2,868 2,868 2,988 GENERAL ENGINEERING STAFF CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 232 GENERAL ENGINEERING 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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: 95%100%100%100%100% b.Maintain average pavement condition index at a rating of 70 or above: Yes Yes Yes Yes Yes c. Estabilsh best practices roadway maintenance plans (i.e. resurfacing, pothole repairs, tree pruning, weed control, etc.) Yes Yes Yes Yes Yes 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.18 18 18 18 18 2.180 225 200 277 225 3.8 5 5 1 1 4.15 12 10 23 10 Maintain safe, well-functioning roadway infrastructure. Increase roadways safety through effective traffic management practices. Number of traffic concerns investigated and completed: Number of encroachment permits issued: Number of contracts executed: Number of bids issued: CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 233 DEVELOPMENT ENGINEERING 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 OVERVIEW Notable Budget Changes:  None 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 a few small subdivisions to the City in the last few years. FY 2016/17 revenues are based on basic home remodeling, upgrade projects, and small development projects. As the City of Saratoga is mostly built-out, subdivisions are rare and unpredictable, and therefore not included in budgeted revenue. FY 2016/2017 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. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 234 DEVELOPMENT ENGINEERING FY 2016/17 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 and 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits (1,203) 1,090 1,719 500 - - Charge for Services 145,435 167,924 137,936 73,500 311,073 72,000 Other Sources - - - - - - TOTAL REVENUES 144,232$ 169,014$ 139,654$ 74,000$ 311,073$ 72,000$ EXPENDITURES Salaries and Benefits 163,747 168,400 149,277 177,858 175,943 178,052 Operating Expenditures Materials & Supplies 752 50 499 300 262 300 Fees & Charges 288 288 240 250 288 - Consultants & Contract Services 138 1,710 137 2,700 2,980 2,700 Meetings, Events & Training - - - - - - Total Operating Expenditures 1,178 2,047 876 3,250 3,530 3,000 Fixed Assets - - - - - - Internal Service Charges 40,769 42,702 44,167 48,172 48,172 52,640 TOTAL EXPENDITURES 205,693$ 213,150$ 194,320$ 229,280$ 227,645$ 233,692$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 235 DEVELOPMENT ENGINEERING 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 - - - - - Administrative Analyst I/II - - - - - Office Specialist II/III 0.25 0.25 0.25 0.25 0.25 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 0.95 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Engineering Inspectors 92 92 92 92 92 Maintenance Worker - - - - - Engineering Intern - - - - - TOTAL ANNUAL HOURS 92 92 92 92 92 DEVELOPMENT ENGINEERING STAFF CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 236 DEVELOPMENT ENGINEERING 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a.Percentage of development applications reviewed within 30 days: 90%90%90%92%90% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.40 35 35 60 35 2.26 12 12 30 15 3.Information not available Information not available Information not available 2 0 Maintain a high quality of life through development review by adhering to City standards. Number of development applications processed: Number of subdivision plancheck reviews processed: Development applications requiring geologic review: CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 237 ENVIRONMENTAL SERVICES 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 OVERVIEW Notable Budget Changes:  Additional funding was provided for environmental program increases. 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. The City also receives a vehicle impact fee charged to ratepayers for wear and damage to City roadways caused by hauler vehicles. This fee is applied towards street resurfacing in the Capital Budget. A recent study of the impact of WVC&R’s new vehicles recommended a vehicle impact fee of $351,300. Program expenses are comprised of staff time and costs associated with environmental programs and regulatory requirements. Estimated expenditures include $224,000 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, $52,000 for West Valley Sanitation District’s storm drain cleaning, and $184,000 for Street Sweeping. The remaining costs reflect staff time and internal service charges. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 238 ENVIRONMENTAL SERVICES FY 2016/17 WORKPLAN PRIORITIES Clean Water Program – Collectively, the Cities of Saratoga, Campbell, Monte Sereno, and the Town of Los Gatos participate in the Clean Water Program for administrative guidance and implementation compliance of the Regional NPDES (National Pollution Discharge Elimination System) Stormwater Permit. The Program is paid for by the participating cities and includes permit administration, public outreach, code compliance, attendance at local storm water meetings, and preparation of the City’s Annual Report submitted to the Regional Water Board. Solid Waste Management - Garbage and recycling collection services in the City of Saratoga are managed by the West Valley Solid Waste Management Authority, which is comprised of 4 member agencies: Saratoga, Campbell, Los Gatos, and Monte Sereno. In December 2013, the Authority approved an agreement with West Valley Collection & Recycling for garbage and recycling services. The new agreement runs from March 1, 2014 to February 2024. The agreement increases the amount of materials that are accepted in the recycling, including some electronic waste, and includes provisions to convert the garbage company fleet to compressed natural gas within the first few years of the agreement. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Franchise Fees 163,954 163,954 164,589 166,638 167,113 167,113 Intergovernmental Revenues 39,249 26,533 27,201 22,000 29,273 20,000 Fees, Licenses and Permits - - - - - - Charge for Services - - - - - - Other Sources - - - - - - TOTAL REVENUES 203,204$ 190,487$ 191,790$ 188,638$ 196,386$ 187,113$ EXPENDITURES Salaries and Benefits 127,964 139,583 116,245 139,638 138,509 141,304 Operating Expenditures Materials & Supplies - - 6 - - - Fees & Charges 223,509 240,492 251,248 289,222 278,490 300,429 Consultants & Contract Services 243,899 239,263 220,412 307,184 219,569 299,500 Meetings, Events & Training - - - - - - Total Operating Expenditures 467,408 479,754 471,667 596,406 498,059 599,929 Fixed Assets - - - - - - Internal Service Charges 23,651 23,977 27,431 29,087 29,087 28,056 TOTAL EXPENDITURES 619,024$ 643,314$ 615,342$ 765,131$ 665,655$ 769,289$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 239 ENVIRONMENTAL SERVICES 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 0.45 0.50 0.45 0.45 0.45 Office Specialist II/III 0.25 0.25 0.25 0.25 0.25 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 1.00 0.95 0.95 0.95 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Engineering Inspectors - - - - - Maintenance Worker - - - - - Engineering Intern - - - - - TOTAL ANNUAL HOURS - - - - - ENVIRONMENTAL ENGINEERING STAFF CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 240 ENVIRONMENTAL SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a.Tons of solid waste collected in Saratoga:28,887 28,362 29,000 27,967 28,000 b.Tons of solid waste diverted from landfills:16,992 16,344 16,900 15,200 15,000 c.Meet State requirements for garbage diversion:Yes Yes Yes Yes Yes 2. a.Percentage of regional meetings attended:90%100%90%100%100% b. Percentage of required reports completed and submitted by deadline: 100%100%100%100%100% 3 a.Percentage of regional meetings attended:90%100%90%100%100% b. Respond to reports of illicit and illegal discharges :100%100%100%100%100% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1 563 550 676 675 950 2 Miles of streets swept per month:550 550 550 550 550 3 16 15 15 15 15 Number of Saratoga residents participating in Countywide Household Hazardous Waste Program: Number of bags of garbage collected at creek clean-up events: Provide effective oversight of waste collection and recycling programs. Meet requirements of the Non-Point Source Pollution Prevention Permit specified for City staff: Protect Saratoga's natural environment throught participation in the West Valley Clean Water Program. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 241 STREETS & STORM DRAINS 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 OVERVIEW Notable Budget Changes:  Public Works Inspection temporary staff funding shifted from the Capital budget into the Streets Program Operating Budget Approximately $1.538 million for street resurfacing is budgeted for FY 2016/17. 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 2016/17. The remainder of the expenditure budget is fairly consistent with past years. Overall, the Streets & Storm Drains Program budget provides lean and efficient support for the City’s objective to provide safe, well-functioning beautiful infrastructure (curbs, storm drains, sidewalks, medians, hillside retaining walls). CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 242 STREETS & STORM DRAINS FY 2016/17 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 maintaining approximately 15,000 signs and street restriping as needed. Council Policy effective FY 2016/17 sets a goal of $2 million of funding be designated for Street Resurfacing in the Capital Budget. While this goal is not yet attainable, the FY 2016/17 Capital Budget includes $1.538 million dollars of funding for resurfacing work. 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 $200,000 can be utilized to address infrastructure repairs in a more cost effective manner. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues 169,433 177,375 185,393 190,000 186,832 187,000 Fees, Licenses and Permits - - - - - - Charge for Services 798 68,436 1,240 10,000 3,685 - Other Sources - - - - 4,264 - TOTAL REVENUES 170,231$ 245,811$ 186,633$ 200,000$ 194,781$ 187,000$ EXPENDITURES Salaries and Benefits 854,558 922,913 938,074 983,502 1,004,916 1,139,811 Operating Expenditures Materials & Supplies 8,479 10,700 10,144 14,900 11,751 12,300 Fees & Charges 27,771 29,952 31,721 22,200 32,962 22,200 Consultants & Contract Services 60,287 47,945 88,809 65,000 57,087 65,000 Meetings, Events & Training 4,568 4,852 6,556 6,200 1,960 6,500 Total Operating Expenditures 101,105 93,449 137,230 108,300 103,760 106,000 Fixed Assets - - - - - - Internal Service Charges 328,773 364,878 378,965 338,434 338,434 347,219 TOTAL EXPENDITURES 1,284,436$ 1,381,240$ 1,454,269$ 1,430,236$ 1,447,110$ 1,593,030$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 243 STREETS & STORM DRAINS 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 Full Time Equivalents (FTE)* 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 - - - - - 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 1.00 2.00 2.00 2.00 2.00 Street Maintenance Specialist 1.00 - - - - 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 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Engineering Inspectors - - - - - Maintenance Worker - - - - - Engineering Intern - - - - - TOTAL ANNUAL HOURS - - - - - STREETS & STORM DRAINS STAFF CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 244 STREETS & STORM DRAINS 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a.Maintain Pavement Condition Index average above 70 (out of 100 total points): 76 76 69 69 70 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 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.1,150 1,500 1,500 1,500 1,500 2.$466,800 $0 $0 $0 $0 Number of signs installed and replaced: Amount of grant funding the City received for street resurfacing: Maintain safe, well functioning infrastructure. To provide safe and functional roadway systems throughout the City. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 245 PARKS & LANDSCAPE MAINTENANCE 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 & Landscape 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 OVERVIEW Notable Budget Changes:  Six months of additional funding for new Prospect Road Medians landscape services.  Additional one-time funding to remove a hazardous deck at Wildwood Park, and put a new roof on a Kevin Moran Park shed  Additional funding to increase park janitorial services on holidays and Mondays.  Increased frequency of turf sanding treatments to improve sport fields. 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 oversight, and for engineering, legal, and maintenance costs. In prior years, the Parks & Landscape Maintenance program also oversaw the Park’s Sport Use Agreements and collected this revenue. Those duties were transferred to the Recreation Department in mid-FY 2014/15, and the revenues were shifted to Recreation effective with the FY 2015/16 budget year. The $40,000 field rental cost for Prospect High School fields also shifted to the Recreation Department’s Facility Rentals budget. The Park & Landscape Maintenance program expenditure budget includes funding for landscaping materials, supplies, equipment, and services. For FY 2016/17, maintenance costs will increase for median landscaping services to account for six months of median services with the completions of the Prospect Avenue median. Parks janitorial and maintenance services will also rise with an increase in service hours during the summer months. Holidays and Mondays will now be maintained by contract services. Funding to remove a hazardous shed and repair a roof will also receive budget funding. The remainder of the expenditure budget is for staffing and internal service charges. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 246 PARKS & LANDSCAPE MAINTENANCE FY 2016/17 WORKPLAN PRIORITIES Water Efficiency – The Parks and Landscape Maintenance Division will continue to monitor and upgrade the City’s irrigation system as needed, to reduce water use through plant selection, soil management, and irrigation methods. Turf areas will continue to be investigated as potential conversion sites into native landscape, hardscape or mulched areas to reduce water usage. Calsense irrigation controllers have been installed at Beauchamps Park, Bonnet Way, and Fruitvale Avenue, to increase water efficiency. The City converted over 37,000 square feet of turf to drought tolerant landscaping at Beauchamps Park in FY 2014/15, and another 22,000 square feet at Kevin Moran Park and Saratoga Prospect Center in FY 2015/16. Another 16,000 square feet of turf reductions are planned for FY 2016/17. Playground Safety Improvements – Staff continues to oversee the safety and structural integrity of playground equipment at all parks. Improvements include converting sand surfaces to engineered wood fiber material, as mandated by the “Fall Zone/Impact Attenuation Guidelines.” Playground Monitoring – Monitor playgrounds on an on-going basis with regards to a 15-25 year replacement program. Replacement criteria will be based on major equipment wear and tear and changes in safety regulations on outdated structures. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits - - - - - - Charge for Services 167,320 163,712 169,429 170,134 179,667 170,727 Rental Income 128,447 121,078 79,791 2,000 3,000 2,000 Other Sources 2,925 7,190 5,775 2,500 4,190 2,500 TOTAL REVENUES 298,692$ 291,980$ 254,995$ 174,634$ 186,857$ 175,227$ EXPENDITURES Salaries and Benefits 884,769 891,029 912,701 983,530 984,897 1,037,253 Operating Expenditures Materials & Supplies 65,340 82,078 73,592 86,300 85,348 79,500 Fees & Charges 247,891 271,829 203,027 186,575 196,716 184,325 Consultants & Contract Services 438,170 467,766 517,302 570,220 576,697 597,720 Meetings, Events & Training 80 2,014 1,851 1,500 1,811 1,500 Total Operating Expenditures 751,481 823,687 795,771 844,595 860,572 863,045 Fixed Assets - - 35,343 - - 10,000 Internal Service Charges 319,909 378,862 408,178 354,865 354,865 349,450 TOTAL EXPENDITURES 1,956,160$ 2,093,578$ 2,151,993$ 2,182,990$ 2,200,334$ 2,259,748$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 247 PARKS & LANDSCAPE MAINTENANCE 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 Full Time Equivalents (FTE)* 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 - - - - - 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 1.00 1.75 1.75 Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III 5.75 5.75 5.75 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 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Engineering Inspectors - - - - - Maintenance Worker - - - - - Engineering Intern - - - - - TOTAL ANNUAL HOURS - - - - - PARKS & LANDSCAPING STAFF CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 248 PARKS & LANDSCAPE MAINTENANCE 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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: 1 3 1 0 1 c.Turf removed and converted to landscape or hardscape for water conservation (in square feet):10,250 7,000 37,087 22,174 16,096 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.12 12 13 Moved to Recreation Moved to Recreation 2.125 125 125 189 189 3.70 40 40 40 30 4.7 7 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: Protect Saratoga's natural beauty by maintaining parks and open space. Protect the environment through sustainable practices. Maintain safety standards in parks and playgrounds. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 249 VEHICLE & EQUIPMENT MAINTENANCE 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 OVERVIEW 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 $275,000 for FY 2016/17. Repair costs are mitigated due to consistent maintenance practices for vehicles and equipment, and from regular assessments to determine if vehicles or equipment should be replaced. Accidents, though infrequent, are costly when they occur, therefore a contingency is built into the repairs and maintenance budget. And fortunately, a reduction in the cost of fuel has provided some relief to the generally increasing expenditure trajectory. The chargeback is set slightly higher than operating expenditure to increase fund balance reserves in line with Council policy. This budget supports Council’s objective to maintain vehicles and equipment in a safe, secure, sustainable, and cost effective manner. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 250 VEHICLE & EQUIPMENT MAINTENANCE FY 2016/17 WORKPLAN PRIORITIES Fleet Maintenance – The Vehicle & Equipment Maintenance program tracks vehicle and equipment repair and maintenance history. Staff will continue to refine maintenance schedules and recordkeeping activities to ensure all City vehicles & equipment are included in replacement schedules. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 23,031 10,427 36,350 115,565 134,219 184,604 Total Beginning Fund Balance 23,031$ 10,427$ 36,350$ 115,565$ 134,219$ 184,604$ Revenues Internal Service Charges 215,000 250,000 300,000 275,000 275,003 275,000 TOTAL REVENUES 215,000$ 250,000$ 300,000$ 275,000$ 275,003$ 275,000$ Operating Transfers In Transfer In - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ TOTAL SOURCE OF FUNDS 238,031$ 260,427$ 336,350$ 390,565$ 409,222$ 459,604$ USE OF FUNDS EXPENDITURES Salaries and Benefits 76,929 79,697 81,468 88,088 86,413 92,449 Operating Expenditures Materials & Supplies 63,308 58,215 43,384 61,500 41,888 61,500 Fees & Charges 5,055 5,249 5,265 6,000 6,384 6,000 Consultant & Contract Services 40,587 37,007 44,258 53,000 42,175 50,000 Meetings & Training - - - - - - Fixed Assets - - - - - - Internal Service Charges 41,726 43,910 46,410 47,758 47,758 49,084 Total Expenditures 227,604$ 224,078$ 220,785$ 256,346$ 224,618$ 259,033$ Operating Transfers Transfers Out - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned 10,427 36,350 115,565 134,219 184,604 200,570 Total Ending Fund Balance 10,427$ 36,350$ 115,565$ 134,219$ 184,604$ 200,570$ TOTAL USE OF FUNDS 238,031$ 260,427$ 336,350$ 390,565$ 409,222$ 459,604$ SOURCE AND USE OF FUNDS CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 251 VEHICLE & EQUIPMENT MAINTENANCE 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Public Works Director - - - - - Senior Civil Engineer - - - - - Assistant/Associate Engineer - - - - - Administrative Analyst I/II - - - - - 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 Parks Maintenance Specialist - - - - - Parks Maintenance Worker I/II/III 0.25 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 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Engineering Inspectors - - - - - Maintenance Worker - - - - - Engineering Intern - - - - - TOTAL ANNUAL HOURS - - - - - VEHICLE EQUIPMENT MAINTENANCE STAFF CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 252 VEHICLE & EQUIPMENT MAINTENANCE 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.23 23 23 26 26 2.46 50 46 52 52 3.13 11 13 16 16 Number of oil changes performed per year: Number of required smog checks performed per year: Number of vehicles maintained: Protect natural resources through sustainable practices. Provide safe and functional vehicles and equipment for City use. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 253 EQUIPMENT REPLACEMENT FUND 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 is 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 end 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 vehicle or equipment’s life span could be shorter or longer than expected, but with a replacement fund, adjustments can be made without significantly impacting the ongoing operating budget. BUDGET OVERVIEW Notable Budget Changes:  Replacement expenditures increased to reflect the scheduled replacement of vehicles and equipment. After conducting a long term (35 year) funding requirement review of the replacement program, it was determined that the annual chargeback amount should be reduced from $200,000 down to $125,000 for FY 2015/16. 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. While asset replacement funding may be adjusted over the years as vehicle and equipment costs increase at faster or slower rates than anticipated timeframes, the funding review shows that a $125,000 annual charge will be sufficient for the next seven or eight years under current assumptions. A $25,000 annual increase to the chargeback amount will be needed at the end of this period. Replacement asset scheduled for FY 2016/17 are identified in a following schedule. Included in this list are two leased electric vehicles. New leases require an initial down and then monthly payments for the next three or so years. This change-over is responsible for the increased fees and charges expenditure in the budget schedule. Staffing is not assigned to this program as the Internal Service Fund operates purely as a funding set-aside for vehicle and equipment replacements. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 254 EQUIPMENT REPLACEMENT FUND 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 437,088 442,088 508,880 649,497 649,497 588,974 Total Beginning Fund Balance 437,088$ 442,088$ 508,880$ 649,497$ 649,497$ 588,974$ Revenues Other Sources - 7,050 6,393 - - - Internal Service Charges 100,000 200,000 200,000 125,000 140,831 125,000 Total Revenues 100,000$ 207,050$ 206,393$ 125,000$ 140,831$ 125,000$ TOTAL SOURCE OF FUNDS 537,088$ 649,138$ 715,273$ 774,497$ 790,328$ 713,974$ USE OF FUNDS EXPENDITURES Operating Expenditures Materials & Supplies - - - - - - Fees & Charges - 11,121 6,733 8,000 7,345 20,000 Consultant & Contract Services - - - - - - Meetings, Events & Training - - - - - - Fixed Assets 95,000 129,138 59,043 196,500 194,010 246,700 Internal Service Charges - - - - - - Total Expenditures 95,000$ 140,258$ 65,775$ 204,500$ 201,355$ 266,700$ Operating Transfers Transfers Out - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned 442,088 508,880 649,497 569,997 588,974 447,274 Total Ending Fund Balance 442,088$ 508,880$ 649,497$ 569,997$ 588,974$ 447,274$ TOTAL USE OF FUNDS 537,088$ 649,138$ 715,273$ 774,497$ 790,328$ 713,974$ SOURCE AND USE OF FUNDS CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 255 EQUIPMENT REPLACEMENT FUND FY 2016/17 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. 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 Estimated Current Yr Current Asset Replacement Program Asset # Purch Vehicle / Equipment Life Purpose Cost Vehicles Parks 112 2006 Chevy 3500 Dump Truck 10 Parks 2 man crew truck 60,000 Parks 113 2006 Chevy 3500 Dump Truck 10 Parks 2 man crew truck 60,000 Facility Maint 118 2007 Silverado Long Bed 10 Facilities Lead truck 28,000 Development 127 2014 *Chevy Volt Hybrid 3 Arborist Automobile 10,000 Shared Allocation 128 2014 *Chevy Volt Hybrid 3 Pool Automobile 10,000 Equipment Streets E001 1996 Paint Sprayer Graco 3500 20 Graffiti abatement 3,500 Streets E006 2001 Graco Line Lazzar III 5900 15 Roadway Striper 8,500 Streets E007 2001 Graco Line Driver 15 Motorized Attachment 7,500 Streets E010 2004 Graco Line Lazzar IV 3900 12 Roadway Striper 7,500 Streets E015 2001 SASE Scarifier (Grinder)16 Concrete tool 13,200 Parks E035 2006 Toro Turf Utility Vehicle 10 Parks vehicle 16,000 Parks E047 2006 Aerator Spiker 10 Lawn maintenance 10,000 Parks E023 2009 John Deere Gator 8 Parks vehicle 16,000 Parks E046 2009 John Deere Bunker Rake 8 Sports field machine 16,500 TOTAL 266,700$ 2016/17 VEHICLE & EQUIPMENT REPLACEMENT SCHEDULE * Leased vehicles have an initial lease cost and subsequent monthly lease payments rather than an estimated replacement cost. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 256 CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 257 LANDSCAPE & LIGHTING DISTRICTS The City maintains 28 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 persons 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. SUMMARY BUDGET OVERVIEW Notable Budget Changes:  No notable changes The Landscape & Lighting District Fund budget schedule presented on the following page is a summary of 28 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 building fund balance levels to provide sufficient cash flow balances, and/or for use in future year’s repairs and projects. An adequate reserve balance creates a level of protection to both ensure the funds have working capital and to prevent the City from paying for unplanned costs up front, and waiting to be repaid in following years. CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 258 LANDSCAPE & LIGHTING DISTRICTS FY 2016/17 WORKPLAN PRIORITIES District Assessments – Staff will continue to closely monitor all 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 562,504 621,947 733,836 867,648 867,648 1,005,796 Total Beginning Fund Balance 562,504$ 621,947$ 733,836$ 867,648$ 867,648$ 1,005,796$ Revenues Property Taxes 193,634 211,010 232,659 219,897 248,037 228,560 L&L Assessments 287,489 306,844 323,031 364,111 322,693 394,173 Other Sources 1,964 3,453 10,793 1,859 29,097 2,278 Total Revenues 483,087$ 521,307$ 566,483$ 585,867$ 599,827$ 625,011$ Operating Transfers In Transfer in from CIP - - - -$ - -$ Total Operating Transfers In -$ -$ -$ -$ -$ -$ TOTAL SOURCE OF FUNDS 1,045,591$ 1,143,254$ 1,300,319$ 1,453,515$ 1,467,475$ 1,630,808$ USE OF FUNDS Expenditures Operating Expenditures Materials & Supplies - - - - - - Fees & Charges 286,701 265,892 283,353 294,574 285,034 285,107 Consultant & Contract Services 136,943 143,526 149,318 356,226 176,644 429,823 Total Operating Expenditures 423,644 409,418 432,671 650,800 461,679 714,930 Total Expenditures 423,644$ 409,418$ 432,671$ 650,800$ 461,679$ 714,930$ Ending Fund Balance Unassigned 621,947 733,836 867,648 802,715 1,005,796 915,878 Total Ending Fund Balance 621,947$ 733,831$ 867,648$ 802,715$ 1,005,796$ 915,878$ TOTAL USE OF FUNDS 1,045,591$ 1,143,249$ 1,300,319$ 1,453,515$ 1,467,475$ 1,630,808$ SOURCE AND USE OF FUNDS CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 259 LANDSCAPE & LIGHTING DISTRICT Number of Parcel Total Total Zone # Assessment District Parcels Assessment Assessment Property Tax Lighting Districts 231 Village Lighting District 781 -$ -$ 74,750$ 232 Azule Lighting District 120 -$ -$ 34,313$ 233 Sarahills Lighting District 64 87.34$ 5,590$ -$ Landscape Districts 241 Arroyo de Saratoga Landscape District 250 113.48$ 28,370$ -$ 242 Bonnet Way Landscape District 41 127.24$ 5,217$ -$ 243 Carnelian Glen 20 219.20$ 4,384$ -$ 244 Cunningham/Glasgow Landscape District 31 311.84$ 9,667$ -$ 245 Fredericksburg Landscape District 85 79.07$ 6,721$ 862$ 246 Greenbriar Landscape District 176 130.88$ 23,034$ 6,333$ 247 Kerwin Ranch Landscape District 16 845.38$ 13,526$ -$ 248 Leutar Court Landscape District 9 476.00$ 4,284$ -$ 249 Manor Drive Landscape District 29 79.45$ 2,304$ 4,487$ 251 McCartysville Landscape District 48 323.54$ 15,530$ -$ 252 Prides Crossing Landscape District 864 82.65$ 71,410$ -$ 253 Saratoga Legends Landscape District 15 709.67$ 10,645$ -$ 254 Sunland Park Landscape District 200 101.76$ 20,352$ -$ 255 Tricia Woods Landscape District 9 287.22$ 2,585$ -$ 256 Allendale Landscape District 43 91.02$ 3,914$ -$ Landscape & Lighting Districts 257 Covina Landscape & Lighting District 192 197.00$ 37,824$ 271 Beauchamps Landscape District 55 210.64$ 11,585$ -$ 272 Bellgrove Landscape & Lighting District 94 785.13$ 73,802$ -$ 273 Gateway Landscape & Lighting District 22 718.95$ 15,817$ -$ 274 Horseshoe Landscape & Lighting District 53 254.87$ 13,508$ -$ 275 Quito Lighting District 698 -$ -$ 66,496$ 276 Tollgate Landscape & Lighting District 61 103.64$ 6,322$ -$ 277 Village Commercial Landscape District 132 -$ -$ 41,319$ 278 Westbrook Landscape & Lighting Dist 92 50.08$ 4,607$ -$ Storm Drain District 291 Hill Ave Storm Water District 5 635.00$ 3,175$ -$ 28 Assessment Districts 4,205 394,173$ 228,560$ Annual District Assessments FY 2016/17 CITY OF SARATOGA PUBLIC WORKS DEPARTMENT 260 CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 261 RECREATION & FACILITIES DEPARTMENT 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 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 CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 262 Council Strategic Goal: Facility & Infrastructure: Maintain 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 DEPARTMENT BUDGET SUMMARY The Department’s FY 2016/17 General Fund budget revenue is expected to grow slightly from current year actual revenues, with some corresponding expenditure increases for instructor services. The overall cost recovery percentage is expected to remain approximately the same as previous years. An upgrade to the existing RecTrac and WebTrac registration software that was completed in April is expected to improve systems and increase efficiencies in the Department once complete implementation is finished. An internal promotion of a Recreation Coordinator to a Recreation Supervisor has increased operational flexibility and oversight without increasing FTEs. The FY 2016/17 staffing levels will continue the prior year FTE reductions of one Recreation Supervisor to 90% and one Recreation Coordinator position to 85%, with the second Recreation Supervisor staffed at a full 1.0 FTE. The departmental staff reductions are offset by temporary staff support for facility and program oversight, thereby providing salary savings without significant loss of customer service support of any of 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, .05 FTE of the Director position will continue to be assigned to the Emergency Preparedness program for this endeavor. 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 infrastructure 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. 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. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 263 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 8,725 17,799 9,837 10,100 12,008 8,900 Charge for Services 634,760 645,114 595,208 693,200 617,303 626,500 Rental Income 232,236 247,604 300,567 402,600 440,088 413,112 Other Sources 45 81 25 - 1 - TOTAL REVENUES 875,765$ 910,597$ 905,638$ 1,105,900$ 1,069,399$ 1,048,512$ EXPENDITURES Salaries and Benefits 647,904 667,895 662,642 714,793 677,759 733,880 Operating Expenditures Materials & Supplies 22,596 27,105 20,619 38,950 34,212 42,220 Fees & Charges 20,955 20,404 22,021 63,885 29,087 65,460 Consultant & Contract Serv 382,334 403,490 370,831 439,900 407,783 432,800 Meetings, Events & Training 379 1,428 2,119 5,850 2,366 2,550 Total Operating Expenditures 426,264 452,427 415,590 548,585 473,448 543,030 Fixed Assets - - - - - - Internal Service Charges 244,325 262,955 285,194 323,570 323,570 332,541 TOTAL EXPENDITURES 1,318,493$ 1,383,277$ 1,363,425$ 1,586,948$ 1,474,777$ 1,609,451$ 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Recreation Services 938,742 961,244 940,097 1,071,231 1,017,682 1,075,400 Teen Services 67,955 57,836 47,073 52,915 53,228 52,803 Facility Rentals 311,796 364,197 376,256 462,802 403,867 481,248 TOTAL GENERAL FUNDS 1,318,493$ 1,383,277$ 1,363,425$ 1,586,948$ 1,474,777$ 1,609,451$ INTERNAL SERVICES FUNDS Facility Maintenance 771,882 817,506 813,842 879,629 804,049 900,766 Facility FFE Replacement - - - 169,000 40,778 246,544 TOTAL INTERNAL SERVICES 771,882$ 817,506$ 813,842$ 1,048,629$ 844,827$ 1,147,310$ TOTAL EXPENDITURES 2,090,375$ 2,200,783$ 2,177,268$ 2,635,577$ 2,319,604$ 2,756,760$ DEPARTMENTAL EXPENDITURES - by FUND / DIVISION GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 264 DEPARTMENT ORGANIZATION CHART Recreation & Facilities Director 1.0 FTE Recreation Supervisor .90 FTE Recreation Coordinator .75 FTE Facility Coordinator .60 FTE Recreation Supervisor 1.0 FTE Office Specialist 1.0 FTE Facility Manager 1.0 FTE Facility Maintenance Lead 1.0 FTE Facility Maintenance Worker CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 265 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Recreation & Facilities Director 0.75 0.70 0.65 0.65 0.65 Senior Recreation Supervisor - - - - - Recreation Supervisor 1.00 1.00 1.00 0.90 1.90 Recreation Coordinator 2.00 2.00 2.00 1.85 0.85 Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist II/III 1.00 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 2.00 1.00 1.00 TOTAL FTE's 9.35 9.30 9.25 8.00 8.00 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Facility Attendents 1,500 1,500 1,750 1,900 1,900 Recreation Leaders 500 3,335 3,300 2,004 2,004 Graphic Design Assistant - - - 850 - Recreation Intern - - - 480 320 Asst Recreation Coordinator - - - - 1,000 TOTAL ANNUAL HOURS 2,000 4,835 5,050 5,234 5,224 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff by Program Funded Funded Funded Funded Funded Recreation Services 3.90 3.85 3.85 3.55 3.55 Teen Services 0.30 0.30 0.25 0.30 0.25 Facililty Rentals 1.50 1.50 1.50 1.30 1.35 Building Maintenance 3.65 3.65 3.65 2.85 2.85 Total Recreation Staff 9.35 9.30 9.25 8.00 8.00 Staff allocations in other Department Programs Non-Departmental: Risk Management 0.25 0.30 0.30 0.30 0.30 Public Safety: Emergency Preparedness - - 0.05 0.05 0.05 TOTALS 9.60 9.60 9.60 8.35 8.35 RECREATION & FACILITIES DEPARTMENT STAFF RECREATION & FACILITIES STAFF - by Division The Recreation Department Staff FTE schedule includes General Fund and Internal Fund programs assigned to this department. While 30% of the Recreation & Facilities Director's FTE assigned to the Risk Liability division in the Non- Departmental section, and 5% assigned to the Emergency Preparedness division in the Public Safety Department is not reflected in the Recreation & Facility Department total, it is reflected in the Total Staff schedule. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 266 CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 267 RECREATION SERVICES Recreation Services plans, organizes, schedules, promotes, supervises, and evaluates over 1,200 classes and activities per year. This involves managing approximately 54 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 promotional campaigns, and publishing a quarterly (seasonal) full color recreation program Activity Guide that is mailed to all residents and non-resident users. A supplemental full color 16-page summer camp guide is also published and mailed to past participants. In addition, Recreation Services provides an independently contracted preschool program five days a week; works cooperatively with West Valley College, Redwood Middle School and Saratoga High School for use of their facilities for Department programs; and provides Health and Wellness and Arts and Enrichment programs with classes, workshops, demonstrations, and activities. BUDGET OVERVIEW Notable Budget Changes  Revenues have decreased in recent years, proportionate with a decrease in participation in programs. Staff is actively pursuing additional partnerships and collaboration with other agencies such as the City of Campbell, the City of Cupertino, LGS Recreation, and private contract providers.  Salaries & Benefits continue last year’s budgeted reduction of .10 FTE Recreation Supervisor, and .15 FTE Recreation Coordinator. The positions are backfilled in part with temporary staffing.  Excursion costs are expected to increase with a corresponding increase in expenses due to growing costs of new trips. The customer bases remains steady. The Recreation Services program has four program revenue sources to support services: excursion fees, classes and special program fees, in-house camp programs (summer, winter, and spring), and advertisements in the Recreation Activity Guide. Staff is planning additional marketing to targeted populations for all programs. As noted above, class fees have seen a decline in recent years, however camps and excursions remain strong and continue to increase as staff strives to grow the customer base with expanded and popular offerings. 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 minor operational expenses and internal service charges. In FY 2012/13, the Department had an opportunity to restructure due to retirements, and consequently made a few organizational changes. These changes continue to be refined, and distributions of duties to increase efficiencies are ongoing. In FY 2014/15, the Department reinstated an in-house camp program, developed and led new excursions, oversaw production of an enhanced activity guide, provided additional evening coverage at the Community Center, increased marketing efforts through social media and partnerships, and increased visibility at special events. In FY 2015/16, a Recreation Coordinator was promoted to a Recreation Supervisor to recognize their increased workload and the addition of one Commission liaison assignment. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 268 RECREATION SERVICES FY 2016/17 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 2016/17 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits 8,725 17,799 9,837 10,100 12,008 8,900 Charge for Services 633,179 644,413 593,733 690,000 615,237 621,500 Rental Income - - - - - - Other Sources - - - - - - TOTAL REVENUES 641,904$ 662,212$ 603,570$ 700,100$ 627,245$ 630,400$ EXPENDITURES Salaries and Benefits 441,215 435,727 444,981 488,432 467,147 501,220 Operating Expenditures Materials & Supplies 19,607 20,419 16,160 29,700 26,679 28,100 Fees & Charges 20,535 19,803 21,752 23,485 28,922 25,185 Consultant & Contract Serv 381,219 403,490 370,354 437,250 405,629 430,000 Meetings, Events & Training 323 1,428 2,057 5,350 2,292 1,550 Total Operating Expenditures 421,684 445,140 410,322 495,785 463,521 484,835 Fixed Assets - - - - - - Internal Service Charges 75,842 80,378 84,794 87,014 87,014 89,345 TOTAL EXPENDITURES 938,742$ 961,244$ 940,097$ 1,071,231$ 1,017,682$ 1,075,400$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 269 RECREATION SERVICES KEY SERVICES  Plan, organize, schedule, promote, supervise, and evaluate program classes, activities, and events for all ages  Publish recreation activity guides, fliers, brochures, 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 and community based organizations to provide activities Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Recreation & Facilities Director 0.35 0.30 0.30 0.30 0.30 Senior Recreation Supervisor - - - - - Recreation Supervisor 0.90 0.90 0.90 0.85 1.65 Recreation Coordinator 1.90 1.90 1.90 1.65 0.85 Facility Coordinator - - - - - Office Specialist II/III 0.75 0.75 0.75 0.75 0.75 Facility Maintenance Manager - - - - - Facility Maintenance Lead - - - - - Facility Maintenance Worker I/II/III - - - - - TOTAL FTE's 3.90 3.85 3.85 3.55 3.55 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Facility Attendents - - - - - Recreation Leaders 500 3,335 3,300 2,004 2,004 Graphic Design Assistant - - - 850 - Recreation Intern - - - 480 320 Asst Recreation Coordinator - - - - 1,000 TOTAL ANNUAL HOURS 500 3,335 3,300 3,334 3,324 RECREATION SERVICES STAFF CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 270 RECREATION SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a.Offer a variety of new and ongoing recreation activities:993 1190 1089 1214 1200 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: 3 4 4 4 4 2. a.Number of independent instructors providing quality recreation activities: 60 55 60 56 70 b.Percentage of Saratoga "households" using online registration software to register for recreation activites: 19%22%33%54%50% c.Percentage of recreation class participants which agreed activities met or exceeded expectations:100%100%89%89%100% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.6,561 7,107 8,900 8,959 6,000 2.5,121 5,675 7,000 7,445 7,500 3.950 896 1,250 1,518 1,500 Number of recreation activity hours offered: Number of online regestrations: Promote healthy lifestyles and personal growth through organized recreation activities. Number of participant registrations: Partner with the community to improve the quality of life for children, teens, adults, and families. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 271 TEEN SERVICES 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 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 (e.g. 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 OVERVIEW Notable Budget Changes  $3,500 of additional funding is provided for the Teen’s program supplies for fund raising events. Revenue from for the Teen Services program is minimal, coming from fees and charges and a few Youth Commission generated programs and activities. The Teen Services program is primarily limited to overseeing the Youth Commission and providing leadership training to the commissioners. Operating expenditures are minimal, however with Council’s request that Youth Commission members attend community events, funding for materials, supplies, and printing increased for FY 2016/17. In addition to these program’s expenditures, another $6,000 for the Commission’s activities related to community events is funded through the Youth Commission’s budget. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 272 TEEN SERVICES FY 2016/17 WORKPLAN PRIORITIES Leadership Training – Teen Services will oversee the Youth Commission’s participation in the annual CPRS District IV YAC Attack (Youth Advisory Conference) and collaborate with our neighboring cities of Cupertino, Monte Sereno, Los Gatos, and Campbell’s Youth Commissions during FY 2016/17 to sponsor special events for local teens, build developmental assets, and provide leadership training and opportunities for teens and youth in Saratoga. Community Outreach – Teen Services will increase efforts to reach out to young Saratogans; to bring a wider representation of schools to Youth Commission sponsored events (e.g. Walk One Week), provide information about the Commission while participating in downtown events such as St. Paddy’s Day, Tree Lighting Ceremony, Witchy Walk-a-Bout, and to partner with the community to provide opportunities for teens and youth to become more involved and connected with their hometown. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits - - - - - - Charge for Services 1,581 701 1,475 3,200 2,066 5,000 Rental Income - - - - - - Other Sources 45 81 25 - 1 - TOTAL REVENUES 1,626$ 782$ 1,500$ 3,200$ 2,066$ 5,000$ EXPENDITURES Salaries and Benefits 57,261 45,437 33,939 37,072 37,733 32,615 Operating Expenditures Materials & Supplies 306 1,078 1,893 3,700 3,602 6,870 Fees & Charges 78 78 104 100 - 100 Consultant & Contract Serv - - - 150 - 300 Meetings, Events & Training - - - - - 400 Total Operating Expenditures 384 1,156 1,997$ 3,950$ 3,602$ 7,670$ Internal Service Charges 10,310 11,243 11,137 11,893 11,893 12,518 TOTAL EXPENDITURES 67,955$ 57,836$ 47,073$ 52,915$ 53,228$ 52,803$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 273 TEEN SERVICES KEY SERVICES  Provide activities and special events for pre-teens and teens in the community  Provide 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Recreation & Facilities Director 0.10 0.10 0.05 0.05 0.05 Senior Recreation Supervisor - - - - - Recreation Supervisor 0.10 0.10 0.10 0.05 0.20 Recreation Coordinator 0.10 0.10 0.10 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 0.30 0.25 0.30 0.25 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Facility Attendents - - - - - Recreation Leaders - - - - - Graphic Design Assistant - - - - - Recreation Intern - - - - - Asst Recreation Coordinator - - - - - TOTAL ANNUAL HOURS - - - - - TEEN SERVICES STAFF CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 274 TEEN SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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:700 1,000 2,760 2,869 3,000 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% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.700 1,100 3,000 3,000 3,500 2.11 19 27 40 45 Number of teen-age volunteer service hours offered: Number of teen-age volunteers supervised: Promote healthy lifestyles and personal growth through organized recreation activities. Partner with the community to improve the quality of life for teens. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 275 FACILITY RENTALS 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 parks. 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 such 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 OVERVIEW 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 number of standing garden beds at the community garden. Facility Rental Program revenues are expected to bring in about $110,000 for Community Center rentals, another $3,900 for Senior Center rentals, and $6,700 for the Warner Hutton House. The Civic Center Theater will bring in approximately $57,000 and the Saratoga Prospect Center buildings another $96,000. Revenue projections for the Saratoga Prospect Center have increased in recent years as the Friendship Hall building is becoming increasingly more recognized for its rental potential, particularly for dances. Plot rentals at the Community Garden at El Quito Park , now exclusively reserved for Saratoga residents, are expected to bring in $3,600, and day-use rentals from the City’s parks (exclusive of sport user agreements) will bring in around $18,050 over the year. In fiscal 2016/17, rental fees for the use of the Sports Fields are expected to total $113,000 for the year. 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 expenses have increased as rental activities at the Saratoga Prospect Center have increased. Direct costs for this program are minimal, with $10,500 budgeted for operational supplies. The program’s largest expense is for internal service charges as Facility Rentals accounts for a large percentage of building maintenance and facility furniture, fixture, and equipment replacement expenses. This continues to grow as building maintenance costs are increase each year. The remainder of ongoing facility expenditures are typically held steady each year, however the FY 2016/17 budget includes an additional $3,000 to fund the conversion of some garden plots to standing garden beds to better serve the gardening community. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 276 FACILITY RENTALS FY 2016/17 WORKPLAN PRIORITIES Environmental Sustainability – The Facility Rental division will continue implementing environmental best practices to promote sustainability, educating and encouraging all users to follow existing green building practices for facility and park rentals. Facility Rentals - Recreation & Facilities Department staff will provide high quality, safe, affordable, clean, and enjoyable facilities that are convenient to residents for meetings, parties, receptions, and gatherings in a safe, sustainable, and cost effective manner. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues - - - - - - Fees, Licenses and Permits - - - - - - Charge for Services - - - - - - Rental Income 232,236 247,604 300,567 402,600 440,088 413,112 Other Sources - - - - - - TOTAL REVENUES 232,236$ 247,604$ 300,567$ 402,600$ 440,088$ 413,112$ EXPENDITURES Salaries and Benefits 149,427 186,732 183,722 189,289 172,879 200,045 Operating Expenditures Materials & Supplies 2,684 5,609 2,566 5,550 3,931 7,250 Fees & Charges 342 523 165 40,300 165 40,175 Consultant & Contract Serv 1,115 - 477 2,500 2,154 2,500 Meetings, Events & Training 55 - 63 500 74 600 Total Operating Expenditures 4,196 6,132 3,271 48,850 6,325 50,525 Internal Service Charges 158,173 171,334 189,263 224,663 224,663 230,678 TOTAL EXPENDITURES 311,796$ 364,197$ 376,256$ 462,802$ 403,867$ 481,248$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 277 FACILITY RENTALS KEY SERVICES  Provide safe, pleasant, and clean facilities for use by the general public and key City services (e.g. meetings)  Support tenant needs in the leased 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Recreation & Facilities Director 0.05 0.05 0.05 0.05 0.05 Senior Recreation Supervisor - - - - - Recreation Supervisor - - - - 0.05 Recreation Coordinator - - - - - Facility Coordinator 0.60 0.60 0.60 0.60 0.60 Office Specialist II/III 0.25 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 0.40 0.20 0.20 TOTAL FTE's 1.50 1.50 1.50 1.30 1.35 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Facility Attendents 1,500 1,500 1,750 1,900 1,900 Recreation Leaders - - - - - Graphic Design Assistant - - - - - Recreation Intern - - - - - Asst Recreation Coordinator - - - - - TOTAL ANNUAL HOURS 1,500 1,500 1,750 1,900 1,900 FACILITY RENTALS STAFF CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 278 FACILITY RENTALS 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.572 725 800 950 950 2.13,250 16,900 18,000 18,110 18,200 3.$198 $197 $200 $215 $215 Number of fee-based and no-charge (for City meetings, events, etc.) facility rental hours for public use: Average dollars per receipt: Provide safe, functional, and attractive City buildings for the provision of City services. Number of facility rental applications processed: Provide safe, functional, and attractive City buildings for community use and enjoyment of the public. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 279 FACILITY MAINTENANCE FUND 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 supplies. 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 OVERVIEW Notable Budget Changes:  Contract services were increased with the budgeted addition of $6,000 for EV Station maintenance.  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 nine years of history-based data on actual expenses, minor revisions are included in the FY 2016/17 budget to better reflect actual amounts. 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. After four years of use, the older technology is failing and replacement components, and possibly new station heads, are necessary. 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 $1,000, as well as prevailing wage and certified payroll requirements on some projects. These costly and cumbersome paperwork requirements have in effect eliminated many small, lower cost firms from providing services to the City, and increased costs for those firms who do comply with the new requirements. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 280 FACILITY MAINTENANCE FUND 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 200,926 184,901 199,869 268,326 288,697 391,087 Total Beginning Fund Balance 200,926$ 184,901$ 199,869$ 268,326$ 288,697$ 391,087$ Revenues Other Sources 5,858 7,474 7,299 - 6,439 4,000 Internal Service Charges 749,999 825,000 875,000 900,000 900,001 925,000 Total Revenues 755,857$ 832,474$ 882,299$ 900,000$ 906,440$ 929,000$ Operating Transfers In Transfer In from General Fund - - - - - - Total Operating Transfers In -$ -$ -$ -$ -$ -$ TOTAL SOURCE OF FUNDS 956,782$ 1,017,375$ 1,082,168$ 1,168,326$ 1,195,136$ 1,320,087$ USE OF FUNDS Expenditures Salaries and Benefits 450,377 481,910 458,354 417,699 415,894 416,955 Operating Expenditures Materials & Supplies 37,040 40,244 44,803 52,550 43,515 57,050 Fees & Charges 123,050 130,680 144,549 145,000 141,390 156,300 Consultant & Contract Serv 89,274 87,809 82,790 160,000 99,870 168,500 Meetings, Events & Training 54 298 800 1,000 - 1,000 Fixed Assets - - - - - - Internal Service Charges 72,087 76,565 82,546 103,380 103,380 100,961 Total Expenditures 771,882$ 817,506$ 813,842$ 879,629$ 804,049$ 900,766$ Ending Fund Balance Unassigned 184,901 199,869 268,326 288,697 391,087 419,322 Total Ending Fund Balance 184,901$ 199,869$ 268,326$ 288,697$ 391,087$ 419,322$ TOTAL USE OF FUNDS 956,782$ 1,017,375$ 1,082,168$ 1,168,326$ 1,195,136$ 1,320,087$ SOURCE & USE OF FUNDS CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 281 FACILITY MAINTENANCE FUND FY 2016/17 WORKPLAN PRIORITIES Facility and Infrastructure Project Management – Facility staff will oversee services to undertake 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 Finance area, new appliances in the Community and Prospect centers, an HD sound and projection center at the Grace Building, and improved lighting and access stairs to the KSAR control booth in the Civic Theater, according to the approved schedules. Environmental Sustainability - Staff will continue ongoing energy savings projects such as installing an energy saving furnace in the Public Works area, energy efficient appliances at the Community Center (oven and dishwasher) and Prospect Center (dishwasher), and maintain the EV charging stations in the City. KEY SERVICES  Provide buildings that are clean, safe, and usable for the general 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Recreation & Facilities Director 0.25 0.25 0.25 0.25 0.25 Senior Recreation Supervisor - - - - - Recreation Supervisor - - - - - Recreation Coordinator - - - - - 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 1.60 0.80 0.80 TOTAL FTE's 3.65 3.65 3.65 2.85 2.85 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded Facility Attendents - - - - - Recreation Leaders - - - - - Graphic Design Assistant - - - - - Recreation Intern - - - - - Asst Recreation Coordinator - - - - - TOTAL ANNUAL HOURS - - - - - FACILITY MAINTENANCE STAFF CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 282 FACILITY MAINTENANCE FUND 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.3,586 3,400 3,400 3,560 3,600 2 6 10 10 10 10 3 3 4 4 4 4 4 48 48 48 48 48 Number of work orders completed Setup and takedown of Council Chamber dias Maintain AED units on a monthly basis Refinish wood floors annually Provide safe and functional, City buildings using environmentally sensitive and cost-effective practices. Provide safe, functional, and attractive City buildings for the enjoyment of the public and to house the provision of City services. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 283 FACILITY FURNITURE, FIXTURES & EQUIPMENT REPLACEMENT FUND 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 purchases 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 span, 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. Replacements are those attachable or installed assets that make a building useful to its occupants, such as carpeting, windows, plumbing and electrical fixtures. BUDGET OVERVIEW Notable Budget Changes:  Chargebacks are set at $200,000 per year, and budgeted scheduled replacement costs are $247,544. Additional funding in excess of the current year’s contributions come from prior year fund balance savings. The City’s long term replacement plan allows funding to be accumulated 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 again being accumulated and held for the next round of replacement assets. Careful timing is required to ensure asset replacement costs are fully assessed, and purchases timed as funding becomes available. The annual funding charge-backs were initially set at $200,000 as this level of funding is expected to provide adequate resources to purchase and replace identified facility assets for many years. The long term replacement plan is reassessed each year to include re-assessed replacement cost values, delays or expedited replacements, or to include newly identified and added assets. Replacement funding programmed to be utilized in FY 2016/17 includes: a new oven and dishwasher in the Community Center kitchen, furniture and flooring replacement in the Administrative Services area, a new gas furnace in the Public Works engineering office, lighting and stairway replacements in the Civic Theater, an HD projection system in the Grace Building at Saratoga Prospect Center, and several EV charging stations replacements. CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 284 FACILITY FFE REPLACEMENT FUND KEY SERVICES  Accumulate and provide annual funding for asset replacements  Assess furniture, fixtures, and equipment for proper replacement timing  Identify and procure best solution equipment 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Designated - - - - - - Unassigned - - - - - 339,222 Total Beginning Fund Balance -$ -$ -$ -$ -$ 339,222$ Revenues Other Sources - - - - - - Internal Service Charges - - - 200,000 200,000 200,000 Total Revenues -$ -$ -$ 200,000$ 200,000$ 200,000$ Operating Transfers In Transfer In from CIP - - - - 180,000 - Total Operating Transfers In -$ -$ -$ -$ 180,000$ -$ TOTAL SOURCE OF FUNDS -$ -$ -$ 200,000$ 380,000$ 539,222$ USE OF FUNDS Expenditures Operating Expenditures Fixed Assets - - - 169,000 40,778 246,544 Internal Service Charges - - - - - - Total Expenditures -$ -$ -$ 169,000$ 40,778$ 246,544$ Operating Transfers Transfer Out to General Fund - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned - - - 31,000 339,222 292,678 Total Ending Fund Balance -$ -$ -$ 31,000$ 339,222$ 292,678$ TOTAL USE OF FUNDS -$ -$ -$ 200,000$ 380,000$ 539,222$ SOURCE & USE OF FUNDS CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 285 FACILITY FFE REPLACEMENT FUND Location Asset Lifespan Est. Cost City Hall Admin Services Carpeting 15 25,000$ Public Works Gas Furnace 20 18,000$ Civic Theater Theater Interior Lighting 10 10,000$ Community Center Patio Room Flooring 15 14,000$ Arts & Craft Room Flooring 15 16,000$ Warner Hutton House Grounds Storage Building 20 35,000$ House Tables & Chairs 10 20,000$ Village Library Building Flooring 15 12,000$ Prospect Center Friendship Hall Storage Center 20 35,648$ Friendship Hall Tables & Chairs 10 22,896$ Friendship Hall HD Projection System 10 13,000$ Citywide EV Stations 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 REPLACEMENTS: 246,544$ FURNITURE, FIXTURES & EQUIPMENT REPLACEMENT SCHEUDLE CITY OF SARATOGA RECREATION & FACILITIES DEPARTMENT 286 CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 287 PUBLIC SAFETY DEPARTMENT 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 the Cal-ID program services located in the West Valley sub-station, and 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 2016/17. In subsequent fiscal years it is anticipated that 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. As 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. 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, and implement crime prevention programs CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 288  Emergency Preparedness: Prepare and maintain Emergency Operations Plans; develop staff and community’s emergency awareness and readiness; and ensure inter-agency/multi-agency coordination and preparedness DEPARTMENT BUDGET SUMMARY The Public Safety Services and Emergency Preparedness operations are primarily staffed by external agencies under a contract service arrangement. In past years, City staff was not assigned to this department. However, with the need to prepare for cost recovery efforts, .05 FTE of the Risk Manager is now allocated to the Emergency Preparedness program. 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 and the Sheriff’s Office issues the City a reimbursement if expenditures are less than the estimated annual fee. As this refund amount is undeterminable, 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 uses, 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 from year to year. Emergency Preparedness expenditures are typically stable from year to year however over the last few years the reinstatement of the EPMG grant in FY 2012/13, and then the elimination two years later caused some fluctuation. In FY 2014/15, a small amount of staff support was added to address Cost Recovery preparations. FY 2016/17 expenses are anticipated to remain close to the prior year’s level. CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 289 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Intergovernmental Revenues 186,507 244,766 252,077 230,000 243,478 225,000 Charge for Services 23,270 22,051 21,011 20,000 18,838 20,000 Other Sources 472,776 180,207 187,508 136,025 169,418 137,525 TOTAL REVENUES 682,552$ 447,024$ 460,596$ 386,025$ 431,735$ 382,525$ EXPENDITURES Salaries and Benefits - - 12,853 12,966 13,137 13,201 Operating Expenditures Materials & Supplies 16,262 31,150 12,144 14,500 8,414 12,000 Fees & Charges 39,422 42,534 39,523 43,334 40,896 42,874 Consultants & Contract Services 4,325,820 4,407,188 4,789,188 5,153,244 5,157,244 5,374,750 Meetings, Events & Training 140 111 90 300 76 2,250 Total Operating Expenditures 4,381,644 4,480,983 4,840,946 5,211,378 5,206,630 5,431,874 Fixed Assets - - - - - - Internal Service Charges 10,200 10,401 5,580 6,087 6,087 6,591 TOTAL EXPENDITURES 4,391,844$ 4,491,384$ 4,859,379$ 5,230,431$ 5,225,854$ 5,451,666$ 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND Public Safety Services 4,328,818$ 4,411,156$ 4,792,104$ 5,158,994$ 5,161,618$ 5,380,500$ Emergency Preparedness 63,026 80,227 67,275 71,437 64,236 71,166 GENERAL FUND PROGRAMS 4,391,844$ 4,491,384$ 4,859,379$ 5,230,431$ 5,225,854$ 5,451,666$ GENERAL FUND REVENUES AND EXPENDITURES DEPARTMENTAL EXPENDITURES BY DIVISION / PROGRAM CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 290 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Risk Manager - - 0.05 0.05 0.05 TOTAL FTE's - - 0.05 0.05 0.05 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff by Program Funded Funded Funded Funded Funded Public Safety - - - - - Emergency Preparedness - - 0.05 0.05 0.05 TOTALS - - 0.05 0.05 0.05 NOTE PUBLIC SAFETY DEPARTMENT STAFF PUBLIC SAFETY STAFF - by Division The Risk Manager FTE in FY 2014/15 shown in the schedule above is staffed by the Recreation & Facilities Director, and accounted for in the Recreation & Facilities Department in the Total FTE summary as the Public Safety Department is primarily an external services department. CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 291 PUBLIC SAFETY SERVICES 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 as “the safest city in California” in 2013, and the “12th safest city in the nation” in 2014. 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 had to be reduced in FY 2005/06. 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 with the FY 2014/15 budget. These additional hours will 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. 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. 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; shelter for abandoned, impounded, lost, or stray animals; quarantine and testing of animals; medical services; and licensing of animals. BUDGET OVERVIEW Notable Budget Changes  The FY 2016/17 budgeted amount for the Sheriff contract reflects a $203,000 increase from Cost of Living and operational increases. While General Fund revenue is the primary funding source for Public Safety, designated revenue is received from several operational activities and two statewide funding sources. The Supplemental Law Enforcement Services Fund (SLESF) provides the City with a $100,000 grant to be used 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 agreements, 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 is expected from an allocated share of the State’s Public Safety Sales Tax (Proposition 172). Budgeted revenues for False Alarm Fines, Vehicle Code Bails and Fines, and Parking Citations are expected to bring in approximately $137,500 for the year. San Jose Animal Control Agency’s charges to Saratoga residents for boarding, licenses, and fines will result in $20,000 of revenue to Saratoga. In recent years, the Vehicle Code Bail & Fines Revenue has declined due to higher admin fees and reductions in citations. An increase in the number of property crimes has redirected patrol deputies to focus more on burglary suppression and apprehension of suspects, which has impacted the overall number of parking and moving violation citations. 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 CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 292 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 increase was limited to the cost of living factor, so the annual increase of $203,000 was lower than prior years. The remaining budgeted Public Safety expenditures include minor operational costs for data ticket forms and supplies, and administrative fees for parking tickets. The Cal-ID program, run by the Santa Clara County’s Sheriff’s Office, provides fingerprint identification services as part of the contracted services. 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 states the fee is to 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 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. 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, City of San Jose Police, or Animal Care & Services Division staff. The City of Saratoga is limited to oversight and coordination functions only. CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 293 PUBLIC SAFETY SERVICES FY 2016/17 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 report street hazards that would impact the safe passage of motorists. School Resource Officer – School Resource Officers will remain busy and active throughout 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues 185,660 232,490 252,057 230,000 243,478 225,000 Charge for Services 23,270 22,051 21,011 20,000 18,838 20,000 Other Sources 472,776 180,207 187,508 136,025 169,243 137,525 TOTAL REVENUES 681,706$ 434,748$ 460,576$ 386,025$ 431,560$ 382,525$ EXPENDITURES Salaries and Benefits - - - - - - Operating Expenditures Materials & Supplies - - - - - - Fees & Charges 2,998 3,968 2,915 5,750 4,373 5,750 Consultants & Contract Services 4,325,820 4,407,188 4,789,188 5,153,244 5,157,244 5,374,750 Meetings, Events & Training - - - - - - Total Operating Expenditures 4,328,818 4,411,156 4,792,104 5,158,994 5,161,618 5,380,500 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 4,328,818$ 4,411,156$ 4,792,104$ 5,158,994$ 5,161,618$ 5,380,500$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 294 PUBLIC SAFETY SERVICES KEY SERVICES  Law enforcement services including: 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 the SCC Fire District and City staff Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Risk Manager - - - - - TOTAL FTE's - - - - - 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded - - - - - - - - - - TOTAL ANNUAL HOURS - - - - - PUBLIC SAFETY SERVICES STAFF CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 295 PUBLIC SAFETY SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a.Priority I calls (serious emergency and public hazard):40 48 31 40 40 b.Priority II calls ( immediate response, but non-emergency):2,718 2,505 4,374 3,199 3,199 c.Priority III calls (non-emergency):1,826 2,234 3,385 2,482 2,482 2. a.Average response to Priority I calls for service:5.41 min 5.71 min 4.21 min 5.11 min 5.11 min b.Average response to Priority II calls for service:6.90 min 6.83 min 7.27 min 7.00 min 7.00 min c.Average response to Priority III calls for service:10.82 min 11.97 min 11.9 min 11.56 min 11.56 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 18 20 20 20 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: 1 2 1 1 1 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.10,804 10,006 10,150 10,320 10,320 2.1,106 1,018 1,023 1,052 1,052 3.230 191 212 211 211 5.2,175 2,050 2,110 2,112 2,112 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: 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. For effective protection of life and property, ensure a safe and secure community through diligent enforcement of regulations, codes and law. CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 296 CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 297 EMERGENCY PREPAREDNESS 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 instructors from SCCFD. BUDGET OVERVIEW Notable Budget Changes  Operating expenditures were reduced with the completion of the EOC transition back to the City Administration Building in FY 2015/16.  $2,000 of funding for Emergency Operations training was added to the FY 2016/17 budget. The Emergency Preparedness program’s operational expenses are funded by the General Fund. In FY 2012/13 and 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. The County of Santa Clara provides Saratoga with an assigned Emergency Preparedness Coordinator to train community members under the Community Emergency Response Team (CERT) program, however with the enormity of emergency preparation duties, the City of Saratoga now allocates 5% of the Risk Manager’s time for development and implementation of cost recovery documentation practices. 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 provided to obtain needed emergency preparedness supplies, Records Emergency Action Plan supplies, and meeting costs associated with the Community Emergency Response Team (CERT) volunteer training program. The City will also 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. At a later date, when the authority is implemented, the organization will be incorporated into the SCC Sheriff’s Office service billing. CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 298 EMERGENCY PREPAREDNESS FY 2016/17 WORKPLAN PRIORITIES Emergency Operations Center – Emergency Operations planning in the City continues to evolve and improve. The primary Emergency Operation Center (EOC) has been relocated from the Saratoga Fire Department building in the Village to the City Hall Administrative Conference Room. 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 Mass Care/Shelter Operations Plan, 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. Training will include Disaster Recovery, EOC Operations, Situations Analysis, and the Common Operating Procedure. A tabletop exercise, followed by a full scale drill will be conducted at the “new’ 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. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes - - - - - - Intergovernmental Revenues 847 12,276 20 - - - Fees, Licenses and Permits - - - - - - Charge for Services - - - - - - Other Sources - - - - 175 - Pass-Through Accounts - - - - - - TOTAL REVENUES 847$ 12,276$ 20$ -$ 175$ -$ EXPENDITURES Salaries and Benefits - - 12,853 12,966 13,137 13,201 Operating Expenditures Materials & Supplies 16,262 31,150 12,144 14,500 8,414 12,000 Fees & Charges 36,424 38,566 36,608 37,584 36,522 37,124 Consultants & Contract Services - - - - - - Meetings, Events & Training 140 111 90 300 76 2,250 Total Operating Expenditures 52,826 69,826 48,842 52,384 45,012 51,374 Fixed Assets - - - - - - Internal Service Charges 10,200 10,401 5,580 6,087 6,087 6,591 TOTAL EXPENDITURES 63,026$ 80,227$ 67,275$ 71,437$ 64,236$ 71,166$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 299 EMERGENCY PREPAREDNESS 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 Planning and Community Emergency Response Team grants for the City  Develop and implement disaster event preparation practices for proper cost recovery documentation purposes Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Risk Manager - - 0.05 0.05 0.05 TOTAL FTE's - - 0.05 0.05 0.05 2012/13 2013/14 2014/15 2015/16 2016/17 Temporary Staff Funded Funded Funded Funded Funded - - - - - - - - - - TOTAL ANNUAL HOURS - - - - - EMERGENCY PREPAREDNESS STAFF The Risk Manager's FTE shown above is located in the Recreation and Facilities Department FTE schedule. CITY OF SARATOGA PUBLIC SAFETY DEPARTMENT 300 EMERGENCY PREPAREDNESS 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.3 3 3 2 3 2.1 2 1 1 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: 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. CITY OF SARATOGA NON DEPARTMENTAL 301 NON-DEPARTMENTAL The Non-Departmental Section is a collection of programs which are independent of City service and support functions. This collection includes the General Administration program, Legal Services, Community Grants and Events funding programs, 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, 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. DEPARTMENTAL BUDGET SUMMARY The Non-Departmental Section’s General Administration program accounts for the majority of the City’s revenues. Property Tax, Sales Tax, Transient Occupancy Tax, Business License Tax, Franchise Fees, Vehicle License Fees, and other city-based General Fund revenues are accounted for within the General Administration Program as these receipts represent allocations to the City which are not based on departmental functions. Similarly, expenses in this program are general city expenses which are not based on or provided by departmental services, including retiree insurance premiums, unemployment fees, business license and sales tax 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. 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 while taking advantage of lower interest rates, thereby lowering annual payments and saving almost $2.7 million dollars over the next twenty years. With this refunding, the 2001 bond was retired, and a 2011 bond was established in its place. As the Non-Departmental Section represents a collection of unrelated programs, notable budget impacts will be discussed in separate sections. The following schedule shows total revenues and expenditures. CITY OF SARATOGA NON DEPARTMENTAL 302 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes 12,706,624 13,238,451 14,596,799 14,440,350 15,456,736 15,451,350 Intergovernmental Revenues 21,297 17,750 121,925 46,542 87,492 5,000 Fees, Licenses and Permits - - - - 775 400 Charge for Services 22 - 20 - - - Interest Income 28,670 40,003 45,229 43,000 79,341 55,000 Rental Income 104,778 73,526 94,392 81,002 84,508 82,602 Other Sources 9,329 256,652 147,576 136,877 191,119 131,877 TOTAL REVENUES 12,870,720$ 13,626,382$ 15,005,940$ 14,747,771$ 15,899,970$ 15,726,229$ Operating Transfers In 106,000 167,050 - - 267,918 - TOTAL REVENUE & TRANSFERS IN12,976,720$ 13,793,432$ 15,005,940$ 14,747,771$ 16,167,888$ 15,726,229$ EXPENDITURES Salaries and Benefits 311,768 25,171 3,320,628 628,800 570,813 665,050 Operating Expenditures Materials & Supplies 27,609 42,122 21,155 71,300 16,233 68,050 Fees & Charges 16,406 32,046 20,588 15,800 3,550 10,300 Consultant & Contract Services 310,183 394,497 300,663 370,000 346,578 392,500 Meetings, Events & Training - 2,650 6,476 30,900 6,090 32,000 Community Grants & Events 122,007 169,725 162,516 229,185 202,525 243,381 Operating Grant Expenditures - - - 42,042 34,762 - Total Operating Expenditures 476,205 641,040 511,398 759,227 609,738 746,231 Fixed Assets - - - - - - Internal Service Charges 355,946 386,268 402,004 552,348 552,348 565,689 TOTAL EXPENDITURES 1,143,919$ 1,052,480$ 4,234,030$ 1,940,375$ 1,732,899$ 1,976,971$ Operating Transfers Out 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 TOTAL EXP & TRANSFERS OUT 2,328,419$ 1,433,360$ 5,900,128$ 3,958,031$ 3,750,555$ 3,387,619$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA NON DEPARTMENTAL 303 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted GENERAL FUND General Administration 721,170 492,236 3,783,847 1,363,390 1,205,042 1,360,789 Legal Services 300,743 390,518 287,667 347,800 325,331 372,800 Community Grants 103,717 147,506 135,061 172,390 147,755 158,031 Community Events 18,290 22,219 27,455 56,795 54,770 85,350 TOTAL GENERAL FUND 1,143,919$ 1,052,480$ 4,234,030$ 1,940,375$ 1,732,899$ 1,976,971$ INTERNAL SERVICES FUNDS Risk Management 308,096 336,743 391,344 393,913 258,585 436,050 Workers Compensation 182,700 229,510 184,683 214,555 195,124 216,856 TOTAL INTERNAL SERVICES 490,796$ 566,253$ 576,027$ 608,468$ 453,708$ 652,906$ DEBT SERVICE FUNDS General Obligation Bond 868,910 889,510 889,960 885,085 885,010 847,960 TOTAL TRUST FUNDS -$ -$ -$ -$ -$ -$ TOTAL DEPT EXPENDITURES 2,503,626$ 2,508,243$ 5,700,017$ 3,433,928$ 3,071,617$ 3,477,837$ TRANSFERS OUT General Fund 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 TOTAL TRANSFERS OUT 1,184,500$ 380,880$ 1,666,098$ 2,017,656$ 2,017,656$ 1,410,648$ TOTAL EXP & TRANSFERS OUT 3,688,126$ 2,889,123$ 7,366,115$ 5,451,584$ 5,089,273$ 4,888,485$ TOTAL NON-DEPARTMENTAL EXPENDITURES BY PROGRAM Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Recreation & Facilities Director 0.25 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 TOTAL FTE's 0.35 0.50 0.50 0.50 0.50 NON-DEPARTMENTAL STAFF CITY OF SARATOGA NON DEPARTMENTAL 304 CITY OF SARATOGA NON DEPARTMENTAL 305 GENERAL ADMINISTRATION 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 funding citywide general expenses and internal service charges for general use areas or non-departmental functions. BUDGET OVERVIEW 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 property tax revenues by almost $2.2 million. Homeowners that waited out the downturn in the housing market rather than sell at bargain prices have been selling their houses at steadily rising prices. This has resulted in assessed valuation increases and substantial transfer tax revenues. And, as property turnover continues to be strong, home sales are expected to hold steady, and property tax revenues are projected to continue rising for the next couple of years, although at a slowing pace. Sales Tax Revenue hit a new high in FY 2015/16, however this was due in part to a true-up reconciliation bump with the end of the Triple Flip. As FY 2016/17 will only have current year sales tax receipts, revenues are projected to be lower. In addition, it is believed (statewide) that local tax revenue is decreasing overall due to increases in online sales. With limited retail business in Saratoga to begin with, and consumers continued migration to online purchasing, future expectations are for a decreasing revenues stream into the future. Business License Tax revenues associated with licensing a business are also expected to remain fairly flat, whereas the supplemental license tax that is based on building construction permits is showing steady gains. The home remodeling renaissance in conjunction with housing turnover is driving the modest revenue incline and is expected to continue into the near future. Transient Occupancy Tax receipts, considered a leading indicator of economic strength, began to show improvement in late FY 2011/12, and has held steady since. Both the thriving economy and top tier events at the new Levi Stadium in Santa Clara are drawing more and more people to this area, pushing room demand up. TOT revenues receipts are expected to remain steady in FY 2016/17. Franchise Fee Taxes however, continue to send mixed messages. Gas Franchise Fees increased slightly, while the Electric and Water Fees decreased slightly. Solid Waste and Cable Fees are growing at a slow steady pace year over year as user charges continue to rise. On a somewhat optimistic note, interest income is rising, however the climb is very, very, slow, and as the rates are at historic lows, interest income gains will be minimal. The City currently limits investments to LAIF, which for the last eight years has wallowed in the lowest rates of their 35 year history. With a steady pace below 1% since July of 2009, interest income will remain low during FY 2016/17. 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 $130,000 per year. This funding is allocated to the General Administration program for general purpose use, and is not designated for solid waste support. CITY OF SARATOGA NON DEPARTMENTAL 306 GENERAL ADMINISTRATION As the General Administration program represents non-service functions, staffing is not assigned to the program and hence does not include workplan priorities or key services. Budgeted appropriations represent general expenses, such as retiree medical insurance administration fees, unemployment insurance charges, funding for employee termination and leave payouts, Sales Tax and Business License audit finder’s fees, and several Internal Services charges which account for general public usage of the building maintenance expenses, most notably an allocation for the Civic Theater/Council Chambers and the Civic Center buildings. The General Administration program also contains all Transfers In and Transfers Out for the General Fund. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Taxes Property Tax 8,966,396 9,526,189 10,436,621 10,475,350 11,301,176 11,331,350 Sales Tax 1,051,121 941,350 1,224,427 1,060,000 1,189,398 1,125,000 Transient Occupancy Tax 228,199 257,010 309,618 310,000 319,109 315,000 Business License Tax 336,298 336,911 357,597 355,000 365,710 375,000 Other Taxes 204,859 228,350 199,056 220,000 212,942 230,000 Franchise Tax 1,919,750 1,948,642 2,069,479 2,020,000 2,068,401 2,075,000 Intergovernmental Revenues 21,297 17,750 121,925 46,542 87,492 5,000 Fees, Licenses and Permits - - - - 775 - Charge for Services - - - - - - Interest Income 28,670 40,003 45,229 43,000 79,341 55,000 Rental Income 103,278 73,526 94,392 81,002 84,508 82,602 Other Sources 9,603 231,652 142,576 131,877 188,613 131,877 TOTAL REVENUES 12,869,472$ 13,601,382$ 15,000,920$ 14,742,771$ 15,897,465$ 15,725,829$ Operating Transfers In 106,000 167,050 - - 267,918 - TOTAL REV & TRANSFERS IN 12,975,472$ 13,768,432$ 15,000,920$ 14,742,771$ 16,165,382$ 15,725,829$ EXPENDITURES Salaries and Benefits 311,768 25,171 3,320,628 628,800 570,813 665,050 Operating Expenditures Materials & Supplies 26,401 40,280 20,936 71,000 16,051 67,750 Fees & Charges 16,406 32,046 20,534 15,800 3,550 10,300 Consultant & Contract Services 12,526 7,882 15,233 22,500 21,429 20,000 Meetings & Training - 2,650 5,420 30,900 6,090 32,000 Operating Grant Expenditures - - - 42,042 34,762 - Total Operating Expenditures 55,334 82,858 62,123 182,242 81,881 130,050 Fixed Assets - - - - - - Internal Service Charges 354,068 384,207 401,095 552,348 552,348 565,689 TOTAL EXPENDITURES 721,170$ 492,236$ 3,783,847$ 1,363,390$ 1,205,042$ 1,360,789$ Operating Transfers Out 1,184,500 380,880 1,666,098 2,017,656 2,017,656 1,410,648 TOTAL EXP & TRANSFERS OUT 1,905,670$ 873,116$ 5,449,945$ 3,381,046$ 3,222,698$ 2,771,437$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA NON DEPARTMENTAL 307 LEGAL SERVICES 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 OVERVIEW Notable Budget Changes:  No notable changes The legal program does not typically include budgeted revenues; however services reimbursements may occur during the course of the year if the City provides legal representation, such as in development lawsuits. 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 was budgeted for general legal expenditures and another $20,000 to $25,000 for employment related legal services as the ‘normal’ year budget amount. The practice is that a request would be brought to Council if unusual circumstances prompt expenditures to exceed these amounts. For FY 2016/17, with expectations that a current lawsuit may require additional funding, $50,000 was added to the legal services litigation budget amount. Employment law services were moved into the Legal Service program in FY 2013/14 to better assign budget responsibility and oversight for legal services to the City Attorney, and to align all attorney fees within the Legal Services program. CITY OF SARATOGA NON DEPARTMENTAL 308 LEGAL SERVICES FY 2016/17 WORKPLAN PRIORITIES Risk Management – Work with staff to improve and implement Best Practices to mitigate risk in City operations and administer claims. City Codes and Ordinances – Research and prepare ordinances as necessary to implement City Council priorities. Work with staff on the annual code update to reflect changes in State law and lessons learned in ordinance implementation. Community Development – Work with Community Development Department staff on reviews of complex projects. Public Works – Work with Public Works department staff on environmental review, regulatory compliance, contracts and real property matters for major public works projects such as the Prospect Road Improvements and the Saratoga to the Sea Trail. Code Enforcement – Work with Code Enforcement staff to develop systems and procedures to minimize the need for City Attorney involvement in day-to-day code enforcement proceedings. Advise the City in connection with complex code enforcement matters and continue to manage prosecution of citations issued by the Sheriff’s office for violations of the City Code. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Charge for Services 22 - 20 - - - Other Sources 1,226 25,000 - - - - TOTAL REVENUES 1,248$ 25,000$ 20 - - - EXPENDITURES Operating Expenditures Materials & Supplies 1,208 1,842 219 300 182 300 Fees & Charges - - 54 - - - Consultant & Contract Services 297,658 386,615 285,430 347,500 325,149 372,500 Total Operating Expenditures 298,865 388,457 286,758 347,800 325,331 372,800 Internal Service Charges 1,878 2,061 909 - - - TOTAL EXPENDITURES 300,743$ 390,518$ 287,667$ 347,800$ 325,331$ 372,800$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA NON DEPARTMENTAL 309 LEGAL SERVICES 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 CITY OF SARATOGA NON DEPARTMENTAL 310 LEGAL SERVICES 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual Actuals Actuals Budget 1. a.Number of staff reports and resolutions drafted or reviewed:22 25 35 39 35 b.Number of ordinances drafted or reviewed:14 9 15 12 10 2. a.Number of agreements/contracts using standard forms reviewed: 75 75 75 63 75 b.Number of agreements/contracts using non-standard forms prepared or reviewed: 18 20 15 14 10 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1.24 22 23 17 20 2.5 4 5 8 5 Review staff reports, resolutions, and proposed ordinances to ensure City is in compliance with legal requirements and applicable laws, and performing in a transparent and ethical manner. Ensure legal documents protect the City's interests and are in compliance with Federal, State, and City requirements. Number of City Council meetings or study sessions attended: Number of multi-agency agreements prepared: CITY OF SARATOGA NON DEPARTMENTAL 311 COMMUNITY GRANTS The Community Grants program was established to consolidate the City’s grant support to outside agencies into one program, thereby retaining 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, the public access television station KSAR 15 for public information broadcasts of council and commission meetings, and the Saratoga Area Senior Coordinating Council (SASCC) for operational support of the Senior Center. The Senior Center provides an assortment of services – such as Blood Pressure Checks, Podiatric Checks, Tax Assistance, Vision Screening, Hearing Tests, Senior Nutrition Programs, Fifty-Five Alive Driving Program, Flu Shots, and other non-cost-recovery services that the senior population finds valuable. Grant amounts listed reflect City funding provided to service groups and non-profit organizations. The City also contributes in-kind services, such as building space and utilities to the Saratoga Area Senior program, as well as staff support, rental and permit waivers, sheriff services, or street sweeping. BUDGET OVERVIEW Notable Budget Changes:  America In Bloom funding was added to Community Grant program. 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 funding to assist a number of these non-profit and volunteer based groups in Saratoga. This includes providing community center facilities and annual support to SASCC to run a senior center for social groups and class instructions. Without sufficient fee based services, the SASCC program is heavily dependent on City and CDBG funding support. The City Council awards a public service grant allocation to SASCC to help support senior center activities ($40,669) and the adult day care program ($22,000). Additional service grant funding is split between two non-profit group programs that deliver essential 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 City also provides ongoing annual funding to support the KSAR community access channel, the Saratoga Chamber of Commerce, and United Way’s 211 Call Center. The Saratoga Chamber of Commerce FY 2016/17 grant included additional funds for economic development and tourism activities. The FY 2016/17 grant allocation is less as the amount is for annual support only. The KSAR grant award provides operational funding for the community television non-profit through a service contract to record and broadcast Saratoga’s City Council and the Planning Commission meetings. Grant funding also includes a $25,000 annual grant to the SCC FireSafe Council to provide fuel reduction services for Saratoga residents. This five year program began in FY 2013/14, and is considered a crucial service to the City’s hillside residents during these times of extremely high fire danger caused by the drought. The distribution of grant funding for FY 2016/17 and the four prior years is illustrated in the Grant Schedule on the following page. CITY OF SARATOGA NON DEPARTMENTAL 312 COMMUNITY GRANTS 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Other Sources - - - - - - TOTAL REVENUES -$ -$ -$ -$ -$ -$ EXPENDITURES Operating Expenditures Materials & Supplies - - - - - - Fees & Charges - - - - - - Consultant & Contract Services - - - - - - Meetings & Training - - - - - - Community Grants 103,717 147,506 135,061 172,390 147,755 158,031 Total Operating Expenditures 103,717 147,506 135,061 172,390 147,755 158,031 Fixed Assets - - - - - - Internal Service Charges - - - - - - TOTAL EXPENDITURES 103,717$ 147,506$ 135,061$ 172,390$ 147,755$ 158,031$ GENERAL FUND REVENUES AND EXPENDITURES 2012/13 2013/14 2014/15 2015/16 2016/17 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 18,000 18,540 19,096 19,669 Adult Daycare Support 20,000 22,000 22,000 22,000 22,000 KSAR Community Access Grant 26,650 26,000 29,200 31,500 35,000 Chamber of Commerce Annual Support 9,567 20,506 16,821 22,144 14,362 SCC FireSafe Council - Fuel Reduction Services - 25,000 12,500 37,500 25,000 America In Bloom Funding - - - - 6,000 West Valley Community Services 3,250 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 3,250 5,000 5,000 5,000 5,000 Total Community Services Support Grants 103,717 147,506 135,061 168,240 158,031 5 YEAR BUDGET AWARD HISTORY CITY OF SARATOGA NON DEPARTMENTAL 313 COMMUNITY EVENTS The City Council established the Community Event Program to build a stronger sense of community. The Community Event program budget consolidates 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 festival to celebrate the historic Saratoga Village. The City also sponsors celebrations in honor of cultures, such as the Bollywood Dance and Sister City events, as well as events for facility openings or groundbreakings to increase awareness of a new or improved community facility, and to publicly thank supporters and contributors. BUDGET OVERVIEW Notable Budget Changes:  Street Closure Grant funding was increased by $20,000.  City-Sponsored Celebrations were increased by $13,000. 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. For Fiscal Year 2016/17, the Council allocated $35,000 for Saratoga events through the City’s Community Events Grant Program. The grants will help pay for numerous expenses associated with coordinating events, including City- related fees (i.e., permits, park attendants, renting parks or facilities), security, entertainment, signage, and food, along with others. Some of the events to be funded include the ever-popular Blossom Festival and Independence Day Celebration. The grants will also help fund a variety of other community events, such as the Saratoga Area Senior Coordinating Council’s Health and Wellness Expo; arts and entertainment events like Montalvo Arts Center’s annual Arts Splash; and cultural events including Hakone Garden’s Matsuri. The Street Closure Grant Funding was also increased by $20,000 to a total of $30,000. Of that, $20,000 will help pay for a full-day closure of Big Basin Way for the Saratoga Chamber of Commerce’s Classic Car Show. The other $10,000 will help pay for a partial-day closure for the City’s 60th Anniversary Parade. Additional funding has been set aside for City-sponsored events, such as Arbor Day, Outdoor Movie Nights, and the Holiday Tree Lighting. Overall, city-sponsored celebrations were increased by $13,000 to pay for the 2017 State of the City Address and to help with out-of-pocket expenses by the community volunteers organizing the 60th Anniversary Parade. CITY OF SARATOGA NON DEPARTMENTAL 314 COMMUNITY EVENTS 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted REVENUES Fees, Licenses and Permits - - - - - 400 Other Sources - - 5,000 5,000 2,506 - TOTAL REVENUES -$ -$ 5,000$ 5,000$ 2,506$ 400$ EXPENDITURES Salaries and Benefits - - - - - - Operating Expenditures Community Grants & Events 18,290 22,219 27,455 56,795 54,770 85,350 Total Operating Expenditures 18,290 22,219 27,455 56,795 54,770 85,350 Internal Service Charges - - - - - - TOTAL EXPENDITURES 18,290$ 22,219$ 27,455$ 56,795$ 54,770$ 85,350$ GENERAL FUND REVENUES AND EXPENDITURES CITY OF SARATOGA NON DEPARTMENTAL 315 COMMUNITY EVENTS 2012/13 2013/14 2014/15 2015/16 2016/17 Grants Grants Grants Grants Grants Chamber of Commerce Events Annual Village Festival 4,684 - - - - Holiday Wine Stroll 2,173 2,501 3,100 3,998 4,168 Classic Car Show - - - 3,929 - Community Celebrations City Neighberhood Celebrations - - - 3,000 - Montalvo Celebrations - 747 2,000 2,995 3,704 Saratoga Pet Parade - - - - 820 Blossom Festival 3,924 4,204 4,500 4,600 4,600 Sister City Events - 618 - - - Saatoga Community Band - 325 600 725 750 Opera in the Park 1,896 1,320 800 1,750 2,778 Bollywood 1,000 1,242 1,200 1,500 - Food & Wine Events 835 1,230 - - - Saratoga Grammar School Reunion - 118 - 389 - Library Events (various)2,000 - 2,800 - - Cultural-Chinese Autumn Festival - - - 350 350 Cultural - Hakone Matsuri - - - - 4,630 Healthy City Events SASCC Health Fair - 2,380 3,600 3,970 4,770 Relay for Life Saratoga - - - - 4,630 Holiday Celebrations Memorial Day Event (Banner)750 250 900 1,000 1,000 Odd Fellows Easter Event - - - 600 600 Fourth of July Event - 1,831 1,900 2,460 2,200 St. Paddy's Day - - - 500 - Total Community Event Grants 16,513 16,766 21,400 31,765 35,000 City Sponsored Events Roadway Improvement Events - - 250 219 500 Parks, Trails, Open Space Events 33 - 250 4,706 500 Facility Events 17 17 - - - State of the City Event - - - - 5,000 City Anniversary - - - - 7,000 Village Tree Lighting Event - 2,480 2,000 986 2,000 Village Street Closure Event - - 10,000 8,331 30,000 Outdoor Movie Nights 927 2,756 3,600 5,000 5,000 Arbor Day Celebration 51 201 350 350 350 Total Annual Sponsored Events 1,027 5,453 16,450 19,593 50,350 Total Community Event Funding 17,540 22,219 37,850 51,358 85,350 COMMUNITY EVENT GRANT SCHEDULE CITY OF SARATOGA NON DEPARTMENTAL 316 CITY OF SARATOGA NON DEPARTMENTAL 317 RISK MANAGEMENT / LIABILITY FUND 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 $15 million of excess insurance coverage for a total of $20 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 OVERVIEW Notable Budget Changes:  None 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, and if claim losses in excess of this amount should occur, a budget adjustment would be brought to Council. If not used, the funding rolls back into fund balance. For FY 2016/17, $75,000 was budgeted due to a number of expected claim settlements. A pass-through liability program, solely for reimbursable claim expenses, is included in a separate program that rolls up into this fund. As a cost saving measure, ABAG PLAN reduced the amount of grant funding in recent years, and now requires a 50% match for non-goal related Program Grant expenses. Program Grant funds are used for safety improvements and hazard mitigation. Training Grants are used for costs associated with the Risk Manager (Public Administration Risk Management Association [PARMA] conference, the Public Risk Management Association [PRIMA] conferences, or Playground Safety (NPSI) training. Insurance premiums vary from year to year, as premiums are dependent on and reactive to both the City’s and the entire JPA’s claim loss activity. This irregularity was seen with a 16% increase in FY 2013/14 that was followed by a 27% decrease in FY 2014/15, and then an 8% increase in 2015/16. Final insurance premium costs are not available until after the budget presentation, therefore estimated premium expenditure costs are in the proposed budget and subsequently adjusted with the final budget adoption. A conservative 12% increase was used for the estimate. CITY OF SARATOGA NON DEPARTMENTAL 318 RISK MANAGEMENT / LIABILITY 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 134,757 230,059 283,125 291,264 291,264 376,487 Total Beginning Fund Balance 134,757$ 230,059$ 283,125$ 291,264$ 291,264$ 376,487$ Revenues Intergovernmental Revenues 26,562 9,907 2,500 19,008 10,549 12,577 Fees, Licenses and Permits - 128 - - - - Other Sources 1,837 4,774 21,982 50,000 8,258 50,000 Internal Service Charges 375,000 375,000 375,000 325,000 325,001 350,000 Total Revenues 403,399$ 389,809$ 399,482$ 394,008$ 343,808$ 412,577$ TOTAL SOURCE OF FUNDS 538,156$ 619,868$ 682,607$ 685,272$ 635,072$ 789,064$ USE OF FUNDS Expenditures Salaries and Benefits 58,864 61,513 77,558 77,793 78,817 77,806 Operating Expenditures Materials & Supplies 26,540 9,907 2,500 19,008 10,563 12,577 Fees & Charges 8,192 15,234 128,319 100,300 (7,608) 150,250 Consultant & Contract Services - - - - - - Meetings & Training - - - - - - Insurance Premiums 214,130 249,780 182,465 196,379 176,380 195,000 Internal Service Charges 371 309 502 433 433 417 Total Expenditures 308,096$ 336,743$ 391,344$ 393,913$ 258,585$ 436,050$ Ending Fund Balance Unassigned 230,059 283,125 291,264 291,359 376,487 353,014 Total Ending Fund Balance 230,059$ 283,125$ 291,264$ 291,359$ 376,487$ 353,014$ TOTAL USE OF FUNDS 538,156$ 619,868$ 682,607$ 685,272$ 635,072$ 789,064$ SUMMARY OF REVENUES AND EXPENDITURES CITY OF SARATOGA NON DEPARTMENTAL 319 RISK MANAGEMENT / LIABILITY FY 2016/17 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. 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff Funded Funded Funded Funded Funded Recreation & Facilities Director 0.25 0.30 0.30 0.30 0.30 Human Resources Manager - - - - - Human Resources Technician - - - - - TOTAL FTE's 0.25 0.30 0.30 0.30 0.30 RISK MANAGEMENT STAFF CITY OF SARATOGA NON DEPARTMENTAL 320 RISK MANAGEMENT / LIABILITY 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures Actuals Actual 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% 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actual Actuals Actuals Budget 1 6 9 10 9 10 2 12 12 12 12 12 3 8 6 15 7 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: Provide timely, comprehensive Risk Management services to the City to reduce liability and claims costs. CITY OF SARATOGA NON DEPARTMENTAL 321 WORKERS COMPENSATION FUND 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 Associatio n since January 1, 1989. SHARP is a self-funded public agency insurance pool providing workers compensation coverage for five public entities that are too small 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 OVERVIEW 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 2016/17, a $10,000 Wellness and Safety Grant from ABAG will be used for wellness promotion and training, and for safety training specifically related to the Illness and Injury Prevention Program (IIPP) such as the development of safety standards and compliance audit programs. Program costs covered in the internal service rates include program staff time, insurance premiums, and the expenditure side of the wellness and safety grants. Staff time of .10 FTE of the Human Resource Manager position and .10 FTE of the Human Resources Technician position is utilized to manage various program functions, including workers compensation, safety, wellness, ergonomics, and contracts. The reimbursable ABAG SHARP Wellness and Safety Grant expenditures are budgeted for ergonomic evaluations as required during the year. As premium information is not available until after the proposed budget is prepared, expense amount reflects a conservative estimate that is updated with the final budget. CITY OF SARATOGA NON DEPARTMENTAL 322 WORKERS COMPENSATION FY 2016/17 WORKPLAN PRIORITIES Wellness Program Initiative - Continue Wellness Program Initiative (funded by ABAG Grant) to successfully minimize the exposure to incidents which may cause loss to the City or injury to its employees. Return to Work, Modified Duty Program – To the extent possible and as needed, HR, department directors, managers, and line supervisors will proactively identify light duty assignments for injured employees to ensure the proposed work is compatible with restrictions that are expected to be imposed by an injured employee’s physician. Injury and Illness Prevention Program (IIPP) – Coordinate training in support of the IIPP. 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCE OF FUNDS Beginning Fund Balance Unassigned 231,966 293,719 281,642 314,525 314,525 304,402 Total Beginning Fund Balance 231,966$ 293,719$ 281,642$ 314,525$ 314,525$ 304,402$ Revenues Intergovernmental Revenues 4,453 17,433 17,567 10,000 10,000 10,000 Internal Service Charges 240,000 200,000 200,000 175,000 175,000 175,000 Total Revenues 244,453$ 217,433$ 217,567$ 185,000$ 185,000$ 185,000$ TOTAL SOURCE OF FUNDS 476,419$ 511,152$ 499,209$ 499,525$ 499,525$ 489,402$ USE OF FUNDS Expenditures Salaries and Benefits 20,437 25,753 27,059 28,700 29,287 30,675 Operating Expenditures Materials & Supplies 7,865 14,381 17,567 10,000 10,048 10,100 Fees & Charges 78 78 78 80 78 80 Consultant & Contract Services 620 343 - 600 - 600 Meetings & Training - - - - - - Insurance Premiums 153,620 188,889 139,776 175,000 155,536 175,000 Operating Expenditures 162,184 203,691 157,421 185,680 165,662 185,780 Fixed Assets - - - - - - Internal Service Charges 79 66 203 175 175 401 Total Expenditures 182,700$ 229,510$ 184,683$ 214,555$ 195,124$ 216,856$ Ending Fund Balance Unassigned 293,719 281,642 314,525 284,970 304,402 272,546 Total Ending Fund Balance 293,719$ 281,642$ 314,525$ 284,970$ 304,402$ 272,546$ TOTAL USE OF FUNDS 476,419$ 511,152$ 499,209$ 499,525$ 499,525$ 489,402$ SUMMARY OF REVENUES AND EXPENDITURES CITY OF SARATOGA NON DEPARTMENTAL 323 WORKERS COMPENSATION 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 Full Time Equivalents (FTE) 2012/13 2013/14 2014/15 2015/16 2016/17 City Staff 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 TOTAL FTE's 0.10 0.20 0.20 0.20 0.20 WORKERS COMPENSATION STAFF CITY OF SARATOGA NON DEPARTMENTAL 324 WORKERS COMPENSATION 2012/13 2013/14 2014/15 2015/16 2016/17 Performance Objectives and Measures 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 2012/13 2013/14 2014/15 2015/16 2016/17 Activity and Workload Highlights Actuals Actuals Actuals Actuals Budget 1.2 1 2 1 1 2.2 0 1 0 2 3.Number of open claims to date (since FY 1998/99):251 251 253 254 255 4.Number of closed claims to date (since FY 1998/99):248 248 252 252 255 5.Lost time in full work days:14 0 0 0 0 Provide safety training and internal controls to promote a safe working environment. New claims (based on date of claim): Closed claims (based on date closed): 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. CITY OF SARATOGA NON DEPARTMENTAL 325 LIBRARY GENERAL OBLIGATION BOND DEBT SERVICE FUND 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 approximately $2.7 million over twenty years. In 2011, as part of the refunding process, the City obtained an updated credit rating. The City of Saratoga was awarded 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 Rule 15c.2-12. BUDGET OVERVIEW 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 2016/17 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 $700,000; representing the cash needed for the August principal and interest bond payment. The levy rate is set annually to allow a slow, steady reduction in assessment receipts. With property values increasing, rates must be lowered each year to offset the increase in valuations. Budgeted expenditures reflect principal and interest payments, and fees for continuing disclosure services. CITY OF SARATOGA NON DEPARTMENTAL 326 LIBRARY GO BOND DEBT SERVICE 2012/13 2013/14 2014/15 2015/16 2015/16 2016/17 Actuals Actuals Actuals Adjusted Actuals Adopted SOURCES OF FUNDS Beginning Fund Balance Unassigned 862,414 885,756 897,785 906,600 906,600 922,951 Total Beginning Fund Balance 862,414$ 885,756$ 897,785$ 906,600$ 906,600$ 922,951$ Revenues Tax Assessments 890,401 900,018 897,241 845,000 898,820 800,000 Interest 1,852 1,521 1,533 1,300 2,541 1,300 Total Revenues 892,253$ 901,539$ 898,774$ 846,300$ 901,362$ 801,300$ TOTAL SOURCE OF FUNDS 1,754,666$ 1,787,295$ 1,796,560$ 1,752,900$ 1,807,961$ 1,724,251$ USE OF FUNDS Expenditures Operating Expenditures - - - - - - Debt Service 868,910 889,510 889,960 885,085 885,010 847,960 Total Expenditures 868,910$ 889,510$ 889,960$ 885,085$ 885,010$ 847,960$ Operating Transfers Transfer Out - - - - - - Total Operating Transfers -$ -$ -$ -$ -$ -$ Ending Fund Balance Unassigned 885,756 897,785 906,600 867,815 922,951 876,291 Total Ending Fund Balance 885,756$ 897,785$ 906,600$ 867,815$ 922,951$ 876,291$ TOTAL USE OF FUNDS 1,754,666$ 1,787,295$ 1,796,560$ 1,752,900$ 1,807,961$ 1,724,251$ SOURCE & USE OF FUNDS CITY OF SARATOGA NON DEPARTMENTAL 327 LIBRARY GO BOND DEBT SERVICE 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 - - 11,995,000 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 City of Saratoga 2011 Series General Obligation Bonds Debt Schedule CITY OF SARATOGA NON DEPARTMENTAL 328 LIBRARY GO BOND DEBT SERVICE LEGAL DEBT MARGIN The California Government Code Section 43605 states: A city shall not incur an indebtedness for public improvements which exceeds in the aggregate 15 percent of the assessed value of all real and personal property of the city. Within the meaning of this section, “indebtedness” means bonded indebtedness of the city payable from the proceeds of taxes levied upon taxable property in the city. This schedule calculates the City of Saratoga’s legal debt margin by determining the 15% debt limit and comparing this limit to the City’s outstanding debt at the end of the fiscal year so as to determine the difference between the two. Only certain types of debt are subject to the legal debt limit, most prominently General Obligation Bond debt. Therefore while this schedule recognizes all types of long-term debt, the total debt is reduced by that debt not subject to the legal debt limit, as well as amounts held in sinking funds for debt repayment. The City’s debt structure is comprised of one General Obligation Bond. Assessed Secured Property Valuation for FY 2015/16 13,736,141,698$ Debt Limitation (15% of assessed value)15% Bonded Debt Limit 2,060,421,255$ Outstanding Bonded Debt at 6/30/16 2011 Series General Obligation Bond 10,060,000 TOTAL Outstanding Debt 10,060,000$ 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: 10,060,000$ LEGAL DEBT MARGIN 2,050,361,255$ LEGAL DEBT MARGIN COMPUTATION FY 2016/17 329 CAPITAL IMPROVEMENT PLAN BUDGET 330 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 331 CAPITAL IMPROVEMENT PLAN CIP OVERVIEW The City of Saratoga’s FY 2016/17 – 2019/21 Capital Improvement Plan (CIP) represents an ongoing process through which the City identifies, prioritizes, and develops a multi-year plan for major capital expenditures and their associated funding sources, 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, including the reclassified Prop 142/TCR allocations and Refuse Impact Fees are dedicated funding sources for the Streets Program, with total revenues of approximately $1 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 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 332 improvement projects. Revenues for administrative 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 pages contain summary schedules and graphs illustrating the 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 333 CAPITAL PROGRAM BUDGET BY PROJECT CATEGORY Adopted Category FY 2016/17 % Streets Street Repair & Resurfacing 2,743,666$ 18.5% Roadway Safety Projects 6,334,057 42.7% Street Landscaping & Beautification 42,036 0.3% Sidewalk, Curbs & Storm Drains 1,114,681 7.5% Bridge & Retaining Walls 1,413,927 9.5% Utility Undergrounding Projects 98,744 0.7% Total Streets 11,747,112 79.2% Parks & Trails Citywide Projects 337,026 2.3% Park Projects 634,983 4.3% Trail Projects 548,701 3.7% Total Parks & Trails 1,520,710 10.3% Facility Improvements Citywide Projects 94,023 0.6% Civic Center Improvements 92,897 0.6% Community Center Improvements 270,627 1.8% Library Building Improvements 120,470 0.8% Total Facility Improvements 591,913 4.0% Administrative & Technology Improvements Information Technology Projects 245,226 1.7% Community Enhancement Programs 99,000 0.7% Development Programs 415,750 2.8% Administrative Enhancement Programs 205,115 1.4% Total Administrative & Technology Improvements 965,092 6.5% TOTAL CIP BUDGET BY PROJECT CATEGORY 14,824,827$ 100% CAPITAL PROGRAM BUDGET BY PROJECT CATEGORY CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 334 CAPITAL IMPROVEMENT PLAN BUDGET BY FUND Adopted Category FY 2016/17 % Streets 411 Streets CIP Fund 3,093,891 20.9% 431 Streets Grant Fund 6,878,424 46.4% 481 Streets Gas Tax Fund 1,774,796 12.0% Total Streets 11,747,112 79.2% Park & Trails 412 Parks & Trails CIP Fund 569,639 3.8% 421 Parks & Trails Tree Fund 95,850 0.6% 422 Parks & Trails In-Lieu Fees Fund 378,000 2.5% 432 Parks & Trails Grant Fund 477,221 3.2% Total Park & Trails 1,520,710 10.3% Facility Improvements 413 Facility CIP Fund 441,286 3.0% 433 Facility Grant Fund 150,627 1.1% Total Facility Improvements 591,913 4.0% Administrative & Technology Improvements 414 Admin & Tech CIP Fund 965,092 6.5% Total Administrative & Technololgy 965,092 6.5% TOTAL CIP BUDGET BY FUND 14,824,827 100% CAPITAL IMPROVEMENT PLAN BUDGET BY FUND CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 335 UNFUNDED PROJECTS Project Title Project Description Project Cost 1 Quito Road Sidewalk Improvements This project would fund sidewalk improvements along Quito Road between Highway 85 and Allendale Avenue. 150,000 2 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. 500,000 650,000$ 3 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. 3,000,000 4 Congress Springs Park North Side Entrance This project would fund the construction of a trail connecting the residential neighborhood around Cox Avenue east of Highway 85 to the northside of Congress Springs Park. 100,000 5 Via Regina Trail This project would fund the construction of a pedestrian-equestrian trail connecting Via Regina and Villa Oaks Lane. 60,000 6 Norton/Villa Montalvo Emergency Route This project would fund the construction of an emergency access road connecting the Montalvo Arts Center parking lot with Norton Road. 1,000,000 7 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. 600,000 8 Quarry Park Trail Improvements This project will fund the design, environmental review, and construction of additional trail improvements at Quarry Park 250,000 9 Quarry Park Pond Improvements This project will fund the design, environmental review, and construction of improvements to the pond at Quarry Park 150,000 10 Saratoga Village Creek Trail - Construction This project would fund the construction of a trail connecting Saratoga Village to Quarry Park through Hakone Gardens along Big Basin Way 100,000 11 Saratoga-to-the-Sea Trail This project would fund the design, environmental review and construction of trail connecting Quarry Park to Santa Clara County Sanborn Park 100,000 12 ADA All-inclusive Playground This project will fund the installation of an all-inclusive playground at a city park. 160,000 5,520,000$ 13 Theater Improvements This project would fund the design and construction of improvements identified in the Civic Theater Master Plan. Improvements include, but are not limted to, the backstage dressing room, restroom annex, and relocation of control booths 7,000,000 14 Solar Panels at City Hall This project would fund the Installation of Solar Panels on the roof of the City Hall Administration Building in order to provide increased efficiency and energy savings. 120,000 15 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. Partial funding may be provided through a $10k grant from the Rotary Club. 70,000 16 Community Development One Stop Permit Center Remodel This project would fund the remodel of the Community Development lobby area to allow customers to remain at a single location while appropriate staff members respond to the customer's location during the planning and building customer process, resulting in improved efficiencies and customer service. 100,000 17 Senior Center Cool Roof This project would completed the installation of a cool roof on the Senior Center section of the Community Center 65,000 7,355,000$ 13,525,000$ UNFUNDED CIP PROJECT LIST FY 2016/17 FACILITY IMPROVEMENT PROJECTS TOTAL FACILITY UNFUNDED PROJECTS TOTALS STREET IMPROVEMENT PROJECTS TOTAL STREETS UNFUNDED PROJECTS PARK & TRAIL IMPROVEMENT PROJECTS TOTAL PARKS AND TRAILS UNFUNDED PROJECTS CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN 336 337 STREET IMPROVEMENT PROGRAM 338 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 339 STREETS PROGRAM PROGRAM DIRECTORY STREET PROGRAM SUMMARY PAGE Program Summary 341 Project List Summary 342 Project Funding Summary 343 STREET REPAIR AND RESURFACING PROJECTS 9111-001 Annual Street Resurfacing 346 9111-003 Annual Roadway Improvements 348 9113-001 Residential Street Reconstruction 352 9113-002 Roadway Maintenance and Repairs 354 ROADWAY SAFETY PROJECTS 9121-001 Roadway Safety & Traffic Calming 358 9121-003 ADA Signal Lights & Curb Cut-outs 360 9122-005 Highway 9 Safety Improvements – Phase IV 362 9122-006 Prospect/Saratoga Median Improvements 364 9122-007 Citywide Signal Upgrades Project - Phase II 366 9122-009 Beaumont Traffic Circle 368 STREET LANDSCAPE & BEAUTIFICATION IMPROVEMENTS 9138-001 Village LED Streetlights 372 SIDEWALK, CURBS & STORM DRAIN PROJECTS 9141-001 Annual Sidewalk Repairs 376 9141-002 Annual Storm Drain Upgrades 378 9141-004 Curb and Gutter Maintenance and Repairs 380 9141-005 Annual Infrastructure Maintenance and Repairs 382 9142-004 Village Pedestrian Improvements – Phase I Design 384 9142-005 Saratoga Avenue Sidewalk 386 9142-011 Village Pedestrian Improvements - Phase II (Blaney Plaza) 388 9142-012 Arroyo de Arguello Outfall Repair 390 9142-013 Quito Road Paseo Olivos Curb & Gutter 392 9142-014 Big Basin Way Sidewalk Repairs 394 9142-015 El Camino Grande Storm Drain Repair 396 9142-016 Saratoga Hills Storm Drain Improvements 398 9142-017 Long Term Trash Plan Storm Drain Capture Devices 400 9142-018 Wildcat Creek Outfall Repair 402 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 340 BRIDGE AND RETAINING WALLS 9152-001 Fourth Street Bridge Widening 406 9152-002 Quito Road Bridges Replacement – Preliminary Engineering 408 9152-003 Bridge Maintenance and Repairs 412 9152-004 Quito Road Bridges Replacement – ROW Acquisition 414 9152-005 Damon Lane Retaining Wall Repair 416 STREET UNDERGROUNDING PROJECTS 9171-001 Rule 20A Electric Undergrounding Conversion Projects 420 9171-002 Quito Road Electric Undergrounding Project 422 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 341 STREET 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 larger safety projects, such as the bicycle and pedestrian safety improvements made to Highway 9. Street Landscape & Beautification Improvements – consist of projects that improve the visual component of streets. This includes median landscape improvements, city entrance signs, tree lighting, sidewalk furniture, and accessories such as trash receptacles and news rack stands. Sidewalk, Curbs, Gutters & Storm Drains – consist of sidewalk improvement and repair projects; curb, gutter, and storm drain improvements; and pedestrian safety improvement projects. These projects are both general and specific, depending on funding sources. Bridge & Hillside Support Projects – consist of projects that repair, replace, or rehabilitate deficient bridge structures or provide support for hillside roadways. Bridge structures fall under the guidance of federal and state regulations, and are often funded by these regulatory agencies, such as Caltrans or the Federal Highway Bridge Replacement and Rehabilitation Program (HBBR). Hillside Support projects are generally funded through transfers from the General Fund. 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 IMPROVEMENT PLAN STREET PROGRAM 342 PROJECT LIST SUMMARY With the addition of the following three new projects, there are a total of twenty two funded projects for FY 2016/17:  Annual Roadway Improvements  Annual Infrastructure Maintenance and Repairs  Damon Lane Retaining Wall The following eleven projects were finalized or discontinued in FY 2015/16:  Annual Street Resurfacing  Residential Street Reconstruction  Roadway Maintenance and Repairs  Annual Sidewalk Repairs  Annual Storm Drain Repairs  Curb & Gutter Maintenance and Repairs  Bridge Maintenance and Repairs  Village Pedestrian Improvements – Phase II  Arroyo de Arguello Outfall Repair  Saratoga Hills Storm Drain PY FY Total Expended 2015/16 Expended Project STREETS PROJECT EXPENDITURE SUMMARY To Date Estimated To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expenditures Street Repair & Resurfacing Projects 9111-001 Annual Street Resurfacing 8,561,736 1,102,975 9,664,711 closed - - - - 9,664,711 9111-003 Annual Roadway Improvements - - - 2,743,666 9113-001 Residential Street Construction 56,388 543,612 600,000 closed - - - - 600,000 9113-002 Roadway Maintenance and Repairs - 375,000 375,000 closed - - - - 375,000 Roadway Safety Improvements 9121-001 Roadway Safety & Traffic Calming 465,091 25,540 490,631 101,574 50,000 50,000 50,000 50,000 792,205 9121-003 CDBG - ADA Signal Lights 188,286 - 188,286 71,337 - - - - 259,623 9122-005 Highway 9 Safety Improvements - Phase IV 27,378 869 28,247 1,031,149 - - - - 1,059,396 9122-006 Prospect/Saratoga Median Improvements - 149,622 149,622 4,601,203 - - - - 4,750,825 9122-007 Citywide Signal Upgrade Project Phase II 1,155 52 1,207 498,793 - - - - 500,000 9122-009 Beaumont Traffic Circle - - 30,000 - - - - 30,000 Street Landscape & Beautification Projects 9138-001 Village LED Streetlights 405,727 1,500 407,227 42,036 - - - - 449,263 Sidewalks, Curbs & Gutters 9141-001 Annual Sidewalk Repairs 435,984 96,702 532,686 closed - - - - 532,686 9141-002 Annual Storm Drain Repairs 364,160 59,352 423,512 closed - - - - 423,512 9141-004 Curb and Gutter Maint & Repairs - 50,000 50,000 closed - - - - 50,000 9141-005 Infrastructure Maintenance and Repairs - - - 288,517 200,000 200,000 200,000 200,000 1,088,517 9142-004 Village S/W & Pedestrian Enhancemts 1,128,735 25,059 1,153,793 89,816 - - - - 1,243,610 9142-005 Saratoga Avenue Sidewalk 204,626 5,655 210,281 50,261 - - - - 260,542 9142-011 Village Sidewalk & Pedestrian Improvements - Phase II757,399 219,707 977,106 144,109 - - - - 1,121,215 9142-012 Arroyo de Arguello Outfall Repair 36,122 33,878 70,000 closed - - - - 70,000 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 7,013 247,988 - - - - 255,000 9142-016 Saratoga Hills Storm Drain Improvements - 44,000 44,000 closed - - - - 44,000 9142-017 Long Term Trash Plan Capture Devices - - - 30,000 - - - - 30,000 9142-018 Wildcat Creek Outfall Repair - - - 40,000 - - - - 40,000 Bridges & Retaining Walls 9152-001 4th Street Bridge Widening 1,078 - 1,078 585,922 - - - - 587,000 9152-002 Quito Road Bridges 948,804 45,880 994,684 242,425 - - - - 1,237,109 9152-003 Bridge Maintenance and Repairs - 50,000 50,000 closed - - - - 50,000 9152-004 Quito Road Bridges - ROW - 4,420 4,420 395,580 - - - - 400,000 9153-003 Damon Lane Retaining Wall - - - 190,000 - - - - 190,000 Utility Undergrounding Project 9171-001 Rule 20A Fund Project - - - - - - - - - 9171-002 Quito Road Undergrounding Project - - - 98,744 - - - - 98,744 Total Project Expenditures 16,840,902 2,840,835 19,681,736 11,747,112 250,000 250,000 250,000 250,000 29,685,182 Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 343 STREET IMPROVEMENT PROGRAM FUNDING SUMMARY Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREETS FUND State Roadway Allocations 580,665 - 580,665 - - - - - 580,665 Road/Refuse Impact Fees 2,116,613 218,645 2,335,258 351,300 - - - - 2,686,558 CIP Project Reimbursements 234,354 129,188 363,541 88,510 - - - - 452,052 Contributions/Assessments 951,402 - 951,402 - - - - - 951,402 Transfer In - General Fund 2,427,464 1,063,760 3,491,224 1,095,000 250,000 250,000 250,000 250,000 5,586,224 Transfer In - Other CIP 750,160 780,068 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 3,505,048 158,090 3,663,138 1,970,353 - - - - 5,633,491 State Grants 1,055,203 22,753 1,077,956 4,482,761 - - - - 5,560,717 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 5,865,124 677,623 6,542,748 638,869 - - - - 7,181,617 Transfer In - Other CIP 480,676 606,728 1,087,404 - - - - - 1,087,404 TOTAL REVENUES 18,745,199 3,656,854 22,402,053 9,026,794 250,000 250,000 250,000 250,000 32,428,848 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREETS FUND Salary & Benefits 533,118 133,702 666,820 - - - - - 666,820 Site Acquisition & Prep 19,356 274 19,630 - - - - - 19,630 Materials & Supplies 253,579 81,340 334,919 250,000 - - - - 584,919 Fees & Expenses 40,379 - 40,379 - - - - - 40,379 Consultant/Contract Svs 611,493 43,639 655,132 - - - - - 655,132 Project Equip & Fixtures - 769 769 - - - - - 769 Construction Expenses 4,227,237 577,319 4,804,556 2,843,891 250,000 250,000 250,000 250,000 8,648,448 Reimbursable Expenses 1,858 233 2,091 - - - - - 2,091 Transfers Out 635,427 836,692 1,472,119 - - - - - 1,472,119 GRANT FUND Salary & Benefits 47,312 - 47,312 - - - - - 47,312 Site Acquisition & Prep 104,513 2,116 106,629 - - - - - 106,629 Materials & Supplies 150,936 - 150,936 - - - - - 150,936 Fees & Expenses 19,704 40 19,744 - - - - - 19,744 Consultant/Contract Svs 857,015 2,224 859,239 - - - - - 859,239 Construction Expenses 3,342,723 157,650 3,500,373 6,878,424 - - - - 10,378,798 Reimbursable Expenses 38,248 1,796 40,045 - - - - - 40,045 Transfers Out 466,818 - 466,818 - - - - - 466,818 GAS TAX FUND Site Acquisition & Prep 11,375 - 11,375 11,375 Materials & Supplies 142,985 15,075 158,060 - - - - - 158,060 Fees & Expenses 3,507 2,136 5,643 - - - - - 5,643 Consultant/Contract Svs 122,600 131,005 253,606 - - - - - 253,606 Project Equip & Fixtures 46,425 9,716 56,141 - - - - - 56,141 Construction Expenses 4,422,293 238,378 4,660,671 1,774,796 - - - - 6,435,467 Transfers Out 742,000 606,728 1,348,728 - - - - - 1,348,728 TOTAL EXPENDITURES 16,840,902 2,840,834 19,681,736 11,747,112 250,000 250,000 250,000 250,000 32,428,847 FY Total 2015/16 Estimated Project TOTAL ALL FUND SUMMARY Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity BEGINNING BALANCE 1,904,297 2,720,318 - - - - Revenues & Transfers In 18,745,199 3,656,854 22,402,053 9,026,794 250,000 250,000 250,000 250,000 32,428,848 Expenditures & Transfers Out 16,840,902 2,840,834 19,681,736 11,747,112 250,000 250,000 250,000 250,000 32,428,848 ENDING BALANCE 1,904,297 2,720,318 2,720,318 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 344 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 345 STREET REPAIR & RESURFACING PROJECTS CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 346 STREET REPAIR & RESURFACING PROJECTS Project Name Annual Street Resurfacing Project Number 9111-001 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 is a Citywide project that 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 uses this assessment to prioritize and schedule streets and arterial roads in the worst condition for resurfacing. With a total of 135 miles of roadway in Saratoga, most street resurfacing work is performed by contractors; 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. In-house project management and oversight is funded through the General Fund under the Engineering and Street Program staff time in the Operating Budget. In Fiscal Year 2015/16 this project was closed. The remaining funds were moved into the Annual Roadway Improvements Capital Project. Operating Budget Impacts Engineering, administrative, and maintenance staff costs for oversight and implementation of the various projects are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 347 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 June 2016 Specified project work is completed ROADWAY MAINTENANCE 9111-001 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND State DOT Prop 42 (TCR)580,665 - 580,665 - - - - - 580,665 Road/Refuse Impact Fees 2,116,613 218,645 2,335,258 - - - - - 2,335,258 Project Reimbursements 70,649 - 70,649 - - - - - 70,649 Transfers In - General Fund - 64,760 64,760 - - - - - 64,760 Transfers In - Other CIP 44,073 - 44,073 - - - - - 44,073 TOTAL 2,811,999.99 283,405 3,095,405 - - - - - 3,095,405 GRANT FUNDS State - Prop 1B 466,818 - 466,818 - - - - - 466,818 TOTAL 466,818 - 466,818 - - - - - 466,818 GAS TAX FUND Gas Tax - HUTA 3,992,596 519,410 4,512,006 - - - - - 4,512,006 Gas Tax - 7360 (TCR swap)1,722,538 158,213 1,880,752 - - - - - 1,880,752 Transfers In (324,149) 33,878 (290,271) - - - - - (290,271) TOTAL 5,390,985 711,501 6,102,487 - - - - - 6,102,487 TOTAL REVENUES 8,669,803 994,906 9,664,710 - - - - - 9,664,709 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND EXP Salary & Benefits 523,349 23,720 547,069 - - - - - 547,069 Materials & Supplies 123,422 - 123,422 - - - - - 123,422 Fees & Expenses 14,619 - 14,619 - - - - - 14,619 Consultant/Contract Svs 118,035 400 118,435 - - - - - 118,435 Construction Expenses 1,794,175 - 1,794,175 - - - - - 1,794,175 Transfers Out 238,400 259,286 497,686 - - - - - 497,686 TOTAL 2,812,000 283,406 3,095,406 - - - - - 3,095,406 GRANT FUND EXP Transfers Out 466,818 - 466,818 - - - - - 466,818 TOTAL 466,818 - 466,818 - - - - - 466,818 GAS TAX EXP Materials & Supplies 135,808 15,075 150,884 - - - - - 150,884 Fees & Expenses 3,094 1,452 4,546 - - - - - 4,546 Consultant/Contract Svs 12,330 2,500 14,830 - - - - - 14,830 Project Equip & Fixtures 25,297 9,716 35,013 - - - - - 35,013 Construction Expenses 4,364,388 217,976 4,582,364 - - - - - 4,582,364 Transfers Out 742,000 572,850 1,314,850 - - - - - 1,314,850 TOTAL 5,282,918 819,569 6,102,487 - - - - - 6,102,487 TOTAL EXPENDITURES 8,561,736 1,102,975 9,664,710 - - - - - 9,664,711 Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 348 STREET REPAIR & RESURFACING PROJECTS ROADWAY MAINTENANCE – CONTINUED 9111-001 Prior FY Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND Beginning Balance - - - - - - - Revenues & T/I 2,812,000 283,405 3,095,406 - - - - - 3,095,406 Expenditures & T/O 2,812,000 283,406 3,095,406 - - - - - 3,095,406 Ending Balance - - - - - - - - - GRANT FUND Beginning Balance - - - - - - - Revenues & T/I 466,818 - 466,818 - - - - - 466,818 Expenditures & T/O 466,818 - 466,818 - - - - - 466,818 Ending Balance - - - - - - - - - GAS TAX FUND Beginning Balance 108,068 - - - - - - Revenues & T/I 5,390,985 711,501 6,102,487 - - - - - 6,102,487 Expenditures & T/O 5,282,918 819,569 6,102,487 - - - - - 6,102,487 Ending Balance 108,068 - - - - - - - - TOTAL BALANCE 108,068 - - - - - - - - Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 349 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 350 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 is a Citywide project that 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 uses this assessment to prioritize and schedule streets and arterial roads in the worst condition for resurfacing. With a total of 135 miles of roadway in Saratoga, most street resurfacing work is performed by contractors; 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 mor e costly projects in the future. Keeping the streets in good condition also reduces liability risks and staff time for minor repairs. In-house project management and oversight is funded through the General Fund under the Engineering and Street Program staff time in the Operating Budget. Operating Budget Impacts Engineering, administrative, and maintenance staff costs for oversight and implementation of the various projects are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 351 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 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Road/Refuse Impact Fees - - - 351,300 - - - - 351,300 Transfers In - General Fund - - - 550,000 - - - - 550,000 Transfers In - Other CIP - 630,648 630,648 - - - - - 630,648 TOTAL - 630,648 630,648 901,300 - - - - 1,531,948 GAS TAX FUND Gas Tax - HUTA - - - 564,176 - - - - 564,176 Gas Tax - 7360 (TCR swap)- - - 74,693 - - - - 74,693 Transfers In - 572,850 572,850 - - - - - 572,850 TOTAL - 572,850 572,850 638,869 - - - - 1,211,719 TOTAL REVENUES - 1,203,497 1,203,497 1,540,169 - - - - 2,743,666 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND EXP Materials & Supplies - - - 250,000 - - - - 250,000 Construction Expenses - - - 1,281,948 - - - - 1,281,948 TOTAL - - - 1,531,948 - - - - 1,531,948 GAS TAX EXP Construction Expenses - - - 1,211,719 - - - - 1,211,719 TOTAL - - - 1,211,719 - - - - 1,211,719 TOTAL EXPENDITURES - - - 2,743,666 - - - - 2,743,666 Prior FY Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND Beginning Balance - 630,648 - - - - - Revenues & T/I - 630,648 630,648 901,300 - - - - 1,531,948 Expenditures & T/O - - - 1,531,948 - - - - 1,531,948 Ending Balance - 630,648 630,648 - - - - - - GAS TAX FUND Beginning Balance - 572,850 - - - - - Revenues & T/I - 572,850 572,850 638,869 - - - - 1,211,719 Expenditures & T/O - - - 1,211,719 - - - - 1,211,719 Ending Balance - 572,850 572,850 - - - - - - TOTAL BALANCE - 1,203,498 1,203,497 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 352 STREET REPAIR & RESURFACING PROJECTS Project Name Residential Street Reconstruction Project Number 9113-001 Department Public Works Project Manager John Cherbone Description This project will fund the reconstruction of streets that have deteriorated beyond the scope of annual resurfacing maintenance methods. Location Residential streets identified for reconstruction include Harper Avenue, Palmtag Drive, Brookview Drive, McFarland Avenue, and Devon Avenue. Other streets will be added to the list depending on construction costs and available funding. Project Background This project represents a $300,000 commitment of City funds that will repair severely damaged streets which cannot be maintained by resurfacing methods. Over the years, curbs and gutters are damaged by impacts and large tree roots and the asphalt covered roadways deteriorate from water runoff, weather, and everyday vehicle use. If streets are not maintained in a timely manner, or if circumstances deteriorate streets rapidly, severe damage may occur. Costs to repair streets vary depending on the type of repair and the di mensions of the specific street. Street reconstruction requires removing and replacing curb s and gutters, constructing a new roadway to allow for proper drainage, and repaving the asphalt roadway. The City plans to repair one major street each year. For Fiscal Year 2016/17 this project will be closed out with any balance remaining transferred to the Annual Roadway Maintenance and Repairs project. Operating Budget Impacts Engineering, administrative, and maintenance staff costs for oversight and implemen tation of the various projects are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 353 STREET REPAIR & RESURFACING PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase N/A Begin Design Prepare Agreements March 2015 Prepare Agreement Estimated Construction Start May 2015 Begin Construction Estimated Completion Date June 2016 Project is Complete RESIDENTIAL STREET CONSTRUCTION 9113-001 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Transfers In - General Fund 300,000 300,000 600,000 - - - - - 600,000 TOTAL REVENUES 300,000 300,000 600,000 - - - - - 600,000 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Salary & Benefits 4,935 - 4,935 - - - - - 4,935 Materials & Supplies 1,503 - 1,503 - - - - - 1,503 Fees & Expenses 1,329 - 1,329 - - - - - 1,329 Consultant/Contract Svs - 4,130 4,130 - - - - - 4,130 Construction Expenses 48,621 325,218 373,839 - - - - - 373,839 Transfers Out - 214,264 214,264 - TOTAL EXPENDITURES 56,388 543,612 600,000 - - - - - 385,736 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND BEGINNING BALANCE 243,612 - - - - - - Revenues & T/I 300,000 300,000 600,000 - - - - - 600,000 Expenditures & T/O 56,388 543,612 600,000 - - - - - 385,736 ENDING BALANCE 243,612 - - - - - - - 214,264 Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 354 STREET REPAIR & RESURFACING PROJECTS Project Name Roadway Maintenance and Repairs Project Number 9113-002 Department Public Works Project Manager John Cherbone Description This project includes traffic light repair, striping and signage, curb and gutter repairs, street materials and miscellaneous roadway repairs. Location Roadways to be repaired are located throughout the City Project Background As a result of the downturn in the economy, funds normally used for Annual Street Resurfacing projects were used for traffic light repairs, striping and signage, curb & gutter repairs, stree t materials, and miscellaneous roadway repairs. With these funds being used for other street purposes, the surface areas of the City’s roads have deteriorated over the past five years. The City has utilized grant awards to address maintenance and repairs along the City’s arterial roadways with great effectiveness, however, maintenance on collectors and residential streets have backlogged. This project represents an initial $375,000 commitment to address maintenance issues on the City’s collector and residential streets. Streets that are not maintained on a regular basis may suffer severe damage resulting in costly road reconstruction. This project is funded by a transfer from the General Fund CIP Reserve. This project was closed at the end of FY 2015/16, with the remaining funds transferred to the Annual Roadway Maintenance and Repairs project. Operating Budget Impacts Engineering, administrative, and maintenance staff costs for oversight and implementation of the various projects are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 355 STREET REPAIR & RESURFACING PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase To Be Determined Prepare Agreements To Be Determined Estimated Construction Start To Be Determined Estimated Completion Date June 2016 ROADWAY MAINTENANCE & REPAIRS 9113-002 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Transfers In - General Fund - 375,000 375,000 - - - - - 375,000 TOTAL REVENUES - 375,000 375,000 - - - - - 375,000 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Salary & Benefits - 109,982 109,982 - - - - - 109,982 Materials & Supplies - 68,039 68,039 - - - - - 68,039 Consultant/Contract Svs - 13,598 13,598 - - - - - 13,598 Project Equip & Fixtures - 769 769 - - - - - 769 Construction Expenses - 180,365 180,365 - - - - - 180,365 Transfers Out - 2,247 2,247 - - - - - 2,247 TOTAL EXPENDITURES - 375,000 375,000 - - - - - 375,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND BEGINNING BALANCE - - - - - - - Revenues & T/I - 375,000 375,000 - - - - - 375,000 Expenditures & T/O - 375,000 375,000 - - - - - 375,000 ENDING BALANCE - - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 356 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 357 ROADWAY SAFETY PROJECTS CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 358 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 which 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. Projects are primarily focused on decreasing driver speed and making 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. Unfunded traffic projects on the CIP list are reviewed each year by the TSC and prioritized according to safety and proximity to schools. Locations identified for Fiscal Year 2016/17 include Arroyo De Arguello and others as they are determined by the Traffic Safety Commission and the City Traffic Engineer. Improvements include striping, signage, education and direct enforcement. Operating Budget Impacts Engineering, administrative, and maintenance staff costs for oversight and implementation of the various projects are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 359 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 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Project Reimbursement 850 - 850 - - - - - 850 Transfers In - General Fund 491,355 50,000 541,355 50,000 50,000 50,000 50,000 50,000 791,355 TOTAL REVENUES 492,205 50,000 542,205 50,000 50,000 50,000 50,000 50,000 792,205 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Materials & Supplies 63,727 - 63,727 - - - - - 63,727 Fees & Expenses 310 - 310 - - - - - 310 Consultant/Contract Svs 126,526 17,456 143,983 - - - - - 143,983 Construction Expenses 274,527 8,084 282,611 101,574 50,000 50,000 50,000 50,000 584,185 TOTAL EXPENDITURES 465,091 25,540 490,631 101,574 50,000 50,000 50,000 50,000 792,205 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND BEGINNING BALANCE 27,114 51,574 - - - - - Revenues & T/I 492,205 50,000 542,205 50,000 50,000 50,000 50,000 50,000 792,205 Expenditures & T/O 465,091 25,540 490,631 101,574 50,000 50,000 50,000 50,000 792,205 ENDING BALANCE 27,114 51,574 51,574 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 360 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 Pushbuttons at the City’s 15 signalized intersections will be replaced with “vibrotactile” buttons for the visually impaired. A vibrotactile 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 improve the intersection’s ramps, curbs, and crosswalks to comply with A DA requirements. 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. Improvements and upgrades will be performed by contractors. 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 three sections; Saratoga-Sunnyvale Road and Reid Lane, Saratoga-Sunnyvale Road and Herriman Avenue, and Saratoga -Sunnyvale Road and Blauer Drive. Sections to be completed in FY 2016/17 include Saratoga-Sunnyvale Road and Cox Avenue and Saratoga- Sunnyvale Road and Sea Gull Way. Future projects that have been funded through the One Bay Area Grant include Prospect Road and Miller Avenue, Saratoga Avenue and Cox Avenue, and Saratoga Avenue and Vineyard Lane. Operating Budget Impacts Engineering staff time for project design and oversight will be incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 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 ADA SIGNAL LIGHTS & CURB CUT-OUTS 9121-003 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Transfer In - From General Fund 188,286 - 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 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 IMPROVEMENT PLAN STREET PROGRAM 362 ROADWAY SAFETY PROJECTS Project Name Highway 9 Safety Improvements – Phase IV Project Number 9122-005 Department Public Works Project Manager Iveta Harvancik 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 the improvements to pedestrian pathways started in Phase II. The interior section of the project is expected to span a 1.5 mile stretch of 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 safety improvements to the Highway 9 corridor from Saratoga to Los Gatos. The improvements were initiated following several serious accidents on Highway 9. In Phase IV, pedestrian pathways, retaining walls, and pedestrian safety improvements will be constructed on Highway 9 from Fruitvale Avenue in Saratoga to El Camino Grande in Saratoga and from Daves Avenue to Greenwood Road in Monte Sereno. The Phase IV 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 of Phase IV. The improvement work will be contracted out. 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 Project management, engineering oversight, and grant reporting staff costs for this project are incorporated into the operating budget. Once completed, there will be a minimal increase in maintenance costs associated with the City of Saratoga’s portion of this project. 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 IMPROVEMENT PLAN STREET PROGRAM 363 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Bid Process April 2016 Council approves plans and authorizes bidding the project Contract Award June 2016 Council awards contract Estimated Construction Start July 2016 Construction project begins Estimated Completion Date December 2016 Project is completed HIGHWAY 9 SAFETY IMPROVEMENTS PHASE IV 9122-005 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Project Reimbursements - - - 11,000 - - - - 11,000 Transfers In - Other CIP 58,396 - 58,396 - - - - - 58,396 Transfers In - Gas Tax 90,000 - 90,000 - - - - - 90,000 TOTAL 148,396 - 148,396 11,000 - - - - 159,396 GRANT FUND Federal - HSIP Grant - - - 900,000 - - - - 900,000 TOTAL - - - 900,000 - - - - 900,000 TOTAL REVENUES 148,396 - 148,396 911,000 - - - - 1,059,396 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Fees & Expenses 1,000 - 1,000 - - - - - 1,000 Consultant/Contract Svs 26,378 869 27,247 - - - - - 27,247 Construction Expenses - - - 131,149 - - - - 131,149 TOTAL 27,378 869 28,247 131,149 - - - - 159,396 GRANT FUND Construction Expenses - - - 900,000 - - - - 900,000 TOTAL - - - 900,000 - - - - 900,000 TOTAL EXPENDITURES 27,378 869 28,247 1,031,149 - - - - 1,059,396 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND BEGINNING FUND BAL 121,019 120,149 - - - - - Revenues & T/I 148,396 - 148,396 11,000 - - - - 159,396 Expenditures & T/O 27,378 869 28,247 131,149 - - - - 159,396 ENDING FUND BALANCE 121,019 120,149 120,149 - - - - - - GRANT FUND BEGINNING BALANCE - - - - - - - Revenues & T/I - - - 900,000 - - - - 900,000 Expenditures & T/O - - - 900,000 - - - - 900,000 ENDING FUND BALANCE - - - - - - - - - ENDING BALANCE 121,019 120,149 - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 364 ROADWAY SAFETY PROJECTS Project Name Prospect/Saratoga Median Improvements Project Number 9122-006 Department Public Works Project Manager John Cherbone Description Improve Prospect/Saratoga Avenue (PSA) corridor through the addition of roadway medians, sidewalks, ADA ramps, bicycle loops at intersections, and 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, and along a 1.3 mile section of Saratoga Ave between Highway 85 to the City Limits to the north. Project Background This project will improve 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 cente r lane, and creating safer pedestrian crossings. Improvements will also be made to existing pedestrian, bicycle and VTA bus stop facilities, thereby enhancing pedestrian accessibility and providing 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 heavy congested intersections at 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 total of (14) bus stops, and bus pads at all the bus stops.  A new median with landscaping will be installed between Lawrence Expressway and Saratoga Ave.  A continuous Class II bike lane is provided along the entire length of the segment. This project is funded by a $4.2 million OBAG grant and City matching funds in the amount of $544,825 from the Gas Tax fund. Operating Budget Impacts Project management, engineering oversight, and grant reporting staff costs for this project are incorporated into the operating budget. 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 IMPROVEMENT PLAN STREET PROGRAM 365 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase April 2015 Prepare plans and specifications Begin Bid Process February 2016 Council authorizes bidding the project Contract Awarded April 2016 Council approved vendor Estimated Construction Start May 2016 Construction project begins Estimated Completion Date December 2016 Project is completed PROSPECT/SARATOGA MEDIAN IMPROVEMENTS 9122-006 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 Fees & Expenses - 684 684 - - - - - 684 Consultant/Contract Svs - 128,495 128,495 - - - - - 128,495 Construction Expenses - 20,402 20,402 395,244 415,646 TOTAL - 149,581 149,581 395,244 - - - - 544,825 TOTAL EXPENDITURES - 149,622 149,622 4,601,203 - - - - 4,750,825 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP GRANT FUND BEGINNING FUND BAL - (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) - - - - - - GAS TAX FUND BEGINNING BALANCE 544,825 395,244 - - - - - Revenues & T/I 544,825 - 544,825 - - - - - 544,825 Expenditures & T/O - 149,581 149,581 395,244 - - - - 544,825 ENDING FUND BALANCE 544,825 395,244 395,244 - - - - - - ENDING BALANCE 544,825 395,284 544,825 - - - - - 544,825 Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 366 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 is a Citywide project which will incorporate all City owned signals in Saratoga. Project Background The City’s intersection signal timing settings 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 Traffic Management System, at City Hall, and communication equipment in all upgraded signals. Inter-connect signals along Coordination Corridors and coordinate with the Management System. Through the use of the Traffic Management System, City engineers will be able to manage signal coordination. This project is funded by a $400,000 grant from the VTA and a $100,000 transfer from other CIP funds. Operating Budget Impacts Project management, engineering, administrative oversight and grant reporting staff costs for this project are incorporated into the operating budget. The new system will reduce call-out expenses for traffic signal repairs as signal timing changes will now be handled in-house by staff. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 367 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase April 2016 Prepare plans and specification Begin Bid Process April 2016 Council authorizes bidding the project Contract Awarded June 2016 Council approves vendor Estimated Construction Start July 2016 Construction project begins Estimated Completion Date November 2016 Project is completed CITYWIDE SIGNAL UPGRADE PROJECT PHASE II 9122-007 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended GRANT FUNDS Consultant/Contract Svs 924 41 965 - - - - - 965 Construction Expenses - - - 399,035 - - - - 399,035 TOTAL 924 41 965 399,035 - - - - 400,000 GAS TAX FUND Consultant/Contract Svs 231 10 241 - - - - - 241 Construction Expenses - - - 99,759 - - - - 99,759 TOTAL 231 10 241 99,759 - - - - 100,000 TOTAL EXPENDITURES 1,155 52 1,207 498,793 - - - - 500,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity GRANT FUNDS BEGINNING BALANCE (924) (965) - - - - - Revenues & T/I - - - 400,000 - - - - 400,000 Expenditures & T/O 924 41 965 399,035 - - - - 400,000 ENDING BALANCE (924) (965) (965) - - - - - - GAS TAX FUND BEGINNING FUND BAL - 99,769 99,759 - - - - - Revenues & T/I 100,000 - 100,000 - - - - - 100,000 Expenditures & T/O 231 10 241 99,759 - - - - 100,000 ENDING FUND BALANCE 99,769 99,759 99,759 - - - - - - ENDING FUND BALANCE 98,845 98,794 100,000 - - - - - 100,000 Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 368 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. The observed speeds would indicate that the speed limit should be posted at 35 mph. The observed speeds have increased by 2-3 miles per hour since the last speed survey was conducted in 2006. In order for traffic deputies to enforce the speed in that area, the speed limits posted would have to be increased to reflect the 85th percentile speeds. At this time, the City has not made any decisions to increase posted speed limits at various residential collector streets. City staff recommends placing a traffic circle in that location to reduce vehicle speeds. This project is funded by a transfer from the General Fund. Operating Budget Impacts Costs associated with engineering, administrative and staff time for oversight and implementation of the project are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 369 ROADWAY SAFETY PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase December 2015 Prepare plans and specification Begin Bid Process May 2016 Council authorizes bidding the project Contract Awarded June 2016 Council approves vendor Estimated Construction Start July 2016 Construction project begins Estimated Completion Date August 2016 Project is completed BEAUMONT AVENUE TRAFFIC CIRCLE 9122-009 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Construction Expenses - - - 30,000 - - - - 30,000 TOTAL EXPENDITURES - - - 30,000 - - - - 30,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND BEGINNING BALANCE - 30,000 - - - - - Revenues & T/I - 30,000 30,000 - - - - - 30,000 Expenditures & T/O - - - 30,000 - - - - 30,000 ENDING BALANCE - 30,000 30,000 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 370 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 371 STREET LANDSCAPE & BEAUTIFICATION IMPROVEMENTS CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 372 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. Each state also received money to be allocated to small cities and counties. The California Energy Commission is responsible for distributing monies to small California municipalities. 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. Operating Budget Impacts This project will reduce City expenses for electricity and staff time spent maintaining the street lights in the Village. Previously, the City spent $5,000 per year to maintain the High Pressure Sodium lights in the Village area. The LED lights have a much longer lifespan than High Pressure Sodium lights, so both regular maintenance and replacement expenses decreased. Additionally, the City will use 50% less energy to power the street lights in the Village and switch to a lower PG&E billing rate. The City may also qualify for a small project rebate from PG&E for upgrading the Village street lights. Staff time for project oversight is included in the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 373 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 July 2015 Project completed. Final administrative tasks nearly complete VILLAGE LED STREET LIGHTS 9138-001 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 378,234 1,328 379,561 37,201 - - - - 416,762 TOTAL GRANT FUND 378,234 1,328 379,561 37,201 - - - - 416,762 TOTAL REVENUES 410,734 1,328 412,061 37,201 - - - - 449,262 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Fees & Expenses 534 - 534 - - - - - 534 Consultant/Contract Svs 172 172 345 - - - - - 345 Construction Expenses 26,786 - 26,786 4,835 - - - - 31,621 TOTAL STREET FUND 27,493 172 27,665 4,835 - - - - 32,500 GRANT FUND Materials & Supplies 143,439 - 143,439 - - - - - 143,439 Fees & Expenses 1,749 - 1,749 - - - - - 1,749 Consultant/Contract Svs 6,953 1,328 8,280 - - - - - 8,280 Construction Expenses 206,483 - 206,483 37,201 - - - - 243,684 Reimbursable Expenses 19,611 - 19,611 - - - - - 19,611 TOTAL GRANT FUND 378,234 1,328 379,561 37,201 - - - - 416,763 TOTAL EXPENDITURES 405,727 1,500 407,227 42,036 - - - - 449,263 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity BEGINNING BALANCE 5,007 4,835 - - - - - Revenues & T/I 32,500 - 32,500 - - - - - 32,500 Expenditures & T/O 27,493 172 27,665 4,835 - - - - 32,500 ENDING BALANCE 5,007 4,835 4,835 - - - - - - GRANT FUND BEGINNING BALANCE - - - - - - - Revenues & T/I 378,234 1,328 379,561 37,201 - - - - 416,762 Expenditures & T/O 378,234 1,328 379,561 37,201 - - - - 416,763 ENDING BALANCE - - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 374 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 375 SIDEWALKS, CURBS & STORM DRAINS CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 376 SIDEWALKS, CURBS & STORM DRAINS Project Name Annual Sidewalk Repairs Project Number 9141-001 Department Public Works Project Manager Rick Torres Description This project provides annual funding to maintain the City’s sidewalks. Location This project is conducted at various locations throughout the City. Project Background Each year, staff conducts assessments of the City’s sidewalks to identify areas of side walk in need of repair. Priority repair is established for damaged areas or those that present a tripping hazard. Work is conducted continuously throughout the year. Most work is performed by contractors; however, staff will address smaller projects or those that require immediate attention. Approximately 35,000 square feet of sidewalk is repaired each year. There are approximately 17 linear miles of sidewalk in Saratoga. Sidewalk repairs ensure that the City’s sidewalks are maintained in good cond ition, 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. This project is funded by an annual transfer of $50,000 from the General Fund. In FY15/16 this project will be closed out and any balance remaining will be transferred into the Infrastructure Maintenance project. Operating Budget Impacts Costs associated with engineering, administrative and staff time for oversight and implementation of the project are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 377 SIDEWALKS, CURBS & STORM DRAINS 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 Awarded Ongoing Vendor selected Estimated Construction Start Ongoing Annual construction project begins Estimated Completion Date June 2016 Annual repairs completed ANNUAL SIDEWALK REPAIRS 9141-001 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Transfers In - GF 481,105 50,000 531,105 - - - - - 531,105 Transfers In - Other CIP 1,581 - 1,581 - - - - - 1,581 TOTAL REVENUES 482,686 50,000 532,686 - - - - - 532,686 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Fees & Expenses 312 - 312 - - - - - 312 Consultant/Contract Svs 675 - 675 - - - - - 675 Construction Expenses 434,997 56,152 491,149 - - - - - 491,149 Transfers Out - 40,550 40,550 - - - - - 40,550 TOTAL EXPENDITURES 435,984 96,702 532,686 - - - - - 532,686 FY Total 2015/16 Project Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND BEGINNING FUND BAL 46,702 - - - - - - Revenues & T/I 482,686 50,000 532,686 - - - - - 532,686 Expenditures & T/O 435,984 96,702 532,686 - - - - - 532,686 ENDING BALANCE 46,702 - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 378 SIDEWALKS, CURBS & STORM DRAINS Project Name Annual Storm Drain Upgrades Project Number 9141-002 Department Public Works Project Manager Rick Torres Description This project funds repairs and upgrades to the City’s storm drains. Location This project encompasses storm drains located throughout the City. Project Background The City’s storm drain system is approximately 45 miles long with 2,600 storm drains located throughout the City. Maintenance work is conducted by contractors. 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 failure. Frequently, corrugated metal pipe corrodes and is replaced with plastic or plastic lined pipes that are protected from rust and, therefore, have a longer lifespan. Annual upgrades and repairs to the City’s storm drains helps to keep them functioning properly, thereby reducing expenses associated with failed storm drains. Failed storm drains often result in floods that can cause significant damage, including sink holes in roadways, and damage to private property. Maintaining storm drains in good operating condition protects the City from additional repair and liability costs. This project is funded by an annual transfer of $50,000 from the General Fund . In FY15/16 this project will be closed out and any balance remaining will be transferred into the Infrastructure Maintenance project. Operating Budget Impacts Costs associated with engineering, administrative and staff time for oversight and implementation of the project are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 379 SIDEWALKS, CURBS & STORM DRAINS 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 Awarded Ongoing Vendor selected Estimated Construction Start Ongoing Annual construction project begins Estimated Completion Date June 2016 Annual repairs completed ANNUAL STORM DRAIN UPGRADES 9141-002 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Project Reimbursement 1,413 - 1,413 - - - - - 1,413 Transfers In - Other CIP 10,786 - 10,786 - - - - - 10,786 Transfers In - General Fund 361,313 50,000 411,313 - - - - - 411,313 TOTAL REVENUES 373,512 50,000 423,512 - - - - - 423,512 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2011/12 2012/13 2013/14 2014/15 Expended CIP STREET FUND Materials & Supplies 3,510 4,067 7,577 - - - - - 7,577 Fees & Expenses 1,977 - 1,977 - - - - - 1,977 Consultant/Contract Svs 416 - 416 - - - - - 416 Construction Expenses 358,257 50,370 408,627 - - - - - 408,627 Transfers Out - 4,915 4,915 - - - - - 4,915 TOTAL EXPENDITURES 364,160 59,352 423,512 - - - - - 423,512 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2011/12 2012/13 2013/14 2014/15 Activity CIP STREET FUND BEGINNING FUND BAL 9,352 - - - - - - Revenues & T/I 373,512 50,000 423,512 - - - - - 423,512 Expenditures & T/O 364,160 59,352 423,512 - - - - - 423,512 ENDING FUND BALANCE 9,352 - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 380 SIDEWALKS, CURBS & STORM DRAINS Project Name Curb and Gutter Maintenance and Repairs Project Number 9141-004 Department Public Works Project Manager Rick Torres Description This project funds the repair and replacement of curbs and gutters. Location This project is located citywide. Project Background This project represents an initial commitment of $50,000 to fund the repair and replacement of curbs and gutters. Specific locations that require curb and gutter improvements have been identified throughout the City. Repairs and replacement are prioritized in coordination with the Annual Street Resurfacing program. 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. This project is funded by a transfer of $50,000 from the General Fund . In FY15/16 this project will be closed out and any balance remaining will be transferred into the Infrastructure Maintenance project. Operating Budget Impacts Costs associated with engineering, administrative and staff time for oversight and implementation of the project are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 381 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Development To Be Determined Prepare plans and specifications Begin Bid Process To Be Determined Invite contractors to bid on projects Contract Awarded To Be Determined Vendor selected Estimated Construction Start To Be Determined Construction project begins Estimated Completion Date June 2016 Repairs completed CURB AND GUTTER MAINTENANCE AND REPAIRS 9141-004 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Transfers In - General Fund - 50,000 50,000 - - - - - 50,000 Transfers In - Other CIP - - - - - - - - - TOTAL REVENUES - 50,000 50,000 - - - - - 50,000 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2011/12 2012/13 2013/14 2014/15 Expended CIP STREET FUND Construction Expenses - 38,100 38,100 - - - - - 38,100 Transfers Out - 11,900 11,900 - - - - - 11,900 TOTAL EXPENDITURES - 50,000 50,000 - - - - - 50,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2011/12 2012/13 2013/14 2014/15 Activity CIP STREET FUND BEGINNING FUND BAL - - - - - - - Revenues & T/I - 50,000 50,000 - - - - - 50,000 Expenditures & T/O - 50,000 50,000 - - - - - 50,000 ENDING FUND BALANCE - - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 382 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 vehic le. 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. Operating Budget Impacts Project management, engineering oversight, and grant reporting staff costs for this project are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 383 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 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Transfers In - General Fund - - - 200,000 200,000 200,000 200,000 200,000 1,000,000 Transfers In - Other CIP - 88,517 88,517 - - - - - 88,517 TOTAL REVENUES - 88,517 88,517 200,000 200,000 200,000 200,000 200,000 1,088,517 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2011/12 2012/13 2013/14 2014/15 Expended CIP STREET FUND Construction Expenses - - - 288,517 200,000 200,000 200,000 200,000 1,088,517 Transfers Out - - - - - - - - - TOTAL EXPENDITURES - - - 288,517 200,000 200,000 200,000 200,000 1,088,517 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2011/12 2012/13 2013/14 2014/15 Activity CIP STREET FUND BEGINNING FUND BAL - 88,517 - - - - - Revenues & T/I - 88,517 88,517 200,000 200,000 200,000 200,000 200,000 1,088,517 Expenditures & T/O - - - 288,517 200,000 200,000 200,000 200,000 1,088,517 ENDING FUND BALANCE - 88,517 88,517 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 384 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 in Saratoga Village at 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 do wntown 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 explain 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 was completed during fiscal year 2009/10. Construction began in the same fiscal year. Once completed, the project will enhance the appearance of Saratoga Village and, as a result of significant improvements to pedestrian safety, may make it a more popular retail and di ning destination. Operating Budget Impacts Project management, engineering oversight, and grant reporting staff costs for this project are incorporated into the operating budget. The project will result in increased maintenance costs as the City will be responsible for caring for 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 IMPROVEMENT PLAN STREET PROGRAM 385 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 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 257,363 25,059 282,421 - - - - - 282,421 TOTAL STREET FUND 793,551 25,059 818,610 - - - - - 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 1,128,735 25,059 1,153,793 89,816 - - - - 1,243,610 Prior FY Total Year 2015/16 Estimated Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND Beginning Balance 25,059 - - - - - - Revenues & T/I 818,610 - 818,610 - - - - - 818,610 Expenditures & T/O 793,551 25,059 818,610 - - - - - 818,610 ENDING FUND BALANCE 25,059 - - - - - - - - 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 25,059 - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 386 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 Project management, engineering oversight, and grant reporting staff costs for this project are incorporated into the operating budget. The project will make significant improvements to pedestrian safety on Saratoga Avenue. Maintenance costs will increase with the extension of the sidewalk. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 387 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 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding GRANT FUND State MTC (TDA)213,844 22,753 236,597 23,945 - - - - 260,542 TOTAL REVENUES 213,844 22,753 236,597 23,945 - - - - 260,542 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended GRANT FUND Consultant/Contract Svs 6,745 855 7,600 - - - - - 7,600 Construction Expenses 197,155 4,800 201,955 50,261 - - - - 252,215 Reimbursable Expenses 727 - 727 - - - - - 727 TOTAL EXPENDITURES 204,626 5,655 210,281 50,261 - - - - 260,542 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity GRANT FUND BEGINNING BALANCE 9,218 26,316 - - - - - Revenues & T/I 213,844 22,753 236,597 23,945 - - - - 260,542 Expenditures & T/O 204,626 5,655 210,281 50,261 - - - - 260,542 ENDING BALANCE 9,218 26,316 26,316 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 388 SIDEWALKS, CURBS & STORM DRAINS Project Name Village Sidewalk & Pedestrian Enhancements Phase II – Construction 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 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 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 Coun cil in April 2009. Phase I of construction began in June, 2010. Phase II will continue improvements along Big Basin Way. The project will add more pedestrian bulb -outs, enhanced crosswalks, and other safety improvements in the Village. The improved enhancements to pedestrian safety and appearance of the Saratoga Village may make it a more popular retail and dining destination. Funding for this project comes from a Federal Congestion Mitigation and Air Quality (CMAQ) grant, and the City’s grant match. Operating Budget Impacts Project management, engineering oversight, and grant reporting staff costs for this project were incorporated into the operating budget. The project will result in increased maintenance costs as the City will be responsible for caring for additional landscaping, bulb outs, crosswalks, and other features. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 389 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 July 2015 Project is completed VILLAGE SIDEWALK & PEDESTRIAN ENHANCEMENTS PHASE II – CONSTRUCTION 9142-011 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 497,564 152,850 650,415 125,685 - - - - 776,100 TOTAL GRANT FUND 497,564 152,850 650,415 125,685 - - - - 776,100 TOTAL REVENUES 842,680 152,850 995,530 125,685 - - - - 1,121,215 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 215,522 66,857 282,379 18,424 - - - - 300,803 Transfers Out 32,500 - 32,500 - - - - - 32,500 TOTAL STREET FUND 259,835 66,857 326,691 18,424 - - - - 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 476,857 152,850 629,707 125,685 - - - - 755,392 TOTAL GRANT FUND 497,564 152,850 650,415 125,685 - - - - 776,100 TOTAL EXPENDITURES 757,399 219,707 977,106 144,109 - - - - 1,121,215 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND Beginning Balance 85,281 18,424 - - - - - Revenues & T/I 345,115 - 345,115 - - - - - 345,115 Expenditures & T/O 259,835 66,857 326,691 18,424 - - - - 345,115 ENDING FUND BALANCE 85,281 18,424 18,424 - - - - - - GRANT FUND Beginning Balance - - - - - - - Revenues & T/I 497,564 152,850 650,415 125,685 - - - - 776,100 Expenditures & T/O 497,564 152,850 650,415 125,685 - - - - 776,100 ENDING FUND BALANCE - - - - - - - - - ENDING BALANCE 85,281 18,424 18,424 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 390 SIDEWALKS, CURBS & STORM DRAINS Project Name Arroyo de Arguello Outfall Repair Project Number 9142-012 Department Public Works Project Manager Rick Torres Description This project will replace a 36-inch rusted corrugated metal storm drain outfall pipe at Calabazas Creek. Location This project is located in Calabazas Creek, approximately 350 feet downstream (north) of Wardell Road along the western bank. Project Background A site assessment by Santa Clara Valley Water District (SCVWD) staff in 2011 revealed the outfall pipe was corroded and recommended replacement to prevent failure and erosion of creek banks due to flooding. SCVWD recommends using the 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 is owned by the City of Saratoga, SCVWD offered to pay for half of the cost of repairs, as this repair would prevent the failure of the outflow pipe and subsequent stream bank erosion, which would result in an even more costly repair project. The Water District also agreed to manage the project. This project was completed in Fiscal Year 2014/15. The remaining balance was returned to the Gas Tax fund. Operating Budget Impacts As the planning, design, and construction services will be managed by SCVWD, the City’s engineering staff time will be minimal and, therefore, will not impact the City’s operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 391 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase July 2012 Prepare plans and specifications – completed Estimated Construction Start August 2014 Construction Begins Estimated Completion Date August 2015 Project is complete. ARROYO DE ARGUELLO OUTFALL REPAIR 9142-012 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding GAS TAX FUND Transfers In - Gas Tax 70,000 - 70,000 - - - - - 70,000 TOTAL GAS TAX FUND 70,000 - 70,000 - - - - - 70,000 TOTAL REVENUES 70,000 - 70,000 - - - - - 70,000 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended GAS TAX FUND Construction Expenses 36,122 - 36,122 - - - - - 36,122 Transfers Out - 33,878 33,878 - - - - - 33,878 TOTAL GAS TAX FUND 36,122 33,878 70,000 - - - - - 70,000 TOTAL EXPENDITURES 36,122 33,878 70,000 - - - - - 70,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity GAS TAX FUND Beginning Balance 33,878 - - - - - - Revenues & T/I 70,000 - 70,000 - - - - - 70,000 Expenditures & T/O 36,122 33,878 70,000 - - - - - 70,000 ENDING BALANCE 33,878 - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 392 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 new curb and gutter and replace ruined 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. This project will install two new storm drains and connect them to the City of San Jose’s existing storm water system. The City of Saratoga must obtain an encroachment permit from the City of San Jose before it can begin the project. Previous estimates to the timeline have been revised due to delays in obtaining the necessary permits from the City of San Jose. For Fiscal Year 2016/17, the scope of this project is being changed from a storm drain project to a curb and gutter project. In order to obtain an encroachment permit from the City of San Jose, the city woul d have to install a new manhole cover providing access to the new storm drain pipes. This installation would have increased the cost of the project exceeding the amount authorized. 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. This project has been funded with Gas Tax revenues. Operating Budget Impacts Costs associated with engineering, administrative and staff time for oversight and implementation of the project are incorporated into the operating budget. The installation of the two storm drains will diminish the need for continuous repair of ruined asphalt and reduce City liability risk. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 393 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Development July 2013 Prepare Plans & Specifications Obtain Permits September 2015 Apply for Encroachment Permit from City of San Jose Contract Award June 2015 Vendor selected Estimated Construction Start August 2016 Construction project begins Estimated Completion Date September 2016 Project is complete QUITO ROAD PASEO OLIVOS STORM DRAIN 9142-013 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 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 IMPROVEMENT PLAN STREET PROGRAM 394 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 is intended to 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. This project is funded through a $163,000 STP OBAG grant and gas tax revenues of $20,990. Operating Budget Impacts Costs associated with engineering, administrative and staff time for oversight and implementation of the project are incorporated into the operating budget. Staff time and material costs for minor repairs will be eliminated, and liability risks will be reduced with the infrastructure in new condition and in compliance with current standards. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 395 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase September 2015 Prepare plans and specifications Contract Award May 2016 Council awards contract Estimated Construction Start June 2016 Construction Begins Estimated Completion Date September 2016 Project is completed BIG BASIN WAY SIDEWALK REPAIRS 9142-014 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 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 IMPROVEMENT PLAN STREET PROGRAM 396 SIDEWALKS, CURBS & STORM DRAINS Project Name El Camino Grande Storm Drain Pump Project Number 9142-015 Department Public Works Project Manager John Cherbone 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. There is no storm drain system and without a proper storm drain system, flooding could occur resulting in erosion and possible street failure. A revised estimate due to an increase in scope increased the cost of the project from an estimated $150,000 to $361,000. This project is funded by a $255,000 transfer from the General Fund. A request for additional funding will be made next fiscal year. Operating Budget Impacts Costs associated with engineering, administrative and staff time for oversight and implementation of the project are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 397 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase February 2016 Prepare plans and specifications Prepare Agreements April 2016 Prepare Agreements Estimated Construction Start August 2016 Begin Construction Estimated Completion Date October 2016 Project Complete EL CAMINO GRANDE STORM DRAIN PUMP 9142-015 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Transfers In - General Fund 150,000 - 150,000 105,000 - - - - 255,000 TOTAL REVENUES 150,000 - 150,000 105,000 - - - - 255,000 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Consultant/Contract Svs - 7,013 7,013 - - - - - 7,013 Construction Expenses - - - 247,988 - - - - 247,988 TOTAL EXPENDITURES - 7,013 7,013 247,988 - - - - 255,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND BEGINNING BALANCE 150,000 142,988 - - - - - Revenues & T/I 150,000 - 150,000 105,000 - - - - 255,000 Expenditures & T/O - 7,013 7,013 247,988 - - - - 255,000 ENDING BALANCE 150,000 142,988 142,988 - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 398 SIDEWALKS, CURBS & STORM DRAINS Project Name Saratoga Hills Storm Drain Improvements Project Number 9142-016 Department Public Works Project Manager Iveta Harvancik Description This project will improve the existing storm drain system at the corner of Saratoga Hills Road and Pontiac Avenue. Location This project is located on Saratoga Hills Road near Pontiac Avenue. Project Background This area receives a large amount of storm water runoff from Saratoga Hills Road and the existing drain inlet’s capacity is inadequate to accommodate the high amount of runoff. Without a proper storm drain system, flooding could occur resulting in erosion and possible street failure. This project is funded by a $44,000 transfer from the General Fund. Operating Budget Impacts Costs associated with engineering, administrative and staff time for oversight and implementation of the project are incorporated into the operating budget. Ongoing maintenance costs are included in the West Valley Sanitation District contract. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 399 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Design Phase July 2015 Prepare plans and specifications Prepare Agreements September 2015 Prepare agreements Estimated Construction Start January 2016 Begin construction Estimated Completion Date March 2016 Project Complete SARATOGA HILLS STORM DRAIN IMPROVEMENTS 9142-016 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Transfers In - General Fund - 44,000 44,000 - - - - - 44,000 TOTAL REVENUES - 44,000 44,000 - - - - - 44,000 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Construction Expenses - 12,435 12,435 - - - - - 12,435 Transfers Out - 31,565 31,565 - - - - - 31,565 TOTAL EXPENDITURES - 44,000 44,000 - - - - - 44,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 Activity CIP STREET FUND BEGINNING BALANCE - - - - - - - Revenues & T/I - 44,000 44,000 - - - - - 44,000 Expenditures & T/O - 44,000 44,000 - - - - - 44,000 ENDING BALANCE - - - - - - - - - Budgeted for Fiscal Year Budgeted for Fiscal Year Budgeted for Fiscal Year CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 400 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 i nstances 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 Francisc o Bay Regional Water Quality Control Board staff. This project is funded by a $30,000 transfer from the General Fund. Operating Budget Impacts This project will require a minimal amount of Street Crew time to inspect full capture devices after each storm to empty out trash from the capture devices. Staff time is funded in the Operating Budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 401 SIDEWALKS, CURBS & STORM DRAINS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Project Purchase December 2015 Purchase full capture devices Estimated Completion Date December 2016 Complete installation of capture devices LONG-TERM TRASH PLAN STORM DRAIN CAPTURE DEVICES 9142-017 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Construction Expenses - - - 30,000 - - - - 30,000 TOTAL EXPENDITURES - - - 30,000 - - - - 30,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 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 IMPROVEMENT PLAN STREET PROGRAM 402 SIDEWALKS, CURBS & STORM DRAINS Project Name Wildcat Creek Outfall Repair Project Number 9142-018 Department Public Works Project Manager Iveta Harvancik 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 recent site assessment by Santa Clara Valley Water District (SCVWD) staff revealed the outfall pipe located at Gardiner Park was corroded, and subsequently recommended the outflow pipe be replaced to prevent failure and erosion of creek banks due to flooding. SCVWD recommends using the 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 is owned by the City of Saratoga, S CVWD offered to pay for half of the cost of repairs, as this repair will prevent a failure which would cause stream bank erosion, which would result in an even more costly repair project. The Water District also agreed to manage the project. The Water District will manage the repair project. The City will reimburse SCVWD for the City’s share of the project cost when completed. This project is funded with a transfer from the General Fund. Operating Budget Impacts As the planning, design, and construction services will be managed by SCVWD, the City’s engineering staff time will be minimal and therefore will not impact the City’s operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 403 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 To Be Determined Project is complete. WILDCAT CREEK OUTFALL REPAIRS 9142-018 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Construction Expenses - - - 40,000 - - - - 40,000 TOTAL EXPENDITURES - - - 40,000 - - - - 40,000 Prior FY Total Year 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 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 IMPROVEMENT PLAN STREET PROGRAM 404 CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 405 BRIDGE & RETAINING WALL PROJECTS CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 406 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. Funding for the project comes primarily from the Federal Highway Bridge Replacement and Rehabilitation (HBRR) program. HBRR monies account for 80% of total project costs. The remaining 20% is funded by the City. Operating Budget Impacts Project management costs are included in the operating budget as staff time in the Engineering and Streets programs. This project will increase safety for pedestrians walking across the 4th Street Bridge and subsequently reduce City liability exposure. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 407 BRIDGE & RETAINING WALL PROJECTS PROJECT TIMELINE PROJECT COMPONENT TIMELINE DESCRIPTION Begin Design Phase May 2013 Prepare plans and specifications Begin Bid Process February 2017 Council approves plans and authorizes bidding the project Contract Award April 2017 Council awards contract Estimated Construction Start April 2017 Construction project begins Estimated Completion Date October 2017 Project is completed FOURTH STREET BRIDGE WIDENING 9152-001 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Expended CIP STREET FUND Construction Expenses - - - 100,000 - - - - 100,000 TOTAL STREET FUND - - - 100,000 - - - - 100,000 GRANT FUND 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 2015/16 Project Activity Actuals Total 2016/17 2017/18 2018/19 2019/20 2020/21 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 IMPROVEMENT PLAN STREET PROGRAM 408 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. Operating Budget Impacts Project management, engineering oversight, and grant reporting staff costs for this project are incorporated into the operating budget. CITY OF SARATOGA CAPITAL IMPROVEMENT PLAN STREET PROGRAM 409 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 2016 Council awards contract Estimated Construction Start April 2016 Construction project begins Estimated Completion Date April 2017 Project is completed QUITO ROAD BRIDGES – PROJECT ENGINEERING 9152-002 Prior FY Total Year 2015/16 Funded Project REVENUES Funded Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 Funding CIP STREET FUND Project Reimbursements 59,130 129,188 188,318 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 214,789 144,210 358,999 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 1,015,389 144,210 1,159,599 77,510 - - - - 1,237,109 Prior FY Total Year 2015/16 Expended Project EXPENDITURES Expended Actuals To Date 2016/17 2017/18 2018/19 2019/20 2020/21 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 - - - -